Weiss Korea Opportunity Fund grows in first half, but still underperforms

The AIM-traded firm reported a net asset value per share of £1.4514, up from £1.3449, while basic and diluted earnings per share dropped 12.87p, compared with 15.61p six months prior.

Its mid-market share price was £1.335 during the period, representing a discount of 8% to the net asset value, compared with £1.28 at a 4.8% discount on 31 December.

“During the period, the company’s NAV ... underperformed the reference MSCI Korea 25/50 Capped Index, which returned 14.81% in pounds sterling,” said chairman Norman Crighton.

Weiss paid a dividend of 2.2416p per share on 28 June.

“As stated in the Admission Document, the directors intend to return to shareholders all dividends received, net of withholding tax, on an annual basis,” Crighton explained.

“The board has decided to schedule payment of the company’s annual dividend distributions in the early summer.

“This timing helps ensure that dividends are paid out as soon as reasonably practical after the company receives them,” he said.

Crighton added that the board remained “committed” to adding value for shareholders, as well as enhancing the liquidity of the company’s shares, through the exercise of its authority to repurchase up to 40% of the shares at a discount to NAV.

“In this regard, during the period, the company repurchased and cancelled 100,000 shares on instructions from the board.

“Also, the board has in place standing instructions with the company’s broker for the repurchase of shares during closed periods when the board is not permitted to give individual instructions, typically around the preparation of the annual and half-yearly financial reports,” he said.

Crighton also said shareholders will have an opportunity to realise all or part of their shareholding in the first half of 2017.

“The board will contact shareholders early in 2017 with the appropriate documentation.”