Annual Financial Report

RNS Number : 7566U

Aberdeen Asian Income Fund Limited

08 April 2021

ABERDEEN ASIAN INCOME FUND LIMITED

Legal Entity Identifier (LEI): 549300U76MLZF5F8MN87

ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

FINANCIAL HIGHLIGHTS

Dividend per Ordinary share		Earnings per Ordinary share - basic (revenue)
2020	9.30p	2020	7.41p
2019	9.25p	2019	9.42p

Net asset value total return{AB} -		Share price total return{AB}
2020	+12.9%	2020	+12.1%
2019	+10.5%	2019	+14.2%

MSCI AC Asia Pacific ex Japan High Dividend Yield Index total return (currency adjusted){B}		MSCI AC Asia Pacific ex Japan Index total return (currency adjusted){B}
2020	-1.4%	2020	+19.0%
2019	+10.6%	2019	+14.9%

Yield {CD}		Discount to net asset value per Ordinary share {AC}
2020	4.1%	2020	6.9%
2019	4.3%	2019	5.8%

Ongoing charges{AE}		Net gearing{AC}
2020	1.10%	2020	6.9%
2019	1.23%	2019	8.1%

{A} Alternative Performance Measure (see pages 108 and 109 of the published Annual Report and Financial Statements for the year ended 31 December 2020).
{B} Total return represents the capital return plus dividends reinvested.
{C} As at 31 December. {D} Yield is calculated as the dividend per Ordinary share divided by the share price per Ordinary share expressed as a percentage.
{E} Calculated in accordance with the latest AIC guidance issued in October 2020 to increase the scope of reporting the look-through costs of holdings in investment companies.

STRATEGIC REPORT - CHAIRMAN'S STATEMENT

Background and Overview

Despite the dramatic upheaval last year caused by the Covid-19 pandemic, stock markets worldwide, albeit gyrating wildly, generally ended higher in 2020 and your Company's net asset value ("NAV") rose by 12.9%. This was considerably ahead of the 1.4% decline in the MSCI All Countries Asia Pacific ex Japan High Dividend Yield Index which is a more appropriate yardstick than the MSCI All Countries Asia Pacific ex Japan Index which returned 19.0%. This outcome is a testament to your portfolio's quality and your Investment Manager's dedicated expertise. Despite the pandemic, your Investment Manager swiftly adjusted to the new normal and was able to maintain the regular level of due diligence on portfolio holdings whilst working from home from their headquarters in Singapore via video conferences and telephone calls.

Market sentiment was marked by equal measures of froth and uncertainty in the past 12 months as the Covid-19 pandemic wreaked unprecedented havoc, from the aggregate level all the way down to the individual. The initial shock sent stock markets tumbling as economies ground to a halt and all trade and travel evaporated. Governments and central banks worldwide responded with unprecedented levels of economic stimuli to help companies and individuals survive the pandemic.

Government responses, however, were far from uniform, which resulted in diverse outcomes. Countries that had shown greater restraint achieved better success with Singapore, New Zealand, Australia and North Asia ending the year largely Covid free. In contrast, those countries that had stumbled over their initial responses found themselves in even more dire circumstances, particularly because of their eagerness to re-open before getting a firm grip on the outbreak. This resulted in a divergence of fortunes as the tech-heavy North Asian markets and commodity-led Australia spearheaded recovery for the asset class in the latter half of the year, whereas South East Asian markets were yet to reach a point of stability. Overall, the prospect of vaccine roll-outs heading into 2021 propelled share prices, in some cases, to multi-year highs.

At the corporate level, companies responded to the crisis as best they could. Many showed prudence, cutting costs and bolstering their balance sheets, scaling back capital spending and trimming dividend payouts. As the situation improved, some holdings reinstated their dividend policy, albeit partially. Examples include the Singapore banks, which had initially deferred dividend payments as mandated by the regulator. These lenders subsequently reinstated up to 60% of their dividends, on solid earnings' growth and as the country managed to curtail the virus successfully. Another example was Singapore Telecommunications which announced dividend payouts during the fourth quarter. I would like to reiterate that these moves to trim or suspend dividends reflected the underlying holdings' cautiousness rather than being a sign of their poor financial health. At the same time, your Investment Manager has kept abreast of these developments and has repositioned the portfolio accordingly, as detailed below.

Apart from the health crisis, geopolitical tension between the US and China was another key theme in Asian markets. The rhetoric from the Trump administration had ratcheted higher over the period. In addition to sanctions against Chinese tech companies, US regulators banned Americans from investing in companies linked to the Chinese military, while enacting a law that would delist mainland companies from American stock exchanges if they fail to meet with US audit rules. In contrast, Beijing exercised more restraint in its retaliation, although Hong Kong was inadvertently caught in the crossfire. Some markets, such as India and several in Southeast Asia, could stand to gain from this upheaval, especially if companies that are part of the US supply chain move to these more neutral markets to circumvent the increasingly stringent rules.

Performance

Your Company's net asset value total return was 12.9%, far outpacing the MSCI All Countries Asia Pacific ex Japan High Dividend Yield Index's decline of 1.4%. The share price total return was 12.1% and the year end share price was 228.5p representing a 6.9% discount to the NAV per Ordinary Share, with a dividend yield of 4.1%. I am pleased with your Company's performance, which I attribute to your Investment Manager's astute approach in targeting high quality Asian companies as well as its focus on robust environmental, social and corporate governance ("ESG") standards.

During this turbulent period, your Investment Manager actively engaged with the portfolio's underlying companies. Frank and open dialogue was established to help the holdings to meet the challenges facing them, while at the same time safeguarding the quality of your Company's portfolio at a time of elevated uncertainty and economic strain. It was reassuring to see that most of the portfolio's holdings have undertaken strategic reviews and adopted changes needed to weather the storm.

Meanwhile, the indiscriminate sell-off in March 2020 provided your Investment Manager with opportunities to fine-tune the portfolio. This included taking advantage of any mispricing, as the valuation of high-quality companies fell to attractive levels, allowing your Investment Manager to introduce high-quality stocks to the portfolio at reasonable prices. Your Investment Manager's bottom-up approach to stock selection helped boost performance, particularly with the Company's increased exposure to the technology and real estate sectors. This drove much of your Company's returns over the year. The Investment Manager's Review provides more insight into these changes.

On the governance front, your Investment Manager has maintained efforts to raise the portfolio's ESG ratings. Of note were Taiwan Semiconductor Manufacturing Company ("TSMC") and Samsung Electronics, whose ratings were recently upgraded. TSMC secured a AAA, the highest rating, as it maintained its lead over its peers across most key ESG issues. Similarly, Samsung was upgraded to an A rating after improvements in its salary disclosure brought it on par with its peers. Additionally, the ongoing board revamp was also positive, with a relatively young board as well as greater independent oversight. The continued engagement with the portfolio's holdings is an important facet of your Investment Manager's efforts to reduce portfolio risks, while generating long-term gains.

Dividends

Four quarterly dividends were declared over 2020. The first three were paid at the rate of 2.25p with the fourth interim at 2.55p for the year, representing a small increase in total dividends from 9.25p to 9.3p for the year. This increase maintains the trend that has been established over the last 12 years and means that the Company continues to be a "next generation dividend hero" as recognised by the Association of Investment Companies ("AIC"), having raised dividends for at least 10 years.

Based upon the Ordinary Share price of 228.5p the shares were yielding 4.1% at year end. The Covid-19 pandemic has impacted the level of dividends that were received from portfolio companies during 2020. However, the Board is aware of how important dividends are to shareholders and has chosen to use some of the Company's accumulated revenue reserves, which have been built up since the launch of the Company, with the aim of smoothing the impact on dividend payments to shareholders. In the year to 31 December 2020, about £3.3 million has been used. The net revenue reserve at 31 December 2020, adjusting for the payment of the 4th interim dividend that occurred after the year end, amounts to £7.8 million (about 4.4p per Share) and any decision as to whether this will be utilised in 2021 (and by how much) will be taken at the time of each of the quarterly dividend declarations. Having these revenue reserves provides an added level of comfort to your Company's ability to pay dividends as Covid-19 continues to impact World markets. This is a significant benefit of the closed end investment company structure.

As I have cautioned in previous years, significant movements in the value of sterling may also impact the level of earnings from the portfolio as the Company earns dividends in local Asian currencies and pays out its dividend to shareholders in sterling. However, the Board is very conscious of the ongoing demand for yield and will continue to aim to reward shareholders when possible to do so. We are proud to have maintained a progressive policy despite the various economic, political and currency fluctuation risks seen both in Asia and in the UK since your Company's inception.

Share Capital Management

In line with the Board's policy to buy back shares when the discount at which the Company's shares trade exceeds 5% to the underlying NAV (exclusive of income), the Company has continued to buy back its shares into treasury. During the year the Company bought back 1,767,492 shares for treasury at a discount. Subsequent to the year end we have continued to buy back shares and a total of 90,154 further shares have been acquired. These buybacks are accretive to the Company's NAV and benefit all shareholders. The Company will continue selectively to buy back shares in the market, in normal market conditions and at the discretion of the Board, when the discount exceeds 5% of the NAV (ex income) over the longer term. During the year the level of discount at which the Ordinary shares traded has widened slightly from 5.8% to 6.9%. At the time of writing the Ordinary Shares are trading at a discount of 9.6% to the prevailing NAV.

Gearing

On 9 April 2020 the Company confirmed that it had renewed its £40 million revolving credit facility with Scotiabank for one year. HKD212.5 million and USD7.2 million (equivalent to approximately £25.7m) was drawn down under the facility at the year end.

Including the £10m fixed rate loan, the Company's total gearing at the year-end amounted to the equivalent of £35.7 million representing net gearing of 6.9% (2019 - 8.1%). Net gearing is normally within the range of 2% to 10% and the Directors expect to maintain this approximate range in the future.

Under the terms of the revolving credit facility, the Company also has the option to increase the level of the commitment from £40 million to £60 million at any time, subject to the identification by the Investment Manager of suitable investment opportunities and the lender's credit approval.

Ongoing Charges Ratio ("OCR")

The Board monitors all expenses closely with the aim of continuing to deliver value to shareholders and the Directors regularly review the OCR. During the year the Association of Investment Companies ("AIC") changed its methodology for calculating the OCR, to include the impact of certain underlying costs on a look-through basis. (Refer to 'Alternative Performance Measures' on page 108 of the published Annual Report and Financial Statements for the year ended 31 December 2020 for further information). It is pleasing to note that the OCR has fallen from 1.23% to 1.10% during the year, based upon the new AIC approach (using the old AIC methodology the OCR fell from 1.08% to 1.03%). The improvement in OCR was driven by the renegotiated lower management fee as well as by a reduction in the level of administrative costs resulting from the Board's emphasis on

cost control.

Annual General Meeting ("AGM")

The Board has been monitoring closely the ongoing impact of the Covid-19 pandemic upon the arrangements for the Company's upcoming AGM on 12 May 2021. It is very difficult to predict the extent to which regulations limiting public gatherings will be relaxed in the near future and travel will be permitted again. Therefore, in order to provide certainty, whilst encouraging and promoting interaction and engagement with our shareholders, the Board has decided to hold an interactive Online Shareholder Presentation which will be held at 10.30 a.m. on Tuesday 27 April 2021. At the presentation, shareholders will receive updates from the Chairman and Investment Manager and there will be the opportunity for an interactive question and answer session. The online presentation is being held ahead of the AGM to allow shareholders to submit their proxy votes prior to the AGM and I would encourage all shareholders to lodge their votes in advance in this manner. Full details on how to register for the event can be found at: www.workcast.com/register?cpak=6761218631054882

The AGM on 12 May 2021 will be a functional only AGM due to prevailing guidance and social distancing measures, including the restrictions on public gatherings and travel, and the possibility that these measures will remain in place in May. The AGM will follow the minimum legal requirements for an AGM and arrangements will be made by the Company to ensure that the minimum number of shareholders required to form a quorum will attend the meeting in order that the meeting may proceed and the business be concluded. The Board considers these arrangements to be in the best interests of shareholders given the current circumstances.

The Board strongly discourages shareholders from attending the AGM and entry will be refused if guidance so requires or if the Chairman considers it to be necessary. Instead, shareholders are encouraged to exercise their votes in respect of the meeting in advance. Any questions from shareholders who are unable to join the Online Shareholder Presentation may be submitted to the company secretary at: Asian.Income@aberdeenstandard.com. The Board and/or the Investment Manager will seek to respond to all such questions received either before, or after the AGM. In the unlikely event that we consider that it has become possible to hold the AGM normally, we will notify shareholders of the changes by updating the Company's website at asian-income.co.uk and through an RIS announcement, where appropriate, as early as is possible before the date of the meeting.

On behalf of the Board I should like to thank shareholders in advance for their co-operation and understanding and I very much look forward to presenting to as many shareholders as possible at the Online Shareholder Presentation.

Proposed Changes to Articles of Association

At the forthcoming AGM, a resolution is being proposed that relates to the adoption of new Articles of Association ("the Articles"). If passed the new provisions will enable the Company to hold virtual and hybrid general meetings (including AGMs) in the future. This is in response to the challenges posed by Government restrictions on social interactions as a result of the Covid-19 pandemic. Notwithstanding this proposed change, the Board remains fully committed to ensuring that future general meetings (including AGMs) incorporate a physical meeting whenever law and regulation permits in order to fulfil the Board's commitment to enable shareholders to meet and interact with the Board on a face-to-face basis. The potential to hold a general meeting through wholly electronic means is intended as a solution to be adopted as a last resort to ensure the continued smooth operation of the Company. Your Board would only use virtual meetings in operating circumstances where physical meetings are prohibited or not practicable.

Directorate and Succession Planning

The Directors continue to monitor the merits of moving the Company onshore in order to achieve tax savings, but would only consult stakeholders about the possibility of a change of tax residence if there was evidence of it producing a material and enduring net benefit. As the composition of the Board would be influenced by the Company's tax residence and given the market uncertainty as a result of the Covid-19 pandemic, the Directors decided in 2020 to extend my term as Chairman one year beyond the ninth anniversary of my appointment as a Director, to allow for the appropriate Board succession to be determined. That means that I plan to retire from the Company at the AGM to be held in 2022 and during the current year the Directors will initiate a search for a new independent non-executive Director.

Environmental, Social and Governance ("ESG") Investing

The Board has maintained its ESG-focused dialogue with the Investment Manager in the belief that companies with good ESG practices will be the winners over the longer term whilst benefitting society. The Directors are pleased to note that the Investment Manager's ESG engagement is positive and further details pertaining to ESG and also climate change are contained on pages 39 to 43 of the published Annual Report and Financial Statements for the year ended 31 December 2020 .

Outlook

The return of lockdowns as new infections spike and the discovery of more transmissible strains in many countries are an important reminder that the pandemic is not yet behind us. Already, stock markets globally are starting to wobble despite the start of Covid-19 inoculations. The reality is that the rollout of vaccines at scale has been patchy and distribution challenges remain in many countries. Monetary and fiscal support extended by governments and central banks worldwide, while reassuring, is finite and there is uncertainty about how much longer some of these policies can be sustained. Furthermore, the last few weeks of the Trump administration added more volatility to markets due to the confusion around Executive Orders restricting US investments into select Chinese companies.

In Asia, many countries have fared better than their Western counterparts, have relatively healthier fiscal positions and are further along the re-opening journey; schools and offices have already been re-opened and selective travel corridors are successfully operating with appropriate quarantine measures.

Moreover, the recent signing of the Regional Comprehensive Economic Partnership agreement among Asia-Pacific nations and the EU-China Comprehensive Agreement on Investment along with several others already in place, should greatly equip the region for trade, investment and infrastructure financing. Additionally, with the new US President at the helm, geopolitical tensions with China could ease. Although the strategic rivalry between the two is likely to persist, there are hopes for a more constructive dialogue, which would help improve market stability.

Having said that, the drivers that underpin Asia's long-term growth story still hold true. A relatively young population, rising wealth levels and more sophisticated consumption patterns are long-term trends that will remain despite the near-term uncertainties. These will support the growing adoption of technology, which will in turn, underpin the promising prospects for companies in the region. Your Investment Manager will remain focused on selecting quality companies with solid fundamentals and robust ESG standards, underpinned by an attractive dividend yield. Whilst 2021 has seen a correction in growth names on concerns of rising bond yields, this is coming off a low base and neither high interest rates nor high inflation are going to be welcomed by any policy maker at this time.

