REG - Aberdeen Asian Inc - Half-year Report
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RNS Number : 0566V Aberdeen Asian Income Fund Limited 13 August 2025
Aberdeen Asian Income Fund Limited
Legal Entity Identifier: 549300U76MLZF5F8MN87
UNAUDITED HALF YEARLY REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2025
Performance Highlights
· Dividend yield of 6.8%.
· Share price total return of 6.3%.
· Three and five year outperformance of the Index (NAV and share price
total return).
· Enhanced annual dividend policy introduced from the start of the 2025
financial year.
Dividend yield (A) Earnings per Ordinary share - basic (revenue)
As at 30 June 2025 6.8% Six months ended 30 June 2025 8.75p
As at 31 December 2024 6.6% Six months ended 30 June 2024 5.73p
Net asset value total return (AB) Ordinary share price total return (AB)
Six months ended 30 June 2025 2.2% Six months ended 30 June 2025 6.3%
Year ended 31 December 2024 10.8% Year ended 31 December 2024 12.0%
MSCI AC Asia Pacific ex Japan Index total return (currency adjusted) (B) Net gearing (A)
Six months ended 30 June 2025 4.5% As at 30 June 2025 6.4%
Year ended 31 December 2024 12.6% As at 31 December 2024 7.2%
Discount to net asset value per Ordinary share (A) Ongoing charges (A)
As at 30 June 2025 9.3% Forecast year ending 31 December 2025 0.92%
As at 31 December 2024 12.5% Year ended at 31 December 2024 0.85%
(A) Alternative Performance Measure.
(B) Total return represents the capital return plus dividends reinvested.
For further information please contact:
Ben Heatley
Head of Closed End Fund Sales
Aberdeen Group plc
07796 564 562
Chairman's Statement
Building on our strengths: enhanced team, attractive yield and strong results
driving shareholder value
This has been an exciting period for our Company. We strengthened our
investment team with the appointment of an additional highly experienced lead
portfolio manager, bringing fresh insight to complement our existing
expertise. Our enhanced dividend policy - delivering one of the most
compelling yields in the sector - is already attracting more income seeking
investors. Together with a robust share price performance, these developments
further reinforce our long term track record and investment appeal.
Investment Management Team
During the period, we were pleased to welcome Isaac Thong as our lead manager,
working alongside Eric Chan. Isaac has joined Aberdeen's Asia Pacific Equities
team as Senior Investment Director, based in Singapore, and is responsible for
the day-to-day portfolio management of the Company. He also leads the Asian
Income portfolio construction group within Aberdeen which includes
responsibility for the Company's portfolio.
With over 15 years' experience investing in Asian equities, Isaac brings a
wealth of knowledge and expertise that will enable the investment team to
continue finding companies that will deliver sustainable growth, consistent
income and attractive returns for our shareholders.
Performance
It is pleasing to report a share price total return of 6.3% for the six months
to 30 June 2025 and a narrowing of the discount of the share price to the net
asset value ("NAV") per share from 12.5% to 9.3%.
The NAV total return for the period was 2.2%, compared to a total return of
4.5% from the MSCI AC Asia Pacific ex Japan Index (the "Index").
The NAV underperformance for the period under review was due primarily to the
portfolio's underweight exposure to Chinese internet stocks. Historically, the
Company has had little or no China internet exposure because these companies
did not pay a dividend, which worked well previously but has had an impact on
performance this year.
Encouragingly, the Company continues to outperform the Index over three and
five years in both NAV and share price total return terms. These long-term
absolute and positive returns for investors have been achieved without
compromising on quality, reflecting the Investment Manager's disciplined
investment approach. The Investment Manager has recently implemented a refined
strategy of balancing income and growth across key Asian markets. This has
resulted in a rise in the portfolio's weighted average return on equity,
profit margins and yield.
Six months 1 year 3 year 5 year
Performance (total return) to 30 June 2025 % return % return % return % return
Share price (Ordinary)(A) +6.3% +11.4% +27.0% +59.6%
Net asset value(A) +2.2% +6.0% +20.1% +49.9%
MSCI AC Asia Pacific ex Japan Index (currency adjusted) +4.5% +7.4% +18.3% +29.3%
(A) Considered to be an Alternative Performance Measure.
