Annual Financial Report

RNS Number : 5229I

Aberdeen New Dawn Invest Trust PLC

20 June 2017

ABERDEEN NEW DAWN INVESTMENT TRUST PLC

ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 30 APRIL 2017

Legal Entity Identifier (LEI): 5493002K00AHWEME3J36

Information disclosed in accordance with Section 4.1.3 of the FCA's Disclosure Guidance and Transparency Rules ("DTR")

Investment Objective

To provide shareholders with a high level of capital growth through equity investment in the Asia Pacific countries ex Japan.

Investment Policy

Gearing

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 the Company had net gearing of 9.7% which compares with a current maximum limit set by the Board of 25%. Borrowings are short to medium term and particular care is taken to ensure that any bank covenants permit maximum flexibility of investment policy.

Investment in Other Listed Investment Companies

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 investment trusts). As at 30 April 2017, 2.7% of the Company's gross assets were invested in listed investment companies.

Benchmark

Currency-adjusted MSCI All Countries Asia Pacific ex Japan Index.

Management

The investment management of the Company has been delegated by Aberdeen Fund Managers Limited ("AFML", the "AIFM" or the "Manager") to Aberdeen Asset Management Asia Limited ("AAM Asia" or the "Investment Manager"). Both companies are wholly owned subsidiaries of Aberdeen Asset Management PLC.

Website

Up to date information can be found on the Company's website: www.newdawn-trust.co.uk

COMPANY OVERVIEW - FINANCIAL HIGHLIGHTS

Share price total return^A		Net asset value total return ^A
2017	+38.8%	2017	+39.0%
2016	-15.1%	2016	-15.4%

Index total return^A		Ongoing charges
2017	+36.4%	2017	0.9%
2016	-12.2%	2016	1.1%

Revenue return per share		Dividend per Ordinary share
2017	4.05p	2017	4.00p
2016	4.06p	2016	3.90p

^A Total return represents capital return plus dividends reinvested

For further information, please contact:

Andrew Leigh

Aberdeen Asset Managers Limited 0207 463 6312

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. Investors may not get back the amount they originally invested.

COMPANY OVERVIEW - CHAIRMAN'S STATEMENT

Results and Dividend

I am pleased to report a strong performance for your Company for the year ended 30 April 2017. The net asset value ("NAV") total return for the year was 39.0%, ahead of the total return of 36.4% from the MSCI All Countries Asia Pacific ex Japan Index. The share price total return was 38.8%, with the share price of 212.0p at the end of the year representing a discount of 12.3% to the NAV per share (excluding current year income).

The Board is also pleased to announce a final dividend of 3.0p per share (2016: 2.9p), making a total dividend for the year of 4.0p per share (2016: 3.9p), an increase of 2.6% on last year. If approved by shareholders at the Annual General Meeting, the final dividend will be paid on 1 September 2017 to shareholders on the register on 4 August 2017.

Overview

Asian equities rose sharply during the year in Sterling terms, despite intermittent volatility with heightened political uncertainty playing a pivotal role in investor sentiment. This included the UK's vote to leave the European Union which was followed by a sharp fall in Sterling, thereby boosting the value of foreign-currency denominated assets such as those held by the Company. Risk appetites were tested again in the lead-up to, and aftermath of, Donald Trump's victory in the US presidential election. However, once the initial shock receded, Asian markets found considerable support as hopes that the Trump Presidency would usher in a series of reflationary and growth-focused policies outweighed fears around his protectionist stance.

In this environment, the Company's portfolio performed well compared to the benchmark, most notably in Hong Kong, Singapore and Korea. Within these markets, the Company has a particular focus on businesses with wide regional exposure, including Jardine Strategic and ASM Pacific Technology, rather than those that are dependent on their domestic economies. The Company was duly rewarded for this strategy.

Meanwhile, a series of political successes for Prime Minister Narendra Modi drove the overall positive momentum in Indian equities, which account for a large portion of the Company's underlying portfolio. The well-intentioned but poorly executed demonetisation induced a knee-jerk reaction, affecting consumption almost immediately, while also sparking a stockmarket correction. However, this was mitigated by the passage of the much-anticipated GST bill, which should help simplify the costs of doing business, as well as aid export competitiveness over the longer term. Investors also celebrated the ruling party's election win in Uttar Pradesh, the country's largest state, on hopes that an emboldened Modi would press ahead with his reform agenda.

China was one of the region's best-performers as signs of a stabilising economy and government stimulus attracted a steady flow of capital, some of which also found its way to neighbouring markets with trade links to the mainland. The Company's relatively light direct exposure to China weighed on performance. The Manager has, in the past, been wary of investing too heavily here, due to concerns around corporate governance and often opaque company ownership structures. However, given gradual improvements in these areas, the Manager has been steadily increasing exposure to the mainland through the Aberdeen Global - China A Share Fund, which offers good access to China's domestic market with less stock-specific risk.

At the sector level, commodity-related stocks were particularly buoyant given the rebound in oil prices following Opec's deal to cut output and hopes of increased US infrastructure spending which helped the share price performance of a number of holdings in the portfolio. The Company also benefited from the performance of a number of its technology companies.

The Investment Manager's Review gives a more detailed insight into performance during the period.

Gearing

With the Company's borrowings mostly denominated in US and Hong Kong Dollars, the depreciation of Sterling resulted in the value of its loans rising from £27.0 million to £29.5 million during the year. However, the portfolio's appreciation meant that gearing (net of cash) fell to 9.7%, compared to 11.4% at the start of the year.

Details of the Company's loans are provided in note 12 to the financial statements.

Share Buybacks and Treasury Shares

In line with many other investment trusts, the Company has bought back shares, with the aim of providing a degree of liquidity to the market at times when the discount to the NAV has widened in normal market conditions. It is the view of the Board that this policy is in the interests of shareholders and we review its operation at each Board meeting. The Board will seek to renew the Company's share buyback authority at the Annual General Meeting.

During the year, the Company bought back 3.7 million shares, representing 3.0% of the issued share capital. These shares are held in treasury and, in line with the Company's stated policy on treasury shares, can only be re-issued to the market at a premium to the NAV per share at that time. Shares held in treasury do not qualify to receive dividends. At the end of the year, the Company held 10.1 million shares in treasury, representing 8.6% of the issued share capital (excluding treasury shares).

Since the year end, the Company has bought back a further 565,000 shares to hold in treasury and, as at the date of this Report, there are 10.6 million shares in treasury representing 9.1% of the issued share capital.

