InvestNow News – 19th June – India Avenue Update – June 2020
The Indian market remains in a state of flux as the Government announced several fiscal measures and a total relief package of AU$400bn. However, most of it pertains to liquidity injections, loans and credit guarantees, while direct fiscal stimulus is quite limited compared to other nations. In our discussions with contacts on the ground however, the Government does not want expend all its ammunition in one go, giving them time to consider more targeted measures as they gain a deeper understanding of the economic impact. Despite the fall, and after two consecutive months of outflows, both Foreign and Domestic investor flows have turned positive with USD1.7bn and USD1.5b respectively.
Fund and Market Commentary: May 2020
The India Avenue Equity Fund (wholesale) fell 3.28% (net) for the month of May 2020, outperforming its benchmark by 0.84%. Markets around the world (including India) staged an impressive comeback in April after a calamitous March. However, in May India underperformed global markets on the back of uncertainty around the pandemic’s effect on India, as well as the extended lockdown imposed by the Government. Other global markets continued their recovery with Brazil (+9%), Japan (+8%), Russia (+6%), the US (+5%), Korea (+4%), the UK (+3%), Indonesia (+1%) and the MSCI Emerging Market Index (+1%) – in local currency terms. The Indian market remains in a state of flux as the Government announced several fiscal measures and a total relief package of AU$400bn. However, most of it pertains to liquidity injections, loans and credit guarantees, while direct fiscal stimulus is quite limited compared to other nations. In our discussions with contacts on the ground however, the Government does not want expend all its ammunition in one go, giving them time to consider more targeted measures as they gain a deeper understanding of the economic impact. Despite the fall, and after two consecutive months of outflows, both Foreign and Domestic investor flows have turned positive with USD1.7bn and USD1.5b respectively.
India Avenue Grass Roots Tour Highlights – India Avenue recently held a virtual Grass Roots Tour which included presentations from a number of different speakers (including from Fund Managers & company owners/management). The attached paper here highlights some of the key takeaways from the sessions, and the portfolio positoning of the India Avenue Equity Fund.