Schroder AsiaPacific Fund PLC on Tuesday said its annual return lagged the benchmark, but declared a final dividend above the previous year’s level.
The Asia-focused investment fund said its net asset value total return in the year to the end of September was 16.5%, behind the benchmark MSCI All Country Asia ex Japan Index which was up 17.3% in the same period.
The company declared a final dividend of 12.50 pence per share, which was up 4.2% from 12.00 pence last year.
The fund said the biggest driver of relative performance was stock selection, which had a positive effect on stocks in Taiwan, the Philippines, Indonesia and Hong Kong. The effect was negative in China, Korea and India.
Schroder AsiaPacific said it is ‘impossible to ignore’ the impact of the ‘evolving geopolitical landscape’ on investing in the region. The company said ongoing uncertainty around Taiwan and rising tensions between China and the US cause concern. However, the company said this is balanced by ‘the region’s long-term structural growth drivers’.
Chair James Williams said: ‘Asia Pacific remains an engine of global growth, with robust domestic consumption, technological innovation, and an increasingly affluent population. Our focus remains on identifying high-quality companies that can navigate this evolving landscape, while positioning the portfolio to manage risk through prudent diversification and active engagement with companies.’
Shares in Schroder AsiaPacific were up 0.1% to 536.75 pence in London on Tuesday morning.
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