2nd Jul 2020 10:31
(Alliance News) - Aberdeen New Dawn Investment Trust PLC on Thursday said it fell short of its benchmark in its recently ended financial year, hit by trade war uncertainty and later the Covid-19 pandemic.
In the year ended April 30, net assets fell 8.0% to GBP289.3 million from GBP314.4 million from year prior. Net asset value per share was down 6.9% to 261.63 pence from 281.12p.
Shares in the Asia-Pacific-focused investor were 2.7% higher at 249.55p each in London on Thursday morning.
Aberdeeen New Dawn swung to a total return of negative 5.5%, eclipsed by the MSCI All Countries Asia Pacific ex Japan Index, which returned negative 5.2% and by its own performance in financial 2019, when its total return was positive 4.9%.
The trust explained: "Most Asia Pacific stocks did not progress in 2019, having been frequently impacted by the ebb and flow of US-China relations. At the start of 2020 the "Phase One" accord between both countries was announced, which lifted investor sentiment. However, markets were soon overtaken by news of a new and deadly strain of virus originating from central China.
"Though at first discounted as just another localised event, as we know, by early spring it had spread to most parts of the globe, and was declared a pandemic, so causing stock markets to slump in unison. Exacerbating the loss in investor confidence was the collapse in the oil price."
By Eric Cunha; [email protected]
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