REG-Invesco Asia Dragon Trust Plc: IAD reports good half year results since merger with impressive outperformance and returns
22/01/2026 12:15
LEGAL ENTITY IDENTIFIER: 549300YM9USHRKIET173
Invesco Asia Dragon Trust plc
(formerly Invesco Asia Trust plc)
Half-Yearly Financial Report Announcement for the Six Months to 31 October
2025
The following text is extracted from the Half-Yearly Financial Report of the
Company for the six months to 31 October 2025. All page numbers below refer to
the Half-Yearly Financial Report which will be made available on the Company's
website.
This announcement contains regulated information.
· The first full six months since
the transformational combination of Invesco Asia Trust with Asia Dragon Trust
show strong absolute and relative performance.
· Over the six months to 31 October
2025 NAV total return of +34.1% and share price total return of +37.2% were
both significantly ahead of our benchmark (MSCI AC Asia ex Japan Index) total
return of +31.4%.
· The sudden pivot of American
relations with China provides a new and exciting opportunity to invest in
Asia.
· With a strong Investment Case and
a strong Corporate Proposition, our aim is to make Invesco Asia Dragon the `go
to' Asian trust, trading on a premium rating, growing organically and through
further combinations.
Investment Objective
The Company's objective is to provide long-term capital growth and income by
investing in a diversified portfolio of Asian
and Australasian companies. The Company aims to
achieve growth in its net asset value (`NAV') total return in
excess of the Benchmark Index,
the MSCI AC Asia ex Japan Index (total
return, net of withholding tax, in sterling terms).
Financial Information and Performance Statistics
The benchmark index of the Company is the MSCI AC Asia ex
Japan Index (total return, net of
withholding tax, in sterling terms).
Six Months to Year ended
31 October 30 April
Total Return Statistics (1) (dividends reinvested) 2025 2025
Net asset value (`NAV') total return (2) 34.1% 2.8%
Share price total return (2) 37.2% 7.1%
Benchmark index total return (3) 31.4% 3.9%
Capital Statistics
At At
31 October 30 April
2025 2025 change %
Net assets (£'000) 954,614 729,912 30.8%
NAV per share 468.83p 356.31p 31.6%
Share price (1) 430.00p 320.00p 34.4%
Benchmark index (capital) 1,306.16 1,005.56 29.9%
Discount (2) per ordinary share (8.3)% (10.2)%
Average discount over the six months/year (1)(2) (9.2)% (11.2)%
Gearing (2) :
- gross 2.6% 6.0%
- net 2.0% 5.7%
(1) Source: LSEG Data & Analytics.
(2) Alternative Performance Measures (`APM'), see pages
16 to 18 for the explanation and reconciliations of APMs. Further details are
provided in the Glossary of Terms and Alternative Performance Measures in the
Company's 2025 Annual Financial Report.
(3) Index returns are shown on a total return basis, with
dividends reinvested net of withholding taxes.
Chairman's Statement
Highlights:
· The first full six months since the transformational
combination of Invesco Asia Trust with Asia Dragon Trust show strong absolute
and relative performance.
· Over the six months to 31 October 2025 NAV total
return of +34.1% and share price total return of +37.2% were both
significantly ahead our benchmark (MSCI AC Asia ex Japan Index) total return
of +31.4%.
· The sudden pivot of American relations with China
provides a new and exciting opportunity to invest in Asia.
· With a strong Investment Case and a strong Corporate
Proposition, our aim is to make Invesco Asia Dragon the go-to Asian trust,
trading on a premium rating, growing organically and through further
combinations.
Review of the six months to 31
October 2025
Over the six months to 31 October 2025 NAV total return of +34.1% was
significantly ahead of our benchmark (MSCI AC Asia ex Japan Index) total
return of +31.4%. The share price total return was +37.2% with the discount
narrowing from 10.2% to 8.3% over the period.
Some of the appreciation (around 2%) can be attributed to the weakness of
sterling. Some can be pinned on earnings growth from the companies in the
region, with 15% (1) forecast for the full calendar 2025.
This is more than was expected six months ago, with technology earnings driven
by AI capital expenditure a particular feature. But the
bulk of the explanation is in a rerating upwards of Asian markets. This is
partly a reaction to Asian markets having been trading at an unusually
attractive discount to global markets after fifteen years of underperformance
and partly the markets becoming accustomed to President Trump's tariff
diplomacy. It's also partly a new optimism about future Asian growth fuelled
by domestic policy decisions such as China's measures to tackle deflation and
stimulate domestic growth and South Korea's "Korea Up!" policy to improve
governance and shareholder returns. Taiwan's exposure to technology and AI
(particularly our largest holding Taiwan Semiconductor Manufacturing) helped.
Hong Kong appears to be starting to regain its confidence. Even laggard
Indonesia has started to move as interest rates were finally cut. India
underperformed after becoming a late target for American tariffs.
Attribution analysis shows that stock selection and country selection
contributed roughly evenly to the outperformance over the six
month period. Fiona and Ian analyse performance further in their Managers'
Report.
In accordance with our new dividend policy to pay out 1% of prior year end
unaudited NAV quarterly (i.e. 4% over a full year) we paid out dividends of
3.95p on both 25 July 2025 and 24 October 2025.
