Annual Financial Report/Final Results
ABERDEEN ASIAN INCOME FUND LIMITED
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2012
1. CHAIRMAN'S STATEMENT
Background and Overview
I am pleased to report that your Company performed well over the last year. With continuing low interest rates and ample liquidity, equities and fixed income securities in Asia and emerging markets benefited greatly as investors sought yield. Your Company's diluted net asset value ("NAV") total return was 28.5% for the year ended 31 December 2012, which compared very favourably to the 17.2% gain in the MSCI All Country Asia Pacific ex-Japan Index. On a total return basis, the share price gained 37.3% to 222.5p for the year. The premium over net asset value rose from 2.0% to 9.1%, and at the time of writing stands at approximately 5.0%. Dividends were increased by 5.9% to 7.15p.
The heavy exposure to Southeast Asia, in particular the holdings in Thailand, Malaysia and Singapore and consumer-related sectors contributed significantly to returns. The results reflect your Manager's conviction and commitment to investing in well-run companies with significant competitive advantages that are able to deliver decent dividends, backed by stable cash flows. A detailed analysis of the overall performance is contained within the Investment Manager's Review.
In the Half Yearly Report, I had touched on external risks for Asia, namely the European debt crisis and the fragile US recovery. A potential hard landing for China was also concerning. While these same worries persisted through the second half, there was a discernible improvement in risk appetite. Fears of a calamitous Eurozone break-up were almost singlehandedly allayed by European Central Bank president Draghi, who pledged to do whatever it takes to preserve the Euro. The US Federal Reserve launched QE3 and committed to near-zero interest rates for longer, while the housing sector started seeing some signs of life. But there was acrimonious political wrangling over budget cuts after president Obama's re-election.
In Asia, monetary policy easing gathered pace on the back of generally benign inflation. Leading indicators pointed to a slight manufacturing upturn. China's slowdown appeared to have hit a trough in the third quarter, while the political transition to the fifth generation of leaders, led by Xi Jinping, was relatively smooth. Elsewhere, Shinzo Abe became Japan's new prime minister, as his promises to end deflation and resuscitate the economy resonated with most voters, and buoyed domestic stocks to their best annual gains since 2005.
Dividends
Four quarterly interim dividends were declared over 2012. The first three dividends were paid at the rate of 1.55p totalling 4.65p (2011 - 4.5p) which, when added to the fourth interim dividend of 2.50p (2011 - 2.25p), represented an overall increase of 5.9% for the year to stand at 7.15p. Following the payment of the fourth interim dividend, the Company's revenue reserves were £6.58m (which represents approximately 4.35p per share).
In 2012, caution prevailed at the corporate level because of the uncertain global backdrop. Companies in Asia remained disciplined and maintained robust capital positions, while avoiding being overly leveraged. Earnings growth was resilient but unspectacular. Surplus cash was distributed through higher dividends, as well as special pay-outs in some instances. Dividends received from your Company's holdings in 2012 exceeded those of 2011, underscoring the strength of their balance sheets.
Looking ahead, your Company's holdings are in good shape financially. But in view of the operating environment, your Manager remains circumspect and expects sluggish earnings growth - in the single digits - for the coming year. Your Manager is also not anticipating any substantial increase in dividends, given that companies are understandably cautious and would want to retain cash to keep balance sheets liquid. While a number of your Company's holdings, including Malaysian brewery Guinness Anchor and Singapore engineering group Singapore Technologies Engineering, declared special dividends in 2012, your Manager expects the likelihood of such bumper payouts to be much reduced in the coming year. During the year special dividends totalling £783,000 were received and reflected in the revenue account.
Share Issuance and Gearing
During the year, there was strong demand for the Company's shares and over 9.5 million new Ordinary shares were issued at a premium to the prevailing NAV. Such issues enhance the NAV (albeit marginally) for existing shareholders.
By September 2012 it had become clear to the Board that the weight of demand exceeded the level of shares that could be issued within the annual 10% pre-emption authority provided by shareholders. Accordingly, on 22 October 2012 the Company published a Prospectus and Circular to shareholders outlining details of a proposed Placing and Offer for Subscription of C shares. Demand for the C shares was also significant and the overall size of the issue was increased to £60 million and following receipt of approval from shareholders at an Extraordinary General Meeting held in Jersey on 15 November 2012 60,000,000 C shares were issued on 16 November 2012. On 4 February 2013 the C shares were converted into 30,552,000 new Ordinary shares based on the ratio of 0.5092 new Ordinary shares for every one C share held.
Subsequent to the year end and following the conversion of the C shares, an additional 2.65 million Ordinary shares have been issued for cash. A further 2.6 million shares were issued following the exercise of Warrants to subscribe for Ordinary shares in May and October last year. There is a separate notice accompanying the Annual Report confirming that the Final Warrant subscription date will be 8 May 2013.
The Company has a £15 million senior secured multicurrency revolving bank facility with Scotia Bank and during the year the level of drawing under the facility was increased to £13.3 million (drawn in Hong Kong and US Dollars).
Outlook
The sprightly start to 2013 for financial markets underscores the extent to which confidence has been restored, but also highlights the worrying divergence between stimulus-driven support and underlying economic fundamentals. While Western policymakers could conceivably continue to provide such artificial support for some time to come, there is a cost to the rest of the world. Asia, for instance, is grappling with yield-seeking inflows that could result in damaging asset price bubbles. Central banks would have to balance monetary policy tightening, in the event of rising inflation, with other policy responses to liquidity attracted by rising interest rates. QE3 is also pushing up Asian currencies against the US dollar, with Japan's actions to devalue its yen and protect export competitiveness reigniting talk of currency wars. Meanwhile, the US recovery could be derailed by US$85 billion in spending cuts that kick in automatically in March. Elsewhere, elections in Italy and Germany add to the uncertainty in Europe, which is suffering from a deepening recession.
In Asia, political risks bear vigilance, in view of Japan and China's long-drawn territorial dispute, an unpredictable North Korea and looming polls in Malaysia. Social unrest could rise in China as a result of the widening income gap, albeit Beijing has announced measures to address this, such as raising the minimum wage and asking state-owned companies to give more back to government coffers. That said, the IMF expects developing Asia to lead the 3.5% growth in the global economy this year. This reflects the region's healthier fiscal, corporate and economic fundamentals versus the West. The growing importance of domestic demand as a growth driver will also help buffer the impact of subdued consumption in the US and Europe, although structural shifts will take some time to achieve. In a weak growth, low-yield environment, the case for investing in quality companies with decent dividends in Asia remains ever compelling.
Annual General Meeting
The Company's Annual General Meeting ("AGM") will be held at 9.30 a.m. on Thursday 9 May 2013 at No.1 Seaton Place, St Helier, Jersey and your Board looks forward to meeting as many shareholders as possible. If you are unable to attend the AGM, I would encourage you to vote by returning your proxy (or letter of directions if you invest via the Aberdeen Plans) which is enclosed with the Annual Report and Accounts. If you intend to attend the AGM, I would also be grateful if you would tick the relevant box when voting.
I look forward to reporting to you again with the Half-Yearly Report to 30 June 2013, which will be issued to shareholders around the end of August 2013. Those shareholders who wish to keep up to date with developments between formal reports may wish to view the monthly factsheet at http://www.asian-income.co.uk/doc.nsf/Lit/FactsheetUKClosedAAIF.
Peter Arthur
Chairman
27 March 2013
2. INVESTMENT MANAGER'S REVIEW
Overview
Asian stockmarkets posted double-digit gains in 2012, even though their economic growth was lacklustre by historic standards. The rise in equity prices was a consequence of liquidity created by unprecedented central bank action as Western policymakers grew increasingly desperate in the face of sluggish global growth caused by the debt crisis.
In Asia, economies were not immune to the slowdown as global trade fell to its lowest level in five years. This spurred the need for government pump priming. While Singapore, Malaysia and Thailand were more vulnerable because of their open economies, Indonesia and the Philippines proved resilient because of their huge domestic base. Fortuitously, governments in Asia have ample reserves to embark on large infrastructure projects to compensate for faltering exports.
Performance Review
Against this backdrop, the Company's diluted net asset value total return grew 28.5% over the period and the share price posted a total return of 37.3%. This compares well with the MSCI AC Asia Pacific ex Japan Index's total return of 17.2%, as holdings in the portfolio were carefully selected for their cashflow-generative and high dividend-yielding attributes.
Among the stocks that contributed most to relative performance was Malaysia's Guinness Anchor. The company focused its efforts on domestic operations and consolidated its market leadership in the local brewery industry. Including special dividends, its full-year net yield was one of the highest in the industry, thanks to robust operating cash flows.
Elsewhere, Woolworths, one of Australia's largest supermarket and grocery-store chains, increased shareholders' return by spinning off its property assets into a real estate investment trust. Existing shareholders received an in-specie distribution. This streamlined the company's operations and allowed capital to be deployed efficiently.
In Thailand, media-related group BEC World was another outstanding performer. Its share price outpaced the local benchmark on the back of a recovery in advertising expenditure from the October 2011 floods and a more favourable environment for domestic consumption.
Government spending on infrastructure benefited several holdings, including Lafarge Malayan Cement and Thailand's Siam Cement. Both companies saw good run-ups in their share prices. Near-term demand is expected to remain high, ahead of major projects, such as the mass rapid transit system and Kuala Lumpur International Airport 2, as well as reconstruction works in Thailand. Another Thai holding, Electricity Generating, gained from increased levels of energy consumption in the aftermath of the floods.
In contrast, Australian insurer QBE Insurance performed poorly. The impact of unpredictable weather in the US was a key source of disappointment for the company in 2012. QBE was hurt, first by the drought, then by the hurricanes, in America. Although its share price took a beating after these natural disasters, we are still positive about QBE as it has a good history of generating shareholder returns.
Elsewhere, Japanese drugmaker Takeda Pharmaceutical's profits declined because of higher operating expenses and research and development costs. The drop in sales was due to patent expiry on mainstay products, but this was mitigated by growth in newer products. At the time of writing, the company has obtained approval for three new diabetes drugs and we continue to like Takeda because of its good track record in execution and implementation.
Portfolio Activity
During the review period, we increased our exposure to Japan. Significantly, for the first time in years, the Japanese stockmarket now offers decent yields. We are also finding more companies there which meet our quality and value criteria. From a stock-picker's perspective, Japan has enviable strengths: a high-quality workforce, technical expertise and a broad market with numerous first-rate companies, many of which excel in what they do in the global arena. It is, thus, a country particularly suited to our investment process - we are long-term investors and we do in-depth research on individual companies.
Against this backdrop, we introduced Canon, a global market leader for printers, copiers and digital cameras. Continuous focus on profitability and cost control has made it one of the best managed companies in Japan. Canon has a net-cash balance sheet and solid R&D capabilities. It has benefited from robust digital camera sales, particularly in the high-end segment.
We also introduced Ascendas Hospitality Trust, a real estate investment trust with hospitality assets diversified across the region. As part of the Ascendas Group, it has an experienced management team, as well as global hotel giant Accor Group as its preferred partner in the region. Another recent addition was Far East Hospitality Trust, which holds a decent portfolio of good-yielding assets, along with longer-term potential for further asset enhancement and injection opportunities.
Against these, we sold Singapore's SBS Transit, given its narrowing margins resulting from a higher cost base. We also divested New Zealand's Chorus, a spin-out from our holding of New Zealand Telecom.
C Share Issue
In view of your Company's good performance, there was significant demand for its Ordinary shares, as a result of which in October 2012, a new class of C Shares was issued. At the time of writing, the new money has been invested, and the C Shares have been converted into new Ordinary shares.
From the proceeds of the C Shares, we initiated positions in DBS and Okinawa Cellular and invested the balance in existing portfolio holdings. DBS is a well-capitalised regional bank with a solid deposit franchise in Singapore, which is benefiting from its ongoing restructuring efforts. Japanese mobile phone-operator Okinawa Cellular is riding on the growing smartphone penetration in the prefecture, underpinned by a net-cash balance sheet. Both companies provide a decent dividend yield of about 4%.
Outlook
Looking ahead, Asian stockmarkets will still be subject to the external factors weighing on the global economy. Expectations are for a muted US recovery. The fiscal cliff may have been avoided by delaying some tax increases and cuts in spending, but this will only postpone the inevitable impact on the economy. Europe could remain mired in recession as it continues to muddle through the fiscal crisis that is now into the fourth year. As for Asia, growth prospects may be slightly better in 2013 than in the previous year. This would be supported by hopes for a Chinese expansion on the back of the new leadership, intent on narrowing the wage gap, while pursuing economic reform.
Ultimately, though, it is the quality of the holdings within the portfolio that makes the difference, no matter the macroeconomic circumstance. We are confident that the holdings in your portfolio are likely to continue delivering decent returns over the longer term.
Aberdeen Asset Management Asia Limited
27 March 2013
3. STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Jersey Company law requires the Directors to prepare financial statements for each financial period in accordance with any generally accepted accounting principles. The financial statements of the Company are required by law to give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors should:
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select suitable accounting policies and then apply them consistently;
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make judgments and estimates that are reasonable and prudent;
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specify which generally accepted accounting principles have been adopted in their preparation; and,
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping accounting records which are sufficient to show and explain its transactions and are such as to disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements prepared by the Company comply with the requirements of the Companies (Jersey) Law 1991. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors confirm that to the best of their knowledge:
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the financial statements, prepared in accordance with IFRS, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and
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the Annual Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that the Company faces.
For Aberdeen Asian Income Fund Limited
P A K Arthur
Chairman
27 March 2013
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in Jersey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions
4. BUSINESS REVIEW
A review of the Company's activities is given in the Chairman's Statement and the Investment Manager's Review. This includes a review of the business of the Company and its principal activities, likely future developments of the business, dividends declared and details of the issue of shares during the year by the Company. The principal risks associated with the Company are detailed below and in note 16 to the financial statements. The Key Performance Indicators for the Company including NAV performance, share price performance and the performance of the MSCI AC Asia Pacific (ex Japan) Index are detailed in the Results below.
The current Directors, Messrs P Arthur, D Baxter, A Berzins, C Clarke (appointed on 29 March 2012), H Young and Dr A Armstrong together with Mr M Chambers (retired on 16 May 2012) were the only Directors in office during the year.
Status
The Company is registered with limited liability in Jersey as a closed-end investment company under the Companies (Jersey) Law 1991 with registered number 91671. In addition, the Company constitutes and is regulated as a collective investment fund under the Collective Investment Funds (Jersey) Law 1988. The Ordinary shares are admitted to the Official List in the premium segment and are traded on the London Stock Exchange's Main Market.
Principal Risks and Uncertainties
An investment in the Ordinary shares and/or Warrants is only suitable for investors capable of evaluating the risks (including the potential risk of capital loss) and merits of such investment and who have sufficient resources to bear any loss which may result from such investment. Furthermore, an investment in the Ordinary shares and/or Warrants should constitute part of a diversified investment portfolio.
