Page 7 - DIY Investor Magazine Issue 24
P. 7

        A similar theme is developing in banking, where those in strong positions in retail continue to deliver higher than industry growth. India’s biggest retail lender, HDFC Bank, is benefiting from structural consolidation in the housing and real estate sector.
It is also taking advantage of opportunities in the corporate lending space, now that there are fewer banks willing or able to compete.
This environment has been good for the trust in terms of positions.
The trust is overweight in consumer staples, banks and life insurance and we’ve been adding to real estate, but
we’re still very selective in infrastructure and businesses dependent on the corporate cycle.
All but one of our holdings are private sector enterprises. We have minimal exposure to the index-heavy energy sector as we don’t hold Reliance Industries, which has diversified out of its core petrochemicals and refinery businesses to invest heavily in the telecoms and retail sectors.
Instead we will continue to focus on the quality of management teams and look for companies with strong balance sheets and that have a good track record of navigating difficult cycles.
7 DIY Investor Magazine | Apr 2020

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