Annual Financial Report

RNS Number : 6281H

Aberdeen New Dawn Invest Trust PLC

24 June 2013

 



ABERDEEN NEW DAWN INVESTMENT TRUST PLC

ANNUAL FINANCIAL REPORT

for the year ended 30 April 2013

1.  CHAIRMAN'S STATEMENT

Background

I am pleased to report that your Company has delivered a good result in both absolute terms and relative to the benchmark, the MSCI All Countries Asia Pacific (ex Japan) Index.  For the year ended 30 April 2013, net asset value (NAV) rose by 18.8% in sterling terms on a total return basis, outperforming the 18.3% gain posted by the benchmark.  Over the last five years, your Company's NAV total return was 75.2% versus the benchmark return of 46.9%. This performance reflects your Manager's ability to add value across Asian markets through investing in companies with strong financials and commitment to shareholder value and good governance. This achievement is noteworthy against the backdrop of slowing growth across the region.

Your Company's share price gained 26.1% to 995p, reflecting the excellent performance and a narrowing of the discount to NAV to 5.5% from 10.7% at the start of the period.

Revenue and Dividend

Revenue returns from the portfolio remained strong. As a result of this, and in compliance with investment trust rules which require the Company to distribute at least 85% of its income from securities, we are proposing to pay a final dividend of 12.0p, which combined with the interim dividend of 5p will make a total dividend of 17.0p, an increase of 3% on last year's level. If approved by shareholders at the Annual General Meeting ("AGM"), the final dividend will be paid on 23 August 2013 to Ordinary shareholders on the register on 2 August 2013. Shareholders should be aware that, as in previous years, the level of future dividends will depend on future receipts from the portfolio.

Overview

The performance of Asian stock markets was marked by contrasting halves during the year under review. In the first six months, sentiment was dented by Europe's ongoing political and economic woes, and uncertainty prior to the US election. Meanwhile in Asia, growth in China and India moderated sharply. Even though macroeconomic fundamentals remained largely unchanged, global stock markets rose strongly in the latter half of the year, following significant amounts of liquidity injections from Western central banks. Towards the end of the period, Japan's decision to implement quantitative easing caused the yen to weaken, which led investors to seek higher yields elsewhere.

China, meanwhile, is in transition on several fronts - political, economic and structural. The new leadership is seeking to establish itself while attempting to ensure long-term sustainable growth - that which is more consumption-led and entails a fairer distribution of wealth. Led by President Xi Jinping, the government has indicated that it will shift its focus to the quality of growth and will tolerate a slower pace of economic expansion in the years ahead.

China's deceleration, in turn, has had a knock-on impact on the rest of the region, particularly the export-oriented nations which had grown increasingly reliant on demand from the mainland. These trade-dependent economies also bore the brunt of the decline in Western demand, which hampered industrial output. Conversely, the more consumption-based economies, particularly those in Southeast Asia, continued to do well. This was largely thanks to government pump-priming, which supported consumption and infrastructure development to compensate for falling export demand. India was an exception. Although its economy is geared towards domestic consumption, it suffered from internal political challenges, which hurt investor sentiment.

The weakening of the yen had a significant impact on the region as well, as it posed a new threat to the competitiveness of Asian exporters. It was also a key factor behind regional central banks' most recent round of interest rate cuts, aside from concerns about decelerating economic activity. Elsewhere, China and India surprised investors with a series of market-friendly reforms to revitalise their economies. China is aiming to cut red tape and unveil a market-oriented interest rate policy, while India has sought to liberalise the retail, insurance and airline sectors by opening them up to greater foreign investment. While these policies bode positively for investors, their successful implementation remains to be seen.

Annual General Meeting

As special business at the AGM we are proposing to renew the authority to allot up to 10% of the Company's issued share capital without pre-emption rights applying, and the authority to buy in shares, and either hold them in treasury for future resale (at a premium to net asset value) or cancel them. We have not bought back any shares or issued any new shares during the year under review, however, your Board believes that it is appropriate to retain maximum flexibility in this regard. Accordingly the Board encourages shareholders to vote in favour of these resolutions.

The tax laws relating to investment trusts were amended last year to modernise the investment trust regime. In particular, new conditions for a company being approved as an investment trust came into effect for accounting periods beginning on or after 1 January 2012. As a result of such changes, there is no longer a requirement for a company's articles of association to prohibit the distribution as a dividend of surpluses arising from the realisation of investments. In addition, the definition of "investment company" under the Companies Act 2006 has been amended with effect from 6 April 2012 to remove the requirement that the distribution of a company's capital profits be prohibited by its articles of association. 

As a result of these changes, the Board is now seeking shareholder approval at the AGM to amend the Company's Articles of Association, to bring them into line with the new investment trust regime by removing the relevant provisions prohibiting the distribution of capital profits by the Company, which will have the effect of permitting the Company to distribute capital profits by way of dividend.

Your Board is also proposing to sub-divide the existing Ordinary Shares (currently with a nominal value of 25p each) into new Ordinary Shares of 5p each and an ordinary resolution to this effect will be proposed at the AGM.  We have a large number of private investors who invest through regular savings plans and this split, which will result in a lower price per share, will enable small sums to be invested regularly and enhance the appeal of the Company's shares to small investors generally. 

The AGM of the Company will be held on Wednesday 21 August 2013 at 12.00 noon in London, and your Board looks forward to meeting as many shareholders as possible at both the AGM and the subsequent lunch.

Board

I took over as Chairman from Alan Henderson on conclusion of the AGM last year and he retired from the Board on 31 December 2012 after serving 21 years. Richard Hills, who has served on this Board for 14 years, is retiring from the Board and is therefore not offering himself for re-appointment at the AGM.  I would like to take this opportunity to thank both Alan and Richard for their considerable and wide-ranging contributions over the years and wish them well for the future.

Outlook 

Persistent signs of financial and macroeconomic uncertainty present a risk to financial markets. At the time of writing, stock markets were hit by speculation over a possible end of the US Federal Reserve's quantitative easing. That could portend negatively for the US economy, as its health has remained fragile. Compounding investor worries are still high public debt levels across much of the Eurozone, while severe austerity is hindering chances of a recovery. The flood of liquidity could create a bifurcated result of higher asset prices and poor quality growth. In view of that, your Manager remains cautious over consensus earnings forecasts, which appear overly optimistic, and expects muted growth for the year ahead.

However, the fundamental and diverse strengths of Asia's economy provide the basis for continued long-term investment performance, notwithstanding any short-term market movements. At present, we are seeing growing intra-regional trade and investment in Asia. The key message is that this is happening without the traditional leadership of the US and Europe. In this regard, Asia continues to evolve into an economic force to be reckoned with.

David Shearer

Chairman

21 June 2013

2.  MANAGER'S REVIEW

Asian equities did well in the year to end April, as an influx of liquidity from developed market central banks supported asset prices globally. In the beginning of the period, speculation over Greece's potential exit from the Eurozone and concerns about China's slowing growth weighed on markets. However, losses were later reversed by aggressive central bank action. This included the European Central Bank's pledge to save the euro at all costs with a bond-buying plan, and the US Federal Reserve's third round of quantitative easing, coupled with a promise that interest rates would stay at record lows until unemployment fell below 6.5%. Later, Japan also embarked on an asset purchase programme in an attempt to bolster its economy. Regional stock markets continued their upward trend after the new year, although volatility persisted. Benchmarks were dragged to a seven-month low in March as the banking crisis in Cyprus brought investor attention back to Europe. 

However, the regional benchmark's rise glossed over the differing fortunes of individual markets. On one hand, the markets that did very well, posting between 20% and 50% gains, included the Philippines, Thailand, Australia and Singapore. The Philippine stock market led the region, as confidence grew on the back of the country's healthy economic fundamentals and improving fiscal management, which led Fitch to promote its debt to investment grade. Thailand, another star performer, also earned a rating upgrade due to the recent political stability under the Yingluck administration. Australia and Singapore did well as investors, faced with record-low interest rates, sought out companies with good yields.

