4th Sep 2015 08:24
LONDON (Alliance News) - Weiss Korea Opportunity Fund Ltd on Friday reported a 5.4% increase in its net asset value in the first half, beating its benchmark, although its investment manager cautioned that falls in the Korean, Chinese and global stock markets have hit performance since then.
Managed by Boston-based Weiss Asset Management LP, the AIM-listed company invests in South Korean companies, as well as taking some exposure to securities such as exchange-traded funds, futures contracts and other types of options, swaps and derivatives related to Korean equities.
The 5.4% increase in net assets - a measure of a company's worth - compared against a flat six months to the end of June for the MSCI Korea 25/50 Index. Since the end of June, the fund's net asset value has dropped significantly, according to the statement, hit by losses in the Korean and Chinese stock markets.
Weiss Korea Opportunity Fund's NAV per share was GBP1.2527 at the end of June, up from 1.2040 six months earlier. It was at GBP1.1192 on Thursday this week.
"The percentage decline in the WKOF NAV has been similar to that of the MSCI South Korea Index. The discounts of Korean preferred shares to their respective common shares have generally widened slightly, but not substantially. Such corrections in markets are normal and to be expected from time to time," Weiss Asset Management said in a statement.
"They do not alter our conviction in our long-term strategy. We believe that the general fall in global markets reflects investors' concerns about a recession in China, and that the losses in South Korea may also in part reflect concerns about recent escalated tensions with North Korea. We continue to monitor the situation and remain alert for opportunities that may arise as a result of the recent volatility," Weiss added.
Shares in the fund were untraded on Friday morning in London at 107.57 pence.
By Samuel Agini; [email protected]; @samuelagini
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