LONDON (Alliance News) - Aberdeen New Thai Investment Trust PLC on Friday said it outperformed its benchmark in its first half as it had no exposure to convenience store operator CP All PLC and has declared a maiden interim dividend.
The Thai-focused investor posted a net asset value total return for the six months to August 31 of negative 0.6%, an improvement over the negative 2.2% sterling adjusted total return from its Stock Exchange of Thailand Index benchmark.
Aberdeen New Thai credited a lack of CP All exposure for its performance, as the Thai 7-Eleven operator was "weighed down by slowing quarterly profit growth and concerns over start-up costs".
Other factors in Aberdeen New Thai 's performance included industrial, services and resource sector investments, which performed well during the period.
As at August 31, the trust's net asset value per share stood at 679.11 pence, down 2.3% from 694.80p at the company's previous financial year end on February 28.
The company made a GBP3.2 million loss on investments during the period, contributing to a pretax loss of GBP780,000, swinging from a GBP8.2 million profit the year before.
In May, Aberdeen New Thai announced a number of changes to its investment strategy. These changes include increasing exposure to small-cap companies, allowing some investment in unquoted Thai companies, and the introduction of an interim dividend.
As such, first interim dividend of 7.00p has been declared.
Aberdeen New Thai Chairman Nicholas Smith said the company is aware of external risks. Borrowing costs have risen and the July boat accident in Phuket, which killed 47 people, has impacted visitor numbers to Thailand and may impact gross domestic product growth.
"With Thai exports still holding strong, the outlook for corporate earnings growth in 2018 looks set to improve from mid to high-single digits. All this may trigger greater capital inflows, which could receive further impetus from a possible central bank rate hike over the next six months, although this is unlikely to be the start of a tightening cycle," said Smith.
Shares in Aberdeen New Thai were down 0.5% at 550.26p on Friday.