14th Feb 2019 18:44
LONDON (Alliance News) - Aberdeen Frontier Markets Investment Co Ltd on Thursday reported a decline in net asset value as frontier markets endured a "torrid six months" amid trade issues between the US and China and weakening levels of global economic activity.
For the six months to the end of December, Aberdeen Frontier Markets reported a 14.6% negative net asset value negative return underperforming the benchmark's decrease of 6.2% from the MSCI Emerging Markets Index.
The company's net asset value as at December 31 stood at 53.44 pence, down from 68.18p at the same time last year. Net assets overall fell to USD49.0 million from USD79.0 million at the same time last year.
The company's share price as at December 31 was 47.30p reflecting an 11.5% discount to net asset value, which widened from 9.0%.
The company expects to declare an interim dividend in May 2019, for the year ending June 30.
"The company's under-performance against the Index resulted, primarily, from two country-specific portfolio positions. The longstanding large underweight to stocks in Kuwait and Bahrain held back relative performance as these two countries, with a hard currency peg including the US dollar, fared comparatively well within the overall otherwise negative frontier markets context," said Chair John Whittle.
Shares in the closed-ended investment company closed down 0.2% at 552.00 pence on Thursday.