TIDMAAIF
RNS Number : 5545J
abrdn Asian Income Fund Limited
17 August 2023
abrdn Asian Income Fund Limited
Legal Entity Identifier: 549300U76MLZF5F8MN87
UNAUDITED HALF YEARLY REPORT FOR THE SIX MONTHSED 30 JUNE
2023
Performance Highlights
-- The NAV fell by 3.7% on a total return basis for the six
months ended 30 June 2023. This compares to a fall of 2.4% in the
MSCI AC Asia Pacific ex Japan Index.
-- The dividend yield at the end of the period was 5.3%.
Earnings per Ordinary share
Dividend yield (A) - basic (revenue)
Six months ended 30
As at 30 June 2023 5.3% June 2023 6.28p
Six months ended 30
As at 31 December 2022 4.7% June 2022 5.23p
------------------------ --------- ------
Net asset value total return Share price total return
(AB) (AB)
Six months ended 30 Six months ended 30
June 2023 -3.7% June 2023 -4.0%
Year ended 31 December Year ended 31 December
2022 -3.6% 2022 -2.7%
------------------------ --------- --------------------------- ------
MSCI AC Asia Pacific ex Japan MSCI AC Asia Pacific ex Japan
Index total return (currency High Dividend Yield Index total
adjusted) (B) return (currency adjusted) (B)
Six months ended 30 Six months ended 30
June 2023 -2.4% June 2023 1.4%
Year ended 31 December Year ended 31 December
2022 -6.8% 2022 3.2%
------------------------ --------- --------------------------- ------
Discount to net asset value
per Ordinary share (A) Ongoing charges (A)
Six months ended 30
As at 30 June 2023 12.3% June 2023 1.01%
Year ended 31 December
As at 31 December 2022 11.7% 2022 1.01%
------------------------ --------- --------------------------- ------
Net gearing (A)
As at 30 June 2023 10.0%
As at 31 December 2022 8.1%
------------------------ ---------
(A) Alternative Performance Measure.
(B) Total return represents the capital return plus
dividends reinvested.
Chairman's Statement
Highlights
-- Despite the short term underperformance, t he Company has
outperformed the MSCI AC Asia Pacific ex Japan Index over 1, 3 and
5 years
-- Our dividend for the year is expected to exceed 10.60p per
share, an increase from last year, and if achieved would provide a
yield of 5.4%
-- New holdings have been added to the portfolio to further
enhance the Company's income-generating capacity
-- Environmental, social and governance ('ESG') analysis is
firmly embedded in the research process and reflects our belief
that companies with good ESG practices will be the winners over the
longer term
Market Overview
The first half of 2023 was a challenging period for investors in
Asian stock markets, as the macroeconomic environment and monetary
policy moves continued to influence investor sentiment
significantly more than individual company performance.
In my previous annual statement, I had highlighted three key
areas of interest in the outlook: inflation, monetary policy, and
China. Through this review period, we have seen how each theme
proved pivotal in driving market direction. While recession risks
persist in Europe and the US, owing to continued policy rate
tightening, it bears noting that inflation remains lower in Asia. A
positive development was a fall in the price of some key raw
materials, which should help to relieve cost pressures faced by
companies. As for China, optimism around a demand recovery from the
country's Covid re-opening led to an initial rise in Asian stock
markets. This, however, soon gave way to weakness on the back of
signs that China's economic recovery might be stalling, although
markets stabilised subsequently and traded in a narrow range.
The period was also characterised by fluctuating markets caused
by uncertainty around inflation, the impact of the US Federal
Reserve's ("Fed") long series of policy rate increases and whether
a global recession could be avoided later in the year. T he
decision by the OPEC+ group of oil-producing countries to cut
output sparked fears that this could further stoke inflation.
Performance
In this environment, over the six months to 30 June 2023, the
net asset value ("NAV") total return declined by 3.7% on a total
return basis, which compares to the MSCI AC Asia Pacific ex Japan
Index's (the "Index") decline of 2.4%. The share price ended the
period at 201p, representing a discount of 12.3% to the NAV per
share.
Despite the short term underperformance, the Company has
outperformed the Index over 1, 3 and 5 years, underlining the
benefit of the Investment Manager's steadfast commitment to quality
companies offering both capital and income growth.
Portfolio Activity
The Investment Manager took advantage of weakness in the market
to add five holdings that should further enhance your Company's
income-generating capacity; Tencent, Autohome, Telstra, SITC
International and Astra International.
The positions in Medibank, Kasikornbank, and Macquarie Group
were sold to manage the Company's exposure to the financial sector
in the wake of the banking turmoil in the US and Europe. Stakes in
Okinawa Cellular and Bank Rakyat Indonesia were divested in order
to redirect the proceeds into higher yielding companies.
Revenue and Dividends
Revenue earnings per share were 6.28p for the six month period
ended 3 June 2023, an increase of 20.1% compared to the first six
months of the previous year. The Company has continued to benefit
from the Investment Manager's focus on high-yielding companies with
strong fundamentals, where it believes there is room for
significant increases in dividend receipts.
The Company has already declared first and second interim
dividends of 2.50p per share in respect of the year ending 31
December 2023, with the second interim dividend payable on 25
August 2023 to shareholders on the register on 28 July 2023.
