Aditya Birla Sun Life ABSL Global Emerging Market Equity Fund (IFSC) – A GIFT CITY Domiciled Cat II AIF

The Aditya Birla Sun Life ABSL Global Emerging Market Equity Fund (IFSC) – A GIFT CITY Domiciled Cat II AIF aims to provide long-term capital appreciation by investing in undervalued companies within the global emerging markets. It seeks to capitalize on the value investment opportunities that emerge from market anomalies and inefficiencies.

Aditya Birla Sun Life ABSL Global Emerging Market Equity Fund (IFSC) – A GIFT CITY Domiciled Cat II AIF is a closed ended fund, with a tenure of 4.5 years from the first close, which is extendable by up to 1 year. The fund encourages investors to take a leap and strengthen the portfolio by investing in attractive emerging markets, at a discount. The fund also offers opportunity to capitalise favourable exchange rate movements apart from generating returns through its investments.

The Aditya Birla Sun Life ABSL Global Emerging Market Equity Fund (IFSC) – A GIFT CITY Domiciled Cat II AIF is a Fund of Fund (FoF) Structure under the IFSCA (Fund Management) Regulations. This fund will provide a gateway of access to the value opportunities in global emerging markets, for investors. It is carefully designed to follow a passive investment strategy and will act as a feeder to a globally established and renowned value fund, The ARGA Emerging Market Equity Fund.

ARGA is a globally established institutional fund manager specialising in Value investing as well as Emerging Markets. It has experienced fund managers/research analysts in all key geographies at its helm and their proven track record of significant outperformance with their funds, across time periods since inception, serves as a testament of their expertise in the sphere of asset management. Following a flexi cap approach, their investment philosophy for ARGA Emerging Market Equity Fund, is centred around value investing.

As a seasoned value investor with an ability to identify deeply discounted opportunities through technology enhanced research and industry expertise, ARGA has been successful in taking advantage and generating outsized returns by investing in value stocks opportunities in emerging markets since inception. The fund has significantly outperformed MSCI EM Value Index by 7%+ p.a., across all time horizons (1, 3 & 5 years).

Through ABSL’s Global Emerging Markets Equity Fund, they aim to offer investors with an exposure to ARGA EM Fund which will in-turn provide access to value stocks in emerging markets.

The philosophy revolves around the concept that market overreactions create value investment opportunities. It leverages long-term focus and rigorous research to exploit these opportunities, aiming for valuation recovery as market conditions normalize.

The Aditya Birla Sun Life ABSL Global Emerging Market Equity Fund (IFSC) – A GIFT CITY Domiciled Cat II AIF (FoF) follows a passive investment approach, mainly investing in units of the ARGA Emerging Market Equity Fund, while maintaining liquidity. It employs a disciplined investment process, with a portfolio constructed from a quantitative and qualitative analysis of companies that are fundamentally undervalued. The strategy includes a bottom-up stock selection process informed by comprehensive research, including environmental, social, and governance (ESG) considerations.