UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: | 811-08266 |
Exact name of registrant as specified in charter: | The India Fund, Inc. |
Address of principal executive offices: | 1900 Market Street, Suite 200 |
Philadelphia, PA 19103 | |
Name and address of agent for service: | Ms. Sharon Ferrari |
abrdn Inc. | |
1900 Market Street, Suite 200 | |
Philadelphia, PA 19103 | |
Registrant’s telephone number, including area code: | 800-522-5465 |
Date of fiscal year end: | December 31 |
Date of reporting period: | June 30, 2023 |
Item 1 - Reports to Stockholders.
(a) A copy of the report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 (the “1940 Act”) is filed herewith.
NAV2,3 | 8.20% |
Market Price2 | 18.16% |
MSCI India Index (Net Daily Total Return)4 | 5.11% |
NAV | Closing Market Price | Premium(+)/ Discount(-) | |
6/30/2023 | $16.72 | $16.60 | -0.72% |
12/31/2022 | $16.29 | $14.81 | -9.09% |
1 | Past performance is no guarantee of future results. Investment returns and principal value will fluctuate and shares, when sold, may be worth more or less than original cost. Current performance may be lower or higher than the performance quoted. NAV return data include investment management fees, custodial charges and administrative fees (such as Director and legal fees) and assumes the reinvestment of all distributions. |
2 | Assuming the reinvestment of dividends and distributions. |
3 | The Fund’s total return is based on the reported NAV for each financial reporting period end and may differ from what is reported on the Financial Highlights due to financial statement rounding or adjustments. |
4 | The MSCI India Index (Net Daily Total Return) is designed to measure the performance of the large and mid-cap segments of the Indian market. With 113 constituents, the index covers approximately 85% of the Indian equity universe. The Index is calculated net of withholding taxes, to which the Fund is generally subject. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. Index performance is not an indication of the performance of the Fund itself. For more information about Fund performance, please visit http://www.abrdnifn.com. |
1 |
• | Visit: https://www.abrdn.com/en-us/cefinvestorcenter |
• | Email: Investor.Relations@abrdn.com; or |
• | Call: 1-800-522-5465 (toll free in the U.S.). |
Alan Goodson
President
2 |
6 Months | 1 Year | 3 Years | 5 Years | 10 Years | |
Net Asset Value (NAV) | 8.20% | 12.69% | 13.25% | 5.08% | 9.28% |
Market Price | 18.16% | 21.84% | 18.32% | 7.62% | 10.94% |
MSCI India Index (Net Daily Total Return) | 5.11% | 14.15% | 19.33% | 8.76% | 8.87% |
3 |
Sectors | |
Financials | 31.6% |
Banks | 18.8% |
Financial Services | 7.6% |
Insurance | 5.2% |
Consumer Staples | 13.1% |
Industrials | 8.3% |
Information Technology | 8.1% |
Consumer Discretionary | 8.0% |
Materials | 7.7% |
Health Care | 7.4% |
Communication Services | 6.8% |
Utilities | 5.3% |
Real Estate | 3.9% |
Energy | 2.8% |
Short-Term Investment | 0.1% |
Liabilities in Excess of Other Assets | (3.1%) |
100.0% |
Top Ten Holdings | |
ICICI Bank Ltd. | 8.3% |
Hindustan Unilever Ltd. | 6.9% |
Housing Development Finance Corp. Ltd. | 6.8% |
UltraTech Cement Ltd. | 4.6% |
Infosys Ltd. | 4.6% |
Bharti Airtel Ltd. | 4.6% |
Power Grid Corp. of India Ltd. | 4.1% |
SBI Life Insurance Co. Ltd. | 3.8% |
Kotak Mahindra Bank Ltd. | 3.6% |
HDFC Bank Ltd. | 3.6% |
4 |
Shares | Value | ||
COMMON STOCKS—103.0% | |||
INDIA—103.0% | |||
