REG - Aberdeen Asia Focus - Half-year Financial Report
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RNS Number : 5154Y Aberdeen Asia Focus plc 30 March 2026
Aberdeen Asia Focus PLC
Legal Entity Identifier (LEI): 5493000FBZP1J92OQY70
ANNOUNCEMENT OF UNAUDITED HALF YEARLY RESULTS
for the six months ended 31 January 2026
Aberdeen Asia Focus PLC (the "Company" or "AAS"), which invests in a
diversified portfolio of quoted smaller companies with strong growth prospects
across a range of Asian industries and economies, is pleased to report a
strong set of half yearly results for the six months ended 31 January 2026,
building on previous good performance and following its entry into the FTSE
250.
Highlights:
· During the period the Company delivered a NAV total return of
+11.4% and a share price total return of +13.0%, outperforming the MSCI AC
Asia ex Japan Small Cap Index, which returned +9.0% over the same period.
· The portfolio's outperformance was primarily driven by strategic
exposure to specialist companies within the AI and electronics ecosystem. Key
contributors included:
o Newly added Taiwanese companies like MPI Corp and Sino-American Silicon
Products (SAS), capitalising on AI and 5G demand;
o High-growth opportunities in Hong Kong and China, such as WuXi XDC in
biotech and ASMPT in advanced packaging for semiconductors;
o Korean holdings Hansol Chemical and Leeno Industrial, solid AI-linked
performers;
o Selective capital deployed in India, such as the addition of Karur Vysya
Bank, targeting strong fundamentals and long-term potential.
· Net gearing reduced to 7.6% (10.2% at 31 July 2025).
· Two interim dividends paid in the first six months of the
Company's financial year of 1.6p per Ordinary share. The Board has set a
target dividend of at least 6.43p per Ordinary Share for the financial year
ending 31 July 2026.
Krishna Shanmuganathan, the Company's Chair commented:
"This Company's steadfast commitment to optimising shareholder returns
continues to deliver, highlighted by another strong six months of performance.
Our NAV total return grew by 11.4%, while the share price rose by 13.0%, both
outperforming the MSCI AC Asia ex Japan Small Cap Index's 9.0% return. This
share price outperformance, coupled with strong portfolio delivery, has led to
a narrowing of the discount to 8.9% (from 13.1% a year earlier), supported by
increased engagement and strategic share buybacks.
"Our long-term track record remains exceptional. Since inception in 1995, our
NAV total return of +3365.8% equates to an annualised +12.4% rise,
demonstrating consistent outperformance against the benchmark. This enduring
success has also led to the Company's recognition as a double 'ISA
Millionaire' Trust by the Association of Investment Companies (AIC). We are
also greatly encouraged by the increase in retail shareholders over the last
12 months (from 26.8% to 30.0%), which we believe both recognises our
outstanding long-term performance and reflects our significant promotional
efforts during the period.
"These impressive results, both short and long-term, are a testament to the
strategy, applied consistently by the Manager in a fluctuating and
increasingly volatile global environment. This patient stock picking approach
is well-suited to navigating these times, giving us confidence of being able
to continue to deliver sustainable returns for shareholders into the future."
Performance Highlights
Net asset value total return (A) Net asset value per share
Six months ended 31 January 2026 As at 31 January 2026
+11.4% 421.7p
Year ended 31 July 2025 +20.3% As at 31 July 2025 381.7p
Net asset value total return since inception diluted(AC) Annualised Net asset value total return since inception (diluted)(AC)
To 31 January 2026 To 31 January 2026
+3365.8% +12.4%
To 31 July 2025 +2995.6% To 31 July 2025 +12.2%
Share price total return(A) Share price
Six months ended 31 January 2026 As at 31 January 2026
+13.0% 384.0p
Year ended 31 July 2025 +26.6% As at 31 July 2025 343.0p
Annualised share price total return since inception(C) Discount to net asset value(A)
Six months ended 31 January 2026 As at 31 January 2026
+12.5% 8.9%
Year ended 31 July 2025 +12.2% As at 31 July 2025 10.1%
MSCI AC Asia ex Japan Small Cap Index total return(B) Active share
Six months ended 31 January 2026 As at 31 January 2026
+9.0% 95.8%
Year ended 31 July 2025 +7.6% As at 31 July 2025 96.5%
(A) Considered to be an Alternative Performance Measure
(B) Currency adjusted.
(C) Inception being 19 October 1995.
Financial Calendar & Highlights
Online Investor Presentation Tuesday 5 May 2026 at 11:00 a.m.
Financial year end 31 July 2026
Announcement of unaudited half yearly results 31 March 2026
for the six months ended 31 January 2026
Annual General Meeting (London) December 2026
Payment of interim dividends 1(st) Interim 19 December 2025
2(nd) Interim 24 March 2026
3(rd) Interim 23 June 2026
4(th) Interim 22 September 2026
Financial Highlights
Capital values(A) 31 January 2026 31 July 2025 % change
Total assets less current liabilities(B) £625,632,000 £594,341,000 +5.3
Net asset value per share 421.69p 381.72p +10.5
Share price (mid market) 384.00p 343.00p +12.0
Discount to net asset value(C) 8.9% 10.1%
Net gearing(C) 7.6% 10.2%
Ongoing charges ratio(C) 0.89% 0.91%
(A) Capital values only, no reinvestment of dividends.
(B) Total assets less current liabilities (excluding prior charges such as
bank loans) as per the Statement of Financial Position.
(C) Considered to be an Alternative Performance Measure
Chair's Statement
Your Company delivered a strong first half, continuing to build on the robust
performance of the previous financial year. Over the six months ended 31
January 2026, the Company's net asset value (NAV) grew by 11.4% on a total
return basis, while the share price rose by 13.0%. This compared with a total
return of 9.0% for the MSCI AC Asia ex Japan Small Cap Index, all in sterling
terms.
The share price outperformance against the NAV reflects both solid portfolio
performance and a narrowing of the discount. Your Board sees this as an
encouraging sign that demand for the Company's shares has continued to
strengthen in response to further good performance.
To reflect the Manager's recent rebranding to Aberdeen Group plc, the Company
was renamed "Aberdeen Asia Focus PLC", with effect from 14 October 2025. The
Company's ticker symbol, AAS, remains unchanged.
On a more sombre note, on behalf of the Board and shareholders, we extend our
deepest condolences to the family of Nigel Cayzer, Chair of the Company until
2022, following his tragic recent passing.
Investment Performance
The portfolio's outperformance was driven primarily by the Manager's stock
picks rather than broad market moves, reflecting the Manager's long‑standing
focus on investing in under‑researched Asian smaller companies with durable
business models, solid fundamentals and clear structural tailwinds.
The portfolio benefited from exposure to specialist companies in niche areas
within the AI and electronics ecosystem across Taiwan and Korea, and selected
industrial names introduced over the past year, as market returns were
narrowly concentrated within the AI thematic and its related supply chains.
Given the more volatile market environment, your Manager adopted a more
defensive stance, reducing gearing and adding selective exposure in Southeast
Asia, where valuations looked more compelling.
India delivered more subdued returns with mixed earnings. Although the
portfolio is underweight to India versus the benchmark, it remains the largest
country exposure, with capital deployed selectively where valuations and
fundamentals justify doing so.
Throughout the period, the Manager remained disciplined in taking profits from
winners. While this approach carried the risk of being too early in realising
gains, your Board believes this is prudent risk management, especially given
the sharp run-up in share prices across parts of the technology sector.
Further detail on the portfolio and the Manager's market views can be found in
the Investment Manager's Report.
Company Recognition
Over the period, the Company's net assets grew significantly, and we were
proud to see the Company join the FTSE 250, which should enhance the Company's
visibility and liquidity.
