India CEFs Underperforming Since ETF Launched

As I write this the BSE Sensex just reached a new all-time high after breaking past the 15000 point mark. However, the two India CEF’s, IIF and IFN are both trading below their Net Asset Value [NAV].

• Morgan Stanley India Investment Fund (IIF) is trading at a 11.77% discount
• India Fund (IFN) trading at 10.64% discount

Data: ETFConnect.com

However, iPath MSCI India Index ETN (INP) is near its 52-week high and has outperformed the India CEF’s in 2007:

click to enlarge

Disclosure: no holdings in IIF, IFN or INP.

Comments

[Mary Ellen ...:]

I would be interested to know if the NAV of the CEFs kept up with INP. If the NAV is falling behind, it is a management issue. If the NAV has kept up while the discount increased, then it may be an investor reaction that may adjust back to par or a premium. In that case going short INP and long an India CEF might be a good market neutral play to capture the discount. Does that make any sense? Do you have the NAV versus price data?

2007 Jul 11 11:17 PM

[Nidhi Kadalbal:]

Go to etfconnect.com to compare NAV with market price for these ETFs.

creating-wealth.blogsp.../

2007 Jul 15 07:36 PM