The Board is very aware of the importance of dividends to
shareholders and is pleased to reiterate that, in the absence of
unforeseen circumstances, the intention is to declare a total
dividend exceeding 10.60p per Ordinary share in respect of the year
to 31 December 2023, equating to a dividend yield of 5.4% based on
the closing share price of 195.75p on 16 August 2023.
The level of the remaining two dividends for 2023 will be
considered at each quarter end, at which point an announcement will
be made by the Company. There are healthy revenue reserves built up
by the Company that the Board will consider using as appropriate.
Any decision as to whether revenue reserves will be utilised (and
by how much) will be taken at the time of the declaration of the
fourth interim dividend in January 2024.
This Company's history of increasing the dividend means that it
continues to be a "next generation dividend hero" as recognised by
the Association of Investment Companies. It is very much our
intention to continue to extend this record.
Share Capital Management
In line with the Board's policy to buy back shares when the
discount at which the Company's shares trade exceeds 5% to the
underlying NAV (exclusive of income), the Company bought back 1.1
million shares during the period to be held in treasury, at a cost
of GBP2.3 million.
These buybacks provide an enhancement to the Company's NAV and
benefit all shareholders. The Company will continue selectively to
buy back shares in the market, in normal market conditions and at
the discretion of the Board.
Gearing
The Company has a GBP10 million fixed rate term loan and a GBP40
million revolving credit facility, both of which mature in March
2024. At the period end, GBP30.1 million of the revolving credit
facility was drawn down, resulting in total borrowings of GBP40.1
million and gearing (net of cash) of 10.0%, compared to 8.1% at the
beginning of the period.
Jersey Administrator
On 16 August 2023, we announced that the Company had appointed a
new, Jersey based, regulated administrator, JTC Fund Solutions
(Jersey) Limited ("JTC") to carry out the Jersey regulatory
function with effect from 15 August 2023. All investment management
and fund administration functions will continue to be provided by
the abrdn group through its Singapore based Asian Equity team and
UK fund administration team. As a result, day-to-day investment
decisions and management of the Company will not be impacted by the
reorganisation. There are no changes to the management fee as a
result of the reorganisation and the administration fee charged by
JTC will be met by abrdn .
Outlook
Asian markets are likely to remain volatile until there is more
clarity about the strength of China's economy. The central
government will be watching economic data closely, and if the
economy does not improve, we could see Beijing increase its support
through targeted measures. The monetary tightening cycle in the US
will also remain a significant factor. While it is likely that this
tightening is close to its peak, recent comments by Fed chairman,
Jerome Powell, that inflation remains too high and that he expected
further tightening in the second half of the year did cause some
market uncertainty in this regard. With some Asian currencies
pegged to the US Dollar, any further interest rate rises will have
an effect on the markets in which your Company operates.
However, despite the recent difficulties, the fundamental
long-term rationale for investing in Asia remains compelling.
Rising affluence is leading to growth in consumption in premium
products in areas such as personal care, financial services and
food and beverages. Ongoing urbanisation is driving an
infrastructure boom which will benefit property developers and
mortgage providers.
The Investment Manager's focus remains on quality companies with
sustainable business models, strong cash flows and access to
structural growth drivers across Asia, as these support growth in
both capital and shareholder returns.
Ian Cadby
Chairman
17 August 2023
Investment Portfolio
As at 30 June 2023
Valuation Total assets
Company Country GBP'000 %
-------------------------------------- ---------------- ---------- -------------
Taiwan Semiconductor Manufacturing
Company Taiwan 31,768 7.4
Samsung Electronics (Pref) South Korea 22,550 5.3
BHP Group Australia 14,909 3.5
DBS Group Singapore 14,545 3.4
Oversea-Chinese Banking Corporation Singapore 14,167 3.3
Power Grid India 13,664 3.2
Hon Hai Precision Industry Taiwan 12,683 3.0
Venture Corporation Singapore 11,775 2.8
Charter Hall Long Wale REIT Australia 10,429 2.4
China Resources Land China 10,330 2.4
Top ten investments 156,820 36.7
-------------------------------------------------------- ---------- -------------
Region RE Australia 10,209 2.4
AIA Group Hong Kong 10,139 2.4
Sunonwealth Electric Machine Taiwan 10,091 2.4
United Overseas Bank Singapore 9,989 2.3
Rio Tinto (A) Australia 9,870 2.3
Taiwan Mobile Taiwan 9,555 2.2
LG Chem (Pref) South Korea 9,492 2.2
Keppel Infrastructure Trust Singapore 7,857 1.8
Spark New Zealand New Zealand 7,776 1.8
Singapore Telecommunications Singapore 7,230 1.7
Top twenty investments 249,028 58.2
-------------------------------------------------------- ---------- -------------
Commonwealth Bank of Australia Australia 6,638 1.6
Tisco Financial Group Foreign Thailand 6,622 1.5