Your Company was recognised by the Association of Investment Companies (AIC)
as a double 'ISA Millionaire' Trust, with the highest return of any
Asia-focused trust and the 5th best across all asset classes. Over the
period since the introduction of ISAs in April 1999 the AIC figures show that
the Ordinary shares have delivered a total return of 5,892% equating to a
total ISA investment value, assuming full annual contributions, of £2.38
million.
The Company was also recognised by AJ Bell as the leading investment company
in the 'Asian Equity - Active' category at their 2025 awards, as voted by
private investors. Another accolade came from Citywire's annual Investment
Trust Awards in 2025, where the Company was named the best Asia Pacific trust.
Online Investor Presentation
It is pleasing to see that the number of retail shareholders has increased
over the last 12 months (from 26.8% to 30.0%), recognition of the Company's
outstanding long-term performance and reflecting the significant efforts that
have been made to promote the Company to a wider audience. In an effort to
spread our engagement with shareholders more evenly through the year, the
Board has decided to move the timing of its annual interactive Online
Shareholder Presentation away from proximity to the AGM. The next Online
Shareholder Presentation will therefore be held at 11:00 a.m. on Tuesday 5 May
2026. During the presentation, Shareholders will receive updates from myself
and the Investment Manager and there will be the opportunity for an
interactive question and answer session where we will endeavour to answer as
many questions as time allows. Full registration details can be found at:
asia-focus.co.uk.
Protecting Shareholders' Interests
During the period the Ordinary shares have traded at an average discount of
11.6% and we have bought back 5.8 million Ordinary shares (3.9% of the
Company's outstanding shares) in the market at a discount to the prevailing
NAV per share (six months to 31 January 2025: 3.4 million). The discount
narrowed significantly to 8.9% as of 31 January 2026, from 13.1% a year
earlier. At the time of writing the discount has widened slightly to 9.7%.
Share buybacks stepped up over the past half year, both to provide liquidity
to the market and in seeking to address the discount at which the shares trade
relative to the NAV.
This narrowing of the discount reflects your Company's continued outstanding
performance, increased engagement with investors, especially in marketing
efforts, and the impact of buybacks. We will continue to look at ways to
improve the Company's market rating, while recognising that long‑term
investment performance remains the most important driver of shareholder value.
Since the introduction of the five‑year conditional tender offer in August
2021, the Company's NAV total return per share has remained ahead of the
benchmark, returning 50.8% versus the benchmark return of 37.2% to the end of
January 2026.
Over the longer term, your Company's NAV total return per share has returned
an outstanding 12.4% per annum in absolute terms since inception, reflecting
your Manager's excellent investment track record of delivering sustained
returns to shareholders. This is significantly in excess of the returns of
both the 7.1% per annum for the large-cap index (MSCI AC Asia Pacific ex Japan
Index), and 5.3% per annum for the MSCI AC Asia ex Japan Small Cap Index.
We invest in Asian smaller companies which are established, listed businesses
that are often overlooked by mainstream Asia funds. Your portfolio managers
remain focused on discovering Asia's next generation of market leaders;
high-quality businesses that offer superior growth without excess volatility.
Revenue, Dividends and Gearing
Your Board remains firmly committed to the Company's progressive dividend
policy recognising the importance of income alongside capital growth for many
shareholders.
Underlying earnings per share for the period amounted to 2.0p (2025: 2.6p),
slightly down as the portfolio is further tilted towards growth stocks, but
revenue from the portfolio continues to cover the Ordinary dividend, with the
shares yielding 1.7%, as at 31 January 2026.
Two interim dividends of 1.6p per Ordinary share were paid in respect of the
first six months of the Company's financial year, on 19 December 2025 and 24
March 2026. The Board has set a target dividend of at least 6.43p per Ordinary
Share for the financial year ending 31 July 2026.
Your Board aims to maintain its long-standing progressive dividend policy,
which has now been in place for 30 years. Indeed, this year we expect the
Company to join the AIC's Next Generation of 'Dividend Heroes', awarded to
companies that have grown their dividend annually for 10 or more years.
During the period, the variable portion of your Company's gearing was reduced
by £10 million after a period of strong performance, reducing the net gearing
to 7.6% as at 31 January 2026, down from 10.2% as at 31 July 2025. This will
enable your Manager to deploy funds more tactically at the appropriate time.
Outlook
The US‑Israeli military strikes on Iran have re-introduced a significant
source of global risk, particularly through heightened geopolitical tension
and volatility in oil prices. We are also likely to see significant impact on
overall risk appetite.
This comes after the latest trade developments where the US Supreme Court's
decision to overrule US President Donald Trump's tariffs and his subsequent
efforts to work around the ruling underscore the fluidity of and continued
uncertainty around tariff developments.
Against this backdrop, your Company's portfolio of securities offers
resilience against global uncertainty. Many of these companies generate their
revenues from domestic demand across Asia and benefit from long-term
structural growth trends. This domestic orientation is complemented by highly
selective export exposure, which is mainly in global leaders that offer
specialised, difficult‑to‑replicate offerings and pricing power. This
reflects your Manager's conscious decision to protect earnings durability
across cycles, while retaining exposure to globally competitive franchises
that can enhance portfolio value.
Looking ahead, Asia's domestic resilience, global leadership and structural
growth will continue to create attractive long‑term opportunities. Your
Manager's disciplined and patient stock picking approach with a clear focus on
companies with strong balance sheets, earnings resilience and cash flow
visibility is well suited to navigating periods of uncertainty while
delivering sustainable returns for shareholders over the long run.
Krishna Shanmuganathan
Chair,
27 March 2026
Investment Manager's Review
Overview
Over the six months to January 2026, Asian small-cap equities posted gains,
with performance reflecting a gap between markets with direct exposure to
investment in artificial intelligence (AI) and those with less linkage to this
theme. The MSCI AC Asia ex Japan Small Cap Index rose by 9.0% in sterling
terms, further supported by easing financial conditions, resilient earnings
across most parts of Asia, and a softening of trade tensions at the margin.
Investors also grew more comfortable about a clearer US monetary policy
outlook after the US Federal Reserve cut policy rates by 25 basis points.
Against this backdrop, the best-performing markets in Asia were those most
aligned with the AI thematic and the supporting supply chains, notably Taiwan
and South Korea. In both markets, earnings delivery for the companies held in
the portfolio has been well ahead of expectations underpinning share price
gains.
By contrast, markets with limited AI exposure struggled. India was the key
laggard, owing to concerns over US tariffs, rupee weakness, and an earnings
slowdown.
China delivered mixed returns, with early gains from capital inflows and
pro‑growth, pro‑innovation policy support fading as activity softened,
Japan tensions rose, and investors took profits. Still, areas linked to tech
and robotics outperformed, even as the market lagged its regional peers.
Portfolio Review
The portfolio outperformed its benchmark by 100 basis points over the review
period, as the AI thematic that drove market returns also led to some strong
moves across your holdings in the IT hardware supply chain and industrials
sector. We remain positive on the AI theme but are mindful of stretched
valuations following the strong run-up. Hence, we are carefully managing
exposure and single-stock risks in this area. More broadly, we continue to
refine and refresh the portfolio towards holdings with good growth prospects,
steady cash flow and clearer earnings visibility, targeting a diversified
portfolio of around 50 well-run companies with industry-leading positions.
On key performance drivers, in Taiwan, Chroma ATE, a provider of specialist
testing equipment for advanced electronic and semiconductor components, and
Taiwan Union Technology, a leading maker of copper clad laminate used in
printed circuit boards, saw their share prices rise sharply. These businesses
are benefiting from AI-related demand and a unique industry position that is
translating into solid earnings and cash flow.
