LONDON (Alliance News) - Aberdeen New Thai Investment Trust PLC said on Monday it underperformed against its benchmark in the recently ended financial year, as trade tensions and a slowing Chinese economy took their toll on share prices in the broader Asian region.
Aberdeen New Thai's net asset value return was negative 5.1% for the year to the end of February, compared to the Stock Exchange of Thailand Index's negative return of 3.9%.
Net asset value per share as at February 28 was 641.45 pence, down 7.7% from 694.80p on the same date a year before.
Aberdeen New Thai's share price at the end of February was 552.00p, reflecting a discount to net asset value of 13.9%, narrowed from 14.8%.
Shares in the trust were up 0.3% on the day Monday at 574.00 pence, having improved since the year-end.
Aberdeen New Thai said that Thai equities were volatile during the period, with stocks buffeted by trade tensions between the US and China, while emerging markets generally were hurt by hawkish comments from the US Federal Reserve, since turned more doveish.
Portfolio-wise, insurance stocks dragged on the trust's performance due to increased sector competition, while property and construction suffered from the Thai government's move to tighten mortgage requirements for high- end homes.
Aberdeen New Thai declared a final dividend of 11.0 pence per share, giving a total payout of 18.0p, up from 11.1p the year before.
"I am encouraged by Thailand's longer-term prospects, which remain undiminished. Corporate fundamentals are also sound, notably those of your company's portfolio. The small-cap holdings, in particular, have great potential to grow in tandem with rising domestic wealth and consumption, coupled with expansion into nearby developing markets," said Chair Nicholas Smith.
"Theinvestment manager's report highlights several of these smaller holdings that have done well. With the recent correction, valuations now appear reasonable and our Investment Manager continues to search for gems to add to the portfolio," Smith added.