8th Apr 2020 12:37
(Alliance News) - Aberdeen Standard Asia Focus PLC on Wednesday reported a drop in net assets over the first half, underperforming its benchmark.
At January 31, the trust's NAV per share stood at 1,173.81 pence, down 9.7% from the 1,300.56p recorded at the end of July.
Aberdeen Standard Asia's net assets slipped to GBP387.4 million from GBP441.0 million six months earlier.
The trust's NAV total return in the six month period was negative 8.3%, underperforming its benchmark - the MSCI AC Asia Pacific ex Japan Small Cap index - which lost 6.8% over the same period.
The MSCI AC Asia Pacific ex Japan index lost 3.7% in the six months to January 31.
Chair Nigel Cayzer said: "Even before the onset of the virus, global stock markets, Asia included, had a rollercoaster ride for the half year to January 31.
"Markets began on the back foot as US-China trade friction compounded worries about slowing global growth. Optimism returned after both sides resumed talks and reached a partial pact eventually. This was further helped by monetary policy easing worldwide, while we saw additional stimulus in Asia to shore up growth. However, sentiment soured again after the viral outbreak in Wuhan, China, which, as we know, spread across the region, before going wider."
Cayzer said the trust's continued focus will be to invest in "quality companies" and believes this is a "temporary dip".
"The portfolio is concentrated in financially robust companies which are often leaders within their sectors. Hugh Young and the team in Asia believe that these companies should be more resilient and better-positioned to ride through these difficult times," he said.
At April 3, the trust's NAV per share stood at 891.5p.
Shares in Aberdeen Standard Asia Focus were 2.0% lower in London on Wednesday at 774.09 pence each.
By Paul McGowan; [email protected]
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