Taiwan remains one of the largest country exposures, given its deep pool of
high‑quality smaller companies that lead niche segments across
semiconductors, electronics and industrial supply chains, and are benefiting
from the increase in global tech capex. We continue to find compelling ideas
there. In August, we added MPI Corp, a niche player in semiconductor probe
cards and testing that is well-positioned to ride the AI and 5G testing wave.
In October, we introduced Sino‑American Silicon Products (SAS), which has a
stake in GlobalWafers, a leading silicon wafer supplier. Through GlobalWafers
and other units, SAS is a critical supplier to the global semiconductor
industry, producing high‑purity silicon ingots and wafers used across logic,
memory and power devices. Importantly, the company also trades at a material
discount to its listed subsidiaries, offering a yield of c.5% at the time of
purchase. Against this, we sold two Taiwanese holdings where conviction had
waned, namely Sunonwealth Electric and Chief Telecom.
Other solid AI-linked performers included Korean holdings Leeno Industrial,
which makes spring test pins and integrated chip test sockets, and Hansol
Chemical, a supplier of key materials for semiconductors and advanced
manufacturing. Hansol was a position that we had been adding to, funded by
taking profits off Taiwan and other winners. Beyond memory, the AI-driven
demand for power infrastructure also buoyed industrial group Hyundai Electric,
a manufacturer of transformers, motors and smart grid systems that we
initiated a year ago.
Elsewhere, Precision Tsugami, which sells high-end computer numerical control
(CNC) machine tools, was a stellar performer. The company is benefiting from
China's shift towards higher-value manufacturing across electric vehicles, AI
hardware and robotics, all of which needs high-precision machinery. Demand is
also rising for advanced machine tools used in power electronics, servers and
automation equipment. Higher-than-expected earnings, along with dividends and
buybacks, led to its share price almost doubling, and we have taken some
profits here.
More broadly, profit-taking has been somewhat of a theme for us during the
period, with elevated valuations in parts of the technology sector prompting
us to be disciplined in slicing positions that had done exceptionally well.
While this risks locking in gains too early, we felt it was the prudent thing
to do from a risk management perspective, given the extent of the re-rating
across a few stocks.
China also highlighted how fast market conditions can turn, and why we needed
to remain grounded and avoid over-exuberance. Among your holdings, Kingdee
International Software, a provider of enterprise software solutions, rallied
early in 2025 as sentiment towards China improved and the business delivered
on its growth targets, but later corrected on concerns around the disruption
from agentic AI. Yantai China Pet Foods re‑rated on strong results but
subsequently faced headwinds from perceived tariff risks and profit‑taking.
NetEase Cloud Music also rose on solid results amid a tepid consumer
environment, before falling back on limited near‑term catalysts and rising
competition from ByteDance's 'Soda Music' platform, which targets the low-end
and free user segment.
Given the above, we turned slightly more defensive and added selectively to
inexpensive names in Southeast Asia. One example is Thai Life Insurance, one
of Thailand's leading life insurers with a large agency network and competent
management (please see the case study on Thai Life Insurance). Elsewhere, we
also introduced Chifeng Jilong Gold Mining, a quality Chinese gold producer
with meaningful scale and first-quartile cost competitiveness. It generates
strong returns and solid margins, supported by a robust balance sheet and
disciplined capital management, and trading at a significant discount to
peers.
We also looked for attractive growth opportunities in companies like WuXi XDC
and ASMPT, both listed in Hong Kong. WuXi XDC helps biotech and pharmaceutical
companies make complex advanced drug treatments, especially a type of targeted
cancer drug that delivers medicine directly to tumour cells. Record project
wins and a rising order backlog underpin its solid earnings. Its integrated
platform, technology focus, and expansion into Singapore support scale,
execution, and exposure to long‑term biotech growth without single‑drug
risk. Singapore‑based ASMPT is well placed to benefit from rising demand for
AI and high‑bandwidth memory. It is gaining share in advanced packaging for
semiconductors, while its more legacy business is showing early signs of
recovery.
In India, the portfolio's underweight position versus the benchmark proved
beneficial during a period of market weakness, offsetting declines in some of
your holdings where earnings growth failed to meet high expectations. Affle 3i
underperformed as risk appetite weakened for small and mid‑caps and the rise
of agentic AI hurt sentiment towards software-related businesses.
Cholamandalam Financial Holdings was weighed down by concerns over rising
credit costs and slower industry growth in the financial sector. Vijaya
Diagnostic Centre lagged after a slowdown in its core pathology business off a
high base. Despite the short-term weakness, India remains our largest country
exposure, and we continue to look for opportunities. During the period, we
added Karur Vysya Bank, a regional bank with strong asset quality, low credit
costs and high provision coverage. The bank delivers solid returns, strong
cost efficiency, and steady growth through branch expansion and higher CASA
penetration, making it a reliable long‑term compounder.
Outlook
After a strong 2025 and a solid start to 2026, we remain constructive but
measured. Earnings in general still look healthy for the coming year, with our
holdings still expected to deliver a similar level of earnings growth of
10-15%, with portfolio diversification across themes, sectors and geographies
providing an additional margin of safety.
However, geopolitical risks and policy uncertainty argue against complacency.
Trade tensions, shifting industrial policy and uneven domestic recoveries mean
that outcomes are likely to diverge further across countries and sectors.
Another meaningful risk is the increasing reliance of markets on the AI
narrative and as a result the rising earnings expectations for companies in
the associated supply chain. While we are still positive on Asian technology
stocks as we move into 2026, particularly in the hardware space given their
role as an enabler of all AI applications, we have taken significant profits
and we are looking at other areas where we see clearer upside.
More broadly, our focus is less on headline growth but more on identifying
areas where we see potential mispriced opportunities. In India, the earnings
downgrade cycle appears to have bottomed as macro conditions turn more
supportive, while valuations are now more palatable. We retain our underweight
but continue monitoring for clearer signs of earnings stability to build up
existing positions.
In China, the opportunity lies at the stock level and we remain extremely
selective. We prefer newer consumption trends, such as music subscriptions,
travel and pet food, over traditional staples, and we are building exposure to
automation and productivity themes such as robotics and advanced technology.
At the portfolio level, diversification across countries and sectors provides
exposure to a wide range of long‑term growth themes in Asia. We have focused
on high‑quality companies with predominantly domestic growth drivers that
can perform through difficult market conditions. This is complemented by a
select group of export‑oriented businesses that are global leaders in what
they do, with unique products or services.
Over its 30‑year history, the Company has delivered average net asset value
growth exceeding 12% per annum, underpinned by disciplined stock selection and
a focus on earnings resilience. As dispersion widens across Asian markets, the
region's often-overlooked small-cap compounders offer an increasingly
attractive source of both growth and diversification, but returns will
increasingly hinge on active stock selection and valuation discipline.
Gabriel Sacks and Xin-Yao Ng
Aberdeen
27 March 2026
Disclosures
Investment Objective and Policy
Investment Objective
The Company aims to maximise total return to shareholders over the long term
from a portfolio made up predominantly of quoted smaller companies in the
economies of Asia excluding Japan.
Investment Policy
The Company may invest in a diversified portfolio of securities (including
equity shares, preference shares, convertible securities, warrants and other
equity-related securities) predominantly issued by quoted smaller companies
spread across a range of industries and economies in the Investment Region.
The Investment Region includes Bangladesh, Cambodia, China, Hong Kong, India,
Indonesia, South Korea, Laos, Malaysia, Myanmar, Pakistan, The Philippines,
Singapore, Sri Lanka, Taiwan, Thailand and Vietnam, together with such other
economies in Asia as approved by the Board.
The Company may invest up to 10% of its net assets in collective investment
schemes, and up to 10% of its net assets in unquoted companies, calculated at
the time
of investment.
