Annual Financial Report

RNS Number : 3609I

Aberdeen Asian Income Fund Limited

25 March 2015

 

ABERDEEN ASIAN INCOME FUND LIMITED

ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2014

STRATEGIC REPORT - COMPANY SUMMARY AND FINANCIAL HIGHLIGHTS

The Company

Aberdeen Asian Income Fund Limited (the "Company") is a Jersey-incorporated, closed-end investment company and its Ordinary shares of No Par Value ("Ordinary Shares") are listed on the London Stock Exchange. The Company is a member of the Association of Investment Companies.

Investment Objective

The investment objective of the Company is to provide investors with a total return primarily through investing in Asian Pacific securities, including those with an above average yield.  Within its overall investment objective, the Company aims to grow its dividends over time.

Portfolio Management

The investment management of the Company has been delegated by Aberdeen Private Wealth Management Limited (the "Manager", the "Alternative Investment Fund Manager" or "AIFM") to Aberdeen Asset Management Asia Limited ("AAM Asia" or the "Investment Manager"). AAM Asia is based in Singapore and is a wholly-owned subsidiary, and the Asia Pacific headquarters, of Aberdeen Asset Management PLC (the "Aberdeen Group"), a publicly-quoted company on the London Stock Exchange.

Website

Up-to-date information can be found on the Company's website www.asian-income.co.uk.

Financial Highlights

	2014	2013
Ordinary share price total return{A}	+6.7%	-9.2%
Net asset value total return{A}	+7.6%	-2.6%
MSCI AC Asia Pacific ex Japan Index (currency adjusted){A}	+9.5%	+1.7%
Earnings per Ordinary share - basic (revenue)	8.24p	8.23p
Dividends per Ordinary share	8.00p	7.90p
Premium to net asset value per Ordinary share	1.0%	1.8%
Ongoing charges	1.25%	1.24%
{A} 1 year return

STRATEGIC REPORT - OVERVIEW OF STRATEGY

Introduction

The Company aims to attract long term private and institutional investors wanting to benefit from the growth prospects of Asian companies including those with above average yields.

The business of the Company is that of an investment company and the Directors do not envisage any change in this activity in the foreseeable future.  The Company's investment objective and key results are shown under Financial Highlights below. 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 and details of any changes in the issued Ordinary Share capital.

Duration

The Company does not have a fixed life.

MSCI AC Asia Pacific (ex Japan) Index

The Company compares its performance against the currency-adjusted MSCI AC Asia Pacific (ex Japan) Index.  The Company's portfolio is constructed without reference to any stockmarket index. It is likely, therefore, that there will be periods when the Company's performance will be quite unlike that of any index and there can be no assurance that such divergence will be wholly or even primarily to the Company's advantage.

Key Performance Indicators (KPIs)

At each Board meeting, the Directors consider a number of performance measures to assess the Company's success in achieving its objectives.  Below are the main KPIs which have been identified by the Board for determining the progress of the Company and a record of these measures is also disclosed under Financial Highlights below:

•        Net Asset Value Per Ordinary Share
•        Share Price Ordinary Share (mid market)
•        Discount/Premium to NAV per Ordinary Share
•        Dividend Payments per Ordinary Share
•        Ongoing Charges Ratio

Business Model - Investment Policy

The Company primarily invests in the Asia Pacific region through investment in:

•        companies listed on stock exchanges in the Asia Pacific region;
•        Asia Pacific securities, such as global depositary receipts (GDRs), listed on other international stock         exchanges;
•        companies listed on other international exchanges that derive significant revenues or profits from the Asia        Pacific region; and
•        debt issued by governments or companies in the Asia Pacific region or denominated in Asian Pacific        currencies.

The Company's investment policy is flexible, enabling it to invest in all types of securities, including equity shares, preference shares, debt, convertible securities, warrants and other equity-related securities.

The Company is free to invest in any particular market segments or any particular countries in the Asia Pacific region.

The Company invests in small, mid and large capitalisation companies. The Company's policy is not to acquire securities that are unquoted or unlisted at the time of investment (with the exception of securities which are about to be listed or traded on a stock exchange). However, the Company may continue to hold securities that cease to be quoted or listed if the Investment Manager considers this to be appropriate.

Typically, the portfolio will comprise 30 to 50 holdings (but without restricting the Company from holding a more or less concentrated portfolio in the future). At 31 December 2014 there were 58 holdings in the portfolio. 

The Company will not invest more than 10%, in aggregate, of the value of its Total Assets in other investment trusts or investment companies admitted to the Official List, provided that this restriction does not apply to investments in any such investment trusts or investment companies which themselves have stated investment policies to invest no more than 15% of their Total Assets in other investment trusts or investment companies admitted to the Official List. In any event, the Company will not invest more than 15%

of its Total Assets in other investment trusts or investment companies admitted to the Official List.

In addition, the Company will not:

•        invest, either directly or indirectly, or lend more than 20% of its Total Assets to any single underlying issuer        (including the underlying issuer's subsidiaries or affiliates), provided that this restriction does not apply to cash        deposits awaiting investment;
•        invest more than 20% of its Total Assets in other collective investment undertakings (open-ended or closed-       ended);
•        expose more than 20% of its Total Assets to the creditworthiness or solvency of any one counterparty        (including the counterparty's subsidiaries or affiliates);
•        invest in physical commodities;
•        enter into derivative transactions for speculative purposes;
•        take legal or management control of any of its investee companies; or
•        conduct any significant trading activity.

The Company may invest in derivatives, financial instruments, money market instruments and currencies solely for the purpose of efficient portfolio management (i.e. solely for the purpose of reducing, transferring or eliminating investment risk in the Company's investments, including any technique or instrument used to provide protection against exchange and credit risks).

The Investment Manager expects the Company's assets will normally be fully invested. However, during periods in which changes in economic conditions or other factors so warrant, the Company may reduce its exposure to securities and increase its position in cash and money market instruments.

The Board is responsible for determining the gearing strategy for the Company. The Board has restricted the maximum level of gearing to 25% of net assets although, in normal market conditions, the Company is unlikely to take out gearing in excess of 15% of net assets. Gearing is used selectively to leverage the Company's portfolio in order to enhance returns where and to the extent this is considered appropriate to do so. Borrowings are generally short term, but the Board may from time to time determine to incur longer term borrowings where it is believed to be in the Company's best interests to do so.  Particular care is taken to ensure that any bank covenants permit maximum flexibility of investment policy.

The percentage investment and gearing limits set out under this sub-heading "Investment Policy" are only applied at the time of the relevant investment is made or borrowing is incurred.

In the event of any breach of the Company's investment policy, shareholders will be informed of the actions to be taken by the Investment Manager by an announcement issued through a Regulatory Information Service or a notice sent to shareholders at their registered addresses in accordance with the Articles.

The Company may only make material changes to its investment policy (including the level of gearing set by the Board) with the approval of shareholders (in the form of an ordinary resolution). In addition, any changes to the Company's investment objective or policy will require the prior consent of the Jersey Financial Services Commission ("JFSC") to the extent that they materially affect the import of the information previously supplied in connection with its approval under Jersey Funds Law or are contrary to the terms of the Jersey Collective Investment Funds laws.

Principal Risks and Uncertainties

An investment in the Ordinary Shares 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 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 Ordinary Shares. If any of the adverse events described below actually occur, the Company's financial condition, performance and prospects and the price of its Ordinary 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 price of the Ordinary Shares.

• Investment risk

The Company's investment strategy requires investment in Asia Pacific equity and bond markets, which involves a greater degree of risk than that associated with investment in more developed markets which may lead to a loss of capital. Separately, inappropriate asset allocation or level of gearing, as part of the investment strategy adopted by the Company, may result in underperformance against either the Company's comparative index and/or its peer group, which may in turn lead to a widening of the discount at which the Company's shares trade.

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 either the Company or the Investment Manager can substantially (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.

The Board seeks to manage these risks by diversifying its investments, as set out in the investment restrictions and guidelines agreed with the Manager, and on which the Company receives regular monitoring reports from the Manager. At each Board meeting, the Directors review the effectiveness of the investment process with the Manager by assessing relevant management information including revenue forecasts, absolute/relative performance data, attribution analysis and liquidity/risk reports.

       Income and dividend risk

There is a risk that the Company fails to generate sufficient income from its investment portfolio, particularly in periods of weak equity and bond markets, to meet its operational expenses which results in it drawing upon, rather than replenishing, its revenue reserves. This might hamper the Board's capacity to maintain dividends to shareholders. The Board monitors this risk through the review of income forecasts, provided by the Manager, at each Board meeting.

·       Discount volatility

Investment company shares can trade at discounts to their underlying net asset values, although they can also trade at premia. Discounts and premia can fluctuate considerably. In order to seek to minimise the impact of such fluctuations, where the shares are trading at a significant discount, the Company has operated a share buy-back programme for a number of years. If the shares trade at a premium, the Company has the authority to issue new shares or re-issue shares from treasury. Whilst these measures seek to minimise volatility, it cannot be guaranteed that they will do so.

·       Foreign exchange risk

The Company accounts for its activities, reports it NAV and declares dividends in sterling whilst its investments may be made and realised in other currencies. The value of the Company's investments and the income derived from them can, therefore, be affected by movements in foreign exchange rates. In addition, the earnings of the Company's investments may also be affected by currency movements which, indirectly, could have an impact on the Company's performance. The Company does not currently hedge its foreign currency exposure.

·       Operational risk

In common with most other investment companies, the Company has no employees. The Company therefore relies on services provided by third parties, particularly the Manager, to whom responsibility for the management of the Company has been delegated under a management agreement (the "Agreement") (further details of which are set out in the Directors' Report). The terms of the Agreement cover the necessary duties and responsibilities expected of the Manager. The Board reviews the overall performance of the Manager on a regular basis and their compliance with the Agreement is reviewed formally on an annual basis.

Contracts with other third party providers, including share registrar and custodial services, are entered into after appropriate due diligence. Thereafter, each contract, and the performance of the provider, is subject to regular formal review. The security of the Company's assets is the responsibility of the custodian, BNP Paribas. The effectiveness of the internal controls at the custodian is subject to review and regular reporting to the Audit Committee.

·       Regulatory risk

The Company operates in a complex regulatory environment and faces a number of related risks. A breach of applicable laws and regulations, such as the UKLA Listing Rules, Jersey Company law or Accounting Standards, could lead to suspension from the London Stock Exchange and reputational damage. The Board receives frequent compliance reports from the Manager to monitor compliance with regulations.

