Jpmorgan Indian Investment Share Discussion Threads

[hectorp] 12/1/2008 18:51

mark I'm also swithing some from JMC China into India and also the amazing, TEM though it has done so well. There are huge currency play potentials in TEM. ( maybe in all these non sterling/USD funds. Long gold too.

[nerja] 12/1/2008 13:48

markth, dont know what you mean by wise after the event, I agree about china have been getting abit worried about it myself. I sold a large % of all of them last week only taking some profits/playing safe in these testing markets, but I still think that JRS, JII, Jmc, JMg will do well in comparison to the others in the JPM house this year,

[markth] 12/1/2008 13:03

Well it's easy to be wise after the event, but my question was how do you tell at time of purchase? 10% is still historically a significant discount for JII, a level not seen since late '03.

I'm long the China fund too; but it seems to be faltering now and I switched some more into JII just before Xmas.

Oh, BTW - I'd see someone about that stammer, lol.

[nerja] 12/1/2008 12:59

Support Take a look at merc, mid & smaller they have been buying by the £millions from march onwards and the shares have still fallen big style, value for me is when they do it with large discount or the occasional one like this recent and the recent one on china IMO.

[nerja] 12/1/2008 12:59

Support Take a look at merc, mid & smaller they have been buying by the £millions from march onwards and the shares have still fallen big style, value for me is when they do it with large discount or the occasional one like this recent and the recent one on china IMO.

[markth] 12/1/2008 12:54

So, nerja, how to tell a "value" repurchase from a "support" one?

According to trustnet (below) the discount on this hasn't been as low as 20% since the crash of 03.



It did run at a small premium for a year or so, and IIRC the managers did issue fresh shares to take advantage of it. JPM's folk running this trust seem to know their business.

I've been in and out of it many times since it started. Currently long in my SIPP.

[hectorp] 12/1/2008 12:34

So the logic is, that JPM do NOT think the fund price is close to all time highs , ie they will be higher in 2008. Its also a self-fullfilling dynamic.
I might add more!

[nerja] 12/1/2008 11:01

markth, after 10years following JPm trust very closely I know full well what the repurchase is, however like I wrote I have never seen them buy any at all time highs on any of the funds before and the spread to nav is only 10% this has been up to 20%. I watch the share BUYS or Sells to try to detect if they are doing it to support or if its for value it does make a difference IMO.

[markth] 12/1/2008 10:12

The share repurchase is a discount arbitrage play. Currently in JII you can buy £1 of assets for 90p. If you are a fund manager and have spare cash, and can use that to purchase your own shares to create demand which closes the discount on the trust for all shareholders, and also improves NAV by redistributing the asset base over a smaller number of shares, who cares whether they buy at an all time high or not?

If there's a mug out there who wants to hand me £1 for 90p of my money, I'll take it :)

[hectorp] 09/1/2008 09:09

Well, today proves why it is still a buy, look at the Western markets today. Look at JII , and compare.

[pachandl] 08/1/2008 16:24

It was a nice ride but decided to sell out - surely nothing can keep rising like this? Anyway, best of luck for those who stayed in - it could be your lucky year.

[nerja] 08/1/2008 13:31

www.h-l.co.uk/news_and_expert_views/online_investment_videos/view/schiessl.hl

Worth a look at

[nerja] 08/1/2008 13:18

REPURCHASE OF ORDINARY SHARES FOR CANCELLATION





JPMorgan Indian Investment Trust plc has today purchased 57,000 ordinary shares
for cancellation at 475.3819 pence per share.



Following the transaction the remaining shares in issue total 104,749,662
including 1,979,788 held in treasury at a weighted average discount of 12.31%

Phew, not seen them buying at all time highs before on any of the trusts.

[hectorp] 08/1/2008 11:57

Started buying these for the SIPP and the ISA.
Maybe a bit late, but, could still see 20% in 2008.

[gurp] 07/1/2008 12:38

seems to be the wheat in a field of chaff atm

[nerja] 07/1/2008 11:02

Jan. 7 (Bloomberg) -- Gordon Brown's plane will have barely departed New Delhi's Indira Gandhi International Airport this month before Nicolas Sarkozy's arrives with another contingent of executives seeking opportunities in India's rapidly opening markets.

The British prime minister and the French president, separately visiting the week of Jan. 20, are bringing along commercial delegations including retailers Tesco Plc and Carrefour SA, attracted by a burgeoning middle class and loosening curbs on foreign ownership in the nation of 1.1 billion people.

Overseas investment in India may double in 2008 for a second straight year to reach $30 billion, the government forecasts, as the world's second-fastest growing major economy arrives at what Lehman Brothers Holdings Inc. calls its ``take- off'' point. That's when consumer demand and business spending start feeding off one another and drive even more investment.

``India's growth acceleration is not a flash in the pan,'' says Robert Subbaraman, chief economist at Lehman Brothers Asia in Hong Kong. ``A middle class is fast emerging, which is spurring demand as consumption and investment interact.''

Like China and South Korea in previous decades, India is benefiting from an increasingly open economy that has already stimulated enough growth to double per-capita income since 2000, according to Lehman. The resulting surge in demand for consumer goods has tripled mobile phone use in two years and fueled a 29 percent jump in sales of microwave ovens in 2007, Lehman says.

Purchasing Power

With the explosion of purchasing power, India's economy is poised to expand 9 percent for a third straight year, while the U.S., Europe and Japan slow to less than 3 percent growth.

McKinsey & Co., the New York-based consulting firm, estimates that India's middle class -- those with annual disposable incomes between $4,380 and $21,890 in current dollars -- will increase more than 10-fold to 583 million by 2025.

