30th Oct 2019 11:49
(Alliance News) - Aberdeen Standard Asia Focus PLC on Wednesday said net asset value per share rose and its discount shrank in its most recent financial year as a result of a portfolio restructure.
As at July 31, the end of the Asian investor's financial year, NAV per share stood at 1,300.56 pence, up 5.6% from 1,231.83p the year before. In addition, the firm narrowed its share price discount to NAV per share to 12% from 15%.
Shares in Aberdeen Standard Asia were down 0.2% at 1,043.00p in London in late morning trade.
These positive changes were attributed a restructuring effort in the year, in which the firm reduced the number of its holdings and made a exits before reinvesting in "new upstart companies".
Aberdeen Standard Asia is recommending a 14.0p per share final dividend, up 7.7% from 13.0p, plus a 5.0p per share special dividend - up 25% from 4.0p.
Chair Nigel Cayzer said: "The outlook for Asian smaller companies is promising over the medium-term, even as markets are challenged by a slowdown in global growth. The trade dispute is intensifying and is no longer the purview of just China and the US; with rising tensions between Japan and Korea likely to erode consumer and corporate confidence in the region further. Unsurprisingly, we are seeing increasing action by governments and central banks to support growth through targeted stimulus and interest rate cuts. This should increase investor confidence in Asia, where central banks still have the capacity to loosen policy rates. In addition, most countries are already on a fiscal consolidation path and have healthy foreign-exchange reserves."
He added: "The case for investing in Asian smaller companies remains compelling, with the portfolio's valuations towards the lower end of their historic range. The region has one of the highest growth rates globally and a wealth of financially responsible corporates. While exports remain a key driver, resilient domestic demand should support regional economies amid global trade tensions."
By Anna Farley; [email protected]
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