Communication Services—6.8% | |||
Affle India Ltd.(a) | 386,766 | $ 5,153,737 | |
Bharti Airtel Ltd. | 2,135,010 | 22,934,150 | |
Info Edge India Ltd. | 113,200 | 6,202,494 | |
34,290,381 | |||
Consumer Discretionary—8.0% | |||
Mahindra & Mahindra Ltd. | 746,136 | 13,278,762 | |
Maruti Suzuki India Ltd. | 129,552 | 15,478,357 | |
Titan Co. Ltd. | 299,882 | 11,192,880 | |
39,949,999 | |||
Consumer Staples—13.1% | |||
Hindustan Unilever Ltd. | 1,054,872 | 34,461,963 | |
ITC Ltd. | 2,708,277 | 14,930,176 | |
Nestle India Ltd. | 37,500 | 10,491,684 | |
Tata Consumer Products Ltd. | 550,000 | 5,778,152 | |
65,661,975 | |||
Energy—2.8% | |||
Aegis Logistics Ltd. | 3,595,288 | 14,197,331 | |
Financials—31.6% | |||
Aptus Value Housing Finance India Ltd. | 1,423,402 | 4,319,913 | |
Axis Bank Ltd. | 1,378,855 | 16,615,001 | |
HDFC Bank Ltd. | 866,492 | 17,975,267 | |
Housing Development Finance Corp. Ltd. | 990,188 | 34,143,585 | |
ICICI Bank Ltd. | 3,647,684 | 41,735,472 | |
Kotak Mahindra Bank Ltd. | 799,294 | 17,992,200 | |
PB Fintech Ltd.(a) | 829,965 | 7,064,925 | |
SBI Life Insurance Co. Ltd.(b) | 1,182,396 | 18,907,901 | |
158,754,264 | |||
Health Care—7.4% | |||
Fortis Healthcare Ltd.(a) | 3,288,200 | 12,667,559 | |
JB Chemicals & Pharmaceuticals Ltd. | 177,396 | 5,130,098 | |
Syngene International Ltd.(b) | 1,166,661 | 10,884,551 | |
Vijaya Diagnostic Centre Pvt Ltd. | 1,501,100 | 8,669,549 | |
37,351,757 | |||
Industrials—8.3% | |||
ABB India Ltd. | 171,418 | 9,250,500 | |
Container Corp. Of India Ltd. | 780,015 | 6,296,370 | |
KEI Industries Ltd. | 222,500 | 6,284,086 | |
Larsen & Toubro Ltd. | 498,407 | 15,067,229 | |
Siemens Ltd. | 99,300 | 4,574,938 | |
41,473,123 |
Shares | Value | ||
Information Technology—8.1% | |||
Infosys Ltd. | 1,409,444 | $ 22,997,260 | |
Tata Consultancy Services Ltd. | 438,538 | 17,699,484 | |
40,696,744 | |||
Materials—7.7% | |||
Asian Paints Ltd. | 206,242 | 8,463,925 | |
Hindalco Industries Ltd. | 1,335,673 | 6,886,969 | |
UltraTech Cement Ltd. | 230,871 | 23,360,095 | |
38,710,989 | |||
Real Estate—3.9% | |||
Godrej Properties Ltd.(a) | 554,915 | 10,646,502 | |
Prestige Estates Projects Ltd. | 1,269,469 | 8,890,409 | |
19,536,911 | |||
Utilities—5.3% | |||
Power Grid Corp. of India Ltd. | 6,634,184 | 20,588,445 | |
ReNew Energy Global PLC, Class A(a) | 1,099,812 | 6,026,970 | |
26,615,415 | |||
Total India | 517,238,889 | ||
Total Common Stocks | 517,238,889 | ||
SHORT-TERM INVESTMENT—0.1% | |||
State Street Institutional U.S. Government Money Market Fund, Premier Class, 5.03%(c) | 755,365 | 755,365 | |
Total Short-Term Investment | 755,365 | ||
Total Investments (Cost $324,365,656)—103.1% | 517,994,254 | ||
Liabilities in Excess of Other Assets(d)—(3.1%) | (15,624,302) | ||
Net Assets—100.0% | $502,369,952 |
(a) | Non-income producing security. |
(b) | Denotes a security issued under Regulation S or Rule 144A. |
(c) | Registered investment company advised by State Street Global Advisors. The rate shown is the 7 day yield as of June 30, 2023. |
(d) | See accompanying Notes to Financial Statements for tax unrealized appreciation/(depreciation) of securities. |
PLC | Public Limited Company |
5 |
Assets | |
Investments, at value (cost $323,610,291) | $517,238,889 |
Short-term investments, at value (cost $755,365) | 755,365 |
Foreign currency, at value (cost $793,028) | 793,004 |
Interest and dividends receivable | 1,236,465 |
Prepaid expenses | 74,447 |
