Results analysis from Kepler Trust Intelligence

RNS Number : 1667C

Ashoka India Equity Investment Tst

07 October 2022

 

Ashoka India Equity (AIE)

07/10/2022

Results analysis from Kepler Trust Intelligence

Ashoka India Equity (AIE) has reported its annual results for the year ending 30/06/2022. The trust delivered net asset value (NAV) and share price total returns of 9.6% and 7.7% respectively. Over the same period AIE's benchmark, the MSCI India IMI Index, delivered returns of 7.2% on a total return basis in sterling terms, meaning the trust outperformed by 2.4% on a NAV basis.

These positive results build upon an already impressive track record. Since its inception in July 2018 to the end of the reporting period, AIE delivered NAV and share price total returns of 75.4% and 73.4% respectively, compared to benchmark total returns of 33.9%. Performance has continued to be strong since, with AIE's NAV increasing by 20.6% and its share price by 23.0% from the end of June to 20/09/2022.

Chairman of the board Andrew Watkins said: "The innovative investment options presenting themselves to the company's management teams are only likely to increase in the coming years, thus further enhancing the possibility of capital growth for shareholders over the longer term. It is gratifying from my perspective to be able to reassure shareholders that strong corporate governance and research both continue to play prominent roles when selecting investments for the company's portfolio. We all hope that 2023 will see an easing of hostilities in Europe, restored supply lines, reduced inflationary pressures and lower interest rates. Not much to hope for, surely? If achieved, the signs are already emerging that India's economy will gather strength as the world returns to growth.

Kepler View

Ashoka India Equity (AIE) is one of a small number of trusts on the market today providing investors with dedicated exposure to Indian companies. The management team focus on stock selection, using a proprietary valuation system and a heavy emphasis placed on corporate governance, rather than using top-down, macroeconomic analysis to pick stocks.

AIE also has a unique fee structure, with the managers receiving no annual management fee. Instead, they are compensated by a performance fee, which is paid if the trust outperforms on a NAV basis over three-year periods. Analysts are compensated according to how well their stock picks perform and fees are paid in shares, all of which we believe strongly aligns the interests of investors and the managers.

Performance since the trust's inception in July 2018 has been strong. From inception in July 2018 to 20/09/2022, AIE shares have delivered total returns of 113.5% and NAV total returns of 116.9%. Over the same period, the MSCI India IMI Index, the trust's benchmark index, has delivered total returns of just 75.1%. We think last year's outperformance was even more impressive given the extremely volatile macroeconomic environment. 

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