AN ABERDEEN Standard Investments investment trust that was revamped under star manager Hugh Young at the end of last year outperformed its benchmark in the six months to the end of January.
Though its net assets contracted by 4.5 per cent over the period, the £401 million Aberdeen Standard Asia Focus trust fared better than the MSCI Asia (ex-Japan) Smaller Companies Index, which fell by 8.6%.
READ MORE: Hugh Young takes control of Aberdeen Asian trust
It comes four months after Mr Young was handed sole management of the trust, which was formerly known as Aberdeen Asian Smaller Companies and which underperformed the index by two percentage points in the year to July 2018.
Trust chairman Nigel Cayzer noted that the revamp resulted in 10 holdings being sold during the period under review, with Mr Young looking to offload companies where “the growth outlook is less exciting”.
READ MORE: Funds chief steps down to end "noise" around investment giant leadership
“These include Castrol India and Heineken Malaysia, both investments that have meaningfully contributed to the value of [the trust] over the years,” Mr Cayzer said. “The portfolio still has around 10% of its holdings that need tidying up, but it is important to emphasise that this is no fire sale.”
The discount at which the trust’s shares were trading narrowed over the period, falling from 14.8% to 11.2%, with Mr Cayzer taking that as a sign “that shareholders have welcomed last year’s restructuring efforts”.
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