Your Investment Manager remains focused on finding companies that will benefit from the Asian growth story, while also paying an attractive yield. This should result in a well-balanced portfolio of defensive and growth companies to deliver attractive returns for shareholders, even in uncertain times. This combination of capital growth coupled with an attractive 4.1% yield are particularly welcome against the backdrop of low interest rates at home.

Charles Clarke,

Chairman

7 April 2021

STRATEGIC REPORT - INVESTMENT MANAGER'S REVIEW

Q1. How did Aberdeen Asian Income Fund do in 2020?

The Company's Net Asset Value ("NAV") returned 12.9% over the year in sterling terms versus the 1.4% decline of the MSCI All Countries Asia Pacific ex Japan High Dividend Yield Index and the 19.0% gain of the MSCI All Countries Asia Pacific ex Japan Index. In addition, your Company has paid an increased dividend per share to shareholders, which represented a premium to the benchmark dividend yield. The rise in capital and income are particularly welcome given the difficult operating environment faced by many companies as a result of pandemic restrictions and lockdowns. Although there has been a wide divergence in currency performance across the region, the Company has been a beneficiary of foreign exchange tailwinds as our largest positions are traded in currencies that ended the year stronger versus the British pound amid fears at home of rising infection rates and further quarantining measures.

Our investment style is underpinned by a process that hunts out good quality, dividend paying companies at attractive prices that are exposed to the long term growth trends in Asia. We look for reliable cash flow generators with robust balance sheets and high quality management that can sustain good returns over time while also paying dividends to shareholders. Despite the low interest rate and bond yield environment, dividend yield as a style factor has lagged in Asia, as it has in the rest of the world. The fear of regulatory intervention and possible dividend cuts on one hand, coupled with hopes for outsized returns from high growth stocks on the other, has kept yield stocks at bay for a large part of the year. This has created an opportunity for us to buy more of the companies we like at cheaper valuations, many of which are exposed to structural long term growth trends and have continued to pay dividends in 2020.

Q2. Why is performance reported against two indices?

NAV returns have historically been measured against the MSCI AC Asia Pacific ex Japan index. However, over the past five years, this index has become increasingly skewed towards the non-yielding Chinese internet names, with the top three internet stocks making up close to 15% of this benchmark index.

We are looking for quality companies that offer both growth and dividend yield and every holding is expected to contribute to the total return of the overall portfolio. The merits of this diversified approach to collecting revenue streams has been evidenced this year. With dividend cuts impacting whole sectors, we were fortunate to not be overly reliant on any one sector for our dividend revenues.

As an alternative, we also provide NAV returns relative to the MSCI AC Asia Pacific ex Japan High Dividend Yield index which is based on the MSCI AC Asia Pacific ex Japan index but reflects those stocks that have higher yields, which we believe is a better representation of our investment universe.

Q3. Is Asia a good region to look for income?

When allocating money to Asia, investors are largely drawn to the growth story that Asian markets have to offer, supported by expanding populations, rising affluence and improving education. It may come as a surprise that over the past two decades, dividends have played an equally important role in generating total returns for investors in Asia, as indicated by the illustrative chart overleaf.

Another important aspect is that income is well diversified across countries and sectors. Asia is home to some of the most exciting companies in the world, attuned to a variety of longer term growth themes. A digital future, for example, needs technology enablers such as Taiwan's TSMC and South Korea's Samsung Electronics which are the two largest positions in the Company. Both of these companies are the global market leaders in semiconductor and memory chip manufacturing respectively, which provide the key building blocks for all the devices that support digital interconnectivity from smartphones, to computers, data servers and cloud storage services. Meanwhile, an increasingly urbanising landscape in Asia is driving earnings' growth for infrastructure companies such as our holdings in utility company Power Grid of India as well as diversified miner BHP. Going green can be a challenge for an income fund as this sector is still in the heavy investment phase. However, we are able to find global leaders with sturdy capital positions and dividend growth such as LG Chem, one of the top five electric vehicle battery manufacturers in the world; it is set to benefit from increasing environmental regulations that make electric vehicles more accessible to everyone. In addition to highlighting the broad base of sectors from which income is collected, all five of the companies mentioned above have increased their dividend during 2020.

Q4. What were the best and worst performing parts of the portfolio?

In what has truly been an exceptional year, there have been some clear winners for the Company. The rapid spread of Covid-19 and the ensuing mobility restrictions to help mitigate further contagion forced large swathes of the global population to work and study from home. This swift and mandatory change in behaviour resulted in increased demand for laptops, PCs, smartphones and other related devices as well as online content, e-commerce and cloud-based services. Asia is a powerhouse in the global technology supply chain and seven out of the top ten best performing stocks in the portfolio were major technology players in their respective segments, which capitalised on the above trends, supported by economies of scale that enabled them to ride out the worst of each business cycle.

Aside from the large cap giants, the Company also benefited from mid cap companies that have carved out a competitive edge in specialist markets. For example, Taiwan's GlobalWafers is a key raw material supplier into both TSMC and Samsung Electronics, generating resilient cash flows in the premium end of the wafer supply market. GlobalWafer's share price doubled from March lows as the company continues to see healthy demand and has bid to acquire German rival Siltronic which would further consolidate this industry. Elsewhere, Singapore-listed Venture Corporation added Covid-19 diagnostics and testing equipment to their diversified list of end markets, from genome sequencing to 5G infrastructure. Both companies have displayed the resilience of their business models and cash flow generation, and have increased dividends for the year.

On the other hand, some of the more traditional yield stocks fell out of favour during a year where markets leaned heavily into growth and momentum. Our holdings in telecoms and banks lagged the broader Asian market, especially during the first half of the year on fears of substantial dividend cuts. Towards year end, as regulatory pressure for dividend cuts eased and valuation multiples looked increasingly cheap, these stocks have begun to draw interest and share prices have recovered from prior lows.

The Company has 12% of NAV invested in China compared to the MSCI Asia Pacific ex Japan Index weighting of 38%. This difference stems from not owning Chinese internet stocks, which do not pay dividends, as well as our decision to avoid some specific companies that do not meet our quality criteria of transparent execution and financials. We are however ardent believers in the domestic China growth story and continue to look for well-managed companies that are dialed in to future consumer trends and have the cash flow generation to grow their dividends to shareholders. Sometimes these companies are not listed in China but in Hong Kong or Singapore, which can be seen in our country positioning. Last year, we were able to add to our China positioning during the market disruption as companies we had been watching from the sidelines became available at relatively cheaper prices. Initiations included Shenzhen-listed Midea, a white goods' manufacturer that plays into the aspirational consumer theme, as well as Hong Kong Exchanges & Clearing which should benefit from increasing trading volumes, especially if Chinese firms currently listed in the US decide to list closer to home amid heightened geopolitical tensions.

These portfolio changes, coupled with the market moves in the technology space detailed earlier, have resulted in some notable changes to our aggregate country exposure during the year. Whilst portfolio turnover has increased relative to historic average, it still remains modest at 16%. We have delivered double digit returns and a 4.1% yield without the need for excessive transactions.

Q5. How has your investment strategy changed during the pandemic?

The Company's investment strategy has been unwavering: to target rising income and growth from high quality Asian companies and to aim to increase its dividends over time.

2020 was an unpredictable year where volatility presented opportunities to invest in long-researched, quality stocks at cheaper prices. With over forty-five analysts on the ground across Asia and an investment presence that spans over two decades, we have good local knowledge of Asian corporates and value chains. The in-house research process focuses on detailed fundamental analysis to identify easy-to-understand businesses that are also industry leaders, backed by wide competitive moats and healthy balance sheets. These factors allow them to sustainably pay out dividends, even in adverse economic conditions, such as the one we find ourselves in. As companies that we believe are strong cash flow generators were sold down indiscriminately alongside the rest of the market, we have been opportunistic buyers of these stocks. Staying disciplined is crucial and our focus remains on finding quality dividend payers for the future.

Our long-established presence in Asia has allowed us to evolve a nuanced, region-specific perspective of corporate management. Our environmental, social and governance (ESG) framework has been tailored to factor in issues that may have a direct financial impact on our holdings. Many companies in the region are only just beginning to realise the significance which international investors place on having clear and transparent ESG policies. With this in mind, we frequently liaise with your Company's underlying holdings to advocate improvements to governance practices. This commitment to support ongoing ESG improvement from a bottom up perspective has been recognised by third party ratings providers and the Company's ESG rating has been upgraded by MSCI this year. We are pleased to provide more details on how we embed ESG into our investment process on pages 39 to 43 of the published Annual Report and Financial Statements for the year ended 31 December 2020 .

Q6. How have dividends been impacted in the portfolio? Have you exited stocks that cut their dividends?

The amount of dividends paid in Asia is lower this year, a trend that is evident across equity markets worldwide. However, thanks to underlying support from favourable demographics, a decisive Covid-19 response, and various stimulus measures, dividends in Asia have proven more resilient compared to many global counterparts.

There were only a few holdings that implemented a full dividend suspension, representing less than 10% of portfolio NAV. Importantly, none of these decisions were due to an inability to pay dividends but were a result of regulatory intervention or a pre-emptive measure by the company management to safeguard against an uncertain outlook. Auckland International Airport (AIA) took the prudent decision to suspend dividends as air travel dropped to zero. We continue to own the stock despite this temporary dividend hiatus as AIA has a solid balance sheet, without excess financial leverage, that can see them through the lockdown. Moreover, New Zealand has been one of the world leaders in managing the pandemic and once border restrictions begin to ease, AIA will benefit from a return in future passenger demand. As long term investors, we believe that AIA's land bank and prime monopoly airport asset are undervalued by the market and is well-positioned to deliver earnings' growth and resume dividends in the future. During the year, there have also been a number of dividend increases and special cash returns which are testament to the financial strength of the companies we choose to invest in. At a time when many are facing unemployment and job uncertainty, several companies opted to raise the cash portion of shareholder returns to provide more income to their retail investors. Many of our technology companies have paid special dividends as highlighted in an earlier answer and we also saw corporate activity related special cash returns from specialty retailer Convenience Retail Asia in Hong Kong.

In order to maintain the distribution to our shareholders, we have also continued to build up high yielding stocks that we like at attractive prices. Notable initiations include Singapore's CapitaLand which offers diversified exposure across various real estate segments globally and has a robust income profile supported by their property portfolio, as well as Australia's Charter Hall Long WALE REIT, which continued to enhance the quality of its assets, by refreshing its portfolio, as well as improving contract terms. This feeds well into its ability to generate stable cash flows and pay attractive shareholder returns. Alongside this, we introduced dividend growth stocks, such as Hong Kong Exchanges & Clearing and Midea, where we believe the pace of earnings' growth will be higher than average and support a growing dividend over the coming years.

To fund these new investments, we sold out of a number of holdings, where we had lower conviction in the business model and dividend paying ability amid challenging conditions owing to the prolonged pandemic. Among these were Hong Kong conglomerate Swire Pacific, Singapore-based Jardine Cycle & Carriage and Australian lender Westpac Banking.

Not all investment decisions are taken solely on the investment merits of the underlying stock. In response to the US's Executive Order 13959 (the "Order") which applies to US Persons who are Shareholders in the Company and prohibits US persons from purchasing the "publicly traded securities" of 35 Chinese companies identified as Communist Chinese Military Companies ("CCMCs") we have approximately 2.5% of the Company's NAV invested in two stocks on the current list of CCMCs at the year end. If appropriate, we expect to have divested of this exposure by 11 November 2021, the deadline under the Order.

Q7. Can we expect a better dividend outlook for Asia going forward?

Asia's economic backdrop appears to be brightening as the global rollout of Covid-19 vaccines could bring infection rates down and help populations achieve herd immunity faster. However, the re-imposition of lockdowns in the US, Europe and parts of Asia, along with the emergence of more virulent strains are a grim reminder that the pandemic still looms large. Moreover, specific technical requirements for certain vaccines pose logistical challenges especially for many developing nations. Nevertheless, stimulus measures unleashed by governments and continued policy easing by major central banks should continue to support asset prices.

Covid-19 and the fear of economic closures in 2020 sent bond yields close to zero and investors switched from bonds to equities. With economies re-opening, bond yields are beginning to rise and there are growing concerns about inflation risk but it is worth remembering that these are both coming off a low base starting point in Asia. The impact of this on equity markets has been a rotation out of high growth stocks into the value end of the market. Higher bond yields are being reflected in equity valuation models as a higher discount rate which tempers down the fair value price for growth stocks that have enjoyed strong momentum over the past year. Meanwhile, inflation is a cost to be passed on and some businesses are better at doing so than others. Given the volatile inflation history seen in the Asia region over the past decades and our experience of investing in the region, pricing power is one of the criteria we look for as part of our quality focused investment approach. Whilst macro factors change over time, these are outside of our control and we remained disciplined about finding quality companies with good execution track records and strong business models, which includes the ability to pass on cost inflation via pricing power, that can outperform over the long term.

While dividends have come under pressure, we believe that the portfolio is in good shape to deliver over the long run and that our ability to pay dividends to our shareholders is supported by healthy revenue collection from the underlying holdings. Stock valuations in the region remain appealing, particularly as investors expect a recovery in corporate earnings to gather pace this year. Many of the structural trends seen in recent years have accelerated during lockdowns, including the adoption of cloud computing, electric vehicles and 5G networks - sectors in which many of your Company's key holdings are dominant. Asian corporate balance sheets are modestly geared relative to their global counterparts which bodes well for a recovery in capital investments and dividend payments. Against this backdrop, we continue to look for good quality companies, with clear earnings' drivers, sound balance sheets, and robust cash levels, which underpin their ability to support sustainable dividends.

Yoojeong Oh,

Investment Director

Aberdeen Standard Investments (Asia) Limited,

Investment Manager

7 April 2021

STRATEGIC REPORT - OVERVIEW OF STRATEGY

Launched in December 2005, Aberdeen Asian Income Fund Limited (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. The Company's Ordinary Shares are listed on the premium segment of the London Stock Exchange.

Investment Objective

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

Business Model

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 dividend 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.

Investment Policy

Asset Allocation

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 Asia 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 market segments or any countries in the Asia Pacific region. The Company may use derivatives to enhance income generation.

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. The Company may also enter into stock lending contracts for the purpose of enhancing income returns.

Typically, the portfolio will comprise of between 40 and 70 holdings (but without restricting the Company from holding a more or less concentrated portfolio in the future).

Risk Diversification

The Company will not invest more than 10%, in aggregate, of the value of its Total Assets in 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;

- 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 for investment purposes (including the writing of put and call options for non speculative purposes to enhance investment returns) as well as for the purpose of efficient portfolio management (i.e. 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 foreign exchange and credit risks). For the avoidance of doubt, in line with the risk parameters outlined above, any investment in derivative securities will be covered.

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.

Gearing Policy

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 this is considered appropriate. Borrowings are generally shorter term, but the Board may from time to time take out 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 that 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.

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 approval of the Financial Conduct Authority as well as prior consent of the Jersey Financial Services Commission ("JFSC") to the extent that the changes 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.

Duration

The Company does not have a fixed life.

Comparative Indices

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. The Company compares its performance against the currency-adjusted MSCI AC Asia Pacific (ex Japan) High Dividend Yield Index and the currency-adjusted MSCI AC Asia Pacific (ex Japan) Index.

Promoting the Company's Success

In accordance with corporate governance best practice, the Board is now required to describe to the Company's shareholders how the Directors have discharged their duties and responsibilities over the course of the financial year following the guidelines set out in the UK under section 172 (1) of the Companies Act 2006 (the "s172 Statement"). This Statement, from 'Promoting the Success of the Company' to "Long Term Investment" provides an explanation of how the Directors have promoted the success of the Company for the benefit of its members as a whole, taking into account the likely long term consequences of decisions, the need to foster relationships with all stakeholders and the impact of the Company's operations on the environment.

The purpose of the Company is to act as a vehicle to provide, over time, financial returns (both income and capital) to its shareholders. The Company's Investment Objective is disclosed above. The activities of the Company are overseen by the Board of Directors of the Company. The Board's philosophy is that the Company should operate in a transparent culture where all parties are treated with respect and provided with the opportunity to offer practical challenge and participate in positive debate which is focused on the aim of achieving the expectations of shareholders and other stakeholders alike. The Board reviews the culture and manner in which the Manager operates at its regular meetings and receives regular reporting and feedback from the other key service providers.

Investment companies, such as the Company, are long-term investment vehicles, with a recommended holding period of five or more years. Typically, investment companies are externally managed, have no employees, and are overseen by an independent non-executive board of directors. Your Company's Board of Directors sets the investment mandate, monitors the performance of all service providers (including the Manager and Investment Manager) and is responsible for reviewing strategy on a regular basis. All this is done with the aim of preserving and, indeed, enhancing shareholder value over the longer term.

