Goldman Sachs Asset Management
Notwithstanding the ground-shaking events in the global theatre, India experienced something of a revolution of its own at home, which included parliamentary approval of a landmark goods and services tax reform and a surprise late-year decision to demonetise smaller notes to crackdown on the shadow economy.
After joining global markets for the early year slump, the Sensex rallied 25.8% between the trough and peak, driven by GST reform and ‘normal’ southwest monsoon season. But worries over the impact that a steeper rate path could have on currency risks, coupled with a surprise Trump victory and sudden demonetisation, sent markets south to close the year at +3% and +0.5% in dollar and rupee terms, respectively.
India’s equity market is not a single-year story, however. Investors who have been riding the bandwagon since Modi was named as the BJP’s candidate prime minister have registered 47.9% to date. For an economy of India’s heft, the lag between when markets implement and price new policy can be significant. The positive effects of demonetisation, in fact, are already becoming visible, with a significant increase in deposit inflows and a surge in the usage of electronic wallets and other digital money transfer or payment methods.
Private banks in Asia, for the second consecutive year, have decided to entrust this longterm responsibility to Goldman Sachs Asset Management (GSAM). In addition to its consistent India equity performance and robust bottom-up capabilities – over 80% of performance is attributed to stock selection – GSAM continues to add client-oriented value, including access to proprietary research, real-time market insights and customised workshops. GSAM has been chosen as this year’s Best Fund Provider – India Equity.