For the six months to 31 October 2025, a total of 1,235,000 shares were bought
back into Treasury at a total cost of £4,301,000, representing 0.6% of the
starting number of shares in issue (excluding treasury shares). This has been
accretive to NAV by 0.06%.
Cumulative Total Return (dividends reinvested) to 31 October 2025
(2)
One Three Five Ten
Year Years Years Years
Net asset value (`NAV') 29.7% 65.0% 68.7% 221.4%
Share price 34.0% 79.7% 80.7% 244.3%
Benchmark index (3) 25.6% 63.4% 36.7% 157.2%
(1) Source: Bloomberg.
(2) Source: LSEG Data & Analytics.
(3) The benchmark index of the Company is the MSCI AC
Asia ex Japan Index (total return, net of withholding tax, in sterling terms).
The Investment Case and the Corporate Proposition
Shareholders will be aware that we believe that the discount is determined by
the combination of demand for Asian equity investment vehicles, the Investment
Case for the Company and the Corporate Proposition that we offer. In order to
stimulate more demand for the Company's shares, we aim to provide a strong
Investment Case and a strong Corporate Proposition at the same time.
The Investment Case rests on accessing the attractions of Asian equity markets
through the institutional expertise of Fiona Yang and Ian Hargreaves' team at
Invesco. The Co-Portfolio Managers' investment process can be summarised as
`valuation not value' and has been very successful in attracting institutional
investors such as pension funds and sovereign wealth investors. In times like
these of great change, we would argue that this forward-looking active
approach (as opposed to a backward-looking index or passive style) is exactly
what is needed. The Company is the only way for individual investors to access
Fiona and Ian's expertise.
The Board has continued to review and adopt measures intended to create
additional demand for the Company's shares, both from existing and new
shareholders, and to reduce the discount. We have been careful to ensure that
the measures chosen are in the best interests of all shareholders. The
intention is that these gains will combine to make the Corporate Proposition
as compelling as the Investment Case. A full explanation is in the Annual
Financial Report's Chairman's Statement. In summary they include:
· The new three-yearly unconditional tender through
which shareholders can redeem as many of their shares as they wish at a 4%
discount to NAV every three years, the first opportunity being in 2028.
· The enhanced dividend policy, paying out approximately
1% of the Company's unaudited year-end NAV quarterly over
the subsequent four quarters.
· Helped by being one of the largest investment trusts
at £955m of net assets, a blended management fee of 0.57% based on 31
October 2025 net asset value and a projected annual ongoing
charges level of 0.72% (once the Invesco fee waiver that was part of the
merger process has expired in November 2025), makes us one of the lowest cost
ways of investing in Asia.
· There is a strong integrated ESG approach, explained
fully in the Annual Financial Report.
· We aim to keep engaging more individual shareholders
and, unlike open-ended funds, offer the ability for all shareholders to meet
both the Co-Portfolio Managers and the Directors every year at the annual
general meeting.
· There is also the active use of gearing (or
borrowings) to enhance portfolio returns, the `skin in the game' of Directors'
and Managers' shareholdings and the authority granted annually by shareholders
to buy back shares if necessary.
Update
From 31 October 2025 to 19 January 2026, the NAV total return has been 3.1%,
underperforming the index return of 3.3%. The share price total return has
been 4.0%, with the discount narrowing to 7.5%.
With the Investment Case and strength of the Corporate Proposition being key
to delivering the Company's objective to shareholders, we appreciate that it's
important to ensure that you're aware of the thoughts and views of our Manager
as well as important announcements from your Board. Whilst information is
available from many different sources, I would recommend shareholders sign up
for the regular email service, which will deliver insights from your Manager
direct to your inbox. If you haven't already, then you can do this by
focussing your smart device camera over the QR code below. This should present
you with a yellow box on your camera screen with a link which once clicked,
will take you to a sign-up page. Alternatively, you can sign-up for this
service at the Company's website.
Outlook
Every two years the Board accompanies the Managers on a week of company visits
in Asia. The trip is designed to aid our evaluation of the Managers by
observing them in action but also to give us first-hand exposure to some of
the companies in which we invest. The Board travelled to Hong Kong, Shenzhen
and Shanghai in November. What was unusual about this trip was that it felt
like we were right in the middle of a major market turning point.
There had already been during 2025 a warming of the Chinese government's
attitude towards Chinese technology companies. President Xi Jinping's meeting
with Alibaba's founder Jack Ma was a clear sign that the
government wants (perhaps needs) the growth of technology
companies. The DeepSeek moment, when that Chinese company unexpectedly
announced an advanced AI model, was felt around the world. There has been
state sponsored buying of market ETFs in China. So conditions were already
improving. But what was particularly exciting was President Xi's summit with
President Trump in South Korea on 30 October. A 12-month
tariff pause was the main headline at the time, but further summits and
meetings are planned within these 12 months that could herald a major warming
in Sino-US relations. It seems that President Trump, having tried and failed
to secure agreements with the Russians, has now pivoted his attention to
China. AI and rare earths dominated the initial headlines but now that the two
countries appear to be ramping up their engagement there is huge potential for
agreements in areas where China is already a global leader, such as electric
vehicles, battery technology and solar panels all of which would boost US
growth if allowed. It is also probable that the Chinese have been unwilling to
declare their full hand of domestic stimulatory measures until after agreeing
tariff terms with the Americans.
