22nd Apr 2016 08:36
LONDON (Alliance News) - Aberdeen Asian Smaller Companies Investment Trust PLC on Friday said its net asset value underperformed its benchmark in the first half of its financial year, hurt by its holdings in Sri Lanka and an underweight position in Taiwan.
The trust said its net asset value declined 5.0% in the half to the end of January, compared to a 3.0% decline for its benchmark MSCI AC Asia Pacific ex Japan Small Cap Index.
The trust said some of its best performing investments were in countries where equity markets took a hit in the first half, including in consumer-related stocks in Indonesia and the Philippines.
The weakness in its overall NAV was down to its positioning in two other countries, Aberdeen Asian Smaller Companies said. In Sri Lanka, companies in which it is invested were hit in the first half by a one-off retrospective super-gains tax on profits, part of a push by the Sri Lankan government to fix its finances.
The other weakness for the portfolio was its underweight position in Taiwan, given that market outperformed the wider region.
Despite a flow of money out of emerging markets in the half, the trust said it remains confident on the outlook for smaller companies, as the purchasing power of emerging Asian consumers grows.
Shares were up 0.2% to 831.50 pence Friday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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