(Alliance News) - abrdn New Dawn Investment Trust PLC on Thursday said it had underperformed its benchmark index amid a "challenging" environment for both Asian and global equities markets.

abrdn New Dawn aims to provide shareholders with a high level of capital growth through equity investment in Asia Pacific countries, excluding Japan.

The investment trust reported a net asset value per share, including current year income, of 299.20 pence as at April 30. At the same time a year prior, its NAV per share stood at 325.17p, representing a decline of 8.0% year on year.

abrdn New Dawn's total NAV return for the financial year ended April 30 was negative 6.8%. This compares to a total return of negative 5.2% for its benchmark index, the sterling-adjusted MSCI All Countries Asia Pacific ex Japan Index, over the same period.

"Despite the underperformance for the year, it is worth noting that, over the longer term three and five year periods both the NAV and share price total returns have outperformed the benchmark index," the firm said.

abrdn New Dawn's revenue earnings per share stood at 4.82p for the year, up 30% from 3.71p the previous year as it benefited from a "small number" of special dividends from companies that had "sustained strong" earnings.

Looking forward, the investment trust said it is "well positioned" to navigate "turbulent" market conditions and take advantage of the "strong structural secular" trends across Asia.

"Many of the challenges in the market over the past year undoubtedly remain, but the board continues to believe that the investment manager's focus on quality and seeking out companies with sound fundamentals is the best approach to ensure that the company meets its stated investment objective, and that shareholders will continue to benefit from this approach under the merger proposals," it said.

In July, the firm announced that it had agreed heads of terms with Asia Dragon Trust PLC for a proposed combination of the company with Asia Dragon. Under the merger agreement, abrdn New Dawn will be wound up, and shareholders will receive new shares in Asia Dragon.

They also will be offered a cash exit opportunity for up to 25% of abrdn New Dawn shares. This will be at a 2% discount to formula asset value, less the cost of realising assets to raise the necessary cash.

Shares in abrdn New Dawn were up 1.2% at 251.00p on Thursday morning in London.

By Heather Rydings, Alliance News senior economics reporter

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