An explanation of other risks relating to the Company's investment activities, specifically market price, liquidity and credit risk, and a note of how these risks are managed, are contained in note 16 to the Financial Statements.

Alternative Investment Fund Managers Directive ("AIFMD")

In accordance with the Alternative Investment Funds (Jersey) Regulations 2012, the Jersey Financial Services Commission ("JFSC") has granted its permission for the Company to be marketed within any EU Member State or other EU State to which the Directive applies. The Company's registration certificate with the JFSC is now conditioned such that the Company "must comply with the applicable sections of the Codes of Practice for Alternative Investment Funds and AIF Services Business".

Aberdeen Private Wealth Management Limited ("APWM"), as the Company's non-EEA alternative investment fund manager, has notified the UK Financial Conduct Authority in accordance with the requirements of the UK National Private Placement Regime of its intention to market the Company (as a non-EEA AIF under the Directive) in the UK.

In addition, in accordance with Article 23 of the AIFMD and Rule 3.2.2 of the Financial Conduct Authority ("FCA") Fund Sourcebook, APWM is required to make available certain disclosures for potential investors in the Company. These disclosures, in the form of a Pre-Investment Disclosure Document ("PIDD"), are available on the Company's website: www.asian-income.co.uk.

Foreign Account Tax Compliance Act ("FATCA")

The States of Jersey signed an Intergovernmental Agreement ("IGA") with the United States on 13 December 2013 in a bid to improve tax compliance and implement FATCA.  Jersey also signed an IGA with the UK on 22 October 2013. Companies that are classified as Financial Institutions will have an obligation to report on any UK or US Specified persons identified during their due diligence.  As a result of the IGAs, Jersey companies must report to the Comptroller of Taxes at the Jersey Taxes Office, and not directly to the IRS. Jersey companies have to report relevant information for the previous calendar year to the Comptroller by 30 June. The Comptroller has until September 2015 to forward information relating to the 2014 calendar year to the competent authority in the US.  Under US FATCA, Companies may suffer a withholding tax at an effective rate of 30% as a result of non-compliance.

Board Diversity

The Board recognises the importance of having a range of skilled, experienced individuals with the right knowledge in order to allow the Board to fulfill its obligations.  At 31 December 2014, in respect of gender diversity specifically there were five male Directors and one female Director. The Company has no employees. The Board's statement on diversity more generally is set out in the Annual Report.

Environmental, Social and Human Rights Issues

The Company has no employees as it is managed by Aberdeen Private Wealth Management Limited. There are therefore no disclosures to be made in respect of employees. The Company's socially responsible investment policy is outlined in the Statement of Corporate Governance contained in the Annual Report.

Global Greenhouse Gas Emissions

The Company has no greenhouse gas emissions to report from the operations of its business, nor does it have direct responsibility for any other emissions producing sources.

Peter Arthur

Chairman

24 March 2015

STRATEGIC REPORT - CHAIRMAN'S STATEMENT

Background and Overview

Your Company's net asset value total return was 7.6% for the year ended 31 December 2014, trailing the 9.5% gain in the MSCI All Country Asia Pacific ex-Japan Index. On a total return basis the share price rose by 6.7% to 199.9p. Despite this relatively disappointing recent performance, the longer term track record remains highly creditable, with the NAV total return being 76.6% compared to 36.0% for the Index for the five years to 31 December 2014.  The premium over net asset value contracted marginally from 1.8% to 1.0% at year end, whereas at the time of writing they are trading at a discount of 3.1% Total dividends for the year amounted to 8.0p (2013: 7.9p) representing a slight increase of 1.2% over 2013. 

Last year was eventful for higher-yielding stocks, which returned to favour after their poor performance in 2013. Continued low interest rates, together with uncertainty surrounding an increasingly divergent policy landscape among key central banks, drove demand for dividend-paying stocks. While the US Federal Reserve terminated its asset purchase programme, pressure mounted on Europe, China and Japan to turn on their stimulus taps. At the time of writing, the European Central Bank has now started to implement the purchase of €60 billion in bonds every month until September 2016. Japan, too, has expanded its monetary base in an attempt to ward off the spectre of deflation.

Although falling shy of the double-digit returns of the US, Asian equities outperformed most of their emerging and developed market counterparts. Headlines were dominated by landmark political developments, notably in India, Indonesia and Thailand. In India and Indonesia, the prospect of sweeping policy change after the elections led both indices to gain over 30% in sterling terms, although your Company has little direct exposure to their equity markets due to the generally low yields on offer. Conversely, the exposure to Thailand added to performance: the stockmarket rallied after the military seized power following months of political unrest. Investors were cheered by the prospect of relative stability and the resumption of stalled infrastructure investments.

In the second half of the year, plummeting oil prices threw markets into disarray. Amid lacklustre demand and OPEC's decision to maintain production levels, crude prices ended the year at half their summer levels. While oil exporters such as Malaysia have been pressured by the prospect of lower government revenues, the rest of Asia, which is a net importer, seems likely to benefit. Cheaper oil has also given greater policy flexibility to lawmakers, some of whom have taken the opportunity to dismantle expensive fuel subsidies, freeing up resources for more productive uses, such as investment in infrastructure and healthcare.

Your Company's small exposure to China hampered returns in the fourth quarter. The market far outstripped its regional peers towards the end of the year, despite recurring concerns over a potential property bubble and disappointing growth figures. Stocks were buoyed by the central bank's move to reduce interest rates and inject liquidity into the banking system. Hong Kong posted comparatively subdued returns, as pro-democracy protests towards the year-end weighed on sentiment.

Dividends

Four quarterly dividends were declared over 2014. The first three were paid at the rate of 1.8p totalling 5.4p which, when added to the fourth dividend of 2.6p, represented an overall increase of 1.2% for the year to stand at 8.0p. In the year to 31 December 2014, after deducting the payment of the fourth interim dividend, approximately £0.45 million has been transferred to the Company's revenue reserves which now amount to £7.25 million (approximately 3.7p per share).

Looking ahead, your Investment Manager does not anticipate a substantial increase in absolute dividends in the current year. While the balance sheets of your Company's holdings remain resilient, your Investment Manager expects market volatility to persist well into 2015. Given the challenging operating environment, earnings growth is likely to remain muted.

Ordinary Share Issuance and Gearing

During the year, there was further demand for your Company's Ordinary shares and 800,000 new Ordinary Shares were issued at a premium to the prevailing NAV.  Such issues enhance the NAV (albeit marginally) for existing shareholders. 

Your Company entered into a new unsecured three year £30 million multi currency facility with Scotiabank (Ireland) Limited which replaced a £15 million secured facility that matured in April 2014.  At the period end approximately £29.7 million was drawn down under the facility (USD11.0 million, HKD252.8 million and GBP1.7 million) representing a gearing level of 6.8% of net assets which overall has been beneficial to the net asset value performance over the period under review.  Subsequent to the period end the Company has agreed an extra facility with Scotiabank Europe PLC in the form of a GBP10.0 million term loan facility.  On 4 March 2015 £10 million was drawn down under the new facility for a fixed three year period at an all-in interest rate of 2.2175%.  At the time of writing the equivalent of £39.4 million has been drawn down in sterling, Hong Kong and US dollars under the facilities, representing a gearing level of 9.7% of net assets.

Directorate

As part of the Board's succession planning, Dr Armstrong has indicated her intention to retire at the forthcoming Annual General Meeting and not to seek re-election to the Board.  I would like to take this opportunity to thank Ana for her considerable contribution to the Company since its launch in 2005 and to wish her well for the future.

The Directors, through the Nomination Committee, have initiated a search for a new Director by preparing a specification of the skills and experience required and a detailed search has been undertaken using the services of an independent external recruitment company.  The process is well advanced and the Board expects to be able to update shareholders in due course.

Outlook

Asian stock markets will be steered by some of the same issues that drove sentiment last year. The evolving expectations surrounding the timing of a US interest rate hike will continue to foment volatility. At the time of writing, most signs point to an environment of looser monetary policy in the near term, given falling oil prices and still-anaemic levels of growth in most developed markets apart from the US. Even with the relatively upbeat backdrop, economic data from the US has been patchy, while still-low inflation could ease pressure on the Fed to raise its benchmark rate within the first half of the year. A looser policy environment might prove positive for most asset classes, including equities, but one feels that this only delays the crucial realignment between company fundamentals and share price performance. Meanwhile, risk appetite continues to be vulnerable to further shocks in both the oil and currency markets.

We expect Asia to be the fastest growing region of the world in 2015 albeit muted by its own high historic standards. Notably, while Chinese authorities will undoubtedly cushion the impact of a slowdown with targeted easing measures, its growth forecasts this year are still hovering at the decade-low level of 7%. The rest of the region, previously buoyed by China's insatiable appetite for their exports, will similarly have to adjust to lower levels of expansion.

That said, the investment case for Asia remains attractive for an investor with a long-term horizon. Young populations with rising wealth, coupled with relatively stable political environments and proactive central banks, will continue to underpin growth in the decades ahead. On the corporate front, investment flows into high-yielding stocks are likely to be dictated in the near term by the vacillating expectations regarding US interest rates. But your Company's holdings continue to warrant confidence. Selected for their defensiveness and solid fundamentals, they are well-positioned to produce healthy dividend growth in the longer-term despite the challenging macroeconomic environment.

Annual General Meeting

Your Company's Annual General Meeting ("AGM") will be held at 10.30 a.m. on Thursday 7 May 2015 at the Company's registered office, 1st Floor, Sir Walter Raleigh House, 48 - 50 Esplanade, St Helier JE2 3QB.  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 Savings Plans) which is enclosed with the Annual Report and financial statements. 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 2015, which will be issued to shareholders around the end of August 2015. Those shareholders who wish to keep up to date with developments between formal reports may wish to view the monthly factsheet and other useful information relating to the Company at www.asian-income.co.uk.

Peter Arthur

Chairman

24 March 2015

STRATEGIC REPORT - INVESTMENT MANAGER'S REVIEW

Overview

Asian equities rose in 2014, a year marked by political change and the start of monetary policy divergence. Asia outperformed most peers in emerging markets and advanced counterparts in Europe but lagged the double-digit gains in the US. Sentiment was influenced by major central banks' policy decisions, including the Bank of Japan's plan to expand its monetary base to stave off deflation and the state pension fund's reallocation towards equities. In China, the government continued to announce targeted easing measures and the central bank cut interest rates to boost growth. Juxtaposed against this was the US Federal Reserve's decision to end quantitative easing. Expectations of a rate hike some time in 2015 strengthened the US dollar and pared market gains in Asia. This was exacerbated by the plunge in global oil prices, which heightened risk aversion. On a positive note, inflation eased because of cheaper oil, allowing various authorities to cut fuel subsidies that were a significant strain on budgets.

