NOVEMBERASIA BUSINESS OUTLOOK8INDIA'S FOREX RESERVES NOW TOTALLING $586 BILLIONINFINITI CAPITAL LAUNCHES MULTI-MANAGEMENT INVESTMENT FUNDNEWSROOMThe Reserve Bank of India (RBI) reported on Nov 3 that India's foreign exchange reserves increased by $2.6 billion to $586.5 billion for the week ending October 27. Previously, forex reserves fell by $2.36 billion for the week ending October 20, bringing the total to $583.5 billion. According to the RBI's Weekly Statistical Supplement, foreign currency assets (FCAs) increased by $2.3 billion to $517.5 billion.The FCAs are expressed in dollars and include the effect of non-US currency appreciation or depreciation in foreign exchange reserves such as the euro, pound, and yen. Gold reserves rose $ 0.49 billion to $45.9 billion, while SDRs fell $15 million to $17.91 billion. The IMF's reserve position has shrunk by by $0.208 billion to $4.77 billion.It should be noted that the country's forex reserves reached an all-time high of $ 645 billion in October 2021. The reserves have been declining as the central bank uses the funds to defend the rupee against pressures brought on primarily by global events.Typically, the RBI will intervene in the market from time to time through liquidity management, including the sale of dollars, in order to prevent a sharp depreciation of the rupee. The RBI closely monitors foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without regard for any predetermined target level or band. Starting in November, Infini Capital Management, a Hong Kong-based firm, initiated the launch of a novel investment fund that includes multiple managers. The multi-manager battleground is heating up with the rise of hedge fund competition, which is on the rise. Next year, the manager from Hong Kong has plans to extend its presence into Abu Dhabi.The trading of the new flagship fund, Infini Global Master Fund, commenced with self-seeded capital originating from its previous proprietary fund. According to two knowledgeable sources, Infini has set a goal to expand its fund, which accepts outside investors, to $1 billion by 2024.The launch is happening at a time when investors are showing increased interest in multi-manager platforms. These platforms have the ability to invest in various asset classes and aim to achieve profits consistently, irrespective of economic cycles. In recent years, multi-manager funds have demonstrated superior performance compared to the broader industry. According to one of the sources, the firm's previous Infini Master Fund achieved a 20 percent gain from January to July.Infini, founded by Tony Chin, a former Morgan Stanley banker, has been on a hiring spree this year. The fund now has about eight to 10 portfolio managers and is hiring more staff, according to one of the sources.On the non-trading side, the firm recently filled a raft of senior roles from bigger rivals. Jennifer Wong joined Infini in September from Pinpoint as head of IR, Stephanie Chen joined as chief risk officer from Dymon Asia, while it hired Connie Phillips as chief financial officer from BFAM and Cora Ang as general counsel and chief compliance officer from Hillhouse.
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