abrdn Asia Focus PLC on Thursday said its portfolio was well-positioned despite China being a ‘key source of worry, amid a slow-moving recovery.’
The investor in smaller, listed companies in Asia and Australasia, excluding Japan, said net asset value per share declined 2.5% to 301.2 pence per share as at January 31 from 308.9p at July 31.
Diluted NAV total return was negative 0.7% for the six months to January 31, compared to positive 3.0% a year prior. It underperformed against the MSCI AC Asia ex Japan Small Cap index, which had a total return of 4.5%.
Chair Krishna Shanmuganathan said: ‘Asia’s rising middle classes and advancing technology provide fertile ground for innovative small-cap companies, offering substantial potential for value creation. As ever, your company is focused on high-quality companies with excellent long-term track records and strong fundamentals, exploring thematic opportunities in structural growth trends like domestic consumption, digitisation and the green energy transition. The future is bright for smaller companies in Asia and we expect that shareholders will benefit from this via their investment in abrdn Asia Focus.’
Looking ahead, Gabriel Sacks, Flavia Cheong & Xin Yao Ng from abrdn Asia Ltd said: ‘The investment climate remains one of sluggish global economic growth, inflationary risks and concerns over the impact of policy moves by major central banks. China continues to be a key source of worry, amid a slow-moving recovery. Against this prevailing uncertain backdrop, the portfolio is well-positioned, exhibiting strong fundamentals and a return profile that should stand it in good stead.’
abrdn Asia shares fell 1.0% to 259.52 pence each on Thursday afternoon in London.
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