By Annabel Brodie-Smith
Yesterday was the first day of India’s election, where a mind-boggling 900 million voters will go to the polls for the largest election in the world.
I have to admit India is a very special country for me as I went there for my honeymoon nearly fourteen years ago. The sights, smells and colours will stay with me forever. And then there’s my favourite city, Fatehpur Sikri, which was founded as the capital of the Mughal Empire in 1571 by Emperor Akbar, abandoned and then rediscovered Indiana Jones-style by Lord Curzon.
But enough of the romance, with the election under way it’s time to analyse India’s opportunities and outlook as well as looking at the investment companies with the highest exposure to India. Our managers consider the election’s impact, with momentum currently with Modi, but volatility expected along the way. The election itself is important as Ashoka India Equity’s Prashant Khemka explains: “The fact that India is a long-established and well-functioning democracy makes it a superior investment destination among emerging markets.” Managers are positive about the long-term outlook for India, seeing opportunities in private sector banks, building materials and India’s thriving IT sector. David Cornell of India Capital Growth sums it up: “Even with short-term uncertainty surrounding the election, India has built a strong case as a standalone investment destination.” The recent launch of David Attenborough’s ‘Our Planet’ programme on Netflix has yet again bought home the vulnerability of the environment. We have looked at a diverse range of investment companies that are increasingly incorporating Environmental, Social and Governance investment criteria, known as ESG, into their strategies. Interestingly, following on from India, emerging markets feature again with Mark Mobius, manager of Mobius Investment Trust explaining: “We work with companies on a range of material factors, from helping to improve investor relations to suggesting enhancements to decrease water usage or lower employee turnover.”
This month’s column from our investment guru, Ian Cowie, is a must-read on the three most important things he’s learned from his experience of investment. I particularly like his third lesson – “Let time do the heavy lifting.” Interestingly, Ian’s longest-held investment is the Indian investment trust JPMorgan Indian, but you’ll have to read the article to find out which was his best performer. Finally, this week we have launched Income Finder, a new set of tools and resources to help income seekers research and analyse investment companies. You can build a virtual portfolio of income-paying investment companies, track the dividend dates and see how much income you could receive over a year. There‘s a dividend diary which shows investment companies' dividend payment dates, plus a glossary and guides section which provides videos, articles and jargonbusters. We think Income Finder will help you plan your portfolio to suit your income needs and we look forward to hearing your thoughts on this new resource.
I’d like to wish you a Happy Easter and hope the Easter Bunny is generous. Annabel Brodie-Smith Communications Director, AIC
