The Alquity Indian Subcontinent Fund has been performing well since its inception in 2014 by focusing on the domestic economic trends prevalent in India. All economies move in cycles and India is no exception – since the rather brief but rapid downturn through 2018 into 2019, and despite the COVID-19 emergency throughout 2020 and into this year, India has actually done surprisingly well.
We have been promoting the idea of a renewed Indian economy for a number of reasons in the last year, regular readers will know our base case well. If you add in the continued impetus of a strongly reformist and pro-growth government that has been steady in its course, and the ability of India to benefit from changing global trade relationships in the region, you have a very strong case for India to be a dedicated position in the portfolio. We have an overweight to India in the Future World (EM) and Asian funds and an underweight to China accordingly.