The MSCI Emerging Markets Index has fallen 9.9% by comparison, the trust said in its annual report.
It noted that on a five year basis it has comfortably beaten the benchmark with an increase in NAV of 97.7% versus 71.7%.
The share price of the trust has fallen 17.7% over the year to 527p at the time of announcement, but is still up 89.6% on a five-year basis. Revenue per share for the year is up 8.2% to 9.14p.
The trust is proposing to up its dividend by 16% to 7.25p per share. It has also announced a cut in its fee from 1.2% to 1.1%, effective from 1 July onwards.
The trust said the year to 31 March was ‘difficult for emerging markets equities’ due to a combination of macroeconomic and geopolitical events, with unfavourable international cash flows being a key driver of the falling market values.
It also pointed to the taper tantrum stemming from US Fed policy as being responsible for a large proportion of the cash withdrawal from emerging markets seen.
The ‘relative strength of sterling’ was another factor to blame the trust said, as the small gains made over the year in local currency terms were wiped out when converted into sterling.
Despite these mitigating factors the trust still acknowledged that it has been ‘disappointing’ to undershoot the benchmark over the year.
