Net Asset Value(s)

RNS Number : 6554I

India Capital Growth Fund Limited

04 July 2013

 



4 July 2013

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

Net Asset Value statement as at 30 June 2013

Net Asset Value

The Company announces its Net Asset Value per share as at 30 June 2013 was 46.07 pence.

In June the Net Asset Value (NAV) was down 9.3% in Sterling terms, whilst the BSE Mid Cap Index was down 11.9% when converted to Sterling, delivering an outperformance against the notional benchmark of 2.6%. Against Ocean Dial's Composite Index, the portfolio delivered an outperformance of 1.1%.

Portfolio update

Positive contributors to the portfolio's performance came from KPIT Cummins (up 13.2%), IPCA Labs (up 10.2%) and Idea Cellular (up 8%), whilst negative attribution came from Jyothy Labs (down 11.8%), Federal Bank (down 9.1%) and Jain Irrigation (down 24.9%).

Market and economic update

India's equity markets corrected sharply this month with the BSE Sensex falling 1.8% and the Mid Cap Index falling 6.7%, as foreign investors were net sellers in India's debt and equity markets to the tune of USD7.5bn. This was prompted by the anticipation of a withdrawal of monetary stimulus in the United Sates. The majority of the outflow was from the debt market, and whilst equities also suffered (USD1.8bn net outflow), by comparison to other Asian markets, and relative to the positive inflows year to date, the figures could have been worse. The outflows brought about further currency weakness as the INR fell 5.7% against the USD and 6.0% against Sterling.

Onshore the news is more encouraging. The current account deficit for the fiscal quarter ended March 2013 moderated from 4.8% to 3.6% of GDP, wholesale price inflation slowed to 4.7%, and the Monsoon has started well, provoking expectation of a bumper harvest and hence some relief to food price inflation finally. In tandem with better macroeconomic news, the Government announced that subsidised domestic gas prices would be doubled and that power producers would be entitled to pass on increases in imported coal costs to the end consumer. These are major announcements for a Government so close to a general election and a signal that policy makers are committed to fixing India's fiscal woes. We anticipate further positive reform measures imminently.

Portfolio analysis by sector as at 30 June 2013

Sector	No. of Companies	% of Portfolio
Financials	10	26.1%
Industrials	6	15.3%
Consumer Discretionary	4	13.5%
Consumer Staples	3	11.3%
Health Care	3	10.3%
Information Technology	3	6.5%
Energy	2	4.7%
Telecommunication Services	1	3.6%
Materials	2	2.0%
Total Equity Investment	34	93.3%
Net Cash		6.7%
Total Portfolio		100.0%

Top 20 holdings as at 30 June 2013

Holding	Sector	% of Portfolio
Jyothy Laboratories	Consumer Staples	6.0%
Federal Bank	Financials	4.9%
KPIT Cummins Infosystems	IT	4.4%
Lupin	Health Care	4.3%
Yes Bank	Financials	4.1%
Kajaria Ceramics	Consumer Discretionary	3.8%
Idea Cellular	Telecom	3.6%
Dish TV India	Consumer Discretionary	3.5%
Emami	Consumer Staples	3.4%
Jammu & Kashmir Bank	Financials	3.4%
Indusind Bank	Financials	3.3%
IPCA Laboratories	Health Care	3.2%
Berger Paints India	Consumer Discretionary	3.2%
Max India	Industrials	3.1%
Motherson Sumi Systems	Consumer Discretionary	3.1%
Larsen & Toubro	Industrials	3.1%
Eicher Motors	Industrials	3.0%
Dewan Housing Finance Corp	Financials	2.9%
Divi's Laboratories	Health Care	2.8%
Cairn India	Energy	2.4%

Portfolio analysis by market capitalisation size as at 30 June 2013

Market capitalisation size	No. of Companies	% of Portfolio
Small Cap (M/Cap <INR15bn)	3	4.0%
Mid Cap (INR15bn <M/Cap<INR100bn)	20	57.3%
Large Cap (M/Cap > INR100bn)	10	32.0%
Unlisted	1	0.0%
Total Equity Investment	34	93.3%
Net Cash		6.7%
Total Portfolio		100.0%

 

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