REG - Asia Dragon Trust - Half-year Report
27/04/2023 07:00
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RNS Number : 5986X Asia Dragon Trust PLC 27 April 2023
26 April 2023
Legal Entity Identifier (LEI): 549300W4KB0D75D1N730
Asia Dragon Trust plc (the "Company")
Half-Yearly Report 28 February 2023
Capturing growth from world-class Asian companies
Financial highlights for Company for the six month reporting period include:
· Net asset value ("NAV") fell by 7.2% over the period,
underperforming the MSCI All-Country Asia ex Japan Index (the "Benchmark"),
which declined by 5.7% (both in sterling and total return terms). The share
price decreased by 6.5% as the discount to NAV per share narrowed from 13.1%
at the end of August 2022 to 12.6%.
· Continued long-term outperformance of the benchmark: over 15% in
NAV terms in the five years to 28 February 2023. The Company targets long-term
capital growth through investment in Asia (with the exception of Japan and
Australasia), investing primarily in stock markets in the region, principally
in large companies.
· The Company's six month performance reflected another challenging
period for stock markets, including those in Asia. Amid the on-going Ukraine
war, rising inflation led to fears that central banks would continue to raise
interest rates and a global recession could soon be at hand. The end of
China's strict 'zero-Covid' policy raised hopes of the start of an economic
recovery and Asia continued to be supported by strong, long-term structural
drivers. As a result Asian equity markets recovered some lost ground in the
second part of the period.
· Portfolio well positioned to weather near-term risks, and take
advantage of the strong structural secular trends across Asia. The focus
remains on quality companies with sustainable business models, robust finances
and access to macro growth drivers. The Company continues to favour
fundamental themes including consumption, technology and green energy, with
the firm belief that these will continue to deliver positive long-term results
for shareholders.
James Will, Chairman, Asia Dragon Trust plc, said: "Within a global context,
several themes continue to favour Asia as a region. Compared to much of the
developed world, many Asian economies have been late in reopening after the
easing of Covid-19 restrictions. We are also seeing continued policy support
in the region. These positive moves are helping to bolster a recovery in
consumer spending and we expect an improved earnings outlook for companies
exposed to this domestic demand theme. Meanwhile, both current account and
fiscal discipline have improved in Asia since the 1997 Asian Financial Crisis
which has increased the region's resilience to economic downturns."
Performance Highlights
Net asset value total return (A) Share price total return (A)
Six months ended 28 February 2023 Six months ended 28 February 2023
-7.2% -6.5%
Year ended 31 August 2022 -8.4% Year ended 31 August 2022 -11.8%
Benchmark total return (in sterling terms) Discount to net asset value(A)
Six months ended 28 February 2023 As at 28 February 2023
-5.7% 12.6%
Year ended 31 August 2022 -7.1% As at 31 August 2022 13.1%
(A) Considered to be an Alternative Performance Measure see below.
6 months ended Year ended 01/09/2021 - 3 years ended 5 years ended 10 years ended
28/02/2023 28/02/2023 28/02/2023(A) 28/02/2023 28/02/2023 28/02/2023
Net asset value per share(B) -7.2% -8.0% -13.9% +10.0% +15.4% +63.6%
Share price(B) -6.5% -12.0% -14.1% +9.3% +18.0% +55.9%
MSCI AC Asia (ex Japan) Index (sterling adjusted) -5.7% -4.8% -12.4% +10.7% +10.4% +82.0%
(A) The monitoring period for the Company's five year performance related
conditional tender commenced on 1 September 2021. See the outside back cover
of the published Half Yearly Report for the six months to 28 February 2023 for
further details.
(B) Considered to be an Alternative Performance Measure see below.
Financial Calendar and Highlights
Financial Calendar
Financial year end 31 August 2023
Announcement of annual results for year ending 31 August 2023 November 2023
Annual General Meeting December 2023
Final Ordinary dividend payable for year ending 31 August 2023 December 2023
Financial Highlights
28 February 2023 31 August 2022 % change
Total shareholders' funds (£'000) 549,954 614,369 -10.5
Net asset value per share (capital return basis) (p) 469.24 513.32 -8.6
Share price (capital return basis) (p) 410.00 446.00 -8.1
Discount to net asset value (%) (A) 12.6 13.1
MSCI AC Asia (ex Japan) Index (in sterling terms; capital return basis) 964.33 1,030.48 -6.4
Net gearing % (A) 9.6 9.0
Ongoing charges ratio (A) 0.91 0.84
(A) Considered to be an Alternative Performance Measure see below.
Chairman's Statement
Results
The six months to 28 February 2023 was another challenging period for stock
markets, including those in Asia. Amid the on-going Ukraine war, rising
inflation led to fears that central banks would continue to raise interest
rates and a global recession could soon be at hand. The end of China's strict
'zero-Covid' policy raised hopes of the start of an economic recovery and Asia
continued to be supported by strong, long-term structural drivers. As a result
Asian equity markets recovered some lost ground in the second part of the
period.
Against this backdrop, the Company's net asset value ("NAV") fell by 7.2% over
the period, underperforming the MSCI All-Country Asia ex Japan Index (the
"Benchmark"), which declined by 5.7% (both in sterling and total return
terms). The share price decreased by 6.5% as the discount to NAV per share
narrowed from 13.1% at the end of August 2022 to 12.6%.
Market Review
The review period saw the dominance of a few key overarching global themes
which held sway over market sentiment. Investors were worried not just about
continued tightening of monetary policy across most developed economies, but
also its duration, with concerns that major central banks would keep interest
rates higher, and for longer, to combat persistently high inflation, thereby
potentially triggering a global recession. In the US, for instance, although
the annual rate of inflation began to abate initially, subsequent buoyant US
economic data signalled a potential delay in loosening monetary policy. The US
10-year Treasury yield touched almost 4% in February, not far off its near
14-year high of 4.3%, recorded last October.
Developments in China also featured prominently. As the 20th Communist Party
Congress drew to a close in late October, the increased centralisation of
power caused some market unease. Investor sentiment improved from November,
however, as the government eased stringent Covid-19 curbs and rolled out
economic support measures. Aside from buoying up Chinese equity prices,
China's faster-than-expected reopening in December also lifted the
export-oriented markets of Taiwan and South Korea.
