Net Asset Value(s)

RNS Number : 6619Q

India Capital Growth Fund Limited

08 November 2012

 



8 November 2012

India Capital Growth Fund Limited (the "Company" or "ICGF")

Net Asset Value statement as at 31 October 2012

Net Asset Value

The Company announces its Net Asset Value per share as at 31 October 2012 was 50.16 pence.

The Net Asset Value (NAV) fell 0.3% in Sterling terms in October, whilst the BSE Midcap Index, the company's notional benchmark, fell 2.2%, resulting in relative outperformance of 1.9% for the month. In local currency terms the NAV rose 1.3% and the BSE Midcap Index fell 0.6% in October.

Year to date, the Sterling NAV has increased by 26.7%, outperforming the BSE Midcap Index by 6.1%.

Portfolio update

Positive contributors to the portfolio's performance came from J&K Bank (up 31.3%), Jyothy Labs (up 11%) and Federal Bank which rose 8.4%. Negative attribution stemmed from CESC which fell 17% following the acquisition of an unrelated business. As a consequence the portfolio exited the stock. Elsewhere Indian Bank and Dish TV fell 13% and 9% respectively.

Market and economic update

Following the upswing in September, equities in India paused for breath this month as investors digested corporate earnings and the market awaited a monetary policy announcement. Earnings have been weak as expected, with little sign of a recovery in the investment dependent sectors and an ongoing softening in consumer demand. In financials, results ranged from robust in the private sector to atrocious in the public sector, evidenced by substantial increases in bad loans. The Reserve Bank of India left interest rates unchanged, citing on going inflationary concerns. They did however cut the banking sector's cash reserve requirements and hinted they expect easier monetary policy presently.

Further policy announcements from the government were broadcast and specifically, proposals to increase foreign ownership in the insurance and pension sectors, though both these require parliamentary approval. The market will await progress here and will take its next cue from the success or failure of these measures.

Foreign equity flows continue; year to date USD18.0bn has been invested including an additional USD2.2bn this month. Domestic mutual funds remain sellers.

Portfolio analysis by sector as at 31 October 2012

Sector	No. of Companies	% of Portfolio
Financials	10	32.4%
Industrials	6	17.0%
Consumer Discretionary	4	11.6%
Health Care	3	9.3%
Consumer Staples	3	8.6%
Energy	3	7.9%
Information Technology	2	3.4%
Telecommunication Services	1	2.1%
Materials	1	2.0%
Total Equity Investment	33	94.3%
Net Cash		5.7%
Total Portfolio		100.0%

Top 10 holdings as at 31 October 2012

Holding	Sector	% of Portfolio
Federal Bank	Financials	5.5%
Jyothy Laboratories	Consumer Staples	5.0%
Max India	Industrials	4.2%
Yes Bank	Financials	3.9%
Dish TV India	Consumer Discretionary	3.9%
IDFC	Financials	3.8%
Jammu & Kashmir Bank	Financials	3.8%
Kpit Cummins Infosystems	IT	3.4%
Larsen & Toubro	Industrials	3.4%
Kajaria Ceramics	Industrials	3.2%

Portfolio analysis by market capitalisation size as at 31 October 2012

Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap <INR 15bn)	2	6.0%
Mid Cap (INR 15bn <M/Cap<INR 100bn)	19	57.1%
Large Cap (M/Cap > INR 100bn)	11	31.2%
Unlisted	1	0.0%
Total Equity Investment	33	94.3%
Net Cash		5.7%
Total Portfolio		100.0%

 

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