The risks described below are those risks that the Directors considered at the date of this Annual 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 Annual Report, or that the Directors considered at the date of this Annual Report to be immaterial may also have an effect on the Company's financial condition, performance and prospects and the share 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 FSMA or, in the case of prospective investors outside the United Kingdom, another appropriately authorised independent financial adviser.
Investment Objective
There is no guarantee that the Company will achieve its investment objective as its ability to do so is largely dependent on:
· market conditions and responses to market conditions that are subject to uncertainties due to possible changes in economic or industry conditions, competition, political and diplomatic events, natural disasters, changes in laws (including taxation and regulation) and other factors beyond the control of the Company or the Investment Manager; and
· the performance of the Investment Manager in acquiring, managing and disposing of investments for the Company in accordance with the Company's investment policy (and, whilst the Investment Manager applies investment techniques and risk analyses in making investment decisions for the Company, there can be no guarantee that these will produce the desired results).
Ordinary Shares
· The Directors intend to operate an active discount management policy through the use of Ordinary share buybacks to seek to maintain the price at which the Ordinary shares trade relative to their prevailing NAV at a discount of no more than 5.0 per cent. The making and timing of Ordinary share buy-backs is subject to a number of legal and regulatory restrictions and other factors and remains at the absolute discretion of the Board. Accordingly, there is no guarantee that the Board's discount management policy will achieve its objective or always be, or be capable of being, implemented.
· In the event of the winding-up of the Company prior to the exercise of the subscription rights conferred by the Warrants, Warrantholders may receive a payment out of the assets which would otherwise be available for distribution amongst the Ordinary shareholders.
General
· The value of the shares, and the income derived from them (if any), can fluctuate and may go down as well as up. An investment in shares should be regarded, therefore, as medium to long-term in nature and may not be suitable as a short-term investment.
· An investment in shares represents an indirect investment in the securities owned by the Company and attributable to those shares. The value of those securities, like other market investments, may go down as well as up, sometimes rapidly and unpredictably. Changes in the value of the Company's investments will affect the NAV of the shares to which they are attributable. Accordingly, the NAV of a share may go down as well as up, sometimes rapidly and unpredictably, and at any point in time may be worth less than the original investment, even after taking into account dividends paid by the Company in respect of that share. As a result, investors in the shares may not be able to realise the full amount of their original investment.
· The share price of a share, as well as being affected by its NAV, also takes into account its dividend yield, prevailing interest rates, the interaction of supply and demand for them in the market, market conditions generally and general investor sentiment. As a result, and notwithstanding the existence of powers to buy back Ordinary shares through the market and the Board's discount management policy, the share price of a share may vary considerably from its NAV (representing either a discount or a premium to that NAV) and may fall when the NAV is rising, or vice versa.
· The published share price of a share is typically its mid-market price. Due to the potential difference between the mid-market price of a share and the price at which it can be sold, there is no guarantee that the realisable value of a share will reflect its published share price.
· The Company does not have a fixed life and shareholders have no right to have their shares repurchased or redeemed by the Company. Accordingly, shareholders wishing to realise their investment in the Company will be required to dispose of their shares through the stockmarket. Market liquidity in the shares of London-listed closed-end investment companies is frequently inferior to the market liquidity in shares issued by larger companies traded on the London Stock Exchange. There can be no guarantee that a liquid market in the shares will exist or be maintained. Accordingly, shareholders may be unable to realise their shares at their published or quoted share price.
Dividends
· The Directors have absolute discretion in determining the level of dividends payable by the Company. The Company will only pay dividends on the shares to the extent that it has sufficient financial resources available for the purpose in accordance with Jersey Company Law. The ability of the Company, therefore, to pay dividends in respect of the shares and any future dividend growth will depend primarily on the level of income received from its investments (which may be affected by, amongst others, exchange controls or withholding taxes imposed by jurisdictions in which the Company invests) and the timing of receipt of such income by the Company. Accordingly, there is no guarantee that the Company's dividend objective will continue to be met and the amount of the dividends paid to Ordinary shareholders may fluctuate and may go down as well as up.
Investment Risks
General Market Risks
· Stockmarket movements and changes in economic conditions (including, for example, interest rates, foreign exchange rates and rates of inflation), changes in industry conditions, competition, political and diplomatic events, natural disasters, changes in laws (including taxation and regulation), investors' perceptions and other factors beyond the control of the Company or the Investment Manager can substantially and either adversely or favourably affect the value of the securities in which the Company invests and, therefore, the Company's financial condition, performance and prospects.
· There can be no guarantee that any realisation of an investment will be on a basis which necessarily reflects the Company's valuation of that investment for the purposes of calculating the NAV of a share and the sale of any investment at a price below the Company's valuation of that investment will result in a diminution of the relevant NAV.
Emerging Market Risks
Investment in certain emerging securities markets of the Asia Pacific region may involve a greater degree of risk than that usually associated with investment in more developed securities markets. In particular, in certain countries in which the Company invests:
· liquidity and settlement risks may be greater;
· accounting standards may not provide the same degree of shareholder protection as would generally apply internationally;
· national policies may restrict the investment opportunities available to foreign investors, including restrictions on investing in issuers or industries deemed sensitive to relevant national interests;
· the fiscal and monetary systems remain relatively undeveloped and this may affect the stability of the economic and financial markets of these countries;
· substantial limitations may exist with respect to the Company's ability to repatriate investment income, capital or the proceeds of sales of securities by foreign investors; and
· assets may be subject to increased political and/or regulatory risk.
Debt Securities
· Any debt securities that may be held by the Company will be affected by general changes in interest rates that will in turn result in increases and decreases in the market value of those instruments. When interest rates decline, the value of the Company's investments in fixed rate debt obligations can be expected to rise and, when interest rates rise, the value of those investments may decline.
· Adverse changes in the financial position of an issuer of debt securities or general economic conditions may impair the ability of the issuer to meet interest payments and repayments of principal. Accordingly, debt securities that may be held by the Company will also be subject to the inherent credit or default risks associated with the debt securities and there can be no assurance as to the levels of default and/or recovery that may be experienced by the Company with regard to such securities.
· To the extent that the Company invests in sub-investment grade debt and other securities the Company may realise a higher current yield than the yield offered by investment grade securities, but investment in such securities involves a greater volatility of price and a greater probability of default by the issuers of such securities with consequent loss of interest payments and repayments of principal. Sub-investment grade securities will have, in the judgement of a rating agency, uncertainties or risk exposures to adverse conditions, and are speculative with respect to an issuer's capacity to meet interest payments and repay principal in accordance with the terms of the obligation.
Cash and Cash-equivalent Investments
A proportion of the Company's portfolio may be held in cash or cash-equivalent investments from time to time. When assets are held in cash or cash-equivalent investments, they will be out of the market and will not benefit from positive stockmarket movements (but may give some protection against negative stockmarket movements).
Illiquid Securities
The Company may invest in securities that are not readily tradable or may accumulate investment positions that represent a significant multiple of the normal trading volumes of an investment, which may make it difficult for the Company to sell its investments and may lead to volatility in the share price of the shares. Investors should not expect that the Company will necessarily be able to realise, within a period which they would otherwise regard as reasonable, its investments and any such realisations that may be achieved may be at a considerably lower price than prevailing indicative share prices.
Derivatives
· The Company may invest in derivatives for efficient portfolio management purposes. There may not be a price correlation between price movements in the underlying securities, currency or index, on the one hand, and price movements in the investments which are the subject of the derivative, on the other hand, and accordingly, such instruments may not always achieve the intended effect under all or any market conditions. In addition, an active market may not exist for a particular derivative instrument at any particular time.
· The Company will be exposed to credit risk on the counterparties with which it trades in respect of derivative instruments. The Company will seek to transact only with major established counterparties but there can be no guarantee that counterparty defaults will not occur.
General
As the Company's portfolio is constructed without reference to the composition of any stockmarket index or benchmark, there is a risk that the portfolio will underperform by a significant amount certain regional benchmarks, such as the MSCI AC Asia Pacific (ex-Japan) Index, as no attempt is made to track their performance.
Stock Lending
Although it has not done so since its launch, the Company may enter into stock lending contracts which expose the Company to the risk that a counterparty may default in its obligations under such a contract, whether because of a dispute over the terms of the contract or because of a counterparty's liquidation. Such counterparty risk is accentuated for contracts with longer maturities where events may intervene to prevent settlement.
Borrowings
· Pursuant to the level of gearing set by the Board, the Company may borrow up to an amount equal to 25 per cent. of its NAV. Whilst the use of borrowings should generally enhance the total return on the Ordinary shares where the return on the Company's underlying assets is rising and exceeds the cost of borrowing, it will have the opposite effect where the underlying return is falling, further reducing the total return on the Ordinary shares. Accordingly, the use of borrowings by the Company may increase the volatility of the NAV of the Ordinary shares, and the share price of the Ordinary shares.
· Interest rate movements may affect the interest payable on any variable rate cash borrowings drawn down by the Company. A significant increase in interest rates could result in a substantial reduction in the Company's revenue profits available to fund dividend payments on the Ordinary shares.
Foreign Exchange
· The Company accounts for its activities, reports its results and the NAV per share and declares and pays dividends in sterling while its investments are made and realised in other currencies. Where the Company does not hedge its currency exposure, the movement of exchange rates between sterling and the other currencies in which the Company's investments are denominated or its borrowings are drawn down may have a material effect, unfavourable or favourable, on the returns otherwise experienced on the investments made by the Company and may affect the Company's ability to pay dividends. Accordingly, this foreign exchange risk may increase the volatility of the NAV and share price of the shares.
· Although the Investment Manager may seek to manage all or part of the Company's foreign exchange exposure, there is no assurance that this can be performed effectively. Where the Company does hedge all or part of its currency exposure, there is no guarantee that such arrangements will be successful in reducing exchange risks and such arrangements may result in the Company incurring additional costs.
· Movements in the foreign exchange rate between sterling and the currency applicable to a particular shareholder may have an impact upon that shareholder's returns in their own currency of account.
Taxation and Exchange Controls
· Any change in the Company's tax status, in tax treaty rates, in taxation legislation, the interpretation of taxation legislation or the tax treatment of dividends, interest or other investment income received by the Company could affect the value of the investments held by the Company, affect the Company's ability to provide returns to shareholders or alter the post-tax returns to shareholders.
· To maintain its non-UK tax resident status, the Company is required to be managed and controlled outside the United Kingdom. The composition of the Company's Board of Directors, the place of residence of the individual members of the Board and the location in which the Board makes and executes its decisions will be important in determining and maintaining the non-UK tax residence status of the Company. In the event that the Board is regarded by HM Revenue & Customs as having made strategic decisions, or executed important documents, in the United Kingdom, the Company may lose its non-UK tax resident status, which could negatively affect the Company's financial condition, performance and prospects, affect the Company's ability to provide returns to shareholders or alter the post-tax returns to shareholders.
· The Company may purchase investments that may be subject to exchange controls or withholding taxes in various jurisdictions. In the event that exchange controls or withholding taxes are imposed with respect to any of the Company's investments, the effect will generally be to reduce the capital value of the affected investments and the income received by the Company on affected investments.
Accounting Practices and Policies
· Any change in financial reporting standards or accounting practices could affect the reported value of the investments held by the Company, affect the Company's ability to provide returns to shareholders or alter the post-tax returns to shareholders.
· A proportion of the expenses of managing the Company, including the investment management fee and any financing costs, are charged to the Company's capital account. In the absence of capital growth in the Company's assets in excess of the aggregate value of such expenses charged to the capital account, this practice will result in a diminution in the Company's capital account and a corresponding reduction in the NAV per share. However, this practice will also, all other things being equal, result in the short term in an increased amount of net revenue being available for distribution to shareholders.
Reliance on Third-party Service Providers
· The Company has no employees and relies on the performance of third-party service providers to perform its executive functions. In particular, the Company is reliant on the Investment Manager, which has significant discretion as to the implementation of the Company's investment policy. Failure by any service provider to carry out its obligations to the Company in accordance with the terms of its appointment without exercising due care and skill could have a material adverse effect on the Company's financial condition, performance and prospects and, accordingly, on returns to shareholders.
· The Company's third party service providers are themselves subject to operational risks, which can arise from inadequate or failed processes, systems or resources or from external factors affecting these. The information technology and other systems of such service providers, or their business processes and procedures on which the Company may depend, may not perform as expected, including recovery from unanticipated disruptions to their business. Any such inadequacies of failures could have a material adverse effect on the Company's financial condition, performance and prospects and, accordingly, on returns to shareholders.
· The termination of the Company's relationship with any third-party service provider (and, in particular, the Manager or the Investment Manager), or any delay in appointing a replacement for any such service provider, could materially disrupt the Company's business and could have a material adverse effect on the Company's financial condition, performance and prospects and, accordingly, on returns to shareholders.
Potential Conflicts of Interest
The Aberdeen Group may be involved in other investment activities that may on occasion give rise to conflicts of interest with the Company. In particular, it currently does, and may continue to, provide investment management, investment advice or other services in relation to a number of other companies, funds or accounts that may have similar investment objectives and/or policies, to that of the Company and may receive ad valorem and/or performance related fees for doing so. As a result, the Investment Manager may have conflicts of interest in allocating investments among the Company and other clients and in effecting transactions between the Company and other clients. The Aberdeen Group may give advice or take action with respect to such other clients that differs from the advice given or actions taken with respect to the Company.
Past Performance
The past performance of the Company is not, and should not be relied on as, a guide to the future performance of the Company.
Alternative Investment Fund Managers Directive
The European Commission published the Alternative Investment Fund Managers Directive on 1 July 2011 (the "AIFM Directive"). The AIFM Directive, which came into force on 21 July 2011, is due to be implemented through secondary legislation in the UK by 22 July 2013, and is likely to have a significant impact on the management of almost all investment funds which are not UCITS collective investment schemes. There is a continuing debate on the so called "third country" provisions which are not due to come into effect until 2015 at the earliest and may affect the Company as it is incorporated in Jersey which is not part of the EU. Although it is too early to be definitive as to the impact on the Company, it seems likely that there will be restrictions on the marketing of shares issued by non-EU domiciled funds to investors in the EU, which in turn may have a negative impact on marketing and liquidity generally. It is also likely there will be an increase, potentially a material increase, in the Company's governance and administration expenses in complying with the AIFM Directive if the Company wishes to take advantage of the proposed marketing "passport" in order to market within the EU. The Board and the Company's advisers will continue to monitor the progress and likely implications of the AIFM Directive for the Company and, in particular, costs.