Portfolio Activity
The refinements to the investment strategy also aim to capture Asia's growth
through a balanced approach across a spectrum of yields. This total return
approach combines yield and earnings growth, while maintaining a quality
income focus. As a result, the Investment Manager has initiated positions in
companies that are strong dividend franchises at various stages of their life
cycles. Some of these companies could be lower yielding, but based on their
high-quality business models, dividend policies, and growth potential, are
strong dividend payers.
During the period, such initiations included NetEase and Alibaba, which offer
a balance between capital return and dividend growth, making them suitable for
the portfolio. Both companies have strengthened their dividend policies since
2022.
Other notable new holdings include Samsung Fire & Marine Insurance, South
Korea's strongest insurer. It has the highest solvency ratios compared to
peers, which support steady dividend growth with surplus capital, providing
room for capital returns to shareholders. It is also viewed as a beneficiary
of the 'Value Up' theme (a government led initiative aimed at enhancing
corporate value and improving shareholder returns).
In India, a new position was added in HDFC Bank, which is known to have the
best retail banking franchise in the country. It has a high-quality wholesale
portfolio, solid underwriting standards, and a progressive digital stance
further strengthening its competitive edge.
Among the exits from the portfolio, the Investment Manager sold the holding in
Singapore Technologies Engineering, where the yield had become too low
following strong performance as its investment thesis played out.
Revenue and Dividends
It is pleasing to report that revenue earnings per share were 8.75p for the
six month period ended 30 June 2025, which compares to 5.73p per share for the
first six months of the previous year. The Company has continued to benefit
from the Investment Manager's focus on high-yielding companies with strong
fundamentals, where it believes there is room for significant increases in
dividend receipts.
The Company has already declared first and second interim dividends of 3.65p
per share and 3.84p per share in respect of the year ending 31 December 2025,
with the second interim dividend payable on 22 August 2025 to shareholders on
the register on 25 July 2025.
Enhanced Dividend Policy and Introduction of Continuation Vote
In January, as part of efforts to broaden the appeal of the Company's shares
to a wider range of investors and to reflect the sustained investor appetite
for yield in the current interest rate environment, the Board introduced an
enhanced dividend policy such that the Company's dividend is now set at
1.5625% per quarter of the NAV, equating to approximately 6.25% of NAV per
annum. The dividend is calculated using the Company's NAV on the last business
day of the preceding financial quarter (i.e. the end of March, June, September
and December).
Based on a share price of 223p on 30 June 2025, and taking into account the
first and second interim dividends already declared, this equates to an
annualised dividend yield of 6.8%.
Alongside the enhanced dividend policy, to further align with shareholder
interests, the Board also announced the introduction of a continuation vote so
that shareholders can decide whether they wish the Company to continue in its
current form at regular intervals. A continuation vote will first be tabled at
the Company's Annual General Meeting in 2028, and every three years
thereafter. Shareholders will be asked by simple majority vote if they wish
the Company to continue in its current form. In the event that the vote should
fail, further proposals will be brought to shareholders regarding the future
of the Company.
Share Capital Management
The Company bought back £12.5 million worth of shares during the period to be
held in treasury, representing 3.8% of the shares in issue at the start of the
period, at an average discount of 10.5% and providing an estimated enhancement
of 0.4% to the NAV per share. Subsequent to the period end, the Company has
bought back a further £0.8 million worth of shares.
The Company will continue to selectively buy back shares in the market, in
normal market conditions and at the discretion of the Board.
Gearing
The Company has a £50 million revolving credit facility which matures in
February 2026. At the period end, £31.1 million of the facility was drawn
down, resulting in gearing (net of cash) of 6.4%, compared to 7.2% at the
beginning of the period.
Online Shareholder Presentation
Our previous online shareholder presentations have been popular events and we
are pleased to hold another online presentation on Monday 6 October 2025 at
11.00am. The event will centre on a conversation between the Chairman and lead
portfolio manager and will be followed by a live question and answer session.
Full details on how to register for the event can be found on the Company's
website at: asian-income.co.uk.
Should you be unable to attend the online event, a recording will be available
on the Company's website shortly afterwards. For those wishing to submit
questions in advance, you can do so using the following email address:
asian.income@aberdeenplc.com.
Outlook
Asia continues to offer fertile ground for income investors. Quality companies
of the type sought after by the Investment Manager have robust financials,
capable management teams and globally competitive businesses that have enabled
them to weather past shocks well. Many are now recognising the strategic value
of dividends - not merely as shareholder appeasement, but as a signal of
confidence and financial strength.
