REG - abrdn Asia Focus plc - Half Yearly Results
31/03/2023 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230331:nRSe8373Ua&default-theme=true
RNS Number : 8373U abrdn Asia Focus plc 31 March 2023
abrdn Asia Focus plc
Legal Entity Identifier (LEI): 5493000FBZP1J92OQY70
ANNOUNCEMENT OF UNAUDITED HALF YEARLY RESULTS
for the six months ended 31 January 2023
The Board of abrdn Asia Focus plc, a £540m Company that holds a fundamental,
high conviction portfolio of well-researched Asian small caps, today confirms
its half yearly results for the six months ended 31 January 2023.
Financial highlights for the interim reporting period include:
• Share price (total return basis): +5.5%;
• Net Asset Value (total return): +3.0% slightly lower than the
Company's benchmark return, the MSCI AC Asia ex-Japan Small Cap Index, of
3.8%;
• The Board remains confident in Asia and its dynamic smaller
companies over the longer term: £1000 invested at inception in 1995 is now
worth over £22,950 ,on a NAV basis with dividends reinvested, a return of
over 2195%;
• The Board has set a target dividend of at least 6.4p per Ordinary
Share for the financial year ending 31 July 2023. The Board plans to maintain
the progressive dividend policy of the last 27 years to provide shareholders
with a regular level of income, alongside capital growth prospects;
• AIC ISA millionaire: abrdn Asia Focus is one of the top 5 companies
that would have made investors £1,000,000 if they had invested their full isa
allowance from 1999 to 2023 (AIC release: ISA millionaires | The AIC);
• The information technology sector made the most positive
contribution to performance.
· Investment managers continue to target high-quality companies which
offer growth but are also profitable, have strong cash flows, robust balance
sheets, and trade at reasonable valuations.
Performance Highlights
Net asset value total return (diluted)(AB) Net Asset Value per share (diluted)
Six months ended 31 January 2023 As at 31 January 2023
+3.0% 299.2p
Year ended 31 July 2022 -0.02 As at 31 July 2022 295.3p
Share price total return(A) Share price
Six months ended 31 January 2023 As at 31 January 2023
+5.5% 263.0p
Year ended 31 July 2022 -1.7% As at 31 July 2022 254.0p
MSCI AC Asia ex Japan Small Cap Index total return(C) Total assets
'Six months ended 31 January 2023 As at 31 January 2023
+3.8% £540.1m
'Year ended 31 July 2022 -5.1% As at 31 July 2022 £532.9m
Net asset value total return since inception (diluted)(ABD) Discount to net asset value(AB)
To 31 January 2023 As at 31 January 2023
+2195.7% 12.1%
To 31 July 2022 +2115.6% As at 31 July 2022 14.0%
(A) Considered to be an Alternative Performance Measure (see definition
below).
'(B) Presented on a diluted basis as the Convertible Unsecured Loan Stock
(CULS) is "in the money".
'(C) Currency adjusted, capital gains basis.
(D) Inception being 19 October 1995.
Financial Highlights
Capital values 31 January 2023 31 July 2022 % change
Total assets less current liabilities(A) £540,052,000 £532,912,000 +1.3
Net asset value per share (basic) 300.00p 295.88p +1.4
Net asset value per share (diluted) 299.15p 295.25p +1.3
Share price (mid market) 263.00p 254.00p +3.5
Discount to net asset value (basic)(B) 12.3% 14.2%
Discount to net asset value (diluted)(B) 12.1% 14.0%
Net gearing(B) 13.7% 12.1%
Ongoing charges ratio(B) 0.90% 0.88%
(A) Total assets less current liabilities (excluding prior charges such as
bank loans) as per the Statement of Financial Position.
(B) Considered to be an Alternative Performance Measure (see definition
below).
Chairman's Statement
Background
Global markets remained volatile over the review period, with sentiment
influenced by a sharp rise in interest rates from the US Federal Reserve (Fed)
and fears that this could lead to a global recession. Towards the end of the
period, China's decision to ease Covid-19 restrictions led to expectations
that the country's re-opening would boost consumer demand and help
export-oriented markets such as Taiwan and South Korea. Likewise, the
diversification of supply chains has seen net benefits to Vietnam, India and
Indonesia, amongst others in South East Asia.
Against this volatile market background, your Company's share price gained
5.5% on a total return basis with the discount to the net asset value("NAV")
narrowing to 12.1%. The NAV total return was 3.0% although that came in
slightly lower than the benchmark MSCI AC Asia Pacific ex-Japan Small Cap
Index's 3.8% increase.
Despite continued short-term market volatility, the Board is as confident as
ever in the potential for Asia and its smaller companies over the long-term.
It is worth noting that £1,000 invested in your Company at inception is now
worth over £22,950 on a NAV basis with dividends reinvested, a return of over
2195%. Indeed, according to a recent press release from the Association of
Investment Companies (AIC) we are one of the top five companies that would
have made investors £1,000,000 if they had invested their full isa allowance
from 1999 to 2023.
This is the world's fastest-growing region, underpinned by powerful structural
trends such as increasing affluence, rising urbanisation, and growing
technology adoption. Exciting opportunities continue to abound in its small
and mid-cap investment universe, where companies tend to be domestically
oriented and low research coverage leaves considerable scope for active
managers to take advantage of market mispricing.
Dividend
The Board recognises the importance of your Company's dividend income for many
shareholders. The Ordinary dividend has been maintained or raised every year
since 1998, and your Board is firmly committed to the new enhanced and
progressive dividend policy approved by shareholders in 2022.
