Last checked at 
LONDON (Alliance News) - Aberdeen Asian Income Fund Ltd said Thursday it underperformed the MSCI AC Asia Pacific ex Japan Index during the half year to end-June, delivering a negative total return of 2.4% in sterling terms.
The MSCI AC Asia Pacific ex Japan Index saw a total return of 2.6%. The fund didn't say whether the benchmark return was in sterling or local-currency terms.
The fund said the first half of the year had been challenging for Asian equities against a backdrop of slowing economic activity in the region.
The company expects to pay three interim dividends of 2.0 pence, followed by a fourth interim dividend of at least 2.0 pence for 2015, in line with the four quarterly dividends totalling 8.0 pence it paid in 2014.
Although forecasts for Asian economic growth have continued to "slide lower" amid slowing demand from China, the region is "still expected to be the engine of global growth in the years to come, with economic expansion underpinned by young populations with increasing wealth", the fund said.
"While corporate earnings growth in the region is likely to remain muted in the near term, your company's holdings, selected for their solid balance sheets, sustainable businesses and commitment to shareholder value over the longer term, position them to produce good dividend growth regardless of the interest rate environment," Aberdeen Asian Income said in a statement.
Shares in Aberdeen Asian Income Fund were up 1.2% at 170.00 pence Thursday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.