In the event of the share price trading at a premium to the NAV per share, Ordinary shares can be re-issued out of treasury more efficiently than new Ordinary shares can be issued. The Board therefore believes that it is appropriate for shares bought back to be held in treasury. Although shares may be held in treasury indefinitely the Board is mindful of the total number of shares held in this way. We have, therefore, decided to adopt a new policy such that, in the event that the number of treasury shares represents more than 10% of the Company's issued share capital (excluding treasury shares) at the end of any financial year, the Company will cancel a proportion of its treasury shares such that the remaining balance will equal 7.5% of the issued share capital. The Board believes that, given the Company's annual 10% share issuance authority, this is a prudent way of managing the Company's capital base. This policy will apply with immediate effect and does not require shareholder approval.

Aberdeen Asset Management

The Board notes the announcements regarding the proposed recommended merger between the parent company of the Company's Manager, Aberdeen Asset Management PLC, and Standard Life PLC. The transaction is subject to regulatory approvals, with an expected completion date in August this year. While Aberdeen has put in place teams to handle the integration, the Board will monitor developments closely to ensure that the existing management team remains focused upon the interests of the Company and its shareholders.

Annual General Meeting

The Annual General Meeting will be held on Wednesday 30 August 2017 at 12 noon at the offices of Aberdeen Asset Management PLC, Bow Bells House, 1 Bread Street, London EC4M 9HH.

Outlook

In the near term, there are grounds for cautious optimism about the Asia Pacific region. Although the so-called 'Trump trade' that has supported global equities for the past few months now seems to be on shakier ground as doubts have grown about the US President's ability to push through promised reforms, Asian markets have taken the bouts of volatility in their stride. Improving corporate earnings, healthier exports and favourable policy-making have been equally instrumental in lifting investor sentiment. The possibility that economic momentum is gaining pace in China has proven a source of comfort, given its fortunes are so crucial to the wider region.

The long term investment case for Asia Pacific remains attractive, underpinned by good demographics, rising wealth and political reform. The Manager continues to have confidence in the Company's underlying holdings, which have been carefully selected for their skilled management, strong balance sheets and good growth prospects through the cycle.

David Shearer

Chairman

19 June 2017

STRATEGIC REPORT - OVERVIEW OF STRATEGY

Business Model

The business of the Company is that of an investment company which seeks to qualify as an investment trust for tax purposes. The Directors do not envisage any change in this activity in the foreseeable future.

Investment Objective

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

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 region provided that over 75% of their consolidated revenue is earned from trading in the Asia Pacific region or they hold more than 75% of their consolidated net assets in the Asia Pacific region.

Gearing

Investment in Other Listed Investment Companies

Delivering the Investment Policy

The Directors are responsible for determining the Company's investment objective and investment policy. Day-to-day management of the Company's assets has been delegated, via the AIFM, to the Investment Manager.

Investment Process

The Investment Manager invests in a diversified range of companies throughout the Asia Pacific region in accordance with the investment policy. The Investment Manager follows a bottom-up investment process based on a disciplined evaluation of companies through direct visits by its fund managers. Stock selection is the major source of added value. No stock is bought without the fund managers having first met management. The Investment Manager estimates a company's worth in two stages: quality then price. Quality is defined by reference to management, business focus, the balance sheet and corporate governance. Price is calculated by reference to key financial ratios, the market, the peer group and business prospects. Top-down investment factors are secondary in the Investment Manager's portfolio construction, with diversification rather than formal controls guiding stock and sector weights. Little attention is paid to market capitalisation.

Benchmark

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

Key Performance Indicators ("KPIs")

The Board uses a number of financial performance measures to assess the Company's success in achieving its objective and determining the progress of the Company in pursuing its investment policy. The main KPIs, which are considered at each Board meeting, are shown in the following table

Performance of net asset value ("NAV")	The Board considers the Company's NAV total return figures to be the best indicator of performance over time and this is therefore the main indicator of performance used.
Performance against benchmark index	The Board measures performance against the benchmark index - the currency-adjusted MSCI All Countries Asia Pacific ex Japan Index.
Revenue return per Ordinary share	The Board monitors the Company's net revenue return.
Dividends per share	The Board monitors the Company's annual dividends per Ordinary share.
Share price performance	The Board monitors the performance of the Company's share price on a total return basis.
Discount/premium to NAV	The discount/premium of the share price relative to the NAV per share is closely monitored by the Board.
Ongoing charges	The Board monitors the Company's operating costs carefully.

Principal Risks and Uncertainties

The Company's principal risks and uncertainties form part of this Overview of Strategy and are included in the separate statement below.

Promoting the Company

The Board recognises the importance of promoting the Company to prospective investors both for improving liquidity and enhancing the value and rating of the Company's shares. The Board believes an effective way to achieve this is through subscription to and participation in the promotional programme run by the Aberdeen Group on behalf of a number of investment trusts under its management. The Company's financial contribution to the programme is matched by the Aberdeen Group. The Aberdeen Group Head of Brand reports 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 purpose of the programme 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. Communicating the long-term attractions of the Company is key and therefore the Company also supports the Aberdeen Group's investor relations programme which involves regional roadshows, promotional and public relations campaigns.

Board Diversity

The Board recognises the importance of having a range of skilled, experienced individuals with relevant knowledge in order to allow it to fulfill its obligations. The Board also recognises the benefits and is supportive of the principle of diversity in its recruitment of new Board members. However, in making new appointments, the Board's overriding priority is to appoint the most appropriate candidates, regardless of gender or other forms of diversity. The Board has not therefore set any measurable objectives in relation to its diversity. At 30 April 2017, there were three male Directors and two female Directors.

Environmental, Social and Human Rights Issues

The Company has no employees as the Board has delegated the day-to-day management and administrative functions to the Manager. There are therefore no disclosures to be made in respect of employees. The Company's socially responsible investment policy is set out below.

Socially Responsible Investment Policy

The Directors, through the Manager, encourage companies in which investments are made to adhere to best practice in the area of corporate governance and socially responsible investing. They believe that this can best be achieved by entering into a dialogue with company management to encourage them, where necessary, to improve their policies in both areas.

The Manager's ultimate objective, however, is to deliver superior investment returns for its clients. Accordingly, whilst the Manager will seek to favour companies which pursue best practice in these areas, this must not be to the detriment of the return on the investment portfolio.

UK Stewardship Code and Proxy Voting as an Institutional Shareholder

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

The full text of the Company's response to the Stewardship Code may be found on its website.

Modern Slavery Act

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 is therefore not required to make a slavery and human trafficking statement. In any event, the Board considers the Company's supply chains, dealing predominantly with professional advisers and service providers in the financial services industry, to be low risk in relation to this matter.

Global Greenhouse Gas Emissions

The Company has no greenhouse gas emissions to report from its operations, nor does it have responsibility for any other emissions producing sources under the Companies Act 2006 (Strategic Report and Directors' Reports) Regulations 2013.