The Company may also invest in companies traded on stock markets outside the
Investment Region provided over 75% of each company's consolidated revenue,
operating income or pre-tax profit is earned from trading in the Investment
Region or the company holds more
than 75% of their consolidated net assets in the Investment Region.
When the Board considers it in shareholders' interests, the Company reserves
the right to participate in rights issues by an investee company.
Risk Diversification
The Company will invest no more than 15% of its gross assets in any single
holding including listed investment companies at the time of investment.
Gearing
The Board is responsible for determining the gearing strategy for the Company.
Gearing is used selectively to leverage the Company's portfolio in order to
enhance returns where and to the extent this is considered appropriate to do
so. Gearing is subject to a maximum gearing level of 25% of NAV at the time of
draw down.
Principal Risks and Uncertainties
The principal risks and uncertainties affecting the Company are set out in
detail on pages 19 and 20 of the Annual Report and Financial Statements for
the year ended 31 July 2025 and these have not changed.
They can be summarised under the following headings:
- Shareholder and Stakeholder Risk;
- Investment Risk;
- Operational Risk;
- Governance & Regulatory risk; and
- Major Events and Geopolitical risk.
Macroeconomic risks arising from geopolitical uncertainty such as the ongoing
conflicts in Ukraine and the Middle East as well as tensions in Taiwan
continue to present a significant risk to world markets. In addition to the
risks listed above, the Board is also very conscious of the risks emanating
from increased environmental, social and governance challenges. As climate
change pressures mount, the Board continues to monitor, through its Manager,
the potential risk that investee companies may fail to keep pace with the
appropriate rates of change and adaption. In all other respects, the Company's
principal risks and uncertainties have not changed materially since the date
of the 2025 Annual Report.
Going Concern
The Directors have conducted a thorough review of the Company's ability to
continue as a going concern and have also considered the revenue and ongoing
expenses forecasts for the current year.
The Board monitors the Company's covenant compliance and gearing levels
regularly and is satisfied that there is sufficient headroom in place and
flexibility if required. The Board has set overall limits for borrowing and
reviews regularly the Company's level of gearing, cash flow projections and
compliance with banking covenants.
The Company's assets consist of a diverse portfolio of listed equities which
in most circumstances are realisable within a short timescale. The Directors
have a reasonable expectation that the Company has adequate resources to
continue in operational existence for the next 12 months. Accordingly, the
Board continues to adopt the going concern basis in preparing the financial
statements.
Directors' Responsibility Statement
The Directors are responsible for preparing this half-yearly financial report
in accordance with applicable law and regulations. The Directors confirm that
to the best of
their knowledge:
- the condensed set of financial statements contained within the half-yearly
financial report has been prepared in accordance with Financial Reporting
Standard 104 (Interim Financial Reporting);
- the Interim Board Report (constituting the interim management report)
includes a fair review of the information required by rule 4.2.7R of the UK
Listing Authority Disclosure Guidance and Transparency Rules (being an
indication of important events that have occurred during the first six months
of the financial year and their impact on the condensed set of financial
statements and a description of the principal risks and uncertainties for the
remaining six months of the financial year) and 4.2.8R (being related-party
transactions that have taken place during the first six months of the
financial year and that have materially affected the financial position of the
Company during that period; and any changes in the related party transactions
described in the last Annual Report that could so do).
Krishna Shanmuganathan
Chair,
27 March 2026
Ten Largest Investments
As at 31 January 2026
Hansol Chemical Precision Tsugami China
3.6% Hansol Chemical is a diversified electronic materials supplier to the 3.5% The company is an established maker of high-precision machine tools and its
semiconductor industry, which is globally competitive and a leader in several
emphasis on innovation and quality, along with its strong customer
Total assets segments, supported by strong technical know-how, a good history of product Total assets relationships, positions it well for sustained growth in the Chinese market.
innovation and a diversified product suite that adds stability to the
business.
Taiwan Union Mobile World
Investment Corporation
3.1% Taiwan Union Technology Corp is a leading maker of copper clad laminate (CCL), 3.1%
a key base material used to make printed circuit boards. With a strong
Mobile World is Vietnam's biggest retailer with a broad store network, with
Total assets commitment to Total assets core areas in mobile devices and consumer electronics. This is supported by
R&D, it has moved up the value chain its first mover advantage in a nascent modern trade sector and its commitment
through the years. to customer service.
Chroma ATE Yantai China Pet Foods
3.0% Chroma ATE is a leading provider of precision test and measurement 2.5% Yantai Pet Foods is a pet food manufacturer with established credentials and a
instruments. The company has a strong market position due
diversified customer base of global brands. In addition, the company is
Total assets
to its innovative products and solutions, Total assets looking to build its own local brand to tap into rising pet ownership and
which are widely used in various industries such as electronics, automotive, demand for premium products in China.
and renewable energy.
Accton Technology Asian Terminals
2.4% Accton Technology specialises in making high-speed networking switches and 2.4% Asian Terminals is an operator, developer and investor of port terminals in
selling them to US hyperscalers and networking equipment brands, supported by
the Philippines. It has facilities in both Manila South Harbour and the Port
Total assets its R&D edge and broad product portfolio. Total assets of Batangas, capturing the economic activity of its hinterland which arguably
is the epi-centre of trade in the Philippines.
Zhejiang M.P. Evans Group
Shuanghuan Driveline
2.4%
2.3% MP Evans is a producer of sustainable Indonesian palm oil, with its prospects
Zhejiang Shuanghuan is a leading manufacturer of gears and other
underpinned by healthy supply and demand dynamics, a net-cash balance sheet to
Total assets
transmission systems. Its strong engineering capabilities and commitment to Total assets support shareholder returns, and margin expansion as it moves to mill its own
quality have earned it a solid reputation in the market where it is the crops.
leading supplier to China's electric vehicle industry.
