20th Mar 2020 14:34
(Alliance News) - Newly-listed Nippon Active Value Fund PLC said Friday its assets have grown since its initial public offer in mid-February.
Nippon Active said the slight rise in its net asset value - measured in sterling - can be attributed to the yen's appreciation against sterling.
"While some prices have fallen in yen terms, this has been largely offset by the yen's appreciation against sterling. Overall, it's swings and roundabouts. We continue to buy shares nearly every day and, for the past month, prices have declined fairly steadily. It's always a bit painful to see the prices of securities one owns erode; but for a value investor with cash, a falling market is a valuable gift," the fund said.
Nippon Active raised GBP100 million in its IPO and it said it has invested about GBP29 million into its 15 initial target companies.
Nippon Active said: "We have been deliberate and careful both in our foreign exchange transactions and in our stock purchases. We have not "chased" shares but have allowed dealers to offer us blocks as they become available and our trading has generally represented less than half of the shares traded on any given day. Naturally some shares have been more liquid than others but, overall, we are satisfied at our rate of progress. If we find that any of our portfolio companies is simply too illiquid, we will add additional companies to our list of targets."
Once fully invested, the fund expects to hold about 20 companies in its portfolio - which could take up to six months to invest.
Shares in Nippon Active Value Fund were 1.3% higher in London on Friday at 99.00 pence each.
By Paul McGowan; [email protected]
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