Elsewhere South Korea's "Korea Up!" policy continues to gather momentum.
Rather than a Chinese military invasion of Taiwan, some experts have started
to talk about a voluntary reunification, perhaps based on Hong Kong which is
now 28 years through its 50 year period covered by the
Joint Declaration between China and the UK and is showing green shoots of
regaining its self-confidence. Indonesia's demographics and domestic demand
outlook now look positive. Singapore remains as resilient as ever. Thailand is
benefitting from an easing in monetary policy and growing tourism. Only India
isn't participating in the improving sentiment. President Trump's imposition
of 50% tariffs on India in retaliation for its purchases of Russian oil has
been a significant setback, although we should note that it might turn out
just to be a negotiating position.
But the dominant economy in the region is China. It's also the biggest market
in the MSCI Asia-Pacific ex-Japan Index. If we really are about to experience
a major long-term turning point in US-China relations then it would
necessitate a major adjustment in investment thinking and positioning towards
Asia. The tail risk, the black swan, is now a market melt-up.
Neil Rogan
Chairman
22 January 2026
Portfolio Managers' Report
Q How has the Company performed in
the period under review?
A The Company's net asset value grew by 34.1%
(total return, in sterling terms) over the six months to 31 October 2025,
which compares to the benchmark MSCI AC Asia ex Japan index (total return, net
of withholding tax, in sterling terms) of 31.4%.
The strong gains made by Asian equity markets over the period have been
underpinned by an Artificial Intelligence (AI)-driven tech upcycle and
broad-based monetary/fiscal easing, while concerns over US trade policy have
eased. Meanwhile, `value-up' reform momentum has been building across the
region, particularly in South Korea and China.
As ever, there has been a bifurcation in performance between different
markets. India has been a notable laggard, as high starting valuations,
subdued earnings momentum and the large number of equity offerings have led to
meagre returns. Performance in the Association of Southeast Asian Nations
(ASEAN) markets has also been mixed amidst domestic political uncertainty,
with protests in Indonesia, the Philippines, and a change in PM in Thailand.
The portfolio has been well positioned for these markets, with the underweight
position in India being a significant contributor to relative performance.
Exposure to South Korea, China and Hong Kong has contributed strongly,
although stock selection in these markets was mixed. Conversely, being
underweight both Taiwan and the Information Technology (IT) sector counted
against us in relative terms, but this was more than offset by the positive
impact of stock selection.
There continues to be significant valuation disparity across Asian markets,
and genuine improvements in shareholder return policies continue to provide
fertile ground for active stock pickers. Market returns this year have been
driven by a valuation re-rating and US dollar weakness, rather than improving
fundamentals. This makes it doubly important to focus on valuations and
bottom-up stock selection going forward.
Q What have been the biggest
contributors to relative performance?
A Tech stocks have delivered strong gains with
AI-related demand leading to severe supply-demand imbalances.
Samsung Electronics was a key contributor as it
benefitted from rising prices and increased demand, especially in
high-capacity server DRAM memory chips, with expectations of robust earnings
growth and margin expansion. Likewise, passive components manufacturer
Yageo has seen a rapid rise in demand for its
high voltage tantalum capacitors, which cost
3-5x more than normal ones. Taiwan
Semiconductor Manufacturing
also made a big
contribution to absolute performance, if not relative given the portfolio's
slight underweight position in the stock.
Elsewhere, LG Chemical was buoyed by
the strength of performance of LG Energy Solutions (another beneficiary of
next gen-AI datacentre demand) and signs of corporate reform as it starts to
monetise its stake in that business, strengthening its own financial position.
Sands China outperformed on signs
that it was regaining market share as The Londoner (a
casino resort) fully opened in Macau. Anglo American
benefitted from higher iron ore and copper prices, while the
market generally viewed its proposed merger with Teck Resources as compelling.
Finally, MINTH outperformed on
evidence of strong growth in its Electric Vehicle (`EV') battery housing
business.
Q And detractors?
A Indian financials have seen share prices give
back some of their recent gains amidst weaker than expected results, as loan
growth has slowed. Although we've seen small pockets of deterioration in asset
quality, for the banks we hold asset quality is benign
and less of a concern. Stock selection elsewhere in financials detracted, with
Indonesian banks and United Overseas Bank
in Singapore amongst the more notable laggards.
Selected Chinese consumer stocks have also disappointed, with sentiment
towards Wuliangye (baijiu),
Yili (dairy products) and
China Resources Beer impacted by general weakness in
consumer confidence and price deflation. Meanwhile, Taiwanese miniature lens
manufacturer Largan Precision
delivered a positive return, but well behind that of its peers as its slight
near-term growth outlook and margin pressures failed to excite.
Q Are you concerned about the lack
of recovery in Chinese consumer confidence?