Performance Review

During the review period, the Company's net asset value rose by 7.6% and the share price rose by 6.7%, compared to the MSCI AC Asia Pacific ex Japan Index's gain of 9.5% (on a total return basis). Volatility was heightened in 2014, with a refocus on the search for yield, as expectations of a US rate hike were pushed out, and long-term interest rates continued to decline on weakening inflation. Overall, your Company's underlying portfolio provided steady dividends, backed by decent earnings growth and cash generation. Furthermore, balance sheets remained robust.

The Company's outperformance, which lasted until the end of September, was eroded in the fourth quarter, primarily by the small exposure to China and the Company's holdings in Hong Kong. Its portfolio does not hold Chinese banks, a large part of the comparative index, and they rebounded on the back of looser monetary policy to help boost economic growth. Among these policy moves were a cut in interest rates, lower bank loan-to-deposit ratios and a liquidity injection, all of which helped to mask concerns over local banks' asset quality and potential losses. However, unless there are substantial market reforms that inspire greater confidence in the banks' ability to operate commercially, it is unlikely that we would change our stance on introducing them to the portfolio. Similarly, this goes for Chinese insurance firms, even though they benefited from the stimulus measures.

Over the full year, your Company's banking sector holdings were a considerable drag on performance. In particular, HSBC in Hong Kong detracted. Weak economic sentiment in the bank's core markets continued to weigh on earnings. Its profits were also hampered by higher compliance costs and provisions for various fines. The bank has a big global retail presence, with over US$1 trillion in deposits. As it restructures, earnings could face more near-term pressure, but looking ahead, it should benefit from the normalisation of interest rates and an economic recovery in its core markets. Meanwhile, Standard Chartered, also a holding, continued to face headwinds. The lender warned that profits would be hurt by unexpected commodities-related provisions, and there is the possibility of fresh probes by US regulators into alleged sanction violations. Some of its problems are cyclical and should be resolved in the medium term. More structural ones will require management to reprioritise investments, divest non-core businesses and streamline riskier portfolios. We think Standard Chartered's advantage lies in its peerless focus on emerging markets, replete with banking licences and long-term customer relationships, something that cannot be easily replicated, and it is still an exciting franchise. In recent top management changes Bill Winters will replace Peter Sands as CEO in June. Meanwhile, group executive director Jaspal Bindra will step down this year and chairman John Peace will follow suit in 2016. New independent directors will also be appointed. These changes are no surprise and we believe they are important steps in strengthening the bank and positioning it for an emerging markets recovery.

Elsewhere in Hong Kong, Giordano suffered from a difficult operating environment, particularly in China. However, the clothing retailer is revamping its cost base and closing unprofitable shops. Notably, it still has a very strong balance sheet. The dividend was cut but the yield still remains attractive. Retail sales in the US were also subdued, and this weighed on Li & Fung. However, we are positive about the firm's renewed focus on global supply-chain management, after it spun off its brands management business in the form of Global Brands Group.

India and Indonesia were among the top performing markets as they rode on a wave of elections euphoria. Pro-reform candidates in both countries were elected into power and made some headway in keeping their promises to cut corruption and bureaucracy, while boosting infrastructure spending. However, the portfolio does not have exposure to India, as companies there generally do not pay out much of their earnings in dividends, preferring to reinvest cash. The Indonesian holding in coal producer, Indo Tambangraya Mega, was weighed down by falling coal prices owing to slower demand from China. However, the firm is still cash generative and profitable due to its low cost base.

The Malaysian stockmarket fell mainly owing to the sharp fall in oil prices, as the country is a net oil exporter. The stock price of our holding in brewer Guinness Anchor was affected by fears of a weaker outlook for consumer spending and by speculation of a hike in excise duties on alcohol to help the government compensate for the growing budget deficit. We think that the firm's robust cash generation and strong balance sheet will continue to support its attractive dividend payments over the longer term. Management has also embarked on cost cutting and improving productivity.

On a positive note, the portfolio's significant exposure to Thailand benefited performance as investors reacted positively to the military coup, which, outwardly at least, restored the semblance of stability and allowed the resumption of government spending on infrastructure. Our holdings of local utility, Electricity Generating, and Hana Microelectronics posted solid results and the share price of our investment in Advanced Info Service rose on hopes that the new government would restart the auction process for 3G spectrum licenses. The firm's results were underpinned by robust non-voice revenues and stable margins. It also maintained its 100% dividend payout policy.

Conversely, the lack of exposure to Korea aided performance as growth slowed and export demand weakened. Consumer sentiment was also subdued. The portfolio does not hold Korean stocks as dividend yields tend to be low.

Singapore rose in line with the benchmark and Singapore Post was a key contributor. The firm continues to invest in regional e-commerce capabilities and Chinese industry giant Alibaba bought a strategic stake. We welcome this development and think that Singapore Post should be well-positioned to benefit from the fast-growing e-commerce opportunities in the region.

We also invest in bonds when we know the underlying issuer well, and see attractive yields. The exposure to fixed income benefited performance, in particular the bond issued by Sri Lankan DFCC Bank. The bond was priced with a good yield, and rallied in line with the local stockmarket on improved growth sentiment.

Portfolio Activity

Over the year, we sold Singapore Press Holdings, Takeda Pharmaceutical and Global Brands Group. Singapore Press Holdings' core newspaper business has been in gradual decline. In addition, the hidden value in the property business was largely realised after it was spun off and cash was returned to shareholders in the form of a special dividend. For Takeda Pharmaceutical, we were concerned over its ongoing lawsuits involving its diabetes drug Actos and threats to its current portfolio from generic drug manufacturers. With Global Brands Group, we had received our shares through the holding in Li & Fung, but found its dividend yield not sufficiently attractive.

Against this, we introduced Indonesia-based coal miner Indo Tambangraya Megah, mining giant Rio Tinto and emerging markets-focused lender Standard Chartered. Indo Tambangraya Megah has a robust balance sheet to support its dividend policy, and its largest shareholder Thai-listed Banpu would welcome the dividend income. With Rio Tinto, we remain confident that management will improve capital management, while Standard Chartered was also trading at attractive valuations at the time. Furthermore, we subscribed to OCBC's rights issue, as the core holding has a solid track record of being conservatively managed, plus the Wing Hang acquisition in Hong Kong will enable the bank to extend its business in North Asia effectively.

In fixed income, we subscribed to Green Dragon Gas' bond issue in view of its attractive yield. We have followed the Chinese gas producer for some time and hence understand the business and underlying risks.

Outlook

We expect the overall business environment in Asia to remain challenging as global growth remains sluggish. Earnings growth for 2015 will likely be in the single-digits, amid continued volatility spurred by central bank action. At the time of writing a series of interest rate cuts and stimulus measures by central banks, including, Australia, Canada, China and Europe, are likely to intensify the search for yield. This should favour companies that continue to pay out attractive dividends. In terms of the portfolio, valuations look reasonable versus regional benchmarks and developed markets, with a price-to-earnings ratio of 14.4 times for 2014, and a forecast of 14 times for 2015. Overall, the Company's holdings are relatively defensive with robust cash generation and solid balance sheets to support dividend payments.

Aberdeen Asset Management Asia Limited

24 March 2015

STRATEGIC REPORT - RESULTS

Financial Highlights

	31 December 2014	31 December 2013	% change
Total assets	£414,538,000	£384,136,000	+7.9
Total equity shareholders' funds (net assets)	£384,868,000	£371,117,000	+3.7
Market capitalisation	£388,824,000	£377,780,000
Share price Ordinary share (mid market)	199.88p	195.00p	+2.5
Net asset value per Ordinary share	197.84p	191.56p	+3.3
Premium to net asset value per Ordinary share	1.0%	1.8%
MSCI AC Asia Pacific ex Japan Index (currency adjusted, capital gains basis)	560.65	528.87	+6.0
Net gearing{A}	6.8%	2.6%
Dividend and earnings
Total return per Ordinary share{B}	14.17p	(6.69p)
Revenue return per Ordinary share{B}	8.24p	8.23p	+0.1
Dividends per Ordinary share{C}	8.00p	7.90p	+1.3
Dividend cover per Ordinary share	1.03	1.04
Revenue reserves{D}	£7.25m	£6.81m
Ongoing charges{E}
Ongoing charges ratio	1.25%	1.24%
{A}     Calculated in accordance with AIC guidance "Gearing Disclosures post RDR"
{B}     Measures the relevant earnings for the year divided by the weighted average number of Ordinary shares in issue (see Statement of Comprehensive Income).
{C}     The figure for dividends reflects the years in which they were earned (see note 8 to the financial statements).
{D}     The revenue reserves figure takes account of the fourth interim dividend amounting to £5,058,000 (2013 - fourth interim amounting to £4,843,000).
{E}     Ongoing charges have 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.

Performance (total return)

	1 year	3 year	5 year	Since launch{A}
	% return	% return	% return	% return
Share price (Ordinary)	+6.7	+33.0	+78.6	+175.8
Net asset value (diluted)	+7.6	+34.7	+76.6	+178.7
MSCI AC Asia Pacific ex Japan Index (currency adjusted)	+9.5	+30.6	+36.0	+127.5
All figures are for total return and assume re-investment of net dividends.
{A} Launch being 20 December 2005.

Dividends per Ordinary Share

	Rate	xd date	Record date	Payment date
First interim 2014	1.80p	30 April 2014	2 May 2014	16 May 2014
Second interim 2014	1.80p	16 July 2014	18 July 2014	22 August 2014
Third interim 2014	1.80p	23 October 2014	24 October 2014	17 November 2014
Fourth interim 2014	2.60p	22 January 2015	23 January 2015	18 February 2015
	______
2014	8.00p
	______
First interim 2013	1.80p	24 April 2013	26 April 2013	17 May 2013
Second interim 2013	1.80p	17 July 2013	19 July 2013	23 August 2013
Third interim 2013	1.80p	23 October 2013	25 October 2013	15 November 2013
Fourth interim 2013	2.50p	15 January 2014	17 January 2014	18 February 2014
	______
2013	7.90p
	______

DIRECTORS' REPORT

Introduction

The Directors present their Report and the audited financial statements for the year ended 31 December 2014.

