7th Apr 2020 16:12
(Alliance News) - Pacific Assets Trust PLC on Tuesday reported a rise in assets over the year to January 31, but was unable to match the performance of its benchmark.
At January 31, the trust's net asset value per share stood at 285.8 pence, up 3.0% from 277.5p at the same point the year before.
Shareholders funds grew 3.9% over the year to GBP345.7 million from GBP332.7 million.
Pacific Assets declared a 3.0p dividend for the period, unchanged on the year before.
For the twelve months to the end of January, the trust's NAV total return was 4.2%, behind its benchmark - the MSCI All Country Asia ex Japan Index total return - which added 5.0% in the same period.
Chair James Williams said: "These figures are obviously disappointing even when taking the longer-term perspective of three to five years, which we regard as being the appropriate time frame to view the performance of an investment manager. Within the long term, there are many short terms. In the last quarter of the Trust's financial year, three of the larger holdings, Marico, Vitasoy, and Mahindra & Mahindra all suffered for different reasons. I mention this because it shows how some dramatic short-term moves can impact the longer-term numbers."
Looking ahead, Williams said: "Since the year end there has been a momentous change to the landscape which has left no market untouched. Stocks in February and March have endured a severe loss in value, and volatility has risen to levels never previously seen."
He added: "It is too early to comment on the resilience of the trust's portfolio. However, owning companies that have the combination of strong and liquid balance sheets and secure franchises should under most circumstances provide defensive qualities, if the inevitable recession and loss of confidence were to linger."
Shares in Pacific Assets Trust were 2.9% higher in London on Tuesday afternoon at 231.51p each.
By Paul McGowan; [email protected]
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