Aberdeen New India trust underperforms benchmark with key misses

Adani Group largest culprit

The Aberdeen New India investment trust’s half-yearly results revealed that it had underperformed the benchmark with some key stock picking misses.

The Adani Group, a conglomerate focusing on transport logistics and utilities, was identified as a key culprit for the trust's underperformance of the benchmark. Managers Kristy Fong and James Thom said that the trust avoids investing in Adani firms, due to "their weak financial track records, highly over-leveraged balance sheets and major ESG concerns," even as the stocks have seen strong overperformance in recent months. The managers said that Adani had "contributed to over half of the portfolio's relative underperformance of the benchmark over the six months." Deep Dive: India...