A Surveys of consumer confidence continue to
paint a bearish picture, and lingering concerns over the property market mean
investors have tended to shy away from consumer sectors, with little in the
price for a recovery. However, the feeling on the ground is markedly
different. We recently visited Shanghai and found the streets to be vibrant,
with plenty of people out spending. Consumption habits are evolving, but
companies agile enough to adapt are well positioned to benefit. Meanwhile, in
Hong Kong the mood has shifted from gloom to hope. Clear policy support from
China has reinforced the view that the region will remain an important global
financial hub.
While there have been some very strong returns from Chinese stocks this year,
the valuation of many our holdings still looks attractive. Corporate sentiment
is generally cautiously optimistic, suggesting room for positive earnings
surprises, and we're still finding new and interesting ideas.
Q Where are you finding opportunity?
A In China, we've continued to add to what we
consider to be better quality consumer stocks, such as hotel operator
H World and China
Resources Beer , with profits taken from recent
outperformers like MINTH and
NetEase . We've also introduced two
new holdings. Anhui Conch Cement
stands out as a high-quality operator in a structurally challenged sector,
with industry-leading market share, lowest production costs and a strong
balance sheet. The shares are trading at just 0.6x price-to-book, near
historical lows, with an attractive dividend yield and scope for earnings to
recover from depressed levels, particularly if China's capacity reduction
targets materialise, and sector profitability begins to recover.
We also introduced New Oriental , a
leading provider of educational services in a sector where structural growth
drivers remain intact, supported by policy emphasis on quality and innovation.
The company has a strong balance sheet, generates strong free cash flow, and
offers attractive shareholder returns. Forward Earnings Per Share (EPS)
revisions for New Oriental have improved over the past three months, and
valuation appears reasonable, with recent share price weakness offering an
attractive entry point, in our view.
Other recent introductions include: Hon Hai Precision
Industry , which is successfully pivoting from smartphone
assembly toward higher-growth areas such as AI server manufacturing; and
Infosys , India's second-largest IT services
firm, where the valuation of the shares has almost halved reflecting concerns
about a slowdown in client spending, especially on new projects and the threat
of AI disruption, although IT services companies such as Infosys will still be
needed to help other companies in this technology transition. We feel that
expectations have now been re-set to more reasonable levels.
Outlook
After a period of strong performance, Asian equity market valuations are no
longer depressed, but they remain reasonable, and we believe there is scope
for the wide discount at which they trade relative to US peers to be narrowed.
Asian equities currently offer double-digit earnings growth, which is
supported by a variety of drivers given the region continues to play a key
role in global supply chains for AI, renewables, batteries and commodities.
While North Asia offers strong investment opportunities in leading tech and
manufacturing firms, India and Southeast Asia also offer exposure to rising
incomes, fast-growing consumer and e-commerce sectors. For investors seeking
diversification and long-term value, Asia presents a powerful case for
inclusion.
Dividends have long been an important driver of total returns in Asia, but
policy driven improvements in South Korea and China - two key markets for the
region - have raised expectations for further progress across the region, with
a growing number of companies paying better dividends, buying back shares and
generally adopting more shareholder-friendly practices, enhancing their appeal
to global investors.
Asia offers tremendous growth - but capturing it successfully requires
discipline. As a team, we invest on an individual case by case basis, guided
by clear valuation principles and deep fundamental research. While
geopolitical risks, such as US trade tariff policies, remain a concern, many
Asian companies have strong balance sheets and competitive advantages that may
support resilience. Through a bottom-up, valuation-driven approach, we aim to
invest in companies that are undervalued, resilient and built to endure.
Fiona Yang & Ian Hargreaves
Portfolio Managers
22 January 2026
Twenty-five Largest Holdings
at 31 October 2025
Ordinary shares unless stated otherwise
† The sector
group is based on MSCI and Standard & Poor's Global Industry Classification
Standard.
Market
Value % of
Company Sector† Country £'000 Portfolio
Taiwan Semiconductor Manufacturing Semiconductors & Semiconductor Equipment Taiwan 117,493 12.0
Samsung Electronics - ordinary shares Technology Hardware & Equipment South Korea 47,928 4.9
Samsung Electronics - preference shares 31,832 3.3
79,760 8.2
Tencent R Media & Entertainment China 75,021 7.7
HDFC Bank Banks India 43,623 4.5
Alibaba R Consumer Discretionary Distribution & Retail China 36,979 3.8
AIA Insurance Hong Kong 32,587 3.3
Kasikornbank F Banks Thailand 28,465 2.9
NetEase R Media & Entertainment China 25,551 2.6
Yageo Technology Hardware & Equipment Taiwan 24,235 2.5
Full Truck Alliance - ADS Transportation China 22,804 2.3
Shriram Finance Financial Services India 22,549 2.3
China Resources Beer Food, Beverage & Tobacco Hong Kong 22,545 2.3
United Overseas Bank Banks Singapore 21,233 2.2
Grab Transportation Singapore 20,411 2.1
H World - ADR Consumer Services China 12,404 1.3
H World - ordinary shares R 7,867 0.8
20,271 2.1
Anglo American Materials United Kingdom 18,758 1.9
CK Asset Real Estate Management & Development Hong Kong 15,347 1.5
Sands China Consumer Services Hong Kong 14,928 1.5
Bank Rakyat Banks Indonesia 14,805 1.5
Astra International Capital Goods Indonesia 14,327 1.5
ICICI Bank - ADR Banks India 13,173 1.3
Hyundai Mobis Automobiles & Components South Korea 12,949 1.3
ENN Energy R Utilities China 12,644 1.3
Largan Precision Technology Hardware & Equipment Taiwan 12,624 1.3
Samsung Fire & Marine Insurance South Korea 12,242 1.3
735,324 75.2
Other Investments (35) 242,527 24.8
Total Holdings (60) 977,851 100.0
ADR/ADS: American Depositary Receipts/Shares - are
certificates that represent shares in the relevant stock and are issued by a
US bank. They are denominated and pay dividends in US dollars.