On the other hand, markets that lagged the benchmark included Korea and China, which posted single-digit gains. Both markets were hampered by weak demand for their exports. In addition, Korea was affected by geopolitical tensions and a loss of export competitiveness because of the depreciating yen, while the mainland was weighed down by increased policy tightening owing to property and credit bubbles. Another notable underperformer was India. Its GDP growth for the fiscal year to end March was predicted to reach its lowest in a decade, as soft external demand contributed to widening current account and fiscal deficits. However, sentiment was boosted by P Chidambaram's reappointment as finance minister. The veteran politician pledged to limit government expenditure and reduce the budget deficit, and began pushing through policies such as a reduction in diesel subsidies.

Portfolio Review

Over the 12 months to 30 April 2013, the portfolio outperformed the benchmark MSCI AC Asia Pacific ex Japan index.

At the stock level, the Company's sole Philippine holding, Ayala Land, was a key contributor to performance. The property developer rose in tandem with the strong local market, as the demand for housing continued to be robust. The company posted record annual results with solid earnings across all its business units. Management is upbeat on the business's growth prospects, and is launching more projects this year to capitalise on the domestic property boom.

Our holdings in Singapore also did well. As previously mentioned, investors' hunt for yield resulted in a penchant for defensive stocks with healthy dividend payouts, which benefited holdings such as ST Engineering and Singapore Telecommunications. Defence and aerospace group ST Engineering delivered double-digit profit growth and enjoyed a good flow of new orders. Our bank holdings, UOB and OCBC, gained from decent results as non-interest income growth mitigated the pressure on margins from the low interest rate environment.

In Hong Kong, HSBC was lifted by reduced costs brought about by its restructuring plan, and Jardine Strategic was buoyed by contributions from its holdings Dairy Farm and Astra International.  Conversely, ASM Pacific and Li & Fung underperformed. As the global semiconductor equipment market continued to be tough, ASM Pacific posted weak results due to a fall in assembly and packaging revenue. However, the company's balance sheet remains robust. Li & Fung was hit by rising costs in China, where it sourced its goods; and lower spending power in the US and Europe, where it sold its products.

Our Australian holdings also detracted from performance. Miner Rio Tinto was weighed down by the decline in commodity prices and impairment charges arising from earlier acquisitions. That said, we continue to like the company for its ownership of world-class mines and its focus on cost control. Its healthy balance sheet should allow it to weather any cyclical challenges. In addition, not holding any Australian banks hurt relative returns, as the lenders consistently delivered good results and paid attractive dividends. We continue to favour our existing financial holdings, such as OCBC, that provide us with better regional growth prospects. In other news, QBE Insurance was buffeted by higher catastrophe claims resulting from a series of natural disasters over the year, notably Hurricane Sandy in the US. The insurer's share price has since rebounded, and the new management team plans to improve cost savings and focus on organic growth.

Portfolio activity was relatively light. Following a rebound in its share price, we sold Hong Kong's Sun Hung Kai Properties amid concerns over investigations involving its top executives. We also divested small positions in Korean banks BS Financial and DGB Financial, as well as Hong Kong lender Dah Sing Financial. Against this, we added to Standard Chartered following the slump in its share price when news of a US regulatory probe first broke. The lender's share price rebounded after it entered an out-of-court settlement with New York authorities.

Outlook

We maintain a cautious outlook on Asian equities, as markets continue to be vulnerable to shifts in investor sentiment. While regional stock markets have been supported by the surfeit of liquidity from major central banks, the easy money will not last forever. Markets were recently jolted by US Federal Reserve chairman Ben Bernanke's suggestion that the central bank might begin to taper its asset purchase programme. While the actual termination is likely some time away, any move to wind down quantitative easing could lead to a significant stock market correction. Having said that, Japan's recent expansionary policy moves could release a new wave of liquidity that could buoy financial markets for some time to come.

Meanwhile, economic conditions are expected to remain subdued. The Eurozone recession drags on; growth in the US is still fragile. China's manufacturing sector may continue to underwhelm, given its rising wages and the still-weak external demand. In India, shifting alliances within the ruling coalition and the upcoming elections are likely to hamper Chidambaram's reform drive.

The months ahead look set to be challenging, but we remain committed to our investment strategy. Volatility, along with favourable valuations, should provide us with opportunities to take profits from strong performers and add to quality companies whose share prices have lagged. On the corporate front, earnings growth is slowing, but is still supported by positive long-term fundamentals. We are confident that our holdings' sound finances and capable management teams will stand them in good stead against any upcoming headwinds.

Aberdeen Asset Management Asia Limited

21 June 2013

3.  BUSINESS REVIEW

A review of the Company's activities is given in the Chairman's Statement and the Manager's Review.

Investment Objective 

The investment objective of the Company is to provide shareholders with a high level of capital growth through equity investment in the Asia Pacific countries ex Japan.

Benchmark

The Company compares its performance to the currency-adjusted MSCI AC Asia Pacific ex Japan Index.

Investment Policy

The Company's assets are invested in a diversified portfolio of securities in quoted companies spread across a range of industries and economies in the Asia Pacific region excluding Japan. Investments may also be made through collective investment schemes and in companies traded on stock markets outside the Asia Pacific investment region provided that over 75% of their consolidated revenue is earned from trading in the investment region or they hold more than 75% of their consolidated net assets in the Asia Pacific investment region.

The Board is responsible for determining the gearing strategy for the Company. Gearing is used selectively to leverage the Company's portfolio in order to enhance returns where and to the extent this is considered appropriate to do so. At the year end there was potential gearing of 8% which compares with a current maximum limit set by the Board of 25%. Borrowings are short term and particular care is taken to ensure that any bank covenants permit maximum flexibility of investment policy.

In addition, it is the investment policy of the Company to invest no more than 15% of its gross assets in other listed investment companies (including listed investment trusts). As at 30 April 2013 2.7% of the Company's portfolio was invested in investment companies.

Capital Structure

At 30 April 2013 the Company had a capital structure comprising 24,909,402 Ordinary shares of 25p (with a further 477,731 shares being held in treasury at that date).

The Company also had total bank borrowings, at 30 April 2013, equivalent to approximately £20,835,000 which rank for repayment ahead of any capital return to shareholders. These were drawn as follows: HKD154,100,000 (equivalent to approximately £12,758,000), USD8,680,000 (equivalent to approximately £5,577,000) and £2,500,000.

Total Assets and Net Asset Value

The Company had total assets of £283.1 million and a net asset value of 1,052.9 pence per Ordinary share at 30 April 2013. 

Duration

The Company does not have a fixed life. However, under the Articles of Association, if in the 90 days preceding the Company's financial year end (30 April) the Ordinary shares have been trading, on average, at a discount in excess of 15% to the underlying net asset value over the same period, notice will be given of an ordinary resolution to be proposed at the following Annual General Meeting ("AGM") to approve the continuation of the Company.  If the resolution for the continuation of the Company is not passed at that AGM or any adjournment thereof, the Directors shall convene a general meeting to be held not more than three months after the AGM at which a special resolution for the winding-up of the Company shall be proposed.  In the 90 days to 30 April 2013 the average discount to underlying net asset value of the Ordinary shares was 5.3%, therefore no ordinary resolution will be put to the Company's shareholders.

Risk

Aside from the risks associated with investment in Asia, the key risks related to investment strategy, including inappropriate asset allocation or gearing, are managed through a defined investment policy, specific guidelines and restrictions and by the process of oversight at each Board meeting. Operational disruption, accounting and legal risks are also covered at least annually and regulatory compliance is reviewed at each Board meeting.