This mindset shift is evident in China, where state-owned enterprises and
internet giants are embracing dividend policies. In addition, South Korea's
'Value Up' reforms are moving companies toward greater transparency and
shareholder return discipline.
Despite prevailing macro risks, including the impact of US trade tariffs, the
Company's portfolio remains invested in high-quality companies with resilient
earnings and robust dividends. The Investment Manager continues to view market
volatility as a way to selectively buy into companies with attractive yields
and sustainable fundamentals.
Looking ahead, we remain cautiously optimistic. Dividend cuts appear unlikely
given the earnings stability of holdings in the portfolio, and the potential
for US Dollar weakness and monetary easing by the Federal Reserve could
further support flows into Asia.
In this environment, the discipline of dividend investing built on the
Investment Manager's rigorous bottom-up fundamental investing expertise offers
not just income but also clarity at a time when uncertainty appears the norm.
Ian Cadby
Chairman
13 August 2025
Investment Portfolio
As at 30 June 2025
Valuation Total assets
Company Country £'000 %
Taiwan Semiconductor Manufacturing Company Taiwan 44,793 11.6
DBS Group Singapore 19,020 4.9
Tencent Holdings Hong Kong 18,222 4.7
Samsung Electronics (Pref) South Korea 15,022 3.9
Power Grid Corp India 12,993 3.4
HDFC Bank India 12,465 3.2
Transurban Group Australia 11,617 3.0
MediaTek Taiwan 9,149 2.4
Samsung Fire & Marine Insurance South Korea 8,554 2.2
China Merchants Bank 'H' China 8,495 2.2
Top ten investments 160,330 41.5
PICC Property and Casualty 'H' China 8,314 2.2
Tata Consultancy Services India 8,210 2.1
Infosys India 7,576 2.0
China Construction Bank China 7,517 2.0
Ping An Insurance China 7,502 1.9
Alibaba China 7,455 1.9
Inner Mongolia Yili Industrial 'A' China 7,449 1.9
Taiwan Union Technology Taiwan 7,417 1.9
Bank Mandiri Indonesia 7,372 1.9
Telstra Corporation Australia 7,005 1.8
Top twenty investments 236,147 61.1
Hang Lung Properties Hong Kong 6,940 1.8
Region RE Australia 6,874 1.8
Rio Tinto(B) Australia 6,517 1.7
SITC International Holdings Hong Kong 6,441 1.6
Accton Technology Taiwan 6,101 1.6
PTT Exploration and Production (Alien) Thailand 6,058 1.6
Capitaland India Trust Singapore 6,002 1.6
BHP Group Australia 5,954 1.5
NetEase Hong Kong 5,877 1.5
Telkom Indonesia (Persero) Indonesia 5,642 1.4
Top thirty investments 298,553 77.2
Tisco Financial Group Foreign Thailand 5,523 1.4
Centuria Industrial REIT Australia 5,476 1.4
Dah Sing Financial Holding Hong Kong 5,393 1.4
China Resources Land China 5,081 1.3
Mirvac Group Australia 4,656 1.2
Commonwealth Bank of Australia Australia 4,516 1.2
Singapore Telecommunications Singapore 4,265 1.1
Insurance Australia Australia 3,950 1.1
AIA Group Hong Kong 3,932 1.0
Midea Group 'A'(C) China 3,905 1.0
Top forty investments 345,250 89.3
SCB X Thailand 3,786 1.0
Fuyao Glass Industry 'A' China 3,762 1.0
Taiwan Mobile Taiwan 3,734 1.0
Bank Rakyat Indonesia 3,549 0.9
Midea Group(D) China 3,426 0.9
Charter Hall Long Wale REIT Australia 3,240 0.8
Hangzhou Robam Appliances 'A' China 2,967 0.8
National Australia Bank Australia 2,109 0.5
Sunonwealth Electric Machine Taiwan 2,008 0.5
Axtra Future City Freehold and Leasehold REIT Thailand 1,973 0.5
Top fifty investments 375,804 97.2
Bajaj Auto India 1,914 0.5
Total value of investments 377,718 97.7
Net current assets(E) 8,960 2.3
Total assets(A) 386,678 100.0
(A) Net assets excluding borrowings.