Total assets | 520,098,170 |
Liabilities | |
Deferred foreign capital gains tax (Note 2g) | 16,757,778 |
Investment management fees payable (Note 3) | 435,844 |
Investor relations fees payable (Note 3) | 71,996 |
Administration fees payable (Note 3) | 31,698 |
Director fees payable | 31,504 |
Other accrued expenses | 399,398 |
Total liabilities | 17,728,218 |
Net Assets | $502,369,952 |
Composition of Net Assets | |
Capital stock ($0.001 per share) (Note 5) | $30,042 |
Paid-in capital in excess of par | 347,907,513 |
Distributable earnings | 154,432,397 |
Net Assets | $502,369,952 |
Net asset value per share based on 30,042,030 shares issued and outstanding | $16.72 |
6 |
Net Investment Income | |
Investment Income: | |
Dividends and other income (net of foreign withholding taxes of $721,634) | $3,124,876 |
Total investment income | 3,124,876 |
Expenses: | |
Investment management fee (Note 3) | 2,575,675 |
Administration fee (Note 3) | 187,322 |
Custodian’s fees and expenses | 141,501 |
Directors' fees and expenses | 134,932 |
Legal fees and expenses | 94,022 |
Insurance expense | 78,775 |
Investor relations fees and expenses (Note 3) | 71,996 |
Independent auditors’ fees and expenses | 50,246 |
Reports to shareholders and proxy solicitation | 49,281 |
Transfer agent’s fees and expenses | 26,860 |
Miscellaneous | 34,443 |
Net expenses | 3,445,053 |
Net Investment Income/(Loss) | (320,177) |
Net Realized/Unrealized Gain/(Loss) from Investments and Foreign Currency Related Transactions: | |
Net realized gain/(loss) from: | |
Investment transactions (including $3,446,297 capital gains tax) | 16,530,080 |
Foreign currency transactions | 284,481 |
16,814,561 | |
Net change in unrealized appreciation/(depreciation) on: | |
Investments (including change in deferred capital gains tax of $1,906,664) | 21,442,136 |
Foreign currency translation | 26,278 |
21,468,414 | |
Net realized and unrealized gain from investments and foreign currencies | 38,282,975 |
Change in Net Assets Resulting from Operations | $37,962,798 |
7 |
For the Six-Month Period Ended June 30, 2023 (unaudited) | For the Year Ended December 31, 2022 | |
Increase/(Decrease) in Net Assets: | ||
Operations: | ||
Net investment loss | $(320,177) | $(2,263,585) |
Net realized gain from investments and foreign currency transactions | 16,814,561 | 53,391,477 |
Net change in unrealized appreciation/(depreciation) on investments and foreign currency translation | 21,468,414 | (157,422,315) |
Net increase/(decrease) in net assets resulting from operations | 37,962,798 | (106,294,423) |
Distributions to Shareholders From: | ||
Distributable earnings | (24,186,212) | (88,177,570) |
Net decrease in net assets from distributions | (24,186,212) | (88,177,570) |
Issuance of 735,879 and 2,401,576 shares of common stock, respectively due to stock distribution (Note 5) | 11,290,849 | 40,350,297 |
Change in net assets | 25,067,435 | (154,121,696) |
Net Assets: | ||
Beginning of period | 477,302,517 | 631,424,213 |
End of period | $502,369,952 | $477,302,517 |
8 |
For the Six-Month Period Ended June 30, | For the Fiscal Years Ended December 31, | |||||
2023 (unaudited) | 2022 | 2021 | 2020 | 2019 | 2018 | |
PER SHARE OPERATING PERFORMANCE(a): | ||||||
Net asset value, beginning of period | $16.29 | $23.47 | $22.99 | $22.60 | $23.84 | $29.50 |
Net investment income/(loss) | (0.01) | (0.08) | (0.12) | (0.04) | 0.03 | (0.04) |