Shareholder Engagement

The following table describes some of the ways we engage with our shareholders:

AGM	In more normal times the AGM provides an opportunity for the Directors to engage with shareholders, answer their questions and meet them informally. The next AGM will take place on 12 May 2021 in Jersey but will be functional-only as a result of the pandemic. We therefore encourage shareholders to lodge their vote by proxy on all the resolutions put forward. As an alternative, the Board has decided to hold an interactive Online Shareholder Presentation which will be held at 10.30 a.m. on Tuesday 27 April 2021 (see Chairman's Statement).
Annual Report	We publish a full annual report each year that contains a strategic report, governance section, financial statements and additional information. The report is available online and in paper format.
Company Announcements	We issue announcements for all substantive news relating to the Company. You can find these announcements on the website.
Results Announcements	We release a full set of financial results at the half year and full year stage. Updated net asset value figures are announced on a daily basis.
Monthly Factsheets	The Manager publishes monthly factsheets on the Company's website including commentary on portfolio and market performance.
Website	Our website contains a range of information on the Company and includes a full monthly portfolio listing of our investments as well as podcasts by the Investment Manager. Details of financial results, the investment process and Investment Manager together with Company announcements and contact details can be found here: asian-income.co.uk
Investor Relations	The Company subscribes to the Manager's Promotional and Investor Relations programme (further details are on page 24 of the published Annual Report and Financial Statements for the year ended 31 December 2020).

The Manager

The key service providers for the Company are the Manager, Aberdeen Standard Capital International Limited, and the Investment Manager, Aberdeen Standard Investments (Asia) Limited and the performance of both is reviewed in detail at each Board meeting. The Investment Manager's investment process is outlined on pages 99 and 100 of the published Annual Report and Financial Statements for the year ended 31 December 2020 and further information about the Investment Manager is given on page 98.

Key Stakeholders - Shareholders

Shareholders are key stakeholders in the Company - they are looking to the Manager and Investment Manager to achieve the investment objective over time and to deliver a regular growing income together with some capital growth. In normal circumstances the Board is available to meet at least annually with shareholders at the Annual General Meeting. This is seen as a very useful opportunity to understand the needs and views of the shareholders. In between AGMs, the Directors and Investment Manager also conduct programmes of investor meetings with larger institutional, private wealth and other shareholders to ensure that the Company is meeting their needs. Such regular meetings may take the form of joint presentations with the Investment Manager or meetings directly with a Director where any matters of concern may be raised directly.

Other Stakeholders - Service Providers

The other key stakeholder group is that of the Company's third party service providers. The Board is responsible for selecting the most appropriate outsourced service providers and monitoring the relationships with these suppliers regularly in order to ensure a constructive working relationship. Our service providers look to the Company to provide them with a clear understanding of the Company's needs in order that those requirements can be delivered efficiently and fairly. The Board, via the Management Engagement Committee, ensures that the arrangements with service providers are reviewed at least annually in detail. The aim is to ensure that contractual arrangements remain competitively price in line with best practice, services being offered meet the requirements and needs of the Company and performance is in line with the expectations of the Board, Manager, Investment Manager and other relevant stakeholders. Reviews include those of the Company's depositary and custodian, share registrar, broker and auditor.

Principal Decisions

Pursuant to the Board's aim of promoting the long term success of the Company, the following principal decisions have been taken during the year:

Portfolio The Investment Manager's Review details the key investment decisions taken during the year and subsequently. The Investment Manager has continued to monitor the investment portfolio throughout the year under the supervision of the Board. A list of the key portfolio changes can be found in the Investment Manager's Report.

Gearing The Company utilises gearing in the form of bank debt with the aim of enhancing shareholder returns over the longer term. Subsequent to the year end, the Board has renewed the £40m revolving credit facility and the £10m fixed rate loans both for a further three year period maturing in March 2024.

Share Buybacks During the year, the Board has continued to buy back Ordinary shares opportunistically in order to manage the discount by providing liquidity to the market.

ESG As highlighted above, the Board is responsible for overseeing the work of the Investment Manager and this is not limited solely to the investment performance of the portfolio companies. The Board also has regard for environmental, social and governance matters that subsist within the portfolio companies. The Board has conducted regular meetings and met with the Investment Manager's ESG team in Singapore in order to discuss the Investment Manager's principles and policies. The Board is supportive of the Investment Manager's pro-active approach to ESG engagement.

Long Term Investment

The Investment Manager's investment process seeks to outperform over the longer term. The Board has in place the necessary procedures and processes to continue to promote the long term success of the Company. The Board will continue to monitor, evaluate and seek to improve these processes as the Company continues to grow over time, to ensure that the investment proposition is delivered to shareholders and other stakeholders in line with their expectations.

Key Performance Indicators (KPIs)

The Board uses a number of financial performance measures to assess the Company's success in achieving its objective and determine the progress of the Company in pursuing its investment policy. The main KPIs identified by the Board in relation to the Company which are considered at each Board meeting are as follows:

KPI	Description
Dividend Payments per Ordinary Share	The Board aims to grow the Company's dividends over time. Dividends paid over the past 10 years are set out on page 26 of the published Annual Report and Financial Statements for the year ended 31 December 2020 .
Performance	Absolute Performance: The Board monitors the Company's NAV total return performance in absolute terms. Relative Performance: The Board also measures performance against the MSCI AC Asia Pacific (ex Japan) High Dividend Yield Index and the MSCI AC Asia Pacific (ex Japan) Index and performance relative to other investment companies within the Company's peer group over a range of time periods, taking into consideration the differing investment policies and objectives employed by those companies. Share Price Performance: The Board also monitors the price at which the Company's shares trade relative to the MSCI AC Asia Pacific (ex Japan) High Dividend Yield Index and the MSCI AC Asia Pacific (ex Japan) Index on a total return basis over time. The Board measures performance over a time horizon of at least five years. The absolute, relative and share price performance is shown on pages 27 and 28 of the published Annual Report and Financial Statements for the year ended 31 December 2020 and further commentary on the performance of the Company is contained in the Chairman's Statement and Investment Manager's Review.
Discount/Premium to NAV	The discount/premium relative to the NAV per share represented by the share price is closely monitored by the Board. The objective is twofold: (i) to maintain the price at which the Ordinary Shares trade, relative to the exclusive of current period income NAV, at a discount of no more than 5% in normal market conditions; and (ii) to avoid large fluctuations in the discount/premium, relative to similar investment companies investing in the region, by the use of share buy backs or the issuance of new shares, subject to market conditions. A graph showing the share price premium/(discount) relative to the NAV is also shown on page 27 of the published Annual Report and Financial Statements for the year ended 31 December 2020 .
Ongoing Charges Ratio	The Board monitors the Company's operating costs carefully. Ongoing charges for the year and previous year are disclosed under Highlights above.
Gearing	The Board ensures that gearing is kept within the Board's guidelines to the Manager.

Risk Management

There are a number of risks which, if realised, could have a material adverse effect on the Company and its financial condition, performance and prospects. The Board has undertaken a robust review of the principal and emerging risks and uncertainties facing the Company including those that would threaten its business model, future performance, solvency or liquidity. Those principal risks are disclosed in the table below together with a description of the mitigating actions taken by the Board. The principal risks associated with an investment in the Company's Shares are published monthly on the Company's factsheet or they can be found in the pre-investment disclosure document published by the Manager, both of which are available on the Company's website.

The Board reviews the risks and uncertainties faced by the Company in the form of a risk matrix and heat map at its Audit Committee meetings and a summary of the principal risks are set out below. The Board also has a process to consider emerging risks and if any of these are deemed to be significant these risks are categorised, rated and added to the risk matrix for closer monitoring.

The Board notes that a number of contingent risks stemming from the Covid-19 pandemic remain which may impact the operation of the Company. These include investment risks surrounding the companies in the portfolio such as employee absence, reduced demand, reduced turnover and supply chain breakdowns. The Investment Manager will continue to review carefully the composition of the Company's portfolio and to be pro-active in taking investment decisions where necessary. Operationally, Covid-19 is also affecting the suppliers of services to the Company including the Manager, Investment Manager and other key third parties. To date these services have continued to be supplied seamlessly and the Board will continue to monitor arrangements in the form of regular updates from the Manager and Investment Manager.

In all other respects, the Company's principal risks and uncertainties have not changed materially since the date of this Annual Report and are not expected to change materially for the current financial year.

Description	Mitigating Action
Investment strategy and objectives - the setting of an unattractive strategic proposition to the market and the failure to adapt to changes in investor demand may lead to poor performance, the Company becoming unattractive to investors, a decreased demand for shares and a widening discount.	The Board keeps the investment objective and policy as well as the level of discount and/or premium at which the Company's Ordinary Shares trade under review. In particular, there are periodic strategy discussions where the Board reviews the Investment Manager's investment processes, analyses the work of Aberdeen Standard Investments' promotional and investor relations teams and receives reports on the market from the Broker. In particular, the Board is updated at each Board meeting on the make-up of and any movements in the shareholder register. Details of the Company's discount control mechanism are disclosed in the Directors' Report.
Investment portfolio , investment management - investing outside of the investment restrictions and guidelines set by the Board could result in poor performance and an inability to meet the Company's objectives or a regulatory breach.	The Board sets, and monitors, its investment restrictions and guidelines, and receives regular reports which include performance reporting on the implementation of the investment policy, the investment process and application of the Board guidelines. The Investment Manager is represented at all Board meetings.
Financial obligations - the ability of the Company to meet its financial obligations, or increasing the level of gearing, could result in the Company becoming over-geared or unable to take advantage of potential opportunities and result in a loss of value to the Company's Ordinary Shares.	The Board sets a gearing limit and receives regular updates on the actual gearing levels the Company has reached from the Investment Manager together with the assets and liabilities of the Company and reviews these at each Board meeting.
Financial - the financial risks associated with the portfolio could result in losses to the Company.	The financial risks associated with the Company include market risk, liquidity risk and credit risk, all of which are mitigated in conjunction with the Investment Manager. Further details of the steps taken to mitigate the financial risks associated with the portfolio are set out in note 18 to the financial statements.
Regulatory - failure to comply with relevant regulation (including Jersey Company Law, the Financial Services and Markets Act, The Packaged Retail and Insurance-based Investment Products (PRIIPS) Regulation, the Alternative Investment Fund Managers Directive, Accounting Standards and the FCA's Listing Rules, Disclosure Guidance and Transparency Rules and Prospectus Rules) may have an impact on the Company.	The Board relies upon the Standard Life Aberdeen Group to ensure the Company's compliance with applicable law and regulations and from time to time employs external advisers to advise on specific concerns.
Operational - the Company is dependent on third parties for the provision of all systems and services (in particular, those of the Standard Life Aberdeen Group) and any control failures and gaps in these systems and services could result in a loss or damage to the Company.	The Board monitors operational risk and as such receives internal controls and risk management reports from the Investment Manager at each Board meeting. It also receives assurances from all its significant service providers, as well as back to back assurance from the Manager at least annually. The Board has also received regular and frequent updates on the implications for the Manager's and Investment Manager's operations of the Covid-19 pandemic. Further details of the internal controls which are in place are set out in the Directors' Report.
Income and dividend risk - there is a risk that the portfolio could fail to generate sufficient income to meet the level of the annual dividend, thereby drawing upon, rather than replenishing, its revenue and/or capital reserves.	The Board monitors this risk through the review of income forecasts, provided by the Investment Manager, at each Board meeting.

Promoting the Company

The Board recognises the importance of communicating the long-term attractions of the Company to prospective investors both for improving liquidity and enhancing the value and rating of the Company's Ordinary Shares. The Board believes an effective way to achieve this is through subscription to and participation in the promotional programme run by Aberdeen Standard Investments on behalf of a number of investment companies under its management. The Company also supports the Aberdeen Standard Investments investor relations programme which involves regional roadshows and promotional and public relations campaigns. The purpose of these initiatives is both to communicate effectively with existing shareholders and to gain new shareholders with the aim of improving liquidity and enhancing the value and rating of the Company's Shares. The Company's financial contribution to the programmes is matched by the Manager. ASI's closed end fund sales and promotional teams report quarterly to the Board giving analysis of the promotional activities as well as updates on the shareholder register and any changes in the make-up of that register. The Company, through the Manager, has also commissioned independent paid-for research which has been undertaken by Edison Investment Research Limited and a copy of the latest research is available for download from the Company's website, asian-income.co.uk.

Board Diversity

The Board recognises the importance of having a range of skilled, experienced individuals with the right knowledge represented on the Board in order to allow it to fulfil its obligations. The Board also recognises the benefits, and is supportive, of the principle of diversity in its recruitment of new Board members, including diversity of thought, location and background. The Board will not display any bias for age, gender, race, sexual orientation, religion, ethnic or national origins, or disability in considering the appointment of its Directors. The Board will continue to ensure that all appointments are made on the basis of merit against the specification prepared for each appointment. At 31 December 2020, the Company did not have any employees and there were four male Directors and two female Directors on the Board. There are two Directors based in Singapore, two Directors based in Jersey and two Directors based in the UK.

Environmental, Social and Human Rights Issues

The Company has no employees as management of the assets is delegated to Aberdeen Standard Capital International Limited and sub-delegation to Aberdeen Standard Investments (Asia) Limited. There are therefore no disclosures to be made in respect of employees.

Due to the nature of the Company's business, being a Company that does not offer goods and services to customers, the Board considers that it is not within the scope of the Modern Slavery Act 2015 because it has no turnover. The Company, therefore, is not required to make a slavery and human trafficking statement.

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.

Socially Responsible Investment Policy

The Company supports the UK's Stewardship Code, and seeks to play its role in supporting good stewardship of the companies in which it invests. While the delivery of stewardship activities has been delegated to the Manager, the Board acknowledges its role in setting the tone for the effective delivery of stewardship on the Company's behalf. Further details on stewardship may be found on page 53 of the published Annual Report and Financial Statements for the year ended 31 December 2020.

Viability Statement

The Company does not have a formal fixed period strategic plan but the Board formally considers risks and strategy at least annually. The Board considers the Company, with no fixed life, to be a long term investment vehicle, but for the purposes of this viability statement has decided that a period of three years is an appropriate period over which to report. The Board considers that this period reflects a balance between looking out over a long term horizon and the inherent uncertainties of looking out further than three years. In assessing the viability of the Company over the review period the Directors have focused upon the following factors:

- The principal risks detailed in the Strategic Report;

- The ongoing relevance of the Company's investment objective in the current environment;

- The demand for the Company's Shares evidenced by the historical level of premium and/or discount;

- The level of income generated by the Company;

- Current market conditions caused by the global spread of the Covid-19;

- The liquidity of the Company's portfolio; and,

- The flexibility and certainty provided by the new £40m revolving credit facility and £10m fixed term loan which do not expire until March 2024.

Accordingly, taking into account the Company's current position, the fact that the Company's investments are mostly liquid and the potential impact of its principal risks and uncertainties, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due for a period of three years from the date of this Report. In making its assessment, the Board is also aware that there are other matters that could have an impact on the Company's prospects or viability in the future, including a greater than anticipated economic impact of the spread of Covid-19, economic shocks or significant stock market volatility caused by other factors, and changes in regulation or investor sentiment.

Future

Many of the non-performance related trends likely to affect the Company in the future are common across all closed-end investment companies, such as the attractiveness of investment companies as investment vehicles, the increased focus on environmental, social and governance factors when making investment decisions, the impact of regulatory changes and the effects of changes to the pensions and savings market in the UK in recent years. These factors need to be viewed alongside the outlook for the Company, both generally and specifically, in relation to the portfolio. The Board's view on the general outlook for the Company can be found in my Chairman's Statement whilst the Investment Manager's views on the outlook for the portfolio are included in the Investment Manager's Review.

The longer term impact of the Covid-19 pandemic remains unclear at the time of writing and increased economic risks remain for the Company. These include currency volatility which may adversely affect the translation rates of future earnings from the portfolio and stock market volatility affecting valuations.