Two interim dividends have been paid in the first six months of the year. The
first interim dividend of 1.6p per Ordinary share was paid on 20 December 2022
to Ordinary shareholders on the register on 25 November 2022 and the second
interim dividend was paid on 21 March 2023 to Ordinary shareholders on the
register on 24 February 2023. The Board has set a target dividend of at
least 6.4p per Ordinary Share for the financial year ending 31 July 2023. The
Board plans to maintain the progressive policy of the last 27 years in order
to provide shareholders with a regular level of income alongside capital
growth prospects.
Share Capital Management and Gearing
During the period the Ordinary shares have traded at an average discount of
11.9% and we did not buy back any Ordinary shares in the market. However,
subsequent to the period 120,000 Ordinary shares have been acquired for
treasury at a discount to the prevailing NAV per share. The Board will
continue to consider the use of share buybacks to both reduce the volatility
of any discount and to modestly enhance the NAV per share for shareholders.
The Company's net gearing at 31 January 2023 was 13.7% with the debt provided
by the £30 million unsecured Loan Notes 2035 and the £36.6m Convertible
Unsecured Loan Stock redeemable in 2025. As at 30 March 2023, the latest
practicable date, the net gearing stood at 12.9%.
ESG
In my first report to Shareholders, I wanted to draw out the importance that
your Board and Manager place upon Environmental, Social and Governance ("ESG")
matters. While ESG concerns do not form a specific part of the Company's
investment objective, and the investment process does not exclude exposure to
certain industries, the Investment Manager has long believed that a holistic
assessment of business risks and active engagement, with the goal of improving
the performance of the Company's portfolio, is vital before, during and after
an investment is made. That includes a detailed understanding of the
environmental, social and governance risks and opportunities associated with
each holding. It is, therefore, very much embedded in the Investment Manager's
approach to managing the Company and we will provide more detail on these
important matters in your Company's Annual Report.
Outlook
The purpose of the Company remains the same as ever, to give investors access
to Asia's exciting growth prospects via a concentrated portfolio of
high-quality smaller companies. Your Company continues to benefit from a
highly experienced management team, with excellent on-the-ground access to
companies, business leaders and policymakers. They continue to uncover
under-researched quality companies in what is a large and varied universe of
Asian small caps.
Considering the current fragile state of the global economy, our view is that
Asia is in a better position than many Western economies. For the most part,
government finances and corporate balance sheets in the region are in good
health. The wider macroeconomic risks (whether inflation or geopolitics
related) persist, but one of the benefits of this Trust's small-cap emphasis
is that it allows for a portfolio that is more geared to Asia's domestic
growth story - indeed, at the end of the reporting period, over 80% of the
underlying revenues of the companies in the portfolio came from within Asia
itself.
In this regard, the Board is pleased to note there are positive signs for
structural growth right across the region. China's re-opening should lead to a
recovery in both domestic consumption and industry production. In turn, this
could be a spur for Asia-wide exports, services, trade, and tourism.
Valuations are attractive and your Manager has positioned the portfolio to
weather near-term risks - the majority of the companies in the portfolio hold
net cash on their balance sheet - while keeping in mind the long-term secular
trends across Asia: rising local demand, a move to a lower-carbon future and
the growth of Asia's technology and supply chains. Accordingly, your
Company's core investment strategy remains judicious - quality companies at a
reasonable price with strong balance sheets and demonstrating sustainable
earnings, delivering outperformance over the long-term.
Krishna Shanmuganathan
Chairman
30 March 2023
Investment Manager's Review
Overview
The six months to the end of January 2023 can be split into three distinct
periods. The first, in August and September, was noteworthy for the level of
concern among investors about the pace of interest rate increases in the US,
reflected in a global sell-off across a number of markets. The strength of the
US dollar also contributed to market volatility.
In October, the focus shifted to the Communist Party Congress in Beijing and
President Xi Jinping's consolidation of power. After securing an unprecedented
third term in office President Xi filled the country's leadership team with
close allies. Investors reacted nervously and the markets in mainland China
and Hong Kong were among the weakest during this month. The volatility spread
to wider Asian markets, and, notably, to Asian smaller companies, which
underperformed both the wider region and those in developed markets.
November and December, however, saw a marked change in sentiment. China
announced a sharp U-turn in policy with the removal of Covid-19 restrictions,
driving a strong rally across many Asian markets particularly those more
closely linked to the mainland.
Portfolio Review
The information technology sector made the most positive contribution to
performance where your Manager targets high-quality companies which offer
growth but are also profitable, have strong cash flows, robust balance sheets,
and trade at reasonable valuations.
Prominent among them was Korea's Park Systems which is an exciting prospect
thanks to its innovative products and dominant position in atomic force
microscopy - an emerging imaging field - which has a number of growing
applications within advanced science and technology labs.
In the same sector, the portfolio saw good contributions from Leeno
Industrial, Koh Young Technology and Taiwan's Andes Technology. However, not
every holding in the sector made gains. Some in the technology supply chain,
such as Nanofilm, were affected by concerns about a drop in demand for Apple
products. AEM Holdings, which produces tests for semiconductors, was also weak
due to fears of a cyclical downturn in the sector.
Our Indian holdings also boosted your Company's returns thanks to good stock
selection. Aegis Logistics, which is primarily focused on operating port
terminals, was a strong performer, as was Vijaya Diagnostic Centre, which owns
a network of diagnostics clinics in Southern India. Elsewhere, positive
contributions came from Indonesia and Thailand with Bank OCBC NISP benefiting
from the broader economic recovery in Indonesia, clearly reflected in a 60%
rise in the bank's net profits in the third quarter.
The Vietnamese government's attempt to address corruption and speculative
activity in the property market impacted our holding in property developer Nam
Long due to the resultant delays in land purchases and project launches.
Your Manager however remains confident in the reputation of the company and
believes it should benefit from the government's intervention over the
long-term. Also in Vietnam, information technology group FPT Corp was another
detractor from performance, but we were reassured to see it publish strong
annual results with revenues and earnings both beating expectations.