F: F-Shares - shares issued by companies incorporated in
Thailand that are available to foreign investors only. Thai laws have imposed
restrictions on foreign ownership of Thai companies so there is a
pre-determined limit of these shares. Voting rights are retained with these
shares.
R: Red Chip Holdings - holdings in companies incorporated
outside the People's Republic of China (`PRC'), listed on the Hong Kong Stock
Exchange, and controlled by PRC entities by way of direct or indirect
shareholding and/or representation on the board.
Governance
Principal risks and uncertainties
The principal risks and uncertainties facing the Company fall into the
following broad categories: Geopolitical risk, Market risk, Share price
discount to NAV, Third Party Service Provider risk, Investment Management risk
and Currency risk. An explanation of these risks (in
addition to emerging risks) and how they are managed is set out on pages 27 to
31 of the Company's Annual Report and Financial Statements for the year ended
30 April 2025 which is available on the Company's website:
https://www.invesco.com/uk/en/investment-trusts/invesco-asia-dragon-trust.html.
The Board continues to be vigilant about geopolitical risks. In the view of
the Board, the principal risks and uncertainties have not materially changed
since the date of that report and are as applicable to the remaining six
months of the financial year as they were to the six
months under review.
Going Concern
The financial statements have been prepared on a going concern basis. The
Directors have a reasonable expectation that the Company has adequate
resources to continue in operational existence for the foreseeable future,
being taken as at least twelve months after signing the financial statements
for the same reasons as set out in the Viability Statement in the Company's
2025 Annual Financial Report. The Directors took into account the diversified
portfolio of readily realisable securities which can be used to meet the net
current liability position of the Company as at the balance sheet date; and
revenue forecasts for the forthcoming year.
Related Party Transactions
Under United Kingdom Generally Accepted Accounting Practice (UK Accounting
Standards and applicable law), the Company has identified the Directors and
their dependents as related parties. No other related parties have been
identified. No transactions with related parties have taken place which have
materially affected the financial position or the performance of the Company.
Directors' Responsibility Statement
In respect of the preparation of the half-yearly financial report
The Directors are responsible for preparing the half-yearly financial report
using accounting policies consistent with applicable law and UK
Accounting Standards.
The Directors confirm that to the best of their knowledge:
- the condensed set of financial statements contained
within the half-yearly financial report have been prepared in accordance with
the FRC's FRS 104 Interim Financial Reporting;
- the interim management report includes a fair review of
the information required by 4.2.7R and 4.2.8R of the FCA's Disclosure Guidance
and Transparency Rules; and
- the interim management report includes a fair review of
the information required on related party transactions.
The half-yearly financial report has not been audited nor reviewed by the
Company's auditor.
Signed on behalf of the Board of Directors.
Neil Rogan
Chairman
22 January 2026
Condensed Income Statement
For the six months ended 31 October 2025 For the six months ended 31 October 2024
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Gains on investments held at fair value - 236,153 236,153 - 12,045 12,045
Gains on foreign exchange - 182 182 - 43 43
Income - note 2 14,307 200 14,507 4,354 67 4,421
Investment management fee - note 3 (274) (821) (1,095) (231) (693) (924)
Other expenses (804) 138 (666) (350) (2) (352)
Net return before finance costs and taxation 13,229 235,852 249,081 3,773 11,460 15,233
Finance costs - note 3 (187) (564) (751) (39) (117) (156)
Net return on ordinary activities before taxation 13,042 235,288 248,330 3,734 11,343 15,077
Tax on ordinary activities - note 4 (1,148) (2,084) (3,232) (335) (427) (762)
Net return on ordinary activities after taxation for the financial period 11,894 233,204 245,098 3,399 10,916 14,315
Net return per ordinary share:
Basic 5.83p 114.35p 120.18p 5.19p 16.66p 21.85p
Weighted average number of ordinary shares in issue during the period 203,940,87 65,512,581
The total columns of this statement represents the Company's profit and loss
account, prepared in accordance with UK Accounting Standards. The return on
ordinary activities after taxation is the total comprehensive income and
therefore no additional statement of other comprehensive income is presented.
The supplementary revenue and capital columns are presented for information
purposes in accordance with the Statement of Recommended Practice issued by
the Association of Investment Companies. All items in the above statement
derive from continuing operations of the Company. No operations were acquired
or discontinued in the period.