Charles Clarke

Chairman

7 April 2021

STRATEGIC REPORT - RESULTS

FINANCIAL HIGHLIGHTS

Summary of Results
	31 December 2020	31 December 2019	% change
Total assets	£467,210,000	£439,392,000	+6.3
Total equity shareholders' funds (net assets)	£431,476,000	£403,403,000	+7.0
Market capitalisation	£401,759,000	£380,047,000	+5.7
Net asset value per Ordinary share{A}	245.40p	227.15p	+8.0
Share price per Ordinary share{A}	228.50p	214.00p	+6.8
Discount to net asset value per Ordinary share{B}	6.9%	5.8%
MSCI AC Asia Pacific ex Japan High Dividend Yield Index (currency adjusted){A}	3,762.06	4,004.10	-6.0
MSCI AC Asia Pacific ex Japan Index (currency adjusted){A}	906.30	780.59	+16.1
Net gearing{B}	6.9%	8.1%
Ongoing charges ratio{B}	1.10%	1.23%
Dividend and earnings
Total return per Ordinary share{C}	27.10p	22.29p	+21.6
Revenue return per Ordinary share{C}	7.41p	9.42p	-21.3
Dividends per Ordinary share{D}	9.30p	9.25p	+0.5
Dividend cover per Ordinary share{B}	0.80	1.02
Revenue reserves{E}	£7,748,000	£11,060,000
Yield{F}	4.1%	4.3%

{A} Capital values.
{B} Considered to be an Alternative Performance Measure as defined on pages 108 and 109 of the published Annual Report and Financial Statements for the year ended 31 December 2020.
{C} Measures the relevant earnings for the year divided by the weighted average number of Ordinary shares in issue (see note 9).
{D} The figure for dividends reflects the years in which they were earned (see note 8).
{E} The revenue reserves figure takes account of the fourth interim dividend amounting to £4,484,000 (2019 - fourth interim amounting to £4,438,000).
{F} Yield is calculated as the dividend per Ordinary share divided by the share price per Ordinary share expressed as a percentage.

PERFORMANCE (TOTAL RETURN) ON 31 DECEMBER 2020

	1 year	3 year	5 year	Since launch{B}
	% return	% return	% return	% return
Net asset value{A}	+12.9	+17.9	+77.7	+346.4
Share price (Ordinary){A}	+12.1	+20.1	+81.0	+315.4
MSCI AC Asia Pacific ex Japan High Dividend Yield Index (currency adjusted)	-1.4	+5.2	+59.0	+301.1
MSCI AC Asia Pacific ex Japan Index (currency adjusted)	+19.0	+25.3	+100.7	+339.0

{A} Considered to be an Alternative Performance Measure (see page 108 of the published Annual Report and Financial Statements for the year ended 31 December 2020 for more details).
{B} Launch date being 20 December 2005.

DIVIDENDS PER ORDINARY SHARE

	Rate	Ex-dividend date	Record date	Payment date
First interim 2020	2.25p	23 April 2020	24 April 2020	22 May 2020
Second interim 2020	2.25p	30 July 2020	31 July 2020	21 August 2020
Third interim 2020	2.25p	22 October 2020	23 October 2020	18 November 2020
Fourth interim 2020	2.55p	21 January 2021	22 January 2021	17 February 2021
	______
2020	9.30p
	______
First interim 2019	2.25p	25 April 2019	26 April 2019	24 May 2019
Second interim 2019	2.25p	18 July 2019	19 July 2019	16 August 2019
Third interim 2019	2.25p	24 October 2019	25 October 2019	15 November 2019
Fourth interim 2019	2.50p	23 January 2020	24 January 2020	20 February 2020
	______
2019	9.25p
	______

EXTRACTS FROM THE DIRECTORS' REPORT

Introduction

The Directors present their Report and the audited financial statements for the year ended 31 December 2020.

Results and Dividends

Details of the Company's results and dividends are shown under Highlights above and in note 8 to the financial statements. The Company's dividend policy is to pay interim dividends on a quarterly basis and for the year to 31 December 2020 dividends have been paid in May, August and November 2020 and February 2021. As at 31 December 2020 the Company's revenue reserves (adjusted for the payment of the fourth interim dividend) amounted to £7.8 million (approximately 4.4p per Ordinary Share).

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 and regulated as an Alternative Investment Fund by the Jersey Financial Services Commission. 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 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").

Individual Savings Accounts

The Company has conducted its affairs so as to satisfy the requirements as a qualifying security for Individual Savings Accounts. The Directors intend that the Company will continue to conduct its affairs in this manner.

Capital Structure, Issuance and Buybacks

The Company's capital structure is summarised in note 14 to the financial statements. At 31 December 2020, there were 175,824,483 fully paid Ordinary Shares of no par value (2019 - 177,591,975) Ordinary Shares in issue. At the year end there were 19,108,906 Ordinary Shares held in treasury (2019 - 17,341,414).

During the year 1,767,492 Ordinary Shares were purchased in the market for treasury (2019 - 1,038,713) and no Ordinary Shares were issued or sold from treasury.

Subsequent to the period end 90,154 Ordinary Shares have been purchased in the market at a discount for treasury.

Voting Rights

Each Ordinary Share holds one voting right and shareholders are entitled to vote on all resolutions which are proposed at general meetings of the Company. The Ordinary Shares, excluding treasury shares, carry a right to receive dividends. On a winding up or other return of capital, after meeting the liabilities of the Company, the surplus assets will be paid to Ordinary shareholders in proportion to their shareholdings. There are no restrictions on the transfer of Ordinary Shares in the Company other than certain restrictions which may be applied from time to time by law.

Borrowings

On 3 March 2021 the Company announced that it had renewed both its three-year £10 million term facility and its £40 million revolving credit facility with Bank of Nova Scotia, London Branch on an unsecured basis, for three years. £10 million has been drawn down under the term facility and fixed for three years at an all-in rate of 1.53%. Under the revolving credit facility, HKD73.5 million, US$ 19 million and GBP4.9 million has been drawn down at all-in rates of 1.3225%, 1.3185% and 1.248% respectively. Under the terms of the revolving credit facility, the Company also has the option to increase the level of the commitment from £40 million to £60 million at any time, subject to the identification by the Investment Manager of suitable investment opportunities and the Lender's credit approval.

Management Arrangements

Aberdeen Standard Capital International Limited ("ASCIL") is the Company's Manager and Company Secretary. ASCIL is a wholly owned subsidiary of Standard Life Aberdeen PLC.

The investment management of the Company is delegated from ASCIL to Aberdeen Standard Investments (Asia) Limited.

Management Fee

Under the terms of the Management Agreement dated 21 March 2017, management services are provided by ASCIL. Further details are provided in note 5 to the financial statements. In 2019 the Directors negotiated a new, lower, level of management fee with the Manager and with effect from 1 January 2020 the company secretarial fee was removed and the management fee has been calculated on the following new tiered basis:

(i) Average Value up to £350m - 0.85% per annum; and

(ii) Average Value in excess of £350m - 0.65% per annum.

The Management Fee is calculated and accrued on a monthly basis (being 1/12th of the value resulting from the sum of (i) plus (ii) above) and shall be payable quarterly in arrears.

Termination of the Management Agreement remains subject to six months' notice.

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 ASCIL with the delegation arrangements to the Investment Manager, on the terms agreed, is in the interests of shareholders as a whole.

Risk Management

Details of the financial risk management policies and objectives relative to the use of financial instruments by the Company are set out in note 18 to the financial statements.

Substantial Interests

The Board has been advised that the following shareholders owned 3% or more of the issued Ordinary Share capital of the Company at 31 December 2020:

Shareholder	No. of Ordinary Shares held	% held
Rathbones	18,937,453	10.8
1607 Capital Partners	18,325,095	10.4
Hargreaves Lansdown ^A	12,731,296	7.2
Interactive Investor ^A	10,038,127	5.7
Aberdeen Standard Retail Plans ^A	7,856,844	4.5
Aberdeen Standard Investments	7,402,800	4.2
Charles Stanley	7,239,597	4.1
Brewin Dolphin	6,684,176	3.8
City of London Inv. Management	5,780,051	3.3

^A Non-beneficial interests

On 25 March 2021, 1607 Capital Partners notified the Company that it had reduced its holding to 17,520,594 Ordinary shares representing 9.97%). There have been no other changes notified in respect of the above holdings in the period from 31 December 2020 to 7 April 2021.

Directors

The Board currently consists of six non-executive Directors. Mark Florance, Ian Cadby, Charles Clarke, Nicky McCabe, Krystyna Nowak and Hugh Young each held office throughout the year and were the only Directors in office during the year.

Governance

The names and biographies of each of the six current Directors are disclosed on page 47 of the published Annual Report and Financial Statements for the year ended 31 December 2020 indicating their range of experience. Mr Young is non-independent and has served on the Board for more than nine years and, in accordance with corporate governance best practice, will retire at the Annual General Meeting on 12 May 2021 ("AGM") and, being eligible, offers himself for re-election. In accordance with Principle 23 of the AIC's Code of Corporate Governance which recommends that all directors should be subject to annual re-election by shareholders, all the members of the Board, will retire at the forthcoming AGM and will offer themselves for re-election. Details of each Directors' contribution to the long term success of the Company are provided on page 51 of the published Annual Report and Financial Statements for the year ended 31 December 2020.

The Board considers that there is a balance of skills and experience within the Board relevant to the leadership and direction of the Company and that all the Directors contribute effectively. The Board has reviewed each of the proposed reappointments and concluded that each of the Directors has the requisite high level and range of business and financial experience and recommends their re-election at the forthcoming AGM.

In common with most investment companies, the Company has no employees. Directors' & Officers' liability insurance cover has been maintained throughout the year at the expense of the Company.

Policy on Tenure

Directors are not currently required to serve on the Board for a limited period of time only. However, the Board's intention is to follow best practice in this area and for the independent Directors to serve for up to a maximum of nine years on the Board. Mr Clarke was appointed to the Board in 2012 and subsequently became Chairman in 2018. As explained in the Chairman's Statement, the current expectation is for Mr Clarke to retire from the Board at the AGM to be held in 2022 allowing for an orderly hand over of responsibilities to a successor.

Corporate Governance

The Company is committed to high standards of corporate governance. The Board is accountable to the Company's shareholders for good governance and this statement describes how the Company has applied the principles identified in the UK Corporate Governance Code as published in July 2018 (the "UK Code"), which is available on the Financial Reporting Council's (the "FRC") website: frc.org.uk.

The Board has also considered the principles and provisions of the AIC Code of Corporate Governance as published in February 2019 (the "AIC Code"). The AIC Code addresses the principles and provisions set out in the UK Code, as well as setting out additional provisions on issues that are of specific relevance to the Company. The AIC Code is available on the AIC's website: theaic.co.uk.

The Board considers that reporting against the principles and provisions of the AIC Code, which has been endorsed by the FRC provides more relevant information to shareholders.

The Board confirms that, during the year, the Company complied with the principles and provisions of the AIC Code and the relevant provisions of the UK Code, except as set out below.

The UK Code includes provisions relating to:

- interaction with the workforce (provisions 2, 5 and 6);

- the role and responsibility of the chief executive (provisions 9 and 14);

- previous experience of the chairman of a remuneration committee (provision 32); and

- executive directors' remuneration (provisions 33 and 36 to 40).

The Board considers that these provisions are not relevant to the position of the Company, being an externally managed investment company. In particular, all of the Company's day-to-day management and administrative functions are outsourced to third parties. As a result, the Company has no executive directors, employees or internal operations. The Company has therefore not reported further in respect of these provisions.

The full text of the Company's Corporate Governance Statement can be found on the Company's website, asian-income.co.uk.

Directors have attended the following scheduled Board and Committee meetings during the year ended 31 December 2020 as follows (with their eligibility to attend the relevant meeting in brackets):

	Board	Audit	MEC	Nom
Total Meetings	4	2	1	1
C Clarke ^A	4 (4)	n/a	1 (1)	1 (1)
M Florance	4 (4)	2 (2)	1 (1)	1 (1)
I Cadby	4 (4)	2 (2)	1 (1)	1 (1)
N McCabe	4 (4)	2 (2)	1 (1)	1 (1)
K Nowak	4 (4)	2 (2)	1 (1)	1 (1)
H Young ^B	4 (4)	n/a	n/a	1 (1)

^A Mr Clarke is not a member of the Audit Committee but attended both meetings by invitation.

^B Mr Young is not a member of the Audit or Management Engagement Committees.

In addition to the above meetings there have been a number of ad hoc Board Meetings to review and approve dividends and other operational matters such as loan facilities.

The Board has a schedule of matters reserved to it for decision and the requirement for Board approval on these matters is communicated directly to the senior staff of the Investment Manager. Such matters include strategy, gearing, treasury and dividend policy. Full and timely information is provided to the Board to enable the Directors to function effectively and to discharge their responsibilities. The Board also reviews the financial statements, performance and revenue budgets.

Board Committees

The Directors have appointed a number of Committees as set out below. Copies of their terms of reference, which clearly define the responsibilities and duties of each Committee, are on the Company's website. The terms of reference of each of the Committees are reviewed and re-assessed by the Board for their adequacy on an ongoing basis.

Audit Committee

The Audit Committee's Report is on pages 56 and 57 of the published Annual Report and Financial Statements for the year ended 31 December 2020.

Management Engagement Committee

The Management Engagement Committee comprises all of the Directors except Mr Young. The Chairman of the Company serves as Chairman of the Management Engagement Committee. The Committee reviews the performance of the Investment Manager and its compliance with the terms of the management and secretarial agreement. The terms and conditions of the Manager and Investment Manager's appointment, including an evaluation of fees, are reviewed by the Committee on an annual basis. The Committee believes that the continuing appointment of the Manager on the terms agreed is in the interests of shareholders as a whole.

Nomination Committee

All appointments to the Board of Directors are considered by the Nomination Committee which comprises the entire Board and is chaired by the Chairman of the Company. Possible new Directors are identified against the requirements of the Company's business and the need to have a balanced Board. Every Director is entitled to receive appropriate training as deemed necessary. A Director appointed during the year is required, under the provisions of the Company's Articles of Association, to retire and seek election by shareholders at the next Annual General Meeting. Notwithstanding the Articles of Association requirement that one third of the Directors retire by rotation at each Annual General Meeting, each Director retires annually and submits themselves for re-election at the AGM.

The Company has put in place the necessary procedures to conduct, on an annual basis, an appraisal of the Chairman of the Board, Directors' individual self-evaluation and a performance evaluation of the Board as a whole. The Board also reviewed the Chairman's and Directors' other commitments and is satisfied that the Chairman and other Directors are capable of devoting sufficient time to the Company. Given the ever changing regulatory environment, it was agreed to increase focus on continuing professional development and regulatory and accounting developments as well as future corporate governance changes. The last independent Board evaluation was conducted in 2019 by BoardAlpha Limited and the Directors intend to conduct a self-evaluation exercise in 2021 which will involve the use of self appraisal questionnaires followed up by one on one meetings with the Chairman. Consideration will be given to conducting another independently facilitated evaluation in 2022.

The independent members of the Committee have appraised each of the Directors standing for re-election at the forthcoming AGM. The Chairman was appointed to the Board in 2012 and became Chair in 2018. He has continued to Chair meetings in an orderly, open and independent manner allowing sufficient time for key areas of focus whilst allowing all significant matters to be fully debated. Ms Nowak, was appointed to the Board in 2015 and became Senior Independent Director in 2018. She has continued to provide the Board with excellent strategic and governance direction during the year. Mr Cadby was appointed to the Board in 2016 and has provided the Company with expert insight into the management of derivatives as well as the benefit of his international fund management experience. Mr Florance was appointed to the Board in 2017 and has assumed the role of Audit Committee Chairman in 2018. He has chaired the Audit Committee expertly and being resident in Asia is able to bring direct experience of the investment region to the Board. Ms McCabe was appointed to the Board in 2018 and has brought detailed investment trust insight to the Board from her previous industry experience. Mr Young was appointed to the Board as a non independent Director at the launch of the Company in 2005 and has stood for annual re-election ever since. He is Chairman Asia for Aberdeen Standard Investments and based in Singapore where he is able to bring first hand investment vision to the Board.

Accordingly, the Board has no hesitation in recommending to shareholders the reappointment of each Director at the forthcoming AGM.

The Role of the Chairman and Senior Independent Director

The Chairman is responsible for providing effective leadership to the Board, by setting the tone of the Company, demonstrating objective judgement and promoting a culture of openness and debate. The Chairman facilitates the effective contribution, and encourages active engagement, by each Director. In conjunction with the Company Secretary, the Chairman ensures that Directors receive accurate, timely and clear information to assist them with effective decision-making. The Chairman leads the evaluation of the Board and individual Directors, and acts upon the results of the evaluation process by recognising strengths and addressing any weaknesses. The Chairman also engages with major shareholders and ensures that all Directors understand shareholder views.

The Senior Independent Director acts as a sounding board for the Chairman and acts as an intermediary for other directors, when necessary. Working closely with the Nomination Committee, the Senior Independent Director takes responsibility for an orderly succession process for the Chairman, and leads the annual appraisal of the Chairman's performance. The Senior Independent Director is also available to shareholders to discuss any concerns they may have.