Portfolio
As at 31 January 2026
Total
Valuation assets
Company Industry Country £'000 %
Hansol Chemical Chemicals South Korea 22,741 3.6
Precision Tsugami China Machinery China 21,961 3.5
Taiwan Union Technology Corp Electronic Equipment, Instruments & Components Taiwan 19,615 3.1
Mobile World Investment Corporation Specialty Retail Vietnam 19,435 3.1
Chroma ATE Electronic Equipment, Instruments & Components Taiwan 18,790 3.0
Yantai China Pet Foods Food Products China 15,304 2.5
Accton Technology Telecommunications Equipment Taiwan 14,975 2.4
Asian Terminals Transportation Infrastructure Philippines 14,768 2.4
Zhejiang Shuanghuan Driveline - A Auto Components China 14,746 2.4
M.P. Evans Group Food Products United Kingdom 14,585 2.3
Top ten investments 176,920 28.3
Chung-Hsin Electric & Machinery Electronic Equipment, Instruments & Components Taiwan 14,097 2.3
Chifeng Jilong Gold Mining Metals & Mining China 13,771 2.2
AKR Corporindo Oil, Gas & Consumable Fuels Indonesia 13,618 2.2
360 One Wam Capital Markets India 13,480 2.2
HD Hyundai Electric Electronic Equipment, Instruments & Components South Korea 13,397 2.1
Asia Vital Components Technology Hardware, Storage & Peripherals Taiwan 13,342 2.1
Sino-American Silicon Products Semiconductors & Semiconductor Equipment Taiwan 12,682 2.0
Classys Health Care Equipment & Supplies South Korea 12,636 2.0
LEENO Industrial Semiconductors & Semiconductor Equipment South Korea 12,175 1.9
HD Korea Shipbuilding & Offshore Engineering Machinery South Korea 11,934 1.9
Top twenty investments 308,052 49.2
John Keells Holdings Industrial Conglomerates Sri Lanka 11,824 1.9
HD Hyundai Marine Solution Electronic Equipment, Instruments & Components South Korea 11,750 1.9
Makalot Industrial Textiles, Apparel & Luxury Goods Taiwan 11,501 1.8
CapitaLand India Trust Real Estate Management & Development Singapore 10,963 1.8
Mega Lifesciences (Foreign) Pharmaceuticals Thailand 10,653 1.7
MPI Corporation Semiconductors & Semiconductor Equipment Taiwan 10,599 1.7
Atour Lifestyle Hotels, Restaurants & Leisure China 10,577 1.7
NetEase Cloud Music Entertainment China 10,425 1.7
KEI Industries Electronic Equipment, Instruments & Components India 10,278 1.6
Thai Life Insurance Insurance Thailand 10,241 1.6
Top thirty investments 416,863 66.6
Military Commercial Joint Stock Bank Banks Vietnam 10,156 1.6
Cholamandalam Financial Consumer Finance India 10,018 1.6
Affle India Media India 9,857 1.6
Aegis Logistics Oil, Gas & Consumable Fuels India 9,526 1.5
FPT Corporation IT Services Vietnam 9,507 1.5
Hang Lung Properties Real Estate Management & Development Hong Kong 9,248 1.5
KFin Technologies Capital Markets India 9,170 1.5
UNO Minda Auto Components India 8,913 1.4
WuXi XDC Life Sciences Tools & Services China 8,876 1.4
Bank OCBC NISP Banks Indonesia 8,729 1.4
Top forty investments 510,863 81.6
Aptus Value Housing Finance Financial Services India 8,685 1.4
Vijaya Diagnostic Centre Health Care Providers & Services India 8,555 1.4
Parkwaylife Real Estate Real Estate Management & Development Singapore 7,996 1.3
Century Pacific Food Food Products Philippines 7,750 1.2
United Plantations Food Products Malaysia 7,720 1.2
AvePoint Software Singapore 7,709 1.2
Bharti Hexacom Telecommunications Service Providers India 7,407 1.2
Hang Lung Group Real Estate Management & Development Hong Kong 7,167 1.2
ASMPT Ltd Semiconductors & Semiconductor Equipment Hong Kong 7,029 1.1
Karur Vysya Bank Banks India 6,736 1.1
Top fifty investments 587,617 93.9
ITC Hotels Hotels, Restaurants & Leisure India 6,701 1.1
Phoenix Mills Real Estate Management & Development India 6,503 1.0
J.B. Chemicals & Pharmaceuticals Pharmaceuticals India 6,446 1.0
Aegis Vopak Terminals Oil, Gas & Consumable Fuels India 6,019 1.0
Hesai Group Auto Components China 4,409 0.7
Indosat Wireless Telecommunication Services Indonesia 4,346 0.7
Philippine Seven Consumer Staples Distribution Philippines 4,176 0.7
Hesai Group (ADS) Auto Components China 4,071 0.6
Newgen Software Technologies Software India 3,501 0.6
Kingdee International Software Software Hong Kong 2,999 0.5
Top sixty investments 636,788 101.8
Humanica (Foreign) Professional Services Thailand 2,775 0.4
Ultrajaya Milk Industry & Trading Food Products Indonesia 2,049 0.3
Poya International Broadline Retail Taiwan 436 0.1
First Sponsor Group (Warrants 21/03/2029) Real Estate Management & Development Singapore 61 -
Total investments 642,109 102.6
Net current liabilities (16,477) (2.6)
Total assets(B) 625,632 100.0
(A) Holding includes investment in both common and preference lines.
(B) Total assets less current liabilities.
Investment Case Studies
Hang Lung Properties
In which year did we first invest?
May 2024
% Holding:
1.5%
Where is their head office?
Hong Kong
What does the company do?
Hang Lung Properties (HLP) is a leading real estate developer and landlord. It
primarily builds, owns, and manages world-class commercial complexes, focusing
on high-end luxury shopping malls and office buildings in prime locations
across mainland China and Hong Kong.
Why do we like the company?
HLP operates some of the highest-quality shopping malls in mainland China. We
like the company because it is well-positioned to benefit from the growing
spending power of Chinese consumers. Its malls are known for housing top-tier
international luxury brands, and we are seeing positive news from across its
portfolio.
The Chanel store at its top luxury mall Plaza 66 in Shanghai has completed a
major renovation, restoring its full multi storey format for top tier
customers. During the works, sales were constrained by a much smaller
temporary space, so a clear rebound in sales is expected. HLP also opened new
Laopu stores in Shanghai, with strong sales contributions from day one,
underlining the continued appeal of its malls to leading brands like Laopu, a
gold jeweller. At Plaza 66, an asset upgrade is underway that will lift retail
space by around 10%.
Looking ahead, a new luxury mall in Hangzhou is set to open in 2026 and is
already more than 80% pre committed. This should mark the end of a heavy
investment phase, with capital spending falling and cash flow improving,
supporting a potential dividend recovery from 2027-28.
Management has been prudent in adopting a defensive approach to protect the
business through the recent economic slowdown. They have adjusted leases to
lock in more fixed base rent and rely less on rent linked to store sales. This
strategy has helped stabilise rental income, making it more resilient, even as
retail conditions remain challenging.
At current levels, the shares trade well below the value of its underlying
properties and offer a dividend yield of more than 5%, which we believe is
supported by steady rental income.
How has the company performed since we invested in it?
Since we invested in it in May 2024, the share price of HLP has returned
33.40% in GBP terms (from 1 June 2024 to 31 January 2026), compared to the
MSCI AC Asia ex Japan Small Cap Index return of 19.24%. The stock has
benefited from improving investor sentiment as tenant sales in mainland China
have stabilised and begun to grow again, and as the company's capital spending
cycle has passed its peak.
Alongside HLP, we hold a complementary position in parent Hang Lung Group
(HLG), at around an additional 1.0%. HLG trades at an even lower valuation and
has a stronger balance sheet, while the scrip dividend from its subsidiary HLP
has enabled the parent to both maintain its dividend payouts and steadily
increase its stake in the core operating asset, which is an alignment that we
are comfortable with.
While challenges remain, particularly in the office segment where supply is
still elevated, we believe the market is increasingly recognising that HLP's
core mall portfolio is stabilising. With improving retail momentum, new
project contributions and an attractive dividend yield, we remain positive on
its medium-term prospects.
On a broader level, we are positive on the outlook for consumption in China,
given the large amounts of excess household savings. Although consumption
growth has been sluggish, we believe that we are near the bottom. As consumer
confidence continues to improve, we are likely to see a gradual recovery from
here. As the cycle turns from contraction to stabilisation, this should also
benefit HLP, which has some of the best-located malls across China.
Thai Life Insurance Public Co. Ltd
In which year did we first invest?
September 2025
% Holding:
1.6%
Where is their head office?
Bangkok, Thailand
What does the company do?
Thai Life Insurance is among the major life insurers in Thailand. It offers
life, health and savings products mainly through its own sales agents,
complemented by partnerships with banks (bancassurance). It is the
third-largest insurer in the country, by gross written premiums, and it has
built a strong franchise in products that have higher margins, such as
protection policies and add-on or rider coverage.
Why do we like the company?
Thai Life has one of the strongest life insurance franchises in Thailand,
supported by experienced management and the biggest agency force across the
country.
While peers rely on bancassurance, Thai Life's agency-led model means that it
has more control over sales quality and product mix while enhancing
cross-selling opportunities. The personal touch is also important as agents
can build long-term relationships with clients and act as a trusted adviser
for protection and health insurance. The business is further backed by
conservative and long-standing promoters, whom we trust because of their focus
on balance sheet strength and franchise value.
