For the six months ending 31 July 2018, the company’s NAV total return per share and its benchmark (MSCI AC Asia Pacific Index) fell 0.6% and 0.1%, respectively.
The share price discount widened during this period, resulting in a 4.0% decline in the share price on a total return basis. Revenue per share for the first half of the year increased 36.1% year on year to 4.7p from 3.5p.
At the end of this period, the portfolio was overweight on China, Singapore and South Korea, while Japan, Australia and Taiwan were underweight. An underweight position in the Chinese internet giants was a net positive (relative to the benchmark) as they underperformed the region during the six-month period.
The board proposed to pay an interim dividend of 2.5p per share, payable on 29 October 2018. This is an 11.1% year on year increase from 2.25p. Net assets were £239,957,000 as at 31 July 2018.
The company expects the volatility in share prices, which returned earlier in 2018 after a period of relative calm, to persist. This can provide good opportunities for stock pickers such as their portfolio managers.