25th Sep 2019 16:14
(Correcting the performance of the MSCI Korea 25/50 Net Total Return Index, after a statement issued by Weiss Korea Opportunity Fund Ltd.)
(Alliance News) - Weiss Korea Opportunity Fund Ltd on Monday reported a first half net asset value rise and higher total return than its benchmark index.
Net asset value per share on June 30 rose by 6.1% to 159.01 pence from 149.93p in December. Total net assets rose by 2.6% to GBP129.8 million from GBP126.5 million.
Total return for the period was 11%, outperforming the MSCI Korea 25/50 Net Total Return Index which increased by 2.6% in sterling terms during the period.
The company said the positive first half was a contrast to the "very disappointing" 2018 for the South Korean market.
Weiss said: "The outperformance during the period was due to several factors. The largest contributor was that the company generally had more favourable weightings to positive and negative performing names than the Index. In other words, a portfolio holding the respective ordinary shares of the companies whose preference shares Weiss owns would have performed well relative to the index.
"The other major contributor to the fund's outperformance was a moderate narrowing of preferred share discounts. While we continue to believe that preferred shares discounts will narrow over the long term, we would not expect to see such strong stock performance due to company selection as we saw in the first half of the year."
By Eric Cunha; [email protected]
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Weiss Korea Opp