Since mid-November 2016, shares in listed investment company PM Capital Asian Opportunities (PAF) have risen around 11%, to $1.00. This has reflected improved performance in its portfolio, with pre-tax net tangible assets (NTA) per share rising 7.8%, to $1.11, and post-tax NTA rising 5.5%, to $1.077, over this period.
The LIC also declared a fully franked 2 cent per share interim dividend, which will be paid today.
PAF has benefitted from its holdings in Macau-based gaming stocks, which have risen due to gross gaming revenue in the former Portuguese colony continuing to increase. Its holdings in various Asian banks have also benefitted from the expectation of higher economic growth and hence higher interest rates arising from President Trump's proposed tax cuts, infrastructure spending and deregulatory agenda.
As a result, with the discount between PAF's share price and post-tax NTA now around 8%, we're downgrading to HOLD.
Note: since its underlying value changes every day with the market, we're not going to put a price guide on PAF.