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Kashmir dispute, religious strife ‘risks’ to investment in India: Foreign funds

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Kashmir dispute, religious strife ‘risks’ to investment in India: Foreign funds
Top foreign funds -- including JP Morgan, HDFC Fund, Cognizant, Indian Fund and others -- have flagged ‘persisting religious conflicts’ and the ‘Kashmir dispute’ as potential risks to their investments in India. Similar concerns have been flagged by a few funds regarding Pakistan also.
Updated: May 22, 2017 20:32 IST


A number of large foreign funds, managing trillions of dollars of investor assets globally, have flagged ‘persisting religious conflicts’ and ‘Kashmir dispute’ as potential risks to their investments in India, saying such “tensions” could destabilise the Indian economy.

JPMorgan, one of the largest wealth managers in the world with asset under management of over $1.7 trillion, alone has flagged these “religious and border disputes” regarding investments in India in at least eight regulatory filings made by its various funds so far this month.

Besides, a number of other funds, including the India Fund managed by Aberdeen Asset Management, which has more than $380 billion of assets under management, have listed similar “risks” in their regulatory filings made with the US Securities and Exchange Commission (SEC).

Other such funds include Eaton Vance Greater India Fund, Mathews International Funds, Alps Funds (Financial Investors Trust), Franklin Templeton International Trust, Global X Funds and iShares Trust (managed by BlackRock Fund Advisors).

Besides, Wasatch Funds Trust, Arthur J Gallagher & Co and Causeway Capital Management Trust have also flagged similar concerns.

When contacted, senior officials at some of these funds and other experts said such ‘risk factors’ follow a generic pattern in regulatory filings by various companies and investors and not much should be read into them, but they admitted that religious conflicts and Kashmir dispute remain an overhang.

They refused to be named citing regulatory issues and due to “sensitivities” involved in such matters.

While cross-border tension continues in the Kashmir region, the government has been trying to send across a positive message to the world and some saw hosting of the GST Council meeting in Srinagar last week as a step in that direction.

In a filing made by JPMorgan Trust II on May 18, the fund said, “Political and economic structures in India are undergoing significant evolution and rapid development, and may lack the social, political and economic stability characteristic of the US.”

It further said, “Religious and border disputes persist in India. Moreover, India has from time to time experienced civil unrest and hostilities with neighbouring countries such as Pakistan. The Indian government has confronted separatist movements in several Indian states.

“The longstanding dispute with Pakistan over the bordering Indian state of Jammu and Kashmir, a majority of whose population is Muslim, remains unresolved. If the Indian government is unable to control the violence and disruption associated with these tensions, the results could destabilise the economy and consequently, adversely affect the Fund’s investments.”



“Political and economic structures in India are undergoing significant evolution and rapid development, and may lack the social, political and economic stability characteristic of the US.” -- JPMorgan Trust II


Similar filings have been made this month by funds like JPMorgan Trust I, JP Morgan Exchange Traded Fund Trust, JP Morgan Mutual Fund Investment Trust and JP Morgan Insurance Trust.

A few US-listed Indian and India-focused companies have also made similar observations in their filings during 2017. These include HDFC Bank, Cognizant, Cancer Genetics, WNS Holdings, Genpact and MoneyOnMobile Inc.

In the ‘risk factors’ listed in one of its regulatory filings, HDFC Bank said the risks to its financial results would include “instability or uncertainty in India and the other countries... caused by any factor including terrorist attacks in India, the US or elsewhere...”

The other risk factors listed by HDFC Bank include “tensions between India and Pakistan related to the Kashmir region or between India and China, military armament or social unrest in any part of India”, among various other political and economic risks. Political system stable in India, but religious conflicts remain overhang.

In its SEC filing, Eaton Vance Greater India Fund said Indian population is comprised of diverse religious and linguistic groups, but despite this diversity, India has “one of the more stable political systems among the world’s developing nations”.

