4th Nov 2014 10:32
LONDON (Alliance News) - Edinburgh Dragon Trust PLC Tuesday said it underperformed its benchmark in its last financial year, largely due to its stakes in Standard Chartered PLC and City Developments, though it remains optimistic about the two companies' prospects in the longer term.
In a statement, the trust said its net asset value rose 10.4% on a total return basis, against a rise of 13.2% in sterling terms in the MSCI All Country Asia (ex Japan) Index in the year ended August 31.
While accepting that it underperformed the benchmark over the year as a whole, the trust said its investment manager's strategy was vindicated in the second half, which saw its NAV outperform the index by 1.9%.
"While sentiment is currently very fragile across all global markets, Asian economic growth is likely to remain relatively strong in comparison to other regions over the longer term. Improving demand from the US should benefit regional exporters, while the recent elections in India and Indonesia have buoyed business sentiment. The portfolio's holdings, which include some of the best companies in the region, should be able to maintain focus on growth and cost discipline amid the macroeconomic uncertainty, and remain well-positioned for the future," the trust said in a statement.
At the end of October the trust's shares were trading at a discount of 11.3% to NAV, according to the statement.
The trust's portfolio is managed by Aberdeen Asset Managers Asia Ltd.
Edinburgh Dragon Trust shares were down 0.1% at 272.61 pence on Tuesday.
By Samuel Agini; [email protected]; @samuelagini
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