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 26-Jan-2012
Ord| Price | 218.50p |
| NAV | 241.49p |
| Prem/-Disc | -9.52% |
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).
Manager's Monthly Report
January 2012
Market Review
Indian equities fell in December, ending the year sharply lower, amid persistent worries over faltering growth, the weak rupee and Europe’s debt crisis. Also hurting sentiment was the government’s decision to suspend the liberalisation of the local supermarket sector following fierce public backlash.
The central bank held interest rates steady as inflation appeared to be moderating and GDP growth continued to slacken.
Industrial output declined in October for the first time in more than two years. On a positive note, the latest purchasing managers’ index suggested that manufacturing activity would improve on the back of better employment and an increase in new orders. The cabinet approved a food subsidy bill that would give the poor access to cheap grains but could further strain the fiscal deficit. Meanwhile, plans to set up an independent anti-corruption agency stalled due to disagreement among lawmakers.
In other news, foreign individuals will be allowed to invest directly in shares of India-listed companies, subject to existing limits for selected sectors.
Portfolio review
There were no major portfolio changes in December.
In corporate news, MphasiS reported lower fourth-quarter and full-year earnings as the decline in Hewlett Packard-channelled revenue overshadowed its direct sales.
Outlook
India faces a number of domestic headwinds in 2012. Economic growth could be restrained further if price pressures remain elevated amid supply-side constraints. Continued rupee weakness could inflate the country’s rising import bill and hamper companies’ profit growth. Other major concerns include the slow pace of reform, particularly in retail and infrastructure, coupled with the dismal progress in fighting corruption.
With these risks in mind, attracting new capital flows will likely be the main focus for policymakers in 2012. Still, we will not be surprised if the domestic market corrected further. While stocks were down almost 40% in 2011, they had appreciated by more than 100% over the previous two years. And although foreign institutional investors withdrew US$357 million from India last year, they had invested US$29 billion in 2010. Nevertheless, we are hopeful that the fund, which holds some of India’s most prudently run and financially strong companies, will outperform again given its defensive qualities.
Source: Monthly Factsheet Aberdeen Asset Managers Limited