However, periodic sectarian conflict among India’s religious and linguistic groups could adversely affect Indian businesses, temporarily halting work of institutions, or undermine or distract from government efforts to liberalise the Indian economy”.

In its filing, Matthews International Funds also said that religious and border disputes persist in India and escalating tensions between India and Pakistan could impact the broader region.

MoneyMobile also talked abut the Kashmir dispute remaining unresolved and the potential risks to its businesses.

“Also, India has seen an increase in politically motivated insurgencies and a fairly active communist following. Any hostilities or civil unrest could adversely influence the Indian economy and, as a result, negatively affect businesses,” it added.

Cancer Genetics said a portion of its assets and operations are in India and we are subject to regulatory, economic, political and other uncertainties in India.

The India Fund said India’s economic development has exceeded forecast with faster growth than China’s, but “heightened tensions with Pakistan over Kashmir, Trump’s US presidential election victory and the Fed’s increased hawkishness for 2017 also roiled investor sentiment”.

IT major Cognizant, which has a substantial portion of its assets and operations in India, said in one of its SEC filings that the potential for hostilities between India and Pakistan “has been high in light of tensions related to recent terrorist incidents in India and the unsettled nature of the regional geopolitical environment, including events in and related to Afghanistan, Iraq and Syria”.

Genpact said Southern Asia has, from time to time, experienced instances of civil unrest and hostilities among neighbouring countries, including India and Pakistan.

Alps Funds also talked about persisting religious and border disputes including on Kashmir issue and said these factors are extremely difficult, if not impossible, to predict and take into account with respect to the Fund’s investments.

Franklin India Growth Fund said its investments are subject to “much greater risks of adverse events that occur in India and the surrounding regions, and may experience greater volatility than a fund that is more broadly diversified geographically”.

http://www.hindustantimes.com/busin...reign-funds/story-bforBRmcRkPXUXcKNNndFK.html
 

randomradio

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It's okay, they can all sit out if they want to. Their loss.

https://www.bloombergquint.com/mark...et-base-may-hit-rs-20-lakh-crore-mark-in-june
India’s mutual fund industry is likely to hit the Rs 20 lakh crore mark in assets under management (AUM) next month, backed by a booming stock market and increasing interest from retail investors.

Moreover, investment by mutual fund players in the equity market has surpassed that of foreign institutional investors (FIIs), according to data from the Association of Mutual Funds in India (AMFI).

The AUM of the mutual fund industry grew 9.8 percent to Rs 19.26 lakh crore in April, from Rs 17.54 lakh crore in March, and it was likely to cross the Rs 20 lakh crore milestone in the next month itself if the assets grow by another 4 percent, according to AMFI data collated by rating agency Icra.

Of the Rs 1.5 lakh crore that investors pumped in different categories in April, liquid, income, and equity funds, including equity-linked savings schemes (ELSS), saw the highest inflows, it said.

The three categories saw net inflows of Rs 0.99 lakh crore, Rs 0.35 lakh crore and Rs 0.09 lakh crore, respectively.

Equity funds also got support from the broader market rally as the BSE Sensex hit an all-time high of 30,000 in April.

Equity funds (including ELSS) witnessed net inflows of Rs 9,429 crore in April, an increase of 14.8 percent month-on-month (MoM) and 112.5 per cent year-on-year (YoY). This comes on top of over Rs 70,000 crore investments in equities in 2016-17.

In April, net inflows via the systematic investment plan (SIP) route hit an all-time high of Rs 4,200 crore, the data showed.

According to AMFI, the industry added around 6.26 lakh SIP accounts every month on an average during the last fiscal with an average ticket size of Rs 3,660 per account.

MFs pumped in Rs 54,912 crore into the country’s equity market, as against Rs 52,977 crore by FIIs or foreign portfolio investors (FPIs) during the year gone by.

