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(Alliance News) - Aberdeen Asian Income Fund Ltd said Wednesday it outperformed its benchmark in the first half of 2019, as equities rebounded in the period on improving market conditions.
For the six months to the end of June, the fund's net asset value total return was 13.3%, outperforming the MSCI All Countries Asia Pacific Index, excluding Japan, which returned 12.5%.
As at June 30, Aberdeen Asian Income's net asset value per share was 237.48 pence, up 6.3% from 223.40p the same date the year before and 11% higher from 213.96p at the end of December.
The fund's share price at the end of June was 217.0 pence, reflecting an 8.6% discount to net asset value.
Shares in Aberdeen Asian were down 0.5% on the day Wednesday at 212.50 pence, having improved since the period-end.
In terms of its portfolio, the fund saw a strong performance from Singapore, with companies such as contract manufacturer Venture Corp, telecoms incumbent SingTel and transport operator ComfortDelgro being among the top stock performers.
Aberdeen Asian Income declared an interim dividend of 4.5 pence per share, in line with the year before.
"After a strong start to the year, Asian stock markets have pulled back somewhat as trade tensions, primarily but not solely between the US and China, are compounding fears about a slowing global economy. Falling trade volumes, subdued business sentiment and weakening economic data from China could all put pressure on regional corporate earnings. In addition, the recent unrest in Hong Kong heightens concerns," said Chair Charles Clarke.
"Against this backdrop, there are some silver linings. For one, domestic consumption - in China and other parts of Asia - remains relatively resilient, bolstering your company's holdings against the brunt of likely market turbulence. Furthermore, with lower rates leading to deteriorating bond yields, dividend-focused stocks such as those held by your company now appear more attractive to investors," Clarke added.