Duration

The Company does not have a fixed life. However, under its 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 NAV (excluding current year income, and with borrowings stated at market value) over the same period, notice will be given of an ordinary resolution to be proposed at the following Annual General Meeting to approve the continuation of the Company. If the resolution for the continuation of the Company is not passed at that Annual General Meeting or any adjournment thereof, the Directors will convene a general meeting to be held not more than three months after the Annual General Meeting at which a special resolution for the winding-up of the Company will be proposed. In the 90 days to 30 April 2017 the average discount to underlying NAV (excluding current year income, and with borrowings stated at market value) of the Ordinary shares was 13.0% and therefore no continuation resolution will be put to the Company's shareholders at this year's Annual General Meeting.

Viability Statement

The Board considers the Company, with no fixed life, to be a long term investment vehicle and it intends to maintain the current mandate. For the purposes of this viability statement, the Board has decided that 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 and uncertainties detailed below, in particular those relating to investment in Asia Pacific countries, and the steps taken to mitigate these risks.

· The role of the Audit and Risk Committee in reviewing and monitoring the Company's internal control and risk management systems.

· The ongoing relevance of the Company's investment objective.

· The liquidity of the Company's portfolio. All of the Company's investments are in quoted equities actively traded on recognised stock exchanges.

· The closed-ended nature of the Company which means that it is not subject to redemptions.

· The use of the Company's share buy back and share issuance policies to help address any imbalance of supply and demand for the Company's shares.

· The current and maximum levels of gearing, compliance with loan covenants and level of headroom within the financial covenants (see note 12 to the financial statements for details of loan covenants).

· The ability of the Company to repay or refinance its £35 million loan facility on, or before, its maturity in October 2019.

· The potential requirement of the Board to propose a resolution to approve the continuation of the Company at future Annual General Meetings. As explained above, this is dependent upon the level of discount in the 90 days preceding the Company's financial year end and there is no requirement for such a resolution to be proposed at the forthcoming Annual General Meeting.

In making its assessment, the Board has considered that there are other matters that could have an impact on the Company's prospects or viability in the future, including a large economic shock, significant stock market volatility, and changes in regulation or investor sentiment.

Taking into account the Company's current position 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.

Future

The majority of the region's economies have high rates of growth relative to developed markets, strong trade and fiscal surpluses and rapidly developing capital markets. Nevertheless, the past has demonstrated that there can be specific risks associated with the region. Many of the non-performance related trends likely to affect the Company in the future are common across all closed-ended investment companies, such as the attractiveness of investment companies as investment vehicles, the impact of regulatory changes (including MiFID II and the Packaged Retail Investment and Insurance Products regulations) and the recent changes to the pensions and savings market in the UK. 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 the Chairman's Statement whilst the Investment Manager's views on the outlook for the portfolio are included in its statement below.

On behalf of the Board

David Shearer

Chairman

19 June 2017

STRATEGIC REPORT - RESULTS

Financial Highlights (capital return)

	30 April 2017	30 April 2016	% change
Total assets	£315,715,000	£243,229,000	+29.8
Total equity shareholders' funds (net assets)	£286,191,000	£216,243,000	+32.3
Market capitalisation	£247,748,000	£188,010,000

Net asset value per share (including current year income)	244.90p	179.43p	+36.5
Net asset value per share (excluding current year income)	241.79p	176.30p	+37.1
Share price (mid market)	212.00p	156.00p	+35.9
Discount to net asset value (including current year income)	13.4%	13.1%
Discount to net asset value (excluding current year income)	12.3%	11.5%


MSCI AC Asia Pacific ex Japan Index (currency adjusted, capital gains basis)	703.67	531.87	+32.3

Net gearing ^A	9.72%	11.38%

Dividend and earnings
Revenue return per share ^B	4.05p	4.06p	-0.2
Dividends per share ^C	4.00p	3.90p	+2.6
Dividend cover	1.01	1.04
Revenue reserves ^D	£12,582,000	£12,417,000

Operating costs
Ongoing charges ratio ^E	0.91%	1.08%

^A Calculated in accordance with AIC guidance "Gearing Disclosures post RDR".
^B Measures the total earnings for the year divided by the weighted average number of Ordinary shares in issue (see Statement of Comprehensive Income).
^C The figures for dividends reflect the years in which they were earned (see note 8) and assume approval of the final dividend.
^D Prior to payment of proposed final dividend.
^E Ongoing charges ratio has been calculated in accordance with guidance issued by the AIC as the total of the management fee and administrative expenses divided by the average cum income net asset value throughout the year.

STRATEGIC REPORT - PERFORMANCE

Performance (total return)

	1 year return	3 year return	5 year return
	%	%	%
Net asset value	+39.0	+37.6	+48.8
Share price	+38.8	+34.7	+46.1
MSCI AC Asia Pacific ex Japan Index (currency adjusted)	+36.4	+47.0	+62.1

Dividends

	Rate	xd date	Record date	Payment date
Interim 2017	1.00p	5 January 2017	6 January 2017	27 January 2017
Proposed final 2017	3.00p	3 August 2017	4 August 2017	1 September 2017
	_______
Total 2017	4.00p
	_______
Interim 2016	1.00p	7 January 2016	8 January 2016	29 January 2016
Final 2016	2.90p	4 August 2016	5 August 2016	2 September 2016
	_______
Total 2016	3.90p
	_______

Ten Year Financial Record

Year to 30 April	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017
Total revenue (£'000)	4,301	4,734	4,372	5,752	6,799	6,562	6,819	7,412	7,004	6,922
Per share (p) ^A
Net revenue return	1.63	2.10	2.37	3.17	3.97	3.89	3.79	4.18	4.06	4.05
Total return	20.30	(30.64)	66.34	26.44	(2.72)	33.49	(18.68)	31.74	(34.72)	68.66
Net dividends paid/proposed	1.20	1.60	2.00	2.50	3.30	3.40	3.60	3.80	3.90	4.00
Net asset value	129.26	97.42	162.16	186.60	181.38	210.57	188.49	216.67	179.43	244.90
	_____	_____	_____	_____	_____	_____	_____	_____	_____	_____
Shareholders' funds (£'000)	160,993	121,339	201,969	232,406	225,908	262,263	234,762	269,398	216,243	286,191
	_____	_____	_____	_____	_____	_____	_____	_____	_____	_____

^A Figures for 2008-2013 have been restated to reflect the 5:1 sub-division on 3 September 2013.

STRATEGIC REPORT - INVESTMENT MANAGER'S REVIEW

Market Review

Equities in the Asia Pacific region achieved significant gains in the year under review, supported by renewed interest from global investors. In particular, those UK investors with overseas assets benefited from the fall in Sterling to 30 year lows following the result of the UK's referendum on European Union membership.

