Our trips to India are focused on acquiring insight that is unattainable through company management meetings or financial reports. We visit India 4-6 times a year, yet we very rarely meet management teams or attend broker conferences there because our corporate access in London is excellent. Instead, our trips focus on building a feel for activity levels on the ground: for example, we visit manufacturing plants of companies we hold, or we meet dealers and distributors of competitor companies, and we talk to consumers, government officials and unlisted companies.
On our most recent trip in August 2017, we spent a week travelling across the length of the country, from Punjab and New Delhi in the North, to Mumbai in the West, to Coimbatore in the South. Some of the meetings were focused on viewing manufacturing facilities of our portfolio companies and visiting branches of service providers. In New Delhi, we met senior government officials across various departments like highways, aviation, agriculture and skill development. We witnessed first-hand the various structural reforms being taken by the Modi government and were positively surprised at the high energy levels across most officers.
The Invest India initiative spans multiple sectors with a value of around $80 billion
One of the most exciting meetings was with ‘Invest India’. The primary role of this small and dynamic, 30-member team of ex-bankers and consultants is to act as a bridge between international investors and government officials, thus ensuring smooth project planning and implementation. This is an initiative spanning multiple sectors and to a value of ~$80bn. Most team members have left their profitable private sector jobs in order to work with the government.
The other department where we saw a lot of activity was agriculture, the backbone of the Indian economy. Having been unchanged for decades, the government is in the midst of revamping the way farmers sell their produce to traders. This reform will reduce information asymmetry on prices, which currently generates supernormal profits for middlemen, and should thus ensure fair pricing for farmers. Elsewhere, plans to improve the current toll revenues structure were well underway in the highways department.
Important legal information
This marketing material is issued by Pictet Asset Management (Europe) S.A.. It is neither directed to, nor intended for distribution or use by, any person or entity who is a citizen or resident of, or domiciled or located in, any locality, state, country or jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. The latest version of the fund‘s prospectus, Pre-Contractual Template (PCT) when applicable, Key Information Document (KID), annual and semi-annual reports must be read before investing. They are available free of charge in English on www.assetmanagement.pictet or in paper copy at Pictet Asset Management (Europe) S.A., 6B, rue du Fort Niedergruenewald, L-2226 Luxembourg, or at the office of the fund local agent, distributor or centralizing agent if any.
The KID is also available in the local language of each country where the compartment is registered. The prospectus, the PCT when applicable, and the annual and semi-annual reports may also be available in other languages, please refer to the website for other available languages. Only the latest version of these documents may be relied upon as the basis for investment decisions.
The summary of investor rights (in English and in the different languages of our website) is available here and at www.assetmanagement.pictet under the heading "Resources", at the bottom of the page.
The list of countries where the fund is registered can be obtained at all times from Pictet Asset Management (Europe) S.A., which may decide to terminate the arrangements made for the marketing of the fund or compartments of the fund in any given country.
The information and data presented in this document are not to be considered as an offer or solicitation to buy, sell or subscribe to any securities or financial instruments or services.
Information, opinions and estimates contained in this document reflect a judgment at the original date of publication and are subject to change without notice. The management company has not taken any steps to ensure that the securities referred to in this document are suitable for any particular investor and this document is not to be relied upon in substitution for the exercise of independent judgment. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Before making any investment decision, investors are recommended to ascertain if this investment is suitable for them in light of their financial knowledge and experience, investment goals and financial situation, or to obtain specific advice from an industry professional.
The value and income of any of the securities or financial instruments mentioned in this document may fall as well as rise and, as a consequence, investors may receive back less than originally invested.
The investment guidelines are internal guidelines which are subject to change at any time and without any notice within the limits of the fund's prospectus. The mentioned financial instruments are provided for illustrative purposes only and shall not be considered as a direct offering, investment recommendation or investment advice. Reference to a specific security is not a recommendation to buy or sell that security. Effective allocations are subject to change and may have changed since the date of the marketing material.
Past performance is not a guarantee or a reliable indicator of future performance. Performance data does not include the commissions and fees charged at the time of subscribing for or redeeming shares.
Any index data referenced herein remains the property of the Data Vendor. Data Vendor Disclaimers are available on assetmanagement.pictet in the “Resources” section of the footer. This document is a marketing communication issued by Pictet Asset Management and is not in scope for any MiFID II/MiFIR requirements specifically related to investment research. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any products or services offered or distributed by Pictet Asset Management.
Pictet AM has not acquired any rights or license to reproduce the trademarks, logos or images set out in this document except that it holds the rights to use any entity of the Pictet group trademarks. For illustrative purposes only.