The major risks associated with the Company are:

· Resource risk: like most other investment trusts, the Company has no employees. The Company therefore relies on services provided by third parties, including, in particular, the Manager, to which responsibility for the management of the Company's portfolio has been delegated under an investment management agreement (the "Agreement"). The terms of the Agreement cover the necessary duties and conditions expected of the Manager. The Board reviews the performance of the Manager on a regular basis, and their compliance with the Agreement formally on an annual basis.

· Investment and market risk: the Board continually monitors the investment policy of the Company, taking account of stockmarket factors, and reviews the Company's performance compared to its benchmark index. Further details on other risks relating to the Company's investment activities, including market price, interest rate, liquidity and foreign currency risks, are disclosed in Note 18 to the Financial Statements.

· Gearing risk: the Company currently uses gearing in the form of bank borrowings equivalent to approximately £20,835,000, under its loan facility of £30,000,000. As at 30 April 2013, these were drawn as follows: HKD154,100,000 (equivalent to approximately £12,758,000), USD8,680,000 (equivalent to approximately £5,577,000) and £2,500,000.

· Regulatory risk: the Company operates in a complex regulatory environment and faces a number of regulatory risks. Serious breaches of applicable regulations could lead to a number of detrimental outcomes and reputational damage. The Audit and Risk Committee monitors compliance with regulations by reviewing internal control reports from the Manager.

The particular risks of investment in Asia include:

· greater risk of social, political and economic instability; the small size of the markets for securities of emerging markets issuers and associated low volumes of trading give rise to price volatility and a lack of liquidity;

· certain national policies which may restrict the investment opportunities available in respect of a fund, including restrictions on investing in issuers or industries deemed sensitive to national interests; changes in taxation laws and/or rates which may affect the value of the Company's investments;

· the absence in some markets of developed legal structures governing private or foreign investment and private property leading to supervision and regulation; and changes in government which may have an adverse effect on economic reform. Companies in the Asia-Pacific region are not, in all cases, subject to the equivalent accounting, auditing and financial standards of those in the United Kingdom; and

· currency fluctuations which may affect the value of the Company's investments and the income derived therefrom.

Internal Control

The Board is ultimately responsible for the Company's system of internal control and for reviewing its effectiveness. Following publication of the Financial Reporting Council's "Internal Control: Revised Guidance for Directors on the Combined Code" (the FRC Guidance), the Board confirms that there is an ongoing process for identifying, evaluating and managing the significant risks faced by the Company. This process has been in place for the year under review and up to the date of approval of this Annual Report and Accounts, and is regularly reviewed by the Board and accords with the FRC Guidance. The Board has reviewed the effectiveness of the system of internal control. In particular, it has reviewed and updated the process for identifying and evaluating the significant risks affecting the Company and policies by which these risks are managed.

4.  STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report and Accounts in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice).

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 the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

       select suitable accounting policies and then apply them consistently;

       make judgments and estimates that are reasonable and prudent;

       state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

The Directors are responsible for keeping 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 the financial statements comply with the Companies Act 2006. They 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.

Under applicable law and regulations, the Directors are also responsible for preparing a Directors' Report, Directors' Remuneration Report and Corporate Governance Statement that complies with that law and those regulations.

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

The Directors confirm that to the best of their knowledge:

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

       the Directors' Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that the Company faces.

For Aberdeen New Dawn Investment Trust PLC

David Shearer

Chairman

21 June 2013

5.  RESULTS

Highlights 

	30 April 2013	30 April 2012	% change
Total assets	£283,098,000	£243,572,000	+16.2
Total equity shareholders' funds (net assets)	£262,263,000	£225,908,000	+16.1
Share price (mid market)	995.00p	809.50p	+22.9
Net asset value per share	1052.87p	906.92p	+16.1
Discount to net asset value	5.5%	10.7%
MSCI AC Asia Pacific ex Japan Index (currency adjusted, capital gains basis)	582.09	508.30	+14.5
Net gearing*	7.47%	7.22%
Dividend and earnings
Revenue return per share **	19.45p	19.86p	-2.1
Dividends per share ***	17.00p	16.50p	+3.0
Dividend cover	1.14	1.20
Revenue reserves ****	£10,917,000	£11,427,000
Operating costs
Ongoing charges ratio *****	1.06%	1.04%
*         Calculated in accordance with AIC guidance "Gearing Disclosures post RDR".
**       Measures the total earnings for the year divided by the weighted average number of Ordinary shares in issue (see Income Statement).
***      The figures for dividends still reflect the years in which they were earned (see note 7) and assume approval of the final dividend.
****    Prior to payment of proposed final dividend.
*****   Ongoing charges ratio (replacement for previous disclosure of total expense ratio) has been calculated in accordance with recent guidance issued by the AIC as the total of the investment management fee and administrative expenses divided by the average cum income net asset value throughout the year. The total expense ratio figure for 2012 have been restated accordingly.

	Performance (total return)
		1 year return	3 year return	5 year return
		%	%	%
Share price		+26.1	+45.1	+89.0
Net asset value		+18.8	+36.4	+75.2
MSCI AC Asia Pacific ex Japan Index (currency adjusted)		+18.3	+22.2	+46.9

	Rate	xd date	Record date	Payment date
Proposed final 2013	12.00p	31 July 2013	2 August 2013	23 August 2013
Interim 2013	5.00p	2 January 2013	4 January 2013	25 January 2013
Total 2013	17.00p
Final 2012	16.50p	1 August 2012	3 August 2012	24 August 2012

Financial Record
Year to 30 April	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013
Total revenue (£'000)	2,404	3,188	3,345	4,027	4,301	4,734	4,372	5,752	6,799	6,562
Per share (p)
Net revenue return	4.83	6.84	6.58	7.63	8.14	10.48	11.87	15.86	19.86	19.45
Total return	103.41	30.35	175.78	50.04	101.51	(153.19)	331.69	132.19	(13.58)	167.45
Net dividends paid/proposed *	3.80	5.00	5.00	5.55	6.00	8.00	10.00	12.50	16.50	17.00
Net asset value per share	301.27	330.42	503.83	548.87	646.31	487.12	810.81	933.01	906.92	1,052.87
Equity shareholders' funds (£'000)	70,097	77,341	127,907	139,342	160,993	121,339	201,969	232,406	225,908	262,263
*The figures for dividends have not been restated and still reflect the dividend for the years in which it was earned. The 2005 figure includes a 1.0p Special.

6.  INVESTMENT PORTFOLIO

As at 30 April 2013
			Valuation	Total	Valuation
			2013	Assets	2012
Company	Industry	Country	£'000	%	£'000
Aberdeen Global - Indian Equity Fund			30,356	10.7	25,716
A tax-efficient pooled India fund with a long-term investment approach managed by the same team managing the Company. There is no double-charging of management fees.	Collective Investment Scheme	India
Samsung Electronics Pref			13,786	4.9	11,930
Asia's leading electronics firm that makes consumer electronics, semiconductors, telecom equipment and TFT LCD screens.	Semiconductors & Semiconductor Equipment	South Korea
Jardine Strategic Holdings			12,857	4.5	10,155
A Singapore-listed conglomerate with interests across the region spanning property, hotels and consumer products.	Industrial Conglomerates	Hong Kong
Oversea-Chinese Banking Corporation			12,749	4.5	10,063
A well-run Singaporean bancassurance company seeking to generate additional value for shareholders by restructuring assets and via regional expansion.	Commercial Banks	Singapore
Taiwan Semiconductor Manufacturing Company			11,462	4.0	9,450
The world's largest dedicated semiconductor foundry, it provides wafer manufacturing, wafer probing, assembly and testing, mask production and design services.	Semiconductors & Semiconductor Equipment	Taiwan
QBE Insurance Group			10,186	3.6	9,533
A leading Australian general insurance and reinsurance firm that is geographically diversified, and has a track record of generating good shareholder returns.	Insurance	Australia
Ayala Land			10,037	3.5	6,228
Leading property developer in the Philippines with an attractive land bank, well-respected brand and expertise across residential, commercial & retail sectors.	Real Estate Management & Development	Philippines
HSBC Holdings			9,249	3.3	5,988
HSBC group is one of the world's largest banking and financial services institutions. Its international network comprises more than 5,000 offices in 80 countries and territories, operating in the Asia Pacific region, Europe, the Americas, the Middle East and Africa. The diversity of HSBC's business and exposure to faster growing regions of the world should enable it to deliver superior long-term growth.	Commercial Banks	Hong Kong
Singapore Technologies Engineering			9,181	3.2	5,992
Defence contractor with capabilities in aerospace, electronics, defence and marine.	Aerospace & Defence	Singapore
United Overseas Bank			8,514	3.0	7,338
Singapore's second largest bank, primarily focused on SMEs and consumers, with its core market in Singapore and the balance predominantly in southeast Asia.	Commercial Banks	Singapore
Top ten investments			128,377	45.2