Foreign Account Tax Compliance Act
The applicability of the provisions of the US Government's Foreign Account Tax Compliance Act ("FATCA") is not yet fully known. Under FATCA, a withholding tax may be imposed on payments made to certain non-US financial institutions in connection with their US source investments, whether held directly or via another financial institution or financial intermediary. The withholding tax may be avoided if the financial institution in question complies with information gathering and disclosure requirements imposed under the FATCA legislation in relation to its US account holders (as defined in the FATCA regulations). It is expected that the Company will be classed as a financial institution to which FATCA will apply. The Government of Jersey has announced its intention to enter into an Intergovernmental Agreement (IGA) with the U.S. Internal Revenue Service (IRS), which will allow financial institutions established in Jersey to comply with FATCA without breaching local data privacy laws and should reduce the practical implementation of the FATCA provisions. However, a draft IGA has not yet been released. On the basis that the Company is required to comply with FATCA (either under the FATCA regulations or an IGA), the Company may be required to ultimately provide certain information to the U.S. IRS (which may or may not be transmitted via the Jersey tax authorities) about certain shareholders and their holdings with the Company in order to fully discharge its FATCA reporting obligations. In the event of any failure or inability to comply with FATCA, the Company may suffer a withholding tax at an effective rate of up to 30 per cent. on payments made in connection with any US-source investments held directly or indirectly by it.
5. STATEMENT OF COMPREHENSIVE INCOME
|
|
|
Year ended |
Year ended |
||||
|
|
|
31 December 2012 |
31 December 2011 |
||||
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
|
Notes |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Investment income |
4 |
|
|
|
|
|
|
|
Dividend income |
|
14,231 |
55 |
14,286 |
10,887 |
52 |
10,939 |
|
Interest income |
|
821 |
- |
821 |
991 |
- |
991 |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
______ |
|
Total revenue |
|
15,052 |
55 |
15,107 |
11,878 |
52 |
11,930 |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
______ |
|
Gains/(losses) on investments designated at fair value through profit or loss |
10 |
- |
60,351 |
60,351 |
- |
(3,891) |
(3,891) |
|
Net currency gains/(losses) |
|
- |
599 |
599 |
- |
(48) |
(48) |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
______ |
|
|
|
15,052 |
61,005 |
76,057 |
11,878 |
(3,887) |
7,991 |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
______ |
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
Investment management fee |
5 |
(1,127) |
(1,691) |
(2,818) |
(859) |
(1,288) |
(2,147) |
|
Other operating expenses |
6 |
(827) |
(3) |
(830) |
(841) |
(4) |
(845) |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
______ |
|
Profit before finance costs and tax |
|
13,098 |
59,311 |
72,409 |
10,178 |
(5,179) |
4,999 |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
______ |
|
Finance costs |
7 |
(88) |
(133) |
(221) |
(75) |
(112) |
(187) |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
______ |
|
Profit before tax |
|
13,010 |
59,178 |
72,188 |
10,103 |
(5,291) |
4,812 |
|
|
|
|
|
|
|
|
|
|
Tax expense |
2(d) |
(580) |
- |
(580) |
(459) |
- |
(459) |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
______ |
|
Profit/(loss) for the year |
|
12,430 |
59,178 |
71,608 |
9,644 |
(5,291) |
4,353 |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
______ |
|
Profit/(loss) for the year analysed as follows: |
|
|
|
|
|
|
|
|
Attributable to equity shareholders |
|
12,240 |
56,764 |
69,004 |
9,644 |
(5,291) |
4,353 |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
______ |
|
Attributable to C shares |
|
190 |
2,414 |
2,604 |
- |
- |
- |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
______ |
|
Total |
|
12,430 |
59,178 |
71,608 |
9,644 |
(5,291) |
4,353 |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
______ |
|
|
|
|
|
|
|
|
|
|
Earnings per Ordinary share (pence): |
9 |
|
|
|
|
|
|
|
Basic |
|
8.31 |
38.56 |
46.87 |
7.44 |
(4.08) |
3.36 |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
______ |
|
Diluted |
|
8.21 |
38.07 |
46.28 |
7.26 |
(3.98) |
3.28 |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
______ |
|
Earnings per C share (pence): |
9 |
|
|
|
|
|
|
|
Basic and diluted |
|
0.32 |
4.02 |
4.34 |
n/a |
n/a |
n/a |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
______ |
|
|
|
|
|
|
|
|
|
|
The Company does not have any income or expense that is not included in profit/(loss) for the year, and therefore the "Profit/(loss) for the year" is also the "Total comprehensive income for the year", as defined in IAS 1 (revised). |
|||||||
|
All of the profit/(loss) and total comprehensive income is attributable to the equity holders and C share holders of Aberdeen Asian Income Fund Limited. There are no minority interests. |
|||||||
|
The total column of this statement represents the 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. |
|||||||
|
The accompanying notes are an integral part of the financial statements. |
|||||||
6. BALANCE SHEET
|
|
|
As at |
As at |
|
|
|
31 December |
31 December |
|
|
|
2012 |
2011 |
|
|
Notes |
£'000 |
£'000 |
|
Non-current assets |
|
|
|
|
Investments designated at fair value through profit or loss |
10 |
381,705 |
236,609 |
|
|
|
_________ |
_________ |
|
Current assets |
|
|
|
|
Cash and cash equivalents |
|
4,532 |
5,930 |
|
Other receivables |
11 |
884 |
738 |
|
|
|
_________ |
_________ |
|
|
|
5,416 |
6,668 |
|
|
|
_________ |
_________ |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
Bank loans |
12 |
(13,268) |
(11,000) |
|
Other payables |
12 |
(889) |
(331) |
|
C shares |
13 |
(61,677) |
- |
|
|
|
_________ |
_________ |
|
|
|
(75,834) |
(11,331) |
|
|
|
_________ |
_________ |
|
Net current liabilities |
|
(70,418) |
(4,663) |
|
|
|
_________ |
_________ |
|
Net assets |
|
311,287 |
231,946 |
|
|
|
_________ |
_________ |
|
|
|
|
|
|
Stated capital and reserves |
|
|
|
|
Stated capital |
13 |
151,182 |
139,084 |
|
Warrant reserve |
|
357 |
615 |
|
Capital redemption reserve |
|
1,560 |
1,560 |
|
Capital reserve |
14 |
147,830 |
82,523 |
|
Revenue reserve |
14 |
10,358 |
8,164 |
|
|
|
_________ |
_________ |
|
Equity shareholders' funds |
|
311,287 |
231,946 |
|
|
|
_________ |
_________ |
|
|
|
|
|
|
Net asset value per Ordinary share (pence): |
15 |
|
|
|
Basic |
|
205.90 |
166.77 |
|
|
|
_________ |
_________ |
|
Diluted |
|
203.92 |
164.78 |
|
|
|
_________ |
_________ |
|
Net asset value per C share (pence): |
15 |
|
|
|
Basic |
|
102.80 |
n/a |
|
|
|
_________ |
_________ |
7. STATEMENT OF CHANGES IN EQUITY
|
For the year ended 31 December 2012 |
|
|
|
|
|
|
|
|
|
|
|
Capital |
|
|
|
|
|
|
Stated |
Warrant |
redemption |
Capital |
Revenue |
Retained |
|
|
|
capital |
reserve |
reserve |
reserve |
reserve |
earnings |
Total |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Opening balance |
139,084 |
615 |
1,560 |
82,523 |
8,164 |
- |
231,946 |
|
Issue of own shares |
9,517 |
- |
- |
7,769 |
- |
- |
17,286 |
|
Exercise of warrants |
2,581 |
(258) |
- |
774 |
- |
- |
3,097 |
|
Profit for the year |
- |
- |
- |
- |
- |
69,004 |
69,004 |
|
Transferred from retained earnings to capital reserve{A} |
- |
- |
- |
56,764 |
- |
(56,764) |
- |
|
Transferred from retained earnings to revenue reserve |
- |
- |
- |
- |
12,240 |
(12,240) |
- |
|
Dividends paid |
- |
- |
- |
- |
(10,046) |
- |
(10,046) |
|
|
_______ |
______ |
________ |
_______ |
______ |
______ |
_______ |
|
Balance at 31 December 2012 |
151,182 |
357 |
1,560 |
147,830 |
10,358 |
- |
311,287 |
|
|
_______ |
______ |
________ |
_______ |
______ |
______ |
_______ |
|
|
|
|
|
|
|
|
|
|
For the year ended 31 December 2011 |
|
|
|
|
|
|
|
|
|
|
|
Capital |
|
|
|
|
|
|
Stated |
Warrant |
redemption |
Capital |
Revenue |
Retained |
|
|
|
capital |
reserve |
reserve |
reserve |
reserve |
earnings |
Total |
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
Opening balance |
118,035 |
2,095 |
1,560 |
79,427 |
7,037 |
- |
208,154 |
|
Issue of own shares |
6,250 |
- |
- |
3,947 |
- |
- |
10,197 |
|
Exercise of warrants |
14,799 |
(1,480) |
- |
4,440 |
- |
- |
17,759 |
|
Profit for the year |
- |
- |
- |
- |
- |
4,353 |
4,353 |
|
Transferred from retained earnings to capital reserve{A} |
- |
- |
- |
(5,291) |
- |
5,291 |
- |
|
Transferred from retained earnings to revenue reserve |
- |
- |
- |
- |
9,644 |
(9,644) |
- |
|
Dividends paid |
- |
- |
- |
- |
(8,517) |
- |
(8,517) |
|
|
_______ |
______ |
________ |
_______ |
______ |
______ |
_______ |
|
Balance at 31 December 2011 |
139,084 |
615 |
1,560 |
82,523 |
8,164 |
- |
231,946 |
|
|
_______ |
______ |
________ |
_______ |
______ |
______ |
_______ |
|
|
|
|
|
|
|
|
|
|
{A}Represents the capital profit attributable to equity shareholders per the Statement of Comprehensive Income. |
|||||||
|
The revenue reserve represents the amount of the Company's reserves distributable by way of dividend. |
|||||||
|
The accompanying notes are an integral part of the financial statements. |
|||||||
8. CASH FLOW STATEMENT
|
|
|
Year ended |
Year ended |
|||
|
|
|
31 December 2012 |
31 December 2011 |
|||
|
|
Notes |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Profit for the year |
|
|
71,608 |
|
4,353 |
|
|
Add back finance costs |
7 |
|
221 |
|
187 |
|
|
Add back taxation paid |
|
|
580 |
|
459 |
|
|
(Gains)/losses on investments held at fair value through profit or loss |
10 |
|
(60,351) |
|
3,891 |
|
|
Net currency (gains)/losses |
14 |
|
(599) |
|
48 |
|
|
(Increase)/decrease in other receivables |
|
|
(146) |
|
460 |
|
|
Increase/(decrease) in other payables |
|
|
176 |
|
(113) |
|
|
|
|
|
_______ |
|
_______ |
|
|
Net cash inflow from operating activities before finance costs and tax{A} |
|
|
11,489 |
|
9,285 |
|
|
|
|
|
|
|
|
|
|
Bank and loan interest paid |
|
|
(201) |
|
(188) |
|
|
|
|
|
|
|
|
|
|
Overseas taxation paid |
|
|
(580) |
|
(459) |
|
|
|
|
|
_______ |
|
_______ |
|
|
Net cash inflow from operating activities |
|
|
10,708 |
|
8,638 |
|
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
Purchases of investments |
|
(134,470) |
|
(48,529) |
|
|
|
Sales of investments |
|
50,089 |
|
24,962 |
|
|
|
|
|
_______ |
|
_______ |
|
|
|
Net cash outflow from investing activities |
|
|
(84,381) |
|
(23,567) |
|
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
Proceeds from issue of Ordinary shares |
13 |
17,286 |
|
10,197 |
|
|
|
C share issue proceeds net of expenses |
13 |
59,073 |
|
- |
|
|
|
Proceeds from exercise of warrants |
13 |
3,097 |
|
17,759 |
|
|
|
Dividends paid |
8 |
(10,046) |
|
(8,517) |
|
|
|
Loans drawn down |
|
2,767 |
|
- |
|
|
|
|
|
_______ |
|
_______ |
|
|
|
Net cash inflow from financing activities |
|
|
72,177 |
|
19,439 |
|
|
|
|
|
_______ |
|
_______ |
|
|
Net (decrease)/increase in cash and cash equivalent |
|
|
(1,496) |
|
4,510 |
|
|
Cash and cash equivalents of the start of the year |
|
|
5,930 |
|
1,380 |
|
|
Effect of foreign exchange rate changes |
|
|
98 |
|
40 |
|
|
|
|
|
_______ |
|
_______ |
|
|
Cash and cash equivalents at the end of the year |
2,16 |
|
4,532 |
|
5,930 |
|
|
|
|
|
_______ |
|
_______ |
|
|
|
|
|
|
|
|
|
|
{A}Includes income from dividends of £13,821,000 gross (2011 - £11,230,000 gross) and interest income of £965,000 (2011 - £990,000). |
||||||
|
The accompanying notes are an integral part of the financial statements. |
||||||
9. NOTES TO THE FINANCIAL STATEMENTS
|
For the year ended 31 December 2012 |
|
|
|
|
|
1. |
Principal activity |
|
|
The Company is a closed-end investment company incorporated in Jersey, with its shares being listed on the London Stock Exchange. |
|
2. |
Accounting policies |
|
|
|
(a) |
Basis of preparation |
|
|
|
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the International Accounting Standards Board (IASB), and interpretations issued by the International Reporting Interpretations Committee of the IASB (IFRIC). All of the IFRS which took effect during the year were adopted by the Company and did not have a material impact on the financial results. |
|
|
|
|
|
|
|
The financial statements are prepared on a historical cost basis, except for investments that have been measured at fair value through profit or loss and financial liabilities that have been measured at amortised cost. |
|
|
|
|
|
|
|
The accounting policies which follow set out those policies which apply in preparing the financial statements for the year ended 31 December 2012. |
|
|
|
|
|
|
|
The financial statements are presented in sterling and all values are rounded to the nearest thousand (£'000) except when otherwise indicated. |
|
|
|
|
|
|
|
Where guidance set out in the Statement of Recommended Practice ("SORP") for investment trusts issued by the Association of Investment Companies ("AIC") is consistent with the requirement of IFRS, the Directors have sought to prepare the financial statements on a basis compliant with the recommendations of the SORP. |
|
|
|
|
|
|
|
Changes in accounting policy and disclosures |
|
|
|
At the date of authorisation of these financial statements, the following Standards and Interpretations were in issue but not yet effective: |
|
|
|
Amendments to IFRS 7 - Disclosures: Offsetting Financial Assets and Financial Liabilities (effective for annual periods beginning on or after 1 January 2013). |
|
|
|
Amendments to IFRS 10 - Definition of Investment Entity (early adoption permitted) (effective for annual periods beginning on or after 1 January 2014). |
|
|
|
IFRS 9 - Financial Instruments: Classification and Measurement (effective for annual periods beginning on or after 1 January 2015). |
|
|
|
IFRS 10 - Consolidated Financial Statements (early adoption permitted) (effective for annual periods beginning on or after 1 January 2013). |
|
|
|
IFRS 11 - Joint Arrangements (early adoption permitted) (effective for annual periods beginning on or after 1 January 2013). |
|
|
|
IFRS 12 - Disclosure of Interests in Other Entities (early adoption permitted) (effective for annual periods beginning on or after 1 January 2013). |
|
|
|
IFRS 13 - Fair Value Measurement (effective for annual periods beginning on or after 1 January 2013). |
|
|
|
