In continuation to our note last September, we are excited to share some more insights on this fund. This update was shared to our clients much earlier. The Fund was launched in Feb 2010. Since Launch it has returned an absolute 70% compared with MSCI AC World index 65%. The fund has beaten many of its peers over this period. For the same period, Sensex has delivered 19%. See the chart.graf

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The fund is a global offering of equities aimed at producing ‘inflation resistant capital growth’, a truly capital idea for long periods.

The fund’s stocks have sufficient pricing power to keep the dragon(inflation) at bay, and pricing power is a key ingredient in this global mixture of themed “real assets”.

Exxon Mobil is the top holding in this fund. The Shale gas deposits in US will help this holding. Another holding in this fund is American Tower, a provider of antennas to carry mobile data. We all know that this sector is seeing explosive growth. Infrastructure is a structural theme in this fund and we see stocks like Vienna Airport having a monopolistic pricing power. The fund has other interesting stocks like Cummins to play the agri cycle and Wijaya karya, the Indonesian infra giant.

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