Performance and Portfolio Activity
The main reason for underperformance in the period was the Company's exposure
to China and Vietnam. In China, this was mainly a result of holdings within
the internet sector, which have been particularly volatile during the review
period.
When it comes to investing in companies, environmental, social and governance
(ESG) criteria are deeply embedded in your Manager's investment process. As a
result, the Company had no exposure to India-based Adani Group's stable of
listed companies which were sold off heavily on the back of a US
short-seller's report alleging fraud at the conglomerate. Your Manager has
avoided Adani entities on governance concerns and the lack of exposure
contributed materially to performance in the current period.
Revenue Account
For the six months ended 28 February 2023, the revenue account recorded an
increased return on ordinary activities after taxation of £1.5m, representing
1.29p per share, compared with a return of £1.2m for the six months to 28
February 2022 (0.97p per share). The Company does not pay an interim
dividend.
Gearing
The Board believes that the sensible use of modest financial gearing should
enhance returns to shareholders over the longer term. The Company has two
loan facilities which have been provided by The Royal Bank of Scotland
International; the first is a £25 million fixed rate loan which has been
drawn in full and fixed for two years to July 2024 at an all-in rate of
3.5575% and the second is a £35 million multi-currency revolving credit
facility under which £30m had been drawn down at the period end. At 28
February 2023 the net gearing position was 9.6%, compared to 9.0% at the end
of August 2022. At the time of writing net gearing now stands at 8.1%.
Discount and Share Buybacks
The discount level of the Company's shares is closely monitored by the Board
and Investment Manager and the Board seeks to manage the discount in line with
the peer group. During the six months to 28 February 2023, 2.8 million
shares were bought back at a discount for treasury. Since 28 February 2023,
a further 1.0 million shares have been bought back into treasury. Shares
held in treasury can be reissued at a future date, at a premium to NAV per
share, should a suitable opportunity arise.
Outlook
Within a global context, several themes continue to favour Asia as a region.
Compared to much of the developed world, many Asian economies have been late
in reopening after the easing of Covid-19 restrictions. We are also seeing
continued policy support in the region. These positive moves are helping to
bolster a recovery in consumer spending and your Manager expects an improved
earnings outlook for companies exposed to this domestic demand theme.
Meanwhile, both current account and fiscal discipline have improved in Asia
since the 1997 Asian Financial Crisis which has increased the region's
resilience to economic downturns.
James Will
Chairman
26 April 2023
Investment Manager's Review
Performance
The benchmark index fell by 5.7% during the period under review; this
disguises the volatility during the period.
During the period the Company's NAV fell by 7.2%. This underperformance was
mainly due to our holdings in China and Vietnam.
In China, the volatility within the internet sector provided buying
opportunities for us and we selectively added to our holdings in the period
where we believe that the fundamentals continue to remain supportive and the
valuations attractive. Moreover, inflation is less of an issue in China and
the rest of Asia than it is elsewhere in the world, allowing the People's Bank
of China to cut interest rates, whereas other major central banks outside Asia
are still increasing them. Overall, we remain positive on China's longer-term
growth potential, especially around the themes of aspirational spending,
digitalisation, health, renewable energy, and wealth.
In Vietnam, although the Manager had reduced the Company's exposure, it is
still a non-benchmark position, and this proved costly during the period due
to concerns over the health of its banking and real estate sectors. That said,
we believe that the fundamentals remain largely intact and we added a new
holding in the period.
Portfolio Themes
We continue to believe that rising affluence in Asia will underpin strong
growth in premium consumption in certain areas, including financial services,
personal-care products and food and beverages. In particular, the portfolio
has a sizeable exposure to the financial sector. For instance, we hold Hong
Kong-based AIA Group, one of the biggest insurance companies in Asia, where
investors welcomed the potential for the company to kickstart its performance
with growth in China, a key market for the group. In addition, we continue to
favour well-capitalised banks with strong retail deposit franchises. Examples
of these include OCBC and DBS, in Singapore, and Bank of Central Asia, in
Indonesia.
The second theme that we seek to benefit from is the widespread adoption of
technology and the growing integration of Asian economies. We believe that
this should result in a bright future for companies providing gaming,
internet, fintech and technology services, such as cloud computing. The
current macro environment has hurt the technology sector, although we are
seeing a recovery in demand in some areas, such as the consumer sector. We
therefore prefer to gain exposure to the sector through quality companies,
such as Tencent and Alibaba in China, TSMC in Taiwan and Samsung Electronics
in South Korea. Meanwhile, Asian supply chains are well-positioned for
long-term structural growth related to the rollout of 5G, big data and digital
interconnectivity. Taiwan-based Andes Technology, which designs and licenses
CPU processor cores for use in electronic devices, is a beneficiary of these
trends.
The other major theme we seek to benefit from is increasing commitment by
policymakers, globally, to a greener and lower carbon future. In this regard
Asia is leading the way. Companies exposed to renewable energy, batteries,
electric vehicles, related infrastructure, and environmental management should
all benefit significantly. Achieving grid parity - where the cost of energy
from renewables becomes as cost-effective as that for energy sourced from
fossil fuels - will be a key event on the path towards decarbonising the world
and moving closer to achieving net zero by 2050. Examples of green energy
names held in the portfolio include Sungrow Power Supply, which provides
solutions for solar power projects, and Longi Green Energy Technology, a
manufacturer of high-efficiency solar products.
Notable Holdings
A number of the above-mentioned companies were among the key positive
contributors to performance but, in China, a key stock laggard during the
period was Yunnan Energy. As a supplier of advanced materials to electric
vehicle battery manufacturers, the company very much matches the
above-mentioned theme but its share price weakened substantially amid a probe
into the chairman and vice chairman. Following engagement with management,
although still recognising the company's strength in the overall battery
supply chain, we chose to exit the stock. Other holdings in JD.com, GDS and
Contemporary Amperex Technology retreated on profit-taking following a strong
rally previously. In Vietnam, our holding in Mobileworld was indirectly
impacted by the aforementioned concerns regarding the real estate and banking
sectors.