Stock selection in China and Hong Kong was also a source of weakness. Among
the main detractors were Joinn Laboratories, Sinoma Science & Technology
and Pacific Basin Shipping. The last of these suffered from forecasts of lower
global growth and a decline in freight rates, but your Manager continues to
see value in the stock, given expectations of strong free cash flow generation
and therefore healthy dividend payouts.
ChaCha Food, which was added to the portfolio during the period, was another
detractor but your Manager saw the ongoing weakness in the Chinese equity
market as an opportunity to add to the position. It is among China's leading
nuts producers with well established brands, including the largest roasted
seeds brand locally which generates healthy cash flow. It has high growth
potential as the highly fragmented snacks industry presents a consolidation
opportunity for a focused, vertically integrated company with strong brands.
You can read more about your Manager's rationale behind holding this stock
below.
Turning to portfolio activity, your Manager continued to maintain discipline
in the portfolio's quality focus, especially given the challenging backdrop.
Alongside the investment in ChaCha Food, a new position was also initiated in
Kerry Logistics Network, one of the largest integrated logistics providers in
Asia with a diversified customer base. Your Manager believes the company is
well placed to benefit from supply-chain relocation, e-commerce growth and
intra-regional trade in Asia. The position in Douzone Bizon was sold due to
concerns over execution and an uncertain growth outlook. The holding in
eCloudvalley was also divested, owing to poor disclosure and a slowdown in
growth.
Gabriel Sacks, Flavia Chong,
Xin Yao Ng & Hugh Young
abrdn Asia Limited
30 March 2023
Ten Largest Investments
As at 31 January 2023
4.1% Park Systems Corporation 3.6% Aegis Logistics
Total assets Total assets
The Korean company is the leading developer of atomic force microscopes, a A strong and conservative player in India's gas and liquids logistics sector,
nascent technology that could have broad industrial application in sectors with a first mover advantage in key ports and a fair amount of capacity
such as chip-making and biotechnology. The company's financials are sound, expansion to come. The government's push for the adoption of cleaner energy is
despite significant upfront sales and distribution costs. also boosting its liquefied natural gas business.
3.1% Sinoma Science & Technology - A 2.9% Bank OCBC NISP
Total assets Total assets
One of the largest wind turbine blade producers in China and the third largest An Indonesian listed banking and financial services company, which is a steady
battery separator maker, which is backed by strong R&D capability and consistent performer backed by healthy asset quality.
support from its parent group We view the stock as a proxy for growth of wind
energy.
2.9% Mega Lifesciences (Foreign) 2.9% AKR Corporindo
Total assets Total assets
The Thai group produces, sells and distributes health supplements and AKR is one of the main players in industrial fuel in Indonesia, which has a
pharmaceutical products, mostly in the under-penetrated but fast-growing high entry barrier. Its key strength is its extensive infrastructure and
frontier and emerging markets. logistic facilities throughout the country.
2.8% FPT Corporation 2.7% Affle India
Total assets Total assets
FPT is a diversified technology group with a fast-growing software outsourcing A consumer technology business operating a data platform that helps direct
business. It also owns a telecoms unit, an electronics retailing company, and digital advertising. It is dominant in India where digitalisation has reached
has interests in other sectors, such as education. an inflection point.
2.7% AEM Holdings 2.7% MOMO.com
Total assets Total assets
A Singapore-based provider of advanced semiconductor chip testing services Momo, the largest online retailer in Taiwan, serves as a nice proxy for
that has embedded itself in chipmaker Intel's global supply chain. consumer growth in the country, as it is benefitting from the shift to online
from both consumers and vendors.
Park Systems Corporation
3.6%
Total assets
Aegis Logistics
The Korean company is the leading developer of atomic force microscopes, a
nascent technology that could have broad industrial application in sectors
such as chip-making and biotechnology. The company's financials are sound,
despite significant upfront sales and distribution costs.
A strong and conservative player in India's gas and liquids logistics sector,
with a first mover advantage in key ports and a fair amount of capacity
expansion to come. The government's push for the adoption of cleaner energy is
also boosting its liquefied natural gas business.
3.1%
Total assets
Sinoma Science & Technology - A
2.9%
Total assets
Bank OCBC NISP
One of the largest wind turbine blade producers in China and the third largest
battery separator maker, which is backed by strong R&D capability and
support from its parent group We view the stock as a proxy for growth of wind
energy.
An Indonesian listed banking and financial services company, which is a steady
consistent performer backed by healthy asset quality.
2.9%
Total assets
Mega Lifesciences (Foreign)
2.9%
Total assets
AKR Corporindo
The Thai group produces, sells and distributes health supplements and
pharmaceutical products, mostly in the under-penetrated but fast-growing
frontier and emerging markets.
AKR is one of the main players in industrial fuel in Indonesia, which has a
high entry barrier. Its key strength is its extensive infrastructure and
logistic facilities throughout the country.
2.8%
Total assets
FPT Corporation
2.7%
Total assets
Affle India
FPT is a diversified technology group with a fast-growing software outsourcing
business. It also owns a telecoms unit, an electronics retailing company, and
has interests in other sectors, such as education.
A consumer technology business operating a data platform that helps direct
digital advertising. It is dominant in India where digitalisation has reached
an inflection point.
2.7%
Total assets
AEM Holdings
2.7%
Total assets
MOMO.com
A Singapore-based provider of advanced semiconductor chip testing services
that has embedded itself in chipmaker Intel's global supply chain.
Momo, the largest online retailer in Taiwan, serves as a nice proxy for
consumer growth in the country, as it is benefitting from the shift to online
from both consumers and vendors.