Investment Portfolio

As at 30 April 2013

			Valuation	Total	Valuation
			2013	Assets	2012
Company	Industry	Country	£'000	%	£'000
BHP Billiton (London listing)	Metals & Mining	Australia	8,185	2.9	5,884
Standard Chartered (London listing)	Commercial Banks	UK	8,103	2.9	7,547
Swire Pacific *	Real Estate Management & Development	Hong Kong	7,952	2.8	7,171
Rio Tinto (London listing)	Metals & Mining	Australia	7,863	2.8	8,113
China Mobile	Wireless Telecommunication Services	China	7,306	2.6	4,742
PetroChina	Oil, Gas & Consumable Fuels	China	7,265	2.6	6,768
Singapore Telecommunication	Diversified Telecommunication Services	Singapore	7,260	2.6	5,495
Siam Cement (Foreign)	Construction Materials	Thailand	7,092	2.5	6,085
AIA Group	Insurance	Hong Kong	6,615	2.3	4,607
City Developments	Real Estate Management & Development	Singapore	6,520	2.3	5,602
Top twenty investments			202,538	71.5
PTT Exploration & Production (Foreign)	Oil, Gas & Consumable Fuels	Thailand	5,558	2.0	5,739
Woolworths	Food & Staples Retailing	Australia	5,494	1.9	3,772
Taiwan Mobile	Wireless Telecommunication Services	Taiwan	5,249	1.9	4,449
Aberdeen Asian Smaller Companies Inv. Trust **	Investment/Unit Trusts	Other Asia	4,504	1.6	6,633
Dairy Farm International	Food & Staples Retailing	Hong Kong	4,360	1.5	3,594
Keppel Corporation	Industrial Conglomerates	Singapore	4,119	1.5	2,429
ASM Pacific Technology	Semiconductors & Semiconductor Equipment	Hong Kong	3,691	1.3	4,413
CIMB Group Holdings	Commercial Banks	Malaysia	3,652	1.3	3,369
Swire Properties	Real Estate Management & Development	Hong Kong	3,548	1.2	2,643
Hang Lung Group	Real Estate Management & Development	Hong Kong	3,329	1.2	3,398
Top thirty investments			246,042	86.9
New India Inv. Trust	Investment/Unit Trusts	India	3,121	1.1	2,092
Venture Corp	Electronic Equipment, Instruments & Components	Singapore	3,035	1.1	2,996
Public Bank Berhad (alien market)	Commercial Banks	Malaysia	2,987	1.1	2,401
John Keells Holdings	Industrial Conglomerates	Sri Lanka	2,943	1.0	2,228
M.P. Evans Group	Food Products	Indonesia	2,831	1.0	2,789
Aitken Spence & Co.	Industrial Conglomerates	Sri Lanka	2,785	1.0	2,337
Wing Hang Bank	Commercial Banks	Hong Kong	2,771	1.0	2,701
Li & Fung	Distributors	Hong Kong	2,640	0.9	2,277
Unilever Indonesia	Household Products	Indonesia	2,540	0.9	2,803
Singapore Airlines	Airlines	Singapore	2,432	0.9	2,236
Top forty investments			274,127	96.9
Hang Lung Properties	Real Estate Management & Development	Hong Kong	2,113	0.7	1,932
E-Mart	Food & Staples Retailing	South Korea	1,489	0.5	1,741
DFCC Bank	Commercial Banks	Sri Lanka	1,291	0.5	1,035
National Development Bank	Commercial Banks	Sri Lanka	765	0.3	530
Keppel REIT	Real Estate Investment Trusts	Singapore	116	-	-
DBS Group Holdings	Commercial Banks	Singapore	61	-	-
Shopping Centres Australasia	Real Estate Investment Trusts	Australia	49	-	-
Total investments			280,011	98.9
Net current assets ***			3,087	1.1
Total assets			283,098	100.0
*         Holding merges two equity holdings, with values split as follows: A shares £521,000 (2012 - £465,000) and B shares £7,431,000 (2012 - £6,706,000).
**        Holding comprises equity and convertible unsecured loan stock split £3,925,000 (2012 £6,633,000) and £579,000 (2012 £nil).
***       Excluding bank loans of £20,835,000.
Note: Unless otherwise stated, foreign stock is held and all investments are equity holdings.

7.  INCOME STATEMENT

		Year ended 30 April 2013			Year ended 30 April 2012
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Gains/(losses) on investments held at fair value through profit or loss	9	-	38,566	38,566	-	(7,168)	(7,168)
Income	2	6,562	-	6,562	6,799	-	6,799
Investment management fee	3	(903)	(903)	(1,806)	(800)	(800)	(1,600)
Administrative expenses	4	(715)	-	(715)	(688)	-	(688)
Exchange losses		-	(607)	(607)	-	(230)	(230)
		_______	_______	______	_______	______	_______
Net return on ordinary activities before finance costs and taxation		4,944	37,056	42,000	5,311	(8,198)	(2,887)
Interest payable and similar charges	5	(191)	(191)	(382)	(132)	(132)	(264)
		_______	_______	______	_______	______	_______
Return on ordinary activities before taxation		4,753	36,865	41,618	5,179	(8,330)	(3,151)
Taxation	6	93	-	93	(233)	-	(233)
		_______	_______	______	_______	______	_______
Return on ordinary activities after taxation		4,846	36,865	41,711	4,946	(8,330)	(3,384)
		_______	_______	______	_______	______	_______
Return per Ordinary share (pence)	8	19.45	148.00	167.45	19.86	(33.44)	(13.58)
		_______	_______	______	_______	______	_______
The total column of this statement represents the profit and loss account of the Company.
A Statement of Total Recognised Gains and Losses has not been prepared as all gains and losses are recognised in the Income Statement.
All revenue and capital items are derived from continuing operations.
The accompanying notes are an integral part of the financial statements.