Auckland International Airport New Zealand 6,407 1.5
Centuria Industries REIT Australia 6,185 1.5
Singapore Technologies Engineering Singapore 6,084 1.4
Hong Kong Exchanges & Clearing Hong Kong 6,024 1.4
Momo.com Inc Taiwan 5,886 1.4
Infosys India 5,682 1.3
Accton Technology Taiwan 5,650 1.3
Midea Group 'A' China 5,559 1.3
Top thirty investments 309,765 72.4
-------------------------------------------------------- ---------- -------------
China Merchants Bank 'A' China 5,295 1.2
ASX Australia 5,097 1.2
Capitaland Investment Singapore 5,065 1.2
Hang Lung Properties Hong Kong 4,987 1.2
SAIC Motor 'A' China 4,954 1.2
Siam Cement (B) Thailand 4,941 1.2
Hana Microelectronics (Foreign) Thailand 4,898 1.1
Capitland India Trust Singapore 4,694 1.1
Tencent Holdings Hong Kong 4,620 1.1
Telstra Corporation Australia 4,459 1.0
Top forty investments 358,775 83.9
-------------------------------------------------------- ---------- -------------
Tata Consultancy Services India 4,396 1.0
SITC International Holdings Hong Kong 4,395 1.0
Globalwafers Taiwan 4,368 1.0
Media Tek Taiwan 4,344 1.0
NZX New Zealand 4,169 1.0
National Australia Bank Australia 4,129 1.0
Amada Co Japan 3,953 0.9
Lotus Retail Growth Freehold And
Leasehold Property Fund Thailand 3,859 0.9
Dah Sing Financial Holding Hong Kong 3,805 0.9
Autohome Adr Cayman Islands 3,759 0.9
Top fifty investments 399,952 93.5
-------------------------------------------------------- ---------- -------------
China Vanke (H shares) China 3,586 0.8
KMC Kuei Meng Taiwan 3,539 0.8
ICICI Bank (C) India 3,405 0.8
Convenience Retail Asia Hong Kong 3,389 0.8
Land & Houses Foreign Thailand 3,267 0.8
Taiwan Union Technology Taiwan 2,228 0.5
AEM Holdings Singapore 2,156 0.5
Digital Core REIT Singapore 2,116 0.5
China Resources Gas Hong Kong 1,705 0.4
Capitaland Ascott Trust Singapore 94 0.0
Top sixty investments 425,437 99.4
-------------------------------------------------------- ---------- -------------
Autohome (A shares) Cayman Islands 30 0.0
Capitaland India Trust(Dummy Rights) Singapore 0 0.0
G3 Exploration (C) China 0 0.0
Total value of investments 425,467 99.4
-------------------------------------------------------- ---------- -------------
Net current assets (D) 2,582 0.6
Total assets 428,049 100.0
-------------------------------------------------------- ---------- -------------
(A) Incorporated in and listing held in United Kingdom.
(B) Holding includes investment in common (GBP3,303,000) and non-voting
depositary receipt (GBP1,638,000) lines.
(C) Corporate bonds.
(D) Excludes bank loans of GBP40,127,000.
Condensed Statement of Comprehensive Income
Six months ended Six months ended
30 June 2023 30 June 2022
(unaudited) (unaudited)
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------------- --------- --------- --------- --------- --------- ---------
Investment income
Dividend income 12,808 - 12,808 10,849 - 10,849
Interest income on investments
held at fair value through
profit or loss 219 - 219 159 - 159
Stock lending income 3 - 3 - - -
Traded option premiums - - - 47 - 47
-------------------------------- --------- --------- --------- --------- --------- ---------
Total revenue 13,030 - 13,030 11,055 - 11,055
Losses on investments
held at fair value through
profit or loss - (24,603) (24,603) - (36,224) (36,224)
Net currency gains/(losses) - 811 811 - (2,313) (2,313)
--------------------------------
13,030 (23,792) (10,762) 11,055 (38,537) (27,482)
-------------------------------- --------- --------- --------- --------- --------- ---------
Expenses
Investment management
fee (631) (946) (1,577) (668) (1,003) (1,671)
Other operating expenses (415) - (415) (496) - (496)
-------------------------------- --------- --------- --------- --------- --------- ---------
Total operating expenses (1,046) (946) (1,992) (1,164) (1,003) (2,167)
-------------------------------- --------- --------- --------- --------- --------- ---------
Profit/(loss) before
finance costs and tax 11,984 (24,738) (12,754) 9,891 (39,540) (29,649)
Finance costs (428) (643) (1,071) (169) (254) (423)
Profit/(loss) before
tax 11,556 (25,381) (13,825) 9,722 (39,794) (30,072)
Tax expense (924) (154) (1,078) (784) 319 (465)
-------------------------------- --------- --------- --------- ---------
Profit/(loss) for the
period 10,632 (25,535) (14,903) 8,938 (39,475) (30,537)
-------------------------------- --------- --------- --------- --------- --------- ---------
Earnings per Ordinary
share (pence) (note
3) 6.28 (15.08) (8.80) 5.23 (23.10) (17.87)
-------------------------------- --------- --------- --------- --------- --------- ---------
The Company does not have any income or expense that is not included
in profit/(loss) for the period, and therefore the "Profit/(loss) for
the period" is also the "Total comprehensive income for the period".
The total columns of this statement represent the Condensed Statement
of Comprehensive Income of the Company, prepared in accordance with
IFRS. The revenue and capital columns are supplementary to this and
are prepared under guidance published by the Association of Investment
Companies. All items in the above statement derive from continuing operations.
All of the profit/(loss) and total comprehensive income is attributable
to the equity holders of abrdn Asian Income Fund Limited. There are
no non-controlling interests.