Investment Portfolio
As at 31 January 2023
Total
Valuation assets
Company Industry Country £'000 %
Park Systems Corporation Electronic Equipment, Instruments & Components South Korea 21,972 4.1
Aegis Logistics Oil, Gas & Consumable Fuels India 19,339 3.6
Sinoma Science & Technology - A Chemicals China 16,510 3.1
Bank OCBC NISP Banks Indonesia 15,943 2.9
Mega Lifesciences (Foreign) Pharmaceuticals Thailand 15,901 2.9
AKR Corporindo Oil, Gas & Consumable Fuels Indonesia 15,709 2.9
FPT Corporation IT Services Vietnam 15,160 2.8
Affle India Media India 14,654 2.7
AEM Holdings Semiconductors & Semiconductor Equipment Singapore 14,641 2.7
MOMO.com Internet & Direct Marketing Retail Taiwan 14,435 2.7
Top ten investments 164,264 30.4
Cyient Software India 14,347 2.7
Dah Sing Financial Holdings Banks Hong Kong 13,709 2.5
M.P. Evans Group Food Products United Kingdom 13,688 2.5
Oriental Holdings Automobiles Malaysia 13,342 2.5
Hana Microelectronics (Foreign) Electronic Equipment, Instruments & Components Thailand 12,751 2.4
Joinn Laboratories China Life Sciences Tools & Services China 12,563 2.3
UIE Food Products Denmark 11,342 2.1
Medikaloka Hermina Health Care Providers & Services Indonesia 11,235 2.1
Cebu Holdings Real Estate Management & Development Philippines 11,186 2.1
Nam Long Invest Corporation Real Estate Management & Development Vietnam 11,026 2.0
Top twenty investments 289,453 53.6
Pacific Basin Shipping Marine Hong Kong 10,825 2.0
LEENO Industrial Semiconductors & Semiconductor Equipment South Korea 10,544 1.9
John Keells Holdings Industrial Conglomerates Sri Lanka 10,322 1.9
Precision Tsugami China Corporation Machinery China 10,211 1.9
Asian Terminals Transportation Infrastructure Philippines 10,181 1.9
Millennium & Copthorne Hotels New Zealand(A) Hotels, Restaurants & Leisure New Zealand 9,992 1.9
Sunonwealth Electric Machinery Industry Machinery Taiwan 9,913 1.8
Sporton International Professional Services Taiwan 9,632 1.8
Ultrajaya Milk Industry & Trading Food Products Indonesia 8,954 1.7
Bukit Sembawang Estates Real Estate Management & Development Singapore 8,897 1.6
Top thirty investments 388,924 72.0
AEON Credit Service (M) Consumer Finance Malaysia 8,890 1.6
IPH Professional Services Australia 7,741 1.4
Kerry Logistics Air Freight & Logistics Hong Kong 7,492 1.4
Prestige Estates Projects Real Estate Management & Development India 6,967 1.3
Koh Young Technology Semiconductors & Semiconductor Equipment South Korea 6,902 1.3
Vijaya Diagnostic Centre Health Care Providers & Services India 6,770 1.3
Taiwan Union Electronic Equipment, Instruments & Components Taiwan 6,732 1.2
United Plantations Food Products Malaysia 6,509 1.2
Syngene International Life Sciences Tools & Services India 6,225 1.2
Tisco Financial Group (Foreign) Banks Thailand 6,132 1.1
Top forty investments 459,284 85.0
Shangri-La Hotels Malaysia Hotels, Restaurants & Leisure Malaysia 5,924 1.1
Pentamaster International Semiconductors & Semiconductor Equipment Malaysia 5,816 1.1
Yoma Strategic Holdings Real Estate Management & Development Myanmar 5,674 1.1
Andes Technology Semiconductors & Semiconductor Equipment Taiwan 5,642 1.1
Sanofi India Pharmaceuticals India 5,622 1.0
Nanofilm Technologies International Chemicals Singapore 5,096 1.0
KMC Kuei Meng International Leisure Products Taiwan 4,999 0.9
ChaCha Food Food Products China 4,988 0.9
NZX Capital Markets New Zealand 4,477 0.8
Absolute Clean Energy (Foreign) Independent Power and Renewable Electricity Producers Thailand 4,451 0.8
Top fifty investments 511,973 94.8
Convenience Retail Asia Food & Staples Retailing Hong Kong 4,125 0.8
Aspeed Technology Semiconductors & Semiconductor Equipment Taiwan 3,937 0.7
CE Info Systems Software India 3,789 0.7
Nazara Technologies Entertainment India 3,660 0.7
Thai Stanley Electric (Foreign) Auto Components Thailand 3,552 0.7
Credit Bureau Asia Professional Services Singapore 3,203 0.6
Tatva Chintan Pharma Chemicals India 3,013 0.6
Manulife Holdings Insurance Malaysia 1,616 0.3
First Sponsor Group (Warrants 21/03/2029) Real Estate Management & Development Singapore 235 -
AEON Stores Hong Kong Multiline Retail Hong Kong 222 -
Top sixty investments 539,325 99.9
First Sponsor Group (Warrants 30/05/2024) Real Estate Management & Development Singapore 123 -
G3 Exploration Oil, Gas & Consumable Fuels China - -
Total investments 539,448 99.9
Net current assets 604 0.1
Total assets(B) 540,052 100.0
(A) Holding includes investment in both common and preference lines.
(B) Total assets less current liabilities.
Investment Case Studies
Cha Cha Food
Seeds of growth: ChaCha is a dominant player in a niche category of the foods
industry in China. The company's cash cow is its seeds segment, which accounts
for the bulk of sales. Its sunflower seed products cover different price bands
from the classic red-bag seeds to flavoured blue-bag seeds and on up to the
high-end Kuizhen series. Growth will come from ChaCha's nuts business, where
the company is expanding its product portfolio and driving greater
penetration.