Annual Improvements and Amendments to IFRS (2009-2011) - IFRS 1 First-time Adoption of International Financial Reporting Standards, IAS 1 Presentation of Financial Statements, IAS 16 Property, Plant and Equipment, IAS 32 Financial Instruments: Presentation, IAS 34 Interim Financial Reporting. (effective for annual periods beginning on or after 1 January 2013). |
|
|
|
Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance (Amendments to IFRS 10, IFRS 11 and IFRS 12) (effective for annual periods beginning on or after 1 January 2013). |
|
|
|
Amendments to IAS 19 - Employee Benefits (effective for annual periods on or after 1 January 2013). |
|
|
|
IAS 27 - Separate Financial Statements (early adoption permitted) (effective for annual periods beginning on or after 1 January 2013). |
|
|
|
IAS 28 - Investments in Associates and Joint Ventures (early adoption permitted) (effective 1 January 2013). |
|
|
|
Amendments to IAS 32 - Offsetting Financial Assets and Financial Liabilities (effective for annual periods beginning on or after 1 January 2014). |
|
|
|
Amendments to IAS 1 - Presentation of Items in Other Comprehensive Income (effective for annual periods beginning on or after 1 July 2012). |
|
|
|
|
|
|
|
The Directors do not anticipate that the adoption of these Standards and Interpretations in future periods will materially impact the Company's financial results in the period of initial application although there will be revised presentations to the Primary Financial Statements and additional disclosures. The Company intends to adopt the Standards in the reporting period when they become effective. |
|
|
|
|
|
|
(b) |
Income |
|
|
|
Dividends receivable on equity shares (other than special dividends) are brought into account on the ex-dividend date. Dividends receivable on equity shares where no ex-dividend date is quoted are brought into account when the Company's right to receive payment is established. Where the Company has elected to receive dividends in the form of additional shares rather than in cash, the amount of the cash dividend foregone is recognised as income. Special dividends are credited to capital or revenue according to their circumstances. Dividend revenue is presented gross of any non-recoverable withholding taxes, which are disclosed separately in the Statement of Comprehensive Income. |
|
|
|
|
|
|
|
The fixed returns on debt securities and non-equity shares are recognised using the effective interest rate method. |
|
|
|
|
|
|
|
Interest receivable from cash and short-term deposits is accrued to the end of the financial period. |
|
|
|
|
|
|
(c) |
Expenses |
|
|
|
All expenses, with the exception of interest expenses, which are recognised using the effective interest method, are accounted for on an accruals basis. Expenses are charged through the revenue column of the Statement of Comprehensive Income except as follows: |
|
|
|
expenses which are incidental to the acquisition or disposal of an investment are treated as capital and separately identified and disclosed in note 10; |
|
|
|
expenses (including share issue costs) are treated as capital where a connection with the maintenance or enhancement of the value of the investments can be demonstrated; and |
|
|
|
the Company charges 60% of investment management fees and finance costs to capital, in accordance with the Board's expected long term return in the form of capital gains and income respectively from the investment portfolio of the Company. |
|
|
|
|
|
|
(d) |
Taxation |
|
|
|
Profits arising in the Company for the year ended 31 December 2012 will be subject to Jersey income tax at the rate of 0% (2011 - 0%). |
|
|
|
|
|
|
|
However, in some jurisdictions, investment income and capital gains are subject to withholding tax deducted at the source of the income. The Company presents the withholding tax separately from the gross investment income in the Statement of Comprehensive Income. For the purpose of the Cash Flow Statement, cash inflows from investments are presented net of withholding taxes, when applicable. |
|
|
|
|
|
|
(e) |
Investments |
|
|
|
All investments have been designated upon initial recognition as fair value through profit or loss. This is done because all investments are considered to form part of a group of financial assets which is evaluated on a fair value basis, in accordance with the Company's documented investment strategy, and information about the grouping is provided internally on that basis. |
|
|
|
|
|
|
|
Purchases of investments are recognised on a trade date basis and designated upon initial recognition at fair value through profit or loss. Sales of assets are also recognised on a trade date basis. Proceeds are measured at fair value, which are regarded as the proceeds of sale less any transaction costs. |
|
|
|
|
|
|
|
The fair value of the financial assets is based on their quoted bid price at the reporting date, without deduction for any estimated future selling costs. Unquoted investments would be valued by the Directors using primary valuation techniques such as earnings multiples, recent transactions and net assets. |
|
|
|
|
|
|
|
Changes in the value of investments held at fair value through profit or loss and gains and losses on disposal are recognised in the Statement of Comprehensive Income as "Gains on financial assets at fair value through profit or loss". Also included within this caption are transaction costs in relation to the purchase or sale of investments, including the difference between the purchase price of an investment and its bid price at the date of purchase. |
|
|
|
|
|
|
(f) |
Cash and cash equivalents |
|
|
|
Cash comprises cash held at banks. Cash equivalents are short-term highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in values. |
|
|
|
|
|
|
|
For the purposes of the Cash Flow Statement, cash and cash equivalents comprise cash at bank net of any outstanding bank overdrafts. |
|
|
|
|
|
|
(g) |
Other receivables and payables |
|
|
|
Other receivables do not carry any interest and are short-term in nature and are accordingly stated at their recoverable amount. Other payables are non interest bearing and are stated at their payable amount. |
|
|
|
|
|
|
(h) |
Dividends payable |
|
|
|
Dividends are recognised in the financial statements in the period in which they are declared. |
|
|
|
|
|
|
(i) |
Nature and purpose of reserves |
|
|
|
Warrant reserve |
|
|
|
The Warrant reserve was created on the issue of 22,000,000 Warrants at the launch of the Company. Each Warrant issued entitles the holder to subscribe in cash for one Ordinary share on the terms contained in note 13. The reserve reflects the issue price of unexercised Warrants. |
|
|
|
|
|
|
|
Capital redemption reserve |
|
|
|
The capital redemption reserve arose when Ordinary shares were redeemed, at which point an amount equal to the par value of the Ordinary share capital was transferred from the Statement of Comprehensive Income to the capital redemption reserve. Following a law amendment in 2008, the Company is no longer required to transfer the par value of the Ordinary share capital. Although the transfer from the Statement of Comprehensive Income is no longer required, the amount remaining in the capital redemption reserve is not distributable in accordance with the undertaking provided by the Board in the launch Prospectus. |
|
|
|
|
|
|
|
Capital reserve |
|
|
|
This reserve reflects any gains or losses on investments realised in the period along with any increases and decreases in the fair value of investments held that have been recognised in the Statement of Comprehensive Income. |
|
|
|
|
|
|
|
Revenue reserve |
|
|
|
This reserve reflects all income and costs which are recognised in the revenue column of the Statement of Comprehensive Income. The revenue reserve represents the amount of the Company's reserves distributable by way of dividend. |
|
|
|
|
|
|
(j) |
Foreign currency |
|
|
|
Monetary assets and liabilities denominated in foreign currencies are converted into sterling at the rate of exchange ruling at the reporting date. The financial statements are presented in sterling, which is the Company's functional and presentation currency. The Company's performance is evaluated and its liquidity is managed in sterling. Therefore sterling is considered as the currency that most faithfully represents the economic effects of the underlying transactions, events and conditions. Transactions during the year involving foreign currencies are converted at the rate of exchange ruling at the transaction date. Gains or losses arising from a change in exchange rates subsequent to the date of a transaction are included as an exchange gain or loss in revenue or capital in the Statement of Comprehensive Income, depending on whether the gain or loss is of a revenue or capital nature. |
|
|
|
|
|
|
(k) |
Borrowings |
|
|
|
Monies borrowed to finance the investment objectives of the Company are stated at the amount of the net proceeds immediately after the issue plus cumulative finance costs less cumulative payments made in respect of the debt. The finance cost of such borrowings is allocated to years over the term of the debt at a constant rate on the carrying amount and, as per the Prospectus, is charged 40% to revenue and 60% to capital reserves to reflect the Company's investment policy and prospective income and capital growth. |
|
|
|
|
|
|
|
Borrowings are measured at amortised cost using the effective interest rate method. |
|
|
|
|
|
|
(l) |
Share capital |
|
|
|
The Company's Ordinary shares are classified as equity as the Company has full discretion on repurchasing the shares and on dividend distributions. |
|
|
|
|
|
|
|
Issuance, acquisition and resale of Ordinary shares are accounted for as equity transactions. Upon issuance of shares, the consideration received is included in equity. |
|
|
|
|
|
|
|
Transaction costs incurred by the Company in acquiring or selling its own equity instruments are accounted for as a deduction from equity to the extent that they are incremental costs directly attributable to the equity transaction that otherwise would have been avoided. |
|
|
|
|
|
|
|
Own equity instruments which are acquired (treasury shares) are deducted from equity and accounted for at amounts equal to the consideration paid, including any directly attributable incremental costs. |
|
|
|
|
|
|
|
No gain or loss is recognised in the Statement of Comprehensive Income on the purchase, sale issuance or cancellation of the Company's own instruments. |
|
|
|
|
|
|
|
In accordance with paragraph 11 of IAS 32 (Financial Instruments: Presentation), C shares are classified as a liability prior to conversion due to the inherent variability of the number of Ordinary shares attributable to C shareholders on conversion. |
|
3. |
Segment 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. |
||
|
|
|
||
|
|
The following table analyses the Company's operating income per geographical location. The basis for attributing the operating income is the place of incorporation of the instrument's counterparty. |
||
|
|
|
||
|
|
|
Year ended |
Year ended |
|
|
|
31 December 2012 |
31 December 2011 |
|
|
|
£'000 |
£'000 |
|
|
Asia Pacific region |
14,321 |
11,492 |
|
|
United Kingdom |
731 |
386 |
|
|
|
_______ |
_______ |
|
|
|
15,052 |
11,878 |
|
|
|
_______ |
_______ |
|
|
|
Year ended |
Year ended |
|
|
|
31 December 2012 |
31 December 2011 |
|
4. |
Income |
£'000 |
£'000 |
|
|
Income from investments |
|
|
|
|
Overseas dividends |
13,522 |
10,352 |
|
|
Franked income |
709 |
385 |
|
|
Stock dividends |
- |
150 |
|
|
|
_______ |
_______ |
|
|
|
14,231 |
10,887 |
|
|
|
_______ |
_______ |
|
|
Interest income |
|
|
|
|
Bond interest |
799 |
990 |
|
|
Deposit interest |
22 |
1 |
|
|
|
_______ |
_______ |
|
|
|
821 |
991 |
|
|
|
_______ |
_______ |
|
|
Total income |
15,052 |
11,878 |
|
|
|
_______ |
_______ |
|
|
|
Year ended |
Year ended |
||||
|
|
|
31 December 2012 |
31 December 2011 |
||||
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
5. |
Investment management fee |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Investment management fee |
1,127 |
1,691 |
2,818 |
859 |
1,288 |
2,147 |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
|
|
|
|
|
|
|
|
|
|
The Company has an agreement with Aberdeen Private Wealth Management Limited (APWM) for the provision of management services. This agreement has been sub-delegated to Aberdeen Asset Management Asia Limited (AAM Asia). |
||||||
|
|
|
||||||
|
|
During the year the management fee was payable monthly in arrears and was based on an annual amount of 1% of the net asset value of the Company valued monthly. The balance due to APWM at the year end was £309,000 (2011 - £192,000). The investment management fees are charged 40% to revenue and 60% to capital. |
||||||
|
|
|
Year ended |
Year ended |
||||
|
|
|
31 December 2012 |
31 December 2011 |
||||
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
6. |
Other operating expenses |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Directors' fees |
142 |
- |
142 |
139 |
- |
139 |
|
|
Marketing contribution |
192 |
- |
192 |
154 |
- |
154 |
|
|
Auditor's remuneration: |
|
|
|
|
|
|
|
|
statutory audit |
23 |
- |
23 |
22 |
- |
22 |
|
|
interim accounts review |
5 |
- |
5 |
5 |
- |
5 |
|
|
Custodian charges |
109 |
- |
109 |
86 |
- |
86 |
|
|
Secretarial and administration fee |
123 |
- |
123 |
118 |
- |
118 |
|
|
Other |
233 |
3 |
236 |
317 |
4 |
321 |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
|
|
827 |
3 |
830 |
841 |
4 |
845 |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
|
|
|
|
|
|
|
|
|
|
The Company has an agreement with Aberdeen Asset Managers Limited (AAM) for the provision of marketing services in relation to the Company's participation in the Aberdeen Investment Trust share plan and ISA. The total fees paid are based on an annual rate of £207,000 (2011 - £161,000). A balance of £52,000 (2011 - £nil) was payable to AAM at the year end. |
||||||
|
|
|
||||||
|
|
In addition, Aberdeen Private Wealth Management Limited (APWM) is entitled to an annual company secretarial and administration fee of £123,000 (2011 - £118,000), which increases annually in line with any increases in the Retail Price Index. A balance of £31,000 (2011 - £30,000) was payable to APWM at the year end. |
||||||
|
|
|
Year ended |
Year ended |
||||
|
|
|
31 December 2012 |
31 December 2011 |
||||
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
7. |
