Shareholders in Edinburgh Dragon will be encouraged to vote in favour of continuing the trust's shar...
Shareholders in Edinburgh Dragon will be encouraged to vote in favour of continuing the trust's share buy-back facility. The issue will be raised at the trust's AGM on 27 November.
Since 1998, the board has been able to buy back up to 15% of shares per year whenever the discount widens beyond 15%, the point at which a buy-back is triggered.
During the past year this facility has been used to buy back and cancel some 2.6 million ordinary shares. So far in 2000 the discount has been volatile. It reached 22% earlier in the year before narrowing to 12.8% by the end of August. It now stands at 19.8%.
Jeremy Whitley, investment manager at Edinburgh Dragon, said: "Pacific markets have been very volatile over the course of the year, the discount reflects this uncertainty."
In the 12 months to 31 August this year, the trust's NAV rose some 20.2% compared with a 2.3% rise in the benchmark MSCI All Countries Asia Free ex Japan Index.
Whitley attributed the outperformance to stockpicking within telecommunications, low risk technology and outsourcing sectors during the first half of this year, although these positions have now been reduced.
Chairman Tony Cassidy said: "While the trust has benefited from global interest in technology, media and outsourcing, as the valuation of these stocks grew excessively, it was felt prudent to switch into interest rate sensitive stocks such as banks and property companies."
The trust, which has both ordinary shares and warrants, is most heavily weighted towards Hong Kong with 44.4% portfolio exposure, with Singapore, at 14.4%, some way behind in second place. South Korea and Taiwan are almost equal-third at 12% and 11.8% respectively with the only other substantial weighting in India at 7.5%.
Individual companies with the greatest portfolio weighting are Cheung Kong, Taiwan Semiconductor and Dao Heng Bank all above 4%, with Li & Fung, Samsung Electronics and Cathay Pacific Airlines all making up over 3% each.
Partner Insight: Introducing the Architas education series for clients.
'Fewer than 1% of firms PROD-compliant' - Rory Percival
'Left holding the can'
'VCTs and EIS compared' panel
Letter to Women and Equalities Committee