The trend continued in April where MFs' quantum of net investment in equities stood at Rs 9,918 crore compared with Rs 2,417 crore by FIIs or FPIs, the report said.

Total folio count at April-end grew 1.3 percent to 5.61 crore from March, according to Securities and Exchange Board of India (SEBI) data.

Folios are numbers designated for individual investor accounts, though one investor can have multiple accounts.

The growth was primarily on the back of 5.85 lakh new folios added to the equity category (including ELSS) and 1.5 lakh new folios to the balanced category.

Exchange-traded funds were the only category to witness a decline of 20,000 folios, which could be due to the category’s underperformance compared with the actively-managed funds, it added.

In the last 12 months, assets from beyond top 15 cities, or B15 towns, have grown 43.9 per cent due to investor-friendly initiatives by the regulator and awareness campaigns by asset management companies (AMCs).

The B15 assets grew Rs 98,525 crore to Rs 3.23 lakh crore in April from Rs 2.24 lakh crore a year ago.

Currently, B15 towns account for 16.9 percent of the total assets of the industry. However, the share of direct plans in B15 towns is only 22.3 percent, as against 45.6 percent in top 15 cities.
 

Nexus

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Only kashmir, other parts of India such as Gujarat, South, Punjab-Haryana are receiving huge amount of investment since reformation of our economic policies in 1991.
 

Echo_419

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Kashmir dispute, religious strife ‘risks’ to investment in India: Foreign funds
Top foreign funds -- including JP Morgan, HDFC Fund, Cognizant, Indian Fund and others -- have flagged ‘persisting religious conflicts’ and the ‘Kashmir dispute’ as potential risks to their investments in India. Similar concerns have been flagged by a few funds regarding Pakistan also.
Updated: May 22, 2017 20:32 IST


A number of large foreign funds, managing trillions of dollars of investor assets globally, have flagged ‘persisting religious conflicts’ and ‘Kashmir dispute’ as potential risks to their investments in India, saying such “tensions” could destabilise the Indian economy.

JPMorgan, one of the largest wealth managers in the world with asset under management of over $1.7 trillion, alone has flagged these “religious and border disputes” regarding investments in India in at least eight regulatory filings made by its various funds so far this month.

Besides, a number of other funds, including the India Fund managed by Aberdeen Asset Management, which has more than $380 billion of assets under management, have listed similar “risks” in their regulatory filings made with the US Securities and Exchange Commission (SEC).

Other such funds include Eaton Vance Greater India Fund, Mathews International Funds, Alps Funds (Financial Investors Trust), Franklin Templeton International Trust, Global X Funds and iShares Trust (managed by BlackRock Fund Advisors).

Besides, Wasatch Funds Trust, Arthur J Gallagher & Co and Causeway Capital Management Trust have also flagged similar concerns.

When contacted, senior officials at some of these funds and other experts said such ‘risk factors’ follow a generic pattern in regulatory filings by various companies and investors and not much should be read into them, but they admitted that religious conflicts and Kashmir dispute remain an overhang.

They refused to be named citing regulatory issues and due to “sensitivities” involved in such matters.

While cross-border tension continues in the Kashmir region, the government has been trying to send across a positive message to the world and some saw hosting of the GST Council meeting in Srinagar last week as a step in that direction.

In a filing made by JPMorgan Trust II on May 18, the fund said, “Political and economic structures in India are undergoing significant evolution and rapid development, and may lack the social, political and economic stability characteristic of the US.”

It further said, “Religious and border disputes persist in India. Moreover, India has from time to time experienced civil unrest and hostilities with neighbouring countries such as Pakistan. The Indian government has confronted separatist movements in several Indian states.

“The longstanding dispute with Pakistan over the bordering Indian state of Jammu and Kashmir, a majority of whose population is Muslim, remains unresolved. If the Indian government is unable to control the violence and disruption associated with these tensions, the results could destabilise the economy and consequently, adversely affect the Fund’s investments.”