Condensed Statement of Comprehensive Income (cont'd)
Year ended
31 December 2022
(audited)
Revenue Capital Total
GBP'000 GBP'000 GBP'000
------------------------------------------------------------------------- -------- -------- --------
Investment income
Dividend income 21,423 - 21,423
Interest income on investments held at fair value through profit or loss 371 - 371
Stock lending income - - -
Traded option premiums 47 - 47
------------------------------------------------------------------------- -------- -------- --------
Total revenue 21,841 - 21,841
Losses on investments held at fair value through profit or loss - (29,033) (29,033)
Net currency gains/(losses) - (3,204) (3,204)
-------------------------------------------------------------------------
21,841 (32,237) (10,396)
------------------------------------------------------------------------- -------- -------- --------
Expenses
Investment management fee (1,308) (1,962) (3,270)
Other operating expenses (939) - (939)
------------------------------------------------------------------------- -------- -------- --------
Total operating expenses (2,247) (1,962) (4,209)
------------------------------------------------------------------------- -------- -------- --------
Profit/(loss) before finance costs and tax 19,594 (34,199) (14,605)
Finance costs (470) (704) (1,174)
Profit/(loss) before tax 19,124 (34,903) (15,779)
Tax expense (1,695) 408 (1,287)
------------------------------------------------------------------------- -------- -------- --------
Profit/(loss) for the period 17,429 (34,495) (17,066)
------------------------------------------------------------------------- -------- -------- --------
Earnings per Ordinary share (pence) (note 3) 10.23 (20.24) (10.01)
------------------------------------------------------------------------- -------- -------- --------
Condensed Balance Sheet
As at As at As at
30 June 30 June 31 December
2023 2022 2022
(unaudited) (unaudited) (audited)
Notes GBP'000 GBP'000 GBP'000
-------------------------------- ------ ------------ ------------ -------------
Non-current assets
Investments held at fair value
through profit or loss 425,467 455,329 448,323
-------------------------------- ------ ------------ ------------ -------------
Current assets
Cash and cash equivalents 4,894 4,434 7,328
Other receivables 3,600 2,194 1,175
8,494 6,628 8,503
-------------------------------- ------ ------------ ------------ -------------
Creditors: amounts falling
due within one year
Bank loans 6 (40,127) (39,158) (30,986)
Other payables (5,912) (2,821) (1,288)
(46,039) (41,979) (32,274)
-------------------------------- ------ ------------ ------------ -------------
Net current liabilities (37,545) (35,351) (23,771)
Total assets less current
liabilities 387,922 419,978 424,552
Creditors: amounts falling due after
more than one year
Deferred tax liability on
Indian capital gains (1,134) (1,297) (1,124)
Bank loan 6 - (9,973) (9,981)
--------------------------------
(1,134) (11,270) (11,105)
-------------------------------- ------ ------------ ------------ -------------
Net assets 386,788 408,708 413,447
-------------------------------- ------ ------------ ------------ -------------
Stated capital and reserves
Stated capital 7 194,933 194,933 194,933
Capital redemption reserve 1,560 1,560 1,560
Capital reserve 176,613 200,343 204,414
Revenue reserve 13,682 11,872 12,540
-------------------------------- ------ ------------ ------------ -------------
Equity shareholders' funds 386,788 408,708 413,447
-------------------------------- ------ ------------ ------------ -------------
Net asset value per Ordinary
share (pence) 4 229.17 240.04 243.44
The financial statements were approved by the Board of Directors and
authorised for issue on 17 August 2023 and were signed on its behalf
by:
Ian Cadby
Chairman
The accompanying notes are an integral part of the financial statements.
Condensed Statement of Changes in Equity
Six months ended 30 June
2023 (unaudited)
------------------------------- --------- ------------ --------- --------- ---------
Capital
Stated redemption Capital Revenue
capital reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- --------- ------------ --------- --------- ---------
Opening balance 194,933 1,560 204,414 12,540 413,447
Buyback of Ordinary shares
for treasury - - (2,266) - (2,266)
(Loss)/profit for the period - - (25,535) 10,632 (14,903)
Dividends paid (note 5) - - - (9,490) (9,490)
Balance at 30 June 2023 194,933 1,560 176,613 13,682 386,788
------------------------------- --------- ------------ --------- --------- ---------
Six months ended 30 June
2022 (unaudited)
------------------------------- --------- ------------ --------- --------- ---------
Capital
Stated redemption Capital Revenue
capital reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- --------- ------------ --------- --------- ---------
Opening balance 194,933 1,560 242,727 11,570 450,790
Buyback of Ordinary shares
for treasury - - (2,909) - (2,909)
(Loss)/profit for the period - - (39,475) 8,938 (30,537)
Dividends paid (note 5) - - - (8,636) (8,636)
Balance at 30 June 2022 194,933 1,560 200,343 11,872 408,708
------------------------------- --------- ------------ --------- --------- ---------
Year ended 31 December 2022
(audited)
------------------------------- --------- ------------ --------- --------- ---------
Capital
Stated redemption Capital Revenue
capital reserve reserve reserve Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------------- --------- ------------ --------- --------- ---------
Opening balance 194,933 1,560 242,727 11,570 450,790
Buyback of Ordinary shares
for treasury - - (3,818) - (3,818)
(Loss)/profit for the year - - (34,495) 17,429 (17,066)
Dividends paid (note 5) - - - (16,459) (16,459)
Balance at 31 December 2022 194,933 1,560 204,414 12,540 413,447
------------------------------- --------- ------------ --------- --------- ---------
The revenue reserve represents the amount of the Company's reserves
distributable by way of dividend.