The current Directors, Messrs Peter Arthur, Duncan Baxter, Andrey Berzins, Charles Clarke, Hugh Young and Dr Ana Armstrong held office throughout the year and were the only Directors in office during the year.

The Company and its Investment Policy

The business of the Company is that of an investment company investing in the Asia Pacific region. The investment policy and objective of the Company is set out in the Strategic Report.  The primary aim of the Company is to provide investors with a total return primarily through investing in Asian Pacific securities, including those with an above average yield.  Within its overall investment objective, the Company aims to grow its dividends over time. 

A review of the Company's activities is given in the Strategic Report. This includes the overall strategy of the Company and its principal activities, main risks faced by the Company, likely future developments of the business and the details of any issues of Ordinary Shares for cash by the Company.

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 and is an Alternative Investment Fund (within the meaning of Regulation 3 of the Alternative Investment Fund Regulations).  The Company has no employees and the Company makes no political donations. The Ordinary Shares are admitted to the Official List in the premium segment and are traded on the London Stock Exchange's Main Market.

The Company is a member of the Association of Investment Companies ("AIC").

The Company intends to manage its affairs so as to be a qualifying investment for inclusion in the stocks and shares component of an Individual Savings Account ('ISA') and it is the Directors' intention that the Company should continue to be equivalent to a qualifying trust.

Results and Dividends

Details of the Company's results and dividends are shown under Financial Highlights above and in note 8 to the Financial Statements. Interim dividends were paid on a quarterly basis in May, August, November 2014 and February 2015. The Board believes that it is preferable for shareholders to receive regular interim dividend payments on a quarterly basis and accordingly no final dividend is declared and shareholders are not required to wait until approval is given at the AGM for any payments. Dividends are paid to the extent that they are covered by the Company's revenue reserves.  As at 31 December 2014 the Company's revenue reserves (adjusted for the payment of the fourth interim dividend) amounted to £7.25 million (approximately 3.7p per Ordinary Share).

Management Arrangements

The Company has an agreement with Aberdeen Private Wealth Management Limited, subject to six months' notice, for the provision of management services, details of which are shown in note 5 to the financial statements.  The Directors review the terms of the Management Agreement on a regular basis and have confirmed that, due to the investment skills, experience and commitment of the Investment Manager, in their opinion the continuing appointment of Aberdeen Private Wealth Management Limited, on the terms agreed, is in the interests of shareholders as a whole.

Ordinary Share Capital

As at 31 December 2014 there were 194,533,389 Ordinary Shares in issue. During the year the Company issued a total of 800,000 new Ordinary Shares for cash at a premium to the prevailing NAV at the time of issue. 

Directors

The Directors' beneficial holdings are disclosed in the Directors' Remuneration Report. No Director has a service contract with the Company.  The Directors' interests in contractual arrangements with the Company are as shown in note 18 to the financial statements. No other Directors were interested in contracts with the Company.  Details of the Directors retiring by rotation at the Annual General Meeting are disclosed in the Statement of Corporate Governance.

Directors' Authority to Allot Relevant Securities

There are no provisions under Jersey law which confer rights of pre-emption upon the issue or sale of any class of shares in the Company.  However, the Company has a premium listing on the London Stock Exchange and is required to offer pre-emption rights to its shareholders. Accordingly, the Articles of Association contain pre-emption provisions similar to those found under UK law in satisfaction of the Listing Rules requirements.  Ordinary Shares will only be issued at a premium to the prevailing net asset value per Ordinary Share and, therefore, will not be disadvantageous to existing shareholders. Any future issues of Ordinary Shares will be carried out in accordance with the Listing Rules. 

Unless previously disapplied by special resolution, in accordance with the Listing Rules, the Company is required to first offer any new Ordinary Shares or securities (or rights to subscribe for, or to convert or exchange into, Ordinary Shares) proposed to be issued for cash to shareholders in proportion to their holdings in the Company.  In order to continue with such Ordinary Share issues, as in previous years, your Board is also proposing that its annual disapplication of the pre-emption rights is renewed so that the Company may continue to issue Ordinary Shares as and when appropriate. Accordingly, Resolution 10, a Special Resolution, proposes a disapplication of the pre-emption rights in respect of 10% of the Ordinary Shares in issue, set to expire on the earlier of eighteen months from the date of the resolution or at the conclusion of the Annual General Meeting to be held in 2016.

Purchase of the Company's Securities

The Directors aim to operate an active discount management policy through the use of Ordinary Share buy backs, should the Company's shares trade at a significant discount. The objective being to maintain the price at which the Ordinary Shares trade relative to their underlying net asset value at a discount of no more than 5%.  Purchases of Ordinary Shares will only be made through the market for cash at prices below the prevailing net asset value per Ordinary Share (which, subject to shareholder approval at the AGM will be the latest estimated net asset value per Ordinary Share) where the Directors believe such purchases will enhance shareholder value and are likely to assist in narrowing any discount to net asset value at which the Ordinary Shares may trade.

Resolution 9, a Special Resolution, will be proposed to renew the Directors' authority to make market purchases of the Company's Ordinary Shares in accordance with the provisions of the Listing Rules of the Financial Conduct Authority. Accordingly, the Company will seek authority to purchase up to a maximum of 29,160,555 Ordinary Shares (representing 14.99% of the current issued Ordinary Share capital). The authority being sought will expire at the conclusion of the Annual General Meeting in 2016 unless such authority is renewed prior to such time. Any Ordinary Shares purchased in this way will be cancelled and the number of Ordinary Shares will be reduced accordingly, or the Ordinary Shares will be held in treasury.  During the year and subsequent to the period end no Ordinary Shares have been purchased in the market for cancellation or treasury.

Under Jersey company law, Jersey companies can either cancel shares or hold them in treasury following a buy-back of shares.  Repurchased shares will only be held in treasury if the Board considers that it will be in the interest of the Company and for the benefit of all shareholders.  Any future sales of Ordinary Shares from treasury will only be undertaken at a premium to the prevailing net asset value per Ordinary Shares.

Amendment to Articles Re: Offshore Board Meetings

Following a recent relaxation in approach by the UK government to the holding of board meetings in the UK by non-UK incorporated alternative investment funds for the purpose of determining tax residency, your Board is seeking to remove current restrictions on the location of its Board meetings contained in the Company's articles of association. Previously, holding a Board meeting in the UK gave rise to the risk that the Company would be regarded as tax resident in the UK. However, changes introduced in the UK during 2014 mean that this is no longer the case. Whilst the Directors have no current plans to change their practice of holding their Board meetings offshore, the Board believes it is in shareholders' best interests for the Board to have maximum flexibility regarding the location of its Board meetings. As a consequence, the Directors are proposing that all restrictions on the location of Board meetings, and the non-validity of Board resolutions passed at meetings held in the UK or Ireland, are removed from the articles of association.  Accordingly, Resolution 11, a Special Resolution to adopt new articles of association containing such amendments, is being proposed at the AGM. No other changes are being proposed to the articles of association at this time and therefore the new articles of association proposed to be adopted are the same as the existing articles of association in all other respects.

A copy of the new articles of association, together with a blacklined version showing the proposed changes, will be available for inspection at the offices of Aberdeen Asset Management PLC, Bow Bells House, 1 Bread Street, London EC 4M 9HH from the date of the Annual Report until the close of the AGM.

Recommendation

Your Board considers Resolutions 9 to 11 to be in the best interests of the Company and its members as a whole.  Accordingly, your Board recommends that shareholders should vote in favour of Resolutions 9 to 11 to be proposed at the Annual General Meeting, as they intend to do in respect of their own beneficial shareholdings which amount to 217,837 Ordinary Shares.

Directors' & Officers' Liability Insurance

The Company maintains insurance in respect of Directors' & Officers' liabilities in relation to their acts on behalf of the Company. Furthermore, each Director of the Company shall be entitled to be indemnified out of the assets of the Company to the extent permitted by law against all costs, charges, losses, expenses and liabilities incurred by him or her in the actual or purported execution and/or discharge of his or her duties and/or the exercise or purported exercise of his or her powers and/or otherwise in relation to or in connection with his or her duties, powers or office. These rights are included in the Articles of Association of the Company and the Company has granted indemnities to the Directors on this basis.

Additional Information

There are no restrictions on the transfer of Ordinary Shares in the Company other than certain restrictions which may from time to time be imposed by law (for example, insider trading and market abuse restrictions).

The Company is not aware of any agreements between shareholders that may result in restriction on the transfer of securities and/or voting rights.

The rules governing the appointment of Directors are set out in the Statement of Corporate Governance. The Company's Articles of Association may only be amended by a special resolution at a general meeting of shareholders.

The Company is not aware of any significant agreements to which it is a party that take effect, alter or terminate upon a change of control of the Company following a takeover.

Other than the management and administration contracts with the Investment Manager, set out earlier in the report, the Company is not aware of any contractual or other agreements which are essential to its business which ought to be disclosed in the Directors' Report.

Corporate Governance

The Statement of Corporate Governance forms part of this Directors' Report and covers the Company's compliance with the UK Corporate Governance Code.

Going Concern

The Directors have undertaken a rigorous review of the Company's ability to continue as a going concern.  The Company's assets consist primarily of a diverse portfolio of listed equity shares which in most circumstances are realisable within a very short timescale.

The Directors are mindful of the principal risks and uncertainties disclosed in the strategic Report and have reviewed forecasts detailing revenue and liabilities and the Directors believe that the Company has adequate financial resources to continue its operational existence for the foreseeable future and at least 12 months from the date of this Annual Report. Accordingly, the Directors continue to adopt the going concern basis in preparing these financial statements.

Accountability and Audit

The respective responsibilities of the Directors and the Auditor in connection with the financial statements are set out in the Annual Report.

Each Director confirms that, so far as he or she is aware, there is no relevant audit information of which the Company's Auditor is unaware, and he or she has taken all reasonable steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Company's Auditor is aware of that information.  Additionally there are no important events since the year end other than as disclosed in the notes to the financial statements.

Independent Auditor

Our Auditor, Ernst & Young LLP, has indicated its willingness to remain in office. The Directors will place a Resolution before the Annual General Meeting to re-appoint them as independent Auditor for the ensuing year, and to authorise the Directors to determine their remuneration.

