4th Nov 2014 16:40
LONDON (Alliance News) - The Scottish Oriental Smaller Companies Trust PLC Tuesday said it outperformed its benchmark in the year to end-August, and maintained its dividend at 11.5 pence per share.
The trust posted a total return on net asset value per share of 13.5% for the year, beating the MSCI AC Asia ex Japan which rose by 13.2%.
The company said that it had benefited from its high weighting in India, where it funded some of its purchases with disposals in Korea.
"The outlook for the global economy and the performance of Asian equities is uncertain given the unwinding of unconventional monetary policies, slowing demand growth, surplus capacity in a number of industries, political tension and elevated asset values," the trust said in a statement.
It cautioned that markets are likely to remain volatile, and it remains cautious particularly in light of political troubles in Ukraine and the Middle East. However, it expressed positivity on Asian economies as net energy importers, and India benefiting from a fall in oil prices.
The trust intends to increase its exposure in cyclical companies when opportunities arise, as opposed to the more popular quality consumer companies. It will pursue these opportunities, it said, by drawing down on its GBP20 million loan from National Australia Bank.
Shares in The Scottish Oriental Small Companies Trust closed down 0.8% at 853.00 pence Tuesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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