The rationale provided on the website and in the annual report is about local expertise. I guess there is also consideration given to the easing of regulatory and cost burdens because the assets are held locally and not by a foreign investor.
I just found that JPMorgan Indian Investment Trust does have a Mauritius based subsidiary, which negates most of my previous comment. From the INVESTOR DISCLOSURE DOCUMENT https://am.jpmorgan.com/blob-gim/1383215511677/83456/JPM%20Indian%20April%202018.pdf
The Company owns the whole of the issued share capital of JPMorgan Indian Investment
Company (Mauritius) Limited, which is registered in Mauritius (collectively the Group)."
It's odd how I couldn't find that until seconds after I posted that I couldn't find it.
Now I'm wondering why they need to invest through a subsidiary in Mauritius. I had a quick look into JPMorgan Indian Investment Trust and I couldn't find anything about them investing through a subsidiary, or having any dealings in Mauritius or other such territory. But, I don't know if or where they have to disclose such things.
From "Retail investment funds in Mauritius: regulatory overview" https://uk.practicallaw.thomsonreuters.com/2-503-9464?transitionType=Default&contextData=(sc.Default)&firstPage=true&bhcp=1
"Mauritius has consistently strengthened its position as an international financial centre and a domicile for investment funds. Investment funds are usually structured as either retail or non-retail funds."
That's reassuring, but when I googled "mauritius fraud" the first result has "4 Mar 2018 - Mauritius said it has taken cognizance of reports about the purported fraud allegations with regards to Punjab National Bank, Nirav Modi and Mehul Choksi.".
I've decided I don't know enough to give a useful opinion about whether or not the Mauritius subsidiary should matter to investors, but I also don't know enough to buy IGC with confidence.
"India Capital Growth Fund Limited is a closed ended investment company registered and incorporated in Guernsey. The Company was established to take advantage of long term investment opportunities in companies based in India. Investments will predominantly be made into listed companies through a subsidiary in Mauritius."
So the indirect investment is through a directly owned subsidiary company.
I've had a very quick look into the chance of IGC being fraudulent, thinking they were on AIM, but they aren't, they moved to the main market in January. It doesn't rule out fraud, as some former Tesco execs are going to get a retrial (the first was abandoned after a defendant had a heart attack). Also, the 2017 accounts got a clean audit from Deloitte Guernsey. The big auditors aren't foolproof, e.g. PwC and Tesco. Still, using a big audit firm and moving to the main market increases the chance of detection, so maybe fraudsters are unlikely to do that. Famous fraudster Madoff's audits were signed off by "Friehling & Horowitz, a little-known accounting firm in New City, New York", according to Wikipedia.
There's not much cheer atm. The FTSE is down around 4% from its high point in January. The gbp has strengthened against to the dollar to $1.42 which has negated increases in gold and silver and the NAV for IGC has fallen to 118p.
This looks like a buying opportunity but the market has the feel of the "falling knife" so I will wait a while longer.
Tipped on this site by fund managers 21/09/17, and fancied by Marksman looking for a place to put cash.
I saw a lunch date of 22 DEC 15 , so bit odd to find this link may 2006 ?
Guernsey registered... 1.79% annual charge, i can not see extra performance charge ?
Discount 8.16% . 12 mth average 18.23%.
Year high 105p low 69.5p
I feel maybe this time it is a little bit different in that the fund size is such that it is perhaps taken a little bit more seriously and the a share price over £1. I hope the discount (and I accept a discount) will find a new range of -5% to -12% and am hoping we may still find a little bit more in the share price yet.
Well someone is buying this investment trust heavily as the SP has been on a tear. The discount is now down to 10%. If it keeps narrowing I may start to sell some as historically it ebbs and flows between 10 and 20%.
Having held my first shares for nearly 10 years and I'm back in profit on those today! Wow......perhaps it will keep moving up with share price now above £1, India doing well, a big discount to perhaps reduce further.....I do hope so......anyone else watching......
I should say I have held these in 2 tranches as lower posts show (should bought in 2007) I was underwater on early purchases but was tempted back in a year ago and my comments are on the recent performance and not the long term performance now blaming myself for my previous poor timing! Hopefully, the discount should now start to unwind in our favour. Anyway we will see
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