Remuneration Committee

As the Company only has non-executive Directors, the Board has not established a separate Remuneration Committee and Directors' remuneration is determined by the Board as a whole.

The Company's policy on Directors' remuneration, together with details of the remuneration of each Director, is set out in the Directors' Remuneration Report on page 59 of the published Annual Report and Financial Statements for the year ended 31 December 2020.

Management of Conflicts of Interests

The Board has a procedure in place to deal with a situation where a Director has a conflict of interest. As part of this process, the Directors are required to disclose other positions held and all other conflict situations that may need to be authorised either in relation to the Director concerned or his or her connected persons. The Board considers each Director's situation and decides whether to approve any conflict, taking into consideration what is in the best interests of the Company and whether the Director's ability to act in accordance with his or her wider duties is affected. Each Director is required to notify the Company Secretary of any potential or actual conflict situations that will need authorising by the Board. Authorisations given by the Board are reviewed at each Board meeting.

No Director has a service contract with the Company although Directors are issued with letters of appointment upon appointment. The Directors' interests in contractual arrangements with the Company are as shown in note 20 to the financial statements. No other Directors had any interest in contracts with the Company during the period or subsequently.

The Company has a policy of conducting its business in an honest and ethical manner. The Company takes a zero tolerance approach to bribery and corruption and has procedures in place that are proportionate to the Company's circumstances to prevent them. The Standard Life Aberdeen Group also adopts a group-wide zero tolerance approach and has its own detailed policy and procedures in place to prevent bribery and corruption. Copies of the Standard Life Aberdeen Group's anti-bribery and corruption policies are available on its website standardlifeaberdeen.com.

Going Concern

The Directors have undertaken a robust review of the Company's viability (refer to statement in Strategic Report) and ability to continue as a going concern. The Company's assets consist primarily of a diverse portfolio of listed equity shares which in most circumstances are realisable within a very short timescale.

The Directors have carefully considered the financial position of the Company with particular attention to the economic and social impacts of the Covid-19 pandemic. As indicated above and in the Chairman's Statement and Investment Manager's Review, Covid-19 presents significant challenges to all of the countries within the investment region as well as the rest of the world. It is too early to be able to assess the longer term impacts on the individual companies in the portfolio, however, the Board takes comfort from the resilience of the balance sheets of those companies.

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

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 the 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.

Independent Auditor

Shareholders approved the re-appointment of KPMG Channel Islands Limited as independent Auditor at the AGM held in July 2020 and a Resolution to reappoint KPMG Channel Islands Limited as the Company's Auditor and to authorise the Directors to fix the Auditor's remuneration will be put to shareholders at the AGM to be held in May 2021.

Principal Risks

The Principal Risks and Uncertainties facing the Company are detailed in the Strategic Report. The Board of Directors is ultimately responsible for the Company's system of internal control and for reviewing its effectiveness. Following the Financial Reporting Council's publication of "Guidance on Risk Management, Internal Controls and Related Financial and Business Reporting" (the "FRC Guidance"), the Directors confirm that there is an ongoing process for identifying, evaluating and managing the principal risks faced by the Company. This process has been in place for the full year under review and up to the date of approval of the financial statements, and this process is regularly reviewed by the Board and accords with the FRC Guidance.

The design, implementation and maintenance of controls and procedures to safeguard the assets of the Company and to manage its affairs properly extends to operational and compliance controls and risk management. The Board has prepared its own risk register which identifies potential risks relating to strategy, investment management, shareholders, marketing, gearing, regulatory and financial obligations, third party service providers and the Board. The Board considers the potential cause and possible impact of these risks as well as reviewing the controls in place to mitigate these potential risks. A risk is rated by having a likelihood and an impact rating and the residual risk is plotted on a "heat map" and is reviewed regularly.

The Board has reviewed the effectiveness of the system of internal control and, in particular, it has reviewed the process for identifying and evaluating the principal risks faced by the Company and the policies and procedures by which these risks are managed.

The Directors have delegated the investment management of the Company's assets to the Manager which has, in turn, delegated the responsibility to the Investment Manager within overall guidelines. This embraces implementation of the system of internal control, including financial, operational and compliance controls and risk management. Internal control systems are monitored and supported by the Manager's internal audit function which undertakes periodic examination of business processes, including compliance with the terms of the management agreement, and ensures that recommendations to improve controls are implemented.

Risks are identified and documented through a risk management framework by each function within the Manager's activities. Risk is considered in the context of the FRC Guidance and includes financial, regulatory, market, operational and reputational risk. This helps the internal audit risk assessment model identify those functions for review. Any relevant weaknesses identified are reported to the Board and timetables are agreed for implementing improvements to systems. The implementation of any remedial action required is monitored and feedback provided to the Board.

The key components designed to provide effective internal control for the year under review and up to the date of this Report are outlined below:

- the Investment Manager prepares forecasts and management accounts which allow the Board to assess the Company's activities and review its investment performance;

- the Board and Investment Manager have agreed clearly defined investment criteria;

- there are specified levels of authority and exposure limits. Reports on these issues, including performance statistics and investment valuations, are regularly submitted to the Board. The Investment Manager's investment process and financial analysis of the companies concerned include detailed appraisal and due diligence;

- as a matter of course the compliance department of ASCIL continually reviews the Investment Manager's operations;

- written agreements are in place which specifically define the roles and responsibilities of the Manager, Investment Manager and other third-party service providers and the Committee reviews, where relevant, ISAE3402 Reports, a global assurance standard for reporting on internal controls for service organisations. The Board has reviewed the exceptions arising from the Standard Life Aberdeen Group ISAE3402 for the year to 30 September 2020, none of which were judged to be of direct relevance to the Company;

- the Board has considered the need for an internal audit function but, because of the compliance and internal control systems in place within the Standard Life Aberdeen Group, has decided to place reliance on the Standard Life Aberdeen Group's systems and internal audit procedures; and

- twice a year, at its Board meetings, the Board carries out an assessment of internal controls by considering documentation from the Investment Manager, including its internal audit and compliance functions and taking account of events since the relevant period end.

In addition, the Manager and Investment Manager ensures that clearly documented contractual arrangements exist in respect of any activities that have been delegated to external professional organisations. The Board meets periodically with representatives from BNP Paribas and receives control reports covering the activities of the custodian.

Representatives from the Internal Audit department of the Standard Life Aberdeen Group report six monthly to the Audit Committee of the Company and have direct access to the Directors at any time.

The internal control systems are designed to meet the Company's particular needs and the risks to which it is exposed. Accordingly, the internal control systems are designed to manage rather than eliminate the risk of failure to achieve business objectives and, by their nature, can provide reasonable but not absolute assurance against material misstatement or loss.

The UK Stewardship Code and Proxy Voting

Responsibility for actively monitoring the activities of portfolio companies has been delegated by the Board to the AIFM which has sub-delegated that authority to the Investment Manager.

Standard Life Aberdeen plc is a tier 1 signatory of the UK Stewardship Code which aims to enhance the quality of engagement by investors with investee companies in order to improve their socially responsible performance and the long term investment return to shareholders.

Relations with Shareholders

The Directors place a great deal of importance on communication with shareholders. The Chairman welcomes feedback from all shareholders and meets periodically with the largest shareholders to discuss the Company. The Annual Report and financial statements are available on the Company's website and are widely distributed to other parties who have an interest in the Company's performance. Shareholders and investors may obtain up to date information on the Company through the Investment Manager's freephone information service and the Company's website (asian-income.co.uk).

The Notice of the Annual General Meeting included within the Annual Report and financial statements is ordinarily sent out at least 20 working days in advance of the meeting. All shareholders have the opportunity to put questions to the Board or Investment Manager, either formally at the Company's Annual General Meeting or informally following the meeting. The Company Secretary is available to answer general shareholder queries at any time throughout the year. The Directors are keen to encourage dialogue with shareholders and the Chairman welcomes direct contact from shareholders.

The Board's policy is to communicate directly with shareholders and their representative bodies without the involvement of the management group (either the Company Secretary, the Manager or the Investment Manager) in situations where direct communication is required and usually a representative from the Board meets with major shareholders on an annual basis in order to gauge their views.

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 AIFMD applies. The Company's registration certificate with the JFSC mandates that the Company "must comply with the applicable sections of the Codes of Practice for Alternative Investment Funds and AIF Services Business".

ASCIL, 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 AIFMD) 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, ASCIL 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: asian-income.co.uk.

Annual General Meeting

The AGM will be held at 10.30 a.m. on 12 May 2021 at the Company's registered office, 1st Floor, Sir Walter Raleigh House, 48 - 50 Esplanade, St Helier, Jersey JE2 3QB. By necessity, the AGM will be functional only due to the prevailing guidance and social distancing measures, including the restrictions on public gatherings and travel, and the possibility that these measures will remain in place in May, the AGM will follow the minimum legal requirements for an AGM. Arrangements will be made by the Company to ensure that the minimum number of shareholders required to form a quorum will attend the meeting in order that the meeting may proceed and the business be concluded. The Board considers these arrangements to be in the best interests of shareholders given the current circumstances.

Resolutions including the following business will be proposed at the AGM:

Dividend Policy

As a result of the timing of the payment of the Company's quarterly dividends, the Company's Shareholders are unable to approve a final dividend each year. In line with good corporate governance, the Board therefore proposes to put the Company's dividend policy to Shareholders for approval at the Annual General Meeting and on an annual basis thereafter.

The Company's dividend policy shall be that dividends on the Ordinary Shares are payable quarterly in relation to periods ending March, June, September and December. It is intended that the Company will pay quarterly dividends consistent with the expected annual underlying portfolio yield. The Company has the flexibility in accordance with its Articles to make distributions from capital. Resolution 3 will seek shareholder approval for the dividend policy.

Authority to Purchase the Company's Shares

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 the exclusive of current period income NAV at a discount of no more than 5% in normal market conditions and to the extent that is achievable. Purchases of Ordinary Shares will only be made through the market for cash at prices below the prevailing exclusive of current period income NAV (which, subject to shareholder approval at the AGM will be the latest estimated NAV) where the Directors believe such purchases will enhance shareholder value and are likely to assist in narrowing any discount to NAV at which the Ordinary Shares may trade. Subsequent to the period end the Company has purchased for treasury 90,154 Ordinary Shares and at the time of writing the Ordinary Shares are trading at a discount of 9.6% to the prevailing exclusive of income NAV.

Resolution 11, 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 26,342,575 Ordinary Shares (or, if less, 14.99% of the issued Ordinary Share capital as at the date of passing of the resolution). The authority being sought will expire on the earlier of 18 months from the date of the resolution or at the conclusion of the Annual General Meeting to be held in 2022 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.

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 NAV.

Authority to Allot the Company's Shares

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 NAV 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 12, a Special Resolution, proposes a disapplication of the pre-emption rights in respect of 10% of the Ordinary Shares in issue at the date of the passing of the resolution, set to expire on the earlier of 18 months from the date of the resolution or at the conclusion of the Annual General Meeting to be held in 2022.

Adoption of New Articles of Association

As explained in detail in the Chairman's Statement, under Resolution 13, the Board is proposing amendments to the Articles of Association. The amendments are in response to challenges posed by government restrictions on social interactions as a result of the Covid-19 pandemic, which have made it difficult for shareholders to attend physical general meetings. The proposed amendments to the Company's articles of association would enable a combination of virtual and physical shareholder meetings to be held in the future where physical meetings are prohibited or impossible. Notwithstanding the proposed changes, the Directors have no present intention of holding a virtual-only meeting and the Board remains fully committed to ensuring that future general meetings (including AGMs) incorporate a physical meeting whenever law, regulation and the circumstances permit in order to fulfil the Board's commitment to enable shareholders to meet and interact with the Board on a face-to-face basis.

In conjunction with the increased flexibility in relation to holding general meetings, it is proposed to give the Board powers to postpone general meetings and increased flexibility in relation to the adjournment of general meetings.

The full terms of the proposed amendments to the Company's Articles of Association would have been made available for inspection as required under LR 13.8.10R (2) but for the Government restrictions implemented in response to the Covid-19 pandemic. As an alternative, a copy of the New Articles, together with a copy showing all of the proposed changes to the Existing Articles, will be available for inspection on the Company's website, asian-income.co.uk from the date of the AGM Notice until the close of the AGM, and will also be available for inspection at the venue of the AGM from 15 minutes before and during the AGM. A copy may also be obtained from the Company Secretary by requesting a copy using the address and details provided on page 102 of the published Annual Report and Financial Statements for the year ended 31 December 2020.

Recommendation

Your Board considers Resolutions 11 to 13 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 11 to 13 to be proposed at the Annual General Meeting, as they intend to do in respect of their own beneficial shareholdings which amount to 122,527 Ordinary Shares (0.1%).

Charles Clarke,

Chairman

7 April 2021

1st 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 financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law they are required to prepare the financial statements in accordance with International Financial Reporting Standards as issued by the IASB and applicable law.

Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of its profit or loss for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and estimates that are reasonable, relevant and reliable;

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

- assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

- use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations or have no realistic alternative but to do so.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that its financial statements comply with the Companies (Jersey) Law, 1991. They are responsible for such internal controls as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the Jersey governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Directors who hold office at the date of approval of this Director's Report confirm that so far as they are aware, there is no relevant audit information of which the Company's auditor is unaware, and that each Director has taken all the steps he or she ought to have taken as a Director to make himself or herself aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Responsibility Statement of the Directors in Respect of the Annual Financial Report

We confirm that to the best of our knowledge:

- the financial statements, prepared in accordance with the applicable set of accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the company; and

- the Strategic Report and Directors' Report includes a fair review of the development and performance of the business and the position of the issuer, together with a description of the principal risks and uncertainties that they face.

We consider the Annual Report and financial statements, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's position and performance, business model and strategy.

Charles Clarke,

Chairman

7 April 2021

1st 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, but not the content of any information included on the website that has been prepared or issued by third parties. 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 2020			31 December 2019
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Investment income	4
Dividend income		16,560	-	16,560	20,516	-	20,516
Interest income		320	-	320	406	-	406
Traded option premiums		62	-	62	74	-	74
		_______	______	______	_______	_______	______
Total revenue	3	16,942	-	16,942	20,996	-	20,996
Gains on investments held at fair value through profit or loss	10	-	37,573	37,573	-	24,759	24,759
Net currency gains		-	217	217	-	934	934
		_______	______	______	_______	_______	______
		16,942	37,790	54,732	20,996	25,693	46,689
		_______	______	______	_______	_______	______
Expenses
Investment management fee	5	(1,248)	(1,872)	(3,120)	(1,372)	(2,059)	(3,431)
Other operating expenses	6	(792)	-	(792)	(951)	-	(951)
		_______	______	______	_______	_______	______
Profit before finance costs and tax		14,902	35,918	50,820	18,673	23,634	42,307
		_______	______	______	_______	_______	______
Finance costs	7	(332)	(498)	(830)	(429)	(643)	(1,072)
		_______	______	______	_______	_______	______
Profit before tax		14,570	35,420	49,990	18,244	22,991	41,235

Tax expense	2(d)	(1,482)	(627)	(2,109)	(1,470)	(68)	(1,538)
		_______	______	______	_______	_______	______
Profit for the year		13,088	34,793	47,881	16,774	22,923	39,697
		_______	______	______	_______	_______	______
Earnings per Ordinary share (pence)	9	7.41	19.69	27.10	9.42	12.87	22.29
		_______	______	______	_______	_______	______

The Company does not have any income or expense that is not included in profit for the year, and therefore the "Profit for the year" is also the "Total comprehensive income for the year".
All of the profit 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 2020	31 December 2019
	Notes	£'000	£'000
Non-current assets
Investments held at fair value through profit or loss	10	462,823	435,984
		_______	______
Current assets
Cash and cash equivalents		6,177	3,458
Other receivables	11	1,422	1,568
		_______	______
		7,599	5,026
		_______	______
Creditors: amounts falling due within one year
Bank loans	12(a)	(35,734)	(25,990)
Other payables	12(b)	(2,518)	(1,550)
		_______	______
		(38,252)	(27,540)
		_______	______
Net current liabilities		(30,653)	(22,514)
		_______	______
Total assets less current liabilities		432,170	413,470

Creditors: amounts falling due after more than one year
Bank loans	12(a)	-	(9,999)
Deferred tax liability on Indian capital gains	12(c)	(694)	(68)
		_______	______
		(694)	(10,067)
		_______	______
Net assets		431,476	403,403
		_______	______
Stated capital and reserves
Stated capital	14	194,933	194,933
Capital redemption reserve		1,560	1,560
Capital reserve	15	222,751	191,412
Revenue reserve		12,232	15,498
		_______	______
Equity shareholders' funds		431,476	403,403
		_______	______
Net asset value per Ordinary share (pence)	16	245.40	227.15
		_______	______

STATEMENT OF CHANGES IN EQUITY

For the year ended 31 December 2020
			Capital
		Stated	redemption	Capital	Revenue	Retained
		capital	reserve	reserve	reserve	earnings	Total
	Note	£'000	£'000	£'000	£'000	£'000	£'000
Opening balance		194,933	1,560	191,412	15,498	-	403,403
Buyback of Ordinary shares for treasury	14	-	-	(3,454)	-	-	(3,454)
Profit for the year		-	-	-	-	47,881	47,881
Transferred from retained earnings to capital reserve{A}		-	-	34,793	-	(34,793)	-
Transferred from retained earnings to revenue reserve		-	-	-	13,088	(13,088)	-
Dividends paid	8	-	-	-	(16,354)	-	(16,354)
		_______	______	______	_______	_______	______
Balance at 31 December 2020		194,933	1,560	222,751	12,232	-	431,476
		_______	______	______	_______	_______	______

For the year ended 31 December 2019
			Capital
		Stated	redemption	Capital	Revenue	Retained
		capital	reserve	reserve	reserve	earnings	Total
	Note	£'000	£'000	£'000	£'000	£'000	£'000
Opening balance		194,933	1,560	170,680	15,026	-	382,199
Buyback of Ordinary shares for treasury	14	-	-	(2,191)	-	-	(2,191)
Profit for the year		-	-	-	-	39,697	39,697
Transferred from retained earnings to capital reserve{A}		-	-	22,923	-	(22,923)	-
Transferred from retained earnings to revenue reserve		-	-	-	16,774	(16,774)	-
Dividends paid	8	-	-	-	(16,302)	-	(16,302)
		_______	______	______	_______	_______	______
Balance at 31 December 2019		194,933	1,560	191,412	15,498	-	403,403
		_______	______	______	_______	_______	______

{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 stated capital in accordance with Companies (Jersey) Law 1991 Article 39A is £260,822,000 (2019 - £260,822,000). These amounts include proceeds arising from the issue of shares by the Company but exclude the cost of shares purchased for cancellation or treasury by the Company.
The accompanying notes are an integral part of the financial statements.