Peter Arthur

Chairman

24 March 2015

1^st Floor, Sir Walter Raleigh House

48 - 50 Esplanade, Jersey JE2 3QB

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:

-      select suitable accounting policies and then apply them consistently;

-      make judgments and estimates that are reasonable and prudent;

-      specify which generally accepted accounting principles have been adopted in their preparation;

-      prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. and,

-      assess whether the Annual Report and financial statements, taken as a whole, is 'fair, balanced and understandable'.

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 listed in the Annual Report, being the persons responsible, hereby confirm to the best of their knowledge:

-      that the financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"), as adopted by the International Accounting Standards Board ("IASB"),and give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company;

-      that in the opinion of the Directors, the Annual Report and financial statements taken as a whole, is fair, balanced and understandable and it provides the information necessary to assess the Company's performance, business model and strategy; and

-      the Strategic Report, including the Chairman's Statement and the Investment Manager's Review, include 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 and on behalf of the Board

Peter Arthur

Chairman

24 March 2015

1^st Floor, Sir Walter Raleigh House

48 - 50 Esplanade

Jersey JE2 3QB

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

STATEMENT OF COMPREHENSIVE INCOME

		Year ended			Year ended
		31 December 2014			31 December 2013
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Investment income	4
Dividend income		17,254	-	17,254	17,544	-	17,544
Interest income		2,079	-	2,079	1,192	-	1,192
		_______	_______	_______	_______	_______	______
Total revenue		19,333	-	19,333	18,736	-	18,736
Gains/(losses) on investments designated at fair value through profit or loss	10	-	15,582	15,582	-	(23,927)	(23,927)
Net currency (losses)/gains		-	(1,631)	(1,631)	-	98	98
		_______	_______	_______	_______	_______	______
		19,333	13,951	33,284	18,736	(23,829)	(5,093)
		_______	_______	_______	_______	_______	______
Expenses
Investment management fee	5	(1,506)	(2,259)	(3,765)	(1,578)	(2,368)	(3,946)
Other operating expenses	6	(994)	-	(994)	(995)	-	(995)
		_______	_______	_______	_______	_______	______
Profit/(loss) before finance costs and tax		16,833	11,692	28,525	16,163	(26,197)	(10,034)
		_______	_______	_______	_______	_______	______
Finance costs	7	(112)	(169)	(281)	(88)	(133)	(221)
		_______	_______	_______	_______	_______	______
Profit/(loss) before tax		16,721	11,523	28,244	16,075	(26,330)	(10,255)
Tax expense	2(d)	(737)	(17)	(754)	(805)	(2)	(807)
		_______	_______	_______	_______	_______	______
Profit/(loss) for the year		15,984	11,506	27,490	15,270	(26,332)	(11,062)
		_______	_______	_______	_______	_______	______
Profit/(loss) for the year analysed as follows:
Attributable to equity shareholders		15,984	11,506	27,490	15,270	(27,696)	(12,426)
Attributable to C shares		-	-	-	-	1,364	1,364
		_______	_______	_______	_______	_______	______
Total		15,984	11,506	27,490	15,270	(26,332)	(11,062)
		_______	_______	_______	_______	_______	______
Earnings per Ordinary share (pence):	9
Basic		8.24	5.93	14.17	8.23	(14.92)	(6.69)
		_______	_______	_______	_______	_______	______
Earnings per C share (pence):	9
Basic and diluted		n/a	n/a	n/a	n/a	2.27	2.27
		_______	_______	_______	_______	_______	______
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 of Aberdeen Asian Income Fund Limited.  There are no non-controlling 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.

BALANCE SHEET

		As at	As at
		31 December	31 December
		2014	2013
	Notes	£'000	£'000
Non-current assets
Investments designated at fair value through profit or loss	10	410,259	380,554
Current assets
Cash and cash equivalents		3,671	3,463
Other receivables	11	1,196	983
		_________	_________
		4,867	4,446
		_________	_________
Current liabilities
Bank loans	12	(29,670)	(13,019)
Other payables	12	(588)	(864)
		_________	_________
		(30,258)	(13,883)
		_________	_________
Net current liabilities		(25,391)	(9,437)
		_________	_________
Net assets		384,868	371,117
		_________	_________
Stated capital and reserves
Stated capital	13	194,533	193,733
Capital redemption reserve		1,560	1,560
Capital reserve	14	176,463	164,176
Revenue reserve	14	12,312	11,648
		_________	_________
Equity shareholders' funds		384,868	371,117
		_________	_________
Net asset value per Ordinary share (pence):	15	197.84	191.56
		_________	_________

STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2014
			Capital
		Stated	redemption	Capital	Revenue	Retained
		capital	reserve	reserve	reserve	earnings	Total
		£'000	£'000	£'000	£'000	£'000	£'000
Opening balance		193,733	1,560	164,176	11,648	-	371,117
Issue of Ordinary shares		800	-	781	-	-	1,581
Profit for the year		-	-	-	-	27,490	27,490
Transferred from retained earnings to capital reserve{A}		-	-	11,506	-	(11,506)	-
Transferred from retained earnings to revenue reserve		-	-	-	15,984	(15,984)	-
Dividends paid		-	-	-	(15,320)	-	(15,320)
		______	______	______	_______	______	______
Balance at 31 December 2014		194,533	1,560	176,463	12,312	-	384,868
		______	______	______	_______	______	______
For the year ended 31 December 2013
			Capital
	Stated	Warrant	redemption	Capital	Revenue	Retained
	capital	reserve	reserve	reserve	reserve	earnings	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Opening balance	151,182	357	1,560	147,830	10,358	-	311,287
Issue of Ordinary shares via conversion of C shares	30,552	-	-	32,453	-	-	63,005
Issue of Ordinary shares	8,425	-	-	10,517	-	-	18,942
Exercise of warrants	3,574	(357)	-	1,072	-	-	4,289
Loss for the year	-	-	-	-	-	(12,426)	(12,426)
Transferred from retained earnings to capital reserve{A}	-	-	-	(27,696)	-	27,696	-
Transferred from retained earnings to revenue reserve	-	-	-	-	15,270	(15,270)	-
Dividends paid	-	-	-	-	(13,980)	-	(13,980)
	______	______	______	_______	______	______	______
Balance at  31 December 2013	193,733	-	1,560	164,176	11,648	-	371,117
	______	______	______	_______	______	______	______
{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.
The stated capital in accordance with Companies (Jersey) Law 1991 Article 39A is £259,877,000 (2013 - £258,296,000).

CASH FLOW STATEMENT

		Year ended		Year ended
		31 December 2014		31 December 2013
	Notes	£'000	£'000	£'000	£'000
Profit/(loss) for the year			27,490		(11,062)
Add back finance costs	7		281		221
Add back taxation suffered			754		807
Non cash stock dividends			(1,643)		-
(Gains)/losses on investments held at fair value through profit or loss	10		(15,582)		23,927
Net currency losses/(gains)	14		1,631		(98)
Increase in other receivables			(228)		(84)
(Decrease)/increase in other payables			(263)		303
			_______		_______
Net cash inflow from operating activities before finance costs and tax			12,440		14,014
Bank and loan interest paid			(294)		(220)
Overseas taxation suffered			(739)		(822)
			_______		_______
Net cash inflow from operating activities			11,407		12,972
Investing activities
Purchases of investments		(56,266)		(41,544)
Sales of investments		43,786		18,404
		_______		_______
Net cash outflow from investing activities			(12,480)		(23,140)
			_______		_______
Financing activities
Proceeds from issue of Ordinary shares	13	1,581		18,942
Proceeds from exercise of warrants	13	-		4,289
Dividends paid	8	(15,320)		(13,980)
Loans drawn down		14,927		-
		_______		_______
Net cash inflow from financing activities			1,188		9,251
			_______		_______
Net increase/(decrease) in cash and cash equivalents			115		(917)
Cash and cash equivalents of the start of the year			3,463		4,532
Effect of foreign exchange rate changes			93		(152)
			_______		_______
Cash and cash equivalents at the end of the year	2,16		3,671		3,463
			_______		_______

NOTES TO THE FINANCIAL STATEMENTS

For the year ended 31 December 2014
1.	Principal activity
	The Company is a closed-end investment company incorporated in Jersey, with its Ordinary 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 Company's assets consist substantially of equity shares in companies listed on recognised stock exchanges and in most circumstances are realisable within a short timescale. The Board has set limits for borrowing and regularly reviews actual exposures, cash flow projections and compliance with banking covenants. The Directors believe that the Company has adequate resources to continue in operational existence for the foreseeable future and, for the above reasons, they continue to adopt the going concern basis in preparing the financial statements.
		The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates which requires management to exercise its judgement in the process of applying the accounting policies. These judgements and estimates include but are not limited to the assessment of the Company's ability to continue as a going concern, the measurement of fair value of financial instruments and the corresponding classification in the fair value hierarchy as well as the impairment of assets and the recognition and measurement of provisions and contingent liabilities under IAS 37. Actual results may differ from these estimates.
		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 2014.
		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:
		-	IFRS 9 - Financial Instruments (revised, early adoption permitted) (effective for annual periods beginning on or after 1 January 2018).
		The following amendments to Standards are all effective for annual periods beginning on or after 1 January 2016.
		-	IFRS 10 and IAS 28 - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
		-	IFRS 15 - Revenue from Contracts with Customers
		-	IAS 1 - Disclosure Initiative
		-	IAS 16 and IAS 38 - Clarification of Acceptable Methods of Depreciation and Amortisation
		-	IAS 27 - Investment Entities: Applying the Consolidation Exception
		In addition, under the Annual Improvements to IFRSs 2010 -2012 and 2011 - 2013 Cycles, a number of Standards are included for annual periods beginning on or after 1 July 2014.
		Under the Annual Improvements to IFRSs 2012 - 2014 Cycle, a number of Standards are included for annual periods beginning on or after 1 January 2016.
		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 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 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 recognised on an accruals basis.
	(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 2014 will be subject to Jersey income tax at the rate of 0% (2013 - 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 at 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.
		Purchases and sales of investments are 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.
		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/(losses) on investments designated 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 paid.
	(i)	Nature and purpose of reserves
		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
		Borrowings are stated at the amount of the net proceeds immediately after draw down plus cumulative finance costs less cumulative payments. The finance cost of borrowings is allocated to years over the term of the debt at a constant rate on the carrying amount and charged 40% to revenue and 60% to capital to reflect the Company's investment policy and prospective revenue 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 Ordinary shares and on dividend distributions.
		Issuance, acquisition and resale of Ordinary shares are accounted for as equity transactions. Upon issuance of Ordinary 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.

