Aberdeen New India lags benchmark in ‘challenging’ period for equities
Aberdeen New India Investment Trust PLC on Thursday reported an annual decline in its net asset value, but expressed optimism around the underlying strength of its portfolio.
The investment trust invests in firms that are based in India or generate significant revenue from the country.
Aberdeen New India reported a NAV total return of minus 20.4% for the financial year that ended March 31, underperfoming its benchmark, the MSCI India Index (sterling adjusted), which returned minus 13.9% over the same period.
The company’s NAV per share fell 20.4% to to 707.61 pence at March 31 from 889.34p a year prior.
The company’s investment manager, abrdn Asia Ltd, explained that the period represented a ‘challenging’ one for Indian equities.
The financial year was shaped by a combination of domestic factors, according the investment manager, as well as ‘trade-related uncertainty, and, more recently, the conflict between the United States and Iran, which has driven commodity prices higher.’
Shares in the investment trust were up 1.4% at 714.00 pence on Thursday afternoon in London.
Looking ahead, Chair David Simpson said: ‘Favourable demographics, ongoing policy reform, rising aspirational consumption, infrastructure development and urbanisation, accelerating digital adoption, and progress in energy transition all support our continued confidence in India’s growth story.’
abrdn Asia’s James Thom and Rita Tahilramani noted: ‘The portfolio continues to own high-quality stocks. While style rotation and market crosswinds have weighed on returns over the year, the underlying strength remains intact.’
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