The stated capital in accordance with Companies (Jersey) Law 1991 Article
39A is GBP260,822,000 (30 June 2022 - GBP260,822,000; 31 December 2022
- GBP260,822,000). These amounts include proceeds arising from the issue
of shares by the Company, but exclude the cost of shares purchased for
cancellation or treasury by the Company.
Condensed Statement of Cash Flows
Six months Six months
ended ended Year ended
31 December
30 June 2023 30 June 2022 2022
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------------------ -------------- -------------- -------------
Cash flows from operating activities
Dividend income received 10,673 9,919 21,140
Interest income received 237 153 354
Derivative income received - 47 47
Return of capital included in investment
income 313 - -
Investment management fee paid (786) (1,784) (5,169)
Other cash expenses (580) (479) (801)
------------------------------------------ -------------- -------------- -------------
Cash generated from operations 9,857 7,856 15,571
Interest paid (1,096) (435) (1,041)
Overseas taxation paid (881) (804) (1,712)
------------------------------------------ -------------- -------------- -------------
Net cash inflows from operating
activities 7,880 6,617 12,818
Cash flows from investing activities
Purchases of investments (66,923) (47,167) (55,017)
Sales of investments 68,545 53,206 75,625
Capital gains tax on sales (144) - (83)
Net cash inflow from investing
activities 1,478 6,039 20,525
Cash flows from financing activities
Purchase of own shares for treasury (2,266) (2,909) (3,818)
Dividends paid (9,490) (8,636) (16,459)
Repayment of loans - - (8,948)
Net cash outflow from financing
activities (11,756) (11,545) (29,225)
------------------------------------------ -------------- -------------- -------------
Net (decrease)/increase in cash
and cash equivalents (2,398) 1,111 4,118
Cash and cash equivalents at the
start of the period 7,328 3,268 3,268
Foreign exchange (36) 55 (58)
Cash and cash equivalents at the
end of the period 4,894 4,434 7,328
------------------------------------------ -------------- -------------- -------------
The accompanying notes are an integral part of the financial statements.
Notes to the Financial Statements
For the year ended 30 June 2023
Accounting policies - basis
1. of preparation
The Annual Report is prepared in accordance with International Financial
Reporting Standards (IFRS), as issued by the International Accounting
Standards Board (IASB), and interpretations issued by the International
Financial Reporting Interpretations Committee of the IASB (IFRIC).
The condensed Half Yearly Report has been prepared in accordance
with International Accounting Standards (IAS) 34 - 'Interim Financial
Reporting' and should be read in conjunction with the Annual Report
for the year ended 31 December 2022.
The financial statements have been prepared on a going concern basis.
In accordance with the Financial Reporting Council's guidance on
'Going Concern and Liquidity Risk' the Directors have undertaken
a review of the Company's assets and liabilities. The Company's assets
primarily consist of a diverse portfolio of listed equity shares
which, in most circumstances, are realisable within a very short
timescale.
The condensed interim financial statements have been prepared using
the same accounting policies as the preceding annual financial statements.
During the period the following standards, amendments to standards
and new interpretations became effective. The adoption of these standards
and amendments did not have a material impact on the financial statements:
IAS 1 Amendments Classification of Liabilities 1 January 2023
as Current or Non-Current
IAS 1 Amendments Disclosure of Accounting Policies 1 January 2023
IAS 8 Amendments Definition of Accounting Estimates 1 January 2023
IAS 12 Amendments Deferred Tax related to Assets 1 January 2023
and Liabilities arising from a
Single Transaction
IFRS 4 Amendments Deferral of effective date of 1 January 2023
IFRS 9
IFRS 17 Amendments Insurance Contracts 1 January 2023
IFRS 17 Amendments Amendments (Effective Date) 1 January 2023
(Initial Application of IFRS 17 1 January 2023
IFRS 17 Amendments and IFRS 9 - Comparative Information)
2. Segmental information
For management purposes, the Company is organised into one main operating
segment, which invests in equity securities and debt instruments.
All of the Company's activities are interrelated, and each activity
is dependent on the others. Accordingly, all significant operating
decisions are based upon analysis of the Company as one segment.
The financial results from this segment are equivalent to the financial
statements of the Company as a whole.
