Aberdeen New India Investment Trust Plc
Rated Fund 2017-20. Capitalises on structural growth drivers
The investment trust structure can be especially useful for specialist, more volatile investments, as managers can take a longer-term approach. It can be particularly beneficial for gaining exposure to India, which is expected to become the world’s third-largest economy by 2030, behind China and the US.
Aberdeen New India had a change of manager in 2019: Adrian Lim was replaced with Kirsty Fong and James Thom, both based in Singapore. However, funds that originate from the former Aberdeen Asset Management stable often take a team-based approach and this fund, now under the Aberdeen Standard Investments banner, is no exception, so the change does not concern us.
The managers invest in around 40 companies across a wide range of sectors. They favour companies with deep business moats, clear earnings levers and prudent capital management. They believe the Indian stockmarket will remain volatile over the short term amid global uncertainty, slowing domestic growth, and concerns over the liquidity and solvency of the non-bank finance sector. However, over the longer term, India has many structural positives: a young, growing middle class and a sizeable domestic market that is home to some of the best-in-class companies in the region.
In mid-2018 the board approved a gearing facility that allowed the trust to take advantage of cheap valuations in India in the second-half sell-off. It remains modestly geared at 4%, which is in line with the fund’s cautious approach, and the managers are unlikely to gear up further unless significant value emerges – in the shape of another market sell-off, for example.
Shares in the trust can be picked up at a discount to net asset value that has ranged from 7%-16.5% over the past three years.
Narrative and ratings content all as of January 2020.See all Money Observer rated funds
|Housing Development Finance Corp Ltd||9.47 %|
|Tata Consultancy Services Ltd||8.00 %|
|Infosys Ltd||7.01 %|
|Hindustan Unilever Ltd||6.49 %|
|Kotak Mahindra Bank Ltd||5.10 %|
|ITC Ltd||4.66 %|
|Nestle India Ltd||4.35 %|
|UltraTech Cement Ltd||4.13 %|
|SBI Life Insurance Co Ltd||3.99 %|
|Asian Paints Ltd||3.69 %|
|Asia - Emerging||100.00 %|
|Financial Services||24.63 %|
|Consumer Defensive||20.08 %|
|Basic materials||10.18 %|
Pruksa Iamthongthong is an Investment Director on the Asian Equities Team at Aberdeen Standard Investments. Pruksa joined Aberdeen Asset Management in 2007. Pruksa graduated with a BA in Business Administration from Chulalongkorn University, Thailand and is a CFA® charterholder.
Adrian Lim is a Senior Investment Manager on the Asian Equities Team. Adrian originally joined Aberdeen in 2001 as a Manager on the Private Equity Team, on the acquisition of Murray Johnstone, but transferred to his current post soon afterwards. Previously, Adrian worked for Arthur Andersen LLP as an Associate Director advising clients on mergers & acquisitions in the region. Adrian holds a BAcc from Nanyang Technological University, Singapore and is a CFA® charterholder. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
Flavia Cheong, CFA, is the Head of Asia Pacific Equities on the Asian Equities Team of Aberdeen Standard investments, where, as well as sharing responsibility for company research, she oversees regional portfolio construction. Before joining Legacy Aberdeen in 1996, she was an economist with the Investment Company of the People’s Republic of China, and earlier with the Development Bank of Singapore. Flavia graduated with a BA in Economics and an MA (Hons) in Economics from the University of Auckland. She is a CFA charterholder.
Kristy Fong is an Investment Director on the Asian Equities Team at Aberdeen Standard Investments. Kristy joined Aberdeen Asset Management in 2004 from UOB KayHian Pte Ltd where she was an Analyst. Kristy graduated with a BA (Hons) in Accountancy from Nanyang Technological University, Singapore and is a CFA® charterholder.
James Thom is an Investment Director on the Asian Equities Team at Aberdeen Standard Investments. James joined Aberdeen Asset Management in 2010 from Actis, an Emerging Markets Private Equity firm, based in Singapore and covering Southeast Asia. James graduated with an MBA from INSEAD, an MA from Johns Hopkins University and a BSc from University College London.
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