27th Sep 2013 17:09
LONDON (Alliance News) - Pacific Assets Trust PLC said Friday that its net asset value per share rose by 4.7% in the half year ended July 31, despite the departure of "hot money" from Asian equities during the period due to the threat by the US Federal Reserve to reduce its quantitative easing program.
"The deterioration in the short-term outlook for a number of countries in Asia
remains a concern and comes within the context of excessive monetary growth in
the USA and Europe being wound down," Chairman David Nichol said in a statement.
The Asia-focused investment fund noted that its short-term performance was primarily the result of the performance of individual stocks in its portfolio. Investment Manager Robin Harding cited Tech Mahindra of India, Towngas of China, Giant Manufacturing of Taiwan. Delta Electronics of Thailand, and Vitasoy International Holdings of Hong Kong as stand-out performers during the half year.
Meanwhile, Harding said the four worst contributors to the portfolio during the period all were Indian companies.
NAV per share rose to 168.2 pence on July 31 from 160.6p on January 31. Over the same period, Pacific Assets' share price rose 11% to 163.0p from 147.5p, as the discount of share price to NAV shrank to 3.1% from 8.2%. Pacific Assets noted that during the same period the MSCI All Country Asia ex Japan Index (total return, sterling adjusted), its benchmark, declined by 1.1%.
The company noted that at its most recent annual general meeting, it was given renewed authority to repurchase its own shares and will use this authority to ensure the discount of share price to NAV does not get out of line.
Pacific Assets shares closed Friday at 154.75 pence, down 1.5p.
By Tom Waite; [email protected]; @thomaslwaite
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