LONDON (Alliance News) - Aurora Investment Trust PLC Tuesday reported a lower net asset value per share in the first half of the year as portfolio stocks exposed to emerging markets continued to underperform, but it said it hoped the appointment of a new Federal Reserve chief will reduce concerns about the end of the US economic stimulus programme, bringing investors back to those markets.
The UK-based investment trust said that its net asset value per share was 180.75 pence as of August 31, down 2.9% from 186.13 pence at the end of February.
It reported a near gearing of 8.5%, compared with 13.3% in the prior period.
"In the face of continued de-rating of Emerging markets' price earnings ratios relative to those in Developed Markets, which have continued to expand, the portfolio has, during the six months under review continued its trend of underperformance against its UK Benchmark," said Chairman Lord Flight in a statement.
"There are, however, good grounds for believing that a turning point in this trend has now been reached with the recent appointment of the new Chairman of the Federal Reserve Board," he added.
The company invests mainly in London-listed stocks, but tries to focus on those companies with exposure to economies growing at a faster rate than the UK economy.
Aurora said that within the portfolio, Prosperity Mineral, Gresham Computing and Persimmon performed particularly well during the period.
Aurora said that mining resources, oil and gas accounted for its biggest investment during the first half of the year, followed by consumer services and the IT sector.
Shares in the company closed Tuesday up 1.5% at 152.25 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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Aurora Inv.tst. (ARR)