Anantam International SPC Fund - 6 SP (Cayman)

  • Markets and the business cycle are both becoming more unpredictable with time, but strangely, equity or bond volatility is contained.
  • President Trump does not want a trade war. He simply wants US to manufacture more goods. US accounts for 29% of global consumption, it produces only 15% of the world’s goods. China accounts for 32% of global manufacturing but just 12% of global consumption. I believe the solution is to invite Chinese companies to manufacture in the US by hiring local US workers. This is the best thing that can happen to the global economy and I am banking and positioned for that in my portfolio.
  • I am also of the opinion that the investing landscape is changing and a US that does not want to share its GDP nor interested in policing the world will lead to global capital moving away from the US dollar. We believe the age of US exceptionalism is over.

Performance Since Inception (%)

Investment Objective

To provide with income generation and capital appreciation through investments in equities, bonds and other related securities of emerging and developed markets. This objective is to be achieved by investing in debt, quasi equity (including convertible bonds, warrants, etc.) and equity shares, both listed and unlisted in, developed, emerging and frontier markets.

Benchmark Construction

Benchmark is a blend of Vanguard total world stock Index ETF (VT) - 34%, Vanguard total bond market ETF (BND) - 33% & VanEck Inflation Allocation ETF (RAAX) – 33%. ETFs are chosen for the benchmark to reflect the diversified nature of the underlying portfolio. Peers in the space typically use a 60:40 combination of MSCI World stock Index and Bloomberg global bond Index as benchmark.

The reason for including real asset as a part of benchmark - As early sings of multi polar currency world emerges, the efficiency of supply chains will be challenged pushing the cost of procurement upwards. As developed economies struggle through the massive debt burden creating an overhang on fiscal & monetary policies; real asset owners like commodity producers, efficient commodity procurers may emerge as winners. Inclusion of real assets in the Benchmark has increased the challenge for the fund as hard commodities act as inflation hedge.