Jun 19, 2025 (MarketLine via COMTEX) --
JPMorgan Indian Investment Trust has released half year results for the six months ended March 31, 2025.
Highlights
· For the six months ended 31st March 2025, NAV total return of -7.2% compared with -10.6% for the MSCI India Index (in Sterling terms) (the 'Benchmark'). Share price return of -4.8%.
· The key drivers of relative performance were:
1) The market decline during the six months to end March 2025 meant that CGT write backs supported performance over the review period.
2) Strong earnings were delivered in three out-of-index positions - Coforge/Exls/Make My Trip.
3) Long-standing overweight in two banks, Kotak and ICICI, due to a more favourable outlook on rates and liquidity condition, and the structural underweight to Reliance Industries, an oil and gas refiner.
· The discount to NAV narrowed from 17.8% at the previous year end to 15.6% at the half year end. As at 17th June 2025 the discount was 7.7%.
· The Company repurchased 3,136,391 shares into Treasury during the six-month reporting period, equating to 3% of the Company's share capital. Since the half year end, a further 133,228 shares have been bought back for holding in Treasury
The Chairman of JII, Jeremy Whitley, commented:
"Whilst the Company outperformed the benchmark, thanks to positive stock selection and the favourable effect of capital gains tax credits arising from the market decline, the outright fall in returns is nonetheless disappointing. However, as we have previously noted, we believe that it is more meaningful to assess performance over the longer term"
"It remains the Board's view that the investment case for Indian equities is very strong. The pace of growth may be easing at present, but India's very positive long-term growth trajectory remains in place, supported by several major structural changes such as increased infrastructure investment, digitalisation and the growth of the middle classes."
"Together with the Company's advisers and managers, and with engagement with shareholders, on 19th May 2025 we announced a suite of proposals that we believe should enhance the attractiveness of the Company to both existing and potential shareholders and which are intended to narrow the discount to a consistently lower level."
Portfolio Managers, Amit Mehta and Sandip Patodia, commented:
"The decline in Indian equity market, combined with the growth slowdown, meant that the six months to end March 2025 was a challenging time for investors."
"The Indian equity markets experienced a significant and broad-based correction, triggered by a cyclical yet shallow slowdown in economic activity, moderation in government-led capital expenditure, weaker than expected corporate earnings and ongoing slowdown in mass consumption."
"Looking ahead, it is important to stress that the current weakness in Indian equities, and any potential further near-term sell-off, do not alter the long-term structural opportunities offered by this market.."
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COMTEX_466652772/2227/2025-06-25T16:29:27
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