(Alliance News) – Invesco Asia Trust PLC on Wednesday said, alongside its half year results, that its planned merger with Asia Dragon Trust PLC “is progressing smoothly”.
Invesco Asia’s NAV per share rose 6.3% to 384.15p at October 31, from 361.51p for April 30.
The stock was trading 0.3% lower at 341.88p on Wednesday afternoon in London.
The Oxfordshire, England-based and Asia-focused investor, which prioritises long-term capital growth, reported a net asset value total return of 6.3% for the six months to October 31. This was compared with 2.7% for the year to April 30.
Its benchmark, the MSCI AC Asia ex Japan Index, returned 8.6% compared with 7.9% for the year to April 30.
However, Chair Neil Rogan highlighted that Invesco Asia’s performance was “well ahead” of the index “over six months but well ahead over three and five years”.
“As at 31 October 2024, the company’s NAV was up by 61.2% over the four and a half years while the index was up by 29.3%. On an annualised basis, NAV was up by 11.2% [per year] while the index was up by 5.9%,” he wrote.
The company has paid a first interim dividend of 7.80p per share, and said on Wednesday it will pay a second one worth 3.90p per share on January 31.
Rogan also reported that his company’s planned combination with Asia Dragon Trust PLC, an investor in Asian equity markets, “is progressing smoothly”.
“This combination is transformational for the company and both sets of shareholders…Our proposed discount management policy is bold and provides the opportunity for us to break free from the persistent double-digit discounts and locked registers from which so many Asian and emerging markets trusts have suffered,” he commented. “Our aim is to make this the go-to Asian trust, trading on a premium rating, growing organically and also through further combinations.”
The trusts announced their planned merger in October.
Looking ahead, Rogan noted the threat of US President Donald Trump’s planned tariffs and the ongoing issues facing China’s economy among other macroeconomic headwinds, saying: “Change is inevitable and outcomes are uncertain…but there is a significant probability of a positive outcome.
“Even a muddling-through outcome could produce positive returns, especially given the relatively low starting valuations for many of Asia’s stockmarkets. It is a fantastic opportunity for active investors and stockpickers.
“It is going to be an exciting period for the markets and even more so for us as we look forward to welcoming Asia Dragon shareholders.”
By Emma Curzon, Alliance News reporter
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