November 2012

It was a good month for equities with the market discounting reforms to go through in the winter session. FII’s committed large amounts of money in the capital market whereas domestic institutions were net sellers once again.

In our PMS we benefitted by being focused on high quality businesses as a result of which our portfolio’s have delivered 6-8% absolute return in the month of November 2012. Both India Equity and India Dedicated have delivered returns in excess of 35% in the last one year. Such performance is significant when we keep in mind that this was the 10th month in a row where we have not made any change in the portfolios.

As an investor we were delighted by one of our holdings - Glaxo Smithkline Consumer. The parent company came forward and made an open offer of $1 Billion which was at 30% premium to market price. This clearly demonstrates the confidence the parent company has in its Indian arm which in effect shows the quality of businesses owned by us.