In which year did we first invest?
2022
Where is the head office?
Anhui, China
What does the company do?
ChaCha Food is among China's leading seeds and nuts producers with well
established brands, including the largest roasted seeds brand domestically.
Why do we like the investment?
ChaCha has been a leading player in China's packaged roasted seeds and nuts
market since it was first set up in 1996. We view the company as well
established within a fast-changing snack market. Its superior product quality,
strong branding and deep-rooted distribution channels have the makings of a
long-term winner.
This also reflects its stringent quality control of its production line and
supply chain. ChaCha has historically been a strong offline channel player
with an established distribution network. Among the major domestic snack
players, ChaCha is also one of the few which manufactures its products
in-house rather than resorting to outsourcing, thereby gaining an edge in food
quality. It has local production and processing farms that are close to raw
material and distribution terminals, resulting in more efficient and less
costly transport of its products. A well-established supply chain also adds to
the strength: ChaCha sources 80% of raw materials for its daily nuts directly
from the main production areas during harvest season, then ships back,
processes and sells the products within the same quarter.
Another core strength has been a nimble organisational structure after several
rounds of management and strategy reform since 2015 (with the latest in the
second half of 2021 following the return of chairman Chen Xianbao). The
company has been resilient in a tough operating environment amid the pandemic.
We have seen it maintain decent growth over the short term, with a smooth
price increase in its seeds segment and recovery in its monthly shipments, at
a time when most food and beverage categories have been seeing softening
demand.
For ChaCha, the seeds segment has been its cash cow, thanks to a dominant
market share in China. Looking ahead, the nuts division is set to drive
growth, supported by its larger total addressable market and positioning as
daily consumption over leisure snacks. The company is following a "nuts plus"
strategy to build up a diversified nut product portfolio, and it has started
selling upgraded nut milk products online. ChaCha uses the online channel
mainly as an extension of its offline distribution strength, as well as a
platform for the company to engage with younger consumers and as part of the
trial and testing of new products.
All this has increased our conviction in ChaCha's outlook. We see high-growth
potential for ChaCha, as the highly fragmented industry presents a
consolidation opportunity for a focused, vertically integrated player with
strong brands.
On the ESG front, ChaCha has only a B rating from MSCI because its levels of
disclosure are not high. We recently engaged with ChaCha to gain visibility on
its risk-management policies in key ESG topics and to encourage the company to
issue its first ESG report. We came away with a positive impression because
ChaCha surprised us with its comprehensive and some best-in-class ESG
practices in its daily operations, and its efforts to improve disclosure and
business integration. The call enhanced our view on its ESG quality, and
strengthened our confidence that ChaCha would be rated higher by MSCI after
improving its disclosure. This would be a key area that we would look to work
with ChaCha in future.
Prestige Estates
Expanding beyond the south: Having been a leading property developer in South
India, Prestige Estates is looking to drive growth by diversifying from its
base in Bangalore to other parts of India, such as Mumbai (with its Prestige
Jardan Classic residential development pictured above) and New Delhi.
In which year did we first invest?
2019
Where is the head office?
Bangalore, Karnataka, India
What does the company do?
It is a leading South Indian developer with a good reputation for executing
and completing projects, covering segments such as residential, commercial,
retail, hospitality and property management.
Why do we like the investment?
We regard Prestige Estates as a quality developer with a strong track record
of residential housing development and a growing investment property
portfolio. Founded in 1986, the group has completed more than 270 projects
through the years. It has continued to show decent growth in pre-sales,
completions, launches and rental income. Having been a leading player in South
India, Prestige is looking to drive growth by diversifying from its base in
Bangalore to other parts of India, such as Mumbai and New Delhi. Its expansion
strategy has been sensible, as it is opting to add new projects through
tie-ups with developers in other regions, such as HDFC in affordable housing.
Prestige has more than 150 million sq ft of real estate space in its pipeline
and around a quarter of this is in locations outside south India. Its most
recent updates have highlighted a new asset creation cycle as the company is
planning an aggressive scaling up across all its business segments over the
next five years, including the rebuilding of its shopping mall pipeline.
Capital discipline is key and we would monitor how the company executes on
this, albeit operating cash flows have been strong and pre-sales momentum
remains positive. There is also support from a substantial improvement in the
company's liquidity position, following the conclusion of a spin-off of assets
to Blackstone and a stake sale in one of its office blocks.
More broadly, the government's bold housing programme is taking shape with
affordable homes being built across the country, while sector reform such as
the Real Estate (Regulation and Development) Act (RERA) has triggered
large-scale consolidation in the industry, with the strongest impact on the
residential segment. We expect good quality developers with strong balance
sheets and brands, such as Prestige Estates, likely to benefit the most. The
consolidation theme is still happening with Prestige getting more deals from
banks offloading their assets. We also see urbanisation and population growth,
combined with increasing disposable income and the increase in nuclear
families, as fuelling the overall demand for housing over the longer term.
With regard to the environment, social and governance (ESG) aspects, Prestige
Estates has yet to have an MSCI ESG rating, but we are encouraged by the
company's efforts towards a greener planet. The company is committed to
designing and delivering assets with "green building" certification, while
also incorporating water conservation and waste recycling. For instance, the
company has installed rainwater harvesting mechanisms at all its project
locations. Compared with conventional buildings, overall Prestige has
conserved more than 30% of water in its portfolio of green buildings. Its
freshwater consumption also fell by 19% in FY2022. The company also recycled
29% of its overall waste in FY2022. As for the social aspect, in terms of
talent management, Prestige uses online learning resources to enhance the
skills of its workforce, with a learning platform that has videos, articles,
podcasts and TED Talks on various topics and interests. In addition, it has in
place an employee well-being policy and Prevention of Sexual Harassment (POSH)
policy that applies to all employees. We have also seen some progress in
corporate governance. Independent representation on the board of directors is
about 56%, while Prestige increased the number of female directors on the
nine-member board to two in FY2020 from one previously.