Meanwhile, the strengthening global economy and a recovery in commodity prices, especially that of oil, bolstered investors' appetite for risk. Despite a hesitant start, Asia-Pacific equities were buoyed by the liquidity-driven run-up as investors from developed markets turned their attention to the region. In the latter part of the year, stockmarkets continued to do well on hopes that Donald Trump's unexpected election as US President would herald expansionary government spending on defence and infrastructure, along with corporate tax cuts.

Portfolio Review

The Company's net asset value total return for the year was 39.0%, which compared to 36.4% for the MSCI All Countries Asia Pacific ex Japan Index. This performance was particularly encouraging as it appears to reflect the markets' return to focusing on corporate fundamentals, which has played well to the bottom-up, stock-picking approach that we favour.

The portfolio's holdings in Hong Kong and Korea were notable contributors to performance. In Hong Kong, Jardine Strategic's share price was supported by expectations that the outlook for its subsidiaries will continue to improve. In particular, its Indonesian unit, Astra International, should benefit from the recovery in its mining services, plantations and financial services businesses. At the same time, its retail arm, Dairy Farm, has achieved higher profit margins by shutting down non-performing stores, while also expanding its more lucrative fresh food segment. In addition, Jardine Strategic's inclusion into the MSCI AC World Index helped its share price. The portfolio also benefited from the performance of HSBC Holdings, which is experiencing an improvement in net interest margins as well as its management's commitment to returning capital to shareholders via a series of share buybacks. ASM Pacific Technology also performed well. We continue to like the company for its market leadership, robust balance sheet and commitment to investing through the business cycle that has helped it maintain its market-leading position.

In Korea, the holding in Samsung Electronics was aided by its share buyback and cancellation programme. We have engaged with management over the need to return excess cash to shareholders, and were pleased when it announced a substantial share buyback programme and agreed to return a portion of its free cashflow to shareholders on an ongoing basis. Samsung also cancelled shares held in treasury, removing the risk of potential dilution.

On the downside, the portfolio's underweight exposure to China and Taiwan was detrimental to performance. The lack of direct exposure to Chinese internet companies, Tencent and Alibaba, in addition to the tech-heavy Taiwanese stockmarket, impacted performance. Chinese equities, along with those in the technology sector, rebounded on the back of improved market stability. However, in the first half of the year, we initiated a position in the Aberdeen Global - China A Share Fund which rose over the course of the year. The A Share Fund provides the portfolio with an exposure to China, while offering some measure of diversification. The introduction of this position reflects our increased comfort with holding mainland companies, having seen improvements in both their quality of earnings and corporate governance standards. This also allowed us to initiate a direct holding in newly-listed Yum China in the second half of the year. A spin off from Yum Brands, it offers direct exposure to the Chinese consumer. It is one of the largest restaurant operators on the mainland, running the KFC, Pizza Hut, East Dawning and Little Sheep chains. Its 7,200 outlets generate US$6.9 billion in revenue. It is backed by a strong balance sheet and high cashflow.

In addition to the portfolio changes referred to in the Half-Yearly Report, we recently initiated a holding in Singapore-based hospital operator Raffles Medical Group. Its long-term growth prospects appear attractive, with healthcare spending in Asia expected to grow for the foreseeable future. Raffles Medical has established itself as an efficient healthcare provider in the domestic market, where it has a solid operational history and a well-recognised brand. The group is not only expanding capacity at home but also venturing abroad, with a focus on China where it has invested in two hospital projects - in Shanghai and Chongqing. Together, these will add 1,100 beds to the group's overall capacity and should contribute to profits from 2018.

Corporate Governance and Engagement

As active managers, we seek to share with the management of investee companies the insight and experiences that we have accrued through decades of engaging with companies throughout the region. We believe that, ultimately, this has allowed us to become better stewards of capital. Key examples of our efforts in the second half of the year include discussions with DBS Bank on topics such as board governance and time commitment; meeting with Keppel's new in-house asset management subsidiary, Keppel Capital, to exchange views on strategy; communicating with Naver about capital allocation and corporate structure; and discussions with AmorePacific on how to improve quality following product recalls.

Corporate governance is one of Aberdeen's cornerstones. In trying to align the interest of the underlying holdings with that of your Company, it also allows us to unlock the value of these companies, which have conservatively managed balance sheets. We believe it is the right approach to investing in Asia as markets across the region are unique, each jurisdiction with its own set of rules and standards, as well as risks. Regular and active engagement allows us to encourage companies to become even better at what they do. To achieve our goal, we try to use persuasion, not confrontation. The best companies will welcome us, and have a natural interest in value creation. This is something that we will continue to do to ensure that the companies maintain their solid fundamentals, and that their long-term growth potential remains undiminished over the long term.

Outlook

Prospects for the global economy appear generally upbeat, supported by economic growth in Europe and the US. The outlook for the Asia Pacific region is also improving, especially the reform-fuelled growth in India. China appears relatively stable, although elevated debt levels are a cause for concern. From a stock market perspective, valuations in the region are undemanding and we remain satisfied that the portfolio's holdings are focused on stringent cost controls. They are also frontrunners in their respective fields and invest to maintain their lead, through product innovation, as well as research and development. In addition, they are led by experienced management and armed with considerable financial muscle. These efforts should stand them in good stead over the longer term.

Aberdeen Asset Management Asia Limited

19 June 2017

STRATEGIC REPORT - PRINCIPAL RISKS AND UNCERTAINTIES

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 risks and uncertainties faced by the Company are reviewed by the Audit and Risk Committee in the form of a risk matrix, and the principal risks and uncertainties facing the Company at the current time, together with a description of the mitigating actions the Board has taken, are set out in the table below. The Board has carried out a robust assessment of these risks, which include those that would threaten its business model, future performance, solvency or liquidity. The principal risks associated with an investment in the Company's shares are published monthly on the Company's factsheet and they can be found in the pre-investment disclosure document ("PIDD") published by the Manager, both of which are available on the Company's website.

Risk

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 the Company becoming unattractive to investors, a decreased demand for its shares and a widening discount.

The Board keeps the level of discount at which the Company's shares trade, as well as the investment objective and policy under review and holds an annual strategy meeting where it reviews investor relations reports and updates from the Investment Manager and the Company's Broker.

The Directors are updated at each Board meeting on the composition of, and any movements in, the shareholder register.

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, as well as a widening discount.

The Board meets the Manager on a regular basis and keeps investment performance under close review. Representatives of the Investment Manager attend all Board meetings and a detailed formal appraisal of the Aberdeen Group is carried out annually by the Management Engagement Committee.

The Board sets, and monitors, the 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 guidelines. The Board also monitors the Company's share price relative to the net asset value per share.

Investment limits

In addition to the limits set out in the investment policy, the Investment Manager is authorised by the Board to invest up to 15% of the Company's gross assets in any single stock, calculated at the time an investment is made.