“Political and economic structures in India are undergoing significant evolution and rapid development, and may lack the social, political and economic stability characteristic of the US.” -- JPMorgan Trust II


Similar filings have been made this month by funds like JPMorgan Trust I, JP Morgan Exchange Traded Fund Trust, JP Morgan Mutual Fund Investment Trust and JP Morgan Insurance Trust.

A few US-listed Indian and India-focused companies have also made similar observations in their filings during 2017. These include HDFC Bank, Cognizant, Cancer Genetics, WNS Holdings, Genpact and MoneyOnMobile Inc.

In the ‘risk factors’ listed in one of its regulatory filings, HDFC Bank said the risks to its financial results would include “instability or uncertainty in India and the other countries... caused by any factor including terrorist attacks in India, the US or elsewhere...”

The other risk factors listed by HDFC Bank include “tensions between India and Pakistan related to the Kashmir region or between India and China, military armament or social unrest in any part of India”, among various other political and economic risks. Political system stable in India, but religious conflicts remain overhang.

In its SEC filing, Eaton Vance Greater India Fund said Indian population is comprised of diverse religious and linguistic groups, but despite this diversity, India has “one of the more stable political systems among the world’s developing nations”.

However, periodic sectarian conflict among India’s religious and linguistic groups could adversely affect Indian businesses, temporarily halting work of institutions, or undermine or distract from government efforts to liberalise the Indian economy”.

In its filing, Matthews International Funds also said that religious and border disputes persist in India and escalating tensions between India and Pakistan could impact the broader region.

MoneyMobile also talked abut the Kashmir dispute remaining unresolved and the potential risks to its businesses.

“Also, India has seen an increase in politically motivated insurgencies and a fairly active communist following. Any hostilities or civil unrest could adversely influence the Indian economy and, as a result, negatively affect businesses,” it added.

Cancer Genetics said a portion of its assets and operations are in India and we are subject to regulatory, economic, political and other uncertainties in India.

The India Fund said India’s economic development has exceeded forecast with faster growth than China’s, but “heightened tensions with Pakistan over Kashmir, Trump’s US presidential election victory and the Fed’s increased hawkishness for 2017 also roiled investor sentiment”.

IT major Cognizant, which has a substantial portion of its assets and operations in India, said in one of its SEC filings that the potential for hostilities between India and Pakistan “has been high in light of tensions related to recent terrorist incidents in India and the unsettled nature of the regional geopolitical environment, including events in and related to Afghanistan, Iraq and Syria”.

Genpact said Southern Asia has, from time to time, experienced instances of civil unrest and hostilities among neighbouring countries, including India and Pakistan.

Alps Funds also talked about persisting religious and border disputes including on Kashmir issue and said these factors are extremely difficult, if not impossible, to predict and take into account with respect to the Fund’s investments.

Franklin India Growth Fund said its investments are subject to “much greater risks of adverse events that occur in India and the surrounding regions, and may experience greater volatility than a fund that is more broadly diversified geographically”.

http://www.hindustantimes.com/busin...reign-funds/story-bforBRmcRkPXUXcKNNndFK.html
Meanwhile, FDI in India contines to grow every year
& get this Chinese investment in India will continue to grow even if we don't join OBOR
 

Contract Killer

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Will be much better if you can fix those security concerns.
We can clean this mess in just 1month just as Chinese are doing, but what to do, we are one Democratic country and our Govt is directly answerable to citizen of nation.

Plus we also have Freedom of Expression & our Supreme Court which is Guardian of it ensures that it is upheld at any cost.

So any hard handedness results to huge protest by these Librals/ Seculars/ Leftists/ Prestitutes etc.
 

beijingwalker

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We can clean this mess in just 1month just as Chinese are doing, but what to do, we are one Democratic country and our Govt is directly answerable to citizen of nation.

