4th Nov 2019 09:47
(Alliance News) - Asia Dragon Trust PLC on Monday upped its full-year dividend after outperforming its benchmark and reporting a rise in net asset value per share rise.
Net asset value per share at August 31 rose by 8.7% year-on-year to 458.03 pence from 421.54p.
Asia Dragon shares were 0.3% higher at 404.35 pence each in London on Monday morning.
The Asia-focused trust, formerly known as Edinburgh Dragon Trust PLC, reported a 25% year-on-year fall in net assets however to GBP589.7 million from GBP788.0 million. Number of shares in issue fell by 31% to 128.7 million from 186.9 million.
Asia Dragon said its net asset value returned 9.8%, beating the MSCI All Country Asia (ex Japan) Index return of 0.3%.
The trust raised its full-year dividend by 19% to 4.75p per share from 4.00p.
The trust said: "During the period Asia was dominated by economic and political uncertainty. Escalating tensions between China and the US weighed on an already slowing global economy. It was also a busy year in politics.
"Incumbents in India and Indonesia scored decisive election wins, which augured well for reform. Separately, large scale demonstrations in Hong Kong, arising from a controversial bill, hobbled tourism, residential demand and consumer confidence."
Asia Dragon said its focus on Asian consumer names, like alcoholic spirits maker Kweichow Moutai Co Ltd, helped drive growth during the period.
The firm explained: "Several of the portfolio's holdings, which are industry leaders in the travel, liquor, consumer goods and insurance segments, performed better than the wider market."
The company changed its name, effective Monday, from Edinburgh Dragon Trust in order to emphasise its geographic investment focus.
Asia Dragon also announced that it has added Pruksa Iamthongthong as a co-investment manager where he will serve alongside Adrian Lim. Like Lim, Iamthongthong is an investment director at Aberdeen Standard Investments (Asia) Ltd.
By Eric Cunha; [email protected]
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