Condensed Statement of Comprehensive Income (unaudited)
Six months ended Six months ended
31 January 2023 31 January 2022
Revenue Capital Total Revenue Capital Total
Notes £'000 £'000 £'000 £'000 £'000 £'000
Gains on investments - 9,989 9,989 - 2,033 2,033
Income 2 8,162 - 8,162 6,023 - 6,023
Exchange losses - (181) (181) - (60) (60)
Investment management fees (376) (1,128) (1,504) (413) (1,239) (1,652)
Administrative expenses (601) (16) (617) (582) (390) (972)
Net return before finance costs and taxation 7,185 8,664 15,849 5,028 344 5,372
Finance costs (252) (755) (1,007) (252) (755) (1,007)
Net return before taxation 6,933 7,909 14,842 4,776 (411) 4,365
Taxation 3 (249) (588) (837) (225) (963) (1,188)
Net return after taxation 6,684 7,321 14,005 4,551 (1,374) 3,177
Return per share (pence)(A) 4
Basic 4.26 4.66 8.92 2.90 (0.88) 2.02
Diluted 3.99 4.44 8.43 2.71 n/a 1.98
(A) Figures for 2022 have been restated to reflect the 5:1 sub-division as
disclosed in note 8.
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 2023 31 July 2022
Notes £'000 £'000
Fixed assets
Investments at fair value through profit or loss 539,448 524,841
Current assets
Debtors and prepayments 1,842 1,464
Cash and short-term deposits 2,170 9,471
4,012 10,935
Creditors: amounts falling due within one year
Other creditors (3,408) (2,864)
Net current assets 604 8,071
Total assets less current liabilities 540,052 532,912
Non-current liabilities
2.25% Convertible Unsecured Loan Stock 2025 7 (36,059) (35,940)
3.05% Senior Unsecured Loan Note 2035 6 (29,895) (29,892)
Deferred tax liability on Indian capital gains (3,224) (2,684)
(69,178) (68,516)
Net assets 470,874 464,396
Capital and reserves
Called-up share capital 8 10,435 10,435
Capital redemption reserve 2,062 2,062
Share premium account 60,434 60,428
Equity component of 2.25% Convertible Unsecured Loan Stock 2025 7 1,057 1,057
Capital reserve 382,771 375,450
Revenue reserve 14,115 14,964
Equity shareholders' funds 470,874 464,396
Net asset value per share (pence) 9
Basic 300.00 295.88
Diluted 299.15 295.25
The accompanying notes are an integral part of the condensed financial
statements.
Condensed Statement of Changes in Equity (unaudited)
Six months ended 31 January 2023
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 2022 10,435 2,062 60,428 1,057 375,450 14,964 464,396
Conversion of 2.25% Convertible Unsecured Loan Stock 2025 8 - - 6 - - - 6
Return after taxation - - - - 7,321 6,684 14,005
Dividends paid 5 - - - - - (7,533) (7,533)
Balance at 31 January 2023 10,435 2,062 60,434 1,057 382,771 14,115 470,874
Six months ended 31 January 2022
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 2021 (*Restated) 10,435 2,062 60,412 1,057 401,124 12,868 487,958
Conversion of 2.25% Convertible Unsecured Loan Stock 2025 8 - - 14 - - - 14
Return after taxation - - - - (1,374) 4,551 3,177
Dividends paid 5 - - - - - (5,022) (5,022)
Balance at 31 January 2022 10,435 2,062 60,426 1,057 399,750 12,397 486,127
* The financial statements for the year ended 31 July 2021 were restated to
reallocate costs of £250,0000 associated with the long term investment
strategy review from revenue to capital.
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 2023 31 January 2022
£'000 £'000
Cash flows from operating activities
Return before finance costs and tax 15,849 5,372
Adjustments for:
Dividend income (8,125) (6,023)
Interest income (37) -
Dividends received 8,260 6,599
Interest received 37 -
Interest paid (871) (871)
Gains on investments (9,989) (2,033)
Foreign exchange movements 181 60
Increase/(decrease) in prepayments (8) 11
Decrease in other debtors 10 8
(Decrease)/increase in other creditors (975) 165
Stock dividends included in investment income - (157)
Overseas withholding tax suffered (297) (355)
Net cash inflow from operating activities 4,035 2,776
Cash flows from investing activities
Purchase of investments (28,361) (44,447)
Sales of investments 24,739 36,150
Net cash outflow from investing activities (3,622) (8,297)
Cash flows from financing activities
Equity dividends paid (7,533) (5,022)
Net cash outflow from financing activities (7,533) (5,022)
Decrease in cash and cash equivalents (7,120) (10,543)
Analysis of changes in cash and short term deposits
Opening balance 9,471 14,577
Decrease in cash and short term deposits (7,120) (10,543)
Foreign exchange movements (181) (60)
Closing balance 2,170 3,974
The accompanying notes are an integral part of the condensed financial
statements.
