RCS - Ashoka India Equity - Results analysis from Kepler Trust Intelligence

Ashoka India Equity Investment TrustAnnouncement

13/10/2025 11:45

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20251013:nRSM1287Da&default-theme=true

RNS Number : 1287D  Ashoka India Equity Investment Tst  13 October 2025

Ashoka India Equity (AIE)

13/10/2025

Results analysis from Kepler Trust Intelligence

Ashoka India Equity (AIE) has released its annual results for the year ending
30/06/2025, with a NAV return of -0.2% versus the MSCI India IMI Index of
-6.6% in sterling terms. Near-term returns have extended the trust's long-term
outperformance. Since inception in 2018, AIE has returned c. 181% versus c.
93% for the index, despite the impact of CGT accruals. This outperformance has
primarily been driven by stock selection.

In the period, the top contributors came from a mix of industries,
demonstrating the influence of stock selection. OneSource Specialty Pharma was
the biggest contributor, ending the period as the second largest stock. Other
top contributors were a communications and financial firm. The largest
detractors consisted of a consumer staples, an IT and an industrials firm.

Post results, Hiren Dasani joined the firm from Goldmans Sachs to become
co-portfolio manager. The managers have a small and mid-cap bias, with
overweight allocations to industrials and healthcare. The board is proposing
for an increase in exposure to private companies to 15% of gross assets (at
the time of investment), to be voted on at the next AGM.

Despite not being an objective, the trust generated sufficient income to
declare a small dividend. The trust traded at a premium during the year,
enabling share issuance. The increase in the trust's size led to its promotion
to the FTSE 250 Index.

The managers are renumerated with a performance fee, although they have
elected to have this paid in ordinary shares. The fee is incorporated into the
NAV, meaning the outperformance already reflects the impact of the performance
fee.

Chairman Andrew Watkins maintained a positive outlook, saying: "the economic
growth prospects for the powerhouse of the Indian economy remain intact" and
that the team "have established deserved reputations in India for being high
quality investors [which can] translate into continued excellent, long-term
returns for our shareholders".

Kepler View

Ashoka India Equity (AIE) has produced a very strong set of results in a
falling market which is impressive and demonstrates the quality of the
stock-picking process in our view. We believe this cement AIE's place as one
of the premier India funds particularly amongst small and mid-caps.

AIE's outperformance masked some of the challenges faced by the Indian economy
over the period, although the managers believe there are early signs a
recovery is beginning. Most of the factors that contributed to the pullback
have not affected the long-term, structural growth story in our view.  Whilst
the issue of tariffs still lingers, a settlement could surprise to the upside.

The board has sought to meet investor demand through considerable share
issuance, which when combined with the performance has led to an index
promotion. We believe this could open up a broader investor base, increasing
demand and liquidity.

Charges have long been a differentiator in our view. AIE's managers are only
paid for their outperformance, which is accounted for in the NAV. The managers
have elected to take this in shares which we believe is a vote of confidence
in both the outlook for the market and for the trust.

CLICK HERE TO READ THE FULL REPORT
(https://www.trustintelligence.co.uk/investor/articles/news-investor-results-analysis-ashoka-india-equity-retail-oct-2025?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  NRABGBDGSXBDGUX



            Copyright 2019 Regulatory News Service, all rights reserved