First State India Subcontinent playing middle-class theme

Tohani highlights emerging middle class and infrastructure as themes on portfolio, focusing on undervalued stocks in increasingly expensive space

Since launching, the First State Indian Subcontinent fund has focused on finding undervalued stocks in what has become an increasingly expensive market. The £35m portfolio is headed up by Vijay Tohani, who seeks out unloved stocks that offer good value for his concentrated portfolio of 40 to 50 stocks. Over the year to end May, the fund has underperformed the MSCI India benchmark, with 7.5% growth against 9%, although is first quartile in the disparate specialist peer group. Tohani said the market has been weighed down by rising oil prices, increasing inflation, a domestic liquidity s...