Plus we also have Freedom of Expression & our Supreme Court which is Guardian of it ensures that it is upheld at any cost.
Rule of law means the law should be executed by the related departments of the government, not mobsters or vigilantes who take the law into their own hands.
 

Contract Killer

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Rule of law means the law should be executed by the related departments of the government, not mobsters or vigilantes who take the law into their own hands.
Problem with India is its appeasement policy. Its applicable for both side.

I am in favor of Shooting all these Mobsters, Vigilantes, Stone Pelters, Azadi Gangs on spot. Which ever side they are from, hardly matters.
 

beijingwalker

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In Kashmir case, you can't blame the whole population there being mobsters. The revolt is everywhere on everyday, probably you should not be there in the first place.
 
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Damn people, there is no need to call for killing Kashmiri. Kashmir is strategically important to India's survival but that does not mean we should kill all Kashmiri! There is a much simpler and less violent solution. Have you seen how many Kashmiri come for recruitment drive by Indian Army etc? They want to have a normal life rather than daily wrangling with army. We cannot remove army from Kashmir. The best way is to motivate them to move elsewhere in India for a better life, away from army. I mean recruitment drives for PSUs etc in Kashmir and move them en'masses all over India. Once they are settled all over, Kashmir and Aazadi will be out of sight and out of mind for them. Army can keep on fighting in Kashmir against Pakistan.

In Kashmir case, you can't blame the whole population there being mobsters. The revolt is everywhere on everyday, probably you should not be there in the first place.
Thats a lie, revolt is localized in 5 districts. There is huge anger against army in whole of the valley though.
 
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Kashmir dispute, religious strife ‘risks’ to investment in India: Foreign funds
Top foreign funds -- including JP Morgan, HDFC Fund, Cognizant, Indian Fund and others -- have flagged ‘persisting religious conflicts’ and the ‘Kashmir dispute’ as potential risks to their investments in India. Similar concerns have been flagged by a few funds regarding Pakistan also.
Updated: May 22, 2017 20:32 IST


A number of large foreign funds, managing trillions of dollars of investor assets globally, have flagged ‘persisting religious conflicts’ and ‘Kashmir dispute’ as potential risks to their investments in India, saying such “tensions” could destabilise the Indian economy.

JPMorgan, one of the largest wealth managers in the world with asset under management of over $1.7 trillion, alone has flagged these “religious and border disputes” regarding investments in India in at least eight regulatory filings made by its various funds so far this month.

Besides, a number of other funds, including the India Fund managed by Aberdeen Asset Management, which has more than $380 billion of assets under management, have listed similar “risks” in their regulatory filings made with the US Securities and Exchange Commission (SEC).

Other such funds include Eaton Vance Greater India Fund, Mathews International Funds, Alps Funds (Financial Investors Trust), Franklin Templeton International Trust, Global X Funds and iShares Trust (managed by BlackRock Fund Advisors).

Besides, Wasatch Funds Trust, Arthur J Gallagher & Co and Causeway Capital Management Trust have also flagged similar concerns.

When contacted, senior officials at some of these funds and other experts said such ‘risk factors’ follow a generic pattern in regulatory filings by various companies and investors and not much should be read into them, but they admitted that religious conflicts and Kashmir dispute remain an overhang.

They refused to be named citing regulatory issues and due to “sensitivities” involved in such matters.

While cross-border tension continues in the Kashmir region, the government has been trying to send across a positive message to the world and some saw hosting of the GST Council meeting in Srinagar last week as a step in that direction.

In a filing made by JPMorgan Trust II on May 18, the fund said, “Political and economic structures in India are undergoing significant evolution and rapid development, and may lack the social, political and economic stability characteristic of the US.”

It further said, “Religious and border disputes persist in India. Moreover, India has from time to time experienced civil unrest and hostilities with neighbouring countries such as Pakistan. The Indian government has confronted separatist movements in several Indian states.

