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Schroder AsiaPacific Fund PLC on Tuesday said its net asset value per share picked up in its first half, and it outperformed its benchmark. The Asia-focused investment fund said its NAV per share at March 31 rose 5.9% to 578.15 pence per share, from 546.13p at the end of September. Year-on-year, however, the NAV per share declined 4.5% from 605.59p. Shares in Schroder AsiaPacific were 0.5% lower at 495.75p on Tuesday in London. The NAV total return for the six months was 8.1%, topping the MSCI All Countries Asia benchmark which rose by 4.9% over the period. Schroder AsiaPacific said its performance was helped by ‘strong stock selection’ across various markets including India, Hong Kong and Taiwan. It said this ‘more than offset’ the negative effects of its underweight to China and allocation to Vietnam. The company declared no interim dividend for the half year, unchanged from the prior year. Schroder AsiaPacific previously reported an NAV total return of negative 14% for the year ended September 30, citing the economic impact of continued Covid-19 lockdowns in China. It said its performance has now rebounded from this ‘difficult period’, with Asian markets boosted by China’s reopening and the hope that rampant inflation and robust interest rates have peaked. Despite this, Chair James Williams warned on global tensions. ‘Geopolitical issues remain, not least increased tensions between the USA and China, as does the uncertainty about the medium term consequences of higher interest rates on the global economy and financial system,’ Williams said. ‘However, our investment manager believes that overall aggregate valuations in Asia are trading at or below long term averages and that this does potentially set up a constructive backdrop for Asian markets in the coming months.’ Schroder AsiaPacific also anticipates that its portfolio holdings in Korea, Taiwan, Australia and other areas will benefit from increased consumption as China’s economy stabilises. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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