(B) Incorporated in and listing held in United Kingdom.
(C) Shares denominated in Chinese Renminbi.
(D) Shares denominated in Hong Kong Dollars.
(E) Excludes revolving credit facility of £31,091,000 and includes deferred
tax liability on Indian capital gains of £657,000.
Condensed Statement of Comprehensive Income
Six months ended Six months ended
30 June 2025 30 June 2024
(unaudited) (unaudited)
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Investment income
Dividend income 15,217 - 15,217 11,275 - 11,275
Interest Income 142 - 142 208 - 208
Stock lending income 3 - 3 38 - 38
Total revenue 15,362 - 15,362 11,521 - 11,521
(Losses)/gains on investments held at fair value through profit or loss - (7,679) (7,679) - 15,827 15,827
Net currency gains/(losses) - 1,180 1,180 - (637) (637)
15,362 (6,499) 8,863 11,521 15,190 26,711
Expenses
Investment management fee (481) (622) (1,103) (553) (660) (1,213)
Other operating expenses (572) - (572) (525) - (525)
Total operating expenses (1,053) (622) (1,675) (1,078) (660) (1,738)
Profit/(loss) before finance costs and tax 14,309 (7,121) 7,188 10,443 14,530 24,973
Finance costs (346) (519) (865) (383) (574) (957)
Profit/(loss) before tax 13,963 (7,640) 6,323 10,060 13,956 24,016
Tax expense (1,127) 508 (619) (671) (480) (1,151)
Profit/(loss) for the period 12,836 (7,132) 5,704 9,389 13,476 22,865
Earnings per Ordinary share (pence) (note 3) 8.75 (4.86) 3.89 5.73 8.23 13.96
The Company does not have any income or expense that is not included in
profit/(loss) for the period, and therefore the "Profit/(loss) for the period"
is also the "Total comprehensive income for the period".
The total columns of this statement represent the Condensed Statement of
Comprehensive Income of the Company, prepared in accordance with IFRS. The
revenue and capital columns are supplementary to this and are prepared under
guidance published by the Association of Investment Companies. All items in
the above statement derive from continuing operations.
All of the profit/(loss) and total comprehensive income is attributable to the
equity holders of Aberdeen Asian Income Fund Limited. There are no
non-controlling interests.
The accompanying notes are an integral part of the financial statements.
Condensed Statement of Comprehensive Income (cont'd)
Year ended
31 December 2024
(audited)
Revenue Capital Total
£'000 £'000 £'000
Investment income
Dividend income 21,918 - 21,918
Interest Income 325 - 325
Stock lending income 43 - 43
Total revenue 22,286 - 22,286
(Losses)/gains on investments held at fair value through profit or loss - 20,372 20,372
Net currency gains/(losses) - (773) (773)
22,286 19,599 41,885
Expenses
Investment management fee (1,053) (1,315) (2,368)
Other operating expenses (1,049) - (1,049)
Total operating expenses (2,102) (1,315) (3,417)
Profit/(loss) before finance costs and tax 20,184 18,284 38,468
Finance costs (780) (1,170) (1,950)
Profit/(loss) before tax 19,404 17,114 36,518
Tax expense (1,338) (968) (2,306)
Profit/(loss) for the period 18,066 16,146 34,212
Earnings per Ordinary share (pence) (note 3) 11.35 10.14 21.49
Condensed Balance Sheet
As at As at As at
30 June 30 June 31 December 2024
2025
2024
(unaudited) (unaudited) (audited)
Notes £'000 £'000 £'000
Non-current assets
Investments held at fair value through profit or loss 377,718 421,861 406,041
Current assets
Cash and cash equivalents 6,667 2,459 9,349
Other receivables 3,556 6,687 1,421
10,223 9,146 10,770
Creditors: amounts falling due within one year
Bank loans 6 (31,091) (32,248) (32,422)
Other payables (606) (3,037) (4,788)
(31,697) (35,285) (37,210)
Net current liabilities (21,474) (26,139) (26,440)
Total assets less current liabilities 356,244 395,722 379,601
Creditors: amounts falling due after more than one year
Deferred tax liability on Indian capital gains (657) (1,791) (1,706)
(657) (1,791) (1,706)
Net assets 355,587 393,931 377,895
Stated capital and reserves
Stated capital 7 194,933 194,933 194,933
Capital redemption reserve 1,560 1,560 1,560
Capital reserve 148,041 184,478 167,722
Revenue reserve 11,053 12,960 13,680
Equity shareholders' funds 355,587 393,931 377,895
Net asset value per Ordinary share (pence) 4 245.99 247.36 251.42
The financial statements were approved by the Board of Directors and
authorised for issue on 13 August 2025 and were signed on its behalf by:
Ian Cadby
Chairman
The accompanying notes are an integral part of the financial statements.