Net realized and unrealized gains/(losses) on investments and foreign currency transactions | 1.27 | (3.79) | 3.81 | 2.38 | 1.06 | (1.25) |
Total from investment operations | 1.26 | (3.87) | 3.69 | 2.34 | 1.09 | (1.29) |
Distributions to common shareholders from: | ||||||
Net investment income | (0.82) | (1.17) | (0.09) | (1.10) | (0.01) | (0.77) |
Net realized gains | – | (2.02) | (3.12) | – | (2.32) | (3.73) |
Return of capital | – | – | – | (0.85) | – | – |
Total distributions | (0.82) | (3.19) | (3.21) | (1.95) | (2.33) | (4.50) |
Capital Share Transactions: | ||||||
Impact due to capital shares issued from stock distribution (Note 5) | (0.01) | (0.12) | – | – | – | – |
Impact due to open market repurchase policy | – | – | – | – | – | 0.13 |
Total capital share transactions | (0.01) | (0.12) | – | – | – | 0.13 |
Net asset value, end of period | $16.72 | $16.29 | $23.47 | $22.99 | $22.60 | $23.84 |
Market price, end of period | $16.60 | $14.81 | $21.10 | $19.96 | $20.13 | $20.24 |
Total Investment Return Based on(b): | ||||||
Market price | 18.16% | (15.32%) | 21.89% | 11.79% | 10.90% | (6.00%) |
Net asset value | 8.20% | (16.26%) | 17.72% | 14.69% | 5.70% | (1.94%) |
Ratio to Average Net Assets/Supplementary Data: | ||||||
Net assets, end of period (000 omitted) | $502,370 | $477,303 | $631,424 | $618,431 | $607,988 | $642,079 |
Average net assets applicable to common shareholders (000 omitted) | $472,186 | $539,220 | $651,685 | $525,841 | $623,568 | $756,480 |
Net expenses | 1.47%(c) | 1.43% | 1.35% | 1.43% | 1.35% | 1.32% |
Net Investment income (loss) | (0.14%)(c) | (0.42%) | (0.48%) | (0.20%) | 0.13% | (0.13%) |
Portfolio turnover | 15%(d) | 24% | 22% | 20% | 14% | 13% |
(a) | Based on average shares outstanding. |
(b) | Total investment return based on market value is calculated assuming that shares of the Fund’s common stock were purchased at the closing market price as of the beginning of the period, dividends, capital gains and other distributions were reinvested as provided for in the Fund’s dividend reinvestment plan and then sold at the closing market price per share on the last day of the period. The computation does not reflect any sales commission investors may incur in purchasing or selling shares of the Fund. The total investment return based on the net asset value is similarly computed except that the Fund’s net asset value is substituted for the closing market value. |
(c) | Annualized. |
(d) | Not annualized. |
9 |
June 30, 2023
10 |
June 30, 2023
Security Type | Standard Inputs |
Foreign equities utilizing a fair value factor | Depositary receipts, indices, futures, sector indices/ETFs, exchange rates, and local exchange opening and closing prices of each security. |
Investments, at Value | Level 1 – Quoted Prices | Level 2 – Other Significant Observable Inputs | Level 3 – Significant Unobservable Inputs | Total |
Assets | ||||
Investments in Securities | ||||
Common Stocks | $6,026,970 | $511,211,919 | $– | $517,238,889 |
Short-Term Investment | 755,365 | – | – | 755,365 |
Total Investments | $6,782,335 | $511,211,919 | $– | $517,994,254 |
Total Assets | $6,782,335 | $511,211,919 | $– | $517,994,254 |
11 |
June 30, 2023
12 |
June 30, 2023
Payment Date | Shares Issued |
March 31, 2023 | 397,865 |
June 30, 2023 | 338,014 |
13 |
June 30, 2023
14 |
June 30, 2023
15 |
June 30, 2023
Tax Cost of Securities | Unrealized Appreciation | Unrealized Depreciation | Net Unrealized Appreciation/ (Depreciation) |