On its product mix, the company is improving its profitability by selling more
higher-margin protection and health insurance, rather than lower-margin
savings policies. These protection products are also less affected by changes
in interest rates, which makes its earnings more resilient if interest rates
stay low.
On the growth front, we see opportunity in health insurance. Market leader AIA
plans to stop selling certain full-coverage health policies from March 2026
and shift to co-payment structures where customers pay part of the cost
themselves. Thai Life will continue to offer full-coverage health plans whilst
maintaining underwriting discipline, and with one of the largest agency
networks in Thailand it is well placed to capture customers who prefer broader
insurance coverage. Health products with riders or add-ons are typically more
profitable, so any growth in this segment should support future earnings.
Thai Life's prospects and outlook are supported by a very strong capital
position. As of December 2025, Thai Life's capital adequacy ratio (CAR) was
555.9%. While this was 64 percentage points lower than a year earlier, it is
still far above the 140% regulatory minimum. The drop mainly reflected a
one-off boost in December 2024 linked to an investment vehicle change.
In addition, a large share of its earnings (around 80%) comes from insurance
and underwriting, not investment income. This shows the business is a
high-quality insurer, rather than one relying on market returns. Thai Life's
cash generation is also strong, with expected undiscounted cash flows (after
tax) from the existing book at close to 100% of embedded value, and meaningful
cash coming through in the first one to five years.
Its shares currently offer a dividend yield of around 5%, and we believe this
is sustainable because of its steady earnings and a sizeable existing book of
business that provides good visibility over future profits.
How has the company performed since we invested in it?
Since we invested in it in September 2025, the share price of Thai Life
Insurance has returned 15.62% in GBP terms (from 1 October 2025 to 31 January
2026), compared to the MSCI AC Asia ex Japan Small Cap Index's gain of about
5.46%. The stock has benefited from improving investor sentiment as the market
recognises its resilient premium growth which has meaningfully outpaced the
industry average and its deeply discounted valuation. While the final quarter
of 2025 presented slight headwinds, we believe the market is correctly looking
past this short-term softness to focus on the company's sustainable profit
momentum and unique market share opportunities in 2026.
Condensed Statement of Comprehensive Income (unaudited)
Six months ended Six months ended
31 January 2026 31 January 2025
Revenue Capital Total Revenue Capital Total
Notes £'000 £'000 £'000 £'000 £'000 £'000
Gains on investments - 57,457 57,457 - 32,906 32,906
Income 2 4,787 - 4,787 5,431 - 5,431
Exchange losses - (430) (430) - (197) (197)
Investment management fees (469) (1,408) (1,877) (404) (1,212) (1,616)
Administrative expenses (714) - (714) (655) - (655)
Net return before finance costs and taxation 3,604 55,619 59,223 4,372 31,497 35,869
Finance costs (342) (1,025) (1,367) (252) (756) (1,008)
Net return before taxation 3,262 54,594 57,856 4,120 30,741 34,861
Taxation 3 (381) 2,304 1,923 (249) 840 591
Net return after taxation 2,881 56,898 59,779 3,871 31,581 35,452
Return per share (pence) 4
Basic 2.02 39.83 41.85 2.55 20.79 23.34
Diluted 2.02 39.83 41.85 2.42 19.42 21.84
The total column of this statement represents the profit and loss account of
the Company.
There is no other comprehensive income and therefore the net return after
taxation is also the total comprehensive income for the period.
All revenue and capital items in the above statement derive from continuing
operations.
The accompanying notes are an integral part of the condensed financial
statements.
Condensed Statement of Financial Position (unaudited)
As at As at
31 January 2026 31 July 2025
Notes £'000 £'000
Non-current assets
Investments at fair value through profit or loss 642,109 620,951
Current assets
Debtors and prepayments 8,250 5,728
Cash and cash equivalents 4,479 12,512
12,729 18,240
Creditors: amounts falling due within one year
Other creditors (4,300) (9,979)
Bank Loan 7 (24,906) (34,871)
(29,206) (44,850)
Net current liabilities (16,477) (26,610)
Total assets less current liabilities 625,632 594,341
Non-current liabilities
Creditors: amounts falling due after more than one year
3.05% Senior Unsecured Loan Note 2035 6 (29,917) (29,913)
Deferred tax liability on Indian capital gains (2,939) (5,835)
(32,856) (35,748)
Net assets 592,776 558,593
Capital and reserves
Called up share capital 8 10,965 10,965
Capital redemption reserve 2,062 2,062
Share premium account 90,962 90,962
Capital reserve 471,018 435,081
Revenue reserve 17,769 19,523
Total shareholders' funds 592,776 558,593
Net asset value per share (pence) 421.69 381.72
The accompanying notes are an integral part of the condensed financial
statements.
Condensed Statement of Changes in Equity (unaudited)
Six months ended 31 January 2026
Capital Share Equity
Share redemption premium component Capital Revenue
capital reserve account CULS 2025 reserve reserve Total
Notes £'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 31 July 2025 10,965 2,062 90,962 - 435,081 19,523 558,593
Net return after taxation - - - - 56,898 2,881 59,779
Purchase of own shares to treasury 8 - - - - (20,961) - (20,961)
Dividends paid 5 - - - - - (4,635) (4,635)
Balance at 31 January 2026 10,965 2,062 90,962 - 471,018 17,769 592,776
Six months ended 31 January 2025
Capital Share Equity
Share redemption premium component Capital Revenue
capital reserve account CULS 2025 reserve reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Balance at 31 July 2024 10,436 2,062 60,495 1,057 409,798 18,412 502,260
Conversion of 2.25% CULS 2025 8 1 - 45 - - - 46
Net return after taxation - - - - 31,581 3,871 35,452
Purchase of own shares to treasury 8 - - - - (9,651) - (9,651)
Dividends paid 5 - - - - - (6,416) (6,416)
Balance at 31 January 2025 10,437 2,062 60,540 1,057 431,728 15,867 521,691
The accompanying notes are an integral part of the condensed financial
statements.
Condensed Statement of Cash Flows (unaudited)
Six months ended Six months ended
31 January 2026 31 January 2025
£'000 £'000
Cash flows from operating activities
Net return before finance costs and tax 59,223 35,869
Adjustments for:
Dividend income (4,592) (5,228)
Interest income (195) (203)
Dividends received 5,297 5,110
Interest received 235 219
Interest paid (1,207) (874)
Gains on investments (57,457) (32,906)
Foreign exchange movements 430 197
Decrease in prepayments 38 1
Increase in other debtors - (6)
Increase in other creditors 822 4
Overseas withholding tax suffered (308) (55)
Net cash inflow from operating activities 2,286 2,128
Cash flows from investing activities
Purchase of investments (137,981) (97,542)
Sales of investments 164,284 111,249
Capital gains tax on sales (592) (1,836)
Net cash inflow from investing activities 25,711 11,871
Cash flows from financing activities
Purchase of own shares for treasury (20,965) (9,601)
Repayment of loan (10,000) -
Equity dividends paid (4,635) (6,416)
Net cash outflow from financing activities (35,600) (16,017)
Decrease in cash and cash equivalents (7,603) (2,018)
Analysis of changes in cash and cash equivalents
Opening balance 12,512 12,703
Decrease in cash and cash equivalents (7,603) (2,018)
Foreign exchange movements (430) (197)
Closing balance 4,479 10,488
Represented by:
Money market funds 3,853 5,833
Cash and short term deposits 626 4,655
4,479 10,488
The accompanying notes are an integral part of the condensed financial
statements.