Condensed Statement of Changes in Equity
Six months ended 30 June 2025 (unaudited)
Capital
Stated redemption Capital Revenue
capital reserve reserve reserve Total
£'000 £'000 £'000 £'000 £'000
Opening balance 194,933 1,560 167,722 13,680 377,895
Buyback of Ordinary shares for treasury - - (12,549) - (12,549)
Profit for the period - - (7,132) 12,836 5,704
Dividends paid (note 5) - - - (15,463) (15,463)
Balance at 30 June 2025 194,933 1,560 148,041 11,053 355,587
Six months ended 30 June 2024 (unaudited)
Capital
Stated redemption Capital Revenue
capital reserve reserve reserve Total
£'000 £'000 £'000 £'000 £'000
Opening balance 194,933 1,560 187,549 14,826 398,868
Buyback of Ordinary shares for treasury - - (16,547) - (16,547)
Profit for the period - - 13,476 9,389 22,865
Dividends paid (note 5) - - - (11,255) (11,255)
Balance at 30 June 2024 194,933 1,560 184,478 12,960 393,931
Year ended 31 December 2024 (audited)
Capital
Stated redemption Capital Revenue
capital reserve reserve reserve Total
£'000 £'000 £'000 £'000 £'000
Opening balance 194,933 1,560 187,549 14,826 398,868
Buyback of Ordinary shares for treasury - - (35,973) - (35,973)
Profit for the period - - 16,146 18,066 34,212
Dividends paid (note 5) - - - (19,212) (19,212)
Balance at 31 December 2024 194,933 1,560 167,722 13,680 377,895
The revenue reserve represents the amount of the Company's reserves
distributable by way of dividend.
The stated capital in accordance with Companies (Jersey) Law 1991 Article 39A
is £260,822,000 (30 June 2024 - £260,822,000; 31 December 2024 -
£260,822,000). These amounts include proceeds arising from the issue of
shares by the Company, but exclude the cost of shares purchased for
cancellation or treasury by the Company.
The accompanying notes are an integral part of the financial statements.
Condensed Statement of Cash Flows
Six months ended Six months ended Year ended
30 June 2025 30 June 2024 31 December 2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Cash flows from operating activities
Dividend income received 14,571 10,703 22,084
Interest income received 143 253 -
Return of capital included in investment income - - (3,090)
Investment management fee paid (1,118) (2,108) -
Other cash expenses (462) (542) (1,827)
Cash generated from operations 13,134 8,306 17,167
Interest paid (954) (795) (1,529)
Overseas taxation paid (1,085) (588) (655)
Net cash inflows from operating activities 11,095 6,923 14,983
Cash flows from investing activities
Purchases of investments (288,908) (94,982) (204,628)
Sales of investments 303,893 117,578 253,457
Capital gains tax on sales (566) (303) -
Net cash inflow from investing activities 14,419 22,293 48,829
Cash flows from financing activities
Purchase of own shares for treasury (12,549) (16,548) (35,973)
Dividends paid (15,463) (11,255) (19,212)
Costs associated with loan (29) - (65)
Net cash outflow from financing activities (28,041) (27,803) (55,250)
Net (increase)/decrease in cash and cash equivalents (2,527) 1,413 8,562
Cash and cash equivalents at the start of the period 9,349 1,560 1,560
Foreign exchange (155) (514) (773)
Cash and cash equivalents at the end of the period 6,667 2,459 9,349
The accompanying notes are an integral part of the financial statements.
Notes to the Financial Statements
For the year ended 30 June 2025
1. Accounting policies - basis of preparation
The Annual Report is prepared in accordance with International Financial
Reporting Standards (IFRS), as issued by the International Accounting
Standards Board (IASB), and interpretations issued by the International
Financial Reporting Interpretations Committee of the IASB (IFRIC). The
condensed Half Yearly Report has been prepared in accordance with
International Accounting Standards (IAS) 34 - 'Interim Financial Reporting'
and should be read in conjunction with the Annual Report for the year ended 31
December 2024.
