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At close 10-Dec-2013Ord
Source: Morningstar, NAV = Net Asset Value, excluding income.
The value of investments and the income from them may go down as well as up and investors may get back less than the amount invested. The tax benefits relating to ISA investments may not be maintained. Please refer to the Key Facts documents contained in the ISA/Share Plan Brochure & Application form for general and specific investment risks attaching to the individual trusts.Read the detailed Risk Warning
Past performance is not a guide to future results.
See latest monthly factsheet below for performance history.
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Registered in England and Wales as an Investment Company Number 2902424
The objective of New India Investment Trust PLC is to achieve long-term capital appreciation by investing in companies which are incorporated in India or which derive significant revenue or profit from India, with dividend yield from the company being of secondary importance. This emphasis on long-term capital appreciation will be demonstrated by benchmarking the Company’s net asset performance against the Morgan Stanley Capital International India Index (in Sterling terms).
In this webcast Adrian gives an update on a wide range of subjects including performance, a sector breakdown, the twenty largest investments and an outlook for the Trust.
Although India battles with a deterioration in growth, high inflation and a weaker currency, it is still home to wealth of investment opportunities. Despite these challenges, we believe it is still one of the most dynamic countries in Asia. In this video we explore what is still driving the economy and where the investment opportunities lie.
India’s strong fundamentals—high savings and investment rates, rapid workforce growth and a quickly expanding middle class—will continue to boost economic growth. However, a shortage of skilled labour, infrastructure bottlenecks and the difficulties involved in moving from low-productivity agriculture to high-productivity manufacturing will constrain GDP expansion. What does this mean for India?
Find out more by reading a specialist country report by The Economist Intelligence Unit.India Country Report
(The information in this report is accurate as of April 2013)
Indian equities rose in October as the fading threat of US Federal Reserve tapering and resilient corporate earnings buoyed sentiment. Elevated food and fuel prices drove inflation to a seven-month high. The RBI hiked interest rates again, while simultaneously repealing the outstanding tightening measures imposed to support the rupee. The trade gap narrowed, partly owing to the dip in gold and oil imports. Meanwhile, industrial production and service sector activity shrank amid muted economic activity. Elsewhere, the government strengthened corporate governance and investor protection laws, while also requiring companies to spend 2% of pretax profits on corporate social responsibility.
In October, we trimmed Tata Consultancy Services following good performance. In corporate news, despite the weak economy and tight liquidity, lenders HDFC, HDFC Bank, ICICI Bank and ING Vysya, reported robust loan and profit growth. HDFC and ICICI Bank experienced some asset quality deterioration and we will watch this closely. IT firms Infosys, Tata Consultancy Services and CMC benefitted from rupee weakness and improving US demand. While increased expenses dampened Infosys’ profits, it reported decent revenue growth and new business wins. Separately, the company settled a two-year probe related to alleged US visa violations – despite a lack of evidence – removing the uncertainty of potentially prolonged litigation. Elsewhere, Hero MotoCorp boasted an improved product mix and pricing and good spare part sales, while forecasting decent cost savings. Conversely, our cement holdings continued to face pressure from rising costs and sluggish demand.
Buoyant investor sentiment has lifted India’s equity market to new highs; however, a degree of caution remains prudent. A sizeable share of current inflows remains at the mercy of the US Federal Reserve’s monetary policy plans. Meanwhile, rising costs continue to pose problems for authorities. The RBI cannot fight inflation single-handedly when supply constraints and poor infrastructure are also partly culpable. That said, the rebounding rupee and narrowing trade deficit make welcome news, while the good monsoon season should help boost rural incomes and ease some pressure on food prices. As ever, we will closely monitor our holdings and seek out other well-run, fundamentally-sound companies. Over the long-term, such a portfolio should withstand the unavoidable short-term vagaries of financial markets.
Source: Monthly Factsheet Aberdeen Asset Managers Limited