Risk Warning
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 WarningPast Performance
Past performance is no guide to future performance.
See latest monthly factsheet below for performance history.
Daily Data
At close 17-May-2012
Ord| Price | 186.00p |
| NAV | 216.44p |
| Prem/-Disc | -14.06% |
Source: Morningstar
NAV = Net Asset Value
Literature
Trust Details
New India Investment Trust PLC
Registered Office:
Bow Bells House,
1 Bread Street,
London
EC4M 9HH
Registered in England and Wales as an Investment Company Number 2902424
New India Investment Trust PLC
Objective
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).
Investing in leading global companies within India
April 2012
Manager's Monthly Report
April 2012
Market Review
Indian equities fell in March amid resurgent concerns over the nation’s fiscal health and faltering global growth.
Exports decelerated, however. In Budget news, the government maintained its full-year GDP forecast at 7.6% and aimed to pare the fiscal deficit to 5.1% of GDP. Inflation crept up in February, led by food prices. The central bank kept interest rates unchanged, but cut lenders’ cash reserve requirement to boost liquidity.
Uncertainty was heightened by the proposal to remove tax exemptions on the capital gains of foreign institutional investors using Mauritius to access the domestic equity market. Costs of investments may rise from this plan, which was put forth to extend the powers of the tax department. We are monitoring the development closely. Our long-term approach should mitigate any impact from the recommended change, which targets short-term investors.
Portfolio review
Among our holdings, auto parts maker Bosch delivered good quarterly sales and net earnings growth, aided by its strong brands, extensive distribution network and effective cost management. Tata Power will partner South African miner Exxaro to explore electricity generating opportunities as part of its strategy to grow its renewable energy business overseas.
There were no major portfolio changes in March.
Outlook
Various headwinds remain. The large deficit and lack of crucial reform in the latest Budget could continue to pose challenges for India’s fiscal prospects. Additionally, policy paralysis might worsen given the ruling Congress party’s weakened position after its poor showing at recent state elections.
Meanwhile, Middle East tensions could push up the oil price, fanning inflationary worries yet again. At the corporate level, high interest rates and the weak rupee could weigh on companies with excessive debt. Nevertheless, we continue to be drawn to India’s long-term potential, which is buttressed by a favourable demographic profile, sound banking system and great growth prospects. We remain selective investors in well-run companies that are innovative, financially robust and shareholder friendly.
Source: Monthly Factsheet Aberdeen Asset Managers Limited