Condensed Statement of Changes in Equity
Capital
Share Share Redemption Special Capital Revenue
Capital Premium Reserve Reserve Reserve Reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
For the six months ended 31 October 2025
At 30 April 2025 21,762 530,091 5,624 19,549 146,245 6,641 729,912
Net return on ordinary activities - - - - 233,204 11,894 245,098
Dividends paid - note 5 - - - - (9,454) (6,641) (16,095)
Cancellation of the share premium account (1) - (530,091) - 530,091 - - -
Shares bought back and held in treasury - - - (4,301) - - (4,301)
At 31 October 2025 21,762 - 5,624 545,339 369,995 11,894 954,614
For the six months ended 31 October 2024
At 30 April 2024 7,500 - 5,624 31,912 191,364 1,866 238,266
Net return on ordinary activities - - - - 10,916 3,399 14,315
Shares bought back and held in treasury - - - (3,304) - - (3,304)
At 31 October 2024 7,500 - 5,624 28,608 202,280 5,265 249,277
(1) Following approval by shareholders at the Company's
Annual General Meeting on 18 September 2025, the Court process to cancel the
share premium account of the Company was implemented on 15 October 2025.
Following the implementation the entire share premium account was cancelled,
amounting to £530,091,000. These distributable reserves provide the Company
with flexibility, subject to financial performance, to make future
distributions and/or, subject to shareholder authority, to buy back shares.
Condensed Balance Sheet
Registered Number 3011768
At 31 October At 30 April
2025 2025
£'000 £'000
Fixed assets
Investments held at fair value through profit or loss - note 7 977,851 772,229
Current assets
Amounts due from brokers 6,793 -
Overseas withholding tax recoverable 332 205
VAT recoverable 31 17
Prepayments and accrued income 506 2,401
Cash and cash equivalents 2,302 2,400
9,964 5,023
Creditors: amounts falling due within one year
Bank facility (25,138) (43,923)
Amounts due to brokers (2,576) -
Share buybacks awaiting settlement (1) (7)
Accruals (1,064) (979)
(28,779) (44,909)
Net current liabilities (18,815) (39,886)
Total assets less current liabilities 959,036 732,343
Provision for deferred Indian capital gains tax (4,422) (2,431)
Net assets 954,614 729,912
Capital and reserves
Share capital 21,762 21,762
Other reserves:
Share premium - 530,091
Capital redemption reserve 5,624 5,624
Special reserve 545,339 19,549
Capital reserve 369,995 146,245
Revenue reserve 11,894 6,641
Total shareholders' funds 954,614 729,912
Net asset value per ordinary share
Basic 468.83p 356.31p
Number of 10p ordinary shares in issue at the period end - note 6 203,618,151 204,853,151
Signed on behalf of the Board of Directors.
Neil Rogan
Chairman
22 January 2026
Notes to the Condensed Financial Statements
1. Accounting Policies
The condensed financial statements have been prepared in accordance with
applicable United Kingdom Accounting Standards and applicable law (UK
Generally Accepted Accounting Practice), including FRS 102 The Financial
Reporting Standard applicable in the UK and Republic of Ireland, FRS 104
Interim Financial Reporting and the Statement of Recommended Practice
Financial Statements of Investment Trust Companies and Venture Capital Trusts,
issued by the Association of Investment Companies in July 2022. The financial
statements are issued on a going concern basis.
The accounting policies applied to these condensed financial statements are
consistent with those applied in the Company's 2025 Annual Financial Report.
2. Income
Six months to Six months to
31 October 31 October
2025 2024
£'000 £'000
Income from investments:
UK dividends 39 73
Overseas dividends - ordinary 13,431 4,157
Overseas dividends - special 796 99
Scrip dividends - 13
Deposit interest 41 12
Total income 14,307 4,354
Special dividends of £200,000 were recognised in capital during the period
(2024: £67,000).
3. Management Fee, Performance Fees
and Finance Costs
Investment management fee and finance costs on any borrowings are charged 75%
to capital and 25% to revenue. Prior to the asset acquisition of Asia Dragon
Trust plc a management fee was payable quarterly in arrears equal to 0.75% per
annum of the value of the Company's total assets less current liabilities
(including any short term borrowings) under management at the end of the
relevant quarter and 0.65% per annum for any net assets over £250 million.
Following the successful combination with Asia Dragon Trust plc becoming
effective on 13 February 2025, the Investment Management Agreement was amended
such that the existing management fee was reduced as follows:
· 0.75% on the first £125 million of the Net Asset
Value;
· 0.60% above £125 million and up to £450 million of
the Net Asset Value; and
· 0.50% on the Net Asset Value in excess of £450
million.
Investment management fee for the period ended 31 October 2025 includes six
months of the nine month time-apportioned fee waiver from the Manager relating
to the successful combination with Asia Dragon Trust in February 2025. The fee
waiver is based on the value of the assets acquired from Asia Dragon Trust
plc.
4. Taxation and Investment Trust
Status
It is the intention of the Directors to conduct the affairs of the Company
such that the conditions for approval as an investment trust company are
satisfied. As such, the Company has not provided any UK corporation tax on any
realised or unrealised capital gains or losses arising on investments. The
Company's tax charge represents withholding tax suffered on overseas income
and Indian capital gains tax paid and provided for due to the holding of
Indian equity investments which are subject to Indian Capital Gains Tax
Regulations. Further details can be found in note 6(d) of the Company's 2025
Annual Financial Report on page 70.