8.  BALANCE SHEET

		As at	As at
		30 April 2013	30 April 2012
	Notes	£'000	£'000
Non-current assets
Investments at fair value through profit or loss	9	280,011	241,401
		_________	_________
Current assets
Loans and receivables	10	2,238	1,244
Cash at bank and in hand	16	1,245	1,356
		_________	_________
		3,483	2,600
		_________	_________
Creditors: amounts falling due within one year	11
Loans		(20,835)	(17,664)
Other creditors		(396)	(429)
		_________	_________
		(21,231)	(18,093)
		_________	_________
Net current liabilities		(17,748)	(15,493)
		_________	_________
Net assets		262,263	225,908
		_________	_________
Share capital and reserves
Called-up share capital	12	6,347	6,347
Share premium account		17,955	17,955
Special reserve		11,617	11,617
Capital redemption reserve		10,207	10,207
Capital reserve	13	205,220	168,355
Revenue reserve		10,917	11,427
		_________	_________
Equity shareholders' funds		262,263	225,908
		_________	_________
Net asset value per Ordinary share (pence)	14	1,052.87p	906.92
		_________	_________

9.  RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

For the year ended 30 April 2013
		Share			Capital
	Share	premium		Special	redemption	Capital	Revenue
	capital	account		reserve	reserve	reserve	reserve	Total
	£'000	£'000		£'000	£'000	£'000	£'000	£'000
Balance at 30 April 2012	6,347	17,955		11,617	10,207	168,355	11,427	225,908
Return on ordinary activities after taxation	-	-		-	-	36,865	4,846	41,711
Dividends paid (see note 7)	-	-		-	-	-	(5,356)	(5,356)
	______	______		______	______	______	______	______
Balance at 30 April 2013	6,347	17,955		11,617	10,207	205,220	10,917	262,263
	______	______		______	______	______	______	______
For the year ended 30 April 2012
		Share			Capital
	Share	premium	Special		redemption	Capital	Revenue
	capital	account	reserve		reserve	reserve	reserve	Total
	£'000	£'000	£'000		£'000	£'000	£'000	£'000
Balance at 30 April 2011	6,347	17,955	11,617		10,207	176,685	9,595	232,406
Return on ordinary activities after taxation	-	-	-		-	(8,330)	4,946	(3,384)
Dividend paid (see note 7)	-	-	-		-	-	(3,114)	(3,114)
	______	______	______		______	______	______	______
Balance at 30 April 2012	6,347	17,955	11,617		10,207	168,355	11,427	225,908
	______	______	______		______	______	______	______
The revenue reserve represents the amount of the Company's reserves distributable by way of dividend.
The accompanying notes are an integral part of the financial statements.

10.  CASH FLOW STATEMENT

		Year ended		Year ended
		30 April 2013		30 April 2012
	Notes	£'000	£'000	£'000	£'000
Net cash inflow from operating activities	15		3,582		3,211
Servicing of finance
Bank and loan interest paid			(387)		(264)
Taxation
Net tax paid			(188)		(233)
Financial investment
Purchases of investments		(16,037)		(15,310)
Sales of investments		15,711		8,068
		_______		_______
Net cash outflow from financial investment			(326)		(7,242)
Equity dividends paid			(5,356)		(3,114)
			_______		_______
Net cash outflow before financing			(2,675)		(7,642)
Financing
Loans drawdown			3,061		6,766
			_______		_______
Net cash inflow from financing			3,061		6,766
			_______		_______
Increase/(decrease) in cash	16		386		(876)
			_______		_______
Reconciliation of net cash flow to movements in net debt
Increase/(decrease) in cash as above			386		(876)
Drawdown of loan			(3,061)		(6,766)
Exchange movements			(607)		(230)
			_______		_______
Movement in net debt in the year			(3,282)		(7,872)
Opening net debt			(16,308)		(8,436)
			_______		_______
Closing net debt	16		(19,590)		(16,308)
			_______		_______

11.  NOTES TO THE FINANCIAL STATEMENTS:

For the year ended 30 April 2013
1.	Accounting policies
	(a)	Basis of accounting
		The financial statements have been prepared under the historical cost convention, as modified to include the revaluation of investments and in accordance with the applicable UK Accounting Standards and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts'. They have also been prepared on the assumption that approval as an investment trust will continue to be granted.
		The Directors have, at the time of approving the financial statements, a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements. Further detail is included in the Directors' Report (unaudited).
		The financial statements, and the net asset value per share figures, have been prepared in accordance with UK Generally Accepted Accounting Practice ('UK GAAP').
	(b)	Valuation of investments
		Listed investments have been designated upon initial recognition as fair value through profit or loss. Investments are recognised and de-recognised on the trade date at cost. Subsequent to initial recognition, investments are valued at fair value which for listed investments is deemed to be bid market prices. Gains and losses arising from changes in fair value are included as a capital item in the Income Statement and are ultimately recognised in the capital reserve.
	(c)	Income
		Dividends (other than special dividends), including taxes deducted at source, are included in revenue by reference to the date on which the investment is quoted ex-dividend. Special dividends are reviewed on a case-by-case basis and may be credited to capital, if circumstances dictate. Dividends receivable on equity shares where no ex-dividend date is quoted are brought into account when the Company's right to receive payment is established. Fixed returns on non-equity shares are recognised on a time apportioned basis so as to reflect the effective yield on shares. Other returns on non-equity shares are recognised when the right to return is established. Where the Company has elected to receive its dividends in the form of additional shares rather than cash, the amount of the cash dividend is recognised as income. Any excess in the value of the shares received over the amount of the cash dividend is recognised in capital reserves. Interest receivable on bank balances is dealt with on an accruals basis.
	(d)	Expenses
		All expenses are accounted for on an accruals basis. Expenses are charged through the revenue column of the Income Statement except as follows:
		expenses directly relating to the acquisition or disposal of an investment, in which case, they are added to the cost of the investment or deducted from the sale proceeds. Such transaction costs are disclosed in accordance with the SORP. These expenses are charged to the capital column of the Income Statement and are separately identified and disclosed in note 9; and
		the Company charges 50% of investment management fees and finance costs to the capital column of the Income Statement, 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.
	(e)	Deferred taxation
		Deferred taxation is provided on all timing differences, that have originated but not reversed at the Balance Sheet date, where transactions or events that result in an obligation to pay more or a right to pay less tax in future have occurred at the Balance Sheet date, measured on an undiscounted basis and based on enacted tax rates. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the underlying timing differences can be deducted. Timing differences are differences arising between the Company's taxable profits and its results as stated in the accounts which are capable of reversal in one or more subsequent periods. Due to the Company's status as an investment trust company, and the intention to continue to meet the conditions required to obtain approval for the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments.
	(f)	Capital reserves
		Gains and losses on realisation of investments and changes in fair values of investments which are readily convertible to cash, without accepting adverse terms, are transferred to the capital reserve.
	(g)	Foreign currencies
		Assets and liabilities in foreign currencies are translated at the rates of exchange ruling on the Balance Sheet date. Transactions involving foreign currencies are converted at the rate ruling on the date of the transaction. Gains and losses on the realisation of foreign currencies are recognised in the Income Statement and are then transferred to the capital reserve.
	(h)	Dividends payable
		Interim and final dividends are dealt with in the period in which they are paid.

		2013	2012
2.	Income	£'000	£'000
	Income from investments
	UK dividend income	1,333	957
	UK unfranked investment income	15	-
	Overseas dividends	5,212	4,930
	Scrip dividends	-	907
		_______	_______
		6,560	6,794
		_______	_______
	Other income
	Deposit interest	2	5
		_______	_______
	Total income	6,562	6,799
		_______	_______

		2013			2012
		Revenue	Capital	Total	Revenue	Capital	Total
3.	Investment management fee	£'000	£'000	£'000	£'000	£'000	£'000
	Investment management fee	903	903	1,806	800	800	1,600
		_______	_______	_______	_______	_______	_______
	The Company has an agreement with Aberdeen Asset Management Asia Limited ('AAM Asia') for the provision of management services.
	During the year the management fee was payable monthly in arrears and was based on an annual amount of 1% of the net asset value of the Company valued monthly, with the following provisions for commonly managed funds:
	The Company's investments in Aberdeen Global - Indian Equity Fund, Aberdeen Asian Smaller Companies Investment Trust and New India Investment Trust are excluded from the calculation of the investment management fee. The total value of such commonly managed funds, on a mid basis (basis on which management fee is calculated), at the year end was £37,988,000 (2012 - £34,441,000).
	The fee calculation excludes an amount representing the amount of fees in excess of 1% of net assets charged by the Manager for these commonly managed funds.
	The balance due to AAM Asia at the year end was £168,000 (2012 - £284,000).
	The agreement is terminable by either party on one year's notice to the other.