3. Earnings per Ordinary share
------------------------------ -------------- -------------- -------------
Six months Six months
ended ended Year ended
31 December
30 June 2023 30 June 2022 2022
(unaudited) (unaudited) (audited)
p p p
------------------------------ -------------- -------------- -------------
Revenue return 6.28 5.23 10.23
Capital return (15.08) (23.10) (20.24)
------------------------------------
Total return (8.80) (17.87) (10.01)
------------------------------------ -------------- -------------- -------------
The figures above are based
on the following:
Six months Six months
ended ended Year ended
31 December
30 June 2023 30 June 2022 2022
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------ -------------- -------------- -------------
Revenue return 10,632 8,938 17,429
Capital return (25,535) (39,475) (34,495)
------------------------------------
Total return (14,903) (30,537) (17,066)
------------------------------------ -------------- -------------- -------------
Weighted average number
of Ordinary shares in issue 169,308,308 170,797,870 170,411,839
------------------------------------ -------------- -------------- -------------
4. Net asset value per share
Ordinary shares. The basic net asset value per Ordinary share and
the net asset values attributable to Ordinary shareholders at the
period end calculated in accordance with the Articles of Association
were as follows:
As at As at As at
31 December
30 June 2023 30 June 2022 2022
(unaudited) (unaudited) (audited)
------------------------------ -------------- -------------- -------------
Attributable net assets
(GBP'000) 386,788 408,708 413,447
Number of Ordinary shares
in issue (excluding shares
in issue held in treasury) 168,776,311 170,269,918 169,832,401
Net asset value per Ordinary
share (p) 229.17 240.04 243.44
------------------------------------ -------------- -------------- -------------
5. Dividends on equity shares
------------------------------------- -------------- -------------- -------------
Six months Six months
ended ended Year ended
31 December
30 June 2023 30 June 2022 2022
(unaudited) (unaudited) (audited)
GBP'000 GBP'000 GBP'000
------------------------------------- -------------- -------------- -------------
Amounts recognised as distributions
to equity holders in the
period:
Second interim dividend
2022 - 2.30p per Ordinary
share - - 3,915
Third interim dividend 2022
- 2.30p per Ordinary share - - 3,908
Fourth interim dividend
for 2022 - 3.10p per Ordinary
share (2021 - 2.75p) 5,263 4,712 4,712
First interim dividend for
2023 - 2.50p per Ordinary
share (2022 - 2.30p) 4,227 3,924 3,924
9,490 8,636 16,459
------------------------------------------- -------------- -------------- -------------
A second interim dividend of 2.50p for the year to 31 December 2023
will be paid on 25 August 2023 to shareholders on the register on
28 July 2023. The ex-dividend date was 27 July 2023.
6. Bank loans
At the period end approximately GBP 15.8 million, USD 8.85 million
and HKD 73.5 million, equivalent to GBP30.1 million was drawn down
from the GBP40 million multi-currency revolving facility with bank
of Nova Scotia, London Branch. The interest rates attributed to the
GBP, USD and HKD loans at the period end were 5.6609%, 6.36448% and
5.94964% respectively.
In addition, the Company has an unsecured fixed GBP10 million credit
facility with Bank of Nova Scotia, London Branch at an all-in interest
rate of 1.53%. Both facilities mature on 2 March 2024.
7. Stated capital
The Company has issued 194,933,389 Ordinary shares of no par value,
which are fully paid (30 June 2022 -194,933,389; 31 December 2022
- 194,933,389).
During the period 1,056,090 Ordinary shares were bought back by the
Company for holding in treasury at a cost of GBP2,266,000 (30 June
2022 - 1,288,978 shares were bought back at a cost of GBP2,909,000;
31 December 2022 - 1,726,495 shares were bought back for holding in
treasury at a cost of GBP3,818,000). As at 30 June 2023 26,157,078
(30 June 2022 - 24,663,471; 31 December 2022 - 25,100,988) Ordinary
shares were held in treasury.
A further 238,157 Ordinary shares have been bought back by the Company
for holding in treasury, subsequent to the reporting period end, at
a cost of GBP490,000. Following the share buybacks there were 168,538,154
Ordinary shares in issue excluding those held in treasury.
8. Related party disclosures
There have been no transactions with related parties during the period
which have materially affected the financial position or the performance
of the Company.
9. Fair value hierarchy
IFRS 13 'Fair Value Measurement' requires an entity to classify fair
value measurements using a fair value hierarchy that reflects the
significance of the inputs used in making measurements. The fair
value hierarchy has the following levels:
Level 1: quoted prices (unadjusted) in active markets for identical
assets or liabilities;
Level 2: inputs other than quoted prices included within Level 1
that are observable for the assets or liability, either directly
(i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3: inputs for the asset or liability that are not based on
observable market data (unobservable inputs).
The financial assets and liabilities measured at fair value in the
Condensed Balance Sheet are grouped into the fair value hierarchy
as follows:
Level Level
Level 1 2 3 Total
At 30 June 2023 (unaudited) GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------- --------- --------- --------- --------
Financial assets at fair value
through profit or loss
Quoted equities 422,062 - - 422,062
Quoted bonds - 3,405 - 3,405
--------- --------
Total assets 422,062 3,405 - 425,467
----------------------------------------- --------- --------- --------- --------
Level Level
Level 1 2 3 Total
At 30 June 2022 (unaudited) GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------- --------- --------- --------- --------
Financial assets at fair value
through profit or loss
Quoted equities 451,557 - - 451,557
Quoted bonds - 3,772 - 3,772
--------- --------- --------- --------
Total assets 451,557 3,772 - 455,329
----------------------------------------- --------- --------- --------- --------
Level Level
Level 1 2 3 Total
At 31 December 2022 (audited) GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------- --------- --------- --------- --------
Financial assets at fair value
through profit or loss
Quoted equities 444,727 - - 444,727
Quoted bonds - 3,596 - 3,596
--------- --------
Total assets 444,727 3,596 - 448,323
----------------------------------------- --------- --------- --------- --------
10. Subsequent Events
On 16 August 2023, the Company announced that it had appointed a
new, Jersey based, regulated administrator, JTC Fund Solutions (Jersey)
Limited ("JTC") to carry out the Jersey regulatory function with
effect from 15 August 2023. All investment management and fund administration
functions will continue to be provided by the abrdn group through
its Singapore based Asian Equity team and UK fund administration
team. As a result, day-to-day investment decisions and management
of the Company will not be impacted by the reorganisation. There
are no changes to the management fee as a result of the reorganisation
and the administration fee charged by JTC will be met by abrdn.