5. Dividends paid on Ordinary Shares
As noted in the Chairman's Statement, a first interim dividend of 3.95p per
share was paid on 25 July 2025 to shareholders on the register on 11 July
2025. Shares were marked ex-dividend on 10 July 2025. A second interim
dividend of 3.95p was paid on 24 October 2025 to
shareholders on the register on 3 October 2025. Shares were marked ex-dividend
on 2 October 2025. The frequency of dividend payments was moved from
half-yearly to quarterly from 1 May 2025.
In accordance with accounting standards, dividends payable after the period
end have not been recognised as a liability.
6. Share Capital, including
Movements
Share capital represents the total number of shares in issue, including
treasury shares.
(a) Ordinary Shares of 10p each
Six months to Year to
31 October 30 April
2025 2025
Number of ordinary shares in issue:
Brought forward 204,853,151 65,908,287
Shares issued as a result of combination with Asia Dragon Trust plc - 142,619,864
Shares bought back into treasury (1,235,000) (3,675,000)
Carried forward 203,618,151 204,853,151
(b) Treasury Shares
Six months to Year to
31 October 30 April
2025 2025
Number of treasury shares held:
Brought forward 12,766,594 9,091,594
Shares bought back into treasury 1,235,000 3,675,000
Carried forward 14,001,594 12,766,594
Total ordinary shares 217,619,745 217,619,745
During the period the Company has bought back, into treasury, 1,235,000
ordinary shares at a total cost of £4,301,000 (30 April 2025: 3,675,000
ordinary shares at a total cost of £12,363,000). 142,619,864 ordinary shares
were issued in exchange for £544,771,000 of net assets following on from the
combination with Asia Dragon Trust plc.
Subsequent to the period end 31 October 2025 and up until20 January 2026,
225,000 ordinary shares were bought back into treasury at an average price of
440.56p. No ordinary shares were issued nor cancelled.
7. Classification Under Fair Value
Hierarchy
FRS 102 sets out three fair value levels. These are:
Level 1 - The unadjusted quoted price in an active market for identical assets
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.
The fair value hierarchy analysis for investments held at fair value at the
period end is as follows:
31 October 30 April
2025 2025
£'000 £'000
Financial assets designated at fair value through profit or loss:
Level 1 945,943 743,688
Level 2 31,908 28,507
Level 3 - 34
Total for financial assets 977,851 772,229
The Level 2 investment consists of two holdings: (i) Kasikornbank valued at
£28,465,000; and (ii) Invesco Liquidity Funds - US Dollar money market fund
valued at £3,443,000 (30 April 2025: one holding: Kasikornbank valued at
£28,507,000).
No Level 3 investments were held at 31 October 2025 (30 April 2025: one
holding: Lime Co. valued at £34,000).
8. Status of Half-Yearly Financial
Report
The financial information contained in this half-yearly report does not
constitute statutory accounts as defined in section 434 of the Companies Act
2006. The financial information for the half years ended 31 October 2025 and
31 October 2024 has not been audited. The figures and financial information
for the year ended 30 April 2025 are extracted and abridged from the latest
audited accounts and do not constitute the statutory accounts for that year.
Those accounts have been delivered to the Registrar of Companies and included
the Report of the Independent Auditor, which was unqualified and did not
include a statement under section 498 of the Companies Act 2006.
By order of the Board
Invesco Asset Management Limited
Corporate Company Secretary
22 January 2026
Glossary of Terms and Alternative Performance Measures
Glossary of Terms
(Discount)/Premium
Discount is a measure of the amount by which the mid-market price of an
investment company share is lower than the underlying net asset value (NAV) of
that share. Conversely, Premium is a measure of the amount by which the
mid-market price of an investment company share is higher than the underlying
net asset value of that share. In this interim financial report the discount
is expressed as a percentage of the net asset value per share and is
calculated according to the formula set out on the next page. If the shares
are trading at a premium the result of the calculation will be positive and if
they are trading at a discount it will be negative.
Gearing
The gearing percentage reflects the amount of borrowings that a company has
invested. This figure indicates the extra amount by which net assets, or
shareholders' funds, would be expected to move if the value of a company's
investments were to rise or fall. A positive percentage indicates the extent
to which net assets are geared; a nil gearing percentage, or `nil', shows a
company is ungeared. A negative percentage indicates that a company is not
fully invested and is holding net cash as described in the Alternative
Performance Measures section below.
Leverage
Leverage, for the purposes of the Alternative Investment Fund Managers
Directive (`AIFMD'), is not synonymous with gearing as defined above. In
addition to borrowings, it encompasses anything that increases the Company's
exposure, including foreign currency and exposure gained through derivatives.
Leverage expresses the Company's exposure as a ratio of the Company's net
asset value. Accordingly, if a Company's exposure was equal to its net assets
it would have leverage of 100%. Two methods of calculating such exposure are
set out in the AIFMD, gross and commitment. Under the gross method, exposure
represents the aggregate of all the Company's exposures other than cash
balances held in base currency and without any offsetting. The commitment
method takes into account hedging and other netting arrangements designed to
limit risk, offsetting them against the underlying exposure.