During the half year, we sold out of positions in India-based global IT
services provider Infosys, Hong Kong-based power tools manufacturer Techtronic
Industries, and Indian logistics company Delhivery, all in view of better
opportunities elsewhere.
New Holdings
FPT is a Vietnam-based diversified technology group with a fast-growing
software outsourcing business. FPT also owns a telecommunications unit and
an electronics retailing company, as well as having interests in other
sectors, such as education. We are positive for the profitability prospects
of FPT's various segments, especially given the company's
entrepreneurial management.
Autohome is the dominant online destination for automobile consumers in China.
It delivers comprehensive, independent and interactive content to automobile
buyers and owners. The core business benefits from the powerful network effect
characteristic of a classifieds business. In this instance, leadership in
content drives high quality user traffic, which benefits advertising and, in
turn, leads to the generation of higher revenues.
Aier Eye Hospital Group is China's largest domestic private eyecare hospital
chain, with demand supported by the ageing population, rising living standards
and government policies to improve the accessibility and standards of drugs
and healthcare.
Outlook
China's faster-than-expected reopening post-Covid bodes well for the Asian
region's prospects in 2023. Global geopolitical risks remain while economic
risks appear to be more focussed upon Europe and the US. That said, despite
earlier fears, investors now expect the US Fed's monetary policy tightening
cycle to come to an end later this year. Moreover, Asia is in a demonstrably
better position than developed economies in the West, with relatively strong
consumer and corporate balance sheets, and more solid government finances in
most of the region.
At the company level, it now appears that earnings downgrades in the Asia
ex-Japan region - particularly in the technology sector - are close to
bottoming. Just as Asia was the first region to see earnings forecasts being
revised lower, it is likely to be one of the first to come out of the
downgrade cycle.
We believe that we have positioned the portfolio to weather near-term risks,
while keeping in mind the strong long-term secular trends across Asia. The
focus remains on quality companies with sustainable business models, robust
finances and access to structural growth drivers. We continue to favour
fundamental themes like consumption, technology and green energy, with the
firm belief that these will deliver positive long-term results for
shareholders.
Adrian Lim and Pruksa Iamthongthong
abrdn (Asia) Limited
26 April 2023
Interim Management Report and Directors' Responsibility Statement
Principal Risks and Uncertainties
There are a number of risks which, if realised, could have a material adverse
effect on the Company and its financial position, performance and prospects.
The Board has in place a robust process to identify, assess and monitor the
principal risks and uncertainties facing the Company and to identify and
evaluate newly emerging risks. A summary of the principal risks and
uncertainties facing the Company is summarised below under the following
headings:
· Major Market Event or Geo-Political Risk
· Unacceptable Discount Volatility
· Investment Performance
· Concentration Risk
· Resource
· Operational Risk
· Gearing
· Regulatory
Details of these risks and a description of the mitigating actions which the
Company has taken are provided in detail on pages 16 to 18 of the 2022 Annual
Report.
In addition to these risks, there are also a large number of international
political and economic uncertainties which could have an impact on the
performance of Asian markets and the Board is monitoring closely the current
geo-political risks, market volatility and uncertainty associated with
Russia's invasion of Ukraine as well as the residual effects of the Covid-19
pandemic.
The Board is also mindful of the risks arising from emerging environmental,
social and governance ("ESG") challenges and climate change. The Board
continues to monitor, through the Investment Manager, the potential risk that
investee companies may fail to keep pace with ESG and climate change
developments.
In the view of the Board, in all other respects, the principal risks and
uncertainties have not changed materially during the six months to 28 February
2023. The Board continues to monitor the risk environment and does not
expect the risks facing the Company to change materially in the second half of
the financial year ending 31 August 2023.
Going Concern
The Directors have undertaken a rigorous review of the Company's ability to
continue as a going concern. The Company's assets consist substantially of
equity shares in companies listed on recognised stock exchanges and in most
circumstances are realisable within a short timescale.
The Company has a two year fixed rate loan and a two year revolving credit
facility which both expire in July 2024. The Board has set limits for
borrowing and regularly monitors the Company's covenant compliance and gearing
levels and is satisfied that there is sufficient headroom in place and
flexibility if required. The Board will start to explore replacement options
in advance of the expiry of the facilities and, should the Board decide not to
renew the facilities, any outstanding borrowing would be repaid through the
proceeds of equity sales as required.
The Board has considered the residual impact of Covid-19 on the Company's
operational resources and existence. The Company's portfolio comprises
entirely "Level 1" assets (listed on a recognisable exchange and realisable
within a short timescale), and the Company employs a moderate level of
gearing. Furthermore, the Investment Manager's systems as well as those of
the other key third party service providers have proved effective throughout
the course of the pandemic.
The Directors are mindful of the principal risks and uncertainties disclosed
above and, having reviewed forecasts detailing revenue and liabilities, they
believe that the Company has adequate financial resources to continue its
operational existence for the foreseeable future and for at least twelve
months from the date of this Report. Accordingly, they continue to adopt the
going concern basis of accounting in preparing the financial statements.
Related Party Disclosures and Transactions with the Alternative Investment
Fund Manager and Investment Manager
abrdn Fund Managers Limited ("aFML") has been appointed as the Company's
Alternative Investment Fund Manager ("AIFM").
aFML has (with the Company's consent) delegated certain portfolio and risk
management services, and other ancillary services, to abrdn Investments
Limited and abrdn Asia Limited which are regarded as related parties under the
UKLA's Listing Rules. Details of the fees payable to ASFML are set out in note
13 to the condensed
financial statements.
Responsibility Statement of the Directors in respect of the Half-Yearly Financial Report
The Disclosure Guidance and Transparency Rules of the UK Listing Authority
require the Directors to confirm their responsibilities in relation to the
preparation and publication of the Interim Management Report and Financial
Statements.
