17th Aug 2018 12:07
LONDON (Alliance News) - Aberdeen Asian Income Fund Ltd said Friday its total return lagged behind its comparable index in the first half of the year due to a lack of biotechnology and Chinese internet investments.
As at June 30, the fund's net asset value per share was 223.40 pence, falling from 229.02 pence the year before.
The fund's net asset value total return fell 3.3% in the six months to June. By comparison, the MSCI All Countries Asia Pacific Index (excluding Japan) fell 1.7%.
Although Chinese internet and biotechnology investments performed well during the period, boosting the Asia Pacific index, most companies in these sectors pay either very low or no dividends which made them unattractive investments to Aberdeen Asian.
The income fund declared a 2.25 pence per share dividend for the second quarter, bringing its total dividend for the first half of 2018 to 4.5p, flat from the year before.
"Asian markets are expected to remain volatile...Against this backdrop, China's economy remains largely robust. Improving consumer sentiment in the second-largest economy in the world, as well as across the Asia region, provides some buffer for earnings growth, and therefore dividend payouts, against trade-related disruptions," said Aberdeen Asian Chairman Charles Clarke.
"Valuations across Asia are below historic averages and at a discount to global markets, presenting attractive investment opportunities. Your manager remains diligent about researching companies and focusing on balance sheets and cash flows which can support sustainable and growing dividends," Clarke added.
Shares in Aberdeen Asian Income were down 0.3% at 205.30p on Friday.
Related Shares:
Abrdn Asn Inc