Notes to the Financial Statements
For the six months ended 31 January 2023
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 2023 31 January 2022
£'000 £'000
Income from investments
Overseas dividends 7,914 5,697
UK dividend income 211 169
Stock dividends - 157
8,125 6,023
Other income
Deposit interest 37 -
Total income 8,162 6,023
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
(*Restated)
Six months ended Six months ended
31 January 2023 31 January 2022
p p
Basic
Revenue return 4.26 2.90
Capital return 4.66 (0.88)
Total return 8.92 2.02
The figures above are based on the following:
£'000 £'000
Revenue return 6,684 4,551
Capital return 7,321 (1,374)
Total return 14,005 3,177
Weighted average number of shares in issue(A) 156,954,206 156,949,665
(*Restated)
Six months ended Six months ended
31 January 2023 31 January 2022
Diluted(B) p p
Revenue return 3.99 2.71
Capital return 4.44 n/a
Total return 8.43 1.98
The figures above are based on the following:
£'000 £'000
Revenue return 6,753 4,596
Capital return 7,529 (1,237)
Total return 14,282 3,359
Number of dilutive shares 12,505,379 12,509,930
Diluted shares in issue(AB) 169,459,585 169,459,595
(A) Calculated excluding shares held in treasury.
(B) The calculation of the diluted total, revenue and capital returns per
Ordinary share is 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 is 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 indicate that the exercise of CULS
would result in an increase in the weighted average number of Ordinary shares
of 12,505,379 (31 January 2022 restated - 12,509,930) to 169,459,585 (31
January 2022 restated - 169,459,595) Ordinary shares.
For the six months ended 31 January 2023 the assumed conversion for potential
Ordinary shares was dilutive to the revenue return per Ordinary share (31
January 2022 - dilutive) and dilutive to the capital return per Ordinary share
(31 January 2022 - non-dilutive). Where dilution occurs, the net returns are
adjusted for interest charges and issue expenses relating to the CULS (31
January 2023 - £277,000; 31 January 2022 - £182,000). Total earnings for the
period are tested for dilution. Once dilution has been determined individual
revenue and capital earnings are adjusted.
* The returns per share figures for January 2022 have been restated to reflect
the 5:1 sub-division as disclosed in note 8.
5. Dividends
Six months ended Six months ended
31 January 2023 31 January 2022
£'000 £'000
Final dividend for 2021 - 3.0p - 4,708
Special dividend for 2022 - 1.6p (2021 - 0.2p) 2,511 314
Interim dividend for 2022 - 1.6p 2,511 -
Interim dividend for 2023 - 1.6p 2,511 -
7,533 5,022
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 2023 was
£27,353,000, the value being based on a comparable quoted debt security.
7. 2.25% Convertible Unsecured Loan Stock 2025 ("CULS")
Liability Equity
Nominal component component
£'000 £'000 £'000
Balance at beginning of period 36,642 35,940 1,057
Conversion of CULS into Ordinary shares (6) (6) -
Notional interest on CULS - 77 -
Amortisation of issue expenses - 48 -
Balance at end of period 36,636 36,059 1,057
The 2.25% Convertible Unsecured Loan Stock 2025 ("CULS") can be converted at
the election of holders into Ordinary shares during the months of May and
November each year throughout its life until 31 May 2025 at a rate of 1
Ordinary share for every 293.0p nominal of CULS. Interest is paid on the CULS
on 31 May and 30 November each year.
In the event of a winding-up of the Company the rights and claims of the
Trustee and CULS holders would be subordinate to the claims of all creditors
in respect of the Company's secured and unsecured borrowings, under the terms
of the Trust Deed.
During the period ended 31 January 2023 the holders of £6,334 of 2.25% CULS
2025 exercised their right to convert their holdings into Ordinary shares.
Following the receipt of the exercise instructions, the Company converted
£6,334 (31 July 2022 - £15,343) nominal amount of CULS into 2,158 (31 July
2022 - 5,211) Ordinary shares.
As at 31 January 2023, there was £36,636,078 (31 July 2022 - £36,642,412)
nominal amount of CULS in issue.
8. Called-up share capital
During the six months ended 31 January 2023 no Ordinary shares were bought
back to be held in treasury at a total cost of £nil (31 January 2022 - nil).
During the six months ended 31 January 2023 an additional 2,158 (31 July 2022
- 5,211) Ordinary shares were issued after 6,334 nominal amount of 2.25%
Convertible Unsecured Loan Stock 2025 were converted at 293.0p each (31 July
2022 - £15,343). The total consideration received was £nil (31 July 2022 -
£nil). At the end of the period there were 208,700,379 (31 July 2022 -
208,698,221) Ordinary shares in issue, of which 51,744,590 (31 July 2022 -
51,744,590) were held in treasury.
On 4 February 2022 there was a sub-division of each existing Ordinary 25p
share into 5 Ordinary shares of 5p each. As a result the conversion price of
the CULS decreased from 1,465p to 293p.
Subsequent to the period end, 120,000 Ordinary shares have been bought back to
be held in treasury at a cost of £304,000.
9. Net asset value per share
As at As at
31 January 2023 31 July 2022
Basic
Net assets attributable £470,874,000 £464,396,000
Number of shares in issue(A) 156,955,789 156,953,631
Net asset value per share 300.00p 295.88p
Diluted(B)
Net assets attributable £506,932,000 £500,336,000
Number of shares 169,459,570 169,459,574
Net asset value per share 299.15p 295.25p
(A) Excludes shares in issue held in treasury.
(B) The diluted net asset value per Ordinary share has been calculated on the
assumption that £36,636,078 (31 July 2022 - £36,642,412) 2.25% Convertible
Unsecured Loan Stock 2025 ("CULS") are converted at 293.0p per share, giving a
total of 169,459,570 (31 July 2022 - 169,459,574) Ordinary shares. Where
dilution occurs, the net assets are adjusted for items relating to the CULS.
Net asset value per share - debt converted. In accordance with the Company's
understanding of the current methodology adopted by the AIC, convertible
financial instruments are deemed to be 'in the money' if the cum income net
asset value ("NAV") exceeds the conversion price of 293.0p per share. In such
circumstances a net asset value is produced and disclosed assuming the
convertible debt is fully converted. At 31 January 2023 the cum income NAV was
300.00p and thus the CULS were 'in the money' (31 July 2022 - same).