Finance costs |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
On bank loans |
88 |
133 |
221 |
75 |
112 |
187 |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
|
|
|
|
|
|
|
|
|
|
Finance costs are charged 40% to revenue and 60% to capital as disclosed in the accounting policies. |
||||||
|
|
|
Year ended |
Year ended |
||
|
|
|
31 December 2012 |
31 December 2011 |
||
|
8. |
Dividends on Ordinary equity shares |
£'000 |
£'000 |
||
|
|
Amounts recognised as distributions to equity holders in the year: |
|
|
||
|
|
Fourth interim dividend for 2011 - 2.25p per Ordinary share (2010 - 2.25p) |
3,138 |
2,656 |
||
|
|
First interim dividend for 2012 - 1.55p per Ordinary share (2011 - 1.5p) |
2,241 |
1,782 |
||
|
|
Second interim dividend for 2012 - 1.55p per Ordinary share (2011 - 1.5p) |
2,324 |
2,010 |
||
|
|
Third interim dividend for 2012 - 1.55p per Ordinary share (2011 - 1.5p) |
2,343 |
2,069 |
||
|
|
|
_______ |
_______ |
||
|
|
|
10,046 |
8,517 |
||
|
|
|
_______ |
_______ |
||
|
|
|
|
|
||
|
|
The fourth interim dividend for 2012, amounting to £3,780,000 (2011 - fourth interim dividend of £3,138,000), has not been included as a liability in these financial statements as it was announced and paid after 31 December 2012. |
||||
|
|
|
||||
|
|
The table below sets out the total dividends paid in respect of the financial year. The revenue available for distribution by way of dividend for the year is £12,430,000 (2011 - £9,644,000). |
||||
|
|
|
||||
|
|
|
2012 |
2011 |
||
|
|
|
£'000 |
£'000 |
||
|
|
First interim dividend for 2012 - 1.55p per Ordinary share (2011 - 1.5p) |
2,241 |
1,782 |
||
|
|
Second interim dividend for 2012 - 1.55p per Ordinary share (2011 - 1.5p) |
2,324 |
2,010 |
||
|
|
Third interim dividend for 2012 - 1.55p per Ordinary share (2011 - 1.5p) |
2,343 |
2,069 |
||
|
|
Fourth interim dividend for 2012 - 2.50p per Ordinary share (2011 - 2.25p) |
3,780 |
3,138 |
||
|
|
|
_______ |
_______ |
||
|
|
|
10,688 |
8,999 |
||
|
|
|
_______ |
_______ |
||
|
|
|
|
|
||
|
|
No C share dividends have been paid or declared. |
|
|
||
|
9. |
Earnings per share |
||||||
|
|
Ordinary shares |
||||||
|
|
The earnings per Ordinary share is based on the net profit after taxation of £69,004,000 (2011 - profit of £4,353,000) and on 147,219,055 (2011 - 129,577,283) Ordinary shares, being the weighted average number of Ordinary shares in issue during the year. |
||||||
|
|
|
||||||
|
|
The earnings per Ordinary share detailed above can be further analysed between revenue and capital as follows: |
||||||
|
|
|
||||||
|
|
|
Year ended |
Year ended |
||||
|
|
|
31 December 2012 |
31 December 2011 |
||||
|
|
Basic |
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
|
Net profit (£'000) |
12,240 |
56,764 |
69,004 |
9,644 |
(5,291) |
4,353 |
|
|
Weighted average number of Ordinary shares in issue |
|
|
147,219,055 |
|
|
129,577,283 |
|
|
Return per Ordinary share (pence) |
8.31 |
38.56 |
46.87 |
7.44 |
(4.08) |
3.36 |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
|
Diluted |
|
|
|
|
|
|
|
|
Net profit (£'000) |
12,240 |
56,764 |
69,004 |
9,644 |
(5,291) |
4,353 |
|
|
Weighted average number of Ordinary shares in issue if Warrants converted |
|
|
149,100,417 |
|
|
132,885,550 |
|
|
Return per Ordinary share (pence) |
8.21 |
38.07 |
46.28 |
7.26 |
(3.98) |
3.28 |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
|
|
||||||
|
|
The calculation of the diluted earnings per Ordinary shares is based on the average traded share price over the period. The calculations indicate that the exercise of Warrants would result in an increase in the weighted average number of Ordinary shares of 1,881,362 to 149,100,417 Ordinary shares (2011 - increase in the weighted average number of Ordinary shares of 3,308,267 to 132,885,550 Ordinary shares). |
||||||
|
|
|
||||||
|
|
C shares |
||||||
|
|
The earnings per C share is based on the net profit after taxation of £2,604,000 (2011 - £nil) and on 60,000,000 (2011 - nil) C shares, being the weighted average number of C shares in issue during the year. |
||||||
|
|
|
||||||
|
|
The earnings per C share detailed above can be further analysed between revenue and capital as follows: |
||||||
|
|
|
||||||
|
|
|
Year ended |
Year ended |
||||
|
|
|
31 December 2012 |
31 December 2011 |
||||
|
|
|
Revenue |
Capital |
Total |
Revenue |
Capital |
Total |
|
|
Net profit (£'000) |
190 |
2,414 |
2,604 |
n/a |
n/a |
n/a |
|
|
Weighted average number of C shares in issue |
|
|
60,000,000 |
|
|
n/a |
|
|
Return per C share (pence) |
0.32 |
4.02 |
4.34 |
n/a |
n/a |
n/a |
|
|
|
_______ |
_______ |
_______ |
_______ |
_______ |
_______ |
|
|
|
|
|
|
|
|
|
|
|
There was no dilution to the earnings per C share at 31 December 2012 as there was no potentially dilutive C shares in issue at that date. |
||||||
|
|
|
Year ended |
Year ended |
|
|
|
31 December |
31 December |
|
10. |
Investments designated at fair value through profit or loss |
£'000 |
£'000 |
|
|
Opening valuation |
236,609 |
216,933 |
|
|
Movements in the year: |
|
|
|
|
Purchases at cost |
134,834 |
48,529 |
|
|
Sales - proceeds |
(50,089) |
(24,962) |
|
|
Sales - realised gains |
21,865 |
11,679 |
|
|
Increase/(decrease) in investment holdings fair value |
38,486 |
(15,570) |
|
|
|
_________ |
_________ |
|
|
Closing valuation at 31 December 2012 |
381,705 |
236,609 |
|
|
|
_________ |
_________ |
|
|
|
|
|
|
|
|
Year ended |
Year ended |
|
|
|
31 December |
31 December 2011 |
|
|
|
£'000 |
£'000 |
|
|
Closing book cost |
286,760 |
180,150 |
|
|
Closing investment holdings fair value gains |
94,945 |
56,459 |
|
|
|
_________ |
_________ |
|
|
|
381,705 |
236,609 |
|
|
|
_________ |
_________ |
|
|
|
|
|
|
|
The portfolio valuation |
£'000 |
£'000 |
|
|
Listed on recognised stock exchanges at market valuation: |
|
|
|
|
Equities - UK |
10,988 |
7,059 |
|
|
Equities - overseas |
361,989 |
217,147 |
|
|
Bonds - overseas |
8,728 |
12,403 |
|
|
|
_________ |
_________ |
|
|
Total |
381,705 |
236,609 |
|
|
|
_________ |
_________ |
|
|
|
|
|
|
|
Gains/(losses) on held-at-fair-value investments |
£'000 |
£'000 |
|
|
Realised gains on sales of investments |
21,865 |
11,679 |
|
|
Increase/(decrease) in investment holdings fair value |
38,486 |
(15,570) |
|
|
|
_________ |
_________ |
|
|
|
60,351 |
(3,891) |
|
|
|
_________ |
_________ |
|
|
|
|
|
|
|
All investments are categorised as held at fair value through profit or loss. |
||
|
|
|
||
|
|
Transaction costs |
||
|
|
During the year expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. These have been expensed through capital and are included within gains/(losses) on financial assets designated at fair value through profit or loss in the Statement of Comprehensive Income. The total costs were as follows: |
||
|
|
|
|
|
|
|
|
Year ended |
Year ended |
|
|
|
31 December 2012 |
31 December 2011 |
|
|
|
£'000 |
£'000 |
|
|
Purchases |
329 |
118 |
|
|
Sales |
93 |
89 |
|
|
|
_________ |
_________ |
|
|
|
422 |
207 |
|
|
|
_________ |
_________ |
|
|
|
2012 |
2011 |
|
11. |
Debtors: amounts falling due within one year |
£'000 |
£'000 |
|
|
Prepayments and accrued income |
884 |
738 |
|
|
|
_________ |
_________ |
|
|
|
|
|
|
|
None of the above assets are past their due date or impaired. |
|
|
|
|
|
|
2012 |
2011 |
|
12. |
Creditors: amounts falling due within one year |
£'000 |
£'000 |
|
|
|
(a) |
Bank loans |
13,268 |
11,000 |
|
|
|
|
_________ |
_________ |
|
|
|
|
|
|
|
|
|
At the year end, the Company's secured bank loans of HK$81,842,000 (2011 - HK$81,842,000) and US$11,008,000 (2011 - US$6,558,000) equivalent to £6,496,000 (2011 - £6,780,000) and £6,772,000 (2011 - £4,220,000) respectively were drawn down from the £15,000,000 facility with Scotiabank Europe PLC at fixed interest rates of 1.720% (2011 - 1.532%) and 1.609% (2011 - 1.691%) respectively. |
||
|
|
|
|
||
|
|
|
The bank loans outstanding at 31 December 2012 are valued at the closing exchange rate at the year end, resulting in a cumulative foreign exchange gain of £259,000 (2011 - loss of £98,000) against the original book cost of these loans. |
||
|
|
|
|
|
|
|
|
|
|
2012 |
2011 |
|
|
(b) |
Other payables |
£'000 |
£'000 |
|
|
|
Amounts due to brokers |
364 |
- |
|
|
|
Other amounts due |
525 |
331 |
|
|
|
|
_________ |
_________ |
|
|
|
|
889 |
331 |
|
|
|
|
_________ |
_________ |
|
|
|
2012 |
2011 |
||||||
|
13. |
Stated capital and C shares |
Number |
£'000 |
Number |
£'000 |
||||
|
|
Ordinary shares of no par value |
|
|
|
|
||||
|
|
Authorised |
Unlimited |
Unlimited |
Unlimited |
Unlimited |
||||
|
|
|
|
|
|
|
||||
|
|
Issued and fully paid |
|
|
|
|
||||
|
|
Balance brought forward |
139,083,871 |
139,084 |
118,035,062 |
118,035 |
||||
|
|
Shares issued in the year |
9,517,388 |
9,517 |
6,250,000 |
6,250 |
||||
|
|
Warrants exercised |
2,581,087 |
2,581 |
14,798,809 |
14,799 |
||||
|
|
|
_________ |
_________ |
_________ |
_________ |
||||
|
|
At 31 December 2012 |
151,182,346 |
151,182 |
139,083,871 |
139,084 |
||||
|
|
|
_________ |
_________ |
_________ |
_________ |
||||
|
|
|
|
|
|
|
||||
|
|
During the year 9,517,388 (2011 - 6,250,000) Ordinary shares were issued by the Company at a total consideration received, including transaction costs, of £17,286,000 (2011 - receipt of £10,197,000). |
||||||||
|
|
|
||||||||
|
|
The Ordinary shares give shareholders the entitlement to all of the capital growth in the Company's assets and to all the income from the Company that is resolved to be distributed. |
||||||||
|
|
|
||||||||
|
|
During the year 2,581,087 (2011 - 14,798,809) Warrants were exercised into Ordinary shares at a total consideration received of £3,097,000 (2011 - £17,759,000). At 31 December 2012 there were 3,574,043 (2011 - 6,155,130) Warrants in issue. The warrantholders are entitled to subscribe in cash for one Ordinary share at 120p on the subscription date, which is the twentieth business day after the dispatch to Ordinary shareholders of the Company's Annual Report and Accounts or Half-Yearly report for each year ending on the twentieth business day after the dispatch to Ordinary shareholders of the Company's Annual Report and Accounts for the year ending 31 December 2012. |
||||||||
|
|
|
||||||||
|
|
Following the share issues and warrant exercise 151,182,346 (2011 - 139,083,871) Ordinary shares remain in issue. Further details of the share issues are contained in the Annual Report. |
||||||||
|
|
|
||||||||
|
|
C shares |
||||||||
|
|
Following a Placing and Offer for Subscription of C shares, the Company issued 60,000,000 C shares which were admitted to the Official List, and commenced trading on the main market of the London Stock Exchange on 16 November 2012. |
||||||||
|
|
|
||||||||
|
|
|
2012 |
2011 |
||||||
|
|
|
Number |
£'000 |
Number |
£'000 |
||||
|
|
Issued and fully paid |
|
|
|
|
||||
|
|
Shares issued in the year |
60,000,000 |
60,000 |
n/a |
n/a |
||||
|
|
Issue expenses |
- |
(927) |
n/a |
n/a |
||||
|
|
|
_________ |
_________ |
_________ |
_________ |
||||
|
|
At 31 December 2012 |
60,000,000 |
59,073 |
n/a |
n/a |
||||
|
|
|
_________ |
_________ |
_________ |
_________ |
||||
|
|
|
|
|
|
|
||||
|
|
The value of the C shares as at 31 December was £61,677,000. This comprised the issued and fully paid C shares of £59,073,000 referred to in the table above plus the profit for the year of £2,604,000 arising from investment holdings gains on investments held at fair value. For details of the conversion please refer to note 21. Upon extinguishment of the C shares liability and conversion to Ordinary shares an adjustment to stated capital will arise representing the C shareholders' allocation of realised gains or losses on investments, unrealised gains or losses on investments and investment related foreign exchange movements. |
||||||||
|
|
|
||||||||
|
|
Voting and other rights |
||||||||
|
|
In accordance with the Articles of Association of the Company, on a show of hands, every member (or duly appointed proxy) present at a general meeting of the Company has one vote; and, on a poll, every member present in person or by proxy shall have one vote for each Ordinary share held. In ordinary circumstances warrantholders do not have the right to attend or vote at General Meetings of the Company. Holders of C shares are entitled to attend and vote at all general meetings of the Company and, on a poll, to one vote for each C share held. |
||||||||
|
|
|
||||||||
|
|
The Ordinary shares carry the right to receive all dividends declared by the Company or the Directors, subject to the rights of any C shares in issue. C shares carry the right to receive all dividends resolved by the Directors to be paid out of the pool of assets attributable to those C shares. |
||||||||
|
|
|
||||||||
|
|
On a winding-up, provided the Company has satisfied all of its liabilities and subject to the rights conferred by any Warrants and C shares in issue at that time to participate in the winding-up, holders of Ordinary shares are entitled to all of the surplus assets of the Company. Holders of C shares are entitled to any surplus assets of the Company attributable to those C shares. |
||||||||
|
|
|
||||||||
|
|
Each of the Company's Warrants confers the right to subscribe in cash for one Ordinary share at a price of 120p on the twentieth business day after despatch of the Company's Annual or Half-Yearly Reports each year ending on the twentieth business day after despatch of the Annual Report for the year ending 31 December 2012. |
||||||||
|
|
|
2012 |
2011 |
|
14. |
Retained earnings |
£'000 |
£'000 |
|
|
Capital reserve |
|
|
|
|
At 1 January 2012 |
82,523 |
79,427 |
|
|
Loans - movement in unrealised currency gain |
358 |
(83) |
|
|
Currency gain |
165 |
35 |
|
|
Movement in unrealised fair value |
36,101 |
(15,570) |
|
|
Gain on realisation of investments |
21,865 |
11,679 |
|
|
Capital dividends |
55 |
52 |
|
|
Costs charged to capital |
(1,780) |
(1,404) |
|
|
Issue of own shares |
7,769 |
3,947 |
|
|
Warrant exercise |
774 |
4,440 |
|
|
|
_________ |
_________ |
|
|
At 31 December 2012 |
147,830 |
82,523 |
|
|
|
_________ |
_________ |
|
|
Revenue reserve |
|
|
|
|
At 1 January 2012 |
8,164 |
7,037 |
|
|
Revenue |
12,240 |
9,644 |
|
|
Dividends paid |
(10,046) |
(8,517) |
|
|
|
_________ |
_________ |
|
|
At 31 December 2012 |
10,358 |
8,164 |
|
|
|
_________ |
_________ |
|
15. |
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 year end calculated in accordance with the Articles of Association were as follows: |
||||
|
|
|
|
|
|
|
|
|
|