Income/dividends - the level of the Company's dividends and future dividend growth will depend on the performance of the underlying portfolio. Any change in the tax treatment of dividends or interest received by the Company may reduce the level of net income available for the payment of dividends to shareholders.

The Directors review detailed income forecasts at each Board meeting. The Company has built up significant revenue reserves which can be drawn upon if required should there be a shortfall in revenue returns.

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 by the Investment Manager. Further details of the steps taken to mitigate the financial risks associated with the portfolio are set out in note 16 to the financial statements.

Gearing - a fall in the value of the Company's investment portfolio could be exacerbated by the impact of gearing. It could also result in a breach of loan covenants.

The Board sets the gearing limits within which the Investment Manager can operate. Gearing levels and compliance with loan covenants are monitored on an ongoing basis by the Manager and at regular Board meetings. In the event of a possible impending covenant breach, appropriate action would be taken to reduce borrowing levels.

In addition, AFML, as alternative investment fund manager, has set overall leverage limits.

Regulatory - failure to comply with relevant laws and regulations (including the Companies Act, The Financial Services and Markets Act, The Alternative Investment Fund Managers Directive, accounting standards, Investment Trust regulations, the Listing Rules, Disclosure Guidance and Transparency Rules and Prospectus Rules) could result in fines, loss of reputation and potentially loss of an advantageous tax regime.

The Board and Manager monitor changes in government policy and legislation which may have an impact on the Company, and the Audit and Risk Committee monitors compliance with regulations by reviewing internal control reports from the Manager. From time to time the Board employs external advisers to advise on specific matters.

Operational - the Company is dependent on third parties for the provision of all systems and services (in particular, those of the Aberdeen Group) and any control failures and gaps in their systems and services could result in fraudulent activities or a loss or damage to the Company.

Written agreements are in place with all third party service providers.

The Board receives reports from the Manager on its internal controls and risk management throughout the year and receives assurances from all its other significant service providers on at least an annual basis.

The Manager monitors closely the control environments and quality of services provided by third parties, including those of the Depositary and Custodian, through service level agreements, regular meetings and key performance indicators.

In addition to the risks stated above, the Board is conscious that investment in Asia Pacific securities, or in companies that derive significant revenue or profit from the Asia Pacific region, involves a greater degree of risk than that usually associated with investment in the securities in developed markets, which may have an adverse effect on economic returns or restrict investment opportunities. These risks 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.

PORTFOLIO - TEN LARGEST INVESTMENTS

As at 30 April 2017

			Valuation	Total	Valuation
			2017	Assets	2016
Company	Industry	Country	£'000	%	£'000
Aberdeen Global - Indian Equity Fund^B			39,165	12.4	24,674
A tax-efficient pooled India fund with a long-term investment approach managed by the same team managing the Company.	Collective Investment Scheme	India
Jardine Strategic Holdings			16,379	5.2	11,247
A Hong Kong conglomerate with regional interests in retail, property, hotels and auto distribution. It provides the Company with a diversified exposure to the Asian consumer, backed by good distribution networks, established franchises and a decent valuation.	Industrial Conglomerates	Hong Kong
Samsung Electronics Pref			16,151	5.1	12,415
A leading semiconductor company which is also a major player in mobile phones and TFT-LCDs. The Company owns the preferred shares, which trade at a discount to the ordinary shares.	Technology Hardware Storage & Peripherals	South Korea
Oversea-Chinese Banking Corporation			13,325	4.2	10,714
A Singapore lender that is evolving into a regional financial services firm, with a meaningful presence in Southeast Asia. Its acquisition of Wing Hang Bank, subject to regulatory approval, will also give it access to greater China and the offshore yuan market, augmented by its stake in Bank of Ningbo.	Banks	Singapore
Taiwan Semiconductor Manufacturing Company			11,660	3.7	8,689
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
Aberdeen Global - China A Share Equity Fund ^B			11,354	3.6	-
The Fund offers a selection of Chinese companies that benefits from rising consumption and incomes of a growing middle class. However, investing in the A-share market remains challenging and we believe it is more prudent to do so via a pooled vehicle offering diversification with lower stock-specific risk and volatility.	Collective Investment Scheme	China
AIA Group			10,604	3.4	9,012
A leading pan-Asian life insurance company, it is poised to take advantage of Asia's growing affluence, backed by an effective agency force and solid fundamentals.	Insurance	Hong Kong
Ayala Land			9,447	3.0	8,233
A leading property developer in the Philippines with an attractive land bank, well-respected brand and expertise across residential, commercial and retail sectors.	Real Estate Management & Development	Philippines
City Developments			9,294	2.9	7,726
A leading Singapore-based property developer with seasoned management. We see value in the company, not just from its sizeable low-cost land bank but also from its holding in the global Millennium & Copthorne hotel chain.	Real Estate Management & Development	Singapore
CSL			9,173	2.9	5,179
The vertically-integrated biopharmaceutical company has a portfolio of plasma products that has both breadth and depth, and is backed by a steady balance sheet. There is potential to grow its recently acquired vaccine business, while prospects for its more mature Albumin business is likely to come from the increasingly affluent emerging markets.	Biotechnology	Australia
Top ten investments			146,552	46.4