The financial statements have been prepared on a going concern basis. In
accordance with the Financial Reporting Council's guidance on 'Going Concern
and Liquidity Risk' the Directors have undertaken a review of the Company's
assets and liabilities. The Company's assets primarily consist of a diverse
portfolio of listed equity shares which, in most circumstances, are realisable
within a very short timescale.
The condensed interim financial statements have been prepared using the same
accounting policies as the preceding annual financial statements.
During the period the following standards, amendments to standards and new
interpretations became effective. The adoption of these standards and
amendments did not have a material impact on the financial statements:
IAS 21 Amendments - Lack of Exchangeability (effective for accounting periods
beginning on or after 1 January 2025)
2. Segmental information
For management purposes, the Company is organised into one main operating
segment, which invests 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 upon
analysis of the Company as one segment. The financial results from this
segment are equivalent to the financial statements of the Company as a whole.
3. Earnings per Ordinary share
Six months ended Six months ended Year ended
30 June 30 June 31 December 2024
2025
2024
(unaudited) (unaudited) (audited)
p p p
Revenue return 8.75 5.73 11.35
Capital return (4.86) 8.23 10.14
Total return 3.89 13.96 21.49
The figures above are based on the following:
Six months ended Six months ended Year ended
30 June 30 June 31 December 2024
2025
2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Revenue return 12,836 9,389 18,066
Capital return (7,132) 13,476 16,146
Total return 5,704 22,865 34,212
Weighted average number of Ordinary shares in issue 146,695,527 163,833,141 159,233,450
4. Net asset value per share
Ordinary shares. The basic net asset value per Ordinary share and the net
asset values attributable to Ordinary shareholders at the period end
calculated in accordance with the Articles of Association were as follows:
As at As at As at
30 June 30 June 31 December 2024
2025
2024
(unaudited) (unaudited) (audited)
Attributable net assets (£'000) 355,587 393,931 377,895
Number of Ordinary shares in issue (excluding shares in issue held in 144,550,952 159,252,038 150,306,492
treasury)
Net asset value per Ordinary share (p) 245.99 247.36 251.42
5. Dividends on equity shares
Six months ended Six months ended Year ended
30 June 30 June 31 December 2024
2025
2024
(unaudited) (unaudited) (audited)
£'000 £'000 £'000
Amounts recognised as distributions to equity holders in the period:
Second interim dividend 2024 - 2.55p per Ordinary share - - 4,043
Third interim dividend 2024 - 2.55p per Ordinary share - - 3,914
Fourth interim dividend for 2024 - 6.78p per Ordinary share (2023 - 4.25p) 10,149 7,100 7,100
First interim dividend for 2025 - 3.65p per Ordinary share (2024 - 2.55p) 5,314 4,155 4,155
15,463 11,255 19,212
A second interim dividend of 3.84p for the year to 31 December 2025 will be
paid on 22 August 2025 to shareholders on the register on 25 July 2025. The
ex-dividend date was 24 July 2025.
6. Bank loans
At the period end approximately GBP 17.8 million, USD 8.85 million and HKD
73.5 million, equivalent to £31.1 million was drawn down from the £50
million multi-currency revolving facility with Bank of Nova Scotia, London
Branch. The interest rates attributed to the GBP, USD and HKD loans at the
period end were 5.17%, 5.24% and 2.50% respectively.
On 27 February 2025, the Company renewed its secured, one year £50 million
multi-currency revolving credit facility with Bank of Nova Scotia, London
Branch. Under the terms of the revolving credit facility, the Company has the
option to increase the level of the commitment from £50 million to £70
million at any time, subject to the Lender's credit approval.
7. Stated capital
The Company has issued 194,933,389 Ordinary shares of no par value, which are
fully paid (30 June 2024 - 194,933,389 ; 31 December 2024 - 194,933,389).
During the period 5,755,540 Ordinary shares were bought back by the Company
for holding in treasury at a cost of £12,549,000 (30 June 2024 - 7,926,669
shares were bought back at a cost of £16,548,000 ; 31 December 2024 -
16,872,215 shares were bought back for holding in treasury at a cost of
£35,973,000). As at 30 June 2025 50,382,437 (30 June 2024 - 35,681,351; 31
December 2024 - 44,626,897) Ordinary shares were held in treasury.
