(Alliance News) - abrdn Private Equity Opportunities Trust PLC on Tuesday said that its net asset value had increased, but its total return was beneath its benchmark in its half-year report.

The Edinburgh-based investor in private equity funds focused on Europe said its NAV per share at March 31 was up 2.0% at 768.4 pence per share from 753.2p in its financial year ended September 30.

NAV total return for the six months ended March 31 was 3.0%, down from 6.8% at the same point the year prior, and beneath its benchmark the FTSE All-Share Index at 12.3%.

"The past six months have continued to be a challenging period in the global economy and financial markets, carrying on where we left off in the previous financial year," said Chair Alan Devine.

"The war in Ukraine continues with no sign of resolution and the pace of interest rate rises, in order to tackle the high levels of inflation in the global economy, has been unprecedented."

Pretax profit increased by 50% to GBP4.5 million from GBP3.0 million the year prior, and total net assets increased 9.1% to GBP1.2 million from GBP1.1 million the year before.

abrdn Private Equity said the total dividend for the half period amounted to 8.0 pence per share, up 11% from 7.2p in the same period the year before.

abrdn Private Equity said that the combination of high inflation, higher interest rates, and economic sluggishness would have a "downward impact upon earnings growth" in its portfolio.

"I believe that the quality and diversification of the existing portfolio, combined with careful ongoing management of new commitments and the balance sheet, will help the company well during these challenging market conditions said Chair Devine.

Shares in abrdn Private Equity were up 1.8% at 449.05 pence in London on Wednesday.

By Will Neill, Alliance News reporter

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