LONDON (Alliance News) - Henderson Alternative Strategies Trust PLC on Tuesday said it lagged behind its benchmark in the first half of its financial year due to its emerging markets exposure.
The trust posted a 4.7% net asset value total return for the six months ended September 30. Meanwhile its benchmark, the FTSE World Total Return Index in sterling, recorded a 14% return.
"Our emerging markets exposure was the biggest drag on returns," said Henderson AST Fund Managers James de Bunsen and Peter Webster.
"Losses were experienced on the equity side, via the KLS Sloane Robinson Emerging Markets Fund, and on the debt side, through the Ashmore SICAV Emerging Markets Local Currency Fund. The Schroder GAIA Indus PacifiChoice Asia Fund also struggled owing to concerns over trade wars centering on Asian supply chains," the fund managers said.
Stock-wise, Henderson AST's investment in venture capital firm Eurovestech was marked down by close to a third, and its investment in private equity firm Safeguard Scientifics Inc gave back its gains.
Henderson AST's net asset value per share increased to 344.8 pence from 335.4p year-on-year.
A 5.00p per share interim dividend was declared for the 12 months from October 2017 to September 2018, up from 4.75p the year prior, and will be paid at the end of January.
Having extended its financial year to March 31, Henderson AST will then declare a final dividend for the period from October 2018 to March 2019. This is likely to be smaller than the interim dividend.
After March 31, Henderson AST intends to resume the declaration of a single dividend near July after the end of each financial year.
"With the US Federal Reserve continuing to raise interest rates and to shrink its balance sheet and the European Central Bank also looking to shift to a less accommodative monetary policy, we can expect uncertain times ahead for mainstream assets," said Henderson AST Chairman Richard Gubbins.
"With this in mind, the board continues to believe that the company's mandate to invest in alternative and specialist assets and strategies is an attractive one for investors looking to diversify away from more traditional investments," Gubbins said.
Shares in Henderson AST closed marginally down at 273.92p on Tuesday.