The Directors confirm to the best of their knowledge that:
· the condensed set of financial statements contained within the
Half-Yearly financial report has been prepared in accordance with FRS 104
Interim Financial Reporting and give a true and fair view of the assets,
liabilities, financial position and return of the Company for the period ended
28 February 2023; and;
· the Interim Management Report, together with the Chairman's Statement
includes a fair review of the information required by:
a) DTR 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 year; and
b) DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related party transactions that have taken place in the first six months of
the current financial year and that have materially affected the financial
position or performance of the Company during that period; and any changes in
the related party transactions described in the last Annual Report that could
do so.
The Half-Yearly Financial Report was approved by the Board and the above
Directors' Responsibility Statement was signed on its behalf by the Chairman.
For Asia Dragon Trust plc,
James Will
Chairman
26 April 2023
Ten Largest Investments
As at 28 February 2023
Taiwan Semiconductor Manufacturing Company Tencent Holdings
As the world's largest pure-play semiconductor manufacturer, TSMC provides a The internet giant continues to strengthen its ecosystem and we see great
full range of integrated foundry services, along with a robust balance sheet potential in its ability to balance its multiple revenue streams and monetise
and good cash generation that enables it to keep investing in cutting-edge its social media and payment platforms whilst navigating the regulatory
technology and innovation. landscape.
AIA Group Samsung Electronics (Pref)
A leading pan-Asian life insurance company, it is poised to take advantage of One of the global leaders in the memory chips segment, and a major player in
Asia's growing affluence, backed by an effective agency force and a strong smartphones and display panels as well. It has a vertically integrated
balance sheet. business model and robust balance sheet, alongside good free cash flow
generation.
Housing Development Finance Corp Alibaba Group
A steady, well-managed financial services conglomerate with leading positions The Chinese internet group is a leading global e-commerce company with many
in mortgage finance, retail banking, life insurance and asset management, impressive businesses, including the Taobao and Tmall online platforms in
supported by a broad distribution network, efficient cost structure and China. It also has interests in logistics, media as well as cloud computing
balance sheet quality. platforms and payments.
DBS Group Bank Central Asia
The largest Singapore bank, DBS Group is also the best managed with a clear Among the largest local non state owned banks in Indonesia, it is well
strategy. It is backed by good digital infrastructure, and operates with a capitalised and has a big and stable base of low-cost deposits that funds its
strong focus on efficiency of returns, as shown in the distinctively better lending, while asset quality has remained solid.
return on equity than local peers.
Kweichow Moutai 'A' China Tourism Group Duty Free Corp (A)
Kweichow Moutai is a leading hard liquor (baiju) producer that boasts a China Tourism Group is the largest duty-free operator in China and a good
dominant brand and a cash generative business. Its brand value stems from a proxy for the rising demand for duty-free cosmetics and skincare and outbound
long history and its rich heritage, which account for its wide domestic travel on the mainland.
business moat.
Investment Portfolio
At 28 February 2023
Total
Valuation assets
Company Industry Country £'000 %
Taiwan Semiconductor Manufacturing Company Semiconductors & Semiconductor Equipment Taiwan 55,530 9.2
Tencent Holdings Interactive Media & Services China 37,039 6.1
AIA Group Insurance Hong Kong 36,208 6.0
Samsung Electronics (Pref) Technology Hardware Storage & Peripherals South Korea 33,875 5.6
Housing Development Finance Corp Diversified Financial Services India 24,165 4.0
Alibaba Group Internet & Direct Marketing Retail China 21,807 3.6
DBS Group Banks Singapore 16,444 2.7
Bank Central Asia Banks Indonesia 16,017 2.6
Kweichow Moutai 'A' Beverages China 14,862 2.4
China Tourism Group Duty Free Corp (A) Speciality Retail China 12,451 2.1
Top ten investments 268,398 44.3
Oversea-Chinese Banking Corporation Banks Singapore 12,422 2.0
SBI Life Insurance Insurance India 11,579 1.9
LG Chem Chemicals South Korea 10,622 1.8
Budweiser Brewing Beverages Hong Kong 10,273 1.7
Hon Hai Precision Industry Electronic Equipment, Instruments & Components Taiwan 10,131 1.7
JD.com Inc - Class A Internet & Direct Marketing Retail China 9,919 1.6
Meituan-Dianping - Class B Internet & Direct Marketing Retail China 9,815 1.6
Power Grid Corporation Electric Utilities India 9,741 1.6
Kasikornbank 'F' Banks Thailand 9,717 1.6
Maruti Suzuki India Automobiles India 9,461 1.6
Twenty largest investments 372,078 61.4
Hong Kong Exchanges & Clearing Capital Markets Hong Kong 9,180 1.5
Ayala Land Real Estate Management & Development Philippines 9,071 1.5
Longi Green Energy Technology - A Semiconductors & Semiconductor Equipment China 8,911 1.5
China Merchants Bank (A) Banks China 8,871 1.5
Kotak Mahindra Bank Banks India 8,280 1.3
Hindustan Unilever Personal Products India 8,057 1.3
ShenZhen Mindray Bio-Medical Electronics - A Health Care Equipment & Supplies China 7,997 1.3
China Resources Land Real Estate Management & Development China 7,397 1.2
Astra International Automobiles Indonesia 7,259 1.2
Contemporary Amperex Technology - A Electrical Equipment China 7,139 1.2
Thirty largest investments 454,240 74.9
Bank of Philippine Islands Banks Philippines 6,674 1.1
Delta Electronic Electronic Equipment, Instruments & Components Taiwan 6,633 1.1
Ultratech Cement Construction Materials India 6,621 1.1
Silergy Corp Semiconductors & Semiconductor Equipment Taiwan 6,563 1.1
Tata Consultancy Services IT Services India 6,425 1.1
FPT Corporation IT Services Vietnam 6,268 1.0
Wuxi Biologics (Cayman) Life Sciences Tools & Services China 6,245 1.0
Aier Eye Hospital Group - A Health Care Equipment & Supplies China 6,194 1.0
Sungrow Power Supply Co - A Electrical Equipment China 6,108 1.0
Chacha Food - A Food Products China 6,093 1.0
Forty largest investments 518,064 85.4
Samsung Biologics Life Sciences Tools & Services South Korea 6,086 1.0
Yonyou Network Technology - A Software China 5,948 1.0
Glodon Co -A Software China 5,910 1.0
Kakao Corp Interactive Media & Services South Korea 5,570 0.9
Zhongsheng Group Holdings Speciality Retail China 5,417 0.9
Andes Technology Semiconductors & Semiconductor Equipment Taiwan 5,405 0.9
GDS Holdings Class A IT Services China 5,057 0.8
Tongcheng Travel Holdings Hotels, Restaurants & Leisure China 4,857 0.8
Info Edge (India) Interactive Media & Services India 4,825 0.8
ShenZhen Inovance Technology - A Machinery China 4,502 0.8
Fifty largest investments 571,641 94.3
China Vanke 'H' Real Estate Management & Development China 4,316 0.7
Siam Cement 'F' Construction Materials Thailand 4,174 0.7
PB Fintech Insurance India 4,115 0.7
Autohome - ADR Software China 4,087 0.7
Mobile World Investment Corporation Speciality Retail Vietnam 4,022 0.7
Hangzhou Tigermed Consulting Co(A) Life Sciences Tools & Services China 3,890 0.6
Nari Technology - A Electrical Equipment China 3,862 0.6
Singapore Telecommunications Diversified Telecommunication Singapore 3,042 0.5
FSN E-Commerce Ventures Internet & Direct Marketing Retail India 2,717 0.4
605,866 99.9
Net current assets(B) 548 0.1
Total assets less current liabilities(B) 606,414 100.0
(A) Holding includes investment in both 'A' and 'H' shares.
