Net Asset Value(s)

RNS Number : 3544N

India Capital Growth Fund Limited

05 September 2013

 



5 September 2013

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

Net Asset Value statement as at 31 August 2013

Net Asset Value

The Company announces its Net Asset Value per share as at 31 August 2013 was 35.77 pence.

In August the Net Asset Value (NAV) was down 15.8%, whilst the BSE Mid Cap Index fell 14.0%, delivering an underperformance against the notional benchmark of 1.8%, all in Sterling terms. Against Ocean Dial's Composite Index, the portfolio delivered an underperformance of 2.1%.

Portfolio update

Positive contributors to the portfolio's performance came from Manapuram Finance (up 45.9%), NIIT Tech (up 17.4%) and Cairn India (up 8.9%). Negative attribution came from Federal Bank (down 26.7%), Yes Bank (down 24.9%) and MCX India (down 41.4%).

Market and economic update

Indian equity markets remained volatile in August, with the Sensex down 3.8% and the Midcap Index down 4.4%, as FII's continued to be net sellers worth USD0.9bn in equities and USD1.6bn in debt. The real pain was taken via the currency which fell 11.2% against Sterling for the month, driven by a rush to cover import costs onshore and speculators betting offshore on future economic uncertainty. The Reserve Bank stepped in to support the INR by facilitating the forward purchase of USD by India's three largest public-sector oil companies. With oil being India's largest import, the move is expected to reduce USD demand in the spot market. Furthermore, India's trade balance has also been contracting in June and July as the growth in gold and silver imports decelerated and exports accelerated. We expect this to underpin the currency at these levels and are confident the policy makers are working on a structure to raise additional long term capital to offset any further foreign selling of existing positions.

Weak economic data continued as India's Q1FY14 GDP growth came in at 4.4% lower than consensus expectations, mainly due to slowdown in industrial growth to 0.2% against 1.8% last year. WPI inflation shot up to 5.8% in July compared to 4.9% in June led mainly by higher food inflation.

The Government of India passed both the Food Security and the Land acquisition bill in the current parliament session. Both are viewed by the market as populist and fiscally detrimental. 

Portfolio analysis by sector as at 31 August 2013

Sector	No. of Companies	% of Portfolio
Financials	10	21.8%
Industrials	6	14.0%
Consumer Discretionary	4	13.4%
Consumer Staples	3	11.4%
Healthcare	3	11.0%
IT	3	8.6%
Energy	2	5.6%
Telecommunications	1	4.2%
Materials	2	2.6%
Total Equity Investment	34	92.6%
Net Cash		7.4%
Total Portfolio		100.0%

Top 20 holdings as at 31 August 2013

Holding	Sector	% of Portfolio
Jyothy Laboratories	Consumer Staples	5.8%
KPIT Cummins Infosystems	IT	5.4%
Lupin	Healthcare	4.5%
Idea Cellular	Telecommunications	4.2%
Kajaria Ceramics	Consumer Discretionary	4.1%
Jammu & Kashmir Bank	Financials	3.5%
Federal Bank	Financials	3.5%
Motherson Sumi Systems	Consumer Discretionary	3.5%
IPCA Laboratories	Healthcare	3.4%
Emami	Consumer Staples	3.3%
Eicher Motors	Industrials	3.3%
NIIT Technologies	IT	3.2%
Berger Paints India	Consumer Discretionary	3.2%
Divi's Laboratories	Healthcare	3.2%
Cairn India	Energy	3.0%
Max India	Industrials	2.9%
Indusind Bank	Financials	2.9%
Yes Bank	Financials	2.8%
Dish TV India	Consumer Discretionary	2.7%
Larsen & Toubro	Industrials	2.7%

Portfolio analysis by market capitalisation size as at 31 August 2013

Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap <INR15bn)	2	2.4%
Mid Cap (INR15bn <M/Cap<INR100bn)	23	64.0%
Large Cap (M/Cap > INR100bn)	8	26.2%
Unlisted	1	0.0%
Total Equity Investment	34	92.6%
Net Cash		7.4%
Total Portfolio		100.0%

 

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