Notes to the Financial Statements
For the six months ended 31 January 2026
1. Accounting policies
Basis of accounting. The condensed financial statements have been prepared in
accordance with Financial Reporting Standard 104 (Interim Financial Reporting)
and with the Statement of Recommended Practice (SORP) for 'Financial
Statements of Investment Trust Companies and Venture Capital Trusts', issued
in July 2022 (The AIC SORP). They have also been prepared on a going concern
basis and on the assumption that approval as an investment trust will continue
to be granted.
2. Income
Six months ended Six months ended
31 January 2026 31 January 2025
£'000 £'000
Income from investments
Overseas dividends 4,399 5,003
UK dividend income 193 225
4,592 5,228
Other income
Deposit interest 22 28
Interest from money market funds 173 175
195 203
Total income 4,787 5,431
3. Taxation
The taxation charge for the period allocated to revenue represents withholding
tax suffered on overseas dividend income. The taxation charge for the period
allocated to capital represents capital gains tax arising on the sale of
Indian equity investments.
4. Return per share
Six months ended Six months ended
31 January 2026 31 January 2025
p p
Basic
Revenue return 2.02 2.55
Capital return 39.83 20.79
Total return 41.85 23.34
The figures above are based on the following:
£'000 £'000
Revenue return 2,881 3,871
Capital return 56,898 31,581
Total return 59,779 35,452
Weighted average number of shares in issue(A) 142,834,610 151,924,962
Six months ended Six months ended
31 January 2026 31 January 2025
Diluted(B) p p
Revenue return 2.02 2.42
Capital return 39.83 19.42
Total return 41.85 21.84
The figures above are based on the following:
£'000 £'000
Revenue return 2,881 3,982
Capital return 56,898 31,925
Total return 59,779 35,907
Number of dilutive shares - 12,472,752
Diluted shares in issue(AB) 142,834,610 164,397,714
(A) Calculated excluding shares held in treasury.
(B) For the period ended 31 January 2025 calculation of the diluted total,
revenue and capital returns per Ordinary share was carried out in accordance
with IAS 33, "Earnings per Share". For the purpose of calculating total,
revenue and capital returns per Ordinary share, the number of Ordinary shares
used was the weighted average number used in the basic calculation plus the
number of Ordinary shares deemed to be issued for no consideration on exercise
of all 2.25% Convertible Unsecured Loan Stock 2025 (CULS). The calculations
indicated that the exercise of CULS would result in an increase in the
weighted average number of Ordinary shares of 12,472,752 to 164,397,714)
Ordinary shares.
For the six months ended 31 January 2025 the assumed conversion for potential
Ordinary shares was dilutive to the revenue return per Ordinary share and
non-dilutive to the capital return per Ordinary share. Where dilution occurs,
the net returns are adjusted for interest charges and issue expenses relating
to the CULS (£460,000). Total earnings for the period are tested for
dilution. Once dilution has been determined individual revenue and capital
earnings are adjusted.
5. Dividends
Six months ended Six months ended
31 January 2026 31 January 2025
£'000 £'000
Special dividend for 2025 - £nil (2024 - 1.0p) - 1,511
Fourth interim dividend for 2025 - 1.63p (2024 - 1.62p) 2,373 2,488
First interim dividend for 2026 - 1.6p (2025 - 1.6p) 2,262 2,417
4,635 6,416
6. Senior Unsecured Loan Note
On 1 December 2020 the Company issued a £30,000,000 15 year Loan Note at a
fixed rate of 3.05%. Interest is payable in half yearly instalments in June
and December and the Loan Note is due to be redeemed at par on 1 December
2035. The issue costs of £118,000 will be amortised over the life of the loan
note. The Company has complied with the Note Purchase Agreement that the ratio
of total borrowings to adjusted net assets will not exceed 0.20 to 1.00, that
the ratio of total borrowings to adjusted net liquid assets will not exceed
0.60 to 1.00, that net tangible assets will not be less than £225,000,000 and
that the minimum number of listed assets will not be less than 40.
The fair value of the Senior Unsecured Loan Note as at 31 January 2026 was
£26,998,000, the value being based on a comparable quoted debt security.
7. Bank Loan
On 30 May 2025 the Company entered into a two year, £50,000,000
multi-currency revolving bank credit facility with the Bank of Nova Scotia,
London Branch. The agreement of this facility incurred costs of £140,000
which will be amortised over the life of the agreement.
At 31 January 2026, the Company had drawn down £25,000,000 at a rate of 4.92%
(31 July 2025 - £35,000,000 drawn down at a rate of 5.41%) with a one month
maturity date of 2 February 2026.
8. Called up share capital
During the six months ended 31 January 2026 5,765,000 Ordinary shares were
bought back to be held in treasury at a total cost of £20,961,000 (31 January
2025 3,355,000 Ordinary shares were bought back to be held in treasury at a
total cost of £9,651,000).
During the six months ended 31 January 2026 no Ordinary shares were issued. In
the year ended 31 July 2025 - 10,578,870 Ordinary shares were issued after
£30,996,322 (£19,795,920 by holders' request and £11,200,402 by request
from the Trustee) nominal amount of 2.25% Convertible Unsecured Loan Stock
2025 were converted at 293.0p each. Additionally, £5,578,398 nominal amount
of CULS was redeemed by the Trustee following requests from CULS holders who
did not wish to exercise their conversion right. The total consideration
received was £nil.
At the end of the period there were 219,300,178 (31 July 2025 - 219,300,178)
Ordinary shares in issue, of which 78,729,590 (31 July 2025 - 72,964,590) were
held in treasury.
Subsequent to the period end, 805,000 Ordinary shares have been bought back to
be held in treasury at a cost of £3,418,000.
9. Net asset value per share
As at As at
31 January 2026 31 July 2025
Net assets attributable £592,776,000 £558,593,000
Number of shares in issue(A) 140,570,588 146,335,588
Net asset value per share 421.69p 381.72p
(A) Excludes shares in issue held in treasury.
10. Transaction costs
During the period expenses were incurred in acquiring or disposing of
investments classified as fair value through profit or loss. These have been
expensed through capital and are included within gains on investments in the
Condensed Statement of Comprehensive Income. The total costs were as follows:
Six months ended Six months ended
31 January 2026 31 January 2025
£'000 £'000
Purchases 232 119
Sales 375 239
607 358
11. Analysis of changes in net debt
At At
31 July Currency Cash Non-cash 31 January
2025 differences flows movements 2026
£'000 £'000 £'000 £'000 £'000
Cash and cash equivalents 12,512 (430) (7,603) - 4,479
Debt due within one year (34,871) - 10,000 (35) (24,906)
Debt due after more than one year (35,748) - - 2,892 (32,856)
(58,107) (430) 2,397 2,857 (53,283)
At At
31 July Currency Cash Non-cash 31 January
2024 differences flows movements 2025
£'000 £'000 £'000 £'000 £'000
Cash and cash equivalents 12,703 (197) (2,018) - 10,488
Debt due within one year (36,368) - - (79) (36,447)
Debt due after more than one year (40,197) - - 2,672 (37,525)
(63,862) (197) (2,018) 2,593 (63,484)
A statement reconciling the movement in net funds to the net cash flow has not
been presented as there are no differences from the above analysis.
12. Fair value hierarchy
FRS 102 requires an entity to classify fair value measurements using a fair
value hierarchy that reflects the significance of the inputs used in making
the measurements.
Level 1: unadjusted quoted prices in an active market for identical assets or
liabilities that the entity can access at the measurement date.
Level 2: inputs other than quoted prices included within Level 1 that are
observable (ie developed using market data) for the asset or liability, either
directly or indirectly.
Level 3: inputs are unobservable (ie for which market data is unavailable) for
the asset or liability.
