31st Jan 2019 17:06
LONDON (Alliance News) - Aberdeen Emerging Markets Investment Co Ltd said on Thursday it more than doubled its annual dividend payout, despite underperforming its benchmark index.
Aberdeen Emerging Markets reported a 12.4% net asset value negative return for the year to the end of October 31, compared to a 9.0% negative return from the MSCI Emerging Markets Index.
The net asset value of the company as at October 31 stood at 600.6 pence per share, down from 706.0p on the same date the year before. Net assets overall stood at GBP276.6 million, down from GBP361.5 million.
The company's share price as at October 31 was 515.0 pence, reflecting a 14.3% discount to net asset value, widened from 10.4% the prior year.
Shares in the closed-ended investment company closed up 1.3% at 544.00 pence on Thursday.
Aberdeen Emerging Markets will pay a dividend of 21.0 pence per share, more than double from 10.0p the year before
"There were a number of issues that had an impact on emerging markets during 2018 but, as these abate, the backdrop for the sector has started to improve. In particular, there has been a meaningful shift in the likely policy trend of the Federal Reserve which, in light of the recent market volatility and increasing economic uncertainty, has indicated that its stance on further interest rates increases is flexible and dependent on economic conditions. This would be a positive development for emerging markets and, in particular, their currencies," said Chair Mark Hadsley Chaplin.
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