		2013	2012
4.	Administrative expenses	£'000	£'000
	Share Plan marketing contribution	164	159
	Directors' fees	157	143
	Safe custody fees	102	84
	Auditor's remuneration:
	-fees payable to the Company's auditor for the audit of the Company's annual accounts	14	14
	-fees payable to the Company's auditor for the review of the Company's half yearly accounts	4	4
	-fees payable to the Company's auditor for outlays	1	1
	Other administration expenses	273	283
		_______	_______
		715	688
		_______	_______
	The Company has an agreement with Aberdeen Asset Managers Limited ('AAM') for the provision of marketing services in relation to the Company's participation in the Aberdeen Investment Trust Share Plan and ISA. The total fees paid and payable under the agreement were £164,000 (2012 - £159,000) and the sum due to AAM at the year end was £54,000 (2012 - £14,000).
	No pension contributions were made in respect of any of the Directors.
	The Company does not have any employees.

		2013			2012
		Revenue	Capital	Total	Revenue	Capital	Total
5.	Interest payable and similar charges	£'000	£'000	£'000	£'000	£'000	£'000
	On bank loans and overdrafts	191	191	382	132	132	264
		______	______	______	______	______	______

			2013			2012
			Revenue	Capital	Total	Revenue	Capital	Total
6.	Taxation		£'000	£'000	£'000	£'000	£'000	£'000
	(a)	Analysis of charge for the year
		Overseas tax	186	-	186	238	-	238
		Overseas tax reclaimable	(279)	-	(279)	(5)	-	(5)
			______	______	______	______	______	______
		Current tax charge for the year	(93)	-	(93)	233	-	233
			______	______	______	______	______	______
	(b)	Factors affecting the tax charge for the year
		The tax assessed for the year is lower than the standard rate of corporation tax in the UK.
			2013			2012
			Revenue	Capital	Total	Revenue	Capital	Total
			£'000	£'000	£'000	£'000	£'000	£'000
		Net profit on ordinary activities before taxation	4,753	36,865	41,618	5,179	(8,330)	(3,151)
			______	______	______	______	______	______
		Corporation tax at effective rate of 23.92% (2012 - 25.83%)	1,137	8,818	9,955	1,338	(2,153)	(815)
		Effects of:
		Non-taxable UK dividend income	(319)	-	(319)	(247)	-	(247)
		Non-taxable scrip dividends	-	-	-	(234)	-	(234)
		Non-taxable overseas dividends	(953)	-	(953)	(1,035)	-	(1,035)
		Accrued income not taxable	(294)	-	(294)	(238)	-	(238)
		Overseas tax suffered	(93)	-	(93)	233	-	233
		Surplus management expenses and loan relationship deficits not relieved	429	262	691	416	242	658
		Non-taxable exchange losses	-	145	145	-	59	59
		Non-taxable (gains)/losses on investments	-	(9,225)	(9,225)	-	1,852	1,852
			______	______	______	______	______	______
		Current tax charge	(93)	-	(93)	233	-	233
			______	______	______	______	______	______
	(c)	Provision for deferred taxation
		No provision for deferred taxation has been made in the current year or in the prior year.
		The Company has not provided for deferred tax on capital gains or losses arising on the revaluation or disposal of investments as it is exempt from tax on these items because of its status as an investment trust company.
	(d)	Factors that may affect future tax charges
		At the year end, the Company has an unrecognised deferred tax asset of £1,958,000 (2012 - £1,346,000) arising as a result of excess management expenses and non-trade loan relationship deficits. These expenses will only be utilised if the Company has profits chargeable to corporation tax in the future.

		2013	2012
7.	Dividends	£'000	£'000
	Amounts recognised as distributions to equity holders in the period:
	Final dividend for 2012 - 16.5p (2011 - 12.5p)	4,110	3,114
	Interim dividend for 2013 - 5.0p (2012 - nil)	1,246	-
		______	______
		5,356	3,114
		______	______
	The proposed final dividend for 2013 is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements.
	The table below sets out the proposed final dividend, together with the interim dividend paid, in respect of the financial year, which is the basis on which the requirements of Section 1158 of the Corporation Tax Act 2010 are considered. The revenue available for distribution by way of dividend for the year is £4,846,000 (2012 - £4,946,000).
		2013	2012
		£'000	£'000
	Interim dividend for 2013 - 5.0p (2012 - nil)	1,246	-
	Proposed final dividend for 2013 - 12.0p (2012 - 16.5p)	2,989	4,110
		______	______
		4,235	4,110
		______	______

		2013		2012
8.	Return per Ordinary share	£'000	p	£'000	p
	Revenue return	4,846	19.45	4,946	19.86
	Capital return	36,865	148.00	(8,330)	(33.44)
		______	______	______	______
	Total return	41,711	167.45	(3,384)	(13.58)
		______	______	______	______
	Weighted average number of Ordinary shares in issue *		24,909,402		24,909,402
	*Calculated excluding shares held in treasury.		_________		_________

		Listed	Listed
		overseas	in UK	Total
9.	Investments	£'000	£'000	£'000
	Fair value through profit or loss:
	Opening book cost	94,746	19,397	114,143
	Opening fair value gains on investments held	113,596	13,662	127,258
		________	________	________
	Opening valuation	208,342	33,059	241,401
	Movements in the year:
	Purchases at cost	9,956	6,104	16,060
	Sales - proceeds	(9,990)	(6,026)	(16,016)
	Sales - realised gains	4,392	4,652	9,044
	Current year fair value gains/(losses) on investments held	32,704	(3,182)	29,522
		________	________	________
	Closing valuation	245,404	34,607	280,011
		________	________	________
	Closing book cost	99,104	24,127	123,231
	Closing fair value gains on investments held	146,300	10,480	156,780
		________	________	________
		245,404	34,607	280,011
		________	________	________
			2013	2012
			£'000	£'000
	Investments listed on an overseas investment exchange		245,404	208,342
	Investments listed on the UK investment exchange		34,607	33,059
			________	________
			280,011	241,401
			________	________
			2013	2012
	Gains/(losses) on investments held at fair value through profit or loss		£'000	£'000
	Realised gains on sales		9,044	5,217
	Increase/(decrease) in fair value gains on investments held		29,522	(12,385)
			________	________
			38,566	(7,168)
			________	________
	Transaction costs
	During the year expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. These have been expensed through capital and are included within gains/(losses) on investments held at fair value through profit or loss in the Income Statement. The total costs were as follows:
			2013	2012
			£'000	£'000
	Purchases		52	48
	Sales		42	14
			______	______
			94	62
			______	______

		2013	2012
10.	Loans and receivables	£'000	£'000
	Amounts due from brokers	305	-
	Prepayments and accrued income	1,642	1,218
	Other loans and receivables	291	26
		______	______
		2,238	1,244
		______	______

			2013	2012
11.	Creditors: amounts falling due within one year		£'000	£'000
	(a)	Loans
		Foreign currency loans	18,335	15,164
		Sterling loans	2,500	2,500
			______	______
			20,835	17,664
			______	______
	At the year end HK$154,100,000 (2012 - HK$154,100,000), equivalent to £12,758,000 (2012 - £12,233,000), US$8,680,000 (2012 - US$4,760,000), equivalent to £5,577,000 (2012 - £2,931,000) and £2,500,000 (2012 - £2,500,000), was drawn down from the £30,000,000 facility with The Royal Bank of Scotland at an interest rate of 1.50%, 1.55% and 1.85% (2012 - 1.65%, 1.59% and 2.05%) respectively, with a maturity date of 15 May 2013 (2012 - 8 May 2012).
	At the date of signing of this report HK$154,100,000, US$8,680,000 and £2,500,000 was drawn down to 17 July 2013 at interest rates of 1.55%, 1.54% and 1.85% respectively.
		The terms of the bank loan with The Royal Bank of Scotland state that:
		-     the consolidated net tangible assets of the Company must be not less than £125 million at all times;
		-     the ratio of gross borrowings to adjusted assets must be less than 25% at all times (adjusted assets are total gross assets less (i) the value in excess of 10% of total gross assets invested in the largest single security or asset; and (ii) the value in excess of 60% of total gross assets invested in the top twenty largest investments; and (iii) the value of all unlisted investments); and -     the facility, under which the loans are made, will expire on 7 October 2014.
		The Company has met this covenant throughout the period and up to the date of this Report.
			2013	2012
	(b)	Other	£'000	£'000
		Amounts due to brokers	61	38
		Other creditors	335	391
			______	______
			396	429
			______	______