11. Half Yearly Financial Report
The financial information for the six months ended 30 June 2023 and
30 June 2022 has not been audited.
Alternative Performance Measures
Alternative performance measures are numerical measures of the Company's
current, historical or future performance, financial position or cash
flows, other than financial measures defined or specified in the applicable
financial framework. The Company's applicable financial framework includes
IFRS and the AIC SORP. The Directors assess the Company's performance
against a range of criteria which are viewed as particularly relevant
for closed-end investment companies.
Discount to net asset value per Ordinary share
The discount is the amount by which the share price is lower than the
net asset value per share, expressed as a percentage of the net asset
value.
31 December
30 June 2023 2022
----------------------------------------------- ------------- ------------- ------------
NAV per Ordinary share (p) a 229.17p 243.44p
Share price (p) b 201.00p 215.00p
Discount (a-b)/a 12.3% 11.7%
----------------------------------------------- ------------- ------------- ------------
Dividend yield
The yield for 30 June 2023 is calculated based on the prospective annual
dividend for 2023 per Ordinary share in accordance with the Board's stated
target divided by the share price, expressed as a percentage. The yield
for 31 December 2022 is calculated based on the annual dividend for 2022
per Ordinary share divided by the share price, expressed as a percentage.
31 December
30 June 2023 2022
----------------------------------------------- ------------- ------------- ------------
Annual dividend per Ordinary share
(p) a 10.60p 10.00p
Share price (p) b 201.00p 215.00p
Dividend yield a/b 5.3% 4.7%
----------------------------------------------- ------------- ------------- ------------
Net gearing
Net gearing measures the total borrowings less cash and cash equivalents
dividend by shareholders' funds, expressed as a percentage. Under AIC
reporting guidance cash and cash equivalents includes amounts due to
and from brokers at the period end as well as cash and cash equivalents.
31 December
30 June 2023 2022
----------------------------------------------- ------------- ------------- ------------
Borrowings (GBP'000) a 40,127 40,967
Cash (GBP'000) b 4,894 7,238
Amounts due to brokers (GBP'000) c 3,938 -
Amounts due from brokers (GBP'000) d 473 -
Shareholders' funds (GBP'000) e 386,788 413,447
Net gearing (a-b+c-d)/e 10.0% 8.1%
----------------------------------------------- ------------- ------------- ------------
Ongoing charges ratio
The ongoing charges ratio has been calculated in accordance with guidance
issued by the AIC as the total of investment management fees and administrative
expenses and expressed as a percentage of the average published daily
net asset values with debt at fair value throughout the year. The ratio
for 30 June 2023 is based on forecast ongoing charges for the year ending
31 December 2023.
31 December
30 June 2023 2022
----------------------------------------------- ------------- ------------- ------------
Investment management fees (GBP'000) 3,094 3,270
Administrative expenses (GBP'000) 850 939
Less: non-recurring charges (A) (GBP'000) (8) (42)
Ongoing charges (GBP'000) 3,936 4,167
-------------------------------------------------------------- ------------- ------------
Average net assets (GBP'000) 398,166 421,170
-------------------------------------------------------------- ------------- ------------
Ongoing charges ratio (excluding look-through
costs) 0.99% 0.99%
-------------------------------------------------------------- ------------- ------------
Look-through costs (B) 0.02% 0.02%
-------------------------------------------------------------- ------------- ------------
Ongoing charges ratio (including look-through
costs) 1.01% 1.01%
-------------------------------------------------------------- ------------- ------------
(A) Professional services comprising advisory and legal fees considered
unlikely to recur.
(B) Calculated in accordance with AIC guidance issued in October 2020
to include the Company's share of costs of holdings in investment companies
on a look-through basis.
The ongoing charges percentage provided in the Company's Key Information
Document is calculated in line with the PRIIPs regulations which among
other things, includes the cost of borrowings and transaction costs.
Total return
NAV and share price total returns show how the NAV and share price has
performed over a period of time in percentage terms, taking into account
both capital returns and dividends paid to shareholders. Share price
and NAV total returns are monitored against open-ended and closed-ended
competitors, and the Reference Index, respectively.
Share
Six months ended 30 June 2023 NAV Price
----------------------------------------------- ------------- ------------- ------------
Opening at 1 January 2023 a 243.44p 215.00p
Closing at 30 June 2023 b 229.17p 201.00p
Price movements c=(b/a)-1 -5.9% -6.5%
Dividend reinvestment (A) d 2.2% 2.5%
----------------------------------------------- ------------- ------------- ------------
Total return c+d -3.7% -4.0%
----------------------------------------------- ------------- ------------- ------------
Share
Year ended 31 December 2022 NAV Price
----------------------------------------------- ------------- ------------- ------------
Opening at 1 January 2022 a 262.76p 231.00p
Closing at 31 December 2022 b 243.44p 215.00p
Price movements c=(b/a)-1 -7.4% -6.9%
Dividend reinvestment (A) d 3.8% 4.2%
----------------------------------------------- ------------- ------------- ------------
Total return c+d -3.6% -2.7%
----------------------------------------------- ------------- ------------- ------------
(A) NAV total return involves investing the net dividend in the NAV
of the Company with debt at fair value on the date on which that dividend
goes ex-dividend. Share price total return involves reinvesting the net
dividend in the share price of the Company on the date on which that
dividend goes ex-dividend.