The financial assets measured at fair value in the Condensed Statement of
Financial Position are grouped into the fair value hierarchy at 31 January
2026 as follows:
Level 1 Level 2 Level 3 Total
As at 31 January 2026 £'000 £'000 £'000 £'000
Financial assets at fair value through profit or loss
Quoted equities 642,048 - - 642,048
Quoted warrants - 61 - 61
Net fair value 642,048 61 - 642,109
Level 1 Level 2 Level 3 Total
As at 31 July 2025 £'000 £'000 £'000 £'000
Financial assets at fair value through profit or loss
Quoted equities 620,890 - - 620,890
Quoted warrants - 61 - 61
Net fair value 620,890 61 - 620,951
Quoted equities. The fair value of the Company's investments in quoted
equities has been determined by reference to their quoted bid prices at the
reporting date. Quoted equities included in Fair Value Level 1 are actively
traded on recognised stock exchanges.
Quoted preference shares and quoted warrants. The fair value of the Company's
investments in quoted preference shares and quoted warrants has been
determined by reference to their quoted bid prices at the reporting date.
Investments categorised as Level 2 are not considered to trade as actively as
Level 1 assets.
Six months ended Year ended
31 January 2026 31 July 2025
Level 3 Financial assets at fair value through profit or loss £'000 £'000
Opening fair value - 2,438
Transfer from level 1 - -
Total gains or losses included in losses on investments in the Statement of
Comprehensive Income:
- assets disposed of during the year - (2,438)
- assets held at the end of the year - -
Closing balance - -
13. Related party disclosures
Transactions with the Manager. The investment management fee is payable
monthly in arrears based on the market capitalisation of the Company
multiplied by the number of shares in issue (less those held in treasury) at
the month end. The annual management fee has been charged at 0.85% for the
first £250,000,000, 0.60% for the next £500,000,000 and 0.50% over
£750,000,000. During the period £1,877,000 (31 January 2025 - £1,616,000)
of investment management fees were charged, with a balance of £1,260,000 (31
January 2025 - £549,000) being payable to aFML at the period end. Investment
management fees are charged 25% to revenue and 75% to capital.
The Company also has a management agreement with aFML for the provision of
both administration and promotional activities services. The administration
fee is payable quarterly in advance and is adjusted annually to reflect the
movement in the Retail Price Index. It is based on a current annual amount of
£130,000 (31 January 2025 - £125,000). During the period £65,000 (31
January 2025 - £65,000) of fees were charged, with a balance of £65,000 (31
January 2025 - £94,000) payable to aFML at the period end. The promotional
activities costs are based on a current annual amount of £290,000 (31 January
2025 - £263,000), payable quarterly in arrears. During the period £108,000
(31 January 2025 - £107,000) of fees were charged, with a balance of £82,000
(31 January 2025 - £73,000) being payable to aFML at the period end.
14. Segmental information
The Company is engaged in a single segment of business, which is to invest in
equity securities and debt instruments. All of the Company's activities are
interrelated, and each activity is dependent on the others. Accordingly, all
significant operating decisions are based on the Company as one segment.
15. Half-Yearly Report
The financial information in this Report does not comprise statutory accounts
within the meaning of Section 434 - 436 of the Companies Act 2006. The
financial information for the year ended 31 July 2025 has been extracted from
published accounts that have been delivered to the Registrar of Companies and
on which the report of the auditors was unqualified and contained no statement
under Section 498 (2), (3) or (4) of the Companies Act 2006. The condensed
interim financial statements have been prepared using the same accounting
policies as the preceding annual financial statements.
16. This Half-Yearly Report was approved by the Board and authorised for issue on
27 March 2026.
Alternative Performance Measures ("APMs")
Alternative Performance Measures ("APMs") are numerical measures of the
Company's current, historical or future performance, financial position or
cash flows, other than financial measures defined or specified in the
applicable financial framework. The Company's applicable financial framework
includes FRS 102 and the AIC SORP. The Directors assess the Company's
performance against a range of criteria which are viewed as particularly
relevant for closed-end investment companies.
Discount to net asset value per Ordinary share
The difference between the share price and the net asset value per Ordinary
share expressed as a percentage of the net asset value per Ordinary share.
31 January 2026 31 July 2025
NAV per Ordinary share (p) a 421.69 381.72
Share price (p) b 384.00 343.00
Discount (a-b)/a 8.9% 10.1%
Net gearing
Net gearing measures the total borrowings less cash and cash equivalents
divided by shareholders' funds, expressed as a percentage. Under AIC reporting
guidance cash and cash equivalents includes net amounts due from and to
brokers at the period end as well as cash and short term deposits.
31 January 2026 31 July 2025
Borrowings (£'000) a 54,823 64,784
Cash and short term deposits (£'000) b 4,479 12,512
Amounts due to brokers (£'000) c 2,173 8,791
Amounts due from brokers (£'000) d 7,512 4,134
Shareholders' funds (£'000) e 592,776 558,593
Net gearing (a-b+c-d)/e 7.6% 10.2%
Ongoing charges
The ongoing charges ratio has been calculated in accordance with guidance
issued by the AIC as the total of investment management fees and
administrative expenses and expressed as a percentage of the average published
daily net asset values with debt at fair value throughout the year. The ratio
as at 31 January 2026 is based on forecast ongoing charges for the year ending
31 July 2026.
31 January 2026 31 July 2025
Investment management fees (£'000) 3,809 3,276
Administrative expenses (£'000) 1,455 1,582
Less: non-recurring charges (£'000)(A) (24) (164)
Ongoing charges (£'000) 5,240 4,694
Average net assets (£'000) 591,104 518,389
Ongoing charges ratio 0.89% 0.91%
(A) Professional fees comprising corporate and legal fees considered unlikely
to recur.
Total return
NAV and share price total returns show how the NAV and share price has
performed over a period of time in percentage terms, taking into account both
capital returns and dividends paid to shareholders. NAV and share price total
returns are monitored against open-ended and closed-ended competitors, and the
Reference Index, respectively.
Share
Six months ended 31 January 2026 NAV Price
Opening at 1 August 2025 a 381.72p 343.00p
Closing at 31 January 2026 b 421.69p 384.00p
Price movements c=(b/a)-1 10.5% 12.0%
Dividend reinvestment(A) d 0.9% 1.0%
Total return c+d +11.4% +13.0%
Share
Year ended 31 July 2025 NAV Price
Opening at 1 August 2024 a 324.26p 278.00p
Closing at 31 July 2025 b 381.72p 343.00p
Price movements c=(b/a)-1 17.7% 23.4%
Dividend reinvestment(A) d 2.6% 3.2%
Total return c+d +20.3% +26.6%
NAV total return from inception (19 October 1995) to 31 January 2026 31 July 2025
Opening NAV a 20.00p 20.00p
Closing NAV b 421.69p 381.72p
Price movements c=(b/a)-1 2008.5% 1808.6%
Dividend reinvestment(A) d 1357.3% 1606.9%
Total return c+d +3365.8% +3415.5%
(A) NAV total return involves investing the net dividend in the NAV of the
Company with debt at fair value on the date on which that dividend goes
ex-dividend. Share price total return involves reinvesting the net dividend in
the share price of the Company on the date on which that dividend goes
ex-dividend.
Copies of the Company's Half Yearly Report for the six months ended 31 January
2026 will be posted to shareholders in April 2026 and will be available
thereafter on the Company's website: asia-focus.co.uk *.
Please note that past performance is not necessarily a guide to the future and
that the value of investments and the income from them may fall as well as
rise and may be affected by exchange rate movements. Investors may not get
back the amount they originally invested.
* Neither the content of the Company's website nor the content of any website
accessible from hyperlinks on the Company's website (or any other website) is
(or is deemed to be) incorporated into, or forms (or is deemed to form) part
of this announcement.
abrdn Holdings Limited
Secretaries
27 March 2026
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