(B) Excluding bank loan of £30,000,000
Note: Unless otherwise stated, foreign stock is held and all investments are
equity holdings.
Investment Portfolio by Country
Country allocation
China 36.1
Hong Kong 9.2
India 15.8
Indonesia 3.8
Philippines 2.6
Singapore 5.3
South Korea 9.3
Taiwan 13.9
Thailand 2.3
Vietnam 1.7
Our Investment Manager's Case Studies
TSMC (Taiwan)
Everyone's foundry: TSMC has become an integral part of the global supply
chain as megatrends like artificial intelligence and the internet of things
are driving demand for semiconductors.
What does the company do?
Taiwan Semiconductor Manufacturing Company (TSMC) makes integrated circuits
that are used in a variety of products today-from laptops and smartphones to
cars, industrial equipment and high performance computing. Founded in 1987,
the company pioneered the pure-play foundry business model where instead of
designing or making semiconductor chips under its own brand name, it focuses
exclusively on manufacturing its customers' products.
Why do we like the investment?
Semiconductors is a structurally attractive industry. By 2030, it is expected
to grow to US$1 trillion -averaging from 6% to 8% growth a year-driven by
megatrends such as artificial intelligence and the Internet of Things, which
require high-power computing. We view TSMC as a high quality catch-all play of
this trend, underpinned by its positioning as "everyone's foundry."
TSMC has a strong financial profile. The strength of its balance sheet has
allowed it to invest billions of dollars a year to stay ahead of global peers
on the technology curve and in terms of production capacity. By doing so, the
company is able to manufacture the most advanced semiconductors for its
customers, making it a global leader in an industry where cutting-edge tech
raises the barrier to compete. In fact, we have seen several of TSMC's
competitors dropping off over time in the race as the size of semiconductors
shrank.
Beyond manufacturing excellence, TSMC's market-leading position in the foundry
business and its long experience in the field gives it tremendous scale
advantage, allowing it to operate at the best yield and utilisation levels in
the industry. That translates to the lowest cost among competitors. The
strength of its customer relationships is also difficult to replicate. We also
like the fact that TSMC has a strong management team with an excellent track
record.
On the geopolitical front, the impact from the fallout between the US and
China is relatively less severe on TSMC. Given its global technological
leadership among foundries, there are currently no alternatives to TSMC if
countries want to invest in their own semiconductor capabilities. Evidently,
we have seen the company leading the charge in establishing new cutting-edge
factories in the US, European Union and Japan. We continue to closely monitor
the evolving geopolitical dynamics between China and the US.
What is our key area of engagement?
We have engaged TSMC in areas of sustainability, including water conservation
as well as human capital development. Going forward, engagements will focus on
the company's progress on producing more energy efficient products as well as
its commitment to reach Net Zero emissions by 2050.
What is the result?
TSMC is one of the most advanced companies in Taiwan on the ESG front, and is
rated AAA by MSCI. The bulk of the company's semiconductor manufacturing
facilities in Taiwan had high exposure to water-related risks in 2021 due to a
severe drought, which prompted the government to place restrictions on the
supply and usage of water by industrial companies. Semiconductor manufacturing
is a water-intensive process, hence water usage and conservation is a material
ESG risk. As a result, TSMC took strides towards sustainability by investing
in water conservation and recycling measures-it set a 2030 target of reducing
water usage per unit to 30% below 2010 levels. Further, the company is working
to develop water reclamation technologies as well as using reclaimed water
during manufacturing. TSMC aims to increase more than 60% replacement of water
resources with reclaimed water in 2030.
TSMC also leads the domestic industry in corporate governance and corporate
behaviour practices. Most directors on the TSMC board are independent, while
the company leads peers in initiatives such as employee development programs.
While we do think highly of its ability in human capital management, there is
a risk that their edge-in sourcing, training and retention-may erode in view
of TSMC shifting some of its manufacturing capabilities to the US, where the
market for talent is more competitive and the work culture differs from Asia.
The management is aware of this risk and remains focused on getting this right
and it remains an area we will continue to monitor.
TSMC is also a full member of the Responsible Business Alliance, which is
dedicated to electronics supply chain sustainability. It conducts
environmental, safety and health audits to suppliers' manufacturing sites and
routinely encourages them to implement measures to save energy, reduce carbon
emissions, conserve water and reduce waste. In 2020, TSMC was also the first
semiconductor manufacturer worldwide to join RE100, committing to source 100%
renewable electrically globally-an important step given the company's net zero
target.
FPT Corp (Vietnam)
Riding the digital wave: FPT aims to be in the top 50 global leading digital
transformation (DX) solutions and services providers by 2030.
What does the company do?
