30th Apr 2019 18:23
LONDON (Alliance News) - Africa Opportunity Fund Ltd reported a fall in its net asset value per share on Tuesday amid a "difficult year" for emerging markets.
The fund said it had a "dismal" performance in 2018, with the fourth quarter dominated by sharp price declines in its major holdings.
The company's net asset value return for the year was minus 27%. Africa Opportunity Fund's net asset value per share stood at USD0.671 at the year end, versus USD0.925 at the end of 2017.
"AOF begins 2019 with caution. There are increasing signs of economic weakness in China, Europe, and the US," the company said. "Another year of subdued commodity prices and African currencies is eminently possible."
"The question, to answer after the fund's 2018 results, is how does the fund generate materially stronger results in the future. The answer, we believe, is to concentrate the fund's holdings in our best and most undervalued investments and to sell everything else," said Africa Opportunity Fund.
Africa Opportunity Fund shares closed flat at USD0.605 on Tuesday.
Related Shares:
Africa Opp.