		2013	2012
12.	Called-up share capital	£'000	£'000
	Allotted, called up and fully paid:
	24,909,402 (2012 - 24,909,402) Ordinary shares of 25p each	6,227	6,227
	Held in treasury:
	477,731 (2012 - 477,731) Ordinary shares of 25p each	120	120
		______	______
		6,347	6,347
		______	______
	Shares held in treasury represent 1.92% of the Company's total issued share capital at 30 April 2013.
	The investment objective of the Company is to provide shareholders with a high level of capital growth through equity investment in the Asia Pacific countries ex Japan.
	The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance.
	The Board 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 level of equity shares in issue; and
	-     the extent to which revenue in excess of that which is required to be distributed should be retained.
	The Company's objectives, policies and processes for managing capital are unchanged from the preceding accounting period.
	The Company does not have any externally imposed capital requirements.

		2013	2012
13.	Capital reserve	£'000	£'000
	At 1 May 2012	168,355	176,685
	Movement in fair value gains	38,566	(7,168)
	Foreign exchange movement	(607)	(230)
	Expenses taken to capital	(1,094)	(932)
		________	________
	At 30 April 2013	205,220	168,355
		________	________
	The capital reserve includes investment holding gains amounting to £156,780,000 (2012 - £127,258,000), as disclosed in note 9.

14.	Net asset value per share
	The net asset value per 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:
		2013	2012
	Net assets attributable (£'000)	262,263	225,908
	Number of Ordinary shares in issue (excluding shares held in treasury)	24,909,402	24,909,402
	Net asset value per share (p)	1,052.87	906.92

15.	Reconciliation of net return on ordinary activities before finance	2013	2012
	costs and taxation to net cash inflow from operating activities	£'000	£'000
	Net return on ordinary activities before finance costs and taxation	42,000	(2,887)
	Adjustment for:
	(Gains)/losses on investments held at fair value through profit or loss	(38,566)	7,168
	Exchange losses charged to capital	607	230
	Increase in accrued income	(424)	(268)
	Decrease/(increase) in other debtors	16	(18)
	Decrease in other creditors	(51)	(107)
	Scrip dividends included in investment income	-	(907)
		______	______
	Net cash inflow from operating activities	3,582	3,211
		______	______

		1 May	Cash	Exchange	30 April
		2012	flow	movements	2013
16.	Analysis of changes in net debt	£'000	£'000	£'000	£'000
	Cash at bank	1,356	386	(497)	1,245
	Debts falling due within one year	(17,664)	(3,061)	(110)	(20,835)
		______	______	______	______
	Net debt	(16,308)	(2,675)	(607)	(19,590)
		______	______	______	______

17.	Related party disclosures
	Mr H Young is a director of AAM Asia. AAM Asia has an agreement to provide management services and AAM has an agreement to provide marketing services to the Company, the terms of which are outlined in notes 3 and 4 respectively.
	During the course of the year, the Company has held investments in other funds managed by the same Manager. These holdings are disclosed in note 3.

18.	Financial instruments
	Risk management
	The Company's financial instruments comprise securities and other investments, cash balances, 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 Manager has a dedicated investment management process, which ensures that the investment policy is followed. Stock selection procedures are in place based on the active portfolio management and identification of stocks. The portfolio is reviewed on a periodic basis by a Senior Investment Manager and also by the Manager's Investment Committee.
	The Company's Manager has an independent investment risk department for reviewing the investment risk parameters of the Company's portfolio on a regular basis. The department reports to the Manager's performance review committee which is chaired by the Manager's chief investment officer. The department's responsibility is to review and monitor ex-ante (predicted) portfolio risk and style characteristics using best practice, industry standard multi-factor models.
	Additionally, the Manager's Compliance department continually monitors the Company's investment and borrowing powers and reports to the Manager's risk management committee.
	The main financial risks that the Company faces from its financial instruments are market risk (comprising interest rate risk, currency risk and other price risk), liquidity risk and credit risk.
	The Board regularly reviews and agrees policies for managing each of these risks. The Manager's policies for managing these risks are summarised below and have been applied throughout the year. The numerical disclosures exclude short-term debtors and creditors.
	Market risk
	The fair value of, or future cash flows from a financial instrument held by the Company may fluctuate because of changes in market prices. This market risk comprises three elements - interest rate risk, foreign currency risk and other price risk.
	Interest rate risk
	Interest rate movements may affect:
	-     the level of income receivable on cash deposits; and,
	-     interest payable on the Company's variable rate borrowings.
	The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account when making investment and borrowing decisions.
	Interest risk profile
	The interest rate risk profile of the portfolio of the Company's financial assets and liabilities, excluding equity holdings which are all non-interest bearing, at the Balance Sheet date was as follows:
			Weighted average	Weighted
			period for which	average	Fixed	Floating
			rate is fixed	interest rate	rate	rate
	At 30 April 2013		Years	%	£'000	£'000
	Assets
	Sterling		-	0.36	-	1,237
	Taiwan Dollar		-	-	-	8
			______	______	______	______
					-	1,245
			______	______	______	______
	Liabilities
	Bank loan - Sterling		0.08	1.85	2,500	-
	Bank loan - HK Dollar		0.08	1.50	12,758	-
	Bank loan - US Dollar		0.08	1.55	5,577	-
			______	______	______	______
					20,835	-
			______	______	______	______
			Weighted average	Weighted
			period for which	average	Fixed	Floating
			rate is fixed	interest rate	rate	rate
	At 30 April 2012		Years	%	£'000	£'000
	Assets
	Sterling		-	0.43	-	718
	Taiwan Dollar		-	-	-	25
	US Dollar		-	0.01	-	613
			______	______	______	______
					-	1,356
			______	______	______	______
	Liabilities
	Bank loan - Sterling		0.09	2.05	2,500	-
	Bank loan - HK Dollar		0.09	1.65	12,233	-
	Bank loan - US Dollar		0.07	1.59	2,931	-
			______	______	______	______
					17,664	-
			______	______	______	______
	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 maturity date of the Company's loan is shown in note 11.
	The floating rate assets consist of cash deposits on call earning interest at prevailing market rates.
	The Company's equity portfolio and short-term debtors and creditors (excluding bank loans) have been excluded from the above tables.
	Interest rate sensitivity
	Movements in interest rates would not significantly affect net assets attributable to the Company's shareholders and total profit.