PORTFOLIO - OTHER INVESTMENTS

As at 30 April 2017

			Valuation	Total	Valuation
			2017	Assets	2016
Company	Industry	Country	£'000	%	£'000
Siam Cement (Foreign)	Construction Materials	Thailand	8,100	2.6	7,725
Rio Tinto (London Listing)	Metals & Mining	Australia	7,935	2.5	7,106
Singapore Telecommunication	Diversified Telecommunication Services	Singapore	7,342	2.3	6,942
China Mobile	Wireless Telecommunication Services	China	7,296	2.3	6,924
Bank Central Asia	Banks	Indonesia	6,752	2.2	2,202
Singapore Technologies Engineering	Aerospace & Defence	Singapore	6,400	2.0	6,559
HSBC Holdings	Banks	Hong Kong	6,371	2.0	7,096
Swire Pacific B Shares^C	Real Estate Management & Development	Hong Kong	6,278	2.0	6,828
Aberdeen New India Inv. Trust	Investment Trusts	India	5,730	1.8	4,143
Standard Chartered (London listing)	Banks	United Kingdom	5,527	1.8	5,798
Top twenty investments			214,283	67.9
Keppel Corporation	Industrial Conglomerates	Singapore	5,481	1.7	4,119
Naver Corporation	Internet Software & Services	South Korea	5,291	1.7	1,254
BHP Billiton (London listing)	Metals & Mining	Australia	5,051	1.6	4,860
Swire Properties	Real Estate Management & Development	Hong Kong	4,882	1.6	3,363
Taiwan Mobile	Wireless Telecommunication Services	Taiwan	4,727	1.5	4,475
M.P. Evans Group	Food Products	United Kingdom	4,212	1.3	2,557
Venture Corp	Electronic Equipment, Instruments & Components	Singapore	4,116	1.3	2,594
Hong Kong Exchanges & Clearing	Capital Markets	Hong Kong	3,990	1.3	2,427
United Overseas Bank	Banks	Singapore	3,799	1.2	7,420
Yum China Holdings	Hotels, Restaurants & Leisure	China	3,612	1.1	-
Top thirty investments			259,444	82.2
DBS Group Holdings	Banks	Singapore	3,581	1.1	2,495
ASM Pacific Technology	Semiconductors & Semiconductor Equipment	Hong Kong	3,482	1.1	1,488
Vietnam Dairy Products	Food Products	Vietnam	3,406	1.1	1,048
CIMB Group Holdings	Banks	Malaysia	3,164	1.0	2,419
Unilever Indonesia	Household Products	Indonesia	3,159	1.0	2,697
John Keells Holdings^D	Industrial Conglomerates	Sri Lanka	3,095	1.0	2,326
Anhui Conch Cement H Shares	Construction Materials	China	2,976	0.9	1,109
E-Mart	Food & Staples Retailing	South Korea	2,963	0.9	3,327
Hang Lung Group	Real Estate Management & Development	Hong Kong	2,838	0.9	1,847
Aberdeen Asian Smaller Companies Inv. Trust^{D E}	Investment Trusts	Other Asia	2,786	0.9	2,663
Top forty investments			290,894	92.1
Hang Lung Properties	Real Estate Management & Development	Hong Kong	2,665	0.8	1,795
Dairy Farm International	Food & Staples Retailing	Hong Kong	2,611	0.8	2,664
Public Bank Berhad	Banks	Malaysia	2,562	0.8	2,353
Amorepacific Corporation ^F	Personal Goods	South Korea	2,521	0.8	1,118
PetroChina H Shares	Oil, Gas & Consumable Fuels	China	2,483	0.8	4,645
MTR Corporation	Road & Rail	Hong Kong	2,192	0.7	1,627
Astra International	Automobiles	Indonesia	1,928	0.6	1,297
Raffles Medical	Health Care Providers & Services	Singapore	1,543	0.5	-
Kerry Logistics Network	Air Freight & Logistics	Hong Kong	1,406	0.5	-
Aitken Spence & Co.	Industrial Conglomerates	Sri Lanka	1,261	0.4	1,673
Top fifty investments			312,066	98.8
DFCC Bank	Banks	Sri Lanka	1,113	0.4	1,206
Bangkok Dusit Medical Services	Health Care Providers & Services	Thailand	351	0.1	-
Total investments			313,530	99.3
Net current assets ^G			2,185	0.7
Total assets			315,715	100.0

^B No double-charging of management fees by Aberdeen.
^C 2016 holding merged two equity holdings, with values split as follows: A shares £475,000 and B shares £6,353,000.
^D 2016 holding comprised equity and warrant £2,318,000 and £8,000.
^E 2016 holding comprised equity and convertible unsecured loan stock split £2,177,000 and £486,000.
^F Holding merges two equity holdings with values split as follows: Ordinary shares £299,000 and Preference shares £2,222,000 (2016 - £1,118,000).
^G Excluding bank loans of £29,524,000.
Note: Unless otherwise stated, foreign stock is held and all investments are equity holdings.

PORTFOLIO - CHANGES IN ASSET DISTRIBUTIONS

	Value at		Sales	Appreciation/	Value at
	30 April 2016	Purchases	proceeds	(depreciation)	30 April 2017
Country	£'000	£'000	£'000	£'000	£'000
Australia	24,006	3,580	12,212	6,785	22,159
China	12,678	14,300	2,430	3,173	27,721
Hong Kong	49,394	3,217	8,329	19,416	63,698
India	28,817	5,620	-	10,458	44,895
Indonesia	6,196	2,908	-	2,735	11,839
Malaysia	4,772	111	-	843	5,726
Other Asia	2,663	-	524	647	2,786
Philippines	8,233	426	-	788	9,447
Singapore	48,569	3,502	10,463	13,273	54,881
South Korea	18,114	5,405	6,988	10,395	26,926
Sri Lanka	6,175	127	1,139	306	5,469
Taiwan	13,164	-	2,476	5,699	16,387
Thailand	7,725	362	1,455	1,819	8,451
United Kingdom	8,355	-	2,010	3,394	9,739
Vietnam	1,048	1,887	-	471	3,406
	_________	_________	_________	_________	_________
Total investments	239,909	41,445	48,026	80,202	313,530
Net current assets ^A	3,320	-	-	(1,135)	2,185
	_________	_________	_________	_________	_________
Total assets less current liabilities	243,229	41,445	48,026	79,067	315,715
	_________	_________	_________	_________	_________

^A Excluding bank loans of £29,524,000.

DIRECTORS' REPORT (EXTRACT)

The Directors present their report and the audited financial statements for the year ended 30 April 2017.

Results and Dividends

The financial statements for the year ended 30 April 2017 are contained below. An interim dividend of 1.0p per Ordinary share was paid on 27 January 2017 and the Board recommends a final dividend of 3.0p per Ordinary share, payable on 1 September 2017 to shareholders on the register on 4 August 2017. The relevant ex-dividend date is 3 August 2017. A resolution in respect of the final dividend will be proposed at the forthcoming Annual General Meeting.

Investment Trust Status

The Company is registered as a public limited company (registered in England and Wales No. 02377879) and is an investment company within the meaning of Section 833 of the Companies Act 2006. The Company has been approved by HM Revenue & Customs as an investment trust subject to it continuing to meet the relevant eligibility conditions of Section 1158 of the Corporation Tax Act 2010 and the ongoing requirements of Part 2 Chapter 3 Statutory Instrument 2011/2999 for all financial years commencing on or after 1 May 2012. The Directors are of the opinion that the Company has conducted its affairs for the year ended 30 April 2017 so as to enable it to comply with the ongoing requirements for investment trust status.

Individual Savings Accounts

The Company has conducted its affairs in such a way 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

The issued Ordinary share capital at 30 April 2017 consisted of 116,862,098 Ordinary shares of 5p and 10,073,567 shares held in treasury. During the year the Company purchased 3,656,912 Ordinary shares to be held in treasury and, since the end of the year, it has purchased a further 565,000 Ordinary shares to be held in treasury. At the date of approval of this Report there were 116,297,098 Ordinary shares of 5p in issue and 10,638,567 shares held in treasury.

Voting Rights

Each Ordinary shareholder is entitled to one vote on a show of hands at general meetings of the Company and, on a poll, to one vote for every share held. 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 from time to time be imposed by law.

