1st Oct 2019 11:15
(Alliance News) - Pacific Assets Trust PLC said Tuesday it outperformed its benchmark in the first half of its financial year, but warned of more challenging times to come.
For the six months to the end of July, the trust net asset value total return was 10.5%, outperforming the MSCI All Country Asian ex Japan Index, which returned 8.9%.
Net asset value per share as at July 31 was 302.1 pence, up 8.9% from 277.5p at the end of January.
Pacific Assets Trust's share price at the end of July was 303.5 pence, reflecting a premium to net asset value of 0.5%.
Shares in the trust were up 0.3% on the day Tuesday at 293.68p, having declined since the period-end.
As at July 31, Pacific Assets Trust had a market capitalisation of GBP367.1 million, up 12% from GBP327.3 million at the end of January.
"We believe that we have moved into a period of downward adjustment of investment returns, exemplified by the paltry or even negative interest rates on fixed income assets. This suggests that risks are being priced towards a deflationary environment, rather than a return to higher inflation. In a more challenging world possibly for some time to come, it is important that investors lower their sights of expected returns," said Chair James Williams.
"We must keep in mind that many of the investments that the company owns are focused on serving their large domestic audiences. The theme of an emerging middle class in countries as large as India and China means that providers of consumer products or financial services will continue to be well placed whatever disturbing geo-politics may unfold," Williams added.
By Dayo Laniyan; [email protected]
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