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 2014	31 December 2013
		£'000	£'000
	Asia Pacific region	18,261	17,650
	United Kingdom	1,072	1,086
		_______	_______
		19,333	18,736
		_______	_______

		Year ended	Year ended
		31 December 2014	31 December 2013
4.	Income	£'000	£'000
	Income from investments
	Overseas dividends	14,772	16,466
	Franked income	839	1,078
	Stock dividends	1,643	-
		_______	_______
		17,254	17,544
		_______	_______
	Interest income
	Bond interest	2,072	1,184
	Deposit interest	7	8
		_______	_______
		2,079	1,192
		_______	_______
	Total income	19,333	18,736
		_______	_______

		Year ended			Year ended
		31 December 2014			31 December 2013
		Revenue	Capital	Total	Revenue	Capital	Total
5.	Investment management fee	£'000	£'000	£'000	£'000	£'000	£'000
	Investment management fee	1,506	2,259	3,765	1,578	2,368	3,946
		______	______	______	______	______	______
	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 investment 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 £322,000 (2013 - £636,000). The investment management fees are charged 40% to revenue and 60% to capital in line with the Board's expected long term returns.

		Year ended			Year ended
		31 December 2014			31 December 2013
		Revenue	Capital	Total	Revenue	Capital	Total
6.	Other operating expenses	£'000	£'000	£'000	£'000	£'000	£'000
	Directors' fees	160	-	160	160	-	160
	Promotional activities	224	-	224	239	-	239
	Auditor's remuneration:
	- statutory audit	29	-	29	25	-	25
	- interim accounts review	5	-	5	6	-	6
	Custodian charges	125	-	125	134	-	134
	Secretarial and administration fee	131	-	131	127	-	127
	Other	320	-	320	304	-	304
		______	______	______	______	______	______
		994	-	994	995	-	995
		______	______	______	______	______	______
	The Company has an agreement with Aberdeen Asset Managers Limited ("AAM") for the provision of promotional activities 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 £215,000 (2013 - £250,000).  A balance of £108,000 (2013 - £63,000) was payable to AAM at the year end.
	In addition, APWM is entitled to an annual company secretarial and administration fee of £131,000 (2013 - £127,000), which increases annually in line with any increases in the Retail Price Index. A balance of £33,000 (2013 - £32,000) was payable to APWM at the year end.
	No fees have been paid to Ernst & Young LLP during the period other than those reflected in the table above.

		Year ended			Year ended
		31 December 2014			31 December 2013
		Revenue	Capital	Total	Revenue	Capital	Total
7.	Finance costs	£'000	£'000	£'000	£'000	£'000	£'000
	On bank loans	112	169	281	88	133	221
		______	______	______	______	______	______
	Finance costs are charged 40% to revenue and 60% to capital as disclosed in the accounting policies.

		Year ended	Year ended
		31 December 2014	31 December 2013
8.	Dividends on Ordinary equity shares	£'000	£'000
	Amounts recognised as distributions to equity holders in the year:
	Fourth interim dividend for 2013 - 2.50p per Ordinary share (2012 - 2.50p)	4,843	3,780
	First interim dividend for 2014 - 1.80p per Ordinary share (2013 - 1.80p)	3,487	3,319
	Second interim dividend for 2014 - 1.80p per Ordinary share (2013 - 1.80p)	3,495	3,434
	Third interim dividend for 2014 - 1.80p per Ordinary share (2013 - 1.80p)	3,495	3,447
		______	______
		15,320	13,980
		______	______
	The table below sets out the total dividends declared in respect of the financial year. The revenue available for distribution by way of dividend for the year is £15,984,000 (2013 - £15,270,000).
		2014	2013
		£'000	£'000
	First interim dividend for 2014 - 1.80p per Ordinary share (2013 - 1.80p)	3,487	3,319
	Second interim dividend for 2014 - 1.80p per Ordinary share (2013 - 1.80p)	3,495	3,434
	Third interim dividend for 2014 - 1.80p per Ordinary share (2013 - 1.80p)	3,495	3,447
	Fourth interim dividend for 2014 - 2.60p per Ordinary share (2013 - 2.50p)	5,058	4,843
		______	______
		15,535	15,043
		______	______
	The fourth interim dividend for 2014, amounting to £5,058,000 (2013 - fourth interim dividend of £4,843,000), has not been included as a liability in these financial statements as it was announced and paid after 31 December 2014.

9.	Earnings per share
	Ordinary shares
	The earnings per Ordinary share is based on the net profit after taxation of £27,490,000 (2013 - loss of £12,426,000) and on 194,024,759 (2013 - 185,624,584) 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 2014			31 December 2013
	Basic	Revenue	Capital	Total	Revenue	Capital	Total
	Net profit/(loss) (£'000)	15,984	11,506	27,490	15,270	(27,696)	(12,426)
	Weighted average number of Ordinary shares in issue			194,024,759			185,624,584
	Return per Ordinary share (pence)	8.24	5.93	14.17	8.23	(14.92)	(6.69)
		______	______	______	______	______	______
		Year ended			Year ended
		31 December 2014			31 December 2013
	C shares	Revenue	Capital	Total	Revenue	Capital	Total
	Net profit (£'000)	n/a	n/a	n/a	n/a	1,364	1,364
	Weighted average number of C shares in issue			-			60,000,000
	Return per C share (pence)	n/a	n/a	n/a	n/a	2.27	2.27
		______	______	______	______	______	______
	All of the 60,000,000 C shares were converted into Ordinary shares on 4 February 2013.

		Year ended	Year ended
		31 December 2014	31 December 2013
10.	Investments designated at fair value through profit or loss	£'000	£'000
	Opening valuation	380,554	381,705
	Movements in the year:
	Purchases at cost	57,909	41,180
	Sales - proceeds	(43,786)	(18,404)
	Sales - realised gains	10,567	7,124
	Increase/(decrease) in investment holdings fair value	5,015	(31,051)
		______	______
	Closing valuation at 31 December 2014	410,259	380,554
		______	______
		£'000	£'000
	Closing book cost	341,350	316,660
	Closing investment holdings fair value gains	68,909	63,894
		______	______
		410,259	380,554
		______	______
	The portfolio valuation	£'000	£'000
	Listed on recognised stock exchanges at market valuation:
	Equities - UK	19,617	11,046
	Equities - overseas	365,355	350,248
	Bonds - overseas	25,287	19,260
		______	______
	Total	410,259	380,554
		______	______
		Year ended	Year ended
		31 December 2014	31 December 2013
	Gains/(losses) on investments designated at fair value through profit or loss	£'000	£'000
	Realised gains on sales of investments	10,567	7,124
	Increase/(decrease) in investment holdings fair value	5,015	(31,051)
		______	______
		15,582	(23,927)
		______	______
	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 2014	31 December 2013
		£'000	£'000
	Purchases	122	71
	Sales	66	21
		______	______
		188	92
		______	______

		2014	2013
11.	Debtors: amounts falling due within one year	£'000	£'000
	Prepayments and accrued income	1,196	968
	Overseas withholding tax recoverable	-	15
		______	______
		1,196	983
		______	______
	None of the above assets are past their due date or impaired.

12.	Creditors: amounts falling due within one year
	(a)	Bank loans
		At the year end, the Company had the following unsecured bank loans:
			2014			2013
				Local			Local
				currency	Carrying		currency	Carrying
			Interest	principal	amount	Interest	principal	amount
			rate	amount	£'000	rate	amount	£'000
		Hong Kong Dollar	1.189	252,842,000	20,910	1.670	81,842,000	6,373
		United States Dollar	1.115	11,008,000	7,060	1.559	11,008,000	6,646
		Sterling	1.454	1,700,000	1,700	-	-	-
					______			______
					29,670			13,019
					______			______
		The bank loans outstanding at 31 December 2014 are carried at the closing exchange rate at the year end, resulting in a cumulative foreign exchange loss of £81,000 (2013 - gain of £336,000) against the original book cost of these loans. The fair value of borrowings is deemed to be the same as the carrying value due to their short term nature.
		At the date of signing this report, loans of HK$252,842,000, US$11,008,000 were rolled forward to 23 April 2015 at fixed interest rates of 1.18643% and 1.12325% respectively. Subsequent to the year end the £1,700,000 loan was reduced to £250,000 and rolled forward to 23 April 2015 at a fixed interest rate of 1.45319%.
							2014	2013
	(b)	Other payables					£'000	£'000
		Other amounts due					588	864
							______	______

		2014				2013
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	193,733,389		193,733		151,182,346		151,182
	Ordinary shares issue via conversion of C shares	-		-		30,552,000		30,552
	Ordinary shares issued in the year	800,000		800		8,425,000		8,425
	Warrants exercised	-		-		3,574,043		3,574
		_________		_________		_________		_________
	At 31 December	194,533,389		194,533		193,733,389		193,733
		_________		_________		_________		_________
	During the year 800,000 (2013 - 8,425,000) Ordinary shares were issued by the Company at a total consideration received, including transaction costs, of £1,581,000 (2013 - receipt of £18,942,000).
	For each Ordinary share issued £1 is allocated to stated capital, with the balance taken to the capital reserve.
	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 ended 31 December 2013 all remaining warrants were exercised into Ordinary shares at a total consideration of £4,289,000.
	Following the issue of Ordinary shares during the year 194,533,389 (2013 - 193,733,389) Ordinary shares remain in issue. Further details of the Ordinary share issues are contained in the Directors' Report.
			2014				2013
	C shares		Number		£'000		Number		£'000
	Issued and fully paid
	Balance brought forward		-		-		60,000,000		59,073
	Converted into Ordinary shares		-		-		(60,000,000)		(59,073)
			______		______		______		______
	At 31 December		-		-		-		-
			______		______		______		______
	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.
	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 4 February 2013, the Company converted 60,000,000 C shares into 30,552,000 Ordinary shares at a conversion ratio of 0.5092 Ordinary shares to every 1.0000 C share held. The calculation ratio was based on the respective net asset values of the C shares and the Ordinary shares at close of business on the calculation date, 11 January 2013, and on this date the financial liability in respect of the C shares was deemed to have been extinguished. The premium of £32,453,000 arising on the issue of Ordinary shares has been allocated to the capital reserve. The C shares were permanently removed from trading on 4 February 2013.
	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.
	The Ordinary shares carry the right to receive all dividends declared by the Company or the Directors.
	On a winding-up, provided the Company has satisfied all of its liabilities, holders of Ordinary shares are entitled to all of the surplus assets of the Company.