Management Agreement

The Company has appointed Aberdeen Fund Managers Limited, a wholly owned subsidiary of Aberdeen Asset Management PLC, as its alternative investment fund manager. AFML has been appointed to provide investment management, risk management, administration and company secretarial services to the Company as well as promotional activities. The Company's portfolio is managed by Aberdeen Asset Management Asia Limited by way of a group delegation agreement in place between AFML and AAM Asia. In addition, AFML has sub-delegated promotional activities to Aberdeen Asset Managers Limited and administrative and secretarial services to Aberdeen Asset Management PLC.

Details of the management fee and fees payable for promotional activities are shown in notes 4 and 5 to the financial statements. The management agreement is terminable on not less than 12 months' notice. In the event of termination by the Company on less than the agreed notice period, compensation is payable to the Manager in lieu of the unexpired notice period.

Substantial Interests

At 30 April 2017 the following interests in the issued Ordinary share capital of the Company had been disclosed in accordance with the requirements of the FCA's Disclosure Guidance and Transparency Rules:

Shareholder	Number of Ordinary shares held	% held^B
Aberdeen Investment Trust Share Plans^A	9,308,579	7.9
Funds managed by Rathbones	8,443,851	7.2
Old Mutual Plc	6,848,084	5.8
Derbyshire County Council	6,350,000	5.4
City of London Investment Management Company Ltd	6,017,273	5.1
Wells Capital Management Inc	5,947,051	5.0

^ANon-beneficial interest

^BBased on 116,862,098 Ordinary shares in issue as at 30 April 2017

There have been no changes notified to the Company since the year end as at the date of approval of this Report.

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 (the "UK Code"), as published in September 2014 and effective for financial years commencing on or after 1 October 2014, which is available on the Financial Reporting Council's website: frc.org.uk.

The Board has also considered the principles and recommendations of the AIC Code of Corporate Governance (the "AIC Code") by reference to the AIC Corporate Governance Guide for Investment Companies (the "AIC Guide"). The AIC Code, as explained by the AIC Guide, addresses all the principles set out in the UK Code, as well as setting out additional principles and recommendations on issues that are of specific relevance to investment trusts. The AIC Code and AIC Guide are available on the AIC's website: theaic.co.uk.

The Board considers that reporting in accordance with the principles and recommendations of the AIC Code, and by reference to the AIC Guide (which incorporates the UK Code), will provide better information to shareholders. The Board confirms that, during the year, the Company complied with the recommendations of the AIC Code and the relevant provisions of the UK Code, except as set out below.

The UK Code includes provisions relating to:

· the role of the chief executive (A.1.2);

· executive directors' remuneration (D.1.1 and D.1.2); and

· the need for an internal audit function (C.3.6).

For the reasons set out in the AIC Guide, and as explained in the UK Code, 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 Company is also non-compliant with Provision A.4.1 of the UK Code which states that the Board should appoint a Senior Independent Director. The Board has considered whether a Senior Independent Director should be appointed and has concluded that, given the current size of the Board and the fact that it is comprised entirely of non-executive Directors, this is unnecessary at the present time.

The full text of the Company's Corporate Governance Statement can be found on its website.

Directors

The Board comprise five Directors, consisting of an independent non-executive Chairman and four non-executive Directors. Ms Sears was appointed as a Director on 1 August 2016 and stood for election at the Annual General Meeting on 31 August 2016. All Directors, with the exception of Mr Young, are considered by the Board to be independent and free of any material relationship with the Aberdeen Group. Mr Young is a Director of various entities connected with, or within, the Aberdeen Group and, as such, is not considered to be independent.

Directors attended scheduled Board and Committee meetings during the year ended 30 April 2017 as shown in the table below (with their eligibility to attend the relevant meeting in brackets).

Director	Board Meetings	Audit and Risk Committee Meetings	Nomination Committee Meetings	Manage-ment Engagement Committee Meetings
D Shearer^A	6 (6)	2 (2)	1 (1)	1 (1)
J Lorimer	6 (6)	2 (2)	1 (1)	1 (1)
S Rippingall	6 (6)	2 (2)	1 (1)	1 (1)
M Sears^B	5 (5)	1 (1)	1 (1)	- (-)
H Young^C	6 (6)	- (-)	1 (1)	- (-)

^A Mr Shearer is not a member of the Audit and Risk Committee, although attends by invitation.

^B Appointed on 1 August 2016.

^C Mr Young is not a member of the Audit and Risk or Management Engagement Committees.

The Board meets more frequently when business needs require.

The Company's Articles of Association require that one third of the Directors retire by rotation at each Annual General Meeting, and that any Director who was not elected or re-elected at one of the preceding two Annual General Meetings also retires by rotation at the Annual General Meeting. However, the Board has decided that, notwithstanding the provisions of the Articles of Association, all Directors will retire at each Annual General Meeting and, if eligible, may seek re-election. Messrs Shearer, Lorimer and Young, Ms Rippingall and Ms Sears will therefore retire and seek re-election at the Annual General Meeting.

The Board believes that, except for Mr Young, all Directors remain independent of the Manager and free from any relationship which could materially interfere with the exercise of their judgement on issues of strategy, performance, resources and standards of conduct. In addition, the Board confirms that, following a formal performance evaluation, the performance of all Directors continues to be effective and demonstrates commitment to the role. The Board therefore recommends the re-election of each of the Directors at the Annual General Meeting.

Directors' and Officers' Liability Insurance

The Company's Articles of Association indemnify each of the Directors out of the assets of the Company against any liabilities incurred by them as a Director of the Company in defending proceedings, or in connection with any application to the Court in which relief is granted. In addition, the Directors have been granted qualifying indemnity provisions by the Company which are currently in force. Directors' and Officers' liability insurance cover has been maintained throughout the year at the expense of the Company.

Management of Conflicts of Interest

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, each Director prepares a list of 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 all Directors are issued with letters of appointment.

The Board takes a zero-tolerance approach to bribery and has adopted appropriate procedures designed to prevent bribery. The Manager also takes a zero-tolerance approach and has its own detailed policy and procedures in place to prevent bribery and corruption.

Going Concern

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 cash flow projections and compliance with banking covenants. 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.

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 they have taken all the steps that they could reasonably be expected to have taken as Directors 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

The Company's Auditor, KPMG LLP, has indicated its willingness to remain in office. The Board will place resolutions before the Annual General Meeting to re-appoint KPMG LLP as Auditor for the ensuing year and to authorise the Directors to determine its remuneration.

Relations with Shareholders

The Directors place a great deal of importance on communication with shareholders. Shareholders and investors may obtain up to date information on the Company through its website and the Manager's information service.

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

In addition, the Company Secretary only acts on behalf of the Board, not the Manager, and there is no filtering of communication. At each Board meeting the Board receives full details of any communication from shareholders to which the Chairman responds personally as appropriate.

