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JPMorgan Indian Investment Trust PLC on Friday said it underperformed its benchmark due to limited exposure to the fastest growing sectors during the recent half-year. The investment company is the largest London-listed trust providing exposure to Indian equities with long-term growth potential. JPMorgan Indian shares were up 1.1% to 972.50 pence each in London on Friday morning. The wider FTSE 250 index was down 0.3%. In the six months ended March 31, JPMorgan IIT swung to a £54.8 million pretax profit from a £66.1 million loss a year previous. The company swung to earnings per share of 59.90 pence from a 90.05p loss, while total income stood at £58.0 million, compared to a loss of £63.0 million. The trust produced a total return on net assets of 6.2%, underperforming its benchmark, the MSCI India Index, which in turn rose 15% over the period. Net asset value was 1,123.7 pence per share on March 31, up 17% from 958.7p. Failure to match the benchmark was attributed to underperformance in financial, IT, and consumer staples sectors, which account for the largest proportion of holdings. Around 30% of the underperformance stemmed from the trust’s three largest stock detractors, including HDFC Bank Ltd, WNS Ltd and Hindustan Unilever Ltd. The decision not to ‘overpay’ and hold high-growth stocks, such as online food delivery service Zomato Ltd and fashion retailer Trent Ltd, caused the trust to miss out on the strong performance of such companies during the period. Looking ahead, the investment manager views India’s macroeconomic picture as ‘overwhelmingly positive’ although remains cognisant of several inherent risks such as India’s dependence on oil imports, low agricultural productivity, and reliance on global capital inflows. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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