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AVI Japan underperforms benchmark; swings to interim loss

28th Sep 2022 17:37

(Alliance News) - AVI Japan Opportunity Trust PLC on Wednesday said it was optimistic about the performance of its portfolio in the wider context of weak markets.

At June 30, the firm's net asset value per share was 108.39 pence, down from 120.87p on December 31. In the six months ended June 30, AVI Japan's net asset value return was negative 9.7%. This compared to a return of negative 8.2% for the company's benchmark index, the MSCI Japan Small Cap Index.

AVI Japan invests in a portfolio of 20 to 30 Japanese stocks.

The firm swung to a pretax loss of GBP15.6 million in the half from a profit of GBP3.8 million the previous year. It recorded income on investments of GBP2.3 million, up from GBP1.9 million a year prior.

Chairman Norman Crighton said the company had performed well "in the face of lacklustre performance of small cap stocks and a notable sell off in the currency in Japan, as well as a turbulent global environment."

He added that as stock markets stabilise following the disruption caused by the pandemic and Russia's attack on Ukraine, the company aims to grow by "issuing shares at a premium to NAV to take advantage of the opportunities identified by the AVI teams in London and Tokyo".

AVI Japan declared an interim dividend of 0.75 pence per share.

AVI Japan shares were trading 1.3% lower at 113.00 pence per share on Wednesday afternoon in London.

By Holly Beveridge; [email protected]

Copyright 2022 Alliance News Limited. All Rights Reserved.

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