Net asset value |
Net asset values |
Net asset value |
Net asset values |
|
|
|
per share |
attributable |
per share |
attributable |
|
|
|
2012 |
2012 |
2011 |
2011 |
|
|
Basic |
p |
£'000 |
p |
£'000 |
|
|
Ordinary shares |
205.90 |
311,287 |
166.77 |
231,946 |
|
|
|
_________ |
_________ |
_________ |
_________ |
|
|
|
||||
|
|
The basic net asset value per Ordinary share is based on 151,182,346 (2011 - 139,083,871) Ordinary shares, being the number of Ordinary shares in issue at the year end. |
||||
|
|
|
|
|
|
|
|
|
|
Net asset value |
Net asset values |
Net asset value |
Net asset values |
|
|
|
per share |
attributable |
per share |
attributable |
|
|
|
2012 |
2012 |
2011 |
2011 |
|
|
Diluted |
p |
£'000 |
p |
£'000 |
|
|
Ordinary shares |
203.92 |
315,576 |
164.78 |
239,332 |
|
|
|
_________ |
_________ |
_________ |
_________ |
|
|
|
|
|
|
|
|
|
The calculation of the diluted net asset value per Ordinary share is based on the total number of Ordinary shares in issue at the year end and on the assumption that those Warrants which are not exercised at the year end, amounting to 3,574,043 Warrants as at 31 December 2012 (31 December 2011 - 6,155,130) were exercised on the first day of the financial year at 120p per share, giving a total of 154,756,389 Ordinary shares (2011 - 145,239,001). |
||||
|
|
|
||||
|
|
C shares |
||||
|
|
The basic net asset value per C share and the net asset values attributable to C share shareholders at the year end calculated in accordance with the Articles of Association were as follows: |
||||
|
|
|
|
|
|
|
|
|
|
Net asset value |
Net asset values |
Net asset value |
Net asset values |
|
|
|
per share |
attributable |
per share |
attributable |
|
|
|
2012 |
2012 |
2011 |
2011 |
|
|
|
p |
£'000 |
p |
£'000 |
|
|
C shares |
102.80 |
61,677 |
n/a |
n/a |
|
|
|
_________ |
_________ |
_________ |
_________ |
|
|
|
|
|
|
|
|
|
The net asset value per C share is based on 60,000,000 (2011 - nil) C shares, being the number of C shares in issue at the year end. |
||||
|
16. |
Financial instruments |
|||||
|
|
The Company's financial instruments comprise securities, other investments, cash balances and bank loans. |
|||||
|
|
|
|||||
|
|
The main risks arising from the Company's financial instruments are (i) market risk (comprising interest rate risk, currency risk and equity price risk), (ii) liquidity risk, (iii) credit risk and (iv) gearing risk. |
|||||
|
|
|
|||||
|
|
The Board regularly reviews and agrees policies for managing each of these risks. The Manager's policies for managing each of these risks are summarised below and have been applied throughout the year. The numerical disclosures exclude short-term debtors and creditors. |
|||||
|
|
|
|||||
|
|
(i) Market risk |
|||||
|
|
The fair value or future cash flows of a financial instrument held by the Company may fluctuate because of changes in market prices. This market risk comprises three elements - interest rate risk, currency risk and equity price risk. |
|||||
|
|
|
|||||
|
|
Interest rate risk |
|||||
|
|
Interest rate movements may affect: |
|||||
|
|
- the fair value of the investments in fixed interest rate securities; |
|||||
|
|
- the level of income receivable on cash deposits; |
|||||
|
|
- interest payable on the Company's variable rate borrowings. |
|||||
|
|
|
|||||
|
|
Financial assets |
|||||
|
|
Although the majority of the Company's financial assets comprise equity shares which neither pay interest nor have a stated maturity date, at the year end the Company had a holding in a fixed rate overseas corporate bond, Yanlord Land Group, of £8,728,000 (2011 - Indonesian Government Bond, in the form of a Currency Loan Note issued by Deutsche Bank, valued at £12,403,000). Bond prices are determined by market perception as to the appropriate level of yields given the economic background. Key determinants include economic growth prospects, inflation, the Government's fiscal position, short-term interest rates and international market comparisons. The Investment Manager takes all these factors into account when making any investment decisions as well as considering the financial standing of the potential investee entity. |
|||||
|
|
|
|||||
|
|
Returns from bonds are fixed at the time of purchase, as the fixed coupon payments are known, as are the final redemption proceeds. This means that if a bond is held until its redemption date, the total return achieved is unaltered from its purchase date. However, over the life of a bond the market price at any given time will depend on the market environment at that time. Therefore, a bond sold before its redemption date is likely to have a different price to its purchase level and a profit or loss may be incurred. |
|||||
|
|
|
|||||
|
|
Financial liabilities |
|||||
|
|
The Company primarily finances its operations through use of equity, retained profits and bank borrowings. On 20 March 2012 the credit facility for £15 million was extended until 20 March 2014 and details of the terms and conditions of the loan are disclosed in note 12. At the year end the Company drawdowns from the facility amounted to HK$81,842,000 (2011 - HK$81,842,000), (equivalent to £6,496,000 at 31 December 2012; 2011 - £6,780,000) at an all-in rate of 1.720% (2011 - 1.532%) per annum and US$11,008,000 (2011 - US$6,558,000), (equivalent to £6,772,000 at 31 December 2012; 2011 - £4,220,000) at an all-in rate of 1.609% (2011 - 1.691%) per annum. Both tranches are secured. Interest is due on both tranches at the maturity date, being 25 January 2013. The loans are included in creditors falling due within one year. |
|||||
|
|
|
|||||
|
|
The Board actively monitors its bank borrowings. A decision on whether to roll over its existing borrowings will be made prior to their maturity dates, taking into account the Company's policy of not having any fixed, long-term borrowings. |
|||||
|
|
|
|||||
|
|
The interest rate profile of the Company (excluding short term debtors and creditors as stated previously) was as follows: |
|||||
|
|
|
|||||
|
|
|
Weighted average |
|
|
|
|
|
|
|
period for which |
Weighted average |
|
|
|
|
|
|
rate is fixed |
interest rate |
rate |
rate |
|
|
|
At 31 December 2012 |
Years |
% |
£'000 |
£'000 |
|
|
|
Assets |
|
|
|
|
|
|
|
Chinese Overseas Corporate Bond |
5.24 |
10.63 |
- |
8,728 |
|
|
|
Cash at bank - Sterling |
- |
- |
4,241 |
- |
|
|
|
Cash at bank - Australian Dollar |
- |
- |
3 |
- |
|
|
|
Cash at bank - Malaysian Ringitt |
- |
- |
93 |
- |
|
|
|
Cash at bank - Japanese Yen |
- |
- |
113 |
- |
|
|
|
Cash at bank - Singapore Dollar |
- |
- |
40 |
- |
|
|
|
Cash at bank - Taiwan Dollar |
- |
- |
34 |
- |
|
|
|
Cash at bank - US Dollars |
- |
- |
8 |
- |
|
|
|
|
_________ |
_________ |
________ |
________ |
|
|
|
|
|
|
4,532 |
8,728 |
|
|
|
|
_________ |
_________ |
________ |
________ |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average |
|
|
|
|
|
|
|
period for which |
Weighted average |
|
|
|
|
|
|
rate is fixed |
interest rate |
rate |
rate |
|
|
|
|
Years |
% |
£'000 |
£'000 |
|
|
|
Liabilities |
|
|
|
|
|
|
|
Bank loan - Hong Kong Dollars |
0.07 |
1.72 |
- |
(6,496) |
|
|
|
Bank loan - US Dollars |
0.07 |
1.61 |
- |
(6,772) |
|
|
|
|
_________ |
_________ |
________ |
________ |
|
|
|
|
|
|
- |
(13,268) |
|
|
|
|
_________ |
_________ |
________ |
________ |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average |
|
|
|
|
|
|
|
period for which |
Weighted average |
|
|
|
|
|
|
rate is fixed |
interest rate |
rate |
rate |
|
|
|
At 31 December 2011 |
Years |
% |
£'000 |
£'000 |
|
|
|
Assets |
|
|
|
|
|
|
|
Indonesian Government Bond |
5.56 |
10.00 |
- |
12,403 |
|
|
|
Cash at bank - Sterling |
- |
- |
4,012 |
- |
|
|
|
Cash at bank - Taiwan Dollar |
- |
- |
1,918 |
- |
|
|
|
|
_________ |
_________ |
________ |
________ |
|
|
|
|
|
|
5,930 |
12,403 |
|
|
|
|
_________ |
_________ |
________ |
________ |
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average |
|
|
|
|
|
|
|
period for which |
Weighted average |
|
|
|
|
|
|
rate is fixed |
interest rate |
rate |
rate |
|
|
|
|
Years |
% |
£'000 |
£'000 |
|
|
|
Liabilities |
|
|
|
|
|
|
|
Bank loan - Hong Kong Dollars |
0.22 |
1.53 |
- |
(6,780) |
|
|
|
Bank loan - US Dollars |
0.22 |
1.69 |
- |
(4,220) |
|
|
|
|
_________ |
_________ |
________ |
________ |
|
|
|
|
|
|
- |
(11,000) |
|
|
|
|
_________ |
_________ |
________ |
________ |
|
|
|
|
|
|
|
|
|
|
|
The weighted average interest rate is based on the current yield of each asset, weighted by its market value. The weighted average interest rate on bank loans is based on the interest rate payable, weighted by the total value of the loans. |
|
||||
|
|
The floating rate assets consist of cash deposits on call earning interest at prevailing market rates. |
|
||||
|
|
All financial liabilities are measured at amortised cost using the effective interest rate method. |
|
||||
|
|
|
|
||||
|
|
Interest rate sensitivity |
|
||||
|
|
The sensitivity analyses demonstrate the sensitivity of the Company's profit/(loss) for the year to a reasonably possible change in interest rates, with all other variables held constant. |
|
||||
|
|
|
|
||||
|
|
The sensitivity of the profit/(loss) for the year is the effect of the assumed change in interest rates on: |
|
||||
|
|
· the net interest income for one year, based on the floating rate financial assets held at the Balance Sheet date; and |
|
||||
|
|
· changes in fair value of investments for the year, based on revaluing fixed rate financial assets at the Balance Sheet date. |
|
||||
|
|
|
|
||||
|
|
If interest rates had been 100 basis points higher or lower and all other variables were held constant, the Company's: |
|
||||
|
|
· profit for the year ended 31 December 2012 would decrease / increase by £nil (2011 - decrease / increase by £73,000). This is attributable to the Company's exposure to interest rates on its floating rate cash balances, fixed interest securities and bank loans. |
|
||||
|
|
|
|
||||
|
|
The Company holds no financial instruments that will have an equity reserve impact. |
|
||||
|
|
|
|
||||
|
|
In the opinion of the Directors, the above sensitivity analyses are not representative of the year as a whole, since the level of exposure changes frequently as part of the interest rate risk management process used to meet the Company's objectives. |
|
||||
|
|
Foreign currency risk |
|||||||
|
|
A significant proportion of the Company's investment portfolio is invested in overseas securities and the Balance Sheet can be significantly affected by movements in foreign exchange rates. It is not the Company's policy to hedge this risk on a continuing basis. All of the Company's borrowings, as detailed in note 12, are in foreign currency as at 31 December 2012. |
|||||||
|
|
|
|||||||
|
|
The revenue account is subject to currency fluctuation arising on overseas income. The Company does not hedge this currency risk. |
|||||||
|
|
|
|||||||
|
|
The fair values of the Company's monetary items that have foreign currency exposure at 31 December are shown below. Where the Company's equity investments (which are non monetary items) are priced in a foreign currency, they have been included within the equity price risk sensitivity analysis so as to show the overall level of exposure. |
|||||||
|
|
|
|||||||
|
|
|
31 December 2012 |
31 December 2011 |
|||||
|
|
|
|
Net |
Total |
|
Net |
Total |
|
|
|
|
Equity |
monetary |
currency |
Equity |
monetary |
currency |
|
|
|
|
investments |
assets |
exposure |
investments |
assets |
exposure |
|
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
Australian Dollar |
68,626 |
3 |
68,629 |
45,659 |
- |
45,659 |
|
|
|
Hong Kong Dollar |
55,349 |
(6,496) |
48,853 |
35,675 |
(6,781) |
28,894 |
|
|
|
Japanese Yen |
27,258 |
113 |
27,371 |
5,637 |
- |
5,637 |
|
|
|
Malaysian Ringgit |
31,978 |
93 |
32,071 |
34,447 |
- |
34,447 |
|
|
|
Singapore Dollar |
103,744 |
40 |
103,784 |
49,566 |
- |
49,566 |
|
|
|
Taiwanese Dollar |
24,046 |
34 |
24,080 |
21,661 |
1,918 |
23,579 |
|
|
|
Thailand Baht |
50,988 |
- |
50,988 |
24,500 |
- |
24,500 |
|
|
|
US Dollar |
- |
1,964 |
1,964 |
- |
8,184 |
8,184 |
|
|
|
|
________ |
________ |
_______ |
_______ |
________ |
_________ |
|
|
|
Total |
361,989 |
(4,249) |
357,740 |
217,145 |
3,321 |
220,466 |
|
|
|
|
________ |
________ |
_______ |
_______ |
________ |
_________ |
|
|
|
|
|
|
|
|
|
|
|
|
|
The above year end amounts are not representative of the exposure to risk during the year, because the levels of monetary foreign currency exposure change significantly throughout the year. |
|||||||
|
|
|
|||||||
|
|
Foreign currency sensitivity |
|||||||
|
|
The following table details the Company's sensitivity to a 10% increase and decrease in sterling against the foreign currencies in which the Company has exposure. The sensitivity analysis includes foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates. |
|||||||
|
|
|
|
|
|||||
|
|
|
2012 |
2011 |
|||||
|
|
|
£'000 |
£'000 |
|||||
|
|
Australian Dollar |
6,863 |
4,566 |
|||||
|
|
Hong Kong Dollar |
4,885 |
2,889 |
|||||
|
|
Japanese Yen |
2,737 |
564 |
|||||
|
|
Malaysian Ringgit |
3,207 |
3,445 |
|||||
|
|
Singapore Dollar |
10,378 |
4,957 |
|||||
|
|
Taiwanese Dollar |
2,408 |
2,358 |
|||||
|
|
Thailand Baht |
5,099 |
2,450 |
|||||
|
|
US Dollar |
196 |
818 |
|||||
|
|
|
_________ |
_________ |
|||||
|
|
Total |
35,774 |
22,047 |
|||||
|
|
|
_________ |
_________ |
|||||
|
|
Equity price risk |
|||||||||
|
|
Equity price risk (ie changes in market prices other than those arising from interest rate or currency risk) may affect the value of the Company's quoted equity investments. |
|||||||||
|
|
|
|||||||||
|
|
Management of the equity risk |
|||||||||
|
|
It is the Board's policy to hold an appropriate spread of investments in the portfolio in order to reduce the risk arising from factors specific to a particular country or sector. The allocation of assets to international markets and the stock selection process, both act to reduce market risk. The Manager actively monitors market prices throughout the year and reports to the Board, which meets regularly in order to review investment strategy. The investments held by the Company are listed on various stock exchanges worldwide. |
|||||||||
|
|
|
|||||||||
|
|
Concentration of exposure to equity price risks |
|||||||||
|
|
