The India Fixed Income Fund will invest in Indian government bonds and government-backed corporate bonds, both of which currently yield over 8%.
The fund has a target return of 10% per annum.
The launch represents a further expansion into the UK retail market for the firm, which was traditionally more institutionally-focused.
Known particularly for its fixed income team, ACPI Investment Managers also offers a Global Fixed Income Fund and an International Bond Fund, both of which are in the top 10% performing funds of their sectors, according to Morningstar ratings.
Madilean Coen, head of global wealth management distribution and platforms at ACPI, said many advisers would already have exposure to Indian equities in their clients’ portfolios, whether it be through emerging market funds or India-specific funds, and now for the first time could access the country’s fixed income markets through a regulated fund.
She said in 2008 Indian fixed income was the only emerging market asset class to post a positive return, but that very few people know that because there was at that time no way to access it.
Last year Indian fixed income had a poorer year as the pressures of an underperforming equity market and successive interest rate hikes from the government took their toll.
Steve O’Hanlon, head of fixed income at the firm and lead manager on the India Fixed Income Fund, said this is what makes the asset class attractive now.
"They (Indian bonds) are even attractive from a diversification perspective as developed bonds have suffered recently and may continue to do so whereas India, following numerous rate hikes, is moving in the opposite direction with potential rate cuts priced in for later in the year."
The fund will be available on the Skandia Platform from Monday 26 March and has an AMC of 1.5%.
ACPI manages $3bn in assets and also has funds available on Hargreaves Lansdown and Transact.