Net Asset Value (`NAV')
Also described as shareholders' funds, the NAV is the value of total assets
less liabilities. The NAV per share is calculated by dividing the net asset
value by the number of ordinary shares in issue. The number of ordinary shares
for this purpose excludes those ordinary shares held in treasury.
Portfolio Beta
The portfolio beta is a measure of the portfolio's sensitivity to market
movements. The beta of the market is 1.00 by definition. A beta of 1.10 shows
that the portfolio would be expected to perform 10% better than its benchmark
index in rising markets and 10% worse in falling markets, assuming all other
factors remain constant. Conversely, a beta of 0.90 indicates that the
portfolio would be expected to perform 10% worse than the benchmark index
during rising markets and 10% better during falling markets. The beta of the
Company's portfolio was 0.96 as at 31 October 2025.
Return
The return generated in a period from the investments including the increase
and decrease in the value of investments over time and the income received.
Capital Return
Reflects the return on NAV, from the increase and decrease in the value of
investments, but excluding any dividends reinvested.
Total Return
Total return is the theoretical return to shareholders that measures the
combined effect of any dividends paid, together with the rise or fall in the
share price or NAV. In this half-yearly financial report these return figures
have been sourced from LSEG Data & Analytics who calculate returns on an
industry comparative basis. The figures calculated below are six month and one
year total returns, however the same calculation would be used for three, five
and ten year total returns where quoted in this report, taking the respective
Net Asset Values and Share Prices period for the opening and closing periods
and adding the impact of dividend reinvestments for the relevant periods.
NAV Total Return
Total return on net asset value per share, assuming dividends paid by the
Company were reinvested into the shares of the Company at the NAV per share at
the time the shares were quoted ex-dividend.
Share Price Total Return
Total return to shareholders, on a mid-market price basis, assuming all
dividends received were reinvested, without transaction costs, into the shares
of the Company at the time the shares were quoted ex-dividend.
Benchmark Total Return
The benchmark of the Company is the MSCI AC Asia ex Japan Index (total return,
net of withholding tax, in sterling terms). Total return on the benchmark is
on a mid-market value basis, assuming all dividends received were reinvested,
without transaction costs, into the shares of the underlying companies at the
time the shares were quoted ex-dividend.
Alternative Performance Measures
An APM is a measure of performance or financial position that is not defined
in applicable accounting standards and cannot be directly derived from the
financial statements. The calculations shown in the corresponding tables are
for the six months ended 31 October 2025 and the year ended 30 April 2025. The
APMs listed here are widely used in reporting within the investment company
sector and consequently aid comparability.
(Discount)/Premium (APM)
At 31 October At 30 April
Page 2025 2025
Share price 1 a 430.00p 320.00p
Net asset value per share 12 b 468.83p 356.31p
Discount c = (a-b)/b (8.3)% (10.2)%
The average discount for the period/year is the arithmetic average, over a
period/year, of the daily discount calculated on the same basis as shown
above.
Gross Gearing (APM)
This reflects the amount of gross borrowings in use by a company and takes no
account of any cash balances. It is based on gross borrowings as a percentage
of net assets. As at 31 October 2025 the Company had £25,138,000 gross
borrowings (30 April 2025: £43,923,000).
At 31 October At 30 April
2025 2025
Page £'000 £'000
Bank facility 12 25,138 43,923
Gross borrowings a 25,138 43,923
Net asset value 12 b 954,614 729,912
Gross gearing c = a/b 2.6% 6.0%
Net Gearing or Net Cash (APM)
Net gearing reflects the amount of net borrowings invested, i.e. borrowings
less cash and cash equivalents (including investments in money market funds).
It is based on net borrowings as a percentage of net assets. Net cash reflects
the net exposure to cash and cash equivalents, as a percentage of net assets,
after any offset against total borrowings.
At 31 October At 30 April
2025 2025
Page £'000 £'000
Bank facility 12 25,138 43,923
Less: cash and cash equivalents 12 (2,302) (2,400)
Less: Invesco Liquidity Fund - US Dollar (money market fund) (3,443) -
Net borrowings a 19,393 41,523
Net asset value 12 b 954,614 729,912
Net gearing c = a/b 2.0% 5.7%
Total Return (APM)
Net Asset Share
Six Months Ended 31 October 2025 Page Value Price
As at 31 October 2025 1 468.83p 430.00p
As at 30 April 2025 1 356.31p 320.00p
Change in period a 31.6% 34.4%
Impact of dividend reinvestments (1) b 2.5% 2.8%
Total return for the period c = a+b 34.1% 37.2%
Net Asset Share
Year Ended at 30 April 2025 Page Value Price
As at 30 April 2025 1 356.31p 320.00p
As at 30 April 2024 361.51p 313.00p
Change in period a -1.4% 2.2%
Impact of dividend reinvestments (1) b 4.2% 4.9%
Total return for the period c = a+b 2.8% 7.1%
(1) Total dividends paid during the six months to 31
October 2025 of 7.90p (year to 30 April 2025: 15.60p) reinvested at the NAV or
share price on the ex-dividend date. NAV or share price falls subsequent to
the reinvestment date consequently further reduce the returns, vice versa if
the NAV or share price rises.
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