A geographic analysis of the Company's investment portfolio is shown in the annual Report, which shows that all of the investments' value is in the Asia Pacific region. It should be recognised that an investment's country of domicile or of listing does not necessarily equate to its exposure to the economic conditions in that country. |
|||||||||
|
|
|
|||||||||
|
|
Equity price risk sensitivity |
|||||||||
|
|
The following table illustrates the sensitivity of the profit after taxation for the year and the equity to an increase or decrease of 10% in the fair values of the Company's equities. This level of change is considered to be reasonably possible based on observation of current market conditions. The sensitivity analysis is based on the Company's equities at each Balance Sheet date, with all other variables held constant. |
|||||||||
|
|
|
|||||||||
|
|
The equity price risk sensitivity incorporates the equity foreign exchange sensitivity analysis. |
|||||||||
|
|
|
|||||||||
|
|
|
2012 |
2011 |
|||||||
|
|
|
Increase in |
Decrease in |
Increase in |
Decrease in |
|||||
|
|
|
fair value |
fair value |
fair value |
fair value |
|||||
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|||||
|
|
Statement of Comprehensive Income - profit after taxation |
|
|
|
|
|||||
|
|
Revenue return - increase /(decrease) |
- |
- |
- |
- |
|||||
|
|
Capital return - increase /(decrease) |
36,199 |
(36,199) |
21,715 |
(21,715) |
|||||
|
|
|
_________ |
_________ |
________ |
________ |
|||||
|
|
Total profit after taxation - increase /(decrease) |
36,199 |
(36,199) |
21,715 |
(21,715) |
|||||
|
|
|
_________ |
_________ |
________ |
________ |
|||||
|
|
Equity |
36,199 |
(36,199) |
21,715 |
(21,715) |
|||||
|
|
|
_________ |
_________ |
________ |
________ |
|||||
|
|
|
|
|
|
|
|||||
|
|
(ii) Liquidity risk |
|||||||||
|
|
This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities, which stood at £75,834,000 (2011 - £11,331,000) at the year end, of which £61,677,000 (2011 - £nil) was in respect of the C shares, is classified as a financial liability under IAS 32 and which was converted to Ordinary shares after the year end. |
|||||||||
|
|
|
|||||||||
|
|
Liquidity risk is not considered to be significant as the Company's assets comprise mainly cash and readily realisable securities, which can be sold to meet funding commitments if necessary and these amounted to £4,532,000 and £381,705,000 (2011 - £5,930,000 and £236,609,000) at the year end respectively. Short-term flexibility is achieved through the use of loan and overdraft facilities. |
|||||||||
|
|
|
|||||||||
|
|
Maturity profile |
|||||||||
|
|
The following table sets out the carrying amount, by maturity, of the Company's financial instruments that are exposed to interest rate risk at the Balance Sheet date: |
|||||||||
|
|
|
|
|
|
|
|
||||
|
|
|
Within |
Within |
Within |
More than |
|
||||
|
|
|
1 year |
2-3 years |
4-5 years |
5 years |
Total |
||||
|
|
At 31 December 2012 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
||||
|
|
Fixed rate |
|
|
|
|
|
||||
|
|
Bonds |
- |
- |
- |
8,728 |
8,728 |
||||
|
|
Bank loans |
(13,268) |
- |
- |
- |
(13,268) |
||||
|
|
|
_________ |
_________ |
________ |
________ |
_________ |
||||
|
|
|
(13,268) |
- |
- |
8,728 |
(4,540) |
||||
|
|
|
_________ |
_________ |
________ |
________ |
_________ |
||||
|
|
Floating rate |
|
|
|
|
|
||||
|
|
Cash |
4,532 |
- |
- |
- |
4,532 |
||||
|
|
|
_________ |
_________ |
________ |
________ |
_________ |
||||
|
|
|
|
|
|
|
|
||||
|
|
|
Within |
Within |
Within |
More than |
|
||||
|
|
|
1 year |
2-3 years |
4-5 years |
5 years |
Total |
||||
|
|
At 31 December 2011 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
||||
|
|
Fixed rate |
|
|
|
|
|
||||
|
|
Bonds |
- |
- |
- |
12,403 |
12,403 |
||||
|
|
Bank loans |
(11,000) |
- |
- |
- |
(11,000) |
||||
|
|
|
_________ |
_________ |
________ |
________ |
_________ |
||||
|
|
|
(11,000) |
- |
- |
12,403 |
1,403 |
||||
|
|
|
_________ |
_________ |
________ |
________ |
_________ |
||||
|
|
Floating rate |
|
|
|
|
|
||||
|
|
Cash |
5,930 |
- |
- |
- |
5,930 |
||||
|
|
|
_________ |
_________ |
________ |
________ |
_________ |
||||
|
|
|
|
|
|
|
|
||||
|
|
(iii) Credit risk |
|||||||||
|
|
This is failure of the counter party to a transaction to discharge its obligations under that transaction that could result in the Company suffering a loss. |
|||||||||
|
|
|
|||||||||
|
|
The risk is not significant, and is managed as follows: |
|||||||||
|
|
· where the investment manager makes an investment in a bond, corporate or otherwise, the credit rating of the issuer is taken into account so as to minimise the risk to the Company of default. The Company has a holding in a Chinese overseas corporate bond issued by Yanlord. The issuer currently has a credit rating at Moody's of B1; |
|||||||||
|
|
· investment transactions are carried out with a large number of brokers, whose credit rating of which is taken into account so as to minimise the risk to the Company of default; |
|||||||||
|
|
· the risk of counterparty exposure due to failed trades causing a loss to the Company is mitigated by the review of failed trade reports on a daily basis. In addition, both stock and cash reconciliations to the custodian's records are performed on a daily basis to ensure discrepancies are investigated on a timely basis. The Manager's Compliance department carries out periodic reviews of the custodian's operations and reports its finding to the Manager's Risk Management Committee. It is the Manager's policy to trade only with A- and above (Long Term rated) and A-1/P-1 (Short Term rated) counterparties; |
|||||||||
|
|
· cash is held only with reputable banks with high quality external credit enhancements. |
|||||||||
|
|
|
|||||||||
|
|
None of the Company's financial assets are secured by collateral or other credit enhancements. |
|||||||||
|
|
|
|||||||||
|
|
Credit risk exposure |
|||||||||
|
|
In summary, compared to the amounts included in the Balance Sheet, the maximum exposure to credit risk at 31 December was as follows: |
|||||||||
|
|
|
|||||||||
|
|
|
2012 |
2011 |
|||||||
|
|
|
Balance |
Maximum |
Balance |
Maximum |
|||||
|
|
|
Sheet |
exposure |
Sheet |
exposure |
|||||
|
|
|
£'000 |
£'000 |
£'000 |
£'000 |
|||||
|
|
Non-current assets |
|
|
|
|
|||||
|
|
Investments designated at fair value through profit or loss |
381,705 |
8,728 |
236,609 |
12,403 |
|||||
|
|
|
|
|
|
|
|||||
|
|
Current assets |
|
|
|
|
|||||
|
|
Cash at bank |
4,532 |
4,532 |
5,930 |
5,930 |
|||||
|
|
Other receivables |
884 |
884 |
738 |
738 |
|||||
|
|
|
_________ |
_________ |
________ |
________ |
|||||
|
|
|
387,121 |
14,144 |
243,277 |
19,071 |
|||||
|
|
|
_________ |
_________ |
________ |
________ |
|||||
|
|
|
|
|
|
|
|||||
|
|
None of the Company's financial assets are past due or impaired. |
|||||||||
|
|
|
|||||||||
|
|
(iv) Gearing risk |
|||||||||
|
|
The Company's policy is to increase its exposure to equity markets through the judicious use of borrowings. When borrowings are invested in such markets, the effect is to magnify the impact on shareholders' funds of changes, both positive and negative, in the value of the portfolio. |
|||||||||
|
|
|
|||||||||
|
|
During the year the Company's borrowings were short-term loans, details of which can be found in note 12. |
|||||||||
|
|
|
|||||||||
|
|
The loans are valued at amortised cost, using the effective interest rate method in the financial statements. The Board regulates the overall level of gearing by raising or lowering cash balances. |
|||||||||
|
|
|
|||||||||
|
|
Fair value of financial assets |
|||||||||
|
|
Investments held at fair value through profit or loss are valued at their quoted bid prices which equate to their fair values. The Directors are of the opinion that the financial assets are stated at fair value in the Balance Sheet and considers that this is equal to the carrying amount. |
|||||||||
|
|
|
|||||||||
|
|
Fair values of financial liabilities |
|||||||||
|
|
The fair value of borrowings as at the 31 December 2012 has been estimated at £13,268,000 which is the same as the carrying value due to their short term nature. At 31 December 2011 the fair value was £11,000,000 which was the same as the carrying value. |
|||||||||
|
17. |
Capital management policies and procedures |
||
|
|
The Company's capital management objectives are: |
||
|
|
to ensure that the Company will be able to continue as a going concern; and |
||
|
|
to maximise the income and capital return to its equity shareholders through an appropriate balance of equity capital and debt. The policy is that debt should not exceed 25% of net assets. |
||
|
|
|
|
|
|
|
The Company's capital at 31 December comprises: |
|
|
|
|
|
2012 |
2011 |
|
|
|
£'000 |
£'000 |
|
|
Debt |
|
|
|
|
Borrowings under the multi-currency loan facility |
13,268 |
11,000 |
|
|
|
_________ |
_________ |
|
|
|
|
|
|
|
|
2012 |
2011 |
|
|
|
£'000 |
£'000 |
|
|
Equity |
|
|
|
|
Equity share capital |
151,182 |
139,084 |
|
|
Retained earnings and other reserves |
160,105 |
92,862 |
|
|
|
_________ |
_________ |
|
|
|
311,287 |
231,946 |
|
|
|
_________ |
_________ |
|
|
Debt as a % of net assets |
4.26 |
4.74 |
|
|
|
_________ |
_________ |
|
|
|
|
|
|
|
The Board, with the assistance of the Investment Manager monitors and reviews the broad structure of the Company's capital on an ongoing basis. This review includes: |
||
|
|
the planned level of gearing, which takes account of the Manager's views on the market; |
||
|
|
the need to buy back equity shares for cancellation, which takes account of the difference between the net asset value per share and the share price (ie the level of share price discount or premium); |
||
|
|
the need for new issues of equity shares; and |
||
|
|
the extent to which revenue in excess of that which is required to be distributed should be retained. |
||
|
|
|
||
|
|
The Company's objectives, policies and processes for managing capital are unchanged from the preceding accounting period. |
||
|
|
|
||
|
|
The Company is subject to the following externally imposed capital requirements: |
||
|
|
the bank borrowings under the Company's credit facility with Scotiabank Europe PLC are not to exceed 25% of net assets as measured in accordance with the policies used in the annual financial statements; |
||
|
|
under the Company's Articles of Association borrowings must not exceed an amount equal to the adjusted total of capital and reserves. |
||
|
|
|
||
|
|
These requirements are unchanged since last year, and the Company has complied with them during both the current and prior year. |
||
|
|
|
||
|
|
The C shares are not included in the debt to equity ratio calculation until such shares are converted to Ordinary shares. |
||
|
18. |
Related party transaction |
|
|
Mr H Young is a director of Aberdeen Asset Management Asia Limited (AAM Asia) and Aberdeen Asset Management PLC (AAM). AAM Asia is a subsidiary of AAM. Aberdeen Private Wealth Management Limited has an agreement to provide management services to the Company, which it has sub-delegated to AAM Asia. AAM has an agreement to provide administration and company secretarial services to the Company. The terms of these agreements are outlined in notes 5 and 6. |
|
19. |
Controlling party |
|
|
In the opinion of the Directors on the basis of shareholdings advised to them, the Company has no immediate or ultimate controlling party. |
|
20. |
Fair value hierarchy |
|||||
|
|
IFRS 7 'Financial Instruments: Disclosures' 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 (ie as prices) or indirectly (ie 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 Balance Sheet are grouped into the fair value hierarchy as follows: |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
Level 1 |
Level 2 |
Level 3 |
Total |
|
|
At 31 December 2012 |
Note |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Financial assets at fair value through profit or loss |
|
|
|
|
|
|
|
Quoted equities |
a) |
372,977 |
- |
- |
372,977 |
|
|
Quoted bonds |
b) |
8,728 |
- |
- |
8,728 |
|
|
|
|
______ |
______ |
_____ |
_____ |
|
|
Net fair value |
|
381,705 |
- |
- |
381,705 |
|
|
|
|
______ |
______ |
_____ |
_____ |
|
|
|
|
|
|
|
|
|
|
|
|
Level 1 |
Level 2 |
Level 3 |
Total |
|
|
At 31 December 2011 |
Note |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
Financial assets at fair value through profit or loss |
|
|
|
|
|
|
|
Quoted equities |
a) |
224,206 |
- |
- |
224,206 |
|
|
Quoted bonds |
b) |
12,403 |
- |
- |
12,403 |
|
|
|
|
______ |
______ |
_____ |
_____ |
|
|
Net fair value |
|
236,609 |
- |
- |
236,609 |
|
|
|
|
______ |
______ |
_____ |
_____ |
|
|
|
|
|
|
|
|
|
|
a) Quoted equities |
|||||
|
|
The fair value of the Company's investments in quoted equities have been determined by reference to their quoted bid prices at the reporting date. Quoted equities included in Fair Value Level 1 are actively traded on recognised stock exchanges. |
|||||
|
|
|
|||||
|
|
b) Quoted bonds |
|||||
|
|
The fair value of the Company's investments in corporate quoted bonds have been determined by reference to their quoted bid prices at the reporting date. |
|||||
|
21. |
Events after the reporting period |
|
|
On 25 January 2013 both bank loans were rolled over. At the signing of this report HK$81,842,000 and US$11,008,000 remained drawn down from the £15,000,000 facility with Scotiabank Europe PLC at fixed interest rates of 1.5768% and 1.5535% respectively. Both are repayable on 25 March 2013. |
|
|
|
|
|
The Company issued 60,000,000 C shares on 16 November 2012. Under the terms of the C share Prospectus, issued on 22 October 2012, the C shares would be converted to Ordinary shares once 80% of the issue proceeds had been invested. The Directors' determined that the conversion ratio would be calculated on 11 January 2013 with the conversion date of 4 February 2013. On the basis of the conversion ratio, 0.5092 Ordinary shares were issued for each C share. As a result, 30,552,000 Ordinary shares were issued on 4 February 2013. |
|
|
|
|
|
Subsequent to the year end the Company issued 2,650,000 Ordinary shares for a total consideration of £6,106,000 excluding transaction costs. |
Additional Notes:
The financial information set out above does not constitute the Company's statutory accounts for the year ended 31 December 2012. The annual audited accounts for 2011 will be finalised on the basis of the financial information presented by the Directors in this annual financial report announcement and will be delivered to the Jersey Financial Services Commission in due course.
