30th May 2022 14:09
(Alliance News) - Barings Emerging EMEA Opportunities PLC on Monday reported a decrease in net assets in its first half and cut its dividend, after being forced to write down to zero all of its investments in Russian securities.
Barings Emerging EMEA Opportunities invests in emerging and frontier markets in Europe, Middle East and Africa.
Net asset value per share as at March 31 stood at 705.6 pence, down 23% from 920.7p as at September 30.
The company's share price fell 24% to 605.0p as at March 31, down from 793.0p as at September 30. Shares were up 4.4% on the day on Monday at 569.14p.
The company recorded a net asset return of negative 22% in the period, lagging its benchmark, the MSCI Emerging Markets EMEA Index, which recorded negative 14%.
The company blamed its poor performance on Russia's invasion of Ukraine.
"This result was largely attributable to our investments in Russian securities, which were written down to zero, following exchange closures and sanctions activities," it said.
Barings chopped its interim dividend by more than half to 6.0p from 15p a year before.
Looking ahead, Baring said it expects the hit to Russian businesses and financial markets to be long lasting.
The company added that it now has roughly 60% of assets invested in Saudi Arabia and South Africa.
It said that the outlook for these markets is "encouraging", driven by extensive government investment in Saudi Arabia and a diversification of their economy.
By Abby Amoakuh; [email protected]
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