Here's How Investors Can Capitalize
TORONTO, Aug. 8, 2016 /CNW/ - Talk about a game changer. On August 3rd 2016, India's Upper House of Parliament approved a long-awaited Goods and Services Tax (GST) reform that will create a unified tax system across the world's largest democracy. The new law is expected to help boost the world's fastest-growing major economy by as much as 2 percent, according to Finance Minister Arun Jaitley.1
"This is big news. The GST is rightly being labeled as a 'game changer' for India" notes Bhim D. Asdhir, President and Chief Executive Officer of Excel Funds Management Inc. "It is also a huge win for Prime Minister Narendra Modi and his administration, as it shows that the government is capable of implementing historic changes that will enhance growth and development in India even further."
Excel Funds has a longstanding track record of investing in India, dating back to 1998 with the launch of the Excel India Fund, which is currently the largest and longest-running India-focused mutual fund in Canada. The Excel India Fund is also winner of the 2015 Lipper® Fund Award for Best Fund over 3 years, in the Geographic Equity category. Excel Funds expanded its lineup of India-focused investment strategies earlier this year with the launch of the Excel India Balanced Fund and Excel New India Leaders Fund. The two new funds are actively managed by Aditya Birla Sun Life Asset Management Company Pte. Limited, a wholly owned subsidiary of Birla Sun Life Asset Management Company Limited, which is one of the leading fund managers in India, with approximately US$20 billion in assets under management, as of March 31, 2016.2
"At Excel Funds, we continue to find innovative ways to provide investors with direct access to the Indian markets," Mr. Asdhir notes. "Our comprehensive offering of India-focused mutual funds caters to a broad range of profiles, granting access to equities as well as fixed-income securities. Our goal is to help Canadian investors capitalize on high growth opportunities in India and the emerging markets, which are hard to come by given the low growth state of global markets."
The impact of the GST reform is largely expected to support domestic consumption, a major component of India's GDP. A new tax rate, expected to be around 18 percent, will lower the cost of manufactured products, naturally leading to more Indians purchasing goods ranging from household appliances to motor vehicles. E-commerce should also receive a lift, as state restrictions and levies are removed. Information technology and consumer discretionary are among the top sector allocations of the Excel India Fund, accounting for 11.9 and 11.5 percent of the total portfolio, respectively.3
Additionally, GST will widen the tax base and improve fiscal management for the government. With a greater revenue stream, the current administration can continue to invest heavily in infrastructure, which has also been another key sector linked to India's growth. "With the new bill we expect a fiscal boost, improvement in logistics for local companies leading to cost savings, and also increased competitiveness in India's manufacturing sector on the global front," says Atul Penkar, Head of Offshore Equities, Birla Sun Life Asset Management Company Limited. Mr. Penkar is also the portfolio manager of all three India-focused strategies that are managed by Excel Funds. "The implementation of the GST law will have broad based benefits for the economy over the medium and long-term."
To learn more about investing in India with Excel Funds click here.
About Excel Funds Management Inc.
Founded in 1998, Excel Funds Management Inc. offers an award-winning suite of emerging market strategies, catering to a broad range of investor profiles and objectives. Leveraging a global network of over 500 portfolio managers and 200 research analysts, our team has firsthand knowledge of the markets in which they invest – providing us with a true competitive advantage over our peers.
Our investment philosophy is grounded in disciplined fundamental research and continuously seeks out new growth opportunities in the emerging markets and beyond. Our on-the-ground sub-advisers and proprietary asset allocation models contribute to the firm being recognized as "The Authority in Emerging Markets".
1 Bloomberg Business, What's The Big Deal About India's Goods and Services Tax? Q&A, August 2, 2016.
2 Birla Sun Life Asset Management Company Limited.
3 Excel Investment Counsel Inc. data, as at June 30, 2016.
The Excel India Fund, Series A was awarded a 2015 Lipper Fund Award in the Geographic Equity category for the 3-year period ending July 31, 2015 out of a total of 12 funds. The Lipper Fund Awards, granted annually, are part of the Thomson Reuters Awards for Excellence awarded by Lipper, Inc. and highlight funds that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The Lipper Fund Awards are based on the Lipper Ratings for Consistent Return, which is a risk-adjusted performance measure calculated over 36, 60 and 120 month periods. The highest 20% of funds in each category are named Lipper Leaders for Consistent Return and receive a score of 5, the next 20% receive a score of 4, the middle 20% are scored 3, the next 20% are scored 2 and the lowest 20% are scored 1. The highest Lipper Leader for Consistent Return in each category wins the Lipper Fund Award. Lipper Leader ratings change monthly. For more information, see www.lipperweb.com. Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Lipper.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the simplified prospectus before investing.
All statements in this press release, other than statements of historical fact, and including statements regarding the future economic effects of events, are "forward-looking statements". These forward-looking statements reflect the current beliefs of Excel Funds Management Inc. and Birla Sun Life Asset Management Company Limited and are based on information available as of the date of this press release. Actual results may differ materially as they are subject to a number of significant risks and uncertainties. Excel Funds Management Inc. and Birla Sun Life Asset Management Company Limited have no obligation to update or revise the forward-looking statements in this press release.
SOURCE Excel Funds Management Inc.
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