Saltydog Portfolio: The enema within

Saltydog is taking advantage of the economic changes taking place across India, says Douglas Chadwick.

Normally one confronts an enema with a certain amount of fear and trepidation. Almost certainly you will be undertaking this treatment because of a deeper underlying medical problem. But this is a ‘clear-out’ with a purpose, and you have confidence that at the end of this effrontery the medical profession is competent to improve your health and well-being.

This is one way of describing what’s happened in India.

Narendra Modi was elected prime minister of India in 2014 with the promise to cut the costs of doing business, reduce the amount of fraud and tax avoidance, and improve the standard of living for millions. He is addressing the fragmented interstate tax system by introducing a single national tax on goods and services.

But the enema that he inflicted on the population at the end of last year was to remove 80 per cent of the country`s currency virtually overnight. The black-market economy was brought to a standstill as the old notes had to be replaced with new from a bank, forcing the people into the banking system and digital payments. In other words, the government now knows who you are!

Modi still enjoys remarkable success and electoral popularity, however. This means that businesses and investors can make long-term plans around his reform programme in a way that people in America and Europe can only dream of.

At Saltydog we have been aware of this success, which the one-year graph of the Jupiter India and the Neptune India funds clearly demonstrates. This is a momentum trend which we can all join in. It is also very clear as to the time-line on the graph when the enema was administered, and the recovery that has taken place since. Making gains in this Saltydog momentum way is just common sense, provided of course that you have the information.

We are currently holding one of the India funds in our ‘Ocean Liner’ Portfolio.

Here’s a list showing all the funds in this portfolio:

Over the last couple of months, the pound has started to strengthen and this has made the ‘global’ funds less appealing. This portfolio has responded by increasing the amount invested in the UK Equity Income and UK Smaller Companies sectors.

Here’s a graph showing its performance since launching in November 2013.


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