Interim Management Statement

RNS Number : 4583M

New India Investment Trust PLC

29 January 2009

 

New India Investment Trust PLC

Interim Management Statement - 3 months to 31 December 2008

To the shareholders of New India Investment Trust PLC

This interim management statement has been produced solely to provide additional information to shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules. It should not be relied upon by any other party or for any other purpose.

This interim management statement relates to the period from 1 October 2008 to 31 December 2008, and contains information that covers this period, and up to the date of publication of this interim management statement, unless otherwise specified.

Investment objective

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).

Benchmark

MSCI India Index. Given that the managers do not adopt a benchmark approach, performance can vary widely from the benchmark.

Material events 

On 9 December 2008, the trust sent its interim report and accounts for the six months to 30 September 2008 to shareholders.  

Since 31 December 2008, the trust's entire holding in Satyam has been sold at a price of INR 42.22 per share (the holding was purchased at an average price of INR 373.14 per share). This was as a result of the confession, on 7 January 2009, by the Chairman of Satyam to a long-term accounting fraud, and his subsequent arrest. The fall in the share price of Satyam Computer Services following this news had a negative impact on the NAV (on a fully diluted basis) which,  between close of business on 6 January and 7 January 2009 respectively, fell 9.43% from 136.4p to 124.65p. Over the same period, in local currency terms, the MSCI India Index fell by 7.54%, and by 9.25% in Sterling terms. As at 27 January 2009, the nearest practicable date to the date of this interim management statement, the NAV (fully diluted) stood at 129.27p.

The Board is not aware of any significant events or transactions which have occurred between 31 December 2008 and the date of publication of this interim management statement, other than those described above, which would have a material impact on the financial position of the trust.

For latest NAV and share price information please refer to the trust's website, www.newindia-trust.co.uk.

Fifteen largest equity holdings at 31 December 2008

	%
HDFC Bank	9.6
Infosys Technologies	8.9
Satyam Computer	6.3
Hero Honda	5.5
ICICI Bank	5.0
GlaxoSmithKline	4.9
Hindustan Unilever	4.5
GAIL	4.3
Bharti Airtel	4.1
Grasim Industries	4.0
ITC	4.0
Tata Consultancy Services	4.0
Sun Pharmaceutical	3.9
ABB India	3.6
Godrej Consumer Products	3.6
	__________
Total	76.2
	__________
Total number of investments	26

Sector allocation as at 31 December 2008 (%)

Sector	Trust	Benchmark
Information Technology	20.1	13.9
Financials	17.7	24.1
Health care	14.6	4.1
Consumer Staples	12.1	8.1
Utilities	9.2	6.9
Consumer Discretionary	8.8	3.3
Materials	6.4	7.1
Industrials	6.3	8.9
Telecommunication Services	4.1	3.1
Energy	-	20.6
Cash	0.7	-
	__________	__________
Total	100.0	100.0
	__________	__________

General description of Company's financial position and performance as at 31 December 2008

	£m
Gross Assets	66.9
Debt	nil
Gearing	nil
Capital structure
Ordinary Shares	46,309,458
Warrants	12,760,682

Cumulative performance (%)

	as at  31/12/2008	1 month	3 months	6 months	YTD	1 year	3 years	Since portfolio change 31/01/05 cumulative
Share Price	110.5p	6.0	(11.2)	(10.9)	(33.2)	(33.2)	(10.7)	17.1
Diluted NAVA	134.84p	8.9	(5.2)	(5.4)	(31.7)	(31.7)	2.7	46.4
Undiluted NAVA	144.4p	10.7	(5.0)	(6.4)	(35.3)	(35.3)	3.2	55.4
Warrant 2010 Price	27.0p	0.0	(20.6)	(39.3)	(62.1)	(62.1)	(42.6)	(3.6)
MSCI India		17.1	(13.1)	(16.5)	(51.0)	(51.0)	10.4	69.8

Discrete performance (%)

Year ending:	31/12/2008	31/12/2007	31/12/2006	31/12/2005	Since portfolio change 31/01/05 annualised
Share Price	(33.2)	21.5	10.1	37.3	4.1
Diluted NAVA	(31.7)	35.5	11.0	43.3	10.2
Undiluted NAVA	(35.3)	41.5	12.8	53.8	11.9
Warrant 2010 Price	(62.1)	14.5	32.4	147.4	(0.9)
MSCI India	(51.0)	70.2	32.5	53.9	14.5

Total Return; NAV to NAV, Net Income Reinvested, GBP. Share price total return is on a mid-to-mid basis. Dividend calculations are to reinvest as at the ex-dividend date. NAV returns based on NAVs with debt valued at par.

A Excluding current year revenue.

Source: Aberdeen Asset Managers Limited, Factset, Financial Times and Fundamental Data

Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise. Investors may not get back the amount they originally invested.

For New India Investment Trust PLC

Aberdeen Asset Management PLC, Secretary

29 January 2009

 

END

 

 

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