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 2023 31 January 2022
£'000 £'000
Purchases 49 46
Sales 61 81
110 127
11. Analysis of changes in net debt
At At
31 July Currency Cash Non-cash 31 January
2022 differences flows movements 2023
£'000 £'000 £'000 £'000 £'000
Cash and short-term deposits 9,471 (181) (7,120) - 2,170
Debt due after more than one year (68,516) - - (662) (69,178)
(59,045) (181) (7,120) (662) (67,008)
At At
31 July Currency Cash Non-cash 31 January
2021 differences flows movements 2022
£'000 £'000 £'000 £'000 £'000
Cash and short-term deposits 14,577 (60) (10,543) - 3,974
Debt due within one year (65,594) - - (114) (65,708)
(51,017) (60) (10,543) (114) (61,734)
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. The fair value hierarchy has the following classifications:
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 the reporting
date as follows:
Level 1 Level 2 Level 3 Total
As at 31 January 2023 £'000 £'000 £'000 £'000
Financial assets at fair value through profit or loss
Quoted equities 524,641 - 11,186 535,827
Quoted preference shares - 3,263 - 3,263
Quoted warrants - 358 - 358
Net fair value 524,641 3,621 11,186 539,448
Level 1 Level 2 Level 3 Total
As at 31 July 2022 £'000 £'000 £'000 £'000
Financial assets at fair value through profit or loss
Quoted equities 511,540 - 9,664 521,204
Quoted preference shares - 3,203 - 3,203
Quoted warrants - 434 - 434
Net fair value 511,540 3,637 9,664 524,841
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 2023 31 July 2022
Level 3 Financial assets at fair value through profit or loss £'000 £'000
Opening fair value 9,664 -
Transfer from level 1 - 9,664
Total gains or losses included in losses on investments in the Statement of
Comprehensive Income:
- assets held at the end of the year 1,522 -
Closing balance 11,186 9,664
13. Related party disclosures
Mr Young is a director of abrdn Asia Limited ("abrdn Asia"), which has been
delegated, under an agreement with abrdn Fund Managers Limited ("aFML"), to
provide management services to the Company. Mr Young is not a director of
aFML.
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. With effect from 1 August 2021 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 £1,504,000 (31
January 2022 - £1,652,000) of investment management fees were charged, with a
balance of £990,000 (31 January 2022 - £586,000) 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
£105,000 (31 January 2022 - £105,000). During the period £52,000 (31
January 2022 - £51,000) of fees were charged, with a balance of £52,000 (31
January 2022 - £26,000) payable to aFML at the period end. The promotional
activities costs are based on a current annual amount of £219,000 (31 January
2022 - £219,000), payable quarterly in arrears. During the period £128,000
(31 January 2022 - £110,000) of fees were charged, with a balance of
£128,000 (31 January 2022 - £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 2022 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
30 March 2023.
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.
This has been presented on a diluted basis as the Convertible Unsecured Loan
Stock ("CULS") is "in the money".
31 January 2023 31 July 2022
NAV per Ordinary share (p) a 299.15 295.25
Share price (p) b 263.00 254.00
Discount (a-b)/a 12.1% 14.0%
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 2023 31 July 2022
Borrowings (£'000) a 65,954 65,832
Cash and short term deposits (£'000) b 2,170 9,471
Amounts due to brokers (£'000) c 1,511 -
Amounts due from brokers (£'000) d 797 280
Shareholders' funds (£'000) e 470,874 464,396
Net gearing (a-b+c-d)/e 13.7% 12.1%
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 2023 is based on forecast ongoing charges for the year ending
31 July 2023.
31 January 2023 31 July 2022
Investment management fees (£'000) 3,055 3,204
Administrative expenses (£'000) 1,192 1,561
Less: non-recurring charges (£'000)(A) (28) (428)
Ongoing charges (£'000) 4,219 4,337
Average net assets (£'000) 466,854 490,446
Ongoing charges ratio 0.90% 0.88%
(A) Professional fees comprising corporate and legal fees incurred associated
with proposals approved by shareholders on 27 January 2022.
The ongoing charges ratio provided in the Company's Key Information Document
is calculated in line with the PRIIPs regulations, which includes finance
costs and transaction charges.
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 2023 NAV Price
Opening at 1 August 2022 a 295.25p 254.00p
Closing at 31 January 2023 b 299.15p 263.00p
Price movements c=(b/a)-1 1.3% 3.5%
Dividend reinvestment(A) d 1.7% 2.0%
Total return c+d +3.0% +5.5%
Share
Year ended 31 July 2022 NAV Price
Opening at 1 August 2021 a 309.02p 266.00p
Closing at 31 July 2022 b 295.25p 254.00p
Price movements c=(b/a)-1 -4.5% -4.5%
Dividend reinvestment(A) d 2.5% 2.8%
Total return c+d -2.0% -1.7%
NAV total return from inception (19 October 1995) to 31 January 2023 31 July 2022
Opening NAV a 20.00p 20.00p
Closing NAV b 299.15p 295.25p
Price movements c=(b/a)-1 1395.8% 1376.3%
Dividend reinvestment(A) d 799.9% 739.3%
Total return c+d +2195.7% +2115.6%
(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
2023 will be posted to shareholders in April 2023 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
30 March 2023
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR EAKDEDESDEFARecent news on Aberdeen Asia Focus
See all newsREG - Aberdeen Invs.Trusts - Net Asset Value(s)
AnnouncementREG - Aberdeen Asia Focus - Net Asset Value(s)
AnnouncementREG - Aberdeen Asia Focus - Transaction in Own Shares
AnnouncementREG - Aberdeen Invs.Trusts - Month End Net Asset Value(s)
AnnouncementREG - Aberdeen Asia Focus - Month End Net Asset Value(s)
Announcement