		2014	2013
14.	Retained earnings	£'000	£'000
	Capital reserve
	At 1 January 2014	164,176	147,830
	Unrealised currency movement on loans	(417)	77
	Currency (loss)/gain	(1,214)	21
	Movement in unrealised fair value	5,015	(32,415)
	Gain on realisation of investments	10,567	7,124
	Conversion of C shares	-	32,453
	Costs charged to capital	(2,445)	(2,503)
	Issue of Ordinary shares	781	10,517
	Warrant exercise	-	1,072
		______	______
	At 31 December 2014	176,463	164,176
		______	______
	Revenue reserve
	At 1 January 2014	11,648	10,358
	Revenue profit for the year	15,984	15,270
	Dividends paid	(15,320)	(13,980)
		______	______
	At 31 December 2014	12,312	11,648
		______	______

15.	Net asset value per share
	Ordinary shares
	The 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
		2014	2014	2013	2013
		p	£'000	p	£'000
	Ordinary shares	197.84	384,868	191.56	371,117
		______	______	______	______
	The net asset value per Ordinary share is based on 194,533,389 (2013 - 193,733,389) Ordinary shares, being the number of Ordinary 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 risk is the risk that 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.
	Management of the risk
	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 five holdings in fixed rate overseas corporate bonds, Yanlord Land Group, of £8,478,000, Yingde Gases, of £2,119,000, DFCC Bank, of £6,271,000, Green Dragon Gas of £4,690,000 and ICICI Bank of £3,729,000 (2013 - Yanlord Land Group of £8,302,000; Yingde Gases of £2,261,000 and DFCC Bank of £8,697,000). 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 17 April 2014 the Company entered into a new unsecured three year £30 million multi currency revolving facility with Scotiabank (Ireland) Limited and details of the terms and conditions of the loan are disclosed in note 12. Interest is due on all tranches at the maturity date, being 22 January 2015. 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 ability to draw down 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			Floating	Fixed
						rate is fixed					interest rate			rate	rate
	At 31 December 2014					Years					%			£'000	£'000
	Assets
	Chinese Overseas Corporate Bond					3.14					10.09			-	15,287
	Indian Overseas Corporate Bond					9.61					9.15			-	3,729
	Sri Lankan Overseas Corporate Bond					3.84					9.63			-	6,271
	Cash at bank - Sterling					-					-			2,471	-
	Cash at bank - US Dollar					-					-			701	-
	Cash at bank - Malaysian Ringitt					-					-			284	-
	Cash at bank - Taiwan Dollar					-					-			166	-
	Cash at bank - Singapore Dollar					-					-			48	-
	Cash at bank - Australian Dollar					-					-			1	-
														______	______
														3,671	25,287
														______	______
						Weighted average
						period for which					Weighted average			Floating	Fixed
						rate is fixed					interest rate			rate	rate
						Years					%			£'000	£'000
	Liabilities
	Bank loan - Hong Kong Dollar					0.06					1.19			-	(20,910)
	Bank loan - US Dollar					0.06					1.12			-	(7,060)
	Bank loan - Sterling					0.06					1.45			-	(1,700)
														______	______
														-	(29,670)
														______	______
						Weighted average
						period for which					Weighted average			Floating	Fixed
						rate is fixed					interest rate			rate	rate
	At 31 December 2013					Years					%			£'000	£'000
	Assets
	Chinese Overseas Corporate Bond					4.26					10.09			-	10,563
	Sri Lankan Overseas Corporate Bond					4.83					9.63			-	8,697
	Cash at bank - Sterling					-					-			3,369	-
	Cash at bank - Singapore Dollar					-					-			84	-
	Cash at bank - Taiwan Dollar					-					-			10	-
														______	______
														3,463	19,260
														______	______
						Weighted average
						period for which					Weighted average			Floating	Fixed
						rate is fixed					interest rate			rate	rate
						Years					%			£'000	£'000
	Liabilities
	Bank loan - Hong Kong Dollar					0.07					1.67			-	(6,373)
	Bank loan - US Dollar					0.07					1.56			-	(6,646)
														______	______
														-	(13,019)
														______	______
	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.
	The Directors have considered the potential impact of a 100 basis point movement in interest rates and concluded that it would not be material in the current year (2013 - increase/decrease by £97,000). This consideration is based on 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. A significant proportion of the Company's borrowings, as detailed in note 12, is in foreign currency as at 31 December 2014.
	Management of the risk
	The revenue account is subject to currency fluctuation arising on overseas income. The Company does not hedge this currency risk on a continuing basis but the Company may, from time to time, match specific overseas investment with foreign currency borrowings.
	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 2014										31 December 2013
			Net										Net
			monetary				Total						monetary		Total
		Equity	assets				currency			Equity			assets		currency
		investments	/(liabilities)				exposure			investments			/(liabilities)		exposure
		£'000	£'000				£'000			£'000			£'000		£'000
	Australian Dollar	73,297	1				73,298			68,435			-		68,435
	Hong Kong Dollar	57,721	(20,910)				36,811			51,182			(6,373)		44,809
	Indian Rupee	-	3,729				3,729			-			-		-
	Indonesian Rupiah	3,304	-				3,304			-			-		-
	Japanese Yen	12,856	-				12,856			19,102			-		19,102
	Malaysian Ringgit	31,310	284				31,594			36,800			-		36,800
	Singapore Dollar	119,704	48				119,752			114,805			84		114,889
	Taiwanese Dollar	19,834	166				20,000			23,048			10		23,058
	Thailand Baht	47,329	-				47,329			36,876			-		36,876
	US Dollar	-	15,199				15,199			-			12,614		12,614
		______	______				______			______			______		______
	Total	365,355	(1,483)				363,872			350,248			6,335		356,583
		______	______				______			______			______		______
	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% decrease (in the context of a 10% increase the figures below should all be read as negative) 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.
													2014		2013
													£'000		£'000
	Australian Dollar												7,330		6,844
	Hong Kong Dollar												3,681		4,481
	Indian Rupee												373		-
	Indonesian Rupiah												330		-
	Japanese Yen												1,286		1,910
	Malaysian Ringgit												3,159		3,680
	Singapore Dollar												11,975		11,489
	Taiwanese Dollar												2,000		2,306
	Thailand Baht												4,733		3,688
	US Dollar												1,520		1,261
													______		______
	Total												36,387		35,659
													______		______
	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 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, as detailed in the Annual Report respectively, 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 below, which shows that the majority 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 overseas equities at each Balance Sheet date, with all other variables held constant.
				2014									2013
				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)			36,536					(36,536)				35,025		(35,025)
				______					______				______		______
	Total profit after taxation - increase /(decrease)			36,536					(36,536)				35,025		(35,025)
				______					______				______		______
	Equity			36,536					(36,536)				35,025		(35,025)
				______					______				______		______
	(ii) Liquidity risk
	This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities, which stood at £30,258,000 (2013 - £13,883,000).
	Management of the risk
	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 £3,671,000 and £410,259,000 (2013 - £3,463,000 and £380,554,000) at the year end respectively. Short-term flexibility is achieved through the use of loan facilities.
	Maturity profile
	The following table sets out the carrying amount, by maturity, of the Company's financial instruments at the Balance Sheet date:
				Within				Within				Within		More than
				1 year				2-3 years				4-5 years		5 years	Total
	At 31 December 2014			£'000				£'000				£'000		£'000	£'000
	Fixed rate
	Bonds			-				4,690				16,868		3,729	25,287
	Bank loans			(29,679)				-				-		-	(29,679)
				______				______				______		______	______
				(29,679)				4,690				16,868		3,729	(4,392)
				______				______				______		______	______
	Floating rate
	Cash			3,671				-				-		-	3,671
				______				______				______		______	______
				Within				Within				Within		More than
				1 year				2-3 years				4-5 years		5 years	Total
	At 31 December 2013			£'000				£'000				£'000		£'000	£'000
	Fixed rate
	Bonds			-				-				19,260		-	19,260
	Bank loans			(13,041)				-				-		-	(13,041)
				______				______				______		______	______
				(13,041)				-				19,260		-	6,219
				______				______				______		______	______
	Floating rate
	Cash			3,463				-				-		-	3,463
				______				______				______		______	______
	(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.
	Management of the risk
	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 the following holdings:
	-       a Chinese overseas corporate bond issued by Yanlord Land Group. The issuers current credit rating at Moody's is Ba3;
	-       a Chinese overseas corporate bond issued by Yingde Gases. The issuers current credit rating at S&P is B; and
	-       a Chinese overseas corporate bond issued by Green Dragon Gas. The issuers current credit rating at S&P is B; and
	-       an Indian overseas corporate bond issued by ICICI Bank. The issuers current credit rating at S&P is B; and
	-       a Sri Lankan overseas corporate bond issued by DFCC Bank. The issuers current credit rating at Moody's is Ba3.
	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 ratings.
	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:
					2014								2013
					Balance					Maximum			Balance		Maximum
					Sheet					exposure			Sheet		exposure
					£'000					£'000			£'000		£'000
	Non-current assets
	Investments designated at fair value through profit or loss				410,259					25,287			380,554		19,260
	Current assets
	Cash at bank				3,671					3,671			3,463		3,463
	Other receivables				1,196					1,196			983		983
					______					______			______		______
					415,126					30,154			385,000		23,706
					______					______			______		______
	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 carried at amortised cost, using the effective interest rate method in the financial statements.
	Management of the risk
	The Board imposes borrowing limits to ensure gearing levels are appropriate to market conditions and reviews these on a regular basis. Borrowings comprise fixed rate, revolving, and uncommitted facilities. The fixed rate facilities are used to finance opportunities at low rates and, the revolving and uncommitted facilities to provide flexibility in the short-term.

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:
		2014	2013
		£'000	£'000
	Debt
	Borrowings under the multi-currency loan facility	29,670	13,019
		______	______
		2014	2013
		£'000	£'000
	Equity
	Equity share capital	194,533	193,733
	Retained earnings and other reserves	190,335	177,384
		______	______
		384,868	371,117
		______	______
	Debt as a % of net assets{A}	7.71	3.51
		______	______
	{A} The calculation above differs from the AIC recommended methodology, where debt levels are shown net of cash and cash equivalents held.
	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 Ordinary share and the Ordinary share price (ie the level of share price discount);
	-         the need for new issues of equity shares; and
	-         he 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.

