True Beacon, the Bengaluru headquartered asset management company, led by Nikhil Kamath and Richard Pattle, launched a new Category III AIF – True Beacon II, a multi-asset fund that will comprise dynamic equity and a tax-free fixed income component.
The newly launched fund looks to achieve stable returns with minimal risks by rebalancing between asset classes.
Ideal for new investors who are looking to scale equity exposure, the fund will invest in India’s largest 200 companies to capture value appreciation combined with a sovereign-backed debt component to hedge against inflation\volatility.
In short, True Beacon II is a long-only alpha-oriented scheme aimed at diminishing the inflationary pressures of the economy while generating superior risk-adjusted returns.
Also, the asset management company(AMC) launched GIFT City’s first global hedge fund to cater to international investors earlier this year.
The allocation of the funds will be most likely in a 65:35 split — 65% to equity and 35% to tax-free bonds, one of the safest asset classes in India, on an average over the long term. The new fund aims to deliver an annual return of 9-10 per cent to its investors.
A Category III AIF is a fund that employs diverse or complex trading strategies and may employ leverage, including through investment in listed or unlisted derivatives. Various types of funds like hedge funds, PIPE Funds, etc., are registered as Category III AIFs.
True Beacon offers products for both Indian and global strategic investors. It provides access to Indian capital markets with high levels of transparency, coupled with zero management fees and a globally competitive tax regime.
The new age AMC manages assets worth ₹1,300 crores with over 300 high net worth individuals (HNI) and ultra-high net worth individuals (UHNI) clients from across the world. The company’s first and flagship fund, True Beacon I, outperformed the Nifty50 by over 32% in 2020.
