JB Global Investment Services has launched a managed fund aimed at self-managed superannuation fund (SMSF) investors, giving them access to the emerging markets of China and India.
"The JB Global Income and Equity Accelerator Chindia Investment Series 15 gives investors 50 per cent exposure to the China market through the Hang Seng Enterprises Index, which comprises the top 40 Chinese companies that are listed on the Hong Kong stock exchange, and 50 per cent exposure to the India Nifty 50 index," JB Global managing director Justin Beeton told InvestorDaily.
"It's the biggest weighting a fund has to India in Australia at the moment and we think these two economic powerhouses of China and India are going to continue to grow at a fast pace for many years to come," he said.
The new offering has a capital protection component that has a maturity term of three years.
The minimum investment amount for the fund is $10,000 and SMSF investors can borrow up to 100 per cent to purchase units in the product as long as they pay the three years of interest expense and the foreign currency hedging expense up front.
The interest charged is 5.25 per cent per year fixed for the three-year term and the foreign exchange hedge costs 1.5 per cent.
"If you look at the back testing on the indexes and the volatility targeting we do on investments, the performance has been just on 100 per cent as a rolling three-year average return for the last 10 years. So the upside potential for returns is phenomenal if the average return for the past 10 years occurs for the next three," Beeton said.
The fund was launched yesterday and investors can access it either directly or through their financial adviser.
Investors have the opportunity to purchase units in the fund until 16 December, when the offer closes.
JB Global is looking to raise up to $50 million in funds under management between now and then.