	Foreign currency risk
	All of the Company's investment portfolio is invested in overseas securities and the Balance Sheet, therefore, 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 but the Company may, from time to time, match specific overseas investment with foreign currency borrowings. The Company's borrowings, as detailed in note 11, are also in foreign currency.
	The revenue account is subject to currency fluctuation arising on dividends paid in foreign currencies. The Company does not hedge this currency risk.
	Foreign currency exposure by currency of denomination:
		30 April 2013				30 April 2012
			Net	Total				Net	Total
		Overseas	monetary	currency		Overseas		monetary	currency
		investments	assets	exposure		investments		assets	exposure
		£'000	£'000	£'000		£'000		£'000	£'000
	Australian Dollar	15,730	-	15,730		13,305		-	13,305
	Hong Kong Dollar	56,479	(12,758)	43,721		50,574		(12,233)	38,341
	Indonesian Rupiah	2,540	-	2,540		2,803		-	2,803
	Korean Won	15,275	-	15,275		16,192		-	16,192
	Malaysian Ringgit	6,639	-	6,639		5,770		-	5,770
	Philippine Peso	10,037	-	10,037		6,228		-	6,228
	Singapore Dollar	53,987	-	53,987		42,151		-	42,151
	Sri Lankan Rupee	7,784	-	7,784		6,130		-	6,130
	Sterling	64,962	(1,263)	63,699		58,775		(1,782)	56,993
	Taiwanese Dollar	16,711	8	16,719		13,900		25	13,925
	Thailand Baht	12,650	-	12,650		11,824		-	11,824
	US Dollar	17,217	(5,577)	11,640		13,749		(2,318)	11,431
		______	______	______		______		______	______
	Total	280,011	(19,590)	260,421		241,401		(16,308)	225,093
		______	______	______		______		______	______
	Foreign currency sensitivity
	The following table details the Company's sensitivity to a 10% increase and decrease in sterling against the foreign currencies in which the Company has exposure. The sensitivity analysis includes foreign currency denominated monetary items and adjusts their translation at the period end for a 10% change in foreign currency rates.
								2013	2012
								£'000	£'000
	Australian Dollar							1,573	1,331
	Hong Kong Dollar							4,372	3,834
	Indonesian Rupiah							254	280
	Korean Won							1,527	1,619
	Malaysian Ringgit							664	577
	Philippine Peso							1,004	623
	Singapore Dollar							5,399	4,215
	Sri Lankan Rupee							778	613
	Taiwanese Dollar							1,672	1,393
	Thailand Baht							1,265	1,182
	US Dollar							1,164	1,143
								______	______
								19,672	16,810
								______	______
	Other price risk
	Other price risks (ie changes in market prices other than those arising from interest rate or currency risk) may affect the value of the quoted investments.
	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. Both the allocation of assets and the stock selection process act to reduce market risk. The Manager actively monitors market prices throughout the year and reports to the Board, which meets regularly in order to review investment strategy. The investments held by the Company are listed on various stock exchanges worldwide.
	Other price risk sensitivity
	If market prices at the Balance Sheet date had been 10% higher or lower while all other variables remained constant, the return attributable to Ordinary shareholders for the year ended 30 April 2013 would have increased/(decreased) by £28,001,000 (2012 - increased/(decreased) by £24,140,000) and equity reserves would have increased/(decreased) by the same amount.
	Liquidity risk
	This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities.
	The Board imposes borrowing limits to ensure gearing levels are appropriate to market conditions and reviews these on a regular basis. Borrowings comprise a revolving multi-currency credit facility, which expires on 7 October 2014. The Board has imposed a maximum gearing level, measured on the most stringent basis of calculation after netting off cash equivalents, of 25%. Details of borrowings at 30 April 2013 are shown in note 11.
	Liquidity risk is not considered to be significant as the Company's assets comprise mainly readily realisable securities, which can be sold to meet funding commitments if necessary. Short-term flexibility is achieved through the use of the loan facility, details of which can be found in note 11. Under the terms of the loan facility, the Manager provides the lender with loan covenant reports on a monthly basis, to provide the lender with assurance that the terms of the facility are not being breached. The Manager will also review the credit rating of a lender on a regular basis. Details of the Board's policy on gearing are shown in the interest rate risk section of this note.
	Liquidity risk exposure
	At 30 April 2013 and 30 April 2012 the Company's bank loan, amounting to £20,835,000 and £17,664,000 respectively, was due for repayment or roll-over within two months of the year end.
	Credit risk
	This is the risk of failure of the counterparty to a transaction to discharge its obligations under that transaction that could result in the Company suffering a loss.
	The risk is not considered to be significant, and is actively managed as follows:
	-     investment transactions are carried out with a large number of brokers, whose credit-standing is reviewed periodically by the Investment Manager, and limits are set on the amount that may be due from any one broker;
	-     cash is held only with reputable banks with high quality external credit enhancements.
	Credit risk exposure
	In summary, compared to the amounts in the Balance Sheet, the maximum exposure to credit risk at 30 April was as follows:
					2013			2012
					Balance		Maximum	Balance	Maximum
					Sheet		exposure	Sheet	exposure
					£'000		£'000	£'000	£'000
	Non-current assets
	Investments at fair value through profit or loss				280,011		280,011	241,401	241,401
	Current assets
	Loans and receivables				2,238		2,238	1,244	1,244
	Cash at bank and in hand				1,245		1,245	1,356	1,356
					______		______	______	______
					283,494		283,494	244,001	244,001
					______		______	______	______
	None of the Company's financial assets is past due or impaired.
	Fair values of financial assets and financial liabilities
	For the HK$ loan, the fair value of borrowings has been calculated at £12,765,000 as at 30 April 2013 (2012 - £12,244,000) compared to an accounts value in the financial statements of £12,758,000 (2012 - £12,233,000) (note 11). For the US$ loan, the fair value of borrowings has been calculated at £5,580,000 as at 30 April 2013 (2012 - £2,933,000) compared to an accounts value in the financial statements of £5,577,000 (2012 - £2,931,000) (note 11). For the GBP loan, the fair value of borrowings has been calculated at £2,502,000 as at 30 April 2013 (2012 - £2,503,000) compared to an accounts value in the financial statements of £2,500,000 (2012 - £2,500,000) (note 11). The fair value of each loan is determined by aggregating the expected future cash flows for that loan discounted at a rate comprising the borrower's margin plus an average of market rates applicable to loans of a similar period of time and currency. All other assets and liabilities of the Company are included in the Balance Sheet at fair value.

19.	Fair value hierarchy
	FRS 29 'Financial Instruments: Disclosures' requires an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:
	Level 1:	Quoted prices (unadjusted) in active markets for identical assets or liabilities;
	Level 2:	Inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly (ie as prices) or indirectly (ie derived from prices); and
	Level 3:	Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
	All of the Company's investments are in quoted equities (2012 - same) actively traded on recognised stock exchanges, with their fair value being determined by reference to their quoted bid prices at the reporting date. The total value of the investments (2013 - £280,011,000; 2012 - £241,401,000) have therefore been deemed as Level 1.

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.

If approved, the proposed final dividend of 12.0p per share will be paid on 23 August 2013 to holders of Ordinary shares on the register at the close of business on 2 August 2013. The relevant ex-dividend date is 31 July 2013.

The Annual Financial Report Announcement is not the Company's statutory accounts. The above results for the year ended 30 April 2013 have been agreed with the auditors and are an abridged version of the Company's full accounts, which have been approved and audited with an unqualified report. The 2012 and 2013 statutory accounts received unqualified reports from the Company's auditors and did not include any reference to matters to which the auditors drew attention by way of emphasis without qualifying the reports, and did not contain a statement under s.498(2) or 498(3) of the Companies Act 2006.  The financial information for 2012 is derived from the statutory accounts for 2011 which have been delivered to the Registrar of Companies. The 2013 accounts will be filed with the Registrar of Companies in due course.

The Annual General Meeting of the Company will be held at 12.00 noon on 21 August 2013 at Bow Bells House, One Bread Street, London EC4M 9HH.

The audited Annual Report and Accounts will be posted to shareholders shortly. Copies may be obtained during normal business hours from the Secretary, Aberdeen Asset Management PLC, 40 Princes Street, Edinburgh EH2 2BY or from the Company's website, www.newdawn-trust.co.uk*.

By order of the Board

Aberdeen Asset Management PLC - Secretary

21 June 2013

* Neither the Company's website nor the content of any website accessible from hyperlinks on it (or any other website) is (or is deemed to be) incorporated into, or forms (or is deemed to form) part of this announcement.

 

END

 

 

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