CASH FLOW STATEMENT

		Year ended	Year ended
		31 December 2020	31 December 2019
	Notes	£'000	£'000
Cash flows from operating activities
Dividend income received		15,765	19,104
Interest income received		328	423
Derivative income received		62	74
Investment management fee paid		(1,982)	(3,409)
Other cash expenses		(884)	(890)
		_______	______
Cash generated from operations		13,289	15,302
Interest paid		(856)	(1,094)
Overseas taxation suffered		(1,520)	(1,402)
		_______	______
Net cash inflows from operating activities		10,913	12,806

Cash flows from investing activities
Purchases of investments		(69,828)	(63,113)
Sales of investments		81,533	68,617
		_______	______
Net cash inflow from investing activities		11,705	5,504

Cash flows from financing activities
Purchase of own shares for treasury	14	(3,508)	(2,166)
Dividends paid	8	(16,354)	(16,302)
		_______	______
Net cash outflow from financing activities		(19,862)	(18,468)
		_______	______
Net increase/(decrease) in cash and cash equivalents		2,756	(158)
Cash and cash equivalents at the start of the year		3,458	3,622
Effect of foreign exchange on cash and cash equivalents		(37)	(6)
		_______	______
Cash and cash equivalents at the end of the year	2	6,177	3,458
		_______	______

Non-cash transactions during the year comprised stock dividends of £936,000 (2019 - £1,091,000) (Note 4).
The accompanying notes are an integral part of the financial statements.

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

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. The Company's principal activity is investing in securities in the Asia Pacific region.

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 Committee of the IASB ("IFRIC").
		The financial statements have also been prepared in accordance with the Statement of Recommended Practice (SORP), 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued in October 2019.
		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 Company has a revolving loan facility which expires in March 2024. Having taken these factors into account as well as the impact of Covid-19 and having assessed the principal risks and other matters set out in the Viability Statement, the Directors believe that, after making enquiries, the Company has adequate resources to continue in operational existence for the foreseeable future and has the ability to meet its financial obligations as they fall due for a period of at least twelve months from the date of approval of this Report. Accordingly, they continue to adopt the going concern basis of accounting in preparing the financial statements. Further detail is included in the Directors' Report (unaudited).
		Significant accounting judgements and estimates. The preparation of financial statements in conformity with IFRS requires the use of certain significant accounting judgements and estimates which requires management to exercise its judgement in the process of applying the accounting policies and are continually evaluated. These judgements include the assessment of the Company's ability to continue as a going concern. Another area requiring significant judgement and assumption in the financial statements is the determination of the fair value hierarchy classification of quoted bonds which have been assessed as being Level 2 due to not being considered to trade in active markets. Furthermore, the Board of Directors decided to write down the value of G3 Exploration to £nil in 2019 due to concerns over liquidity, credit worthiness, exit opportunities and the timing of any potential receipts. It has been decided to maintain that position in this year's financial statements. Another area of judgement includes the assessment of whether special dividends should be allocated to revenue or capital based on their individual merits. The Directors believe there are no significant estimates contained within the financial statements as all investments are valued at quoted bid price and all other assets and liabilities are valued at amortised cost.
		The financial statements are prepared on a historical cost basis, except for investments that have been measured at fair value through profit or loss ("FVTPL").
		The accounting policies which follow set out those policies which apply in preparing the financial statements for the year ended 31 December 2020.

		New and amended accounting standards and interpretations. The Company applied for the first time certain standards and amendments, which are effective for annual periods beginning on or after 1 January 2020. The adoption of these standards and amendments did not have a material impact on the financial statements:

		Standards
		IAS 1, 8, 34, 37, 38 and IFRS 2, 3, 6, 14 Amendments	References to the Conceptual Framework
		IFRS 3 Amendment	Definition of a Business
		IAS 1 and IAS 8 Amendments	Definition of Material
		IAS 39, IFRS 7 and 9 Amendments	Interest Rate Benchmark Reform (Phase 1)

		Interpretations
		IFRIC 12, 19, 20, 22 and SIC 32 Amendments	References to the Conceptual Framework

		Future amendments to standards and interpretations. At the date of authorisation of these financial statements, the following amendments to Standards and Interpretations were assessed to be relevant and are all effective for annual periods beginning on or after 1 January 2021:

		Standards
		IAS 39, IFRS 4, 7, 9 and 16 Amendments	Interest Rate Benchmark Reform (Phase 2)
		IAS 16 Amendment	Proceeds before intended use
		IAS 41, IFRS 1, 9 and 16 Amendment	Annual Improvements 2018-20 Cycle
		IFRS 3 Amendment	Reference to the Conceptual Framework
		IAS 1 Amendments	Classification of Liabilities as current or non-current
		IFRS 4 Amendments	Extension of IFRS 9 Deferral

		The Company intends to adopt the Standards and Interpretations in the reporting period when they become effective and the Board does 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 may be revised presentations to the Financial Statements and additional disclosures.
	(b)	Income. Dividend income receivable on equity shares is recognised on the ex-dividend date. Dividend income on equity shares where no ex-dividend date is quoted is 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 an area of significant accounting judgement and are credited to capital or revenue according to their circumstances. Dividend income 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, as well as interest receivable from cash and short-term deposits, are recognised using the 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 2020 will be subject to Jersey income tax at the rate of 0% (2019 - 0%).
		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.
	(e)	Investments. The Company has adopted the classification and measurement provisions of IFRS 9 'Financial Instruments'.
		The Company classifies its investments based on their contractual cash flow characteristics and the Company's business model for managing the assets. The business model, which is the determining feature for debt instruments, is such that the portfolio of investments is managed, and performance is evaluated, on a fair value basis. The Manager is also compensated based on the fair value of the Company's assets. Equity instruments are classified as FVTPL because cash flows resulting from such instruments do not represent payments of principal and interest on the principal outstanding, and therefore they fail the contractual cash flows test. Consequently, all investments are measured at FVTPL.
		Purchases and sales of investments are recognised on a trade date basis. Proceeds are measured at fair value, which is 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 held at fair value through profit or loss" on an average cost basis. 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. Financial assets previously classified as loans and receivables are held to collect contractual cash flows and give rise to cash flows representing solely payments of principal and interest. As such they are measured at amortised cost. Other receivables do not carry any interest, they have been assessed for any expected credit losses over their lifetime due to their short-term nature.
	(h)	Other payables. The Company has adopted the simplified approach under IFRS9 which allows entities to recognise lifetime expected losses on all these assets without the need to identify significant increases in credit risk. Other payables are non interest bearing and are stated at amortised cost.
	(i)	Dividends payable. Interim dividends payable are recognised in the financial statements in the period in which they are paid.
	(j)	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 £1 per share 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 make a transfer. 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. This reserve also reflects any gains realised when Ordinary shares are issued at a premium to £1 per share and any losses suffered on the redemption of Ordinary shares for cancellation at a value higher than £1 per share.
		When the Company purchases its Ordinary shares to be held in treasury, the amount of the consideration paid, which includes directly attributable costs, is recognised as a deduction from the capital reserve. Should these shares be sold subsequently, the amount received is recognised in the capital reserve and the resulting surplus or deficit on the transaction remains in the capital reserve.
		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 is the principal reserve which is utilised to fund dividend payments to shareholders.
	(k)	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 a currency 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.
	(l)	Borrowings. The Company has adopted the classification and measurement provisions of IFRS 9 'Financial Instruments'. Borrowings are measured at amortised cost using the effective interest rate method. No impact on the classification or measurement of borrowings has arisen due to the adoption of IFRS 9 in the prior year.
		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.
	(m)	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.
	(n)	Traded options. The Company may enter into certain derivative contracts (e.g. options) to gain exposure to the market. The option contracts are classified as fair value through profit or loss and accounted for as separate derivative contracts and are therefore shown in other assets or other liabilities at their fair value i.e. market value. The premium received on the open position is recognised over the life of the option in the revenue column of the Statement of Comprehensive Income along with fair value changes in the open position which occur due to the movement in underlying securities. Losses realised on the exercise of the contracts are recorded in the capital column of the Statement of Comprehensive Income as they arise. Where the Company enters into derivative contracts to manage market risk, gains or losses arising on such contracts are recorded in the capital column of the Statement of Comprehensive Income.

3.	Segmental information. The Company is organised into one main operating segment, which invests in equity securities, debt instruments and derivatives. 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 by each 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 2020	31 December 2019
		£'000	£'000
	Asia Pacific region	15,968	19,146
	United Kingdom	974	1,850
		_______	______
		16,942	20,996
		_______	______

4.	Investment income
		Year ended	Year ended
		31 December 2020	31 December 2019
		£'000	£'000
	Income from investments
	Overseas dividend income	14,655	17,603
	UK dividend income	969	1,822
	Stock dividend income	936	1,091
		_______	______
		16,560	20,516
		_______	______
	Other income
	Bond interest	315	378
	Deposit interest	5	28
	Traded option premiums	62	74
		_______	______
		382	480
		_______	______
	Total revenue	16,942	20,996
		_______	______

	During the year, the Company was entitled to premiums totalling £62,000 (2019 - £74,000) in exchange for entering into option contracts. At the year end there were no (2019 - nil) open positions. Losses realised on the exercise of derivative transactions are disclosed in note 10.

5.	Investment management fee
		Year ended			Year ended
		31 December 2020			31 December 2019
		Revenue	Capital	Total	Revenue	Capital	Total
		£'000	£'000	£'000	£'000	£'000	£'000
	Investment management fee	1,248	1,872	3,120	1,372	2,059	3,431
		_______	______	______	_______	_______	______

	The Company has an agreement with Aberdeen Standard Capital International Limited ("ASCIL") for the provision of management services. With the exception of stocklending activities, this agreement has been sub-delegated to Aberdeen Standard Investment (Asia) Limited ("ASI Asia"). Any stocklending activity has been sub-delegated to Aberdeen Asset Managers Limited.
	The investment management fee is payable quarterly in arrears and is based on an annual fee of 0.85% on the average net assets of the previous six months up to £350 million and 0.65% per annum thereafter (2019 - based on an annual amount of 0.85% of the net asset value of the Company valued monthly and on the average of the previous five monthly valuation points). The balance due to ASCIL at the year end was £2,306,000 (2019 - £1,168,000). The investment management fees are charged 40% to revenue and 60% to capital in line with the Board's expected long term returns.

6.	Other operating expenses
		Year ended	Year ended
		31 December 2020	31 December 2019
		£'000	£'000
	Directors' fees	154	154
	Promotional activities{A}	206	206
	Auditor's remuneration:
	- statutory audit	38	37
	Custody fees	140	126
	Secretarial and administration fee{B}	-	134
	Other	254	294
		_______	______
		792	951
		_______	______

	{A} Promotional activities in relation to the Company's participation in the Aberdeen Standard Investment Trust share plan and ISA are provided by Aberdeen Asset Managers Limited ("AAML"). The total fees paid are based on an annual rate of £206,000 (2019 - £206,000). An amount of £52,000 (2019 - £52,000) was payable to AAML at the year end.
	{B} The Company agreed with the Manager that payment of the secretarial and administration fee of £134,000 would cease with effect from 1 January 2020. As such there was a balance due to ASCIL at the year end of £nil (2019 - £67,000).
	No fees have been paid to the Company's auditor during the period other than those listed here.

7.	Finance costs
		Year ended			Year ended
		31 December 2020			31 December 2019
		Revenue	Capital	Total	Revenue	Capital	Total
		£'000	£'000	£'000	£'000	£'000	£'000
	Interest on bank loans	332	498	830	429	643	1,072
		_______	______	______	_______	_______	______

	Finance costs are charged 40% to revenue and 60% to capital as disclosed in the accounting policies.

8.	Dividends on Ordinary equity shares
		Year ended		Year ended
		31 December 2020		31 December 2019
		£'000		£'000
	Amounts recognised as distributions to equity holders in the year:
	Fourth interim dividend 2019 - 2.50p per Ordinary share (2018 - 2.40p)	4,438		4,286
	First interim dividend 2020 - 2.25p per Ordinary share (2019 - 2.25p)	3,981		4,012
	Second interim dividend 2020 - 2.25p per Ordinary share (2019 - 2.25p)	3,976		4,004
	Third interim dividend 2020 - 2.25p per Ordinary share (2019 - 2.25p)	3,959		4,000
		_______		______
		16,354		16,302
		_______		______

	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 £13,088,000 (2019 - £16,774,000).

			2020		2019
			£'000		£'000
	First interim dividend 2020 - 2.25p per Ordinary share (2019 - 2.25p)		3,981		4,012
	Second interim dividend 2020 - 2.25p per Ordinary share (2019 - 2.25p)		3,976		4,004
	Third interim dividend 2020 - 2.25p per Ordinary share (2019 - 2.25p)		3,959		4,000
	Fourth interim dividend 2020 - 2.55p per Ordinary share (2019 - 2.50p)		4,484		4,438
			_______		______
			16,400		16,454
			_______		______

	The fourth interim dividend for 2020, amounting to £4,484,000 (2019 - fourth interim dividend of £4,438,000), is not recognised as a liability in these financial statements as it was announced and paid after 31 December 2020.

9.	Earnings per share
	Ordinary shares. The earnings per Ordinary share is based on the profit after taxation of £47,881,000 (2019 - profit £39,697,000) and on 176,666,175 (2019 - 178,087,642) Ordinary shares, being the weighted average number of Ordinary shares in issue during the year excluding Ordinary shares held in treasury.
	The earnings per Ordinary share detailed above can be further analysed between revenue and capital as follows:

		Year ended			Year ended
		31 December 2020			31 December 2019
		Revenue	Capital	Total	Revenue	Capital	Total
	Net profit (£'000)	13,088	34,793	47,881	16,774	22,923	39,697
	Weighted average number of Ordinary shares in issue{A}			176,666,175			178,087,642
	Return per Ordinary share (pence)	7.41	19.69	27.10	9.42	12.87	22.29

	{A} Calculated excluding shares held in treasury

10.	Investments held at fair value through profit or loss
		Year ended	Year ended
		31 December 2020	31 December 2019
		£'000	£'000
	Opening book cost	333,903	324,939
	Opening investment holding gains	102,081	91,234
		_______	______
	Opening fair value	435,984	416,173

	Analysis of transactions made during the year
	Purchases at cost	70,750	62,842
	Sales proceeds received	(81,484)	(67,790)
	Gains on investments{A}	37,573	24,759
		_______	______
	Closing fair value	462,823	435,984
		_______	______
		£'000	£'000
	Closing book cost	313,692	333,903
	Closing investment gains	149,131	102,081
		_______	______
	Closing fair value	462,823	435,984
		_______	______

	{A} Includes losses realised on the exercise of traded options of £nil (2019 - £236,000) which are reflected in the capital column of the Statement of Comprehensive Income in accordance with accounting policy 2(n). Premiums received from traded options totalled £62,000 (2019 - £74.000) per note 4.

