19th Jun 2025 11:05
(Alliance News) - JPMorgan Indian Investment Trust PLC on Thursday saw losses widen in the half-year ended March 31, despite narrowing its share price discount.
The London-based investor in Indian assets posted a negative 7.2% return on net asset value in the first-half, compared to a positive 6.2% return the year prior. Still, this was an improvement on the trust's benchmark, the MSCI India index, which reported a negative 11% return for the same period.
JPMorgan Indian Investment said that NAV per share at March 31 was 1,159.6 pence, up from 1,123.7p on-year. The share price discount to NAV narrowed to about 16% from 18% the previous year.
Still, pretax loss in the first-half widened to GBP80.7 million from GBP54.8 million. Loss per share was 99.73p versus 59.90p in 2024.
"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," noted Chair Jeremy Whitely.
Still, Whitely said: "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. Among the major economies, only China can hope to achieve comparable rates of growth over the next decade."
The trust plans to maintain its policy for a total dividend equal to 4% of NAV at the prior year-end, paid quarterly.
It has also proposed a triennial tender offer for up to 100% of outstanding shares at a 3% discount to NAV. The offer is expected to launch in the second-quarter of 2028, subject to shareholder voting at a general meeting on July 8.
Portfolio Managers Amit Mehta and Sandip Patodia commented: "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."
JPMorgan Indian Investment shares were 0.4% lower at 1,064.00p on Thursday morning in London.
By Holly Munks, Alliance News reporter
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