Investment trust APQ Global Limited (LON:APQ) expects the strong performance of emerging markets to continue even with the recent tensions between the US and North Korea.
“Emerging markets have been boosted in particular by a strong performance in a number of individual economies, a weakening US dollar and strong liquidity,” said Bart Turtelboom, chief executive.
Turtelboom added: “Our liquid portfolio is largely unchanged and our sizeable hedge on rates is serving us well. Looking forward, we remain confident of delivering a 6% yield, supported by solid capital growth.”
He also hinted at some more specific company initiatives.
“We are excited by some new strategic opportunities that we intend to pursue as we enter the second half of the year.”
APQ yesterday raised just over £20mln through a convertible loan issue backed by major shareholder Old Mutual, with the conversion price a 10% premium to book value of 95.8p.
The trust specialises in assets in Asia, Latin America, Eastern Europe, the Middle East and Africa and has an objective to pay a fully covered dividend yielding 6% while ensuring book value grows by between 5%-10% each year.
Turtelboom added that despite rhetoric to the contrary, US President Donald Trump has so far failed to make good on many of his election pledges, while results from European elections post Brexit and the Italian referendum had on the whole 'been very sensible'.
Tensions in the Gulf and the muscle-flexing displays of North Korea present new challenges, he added, but there are very specific opportunities to be had across emerging markets.
A second quarterly dividend of 1.5p will be paid in the coming weeks, he confirmed.