Our investment approach
Overview
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12%
10%
4%
14%
Most populous nation on earth
With favourable demographics
On track to become the third largest economy by 2027
(Source: CIA Factbook, Jan 2024)
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Superior forward earnings growth*
Source: Jupiter.
Workflow
Jupiter
INDIA SELECT
“India is an incredibly exciting market to invest in. Not only does it offer investors access to one of the fastest growing economies on the planet, but it’s also broad and deep, with over 5000 listed companies, and almost 500 companies with market caps north of $1 billion.”
Avinash Vazirani & Colin Croft, Investment Managers, and Leighton Riley, Investment Director
Talking factsheet
Leighton Riley gives an overview of Jupiter’s India Select strategy, how the investment process works, and how the team seek to generate alpha.
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The fund aims to provide a return, net of fees, higher than that provided by the MSCI India Index over the long term (at least five years). Avinash and Colin focus on achieving long term capital growth through investments primarily in Indian companies.
Unconstrained by benchmark, style or market cap, Avinash and Colin follow a growth at reasonable prices philosophy by seeking to invest in best-in class companies.
OUR INVESTMENT APPROACH
Investment process
Idea generation
Bottom-up, “Growth at a Reasonable Price” approach
A diversified, all-caps portfolio
The fund follows an unconstrained approach with investments across sectors and market capitalisations. The stocks in the portfolio are selected on the basis of well-priced quality, low balance-sheet risk, operational efficiency and cash flow generation.
Meet the team
Talking factsheet
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Quantitative screening
Broker research
Structural trends
Country visits
Company meetings
Well-priced quality
Low balance-sheet risk
Operational efficiency
Cash flow generation
Portfolio Conviction-led diversified c. 60–80 stocks
Source: Jupiter. All metrics are fund manager limits and not fund limits.
60–80 best ideas
Balance sheet liabilities matched by expected cash flows
Efficient use of capital in context of price paid
Earnings backed by cash flows
Earnings results
Thematic ideas
Sell side analysts
Company meetings
Quant screen
Indian stock market
~ 4,700 stocks
Radar screen 200–300 stocks
Watch list 10–20 stocks
Shortlist 5–10 stocks
PORTFOLIO
IPOs
Visiting India
Favourable changes in management or industry dynamics
Earnings underestimated by street
Valuation attractive vs. peers
Liquidity sufficient for position size
677.2
580.6
238.2
Over 20 years, the MSCI India outperformed the S&P 500 by 97pp in USD terms
The Indian market has outperformed other major markets
Past performance is no indication of current or future performance. Source: Bloomberg, as at 29.02.24.
*Two-years forward EPS growth. Source: CLSA, January 2024 (FY26 over FY24).
India has strong growth fundamentals
WHY INDIA
11%
MSCI ACWI
MSCI EM
China
USA
India
Why India
The South Asian country is the next emerging giant -like China in the 2000s, or Japan in the 1960s. With the country poised to become the world’s third largest economy in the next few years, we think no other country offers this combination of scale, governance and high-visibility growth. The long-term investment case for India is driven by a host of factors including domestic consumption, favourable demographics, technology, and financial inclusion.
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The Award listed here should not be taken as a recommendation.
Avinash Vazirani & Colin Croft, Investment Managers, and Leighton Riley, Investment Director
“India is an incredibly exciting market to invest in. Not only does it offer investors access to one of the fastest growing economies on the planet, but it’s also broad and deep, with over 5000 listed companies, and almost 500 companies with market caps north of $1 billion.”
Jupiter
INDIA SELECT