FPT Corp is the largest technology company in Vietnam with significant market
share in each of its three core businesses: technology (software outsourcing,
systems integration and IT services), education (K-12, vocational,
post-secondary diplomas and degrees), and telecommunications (fixed-line,
PayTV and broadband internet services).
Why do we like the investment?
In our search for potential stock ideas, we cast a wide net that encompasses
non-traditional markets and companies. One such market is Vietnam, where
structural trends of increasing urbanisation and income levels are becoming
central in driving growth. We have spent a lot of time over the years gaining
comfort with Vietnam, and recognise its growing importance in global supply
chains and the positive direction of the government to open up capital
markets.
During this journey, we have been impressed by FPT Corp, which has
demonstrated entrepreneurship and competence in this frontier market. Its
revenue base is diversified and the industry backdrop is healthy. The company
has a solid balance sheet that should support its pursuit of growth
opportunities. We also rate its management highly because of its good
execution track record and transparency with investors.
On the tech front, when it comes to its growth strategy, FPT aims to be in the
top 50 global leading digital transformation (DX) solutions and services
providers by 2030. It is seeing strong growth in DX revenues, which is already
accounting for a significant portion of its overall outsourcing revenues. The
industry is attractive with structural growth tailwinds and a huge market. FPT
believes that growth in this area will ride on new technologies, such as
cloud, AI, big data analytics and robotic process automation.
Across its businesses, the education segment is the most profitable and
management expects this division to continue to deliver consistently strong
revenue growth over the coming years. This will be driven by rising demand
from growing middle-income students for quality education. Elsewhere, its
telecom business is stable and defensive, supported by PayTV growth. This
should provide a good buffer in times of weak macroeconomic conditions.
What is our key area of engagement?
We continue to engage FPT on better disclosure around data privacy and the
setting of targets to track its progress around its carbon footprint and
renewable energy mix.
What is the result?
FPT has one of the most developed board structures in Vietnam. Its
seven-member board has three independent directors. The stakes of inside
shareholders and major shareholders are around 18%. In response to
shareholders' feedback, FPT changed auditor to PwC from Deloitte in 2021. The
company also provides business updates to its investors on a monthly basis.
Meanwhile, cybersecurity and talent management are key areas of focus. We
think the company has done a good job in managing employee welfare so far. FPT
also maintains good diversity in its workforce. Female employees accounted for
37.2% of its overall headcount in 2021 versus 36.1% in 2017. Separately,
disclosures about data privacy and cybersecurity are limited, and we continue
to engage with the company on better transparency.
FPT's environmental record is clean. FPT has fully complied with waste and
emissions management regulations, with no related violations recorded in the
30 years since its establishment. However, FPT has not set any trackable
carbon emissions reduction or renewable energy targets. Instead, it discloses
broad-based statements for its environmental initiatives, such as usage of
smart energy and water control systems, timely maintenance to avoid energy
losses and increasing the use of natural energy and water sources. We are also
urging the company to track its carbon footprint better.
While MSCI has yet to rate FPT Corp for its ESG standards, overall we regard
the company as a good ESG stewardship example in Vietnam.
Condensed Statement of Comprehensive Income (unaudited)
Six months ended Six months ended
28 February 2023 28 February 2022
Revenue Capital Total Revenue Capital Total
Note £'000 £'000 £'000 £'000 £'000 £'000
Losses on investments - (44,882) (44,882) - (53,526) (53,526)
Net currency losses - (855) (855) - (74) (74)
Income 2 3,218 - 3,218 2,689 - 2,689
Investment management fee (500) (1,501) (2,001) (565) (1,697) (2,262)
Administrative expenses (562) - (562) (508) - (508)
Net return/(loss) before finance costs and taxation 2,156 (47,238) (45,082) 1,616 (55,297) (53,681)
Interest payable and similar charges (263) (791) (1,054) (101) (302) (403)
Return/(loss) before taxation 1,893 (48,029) (46,136) 1,515 (55,599) (54,084)
Taxation 3 (369) 306 (63) (317) 722 405
Return/(loss) after taxation 1,524 (47,723) (46,199) 1,198 (54,877) (53,679)
Return per Ordinary share (pence) 4 1.29 (40.27) (38.98) 0.97 (44.43) (43.46)
The total columns of this statement represent the profit and loss account of
the Company.
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
28 February 2023 31 August 2022
Notes £'000 £'000
Non-current assets
Investments at fair value through profit or loss 605,866 672,379
Current assets
Debtors and prepayments 1,191 2,693
Cash and cash equivalents 2,957 5,094
4,148 7,787
Creditors: amounts falling due within one year
Bank loan 10 (30,000) (35,000)
Other creditors (3,600) (3,413)
(33,600) (38,413)
Net current liabilities (29,452) (30,626)
Creditors: amounts falling due after more than one year
Bank loan 10 (24,987) (24,983)
Deferred tax liability on Indian capital gains 3 (1,473) (2,401)
(26,460) (27,384)
Net assets 549,954 614,369
Share capital and reserves
Called-up share capital 31,922 31,922
Share premium account 60,416 60,416
Capital redemption reserve 28,154 28,154
Capital reserve 6 395,060 453,273
Revenue reserve 34,402 40,604
Equity shareholders' funds 549,954 614,369
Net asset value per Ordinary share (pence) 7 469.24 513.32
The accompanying notes are an integral part of the condensed financial
statements.
Condensed Statement of Changes in Equity (unaudited)
Six months ended 28 February 2023
Share Capital
Share premium redemption Capital Revenue
capital account reserve reserve reserve Total
Note £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 September 2022 31,922 60,416 28,154 453,273 40,604 614,369
(Loss)/return after taxation - - - (47,723) 1,524 (46,199)
Dividend paid (note 8) 8 - - - - (7,726) (7,726)
Buyback of Ordinary shares for treasury - - - (10,490) - (10,490)
Balance at 28 February 2023 31,922 60,416 28,154 395,060 34,402 549,954
Six months ended 28 February 2022
Share Capital
Share premium redemption Capital Revenue
capital account reserve reserve reserve Total
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 September 2021 31,922 60,416 28,154 545,582 40,855 706,929
(Loss)/return after taxation - - - (54,877) 1,198 (53,679)
Dividend paid (note 8) 8 - - - - (8,041) (8,041)
Buyback of Ordinary shares for treasury - - - (12,710) - (12,710)
Balance at 28 February 2022 31,922 60,416 28,154 477,995 34,012 632,499
The accompanying notes are an integral part of the condensed financial
statements.
