20th Nov 2013 09:59
LONDON (Alliance News) - Aberdeen Japan Investment Trust PLC Wednesday said it underperformed against its benchmark over the half year, citing the fact that it didn't have enough exposure to Japanese equities.
The company's net asset value on a total return basis declined by 9.1%, compared with the MSCI All Countries Asia Pacific (including Japan) Index's fall of 2.5% during the six months to September 30. The share price fell by 8.8% on a total return basis and was 347.75 pence at the end of the period.
"In Asia, fears of slowing growth in China added to uncertainty and stock market weakness was exacerbated by currency depreciation in developing countries with balance-of-payments deficits. Japan, in contrast, performed relatively well, with both the banks and export businesses showing gains and the yen strengthening slightly. The company's portfolio performance was therefore hurt by both the exposure to the weaker developing markets and the absence of significant exposure in Japan especially to the banks," Aberdeen Japan Investment Trust said in a statement.
Aberdeen Japan Investment Trust, formerly Aberdeen All Asia Investment Trust, said its performance in the time period after October will be measured against the Japan TOPIX Index (in sterling terms), while the performance up to October 7 will continue to be measured against the MSCI All Countries Asia Pacific (including Japan) Index.
The trust changed its name after the company changed its investment policy to focus exclusively on Japan, as opposed to all of Asia, in early October. The trust didn't say in its statement Wednesday what percentage of its portfolio had been migrated to Japanese investments.
The trust's shares were Wednesday quoted at 354.30 pence, down 0.30%.
By Samuel Agini; [email protected]; @samuelagini
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