2nd Apr 2019 16:21
LONDON (Alliance News) - Pacific Assets Trust PLC on Tuesday reported a rise in net assets in its financial 2019 on avoidance of Chinese tech stocks.
At January 31, the investment trust's net asset value per share stood at 277.5 pence compared to 267.6p the year before, a 3.7% increase.
Pacific Assets Trust's net assets also increased 3.7% in the period, rising to GBP332.7 million from GBP320.7 million the year before.
The trust hiked its dividend by 15% to 3.0p from 2.6p distributed the year before.
Pacific Assets Trust's net asst value total return for the period was positive 4.7% compared to the MSCI All Country Asia excluding Japan Index losing 7.7%. The company said its portfolio is "very different" to the index so expects its performance to be "very different".
"There was no obvious pattern during the year of what worked and what did not. Certain long held positions, such as Vitasoy International Holdings and Tech Mahindra proved their worth in a market where defensiveness and quality stood out. More recently acquired Unicharm, a Japanese company with a large business exposure in China and South East Asia, was an important contributor to this year's result," Chair James Williams.
"The avoidance of exposure to Chinese internet stocks which lost considerable value in the second half of the year, also helped Pacific Assets' achievement of a positive investment return for the year."
Williams added: "The company's portfolio is built around companies that can access opportunities that will stand them in good stead over the longer term. While there are questions over the economic background in which these companies trade in the year ahead, we believe that the strength of their business models and the quality of their balance sheets will help to ensure that they can be defensive in difficult times while maximising opportunity in their chosen fields."
Shares in Pacific Assets Trust were up 0.7% Tuesday at 294.90 pence each.
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