Condensed Statement of Cash Flows (unaudited)
Six months ended Six months ended
28 February 2023 28 February 2022
£'000 £'000
Operating activities
Net return before taxation (46,136) (54,084)
Adjustments for:
Losses on investments 44,882 53,526
Currency losses 855 74
Increase in accrued dividend income (4) (324)
Decrease in other debtors 857 13
Decrease in other creditors (23) (161)
Interest payable and similar charges 1,054 392
Overseas withholding tax 271 (356)
Cash from/(used in) operations 1,756 (920)
Interest paid (1,050) (427)
Net cash inflow/(outflow) from operating activities 706 (1,347)
Investing activities
Purchases of investments (58,759) (108,233)
Sales of investments 80,669 129,304
Capital gains tax on sales (622) (67)
Net cash inflow from investing activities 21,288 21,004
Financing activities
Equity dividends paid (7,726) (8,041)
Buyback of Ordinary shares (10,550) (12,710)
Repayment of bank loans (5,000) -
Net cash used in financing activities (23,276) (20,751)
Decrease in cash and cash equivalents (1,282) (1,094)
Analysis of changes in cash and cash equivalents during the period
Opening balance 5,094 5,000
Effect of exchange rate fluctuations on cash held (855) (74)
Decrease in cash and cash equivalents as above (1,282) (1,094)
Closing balance 2,957 3,832
Represented by:
Money market funds 5 -
Cash and short term deposits 2,952 3,832
2,957 3,832
Notes to the Financial Statements
As at 28 February 2023
1. Accounting policies
Basis of preparation. The condensed financial statements have been prepared in
accordance with Financial Reporting Standard 104 (Interim Financial Reporting)
and with the principles of the Statement of Recommended Practice for
'Financial Statements of Investment Trust Companies and Venture Capital
Trusts'. Given that the Company's portfolio comprises primarily "Level 1"
assets (listed on a recognisable exchange and realisable within a short
timescale), and the Company's relatively low level of gearing, the Directors
believe that adopting a going concern basis of accounting remains appropriate.
The condensed financial statements have also been prepared on the assumption
that approval as an investment trust will continue to be granted by HMRC.
The interim financial statements have been prepared using the same accounting
policies as the preceding annual financial statements.
2. Income
Six months ended Six months ended
28 February 2023 28 February 2022
£'000 £'000
Income from investments
Overseas dividend income 3,148 2,688
3,148 2,688
Other income
Deposit interest 58 -
Interest from money market funds 12 1
70 1
Total income 3,218 2,689
3. Taxation
The taxation for the period represents withholding tax suffered on overseas
dividend income and a movement in provision for Indian Capital Gains Tax.
An amount of £369,000 of withholding tax was suffered in the six months to 28
February 2023 (28 February 2022 - £317,000). The Indian Capital Gains Tax
accrual has decreased by £928,000 (28 February 2022 - £789,000) since the
year end with a balance outstanding at 28 February 2023 of £1,473,000 (28
February 2022 - £3,020,000).
4. Return per Ordinary share
Six months ended Six months ended
28 February 2023 28 February 2022
p p
Basic
Revenue return 1.29 0.97
Capital return (40.27) (44.43)
Total return (38.98) (43.46)
The figures above are based on the following:
£'000 £'000
Revenue return 1,524 1,198
Capital return (47,723) (54,877)
Total return (46,199) (53,679)
Weighted average number of Ordinary shares in issue 118,509,837 123,525,060
5. 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/(losses) on investments
in the Condensed Statement of Comprehensive Income. The total costs were as
follows:
Six months ended Six months ended
28 February 2023 28 February 2022
£'000 £'000
Purchases 78 141
Sales 162 261
240 402
6. Capital reserves
The capital reserve reflected in the Condensed Statement of Financial Position
at 28 February 2023 includes gains of £85,496,000 (31 August 2022 -
£144,902,000) which relate to the revaluation of investments held at the
reporting date.
7. Net asset value per share
The net asset value per share and the net assets attributable to the Ordinary
shareholders at the period end were as follows:
As at As at
28 February 2023 31 August 2022
Net assets attributable (£'000) 549,954 614,369
Number of Ordinary shares in issue(A) 117,200,797 119,686,001
Net asset value per share (pence) 469.24 513.32
(A) Excluding shares held in treasury.
8. Dividends
Six months ended Six months ended
28 February 2023 28 February 2022
£'000 £'000
2021 final dividend - 6.5p - 8,041
2022 final dividend - 6.5p 7,726 -
7,726 8,041
There will be no interim dividend for the year to 31 August 2023 (2022 - nil)
as the objective of the Company is long-term capital appreciation.
9. 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 (i.e. developed using market data) for the asset or liability,
either directly or indirectly.
Level 3: inputs are unobservable (i.e. for which market data is unavailable)
for the asset or liability.
All of the Company's investments are in quoted equities (31 August 2022 -
same) which are actively traded on recognised stock exchanges, with their fair
value being determined by reference to their quoted bid prices at the
reporting date. The total value of the investments as at 28 February 2023 of
£605,866,000 (31 August 2022 - £672,379,000) has therefore been deemed as
Level 1.
10. Bank loans
The Company has a £35,000,000 multicurrency facility with The Royal Bank of
Scotland (with the option of a further £15m accordion facility which can be
drawn down subject to further bank consent). This agreement was entered into
on 29 July 2022 with a termination date of 29 July 2024. At 28 February 2023,
£30,000,000 of this facility has been drawn down at a rate of 4.927% which
matured on 24 March 2023. At the date of this Report the Company had drawn
down £20,000,000 at a rate of 5.1771%.
On 29 July 2022, the Company entered into a new fixed loan facility agreement
of £25,000,000 at an interest rate of 3.5575% with The Royal Bank of Scotland
International Limited, London Branch, with a termination date of 29 July
2024. The agreement of this facility incurred an arrangement fee of £18,000
which is being amortised over the life of the loan.
