The company’s share price increased by 65.6% over the period, this compares to the company’s benchmark of +59.1%.
Net asset value per Ordinary Share also returned +52.7%.

The company said that after the Covid-19 upheaval in March 2020, the Indian stock market staged a strong comeback during the Year. This resilience was the result of coordinated global monetary easing and simultaneous fiscal stimulus as well as the rollout of vaccines in some countries around the world.

The Indian domestic economy, also, began to slowly get back on track: from one that was at a virtual standstill for almost three months in mid-2020, resulting in severe damage to supply chains and widespread job losses, to one that is seeing a nascent but fragile recovery, with improving credit conditions and corporate earnings through successive quarters.

Although the Trust’s NAV return fell somewhat behind the performance of the Index, unlike the year before when it had outperformed, for the most part, the portfolio behaved as the Company’s managers had intended: with a firm foundation of industry-leading companies that not only have the quality to withstand severe market gyrations, but are also equally well-placed to benefit from a market upturn.

Performance over the reporting period was affected as the Managers remained cautious about diversifying into stocks that benefited temporarily from the sharp upturn in the market. There were also certain sectors that did well in the pandemic but which subsequently faced profit-taking.

One such example was the banking sector, with the company having an exposure through several good quality private-sector lenders, especially those with ample capital buffers, attractive assets and led by experienced management. Further details are provided in the Investment Manager’s Report which can be found here Annual Financial Report - 07:00:06 11 Jun 2021 - ANII News article | London Stock Exchange.

Meanwhile, several themes emerged in the Indian stockmarket over the course of the Year. Notable among these were the impetus for digital solutions as a direct response to the pandemic, government reform and, allied to that, the push to go green.

Hasan Askari, chairman of Aberdeen New India Investment Trust, said: “Over the longer term, the Indian market continues to retain its appeal. This stems from India being home to many high quality companies, led by experienced management, that have been tested by crises, both past and present.

“Consumption is driven by an expanding middle-class. Labour supply is ample given the youthful and educated population. Government reforms to modernise the country, despite political challenges and inefficiencies, will eventually come to pass.

“Meanwhile, the manager’s focus on the market remains constant and, despite the present crisis, will continue to seek out opportunities to enhance the underlying portfolio with its well-tested approach that will ensure sustainable long-term growth for the company.”

Commenting on the outlook for Aberdeen New India Investment Trust, investment managers Kristy Fong and James Thom, added: “It is under such trying circumstances that we need to remind ourselves that India is still one of the fastest growing economies in the world and that it is home to many well-managed companies that are embedded with solid corporate governance standards.

“While the short term is likely to stay volatile, the company’s portfolio has been built to weather storms such as the current one.

“The company’s core holdings are well capitalised, backed by solid balance sheets and are leaders in their respective business sectors. They are well equipped to ride out this storm, given their quality that lends them a defensive buffer in difficult times.

“We remain focused on identifying companies that possess high barriers to entry, clear earnings levers, and that maintain prudent capital management. We believe the portfolio’s holdings should continue to deliver sustainable returns over the long term despite recent issues associated with Covid-19.”