Nippon Active Value Share News (NAVF)

(Alliance News) - Nippon Active Value Fund PLC on Thursday recorded disappointing results as it underperformed against its benchmark index in a difficult year.

The Japan-focused investment firm recorded net asset value per share of 121.03 pence at June 30, down from 137.90p at December 31, 2021.

Nippon Active's NAV total return per share decreased 10.9% in the six months to June 30 compared to a 10% increase in the same period last year. The MSCI Japan Small Cap Index, Nippon's benchmark index, declined 8.7% in the first six months of the year.

The board has decided not to declare an interim dividend for the half year ended June 30. It clarified that its intention is to achieve its returns "primarily through capital appreciation." The company paid a 1.95 pence interim dividend in March.

The company highlighted that this was "an exceptionally difficult period for all markets" as markets correcting in the face of increased geopolitical risk.

Looking forward, the firm said its strategy is to invest in "a small number of deeply undervalued companies" where there is a strong potential for engagement with management to improve returns to shareholders through higher dividend pay-outs or share buybacks.

Chair Rosemary Morgan said: "The Rising Sun Management team continues to identify a number of potential investment opportunities and is encouraged by the responsiveness of many, if not all, of the companies they engage with. Despite the disappointing start to the year, we remain confident of the prospects for the rest of the year and beyond."

Rising Sun Management is Nippon Active's investment adviser.

Shares in Nippon Active were trading 4.1% lower at 109.77 pence each at midday on Thursday.

By Chris Dorrell; chrisdorrell@alliancenews.com

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