“The longstanding dispute with Pakistan over the bordering Indian state of Jammu and Kashmir, a majority of whose population is Muslim, remains unresolved. If the Indian government is unable to control the violence and disruption associated with these tensions, the results could destabilise the economy and consequently, adversely affect the Fund’s investments.”



“Political and economic structures in India are undergoing significant evolution and rapid development, and may lack the social, political and economic stability characteristic of the US.” -- JPMorgan Trust II


Similar filings have been made this month by funds like JPMorgan Trust I, JP Morgan Exchange Traded Fund Trust, JP Morgan Mutual Fund Investment Trust and JP Morgan Insurance Trust.

A few US-listed Indian and India-focused companies have also made similar observations in their filings during 2017. These include HDFC Bank, Cognizant, Cancer Genetics, WNS Holdings, Genpact and MoneyOnMobile Inc.

In the ‘risk factors’ listed in one of its regulatory filings, HDFC Bank said the risks to its financial results would include “instability or uncertainty in India and the other countries... caused by any factor including terrorist attacks in India, the US or elsewhere...”

The other risk factors listed by HDFC Bank include “tensions between India and Pakistan related to the Kashmir region or between India and China, military armament or social unrest in any part of India”, among various other political and economic risks. Political system stable in India, but religious conflicts remain overhang.

In its SEC filing, Eaton Vance Greater India Fund said Indian population is comprised of diverse religious and linguistic groups, but despite this diversity, India has “one of the more stable political systems among the world’s developing nations”.

However, periodic sectarian conflict among India’s religious and linguistic groups could adversely affect Indian businesses, temporarily halting work of institutions, or undermine or distract from government efforts to liberalise the Indian economy”.

In its filing, Matthews International Funds also said that religious and border disputes persist in India and escalating tensions between India and Pakistan could impact the broader region.

MoneyMobile also talked abut the Kashmir dispute remaining unresolved and the potential risks to its businesses.

“Also, India has seen an increase in politically motivated insurgencies and a fairly active communist following. Any hostilities or civil unrest could adversely influence the Indian economy and, as a result, negatively affect businesses,” it added.

Cancer Genetics said a portion of its assets and operations are in India and we are subject to regulatory, economic, political and other uncertainties in India.

The India Fund said India’s economic development has exceeded forecast with faster growth than China’s, but “heightened tensions with Pakistan over Kashmir, Trump’s US presidential election victory and the Fed’s increased hawkishness for 2017 also roiled investor sentiment”.

IT major Cognizant, which has a substantial portion of its assets and operations in India, said in one of its SEC filings that the potential for hostilities between India and Pakistan “has been high in light of tensions related to recent terrorist incidents in India and the unsettled nature of the regional geopolitical environment, including events in and related to Afghanistan, Iraq and Syria”.

Genpact said Southern Asia has, from time to time, experienced instances of civil unrest and hostilities among neighbouring countries, including India and Pakistan.

Alps Funds also talked about persisting religious and border disputes including on Kashmir issue and said these factors are extremely difficult, if not impossible, to predict and take into account with respect to the Fund’s investments.

Franklin India Growth Fund said its investments are subject to “much greater risks of adverse events that occur in India and the surrounding regions, and may experience greater volatility than a fund that is more broadly diversified geographically”.

http://www.hindustantimes.com/busin...reign-funds/story-bforBRmcRkPXUXcKNNndFK.html
Well ... they can move their investments to countries where there is less religious unrest... like Pakistan for example...
 

ito

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In Kashmir case, you can't blame the whole population there being mobsters. The revolt is everywhere on everyday, probably you should not be there in the first place.
Did Tibet stopped Chinese development?

Where monks are self immolating every day against Chinese rule

http://thetibetpost.com/en/news/tib...lf-immolation-to-protest-chinas-rule-in-tibet

In the mean while US supports Tibet independence

http://economictimes.indiatimes.com...to-tibet-flays-china/articleshow/58612711.cms
 

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