(Alliance News) - Martin Currie Asia Unconstrained Trust PLC on Friday said its net asset value total return lagged behind the benchmark in its most recent financial year, with Indian company Vakrangee Ltd its worst performing stock.
The investor, which is currently proposing voluntary liquidation and a rollover of assets, said its net asset value per share total return was 2.4% for the year ended March 31. The company's benchmark, Asia nominal gross domestic product, increased 5.7%.
Net asset value per share including income fell 1.4% to 431.6 pence from 437.8p and fell 1.5% excluding income to 425.6p from 431.9p.
Martin Currie Asia said its detractors "were largely confined to the consumer discretionary sector". The firm's Indian consumer stocks Hero MotoCorp Ltd and Maruti Suzuk India Ltd were weakened by the slowing of growth in new vehicle sales. However, financial inclusion services firm Vakrangee was the worst single performer.
The company intends to pay a final 14 pence per share dividend, flat from financial 2018, with the total dividend per share maintained at 16.70p per share.
On Tuesday last week, the company said it is proposing a scheme which will result in the voluntary liquidation of the company and a rollover of assets. The rollover scheme would give Martin Currie Asia Unconstrained shareholders the default option of rolling all or some of their holding into shares issued by an open ended investment company.
This rollover company would be managed by Martin Currie Investment Management Ltd and would be under the Legg Mason Investment Funds ICVC umbrella.
Martin Currie Asia Unconstrained Chair Harry Wells said: "Both the board and managers are confident of secular growth throughout Asia, as is laid out in the manager's review. Our shareholders have been consistently supportive of a strategy designed to capture long term Asian growth with less risk, but the board believes that shareholders will be better served by continuing exposure to the existing strategy in an open-ended vehicle, with a similar investment mandate, and by providing this option together with an all or part cash exit."
Shares in Martin Currie Asia Unconstrained were flat at 418.00 pence on Friday.