Money

Scottish Asia investment trust turns £1,000 into £17,412 for investors



A Scottish investment trust focused on Asian stock markets has delivered returns for investors of almost 2,000% since it was launched 30 years ago.

An initial investment of £1,000 in the Aberdeen New Dawn trust worth would have been worth £17,412 at the end of its latest financial year. The near 2,000% return compares with the 1,311% gain seen in its benchmark index over the same period.

 

The update came as the trust, managed by James Thom at Aberdeen Standard Fund Managers, announced it had also outperformed its benchmark in the 12 months to 30 April with a net asset value total return of 4.9%, compared with 3% from its benchmark index.

The trust said that it had delivered “resilient returns in a challenging period for Asian equities”.

“In addition to good stock selection, the company also benefitted from the Brexit-related weakness in sterling, which amplified foreign-currency denominated returns,” it said.

 

Chairman David Shearer, who is standing down at the AGM in September, said it was clear that the direction of US-China trade talks will be crucial for future sentiment in the Asia Pacific region.

“Markets could remain volatile for some time if the conflict continues,” he said.

“Already, companies seem to be becoming more cautious by delaying spending and investment. A full-blown trade war could significantly hurt regional economies and corporate earnings, although this remains the worst-case scenario amid continuing talks.”

 

But Shearer said recent changes to increase the trust’s exposure to certain key growth sectors have positioned it to access Asia’s “huge potential where a growing and increasingly affluent middle class should bolster demand for a greater variety of products, services and technologies”.



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