26th Apr 2019 12:01
LONDON (Alliance News) - Henderson Far East Income Ltd said Friday its net asset value per share fell over the first half of its financial year, as US-China trade tensions and a stronger US dollar led to a tougher period for equities.
The trust reported a net asset value negative return of 3.5% for the six months to the end of February, compared to a negative 3.7% return from the FTSE All-World Asia Pacific ex Japan Index over the same period.
Henderson Far East's net asset value per share as at February 28 was 335.79 pence, down from 369.93p the same date the year before, and 359.26p at the end of August.
The trust's share price at the end of February was 343.00 pence, reflecting a 2.1% premium to net asset value.
Shares in Henderson Far East Income were flat at midday Friday at 365.00 pence, having improved since the end of the period.
Although the interim period started poorly with global uncertainty, markets started to rally at the start of 2019 as trade worries eased and a weaker US economy reduced the expectations of interest rate rises.
At the stock level, there was strong performances from the mining sector such as BHP Group PLC and Rio Tinto PLC, as well as Anta Sports and Chinese distiller Kweichow Moutai benefiting from a bounce in Chinese consumption data.
However, a weaker oil price affected China Petroleum & Chemical, as well as Star Petroleum and Far East New Century.
Moreover, property firm Lend Lease was part of the bottom ten detractors in Henderson's portfolio as a one-off provision in its engineering arm led to a considerable sell-off.
Henderson Far East declared an interim dividend of 11.00 pence per share, up 3.8% from 10.60p the prior year.
"Global risks and uncertainties abound and, while well flagged, present difficult choices for investors. In our region however, the Asia Pacific, there are clear trends which are encouraging and provide opportunities for investors taking a medium to long term view," said Chair John Russell.
Related Shares:
Hend.far EastRio TintoBHP Group