9th Oct 2024 10:13
(Alliance News) - Pacific Assets Trust PLC on Wednesday said that China's growth could continue to disappoint while it highlighted optimism for India as it reported a higher net asset value.
The Asia Pacific-focused investment company said net asset value per share rose 9.8% to 421.8 pence each as at July 31 from 384.3p at January 31.
NAV total return was 10.8% in the six months to July 31, underperforming against the sterling adjusted MSCI All Country Asia ex Japan index which had a total return of 14.9%. It was however an improvement from a total return of just 0.3% a year ago.
Looking ahead, Chair Andrew Impey said: "China's growth may continue to disappoint, which will also affect closely linked economies and companies. There is more optimism for other countries, particularly India, whose prospects remain especially appealing when compared with China. However, while there are plenty of opportunities across Asia, many of them are in emerging markets with high levels of volatility and uncertainty and with an exposure to geopolitics which should not be underestimated and which is impossible to predict with any degree of confidence.
"Against that backdrop, our portfolio manager will continue to build the portfolio from the bottom up, focusing on identifying and selecting companies with successful and experienced management teams, strong balance sheets and sustainable business models. Such businesses are those that the portfolio manager, and the board, believe are most able to weather macroeconomic difficulties and deliver the best long-term returns for shareholders."
Pacific Assets shares fell 1.1% to 376.75 pence each on Wednesday morning in London.
By Tom Budszus, Alliance News slot editor
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