18.	Related party transactions and transactions with the Manager
	Fees payable during the year to the Directors are disclosed within the Directors' Remuneration Report in the Annual Report.
	Mr H Young is a director of Aberdeen Asset Management PLC, of which Aberdeen Private Wealth Management Limited ("APWM") is a subsidiary. Management, promotional activities and secretarial and administration services are provided by APWM with details of transactions during the year and balances outstanding at the year end disclosed 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 13 'Fair Value Measurement' requires an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making measurements. The fair value hierarchy has the following levels:
	Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
	Level 2: inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly (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 2014	Note	£'000	£'000	£'000	£'000
	Financial assets at fair value through profit or loss
	Quoted equities	a)	384,972	-	-	384,972
	Quoted bonds	b)	25,287	-	-	25,287
			______	______	______	______
	Net fair value		410,259	-	-	410,259
			______	______	______	______
			Level 1	Level 2	Level 3	Total
	At 31 December 2013	Note	£'000	£'000	£'000	£'000
	Financial assets at fair value through profit or loss
	Quoted equities	a)	361,294	-	-	361,294
	Quoted bonds	b)	19,260	-	-	19,260
			______	______	______	______
	Net fair value		380,554	-	-	380,554
			______	______	______	______
	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.
	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 amounts disclosed above.
	Fair values of financial liabilities
	The fair value of borrowings as at the 31 December 2014 has been estimated at £29,670,000 which is the same as the carrying value due to their short term nature. At 31 December 2013 the fair value was £13,019,000 which was the same as the carrying value. Under the fair value hierarchy in accordance with IFRS 13, these borrowings can be classified as Level 2 inputs.

21.	Events after the reporting period
	On 3 March 2015 the Company agreed an extra facility with Scotiabank Europe in the form of a £10 million loan. On 3 March 2015 £10 million was drawn down under the new facility for a fixed three year period at an all-in interest rate of 2.2175%.

Additional Notes:

The Annual Financial Report Announcement is not the Company's statutory accounts. The above results for the year ended 31 December 2014 are an abridged version of the Company's full financial statements, which have been approved and audited with an unqualified report. The 2013 and 2014 statutory accounts received unqualified reports from the Company's auditor and did not include any reference to matters to which the auditors drew attention by way of emphasis without qualifying the reports.  The financial information for 2013 is derived from the statutory accounts for 2013 which have been Lodged with the JFSC. The 2014 accounts will be filed with the JFSC in due course.

The Annual Report will be posted to Shareholders in April and further copies may be obtained from the registered office, 1^st Floor, Sir Walter Raleigh House, 48 - 50 Esplanade, St Helier, Jersey JE2 3QB 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

24 March 2015

INVESTMENT PORTFOLIO - TEN LARGEST INVESTMENTS

As at 31 December 2014
			Valuation	Total	Valuation
			2014	assets{A}	2013{B}
Company	Industry	Country	£'000	%	£'000
Oversea-Chinese Banking Corporation
A well-managed Singapore bank with a strong capital base and impressive cost-to-income ratio, which has recently acquired a mid-sized bank in Hong Kong. In addition to its core banking activities it has sizeable wealth management and life assurance divisions.	Banks	Singapore	15,159	3.7	11,661
HSBC Holdings
One of the world's largest banking and financial services institutions with global operations. Its roots and the majority of its earnings derive from Asia and, after several poor acquisitions in Europe and the USA, it has been refocusing back to its origins.	Banks	Hong Kong	13,545	3.3	12,964
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	12,835	3.1	11,869
Venture Corporation
Provides contract manufacturing services to electronic 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	12,268	2.9	10,238
Swire Pacific (Class A and Class B shares)
A long-established Hong Kong based conglomerate with operations spanning real estate, aviation (Cathay Pacific), beverages (Coca-Cola bottling) and marine services.	Real Estate Management & Development	Hong Kong	11,523	2.8	9,353
United Overseas Bank
Singapore's second largest bank, primarily focused on SMEs and consumers, with its core market in Singapore and a regional network incuding Indonesia, Malaysia and Thailand.	Banks	Singapore	11,431	2.7	9,547
China Mobile
The number one operator in China providing cellular telecommunication services, boasting both a strong balance sheet and healthy cash flows.	Wireless Telecommunication Services	China	11,101	2.7	9,811
Telstra
Australia's domestic and international telecommunications provider including telephone exchange lines to homes and businesses, supply of local, long distance and international telephone calls and supplying mobile telecommunication services.	Diversified Telecommunication Services	Australia	10,653	2.6	9,623
British American Tobacco Malaysia
Manufacturer & marketer of tobacco products in Malaysia through BAT's international brands such as Dunhill and Lucky Strike.	Tobacco	Malaysia	10,501	2.5	10,399
Taiwan Mobile
The leading provider of cellular telecommunications services in Taiwan. Although predominantly a wireless network operator, the company also sells and leases cellular telephony equipment.	Wireless Telecommunication Services	Taiwan	10,488	2.5	9,695
Top ten investments			119,504	28.8

CONSOLIDATED INVESTMENT PORTFOLIO - OTHER INVESTMENTS

As at 31 December 2014
			Valuation	Total	Valuation
			2014	assets{A}	2013{B}
Company	Industry	Country	£'000	%	£'000
Ausnet Services	Electric Utilities	Australia	10,148	2.4	9,254
Canon	Technology Hardware Storage & Peripherals	Japan	9,962	2.4	9,264
Jardine Cycle & Carriage	Distributors	Singapore	9,764	2.3	8,149
Singapore Technologies Engineering	Aerospace & Defence	Singapore	9,352	2.3	9,603
Taiwan Semiconductor Manufacturing Corporation	Semiconductors & Semiconductor Equipment	Taiwan	9,346	2.3	13,353
DBS Group	Banks	Singapore	9,129	2.2	7,338
Electricity Generating	Independent Power and Renewable Electricity Producers	Thailand	8,974	2.2	7,090
Commonwealth Bank of Australia	Commercial Banks	Australia	8,616	2.1	8,064
Keppel Corporation	Industrial Conglomerates	Singapore	8,557	2.1	10,683
Yanlord Land Group	Real Estate Management & Development (Corporate Bond)	China	8,478	2.0	8,302
Top twenty investments			211,830	51.1
BEC World	Media	Thailand	8,466	2.0	5,860
Tesco Lotus Retail Growth	Real Estate Investment Trusts	Thailand	8,392	2.0	7,974
Woolworths	Food & Staples Retailing	Australia	8,274	2.0	9,370
BHP Billiton	Metals & Mining	Australia{C}	8,206	2.0	11,046
Australia & New Zealand Bank Group	Banks	Australia	7,961	1.9	8,227
Guinness Anchor	Beverages	Malaysia	7,846	1.9	10,103
Spark New Zealand	Diversified Telecommunication Services	New Zealand	7,621	1.8	5,796
Advanced Information Services	Wireless Telecommunication Services	Thailand	7,339	1.8	5,498
Far East Hospitality Trust	Real Estate Investment Trusts	Singapore	7,311	1.8	4,374
CDL Hospitality Trust	Real Estate Investment Trusts	Singapore	6,426	1.6	6,001
Top thirty investments			289,672	69.9
QBE Insurance Group	Insurance	Australia	6,325	1.5	6,732
DFCC Bank	Banks (Corporate Bond)	Sri Lanka	6,271	1.5	8,697
Li & Fung	Textiles, Apparel & Luxury Goods	Hong Kong	5,852	1.4	4,984
Standard Chartered	Banks	United Kingdom	5,711	1.4	-
Rio Tinto	Metals & Mining	Australia{C}	5,700	1.4	-
Scentre Group	Real Estate Investment Trusts	Australia	5,371	1.3	3,187
Siam Cement{D}	Construction Materials	Thailand	5,309	1.3	4,485
Giordano International	Speciality Retail	Hong Kong	5,255	1.3	7,373
Pos Malaysia	Air Freight & Logistics	Malaysia	5,223	1.3	9,243
Singapore Post	Air Freight & Logistics	Singapore	5,173	1.2	10,062
Top forty investments			345,862	83.5
PetroChina	Oil, Gas & Consumable Fuels	China	4,967	1.2	4,628
Hana Microelectronics	Electronic Equipment, Instruments & Components	Thailand	4,955	1.2	2,923
Green Dragon Gas	Oil, Gas & Consumable Fuels (Corporate Bond)	China	4,690	1.1	-
Star Publications	Media	Malaysia	4,625	1.1	4,312
Ascendas Hospitality Trust	Real Estate Investment Trusts	Singapore	4,455	1.1	4,660
Shopping Centres Australasia	Real Estate Investment Trusts	Australia	4,167	1.0	3,424
Westfield Corporation	Real Estate Investment Trusts	Australia	4,161	1.0	4,758
Keppel REIT	Real Estate Investment Trusts	Singapore	3,981	1.0	1,390
Ratchaburi Electricity	Independent Power and Renewable Electricity Producers	Thailand	3,894	0.9	3,046
Hong Leong Finance	Consumer Finance	Singapore	3,863	0.9	4,022
Top fifty investments			389,620	94.0
ICICI Bank	Banks (Corporate Bond)	India	3,729	0.9	-
China National Offshore Oil Corporation	Oil, Gas & Consumable Fuels	China	3,540	0.8	-
Indo Tambangraya Megah	Oil, Gas & Consumable Fuels	Indonesia	3,304	0.8	-
Lafarge Malaysia	Construction Materials	Malaysia	3,115	0.8	2,743
Okinawa Cellular Telephone	Wireless Telecommunication Services	Japan	2,894	0.7	2,639
Yingde Gases	Chemicals (Corporate Bond)	China	2,119	0.5	2,261
Kingmaker Footwear	Textiles, Apparel & Luxury Goods	Hong Kong	1,182	0.3	1,203
Texwinca Holdings	Textiles, Apparel & Luxury Goods	Hong Kong	756	0.2	866
Total value of investments			410,259	99.0
Net current assets{E}			4,279	1.0
Total assets{A}			414,538	100.0
{A}    Total Assets less current liabilities (before deducting prior charges).
{B}    Purchases and/or sales effected during the year will result in 2013 and 2014 values not being directly comparable.
{C}    Incorporated in and listing held in United Kingdom.
{D}    Holding includes investment in common and non-voting depositary receipt lines
{E}    Excluding bank loans of £29,670,000.

 

END

 

 

ACSSESFWLFISEDD