19th Dec 2019 10:07
(Alliance News) - Aberdeen New Dawn Investment Trust PLC said Thursday it outperformed its benchmark in the first half of its current financial year, posting a positive return despite a challenging period for Asian markets.
For the six months to the end of October, the investment trust's net asset value total return was a positive 0.7%, outperforming the MSCI AC Asia Pacific ex Japan Index, which reported a negative total return of 0.2%.
Net asset value per share as at October 31 was 279.9 pence, up from 238.1p the same date the year before, but down 0.4% from 281.1p at the end of April.
Aberdeen New Dawn's share price at the end of October was 246.0p, reflecting a 12% discount to net asset value.
Shares in the investment trust were up 0.4% on the day Thursday at 257.50 pence, having improved since the period-end.
Aberdeen New Dawn said its returns during the period were aided by sterling weakness for most of the period, largely caused by Brexit-related uncertainty.
There was also strong performance from its portfolio holdings, mainly in Chinese and Indian companies.
Although some companies in China were affected by trade and growth concerns, Aberdeen New Dawn was helped by its stake in the Aberdeen Standard SICAV - China A Share Equity Fund.
This fund held companies in the travel, food and beverage sectors, largely linked to domestic demand and insulated from the worst of the US-China trade dispute.
It was a similar situation for India, with the Aberdeen Standard SICAV - Indian Equity Fund outperforming the domestic benchmark, which was volatile due to continued financial sector worries.
Aberdeen New Dawn declared an interim dividend of 1.0 pence per share, in line with the year before.
"Uncertainty will remain the watchword in the coming months. Markets appear to have already priced in an interim US-China trade deal, which means that any delays could trigger a painful reversal. It also seems clear that the strategic rivalry between the world's two largest economies will continue to play out, with unknown consequences for trade, investment, supply chains and the application of technology," said Chair Donald Workman.
"This is likely to influence the growth trajectory of economies across Asia and dictate the quality of corporate earnings. Despite these risks, there are reasons for cautious optimism. Asian governments and central banks are united with regards to expansionary policies, while ongoing reforms and political stability should sustain consumer and business confidence," Workman added.
By Dayo Laniyan; [email protected]
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