31st Jan 2017 09:51
LONDON (Alliance News) - Aberdeen Emerging Markets Investment Co Ltd said Tuesday it saw strong returns in its most recent financial year, although slightly lower than its benchmark index.
Aberdeen Emerging Markets reported a 36.4% net asset value total return for its financial year ended October 31. This compares to a 37.7% return from the MSCI Emerging Markets Index.
The net asset value of the company stood at 618.80 pence at October 31, up from 453.35p at the same date in 2015. Net assets overall stood at GBP320.2 million, up from GBP235.5 million.
Aberdeen Emerging Markets said the majority of the returns were generated in the second half, due to a recovery in commodity prices and stabilising currencies increasing appetite for emerging markets assets. Performance was also boosted by post-Brexit vote depreciation in sterling.
The performance relative to the benchmark was dragged down by weaker performance in Latin American investments, partially offset by outperformance in Asian holdings.
Richard Bonsor, chairman of the company, said the election of Donald Trump as US president and the potential for a stronger US dollar presents a "challenging backdrop" for emerging markets.
"Nonetheless, despite the recent rally, valuations of emerging market equities remain attractive relative to developed markets and there are a number of other factors that are supportive of the asset class; currencies are competitive, balance sheets are generally sound, corporate earnings have stabilised and economic growth appears to have bottomed out," added Bosor.
Shares in Aberdeen Emerging Markets were untraded at 530.00 pence Tuesday morning.
By Adam Clark; [email protected]
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