Smart Cities Theme

Reason for played out:
The Smart Cities Mission, launched in 2015 to upgrade infrastructure and build technology-driven urban infrastructure across 100 cities, officially concluded last year, after achieving over 95% project completion. While the Mission formally ended, some projects continued to be completed by state governments and urban local bodies under transition arrangements. With the Mission and its transition phase now effectively complete, the multi-year public spending cycle that many companies in this smallcase were positioned to benefit from has largely run its course. As a result, the sector-specific tailwind underpinning the original investment thesis is no longer expected to persist. As a result, this smallcase is being phased out. Since January 2019, this smallcase has generated a compounded annual return of ~15%.