Results analysis from Kepler Trust Intelligence

RNS Number : 5290N

Ashoka India Equity Investment Tst

30 September 2021

 

Ashoka India Equity (AIE)

30/09/2021

Results analysis from Kepler Trust Intelligence

• Ashoka India Equity (AIE) has reported strong results for the year ending 30 June 2021. Excellent returns from the Indian market have been supplemented by significant alpha. AIE's NAV total return was 52.6% compared to a 45.2% total return for the MSCI India IMI Index. AIE's share price total return was 65% as the shares moved from a 5.4% discount to a 2.3% premium. Key contributors were IT names Coforge and Infosys.
   
• While India suffered a medically devastating second wave of coronavirus infections during the period, the stock market was relatively unaffected. In fact, the managers report that while Indian GDP fell by 7.5% over FY 2021, earnings growth for the NIFTY 50 benchmark of the largest Indian stocks was the highest it has been for a decade at 14%.
  
   

Kepler View

In our view this is an exciting time to be investing in India. Modi has made a number of business-friendly reforms which seem to be bearing fruit. Meanwhile companies' and countries' determination to reduce their reliance on Chinese supply chains has seen the country attract investment and take steps towards creating a technology ecosystem. We believe both factors are likely behind the growing numbers of early-stage companies reported by the manager in the annual report. AIE has the ability to invest up to 10% in unlisted equities, which could prove useful in the future.

For investors who do want to take exposure to the country, we think AIE is a premium product, and this is reflected in the trust's shares tending to trade on a premium to NAV. AIE generated strong outperformance in difficult and volatile markets, building on its excellent track record since launch. We think the results are built on strong foundations, with a disciplined, repeatable process and strong alignment of interests between managers and investors. The performance-fee only structure is helpful in aligning interests, although we note the fee earned has been high this year.

CLICK HERE TO READ THE FULL REPORT

Visit http://www.trustintelligence.co.uk/investor for more high quality independent investment trust research.

Important information

This report has been issued by Kepler Partners LLP.  The analyst who has prepared this report is aware that Kepler Partners LLP has a relationship with the company covered in this report and/or a conflict of interest which may impair the objectivity of the research.

Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise and you may get back less than you invested when you decide to sell your investments. It is strongly recommended that if you are a private investor independent financial advice should be taken before making any investment or financial decision.

Kepler Partners is not authorised to make recommendations to retail clients. This report has been issued by Kepler Partners LLP, is based on factual information only, is solely for information purposes only and any views contained in it must not be construed as investment or tax advice or a recommendation to buy, sell or take any action in relation to any investment.

The information provided on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject Kepler Partners LLP to any registration requirement within such jurisdiction or country. In particular, this website is exclusively for non-US Persons. Persons who access this information are required to inform themselves and to comply with any such restrictions.

The information contained in this website is not intended to constitute, and should not be construed as, investment advice. No representation or warranty, express or implied, is given by any person as to the accuracy or completeness of the information and no responsibility or liability is accepted for the accuracy or sufficiency of any of the information, for any errors, omissions or misstatements, negligent or otherwise. Any views and opinions, whilst given in good faith, are subject to change without notice.

This is not an official confirmation of terms and is not a recommendation, offer or solicitation to buy or sell or take any action in relation to any investment mentioned herein. Any prices or quotations contained herein are indicative only.  

Kepler Partners LLP (including its partners, employees and representatives) or a connected person may have positions in or options on the securities detailed in this report, and may buy, sell or offer to purchase or sell such securities from time to time, but will at all times be subject to restrictions imposed by the firm's internal rules. A copy of the firm's Conflict of Interest policy is available on request.

PLEASE SEE ALSO OUR TERMS AND CONDITIONS

Kepler Partners LLP is authorised and regulated by the Financial Conduct Authority (FRN 480590), registered in England and Wales at 9/10 Savile Row, London W1S 3PF with registered number OC334771.

 

END

 

 

NRAGRGDCBSXDGBG