Aberdeen New India Investment Trust Plc

Asia Equities

Rated Fund 2017-19. Capitalises on political reform

The investment trust structure can be especially useful for more volatile specialist investments, as managers can take a longer-term approach. This could 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 is managed by Adrian Lim of Aberdeen Standard Investments’ Asian equity team, which has an excellent track record in this part of the world. Lim invests in around 50 companies across a wide range of sectors. He uses a bottom-up investment process, seeking and holding quality companies with good fundamentals, strong balance sheets and the earnings power to pay increasing dividends to ensure the trust can outperform over the long term. He favours firms that stand to benefit from longterm growth in consumer consumption trends, as well as those that play into the strength of India’s offerings in information technology services and healthcare.

Amid significant headwinds, he says companies with pricing power and robust balance sheets will benefit. He adds: “Indian equities may face difficult times ahead, with the outlook continuing to remain murky as geopolitical and trade tensions weigh on sentiment. Amid the uncertainty, we see opportunity.”

He points to India’s large domestic economy being in a good position to withstand external shocks, with key local macroeconomic problems abating, thanks to the recent dip in oil prices and a pause in interest rate hikes.

Shares in the trust can typically be picked up at a double-digit discount to net asset value, which approached almost 20% during 2018 – potentially offering a good entry point for investors.

Narrative and ratings content all as of January 2019.

See all Money Observer rated funds
Name
Aberdeen New India Investment Trust Plc
Manager
Aberdeen Standard Investments
Type
Closed Ended Investment Company
ISIN
GB0006048770
Sector
Country Specialists: Asia Pacific
Launched
09/12/2004
OCF
1.17 %
Risk Rating
3
3 Year Sharpe
0.41
3 Year Alpha
-0.45
Yield
0 %
Benchmark
MSCI India GR USD
Fund Size
£ 276.86 million
NAV
539
Gearing
106
Discount Premium
-14
To achieve long-term capital appreciation by investing in companies which are incorporated in India or which derive significant revenue or profit from India, with dividend yield from the company being of secondary importance.
Holding %
Housing Development Finance Corp Ltd 9.95 %
Tata Consultancy Services Ltd 8.09 %
Infosys Ltd 6.12 %
Hindustan Unilever Ltd 5.44 %
Kotak Mahindra Bank Ltd 4.64 %
ITC Ltd 4.52 %
Nestle India Ltd 3.89 %
UltraTech Cement Ltd 3.75 %
SBI Life Insurance Co Ltd 3.74 %
Container Corporation of India Ltd 3.44 %
Region %
Asia - Emerging 100.00 %
Sector %
Financial Services 25.05 %
Consumer Defensive 18.80 %
Technology 18.26 %
Basic materials 11.33 %
Healthcare 8.29 %
Consumer Cyclical 6.14 %
Name
Aberdeen Standard Investments
Address
EC4M 9HH, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Pruksa Iamthongthong
Joined 08/01/2007

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
Joined 12/09/2004

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
Joined 12/09/2004

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
Joined 12/09/2004

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.

Hugh Young
Joined 12/09/2004

Hugh Young is Managing Director − Asia for Aberdeen Standard Investments. He was formerly a board director and head of Investment for Legacy Aberdeen (before its merger with Standard Life plc). Mr. Young joined Legacy Aberdeen in 1985 to manage Asian equities form its London office, having started his investment career in 1980. He founded Singapore-based Aberdeen asset Management Asia Limited in 1992. Mr. Young is a director of a number of Legacy Aberdeen subsidiary companies and of investment trusts and funds managed by Aberdeen Standard Investments. Mr. Young graduated with a BA (Hons) in Politics from Exeter University.

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