RCS - Ashoka India Equity - Results analysis from Kepler Trust Intelligence
17/10/2024 11:18
For best results when printing this announcement, please click on link below: https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241017:nRSQ6265Ia&default-theme=true RNS Number : 6265I Ashoka India Equity Investment Tst 17 October 2024 Ashoka India Equity (AIE) 17/10/2024 Results analysis from Kepler Trust Intelligence Ashoka India Equity (AIE) has released its annual results for the year to 30/06/2024. The net asset value (NAV) increased by 35.5% during the 12-month period, versus a gain of 37.7% from the MSCI India IMI, a slight underperformance of 2.2 percentage points. The share price rose 35.9% during the same period. The performance continues AIE's fine returns since it was launched in 2018, with the NAV up 185% and the share price rising 184% in that time, versus a 121.5% gain from the benchmark index - impressive long-term performance. The company's share price at year-end stood at 284p, a 1.7% premium to NAV. Demand from both existing shareholders and new investors also continued, with more than 43 million new shares issued at a small premium to the prevailing NAV, raising a total of £107.5 million. The portfolio remains well diversified and balanced across both cyclical and counter-cyclical sectors. Management believes that this helps them to consciously avoid market timing, sector rotation and other such top-down bets. Stylistically, AIE aims to be agnostic. Top contributors to performance were Azad Engineering, which makes highly engineered precision and machined components for companies in sectors such as defence and energy; the private sector bank ICICI; and CG Power and Industrial Supplies, which makes railway and power transmission products. While there's a risk that any sustained weakness in global growth could weigh on market performance, the investment manager remains optimistic on the outlook, believing that the structural growth drivers of the Indian economy are deep rooted, making India an attractive long-term investment opportunity. Andrew Watkins, chairman, said: "Conditions for investment managers to concentrate and produce positive returns for their shareholders have not become any easier in the last 12 months as tensions persist worldwide. Perhaps being based in Mumbai and Singapore provides an element of shelter from the cacophony of this rather mad world in which we all currently reside and, if so, the high regard in which my fellow directors and I hold the company's investment manager and adviser grows by the day." Kepler View The exceptional returns that the managers of Ashoka India Equity (AIE) have delivered since inception have continued through its 2024 full-year, with both the NAV and share price only narrowly underperforming the benchmark index in the near-term. AIE has arguably captured the impressive growth of the India market better than peers, with its focus on ensuring that the portfolio is not over- or under-exposed to any one factor, including having a reasonable balance in large caps. In fact, AIE's 60 percentage-point outperformance of its benchmark since inception, in our view, makes it one of the stand-out trusts across all emerging markets. Leading the way for active management, much of AIE's success has come down to stock selection, with the managers achieving a 'hit rate' of c. 65%, well above the 55% that is considered a high standard in the industry. As such, we believe there are encouraging signs for future performance. The focus on small and medium-sized businesses helps in this regard. WhiteOak's team of highly experienced analysts are able to exploit this under-researched space for alpha generation, therefore we believe this should provide more opportunities for the managers going forward. The charging structure is also a standout feature. The managers are only remunerated for outperformance of the benchmark, aligning their interest fully with shareholders. This has been further enhanced in our opinion with the decision to use the fees to invest back into the trust, which shows strong commitment to the long-term future of the trust. AIE is, in our opinion, a risk-managed way of accessing this popular asset class with significant alpha potential. CLICK HERE TO READ THE FULL REPORT (https://www.trustintelligence.co.uk/investor/articles/news-investor-results-analysis-ashoka-india-equity-retail-oct-2024?utm_source=RNS&utm_medium=news) Visit Kepler Trust Intelligence (http://www.trustintelligence.co.uk/investor?utm_source=RNS&utm_medium=news) for more high quality independent investment trust research. Important information This report has been issued by Kepler Partners LLP. The analyst who has prepared this report is aware that Kepler Partners LLP has a relationship with the company covered in this report and/or a conflict of interest which may impair the objectivity of the research. Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise and you may get back less than you invested when you decide to sell your investments. It is strongly recommended that if you are a private investor independent financial advice should be taken before making any investment or financial decision. Kepler Partners is not authorised to make recommendations to retail clients. This report has been issued by Kepler Partners LLP, is based on factual information only, is solely for information purposes only and any views contained in it must not be construed as investment or tax advice or a recommendation to buy, sell or take any action in relation to any investment. The information provided on this website is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject Kepler Partners LLP to any registration requirement within such jurisdiction or country. In particular, this website is exclusively for non-US Persons. Persons who access this information are required to inform themselves and to comply with any such restrictions. The information contained in this website is not intended to constitute, and should not be construed as, investment advice. No representation or warranty, express or implied, is given by any person as to the accuracy or completeness of the information and no responsibility or liability is accepted for the accuracy or sufficiency of any of the information, for any errors, omissions or misstatements, negligent or otherwise. Any views and opinions, whilst given in good faith, are subject to change without notice. This is not an official confirmation of terms and is not a recommendation, offer or solicitation to buy or sell or take any action in relation to any investment mentioned herein. Any prices or quotations contained herein are indicative only. Kepler Partners LLP (including its partners, employees and representatives) or a connected person may have positions in or options on the securities detailed in this report, and may buy, sell or offer to purchase or sell such securities from time to time, but will at all times be subject to restrictions imposed by the firm's internal rules. A copy of the firm's Conflict of Interest policy is available on request. PLEASE SEE ALSO OUR TERMS AND CONDITIONS (http://www.trustintelligence.co.uk/investor/terms?utm_source=RNS&utm_medium=news) Kepler Partners LLP is authorised and regulated by the Financial Conduct Authority (FRN 480590), registered in England and Wales at 70 Conduit Street, London W1S 2GF with registered number OC334771. This information is provided by Reach, the non-regulatory press release distribution service of RNS, part of the London Stock Exchange. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com (mailto:rns@lseg.com) or visit www.rns.com (http://www.rns.com/) . RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy) . END NRABGBDGLBBDGSR