The agreements contain the following covenants:
- the net asset value of the Company shall not at any time be less than £375
million.
- consolidated gross borrowings expressed as a percentage of adjusted
portfolio value shall not exceed 25% at any time.
- the number of eligible investments shall not be less than 30 at any time.
All covenants have been complied with throughout the period.
11. Called-up share capital
In the six months to 28 February 2023, the Company bought back 2,485,204 (28
February 2022 - 2,504,682) Ordinary shares to be held in treasury, at a total
cost of £10,490,000 (28 February 2022 - £12,710,000).
At the end of the period there were 159,611,677 (28 February 2022 -
159,611,677) Ordinary shares in issue, of which 42,410,880 (28 February 2022 -
37,350,009) were held in treasury.
Since the period end a further 1,000,000 Ordinary shares of 20p each have been
purchased by the Company at a total cost of £4,024,000 all of which were held
in treasury.
12. Analysis of changes in net debt
At Currency Cash Non-cash At
31 August 2022 differences flows movements 28 February 2023
£'000 £'000 £'000 £'000 £'000
Cash and short term deposits 5,094 (855) (1,282) - 2,957
Debt due within one year (35,000) - 5,000 - (30,000)
Debt due after one year (24,983) - - (4) (24,987)
(54,889) (855) 3,718 (4) (52,030)
At Currency Cash Non-cash At
31 August 2021 differences flows movements 28 February 2022
£'000 £'000 £'000 £'000 £'000
Cash and short term deposits 5,000 (74) (1,094) - 3,832
Debt due within one year (64,998) - - (1) (64,999)
(59,998) (74) (1,094) (1) (61,167)
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.
13. Related party transactions and transactions with the Manager
The Company has an agreement in place with abrdn Fund Managers Limited ("aFML"
or "Manager") for the provision of management and administration services,
promotional activities and secretarial services.
The management fee is calculated at 0.85% per annum of net assets up to £350
million and 0.50% per annum of net assets over this threshold. Management fees
are calculated and payable on a quarterly basis, and is charged 75% to capital
and 25% to revenue. During the period £2,001,000 (28 February 2022 -
£2,262,000) of management fees were payable to the Manager, with a balance of
£2,001,000 (28 February 2022 - £1,097,000) due to aFML at the period end.
The management agreement is terminable by the Company on three months' notice
or in the event of a change of control in the ownership of the Manager. The
notice period required to be given by the Manager is six months.
At the end of the period the Company had £5,000 (28 February 2022 - £nil)
invested in Aberdeen Standard Liquidity Fund (Lux) - Sterling Fund which is
managed and administered by abrdn plc. The Company pays a management fee on
the value of these holdings but no fee is chargeable at the underlying fund
level.
Promotional activities costs are based on current annual amount of £240,000
(28 February 2022 - £200,000), payable quarterly in arrears. During the
period £116,000 (28 February 2022 - £100,000) of fees were payable, with a
balance of £99,000 (28 February 2022 - £32,000) being due at the period end.
14. Segmental information
The Company is engaged in a single segment of business, which is to invest in
equity securities. 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 Financial Report
The financial information contained in this Half-Yearly Financial Report does
not constitute statutory accounts as defined in Sections 434 - 436 of the
Companies Act 2006. The financial information for the six months ended 28
February 2023 and 28 February 2022 has not been audited. The Company's
external auditor, PricewaterhouseCoopers LLP has not reviewed the financial
information for the six months ended 28 February 2023.
The information for the year ended 31 August 2022 has been extracted from the
latest published audited financial statements which have been filed with the
Registrar of Companies. The report of the auditor on those accounts contained
no qualification or statement under Section 498(2) or (3) of the Companies Act
2006.
16. This Half-Yearly Financial Report was approved by the Board on 26 April 2023.
Alternative Performance Measures
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.
28 February 2023 31 August 2022
NAV per Ordinary share (p) a 469.24 513.32
Share price (p) b 410.00 446.00
Discount (a-b)/a 12.6% 13.1%
Net gearing
Net gearing measures the total borrowings less cash and cash equivalents
divided by shareholders' funds, expressed as a percentage. Under AIC reporting
guidance cash and cash equivalents includes net amounts due to and from
brokers at the year end as well as cash and short term deposits.
28 February 2023 31 August 2022
Borrowings (£'000) a 54,987 59,983
Cash (£'000) b 2,957 5,094
Amounts due to brokers (£'000) c 506 287
Amounts due from brokers (£'000) d - -
Shareholders' funds (£'000) e 549,954 614,369
Net gearing (a-b+c-d)/e 9.6% 9.0%
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 published throughout the year.
The ratio for 28 February 2023 is based on forecast ongoing charges for the
year ending 31 August 2023.
28 February 2023 31 August 2022
Investment management fees (£'000) 3,989 4,387
Administrative expenses (£'000) 1,093 1,007
Less: non-recurring charges(A) (£'000) (3) (33)
Ongoing charges (£'000) 5,079 5,361
Average net assets (£'000) 556,367 640,938
Ongoing charges ratio 0.91% 0.84%
(A) Comprises legal and professional fees which are not expected to recur.
The ongoing charges ratio 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
Benchmark Index, respectively.
Share
Six months ended 28 February 2023 NAV Price
Opening at 1 September 2022 a 513.32p 446.00p
Closing at 28 February 2023 b 469.24p 410.00p
Price movements c=(b/a)-1 -8.6% -8.1%
Dividend reinvestment(A) d 1.4% 1.6%
Total return c+d -7.2% -6.5%
Share
Year ended 31 August 2022 NAV Price
Opening at 1 September 2021 a 566.60p 512.00p
Closing at 31 August 2022 b 513.32p 446.00p
Price movements c=(b/a)-1 -9.4% -12.9%
Dividend reinvestment(A) d 1.0% 1.1%
Total return c+d -8.4% -11.8%
(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 28
February 2023 will be posted to shareholders in May 2023 and will be available
thereafter on the Company's website: asiadragontrust.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
Company Secretary
26 April 2023
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