$358,285,849 | $203,741,320 | $(44,032,915) | $159,708,405 |
16 |
Nominee | Votes For | Votes Against | Votes Abstained |
Luis F. Rubio | 19,209,091 | 751,368 | 359,438 |
Nisha Kumar | 19,264,023 | 706,537 | 349,337 |
Nominee | Votes For | Votes Against | Votes Abstained |
Jeswald W. Salacuse | 19,178,293 | 768,369 | 373,235 |
17 |
18 |
19 |
Alan Goodson
Nisha Kumar
Nancy Yao Maasbach
Luis F. Rubio
Hugh Young
7 Straits View
#23-04 Marina One East Tower
Singapore 018936
1900 Market Street, Suite 200
Philadelphia, PA 19103
One Congress Street, Suite 1
Boston, MA 02114-2016
P.O. Box 43006
Providence, RI 02940-3078
1601 Market Street
Philadelphia, PA 19103
1900 K Street N.W.
Washington D.C. 20006
1900 Market Street, Suite 200
Philadelphia, PA 19103
1-800-522-5465
Investor.Relations@abrdn.com
(b) Not applicable.
Item 2 - Code of Ethics.
This item is inapplicable to semi-annual report on Form N-CSR.
Item 3 - Audit Committee Financial Expert.
This item is inapplicable to semi-annual report on Form N-CSR.
Item 4 - Principal Accountant Fees and Services.
This item is inapplicable to semi-annual report on Form N-CSR.
Item 5 - Audit Committee of Listed Registrants.
This item is inapplicable to semi-annual report on Form N-CSR.
Item 6 - Investments.
(a) | Schedule of Investments in securities of unaffiliated issuers as of close of the reporting period is included as part of the Report to Shareholders filed under Item 1 of this Form N-CSR. |
(b) | Not applicable. |
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
This item is inapplicable to semi-annual report on Form N-CSR.
Item 8 - Portfolio Managers of Closed-End Management Investment Companies.
(a) Not applicable to semi-annual report on Form N-CSR.
(b) There has been no change, as of the date of this filing, in any of the portfolio managers identified in response to paragraph (a)(1)of this Item in the registrant’s most recently filed annual report on Form N-CSR.
Item 9 - Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
No such purchases were made by or on behalf of the Registrant during the period covered by the report.
Item 10 - Submission of Matters to a Vote of Security Holders.
During the period ended June 30, 2023, there were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Directors.
Item 11. Controls and Procedures.
(a) | The Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR 270.30a3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d15(b)). |
(b) | There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the Registrant’s last fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable.
Item 13. Exhibits.
(a)(1) | Not applicable. |
(a)(2) | The certifications of the Registrant as required by Rule 30a-2(a) under the Act are exhibits to this Form N-CSR. |
(a)(3) | Any written solicitation to purchase securities under Rule 23c-1 under the 1940 Act (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not applicable. |
(a)(4) | Change in Registrant’s independent public accountant. Not applicable. |
(b) | The certifications of the Registrant as required by Rule 30a-2(b) under the Act are exhibits to this Form N-CSR. |
(c) | A copy of the Registrant’s notices to stockholders, which accompanied distributions paid, pursuant to the Registrant’s Managed Distribution Policy since the Registrant’s last filed N-CSR, are filed herewith as Exhibits (c)(1) and (c)(2) as required by the terms of the Registrant’s SEC exemptive order. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | The India Fund, Inc. |
By (Signature and Title): | /s/ Alan Goodson | |
Alan Goodson, Principal Executive Officer |
Date: September 8, 2023
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By (Signature and Title): | /s/ Alan Goodson | |
Alan Goodson, Principal Executive Officer |
Date: September 8, 2023
By (Signature and Title): | /s/ Sharon Ferrari | |
Sharon Ferrari, Principal Financial Officer |
Date: September 8, 2023