A further 320,418 Ordinary shares have been bought back by the Company for
holding in treasury, subsequent to the reporting period end, at a cost of
£752,000. Following the share buybacks there were 144,230,534 Ordinary shares
in issue excluding those held in treasury.
8. Related party disclosures
There have been no transactions with related parties during the period which
have materially affected the financial position or the performance of the
Company.
9. Fair value hierarchy
IFRS 13 'Fair Value Measurement' requires an entity to classify fair value
measurements using a fair value hierarchy that reflects the significance of
the inputs used in making measurements. The fair value hierarchy has the
following levels:
Level 1: quoted prices (unadjusted) in active markets for identical assets or
liabilities;
Level 2: inputs other than quoted prices included within Level 1 that are
observable for the assets or liability, either directly (i.e. as prices) or
indirectly (i.e. derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable
market data (unobservable inputs).
The financial assets and liabilities measured at fair value in the Condensed
Balance Sheet are grouped into the fair value hierarchy as follows:
Level 1 Level 2 Level 3 Total
At 30 June 2025 (unaudited) £'000 £'000 £'000 £'000
Financial assets at fair value through profit or loss
Quoted equities 377,718 - - 377,718
Quoted bonds - - - -
Total assets 377,718 - - 377,718
Level 1 Level 2 Level 3 Total
At 30 June 2024 (unaudited) £'000 £'000 £'000 £'000
Financial assets at fair value through profit or loss
Quoted equities 418,543 - - 418,543
Quoted bonds - 3,318 - 3,318
Total assets 418,543 3,318 - 421,861
Level 1 Level 2 Level 3 Total
At 31 December 2024 (audited) £'000 £'000 £'000 £'000
Financial assets at fair value through profit or loss
Quoted equities 406,041 - - 406,041
Quoted bonds - - - -
Total assets 406,041 - - 406,041
10. Half Yearly Financial Report
The financial information for the six months ended 30 June 2025 and 30 June
2024 has not been audited.
Alternative Performance Measures
Alternative Performance Measures (Unaudited)
Alternative performance measures 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 IFRS 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 discount is the amount by which the share price is lower than the net
asset value per share, expressed as a percentage of the net asset value.
30 June 2025 31 December 2024
NAV per Ordinary share (p) a 245.99 251.42
Share price (p) b 223.00 220.00
Discount (a-b)/a 9.3% 12.5%
Dividend yield
The yield for 30 June 2025 is calculated based on the prospective annual
dividend for 2025 per Ordinary share in accordance with the Board's stated
target divided by the share price, expressed as a percentage. The yield for 31
December 2024 is calculated based on the annual dividend for 2024 per Ordinary
share divided by the share price, expressed as a percentage.
30 June 2025 31 December 2024
Annual dividend per Ordinary share a 15.17p 14.43p
Share price b 223.00p 220.00p
Dividend yield a/b 6.8% 6.6%
Net gearing
Net gearing measures the total borrowings less cash and cash equivalents
dividend by shareholders' funds, expressed as a percentage. Under AIC
reporting guidance cash and cash equivalents includes amounts due to and from
brokers at the period end as well as cash and cash equivalents.
30 June 2025 31 December 2024
Borrowings (£'000) a 31,091 32,422
Cash (£'000) b 6,667 9,349
Amounts due to brokers (£'000) c - 4,127
Amounts due from brokers (£'000) d 1,532 -
Shareholders' funds (£'000) e 355,587 377,895
Net gearing (a-b+c-d)/e 6.4% 7.2%
Ongoing charges ratio
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
for 30 June 2025 is based on forecast ongoing charges for the year ending 31
December 2025.
30 June 2025 31 December 2024
Investment management fees (£'000) 2,230 2,368
Administrative expenses (£'000) 1,075 1,049
Less: non-recurring charges (A) (£'000) (47) (134)
Ongoing charges (£'000) 3,258 3,283
Average net assets (£'000) 354,392 384,548
Ongoing charges ratio 0.92% 0.85%
(A) Professional services comprising advisory and legal fees considered
unlikely to recur.
The ongoing charges percentage provided in the Company's Key Information
Document is calculated in line with the PRIIPs regulations which among other
things, includes the cost of borrowings and transaction costs.
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. Share price and NAV total
returns are monitored against open-ended and closed-ended competitors, and the
Reference Index, respectively.