India's appeal is more than a matter of demographics. Prime Minister Manmohan Singh, who as finance minister in 1991 started dismantling barriers to foreign investment and other Soviet- style controls on industry, is preparing to permit overseas companies to build retail chains in the country. That's prompting interest from companies including Hertfordshire-based Tesco, Britain's largest retailer, and Paris-based Carrefour, which operates supermarkets on four continents.

Bigger Stakes

Singh's government is also moving to raise the limit on foreign equity stakes in local insurers to 49 percent from 26 percent, and has a roadmap to let foreign banks increase holdings in India's private banks. Brown's party will include representatives of Prudential Plc, the U.K.'s second-biggest insurer, and Barclays Plc, the No. 3 British bank, both based in London.

``India has long been noted for its superb `micro' -- good companies, rule of law, democracy,'' says Stephen Roach, chairman of Morgan Stanley in Asia. ``What has been missing is the `macro' -- foreign direct investments, infrastructure. What's encouraging to me about India now is that the macro is starting to improve and is reinforcing the already positive micro.''

Foreign ownership in telecommunications has helped India become the world's third-largest user of telecom services after China and the U.S. It's the world's fastest-growing wireless market.

`Heart of Globalization'

``India is a country of enormous opportunity; it's the heart of globalization in a way,'' says Ben Verwaayen, chief executive officer of London-based BT Group Plc, the U.K.'s largest phone company. ``You see a growing base for companies from around the globe, being here not just for this region itself, but being here as a kind of base for what they can do in other parts of the world as well.''

San Jose, California-based Cisco Systems Inc., the world's largest maker of computer-networking equipment, plans to triple its Indian workforce to 10,000 by 2010, Chief Executive Officer John Chambers said in October.

Automakers including General Motors Corp. and Suzuki Motor Corp. are spending more than $6.6 billion to build new factories in the country. PricewaterhouseCoopers LLP says India's auto output will grow about 17 percent annually until 2011, the fastest among the 20 largest carmaking nations.

India's higher profile in the global economy not only makes it a magnet for foreign investment, but also gives its companies a bigger role on the world stage.

Overseas Acquisitions

Indian companies led by Tata Steel Ltd. and Hindalco Industries Ltd., both based in Mumbai, completed a record $39.2 billion of overseas acquisitions in 2007.

Tata's $12.9 billion purchase of Britain's Corus Group Plc, the biggest overseas takeover by an Indian company, made it the world's fifth-biggest steelmaker. Buying Novelis Inc. of Atlanta provided Hindalco, India's biggest aluminum producer, access to customers such as GM and Coca-Cola Co. The trend is continuing: Tata Motors Ltd. of Mumbai, India's largest truckmaker, last week was selected as the preferred bidder for Ford Motor Co.'s Jaguar and Land Rover units, the U.S. automaker announced.

Brown and Sarkozy are joining a parade of world leaders coming to India with agendas that include closer commercial ties. U.S. Treasury Secretary Henry Paulson, visiting in October, said U.S. companies will participate in India's $500 billion program to modernize roads, ports, power and other infrastructure by 2012. The U.S. will help India transform its financial capital, Mumbai, into an international financial center, he said.

During an August visit, then Japanese Prime Minister Shinzo Abe said Japan will help plan a $90 billion infrastructure corridor between New Delhi and Mumbai, including freight lines, power stations and improved access to ports and airports.

Impediment

Such projects may reduce one of the biggest remaining impediments to doing business in India -- poor infrastructure. For all the expansion in the Indian market, its foreign direct investment still pales in comparison to what China has received -- about $60 billion in each of the past three years.

It takes 24 days for Indian exports to reach the U.S. compared with only 15 days from China and 12 from Hong Kong, according to Lehman Brothers.

``If India doesn't get its act together on infrastructure urgently, then it can never realize its aim of accelerating growth,'' says Vineet Agarwal, executive director of Gurgaon- based Transport Corporation of India Ltd., the nation's biggest cargo transportation and logistics services company.

Even as India's economy reaches take-off speed, almost 300 million people continue to live on less than $1 a day, according to the World Bank.

Fewer Poor

The absolute number of poor in India fell for the first time between 1999 and 2004 after the government's policies to allow more foreign investment and reduce regulation on industry spurred growth, according to the Paris-based Organization for Economic Cooperation and Development.

``The Chinese take-off began in the 1980s and didn't show through in terms of increased living standards for the majority for quite some time,'' says Howard Davies, director of the London School of Economics and a former chairman of the U.K. Financial Services Authority. ``Just the same way, India has got the economic take-off but it needs to be sustained for a decade before you really see the place looking different

[benchmark] 13/12/2007 08:45

JII to be admitted to FTSE-250

[sllab101] 12/12/2007 18:55

Jumped ship a few months back and went in LNFT no stamp duty on them so a better trade.

[hawks11] 03/12/2007 16:06

Just look at the chart, there are few shares to compare with JII and those will not be in the relatively safe selection the Trust has selected.

[douggy b] 28/11/2007 18:35

I'd hardly call growth of 10%+ as slow.

[utsushi] 21/11/2007 10:56

I think these emerging markets will fall along way..growth is slow, and the markets have risen too fast..

[apetley] 30/10/2007 05:23

Hi I have heard that JP Morgan has just launced a new Indian Infrastructure fund.
Can't find any other info. Has anyone else heard anything such as if you will have to buy into the fund or if it will also be available as stock?
I am very interested as I believe if India really does want to grow at 10 percent p.a. then the investment in their own infrastructure has to be increased substantially, thus the potential for this fund looks extremely promising.
Andy