	The Company received £81,484,000 (2019 - £67,790,000) from investments sold in the year. The book cost of these investments when they were purchased was £90,961,000 (2019 - £53,878,000). These investments have been revalued over time and until they were sold any unrealised gains/losses were included in the fair value of the investments.

		Year ended	Year ended
		31 December 2020	31 December 2019
	The portfolio valuation	£'000	£'000
	Listed on recognised stock exchanges:
	Equities - UK	15,005	21,153
	Equities - overseas	443,884	410,952
	Bonds - overseas	3,934	3,879
		_______	______
	Total	462,823	435,984
		_______	______

	Transaction costs. During the year expenses were incurred in acquiring or disposing of investments held at fair value through profit or loss. These have been expensed through capital and are included within gains/(losses) on financial investments held 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 2020	31 December 2019
		£'000	£'000
	Purchases	84	73
	Sales	91	71
		_______	______
		175	144
		_______	______

	The above transaction costs are calculated in line with the AIC SORP. The transaction costs in the Company's Key Information Document are calculated on a different basis and in line with the PRIIPs regulations.

11.	Debtors: amounts falling due within one year
		2020	2019
		£'000	£'000
	Amounts due from brokers	-	49
	Prepayments and accrued income	1,422	1,519
		_______	______
		1,422	1,568
		_______	______
	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:

			2020			2019
				Local			Local
			Interest	currency	Carrying	Interest	currency		Carrying
			rate	principal	amount	rate	principal		amount
			%	amount	£'000	%	amount		£'000
		Unsecured bank loans repayable within one year:
		Hong Kong Dollar	1.544	73,500,000	6,934	3.305	212,500,000		20,587
		United States Dollar	1.503	19,000,000	13,900	2.686	7,157,751		5,403
		Sterling	1.393	4,900,000	4,900	-	-		-
		Sterling	2.179	10,000,000	10,000	-	-		-
					_______				_______
		Total			35,734				25,990
					_______				_______
		Unsecured bank loans repayable between one and five years:
		Sterling	-	-	-	2.179	10,000,000		9,999
					_______				_______
		Total			-				9,999
					_______				_______

		At the date of signing this report, loans of HK$73,500,000, US$19,000,000 and £4,900,000 were drawn down at interest rates of 1.33054%, 1.3315% and 1.24688% respectively under a new £40 million multi currency revolving loan facility agreement with Bank of Nova Scotia, London which runs until 2 March 2024. This facility agreement replaced the existing £40 million multi currency revolving loan facility agreement with Scotiabank Europe PLC. On 2 March 2021 the £10,000,000 term loan with Scotiabank Europe PLC was replaced with a three year loan of £10,000,000 with Bank of Nova Scotia, London at an interest rate of 1.53%. Financial covenants contained within the relevant loan agreements provide, inter alia, that the Company's NAV shall at no time be less than £185 million and that adjusted NAV coverage shall at no time be less than 4.0 to 1.0. At 31 December 2020 net assets were £431 million and borrowings were 8.3% thereof. The Company has complied with all financial covenants throughout the year.

							2020	2019
	(b)	Other payables					£'000	£'000
		Amounts due to brokers for purchase of shares for treasury					-	54
		Investment management fees					2,306	1,168
		Other amounts due					212	328
							_______	______
							2,518	1,550
							_______	______
	Amounts falling due in more than one year:
							2020	2019
	(c)	Other payables					£'000	£'000
		Deferred tax liability on Indian capital gains					694	68
							_______	______

13.	Analysis of changes in financing during the year
		2020	2019
		£'000	£'000
	Opening balance at 1 January	35,989	36,929
	Increase in loan drawdown	374	-
	Foreign exchange movements	(629)	(940)
		_______	______
	Closing balance at 31 December	35,734	35,989
		_______	______

14.	Stated capital
		Ordinary	Treasury	Total
		shares	shares	shares
		(number)	(number)	(number)	£'000
	Authorised Ordinary shares of no par value	Unlimited	Unlimited	Unlimited	Unlimited

	Issued and fully paid Ordinary shares of no par value
	At 31 December 2019	177,591,975	17,341,414	194,933,389	194,933
	Shares purchased for treasury	(1,767,492)	1,767,492	-	-
		__________	_________	_________	_______
	At 31 December 2020	175,824,483	19,108,906	194,933,389	194,933
		__________	_________	_________	_______

	During the year 1,767,492 (2019 - 1,038,713) Ordinary shares were bought back by the Company for holding in treasury at a total cost of £3,454,000 (2019 - £2,191,000). At the year end 19,108,906 (2019 - 17,341,414) Ordinary shares were held in treasury, which represents 9.80% (2019 - 8.90%) of the Company's total issued share capital at 31 December 2020.
	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.
	Since the year end a further 90,154 Ordinary shares have been bought back for holding in treasury at a cost of £201,000.
	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.

15.	Capital reserve
		2020	2019
		£'000	£'000
	At 1 January	191,412	170,680
	Net currency gains	217	934
	Movement in unrealised fair value	47,050	10,847
	(Loss)/profit on realisation of investments	(9,477)	13,912
	Costs charged to capital	(2,997)	(2,770)
	Buyback of Ordinary shares for treasury	(3,454)	(2,191)
		_______	______
	At 31 December	222,751	191,412
		_______	______

16.	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
		2020	2020	2019	2019
		p	£'000	p	£'000
	Ordinary shares	245.40	431,476	227.15	403,403
		_______	______	______	_______

	The net asset value per Ordinary share is based on 175,824,483 (2019 - 177,591,975) Ordinary shares, being the number of Ordinary shares in issue at the year end excluding Ordinary shares held in treasury.

17.	Analysis of changes in net debt
		At				At
		31 December	Currency	Cash	Non-cash	31 December
		2019	differences	flows	movements	2020
		£'000	£'000	£'000	£'000	£'000
	Cash and short term deposits	3,458	(37)	2,756	-	6,177
	Debt due within one year	(25,990)	629	(374)	(9,999)	(35,734)
	Debt due after more than one year	(9,999)	-	-	9,999	-
		_______	______	______	_______	_______
		(32,531)	592	2,382	-	(29,557)
		_______	______	______	_______	_______

		At				At
		31 December	Currency	Cash	Non-cash	31 December
		2018	differences	flows	movements	2019
		£'000	£'000	£'000	£'000	£'000
	Cash and short term deposits	3,622	(6)	(158)	-	3,458
	Debt due within one year	-	-	-	(25,990)	(25,990)
	Debt due after more than one year	(36,929)	939	-	25,991	(9,999)
		_______	______	______	_______	_______
		(33,307)	933	(158)	1	(32,531)
		_______	______	______	_______	_______

	A statement reconciling the movement in net funds to the net cash flow has not been presented as there are no differences from the above analysis.

18.	Financial instruments. The Company's investment activities expose it to various types of financial risk associated with the financial instruments and markets in which it invests. The Company's financial instruments, other than derivatives, comprise securities and other investments, cash balances, bank loans and debtors and creditors that arise directly from its operations; for example, in respect of sales and purchases awaiting settlement, and debtors for accrued income.
	The Company also has the ability to enter into derivative transactions, in the form of traded options, for the purpose of enhancing income returns and portfolio management. During the year, the Company entered into certain derivative contracts. As disclosed in note 4, the premium received in respect of options written in the year was £62,000 (2019 - £74,000). Positions closed during the year realised a loss of £nil (2019 - £236,000). The realised loss was caused by the underlying price on exercise being higher than the exercise price for call options and lower than the exercise price for put options. The largest position in derivative contracts held during the year at any given time was £33,000 (2019 - £52,000). The Company had no open positions in derivative contracts at 31 December 2020.
	The Board has delegated the risk management function to ASCIL under the terms of its management agreement with ASCIL (further details of which are included under note 5). The Board regularly reviews and agrees policies for managing each of the key financial risks identified with the Manager. The types of risk and the Manager's approach to the management of each type of risk, are summarised below. Such approach has been applied throughout the year and has not changed since the previous accounting period. The numerical disclosures exclude short-term debtors and creditors, with the exception of short-term borrowings.
	Risk management framework. The directors of ASCIL collectively assume responsibility for the Manager's obligations under the AIFMD including reviewing investment performance and monitoring the Company's risk profile during the year.
	ASCIL is a fully integrated member of the Standard Life Aberdeen plc Group (the "Group"), which provides a variety of services and support to ASCIL in the conduct of its business activities, including in the oversight of the risk management framework for the Company. ASCIL has delegated the day to day administration of the investment policy to Aberdeen Standard Investments (Asia) Limited, which is responsible for ensuring that the Company is managed within the terms of its investment guidelines and the limits set out in its pre-investment disclosures to investors (details of which can be found on the Company's website). ASCIL has delegated responsibility for monitoring and oversight of the Investment Manager and other members of the Group which carry out services and support to ASCIL.
	The Manager conducts its risk oversight function through the operation of the Group's risk management processes and systems which are embedded within the Group's operations. The Group's Risk Division supports management in the identification and mitigation of risks and provides independent monitoring of the business. The Division includes Compliance, Business Risk, Market Risk, Risk Management and Legal. The team is headed up by the Group's Head of Risk, who reports to the Chief Executive Officer of the Group. The Risk Division achieves its objective through embedding the Risk Management Framework throughout the organisation using the Group's operational risk management system ("Shield").
	The Group's Internal Audit Department is independent of the Risk Division and reports directly to the Group Chief Executive Officer and to the Audit Committee of the Group's Board of Directors. The Internal Audit Department is responsible for providing an independent assessment of the Group's control environment.
	The Group's corporate governance structure is supported by several committees to assist the board of directors of Standard Life Aberdeen plc, its subsidiaries and the Company to fulfil their roles and responsibilities. The Group's Risk Division is represented on all committees, with the exception of those committees that deal with investment recommendations. The specific goals and guidelines on the functioning of those committees are described on the committees' terms of reference.
	Risk management. 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 receivables and payables with the exception of the credit risk of short-term debtors.
	(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;
	- the 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 two (2019 - two) holdings in fixed rate overseas corporate bonds, with G3 Exploration valued at £nil (2019 - £nil) and ICICI Bank at £3,934,000 (2019 - £3,879,000). 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. G3 Exploration appointed joint liquidators during December 2019. Using an adjusted net asset value model the Board of Directors decided to write down the value of G3 Exploration to £nil due to concerns over liquidity, credit worthiness, exit opportunities and the timing of any potential receipts. There has been no change in carrying value during the year under review or as at the date of this Report.
	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. Details of the terms and conditions of the bank borrowings are disclosed in note 12. Interest is due on the Bank of Nova Scotia, London fixed term loan quarterly with the next interest payment being due on 2 June 2021. Interest is due on the Bank of Nova Scotia, London multi currency revolving loan facility on the maturity date, with the next interest payment being due on 30 April 2021.
	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 but including short term borrowings 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 2020			Years			%					£'000			£'000
	Assets
	Indian Overseas Corporate Bond			3.60			9.15					-			3,934
	Cash at bank - Sterling			-			-					2,655			-
	Cash at bank - Hong Kong Dollar			-			-					3,476			-
	Cash at bank - Taiwan Dollar			-			-					41			-
	Cash at bank - Singapore Dollar			-			-					5			-
												_______			______
												6,177			3,934
												_______			______

				Weighted average
				period for which			Weighted average				Floating				Fixed
				rate is fixed			interest rate				rate				rate
	At 31 December 2020			Years			%				£'000				£'000
	Liabilities
	Bank loan - Hong Kong Dollar			0.02			1.54				-				(6,934)
	Bank loan - US Dollar			0.02			1.50				-				(13,900)
	Bank loan - Sterling			0.11			1.39				-				(4,900)
	Bank loan - Sterling			0.17			2.18				-				(10,000)
											_______				______
											-				(35,734)
											_______				______

				Weighted average
				period for which			Weighted average				Floating				Fixed
				rate is fixed			interest rate				rate				rate
	At 31 December 2019			Years			%				£'000				£'000
	Assets
	Indian Overseas Corporate Bond			4.60			9.15				-				3,879
	Cash at bank - Sterling			-			-				3,414				-
	Cash at bank - Taiwan Dollar			-			-				39				-
	Cash at bank - Singapore Dollar			-			-				5				-
											_______				______
											3,458				3,879
											_______				______
				Weighted average
				period for which			Weighted average				Floating				Fixed
				rate is fixed			interest rate				rate				rate
	At 31 December 2019			Years			%				£'000				£'000
	Liabilities
	Bank loan - Hong Kong Dollar			0.20			3.30				-				(20,587)
	Bank loan - US Dollar			0.04			2.69				-				(5,403)
	Bank loans - Sterling			1.17			2.18				-				(9,999)
											_______				______
											-				(35,989)
											_______				______

	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 analysis demonstrates the sensitivity of the Company's profit 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 (2019 - not material). This consideration is based on the Company's exposure to interest rates on its floating rate cash balances, fixed interest securities and bank loans.
	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 2020.
	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 2020								31 December 2019
			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	62,324	-			62,324				67,554				-			67,554
	Chinese Renminbi	51,564	-			51,564				6,562				-			6,562
	Hong Kong Dollar	16,273	(3,458)			12,815				68,374				(20,587)			47,787
	Indian Rupee	21,706	3,934			25,640				14,101				3,879			17,980
	Indonesian Rupiah	4,181	-			4,181				4,607				-			4,607
	Japanese Yen	10,881	-			10,881				16,176				-			16,176
	Korean Won	65,985	-			65,985				39,967				-			39,967
	Malaysian Ringgit	4,240	-			4,240				11,951				-			11,951
	New Zealand Dollar	22,382	-			22,382				3,686				-			3,686
	Singapore Dollar	72,876	5			72,881				92,072				5			92,077
	Taiwanese Dollar	80,503	41			80,544				49,336				39			49,375
	Thailand Baht	26,723	-			26,723				36,408				-			36,408
	US Dollar	4,246	(13,900)			(9,654)				4,037				(5,403)			(1,366)
		_______	______			______				_______				_______			______
	Total	443,884	(13,378)			430,506				414,831				(22,067)			392,764
		_______	______			______				_______				_______			______

	Foreign currency sensitivity. The following table details the impact on the Company's net assets 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.

											2020				2019
											£'000				£'000
	Australian Dollar										6,232				6,755
	Chinese Renminbi										5,156				656
	Hong Kong Dollar										1,282				4,779
	Indian Rupee										2,564				1,798
	Indonesian Rupiah										418				461
	Japanese Yen										1,088				1,618
	Korean Won										6,599				3,997
	Malaysian Ringgit										424				1,195
	New Zealand Dollar										2,238				369
	Singapore Dollar										7,288				9,208
	Taiwanese Dollar										8,054				4,938
	Thailand Baht										2,672				3,641
	US Dollar										(965)				(137)
											_______				______
	Total										43,050				39,278
											_______				______
	Equity price risk. Equity price risk (i.e. 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 on pages 99 and 100 of the published Annual Report and Financial Statements for the year ended 31 December 2020, 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 recognised stock exchanges.
	Concentration of exposure to equity price risks. A geographic analysis of the Company's investment portfolio is shown on page 35 of the published Annual Report and Financial Statements for the year ended 31 December 2020, 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% (2019 - 10%) in the fair values of the Company's equities. This level of change is considered to be reasonably possible based on observation of current market conditions. The sensitivity analysis is based on the Company's equities at each Balance Sheet date, with all other variables held constant.