The Annual Report will be posted to Shareholders in April and further copies may be obtained from the registered office, No.1 Seaton Place, St Helier, Jersey JE4 8YJ and on the Company's website* www.asian-income.co.uk.
Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise and may be affected by exchange rate movements. Investors may not get back the amount they originally invested.
* Neither the content of the Company's website nor the content of any website accessible from hyperlinks on the Company's website (or any other website) is (or is deemed to be) incorporated into, or forms (or is deemed to form) part of this announcement.
Aberdeen Private Wealth Management Limited
Secretary
27 March 2013
10. CONSOLIDATED INVESTMENT PORTFOLIO - TEN LARGEST INVESTMENTS
|
As at 31 December 2012 |
|
|
|
|
|
|
|
|
|
Valuation |
Total |
Valuation |
|
|
|
Country |
2012 |
assets |
2011 |
|
Company |
Sector |
of activity |
£'000 |
%{B} |
£'000{C} |
|
HSBC Holdings |
|
|
|
|
|
|
One of the world's largest banking and financial services institutions. Its international network comprises more than 5,000 offices in 80 countries and territories, operating in the Asia Pacific region, Europe, the Americas, the Middle East and Africa. The diversity of HSBC's business and exposure to faster growing regions of the world should enable it to deliver superior long-term growth. |
Commercial Banks |
Hong Kong |
14,031 |
3.6 |
6,597 |
|
Taiwan Semiconductor |
|
|
|
|
|
|
The world's largest dedicated semiconductor foundry, it provides wafer manufacturing, wafer probing, assembly and testing, mask production and design services. |
Semiconductors & Semiconductor Equipment |
Taiwan |
12,887 |
3.3 |
11,692 |
|
Oversea-Chinese Banking Corporation |
|
|
|
|
|
|
A well-managed Singapore bank with a strong capital base and impressive cost-to-income ratio. It has also embarked on a selective regional expansion. |
Commercial Banks |
Singapore |
11,716 |
3.0 |
8,357 |
|
Canon |
|
|
|
|
|
|
A world leader in imaging products, printers and cameras and one of the best-performing companies in Japan. Canon has benefited from strong digital camera sales, particularly in the high-end SLR segment. Its prospects are strong, and valuations attractive. |
Office Electronics |
Japan |
11,526 |
3.0 |
- |
|
Guinness Anchor |
|
|
|
|
|
|
The market leader in Malaysia's beer and stout industry, with brand names including Tiger, Guinness and Heineken. |
Beverages |
Malaysia |
11,474 |
3.0 |
10,851 |
|
Singapore Telecommunications |
|
|
|
|
|
|
A regional telecommunications company, with a combined mobile subscriber base of more than 285 million customers from its own operations in Singapore and Australia, and regional associates in India, Philippines, Thailand, Indonesia, Pakistan and Bangladesh. |
Diversified Telecommunication Services |
Singapore |
11,302 |
2.9 |
5,582 |
|
Venture Corp |
|
|
|
|
|
|
Provides contract manufacturing services to electronics companies. The company's major segments include Printing & Imaging and Networking & Communications and it has been increasing its revenue contribution from Original Design Manufacturing. |
Electronic Equipment, Instruments & Components |
Singapore |
11,275 |
2.9 |
6,615 |
|
Taiwan Mobile |
|
|
|
|
|
|
A leading telecommunications company in Taiwan offering mobile, fixed-line, cable TV and broadband services, it has a prudent management and pays a good dividend. |
Wireless Telecommunication Services |
Taiwan |
11,159 |
2.9 |
9,969 |
|
BHP Billiton |
|
|
|
|
|
|
The world's largest diversified resources group with a global portfolio of high quality assets. Core activities comprise production and distribution of minerals, mineral products and petroleum. |
Metals & Mining |
Australia{D} |
10,988 |
2.9 |
7,059 |
|
British American Tobacco Malaysia |
|
|
|
|
|
|
Manufacturer & marketer of tobacco products in Malaysia through BAT's international brands such as Dunhill and Lucky Strike. |
Tobacco |
Malaysia |
10,919 |
2.8 |
8,865 |
|
Top ten investments |
|
|
117,277 |
30.3 |
|
CONSOLIDATED INVESTMENT PORTFOLIO - OTHER INVESTMENTS
|
As at 31 December 2012 |
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Valuation |
Total |
Valuation |
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2012 |
assets |
2011 |
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Company |
Sector |
Country |
£'000 |
%{B} |
£'000{C} |
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Tesco Lotus Retail Growth |
Real Estate Investment Trusts |
Thailand |
10,699 |
2.8 |
- |
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Swire Pacific (Class A and Class B) |
Real Estate Management & Development |
Hong Kong |
9,833 |
2.6 |
7,876 |
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Singapore Technologies Engineering |
Aerospace & Defence |
Singapore |
9,805 |
2.5 |
5,287 |
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China Mobile |
Wireless Telecommunication Services |
China |
9,635 |
2.5 |
6,410 |
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Woolworths |
Food & Staples Retailing |
Australia |
9,612 |
2.5 |
4,702 |
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Electricity Generating |
Independent Power Producers & Energy Traders |
Thailand |
9,566 |
2.5 |
- |
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SP Ausnet |
Electric Utilities |
Australia |
9,535 |
2.5 |
6,449 |
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Telstra |
Diversified Telecommunication Services |
Australia |
9,468 |
2.5 |
7,469 |
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QBE Insurance Group |
Insurance |
Australia |
9,410 |
2.5 |
9,315 |
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United Overseas Bank |
Commercial Banks |
Singapore |
9,378 |
2.4 |
7,123 |
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Top twenty investments |
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214,218 |
55.6 |
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Singapore Post |
Air Freight & Logistics |
Singapore |
9,158 |
2.4 |
4,167 |
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BEC World |
Media |
Thailand |
9,018 |
2.3 |
3,879 |
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Yanlord Land Group |
Real Estate Management & Development (Corporate Bond) |
China |
8,728 |
2.2 |
- |
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Siam Cement |
Construction Materials |
Thailand |
8,425 |
2.2 |
5,575 |
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Giordano International |
Specialty Retail |
Hong Kong |
8,114 |
2.1 |
4,983 |
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Keppel Corp |
Industrial Conglomerates |
Singapore |
7,860 |
2.0 |
2,077 |
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Commonwealth Bank of Australia |
Commercial Banks |
Australia |
7,624 |
2.0 |
6,007 |
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Australia & New Zealand Bank Group |
Commercial Banks |
Australia |
7,553 |
1.9 |
5,485 |
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CDL Hospitality Trust |
Real Estate Investment Trusts |
Singapore |
7,267 |
1.9 |
- |
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Takeda Pharmaceutical |
Pharmaceuticals |
Japan |
7,131 |
1.8 |
5,637 |
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Top thirty investments |
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295,096 |
76.4 |
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Resorttrust |
Hotels, Restaurants & Leisure |
Japan |
6,633 |
1.7 |
- |
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Advanced Information Services |
Wireless Telecommunication Services |
Thailand |
6,305 |
1.7 |
6,282 |
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Pos Malaysia |
Air Freight & Logistics |
Malaysia |
6,301 |
1.6 |
2,054 |
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PetroChina |
Oil, Gas & Consumable Fuels |
China |
6,078 |
1.6 |
5,608 |
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Li & Fung |
Distributors |
Hong Kong |
5,972 |
1.6 |
- |
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Westfield Group |
Real Estate Investment Trusts |
Australia |
5,885 |
1.5 |
2,576 |
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Ascendas Hospitality Trust |
Real Estate Investment Trusts |
Singapore |
5,639 |
1.5 |
- |
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DBS Group |
Commercial Banks |
Singapore |
5,598 |
1.4 |
- |
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Telecom Corp of New Zealand (Australia Listing) |
Diversified Telecommunication Services |
New Zealand |
5,596 |
1.4 |
2,801 |
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Far East Hospitality Trust |
Real Estate Investment Trusts |
Singapore |
5,485 |
1.4 |
- |
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Top forty investments |
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354,588 |
91.8 |
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Singapore Press Holdings |
Media |
Singapore |
5,365 |
1.4 |
4,267 |
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Ratchaburi Electricity |
Independent Power Producers & Energy Traders |
Thailand |
4,086 |
1.1 |
- |
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Hong Leong Finance |
Consumer Finance |
Singapore |
3,896 |
1.0 |
3,184 |
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Westfield Retail Trust |
Real Estate Investment Trusts |
Australia |
3,845 |
1.0 |
- |
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Lafarge Malayan Cement |
Construction Materials |
Malaysia |
3,284 |
0.9 |
2,466 |
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Hana Microelectronics |
Electronic Equipment, Instruments & Components |
Thailand |
2,889 |
0.7 |
2,428 |
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Okinawa Cellular Telephone |
Wireless Telecommunication Services |
Japan |
1,968 |
0.5 |
- |
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Kingmaker Footwear |
Textiles, Apparel & Luxury Goods |
Hong Kong |
898 |
0.2 |
862 |
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Texwinca Holdings |
Textiles, Apparel & Luxury Goods |
Hong Kong |
788 |
0.2 |
- |
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Shopping Centres Australasia |
Real Estate Investment Trusts |
Australia |
98 |
- |
- |
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Total value of investments |
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381,705 |
98.8 |
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Net current assets{A} |
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4,527 |
1.2 |
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Total assets{B} |
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386,232 |
100.0 |
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{A}Excluding bank loans of £13,268,000 and C shares of £61,677,000. |
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{B} Total assets less current liabilities (before deducting prior charges). |
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{C}Purchases and/or sales effected during the year will result in 2011 and 2012 values not being directly comparable. |
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{D}Incorporated in and listing held in United Kingdom. |
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11 RESULTS
Financial Highlights
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31 December 2012 |
31 December 2011 |
% change |
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Total assets |
£386,232,000 |
£242,946,000 |
+59.0 |
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Total assets C share |
£61,677,000 |
n/a |
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Total equity shareholders' funds (net assets) |
£311,287,000 |
£231,946,000 |
+34.2 |
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Share price Ordinary share (mid market) |
222.50p |
168.13p |
+32.3 |
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Share price C Share (mid market) |
109.75p |
n/a |
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Net asset value per Ordinary share (basic) |
205.90p |
166.77p |
+23.5 |
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Net asset value per Ordinary share (diluted) |
203.92p |
164.78p |
+23.8 |
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Net asset value per C share (basic) |
102.80p |
n/a |
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Premium to diluted net asset value per Ordinary share |
9.1% |
2.0% |
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MSCI AC Asia Pacific ex Japan Index (currency adjusted, capital gains basis) |
536.42 |
472.88 |
+13.4 |
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Net gearing{A} |
2.8% |
2.2% |
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Dividend and earnings |
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Total return per Ordinary share{B} |
46.87p |
3.36p |
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Total return per C share{C} |
4.34p |
n/a |
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Revenue return per Ordinary share{B} |
8.31p |
7.44p |
+11.7 |
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Revenue return per C share{C} |
0.32p |
n/a |
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Dividends per Ordinary share{D} |
7.15p |
6.75p |
+5.9 |
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Dividend cover per Ordinary share |
1.16 |
1.10 |
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Revenue reserves{E} |
£6.58m |
£5.03m |
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Ongoing charges{F} |
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Ongoing charges Ordinary share |
1.27% |
1.37% |
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Ongoing charges C share |
0.13% |
n/a |
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{A} Calculated in accordance with AIC guidance "Gearing Disclosures post RDR". |
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{B} Measures the relevant earnings for the year divided by the weighted average number of Ordinary shares in issue (see Statement of Comprehensive Income). |
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{C} Measures the relevant earnings for the year divided by the weighted average number of C shares in issue (see Statement of Comprehensive Income). |
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{D} The figure for dividends reflects the years in which they were earned (see note 8).
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{E} The revenue reserves figure takes account of the fourth interim dividend amounting to £3,780,000 (2011 - fourth interim amounting to £3,138,000). |
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{F} Ongoing charges has been calculated in accordance with guidance issued by the AIC as the total of investment management fees (excluding performance fees) and administrative expenses divided by the average cum income net asset value throughout the year. The figure for 2011 has been restated to reflect this guidance. |
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Performance (total return)
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1 year |
3 year |
5 year |
Since launch{A} |
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% return |
% return |
% return |
% return |
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Share price (Ordinary) |
+37.3 |
+84.4 |
+150.2 |
+184.7 |
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Net asset value (diluted) |
+28.5 |
+68.5 |
+105.1 |
+165.9 |
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MSCI AC Asia Pacific ex Japan Index (currency adjusted) |
+17.2 |
+22.1 |
+26.4 |
+104.3 |
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All figures are for total return and assume re-investment of net dividends. |
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{A} Launch being 20 December 2005. |
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Dividends
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Rate per share |
xd date |
Record date |
Payment date |
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First interim 2012 |
1.55p |
25 April 2012 |
27 April 2012 |
18 May 2012 |
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Second interim 2012 |
1.55p |
18 July 2012 |
20 July 2012 |
24 August 2012 |
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Third interim 2012 |
1.55p |
24 October 2012 |
26 October 2012 |
16 November 2012 |
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Fourth interim 2012 |
2.50p |
16 January 2013 |
18 January 2013 |
18 February 2013 |
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2012 |
7.15p |
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First interim 2011 |
1.50p |
27 April 2011 |
03 May 2011 |
19 May 2011 |
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Second interim 2011 |
1.50p |
20 July 2011 |
22 July 2011 |
25 August 2011 |
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Third interim 2011 |
1.50p |
26 October 2011 |
28 October 2011 |
18 November 2011 |
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Fourth interim 2011 |
2.25p |
18 January 2012 |
20 January 2012 |
17 February 2012 |
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2011 |
6.75p |
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{A} The dividends above relate to Ordinary shares only. No C share dividends have been paid. |
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This information is provided by RNS
COMPANIES COVERED:
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