(Alliance News) - Ashoka India Equity Investment Trust PLC on Monday said protectionist policies by the US could accelerate manufacturing moves to India as it reported growth in its net asset value.
The investment trust says its objective is to achieve long-term capital appreciation, primarily through investing in Indian securities and listed securities of firms with a significant presence in the country.
For the six months ended December 31, Ashoka India said it realised net asset value and share price returns of 5.7% and 5.6% respectively. Its benchmark, the MSCI India IMI index, returned minus 2.7% over the same period.
Shares in Ashoka India were however down 1.2% at 250.04 pence early on Monday afternoon in London.
The trust said its NAV grew 11% to GBP484.2 million at December 31, from GBP435.4 million at June 30.
Shareholders voted to broaden the company's investment policy in May 2024, with the trust stating that it its interim performance "has been generated from a broad universe of investments ranging from large caps to a handful of unquoted companies with advanced plans to float on the Indian stock exchange".
It said the broadening of its strategy has "continued to pay dividends" through excess returns to shareholders and reduced portfolio risk through diversification.
Looking ahead, Chair Andrew Watkins said: "India may very well be a direct beneficiary of a more peaceful world. Whilst President Trump intends to adopt a more protectionist stance and, among many other things, impose tariffs on imports, such a situation may accelerate the move of manufacturing from countries like China to India, as I have referred to several times in the past, thus further benefitting its already fast-growing economy, now the world's fifth largest.
"However, there is likely to be short-term disruption as his strategy plays out."
By Christopher Ward, Alliance News reporter
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