					2020							2019
					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)				45,889		(45,889)					43,211			(43,211)
					_______		______					______			_______
	Total profit after taxation - increase /(decrease)				45,889		(45,889)					43,211			(43,211)
					_______		______					______			_______
	Equity				45,889		(45,889)					43,211			(43,211)
					_______		______					______			_______

	(ii) Liquidity risk. This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities, which stood at £38,946,000 (2019 - £37,607,000).
	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 £6,177,000 and £462,823,000 (2019 - £3,458,000 and £435,984,000) at the year end respectively. Short-term flexibility is achieved through the use of loan facilities.
	Maturity profile. The following table sets out the undiscounted gross cash flows, by maturity, of the Company's significant financial liabilities and cash at the Balance Sheet date:

								Within					Between
								1 year					1-5 years			Total
	At 31 December 2020							£'000					£'000			£'000
	Fixed rate
	Bank loans							35,734					-			35,734
	Interest on bank loans							(93)					-			(93)
								_______					______			______
								35,641					-			35,641

	Floating rate
	Cash							6,177					-			6,177
								_______					______			______

								Within					Between
								1 year					1-5 years			Total
	At 31 December 2019							£'000					£'000			£'000
	Fixed rate
	Bank loans							25,990					9,999			35,989
	Interest on bank loans							(400)					(54)			(454)
								_______					______			______
								25,590					9,945			35,535
								_______					______			______
	Floating rate
	Cash							3,458					-			3,458
								_______					______			______

	Details of the Company's borrowing arrangements are disclosed in note 12.
	(iii) Credit risk. This is failure of the counterparty to a transaction to discharge its obligations under that transaction that could result in the Company suffering a loss. The Company is exposed to credit risk on debt instruments. These classes of financial assets are not subject to IFRS 9's impairment requirements as they are measured at FVTPL. The carrying value of these assets, under IFRS 9 represents the Company's maximum exposure to credit risk on financial instruments not subject to the IFRS 9 impairment requirements on the respective reporting dates (see table below "Credit Risk Exposure").
	The Company's only financial assets subject to the expected credit loss model within IFRS 9 are only short-term other receivables. At 31 December 2020, the total of short-term other receivables was £1,422,000 (2019 - £1,568,000). Given the balance is not material an assessment of credit risk is not performed. No other assets are considered impaired and no other amounts have been written off during the year.
	All other receivables are expected to be received within twelve months or less. An amount is considered to be in default if it has not been received on the due date.
	As only other receivables are impacted by the IFRS 9 model, the Company has adopted the simplified approach. The loss allowance is therefore based on lifetime ECLs.
	Management of the risk. Where the investment manager makes an investment in a bond, corporate or otherwise, where available, 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 G3 Exploration. G3 Exploration appointed joint liquidators during December 2019. Therefore the Board of Directors decided to write down the value of G3 Exploration to nil due to the uncertainty over the repayment of the debt. No interest for G3 Exploration has been accrued in 2019 or 2020.
	- an Indian overseas corporate bond issued by ICICI Bank.
	All of the above bonds are non-rated. The investment manager undertakes an ongoing review of their suitability for inclusion within the portfolio.
	Investment transactions are carried out with a large number of brokers, whose credit rating 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:

						2020								2019
						Balance			Maximum					Balance			Maximum
						Sheet			exposure					Sheet			exposure
						£'000			£'000					£'000			£'000
	Non-current assets
	Investments held at fair value through profit or loss					462,823			3,934					435,984			3,879

	Current assets
	Cash at bank					6,177			6,177					3,458			3,458
	Other receivables					1,422			1,422					1,568			1,568
						_______			______					______			_______
						470,422			11,533					441,010			8,905
						_______			______					______			_______

	(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. As noted in note 2(l) financial liabilities are classified under IFRS 9. The Company has not designated any financial liabilities at FVPL. Therefore, this requirement has not had an impact on the Company. 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.

19.	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:
		2020	2019
		£'000	£'000
	Debt
	Borrowings under the multi-currency loan facility	25,734	25,990
	Borrowing under the three year Sterling loan facility	10,000	9,999
		_______	______
		35,734	35,989
		_______	______
		2020	2,019
	Equity	£'000	£'000
	Equity share capital	194,933	194,933
	Retained earnings and other reserves	236,543	208,470
		_______	______
		431,476	403,403
		_______	______
	Debt as a % of net assets{A}	8.28	8.92
		_______	______

	{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 Investment Manager's views on the market;
	- the need to buy back equity shares for cancellation or for holding in treasury, which takes account of the difference between the net asset value per Ordinary share and the Ordinary share price (i.e. the level of share price discount);
	- the need for new issues of equity shares; and
	- the extent to which revenue in excess of that which is required to be distributed should be retained.
	The Company's objectives, policies and processes for managing capital are unchanged from the preceding accounting period.

20.	Related party transactions and transactions with the Manager
	Fees payable during the period to the Directors are disclosed in note 6 and within the Directors' Remuneration Report (unaudited) on pages 59 and 60 of the published Annual Report and Financial Statements for the year ended 31 December 2020, along with their interests in shares of the Company.
	Mr Young, who is a Director of the Company, is employed by the Company's Investment Manager, Aberdeen Standard Investments (Asia) Limited, which is a wholly-owned subsidiary of Standard Life Aberdeen plc. The Manager, Aberdeen Standard Capital International Limited ("ASCIL") is also a subsidiary of Standard Life Aberdeen plc. Management, promotional activities and secretarial and administration services are provided by ASCIL with details of transactions during the year and balances outstanding at the year end disclosed in notes 5 and 6.

21.	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.

Additional Notes:

The Annual Financial Report Announcement is not the Company's statutory financial statements. The above results for the year ended 31 December 2020 are an abridged version of the Company's full financial statements, which have been approved and audited with an unqualified report. The 2019 and 2020 statutory financial statements 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 2019 is derived from the statutory financial statements for 2019 which have been lodged with the JFSC. The 2020 financial statements will be filed with the JFSC in due course.

The Annual Report will be posted to Shareholders in May 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* 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 Standard Capital International Limited

Company Secretary

7 April 2021

INVESTMENT PORTFOLIO - TEN LARGEST INVESTMENTS

As at 31 December 2020

	Samsung Electronics (Pref)	Taiwan Semiconductor Manufacturing
	Holding at the year end: 11.4%	Holding at the year end: 10.3%
	One of the global leaders in the memory chips segment, and a major player in smartphones and display panels as well. It has a vertically-integrated business model and robust balance sheet, alongside good free cash flow generation.	The world's largest pure-play semiconductor manufacturer, TSMC provides a full range of integrated foundry services along with a robust balance sheet and good cash generation that enables it to keep investing in cutting-edge technology and innovation.

	Venture Corporation	Ping An Insurance (H Shares)
	Holding at the year end: 3.6%	Holding at the year end: 3.2%
	Provides contract manufacturing services to electronics companies. The company's major segments include Printing, Imaging, Networking and Communications. It has been increasing its revenue contribution from Original Design Manufacturing.	A Chinese financial conglomerate with one of the best life insurance franchises domestically, backed by technological expertise, progressive management and an unrivalled ecosystem in a steadily growing market.

	Oversea-Chinese Banking Corporation	Rio Tinto {C}
	Holding at the year end: 2.9%	Holding at year end: 2.8%
	A well-managed Singapore bank with a strong capital base and impressive cost-to-income ratio. In addition to its core banking activities it has sizeable wealth management and life assurance divisions.	The Australian miner is a proxy for China and emerging markets' secular growth story. Its assets are world-class and management has been disciplined through the cycle, focused on strengthening its balance sheet, cutting costs and preserving cash.

	LG Chemical (Pref)	Waypoint REIT
	Holding at the year end: 2.7%	Holding at the year end: 2.4%
	The Korean company has a robust and cash-generative chemicals business, which serves as a strong base for it to build on its leading position in the electric-vehicle battery market.	Australia's largest listed REIT owns solely service station and convenience properties with a high quality network across the country. It has good long-term potential, boasting a high-quality tenant portfolio, long lease expiry profile, and a robust balance sheet with limited capital expenditure requirements. This allows it to maintain a healthy distribution policy.

	DBS Group	AusNet Services
	Holding at the year end: 2.3%	Holding at the year end: 2.3%
	It is the best positioned and most digitally enabled Singapore bank with the lowest funding cost structure. Its trusted brand, management bench strength, well capitalised balance sheet and good asset quality support the outlook for sustainable dividends.	The Australian utility company engages in electricity distribution and transmission, and owns gas distribution assets in Victoria state. It offers relatively stable revenues, given that most of it is regulated, and an attractive dividend yield.

CONSOLIDATED INVESTMENT PORTFOLIO - OTHER INVESTMENTS

As at 31 December 2020
		Valuation	Total	Valuation
		2020	assets{A}	2019{B}
Company	Country	£'000	%	£'000
Samsung Electronics (Pref)	South Korea	53,266	11.4	29,101
Taiwan Semiconductor Manufacturing Company	Taiwan	48,407	10.4	29,569
Venture Corporation	Singapore	16,848	3.6	16,199
Ping An Insurance (H Shares)	China	14,763	3.2	12,442
Oversea-Chinese Banking Corporation	Singapore	13,380	2.9	14,463
Rio Tinto {C}	Australia	13,292	2.8	7,159
LG Chemical (Pref)	South Korea	12,719	2.7	10,866
Waypoint REIT	Australia	11,281	2.4	10,332
DBS Group	Singapore	10,787	2.3	10,642
AusNet Services	Australia	10,767	2.3	9,555
Top ten investments		205,510	44.0
Taiwan Mobile	Taiwan	10,190	2.2	12,267
China Resources Land	China	9,315	2.0	9,239
GlobalWafers	Taiwan	8,940	1.9	3,896
SAIC Motor 'A'	China	8,899	1.9	6,562
Infosys	India	8,409	1.8	5,187
Spark New Zealand	New Zealand	8,351	1.8	7,315
Momo.com Inc	Taiwan	8,243	1.8	3,604
Singapore Telecommunications	Singapore	8,001	1.7	10,665
BHP Group {C}	Australia	7,662	1.6	7,072
Commonwealth Bank of Australia	Australia	7,628	1.6	6,633
Top twenty investments		291,148	62.3
Auckland International Airport	New Zealand	7,451	1.6	2,438
Singapore Technologies Engineering	Singapore	7,194	1.5	7,507
China Mobile	China	7,123	1.5	9,435
Shopping Centres Australasia	Australia	6,989	1.5	8,834
Power Grid Corp of India	India	6,989	1.5	-
Tesco Lotus Retail Growth	Thailand	6,645	1.4	12,106
NZX	New Zealand	6,580	1.4	3,686
Siam Cement {D}	Thailand	6,405	1.4	6,855
Amada Holdings	Japan	6,309	1.4	6,836
Tata Consultancy Services	India	6,308	1.4	5,035
Top thirty investments		359,141	76.9
Hana Microelectronics (Foreign)	Thailand	6,016	1.3	8,424
Hang Lung Properties	Hong Kong	5,947	1.3	6,151
Charter Hall long WALE	Australia	5,805	1.2	-
United Overseas Bank	Singapore	5,555	1.2	6,574
AIA Group	Hong Kong	4,939	1.1	-
ASX	Australia	4,877	1.0	4,988
Ascendas India Trust	Singapore	4,749	1.0	4,294
Accton Technology	Taiwan	4,723	1.0	-
Midea Group 'A'	China	4,708	1.0	-
Okinawa Cellular Telephone	Japan	4,572	1.0	6,140
Top forty investments		411,032	88.0
CapitaLand	Singapore	4,309	0.9	-
Yum China Holdings	China	4,246	0.9	4,037
Tisco Financial Group Foreign	Thailand	4,211	0.9	4,715
Bank Rakyat	Indonesia	4,181	0.9	4,607
ICICI Bank {E}	India	3,934	0.8	3,879
APA Group	Australia	3,836	0.8	-
Aeon Credit Service M	Malaysia	3,830	0.8	5,184
CNOOC	China	3,694	0.8	6,836
Medibank Private	Australia	3,480	0.7	2,515
Land & Houses Foreign	Thailand	3,446	0.7	4,307
Top fifty investments		450,199	96.2
China Vanke (H Shares)	China	3,062	0.7	-
HSBC Holdings	Hong Kong	3,059	0.7	15,471
Hong Kong Exchanges & Clearing	Hong Kong	1,804	0.4	-
Mapletree Commercial Trust	Singapore	1,760	0.4	-
Standard Chartered	United Kingdom	1,713	0.4	2,620
Convenience Retail Asia	Hong Kong	524	0.1	3,236
SP Setia (Pref)	Malaysia	409	0.1	1,682
City Developments (Pref)	Singapore	293	0.1	302
G3 Exploration {E}	China	-	-	-
Total value of investments		462,823	99.1
Net current assets{F}		4,387	0.9
Total assets{A}		467,210	100.0

{A} Total Assets less current liabilities (before deducting prior charges).
{B} Purchases and/or sales effected during the year may result in 2019 and 2020 values not being directly comparable.
{C} Incorporated in and listing held in United Kingdom.
{D} Holding includes investment in common (£4,282,000) and non-voting depositary receipt (£2,123,000) lines.
{E} Corporate bonds.
{F} Excludes bank loans of £35,734,000.

ALTERNATIVE PERFORMANCE MEASURES

Alternative performance measures are numerical measures of the Company's current, historical or future performance, financial position or cash flows, other than financial measures defined or specified in the applicable financial framework. The Company's applicable financial framework includes IFRS and the AIC SORP. The Directors assess the Company's performance against a range of criteria which are viewed as particularly relevant for closed-end investment companies.
Total return. Total return is considered to be an alternative performance measure. NAV and share price total returns show how the NAV and share price have performed over a period of time in percentage terms, taking into account both capital returns and dividends paid to shareholders. NAV total return involves investing the net dividend in the NAV of the Company with debt at fair value on the date on which that dividend goes ex-dividend. Share price total return involves reinvesting the net dividend in the share price of the Company on the date on which that dividend goes ex-dividend.
The tables below provide information relating to the NAVs and share prices of the Company on the dividend reinvestment dates during the years ended 31 December 2020 and 31 December 2019.

	Dividend			Share
Year ended 31 December 2020	rate	NAV		price
31 December 2019	N/A	227.15p		214.00p
23 January 2020	2.50p	229.77p		212.50p
23 April 2020	2.25p	187.79p		166.00p
30 July 2020	2.25p	208.09p		183.00p
22 October 2020	2.25p	218.70p		198.25p
31 December 2020	N/A	245.40p		228.50p
		_______		_______
Total return		+12.9%		+12.1%
		_______		_______
	Dividend			Share
Year ended 31 December 2019	rate	NAV		price
31 December 2018	N/A	213.96p		195.75p
17 January 2019	2.40p	216.13p		196.50p
25 April 2019	2.25p	231.16p		214.00p
18 July 2019	2.25p	237.99p		218.00p
24 October 2019	2.25p	226.02p		207.00p
31 December 2019	N/A	227.15p		214.00p
		_______		_______
Total return		+10.5%		+14.2%
		_______		_______

Discount to net asset value per Ordinary share. The difference between the share price of 228.50p (31 December 2019 - 214.00p) and the net asset value per Ordinary share of 245.40p (31 December 2019 - 227.15p) expressed as a percentage of the net asset value per Ordinary share.
Dividend cover. Revenue return per share of 7.41p (2019 - 9.42p) divided by dividends per share of 9.30p (2019 - 9.25p) expressed as a ratio.
Dividend yield. The annual dividend of 9.30p per Ordinary share (2019 - 9.25p) divided by the share price of 228.50p (2019 - 214.00p), expressed as a percentage.
Net gearing. Net gearing measures the total borrowings of £35,734,000 (31 December 2019 - £35,989,000) less cash and cash equivalents of £6,177,000 (31 December 2019 - £3,453,000) divided by shareholders' funds of £431,476,000 (31 December 2019 - £403,403,000), expressed as a percentage. Under AIC reporting guidance cash and cash equivalents includes net amounts due to brokers at the year end of £nil (2019 - £5,000) as well as cash and cash equivalents of £6,177,000 (2019 - £3,458,000).
Ongoing charges. Ongoing charges is considered to be an alternative performance measure. The ongoing charges ratio has been calculated in accordance with guidance issued by the AIC, as updated in 2020 to include the look-through costs of holding certain investment funds as well as the total of investment management fees and administrative expenses and expressed as a percentage of the average net asset values with debt at fair value throughout the year.

		2020	2019
Investment management fees (£'000)		3,120	3,431
Administrative expenses (£'000)		792	951
		_______	_______
Ongoing charges (£'000)		3,912	4,382
		_______	_______
Average net assets (£'000)		378,122	406,372
		_______	_______
Ongoing charges ratio (excluding look-through costs)		1.03%	1.08%
		_______	_______
Look-through costs{A}		0.07%	0.15%
Ongoing charges ratio (including look-through costs)		1.10%	1.23%
{A} Costs associated with holdings in collective investment schemes as defined by the Committee of European Securities Regulators' guidelines on the methodology for the calculation of the ongoing charges figure, issued on 1 July 2010.

The ongoing charges percentage provided in the Company's Key Information Document is calculated in line with the PRIIPs regulations which among other things, includes the cost of borrowings and transaction costs.

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