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LONDON (Alliance News) - Schroder Asian Total Return Investment Co PLC on Friday reported a decrease in net asset value but managed to slightly outperform its benchmark.
At December 31, Schroder Asian Total Return's NAV per share stood at 321.43 pence compared to 354.79p, a 9.4% decrease.
The investment company's total net assets edged down by only 0.2%, however. At the end of 2018, Schroder Asian Total Return had GBP293.8 million in net assets compared to GBP294.4 million at the end of 2017. Schroder Asian Total Return issued about 9.2 million shares in 2018.
In 2018, the investment company's NAV total return was negative 8.1%, slightly better compared to its benchmark losing 8.6% in the same period.
Investment Managers Robin Parbrook and Lee King Fuei said: "It has been a frustrating years. We did get some things right - we were cautious at the beginning of the year and correctly trimmed the portfolio's technology and internet positions. However, this has not resulted in material outperformance versus the portfolio's reference index."
The investment company's "key area" of losses came from its stock selection in China.
Parbrook and Fuei said: "We bought back stocks too early - catching the proverbial falling knife - and hedging where policies were less effective than we would have hoped. Hedging Taiwan did not prove good protection at a time when the heaviest falls were in Hong Kong and China."
The managers said, going forward, "no major changes" are required but may make "some minor tweaks" to the hedging process.
The investment company's revenue increased "substantially" in 2018, on a higher yielding stock portfolio, resulting in Schroder Asian Total Return increasing its final dividend 29% to 6.20p from 4.80p a year before.
Schroder Asian Total Return will propose a resolution at its upcoming annual general meeting, held on May 10, to extend its investment cycle by a further three years.
Shares in Schroder Asian Total Return were up 1.1% Friday at 359.00 pence each.