Share
Six months ended 30 June 2025 NAV Price
Opening at 1 January 2025 a 251.42p 220.00p
Closing at 30 June 2025 b 245.99p 223.00p
Price movements c=(b/a)-1 -2.2% 1.4%
Dividend reinvestment (A) d 4.4% 4.9%
Total return c+d 2.2% 6.3%
Share
Year ended 31 December 2024 NAV Price
Opening at 1 January 2024 a 238.59p 208.00p
Closing at 31 December 2024 b 251.42p 220.00p
Price movements c=(b/a)-1 5.4% 5.8%
Dividend reinvestment (A) d 5.4% 6.2%
Total return c+d 10.8% 12.0%
(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.
Interim Board Report - Disclosures
Principal Risk Factors
The principal risks and uncertainties affecting the Company are set out below
and in detail on pages 21 to 23 of the Annual Report for the year ended 31
December 2024 and are not expected to change materially for the remaining six
months of the Company's financial year.
The risks outlined below are those risks that the Directors considered at the
date of this Half Yearly Report to be material but are not the only risks
relating to the Company or its shares. If any of the adverse events described
below actually occur, the Company's financial condition, performance and
prospects and the price of its shares could be materially adversely affected
and shareholders may lose all or part of their investment. Additional risks
which were not known to the Directors at the date of this Half Yearly Report,
or that the Directors considered at the date of this Report to be immaterial,
may also have an effect on the Company's financial condition, performance and
prospects and the price of the shares.
If shareholders are in any doubt as to the consequences of their acquiring,
holding or disposing of shares in the Company or whether an investment in the
Company is suitable for them, they should consult their stockbroker, bank
manager, solicitor, accountant or other independent financial adviser
authorised under the Financial Securities and Markets Act 2000 (as amended by
the Financial Services Act 2012) or, in the case of prospective investors
outside the United Kingdom, another appropriately authorised independent
financial adviser.
The risks can be summarised under the following headings:
· Investment strategy & objectives
· Investment portfolio & investment management
· Marketing & shareholder communication
· Discount management
· Regulatory
· Cyber
· Operational
· Geo-political
In addition to these risks, the Board is conscious of the ongoing impacts of
the conflicts in Ukraine and the Middle East, as well as continuing tensions
between the US and China. The Board is also conscious of the impact of
higher-than-forecast inflation in the UK and its potential impact on interest
rate expectations, and also the potential impact on economic growth globally
of US trade tariffs. The Board considers that these are risks that could have
further implications for financial markets.
An explanation of other risks relating to the Company's investment activities,
specifically market, liquidity and credit risk, and a note of how these risks
are managed, are contained in note 18 on pages 76 to 84 of the Annual Report
for the year ended 31 December 2024.
Going Concern
The Directors have undertaken a robust review of the Company's ability to
continue as a going concern. The Company's assets consist primarily of a
diverse portfolio of listed equity shares which in most circumstances are
realisable within a very short timescale.
The Directors have reviewed forecasts detailing revenue and liabilities, have
set limits for borrowing and reviewed compliance with banking covenants,
including the headroom available.
The Company has a £50 million revolving credit facility which matures in
February 2026. In the event that it is not possible to renew the loan, the
Board considers that there is sufficient portfolio liquidity to enable it to
be repaid.
Having taken these factors into account, the Directors believe that the
Company has adequate financial resources to continue in operational existence
for the foreseeable future and at least 12 months from the date of this Half
Yearly Report. Accordingly, the Directors continue to adopt the going concern
basis in preparing these 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 interim financial statements contained
within the Half Yearly Financial Report which have been prepared in accordance
with IAS 34 "Interim Financial Reporting", give a true and fair view of the
assets, liabilities, financial position and profit or loss of the Company;
· the Half-Yearly Board Report includes a fair review of the
information required by rule 4.2.7R of the 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
· the Half-Yearly Board Report includes a fair review of the
information required by 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 do so).
On behalf of the Board
Ian Cadby
Chairman
13 August 2025
The Half Year Report will be posted to shareholders in August 2025 and copies
will be available on the Company's website (www.asian-income.co.uk*).
*Neither the Company's website nor the content of any website accessible from
hyperlinks on that website (or any other website) is (or is deemed to be)
incorporated into, or forms (or is deemed to form) part of this announcement
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