Interim Board Report - Disclosures
Principal Risk Factors
The principal risks and uncertainties affecting the Company are
set out below and in detail on pages 22 to 23 of the Annual Report
for the year ended 31 December 2022 and are not expected to change
materially for the remaining six months of the Company's financial
year.
The risks outlined below are those risks that the Directors
considered at the date of this Half Yearly Report to be material
but are not the only risks relating to the Company or its shares.
If any of the adverse events described below actually occur, the
Company's financial condition, performance and prospects and the
price of its shares could be materially adversely affected and
shareholders may lose all or part of their investment. Additional
risks which were not known to the Directors at the date of this
Half Yearly Report, or that the Directors considered at the date of
this Report to be immaterial, may also have an effect on the
Company's financial condition, performance and prospects and the
price of the shares.
If shareholders are in any doubt as to the consequences of their
acquiring, holding or disposing of shares in the Company or whether
an investment in the Company is suitable for them, they should
consult their stockbroker, bank manager, solicitor, accountant or
other independent financial adviser authorised
under the Financial Securities and Markets Act 2000 (as amended
by the Financial Services Act 2012) or, in the case of prospective
investors outside the United Kingdom, another appropriately
authorised independent financial adviser.
The risks can be summarised under the following headings:
- Investment strategy and objectives;
- Investment portfolio, investment management;
- Financial obligations;
- Financial;
- Regulatory;
- Operational; and
- Income and dividend risk.
The Board considers that a number of contingent risks stemming
from the Covid-19 pandemic may continue to linger, which may impact
the operation of the Company. These include investment risks
surrounding the companies in the portfolio such as employee
absence, reduced demand, reduced turnover and supply chain
breakdowns. In addition, the Russian military offensive against
Ukraine has resulted in heightened security and cyber threats
across the globe as well as market disruption and heightened
geo-political uncertainty.
Whilst the Company has no holdings in Ukraine or Russia, these
contingent and emerging risks from the conflict may have a global
impact for some time and may affect the portfolio in the form of
higher energy prices as well as increased volatility.
The Investment Manager will continue to review carefully the
composition of the Company's portfolio and to be pro-active in
taking investment decisions where necessary.
An explanation of other risks relating to the Company's
investment activities, specifically market price, liquidity and
credit risk, and a note of how these risks are managed, are
contained in note 18 on pages 82 to 89 of the Annual Report for the
year ended 31 December 2022.
Going Concern
The Directors have undertaken a robust review of the Company's
ability to continue as a going concern. The Company's assets
consist primarily of a diverse portfolio of listed equity shares
which in most circumstances are realisable within a very short
timescale.
The Directors have reviewed forecasts detailing revenue and
liabilities, have set limits for borrowing and reviewed compliance
with banking covenants, including the headroom available. They have
also considered the ability of the Company to re-finance its loan
facilities which are due to mature in March 2024. Having taken
these factors into account, the Directors believe that the Company
has adequate financial resources to continue in operational
existence for the foreseeable future and at least 12 months from
the date of this Half Yearly Report. Accordingly, the Directors
continue to adopt the going concern basis in preparing these
financial statements.
Directors' Responsibility Statement
The Directors are responsible for preparing this Half Yearly
Financial Report in accordance with applicable law and regulations.
The Directors confirm that to the best of their knowledge:
- the condensed set of interim financial statements contained
within the Half Yearly Financial Report which have been prepared in
accordance with IAS 34 "Interim Financial Reporting", give a true
and fair view of the assets, liabilities, financial position and
profit or loss of the Company;
- the Half-Yearly Board Report includes a fair review of the
information required by rule 4.2.7R of the Disclosure and
Transparency Rules (being an indication of important events that
have occurred during the first six months of the financial year and
their impact on the condensed set of Financial Statements and a
description of the principal risks and uncertainties for the
remaining six months of the financial year); and
- the Half-Yearly Board Report includes a fair review of the
information required by 4.2.8R (being related party transactions
that have taken place during the first six months of the financial
year and that have materially affected the financial position of
the Company during that period; and any changes in the related
party transactions described in the last Annual Report that could
do so).
On behalf of the Board
Ian Cadby
Chairman
17 August 2023
The Half Year Report will be posted to shareholders in August
2023 and copies will be available on the Company's website (
asian-income.co.uk* ).
*Neither the Company's website nor the content of any website
accessible from hyperlinks on that website (or any other website)
is (or is deemed to be) incorporated into, or forms (or is deemed
to form) part of this announcement
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR SFSFMMEDSEEA
(END) Dow Jones Newswires
August 17, 2023 02:00 ET (06:00 GMT)
Grafico Azioni Abrdn Asian Income (LSE:AAIF)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni Abrdn Asian Income (LSE:AAIF)
Storico
Da Mag 2023 a Mag 2024
