7th Sep 2018 11:56
LONDON (Alliance News) - Schroder Asian Total Return Investment Co PLC said Friday its net asset value in the first half outperformed its benchmark in the first half of 2018.
In the six months ended June, the investment fund posted a NAV per share of 350.87 pence, up from 313.88p last year but down from 354.79p at the end of 2017.
NAV total return was 0.3%, outperforming its benchmark, the Reference Index, which had a negative return of 1.8%.
Schroder Asian Total's net assets increased to GBP312.6 million from GBP241.2 million the year before and from GBP294.4 million at the end of the previous half.
The equity investor said Asian stocks started the year strongly but investor sentiment "soured" as "worries over protectionism took centre stage".
The Chinese government's "ongoing efforts" to reduce credit and rein in unregulated financing activities "fuelled concerns" that growth momentum in the country could decelerate - contributing to increased Asian equity sell-off towards the end of the half.
Schroder Asian Total believes its portfolio "held up reasonably well" under those circumstances, with the biggest positive contributions coming from its healthcare holdings in China and Australia.
In particular, Wuxi Biologics had strong sales growth thanks to the improving policy environment in the Chinese healthcare sector.
The fund's Financial and Real Estate holdings also added to its first half performance. The best performer was Thai retail financial services provider Aeon Thana Sinsap, following strong results in the last quarter of its financial year.
Schroder Asian Total is not proposing an interim dividend, same as the year before.
Looking ahead, the company believes its outlook for the second half is "clouded". Worries over a "full-blown" trade war and the "volatility" of US decision making could result in short-term "caution".
Schroder Asian Total, however, feels valuations are "now more attractive" and offer "reasonable upside potential".
Shares in Schroder Asian Total Return were down 0.7% at 345.15 pence each.
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