The Notice of the Annual General Meeting is sent out at least 20 working days in advance of the meeting. All shareholders have the opportunity to put questions to the Board and Manager at the meeting.

The Company has adopted a nominee code, which ensures that, when shares in the Company are held in the name of nominee companies and notification has been received in advance, nominee companies will be provided with copies of shareholder communications for distribution to their investors. Nominee investors may attend and speak at general meetings.

Participants in the Aberdeen Investment Trust Share Plan and ISA, whose shares are held in the nominee name of the plan administrator, are given the opportunity to vote at the Annual General Meeting by means of a Letter of Direction enclosed with the Annual Report. When forwarded to the plan administrator, the voting instructions given in the Letter of Direction will in turn be reflected in the proxy votes lodged by the plan administrator.

Electronic Communications

The Company's Articles of Association allow shareholders to elect to receive communications from the Company and allow voting in electronic format. If shareholders would like to receive future communications in electronic format they should contact the Company's registrar, Equiniti Limited. If shareholders wish to continue to receive Annual Reports and other communications in hard copy format only they need take no further action.

Annual General Meeting

The Annual General Meeting will be held at the offices of Aberdeen Asset Management PLC, Bow Bells House, 1 Bread Street, London EC4M 9HH on 30 August 2017 at 12 noon.

By order of the Board

Aberdeen Asset Management PLC

Company Secretary

19 June 2017

STATEMENT OF COMPREHENSIVE INCOME

		Year ended 30 April 2017			Year ended 30 April 2016
		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	10	-	80,202	80,202	-	(45,629)	(45,629)
Income	3	6,922	-	6,922	7,004	-	7,004
Management fee	4	(810)	(810)	(1,620)	(829)	(829)	(1,658)
Administrative expenses	5	(766)	-	(766)	(734)	-	(734)
Exchange losses		-	(2,477)	(2,477)	-	(959)	(959)
		_______	_______	______	_______	______	_______
Net return before finance costs and taxation		5,346	76,915	82,261	5,441	(47,417)	(41,976)

Interest payable and similar charges	6	(257)	(257)	(514)	(227)	(227)	(454)
Return before taxation		5,089	76,658	81,747	5,214	(47,644)	(42,430)

Taxation	7	(279)	-	(279)	(226)	-	(226)
		_______	_______	______	_______	______	_______
Return after taxation		4,810	76,658	81,468	4,988	(47,644)	(42,656)
		_______	_______	______	_______	______	_______

Return per Ordinary share (pence)	9	4.05	64.61	68.66	4.06	(38.78)	(34.72)
		_______	_______	______	_______	______	_______

The total column of this statement represents the profit and loss account of the Company.
The Company does not have any income or expense that is not included in "Return after taxation" and therefore this represents the "Total comprehensive income for the year".
All revenue and capital items are derived from continuing operations.
The accompanying notes are an integral part of the financial statements.

STATEMENT OF FINANCIAL POSITION

		As at	As at
		30 April 2017	30 April 2016
	Notes	£'000	£'000
Fixed assets
Investments at fair value through profit or loss	10	313,530	239,909
		_________	_________
Current assets
Debtors	11	1,052	1,319
Cash at bank and in hand		1,719	2,369
		_________	_________
		2,771	3,688
		_________	_________
Creditors: amounts falling due within one year	12
Loans		(24,524)	(21,986)
Other creditors		(586)	(368)
		_________	_________
		(25,110)	(22,354)
		_________	_________
Net current liabilities		(22,339)	(18,666)
		_________	_________
Total assets less current liabilities		291,191	221,243

Non-current creditors	12
Loans		(5,000)	(5,000)
		_________	_________
Net assets		286,191	216,243
		_________	_________

Share capital and reserves
Called-up share capital	13	6,347	6,347
Share premium account		17,955	17,955
Special reserve		-	5,411
Capital redemption reserve		10,207	10,207
Capital reserve	14	239,100	163,906
Revenue reserve		12,582	12,417
		_________	_________
Equity shareholders' funds		286,191	216,243
		_________	_________

Net asset value per Ordinary share (pence)	15	244.90p	179.43p
		_________	_________

The accompanying notes are an integral part of the financial statements.

STATEMENT OF CHANGES IN EQUITY

For the year ended 30 April 2017
		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 2016	6,347	17,955	5,411	10,207	163,906	12,417	216,243
Buy back of Ordinary shares for treasury	-	-	(5,411)	-	(1,464)	-	(6,875)
Return after taxation	-	-	-	-	76,658	4,810	81,468
Dividends paid (see note 8)	-	-	-	-	-	(4,645)	(4,645)
	______	______	______	______	______	______	______
Balance at 30 April 2017	6,347	17,955	-	10,207	239,100	12,582	286,191
	______	______	______	______	______	______	______


For the year ended 30 April 2016
		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 2015	6,347	17,955	11,218	10,207	211,550	12,121	269,398
Buy back of Ordinary shares for treasury	-	-	(5,807)	-	-	-	(5,807)
Return after taxation	-	-	-	-	(47,644)	4,988	(42,656)
Dividends paid (see note 8)	-	-	-	-	-	(4,692)	(4,692)
	______	______	______	______	______	______	______
Balance at 30 April 2016	6,347	17,955	5,411	10,207	163,906	12,417	216,243
	______	______	______	______	______	______	______

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.

STATEMENT OF CASHFLOWS

		Year ended	Year ended
		30 April 2017	30 April 2016
	Notes	£'000	£'000
Operating activities
Net return before finance costs and taxation		82,261	(41,976)
Adjustment for:
(Gains)/losses on investments		(80,202)	45,629
Currency losses		2,477	959
Decrease in accrued dividend income		244	619
Decrease/(increase) in other debtors		16	(7)
Increase/(decrease) in other creditors		160	(261)
Stock dividends included in investment income		(871)	(521)
Overseas withholding tax		(271)	(205)
		_______	_______
Net cash flow from operating activities		3,814	4,237

Investing activities
Purchases of investments		(40,574)	(16,549)
Sales of investments		48,026	23,078
		_______	_______
Net cash from investing activities		7,452	6,529

Financing activities
Equity dividends paid	8	(4,645)	(4,692)
Interest paid		(509)	(453)
Buy back of Ordinary shares for treasury	13	(6,821)	(5,807)
		_______	_______
Net cash used in financing activities		(11,975)	(10,952)
		_______	_______
Decrease in cash		(709)	(186)
		_______	_______
Analysis of changes in cash during the year
Opening balance		2,369	2,614
Effect of exchange rate fluctuations on cash held		59	(59)
Decrease in cash as above		(709)	(186)
		_______	_______
Closing balances		1,719	2,369
		_______	_______

The accompanying notes are an integral part of the financial statements.

NOTES TO THE FINANCIAL STATEMENTS:

For the year ended 30 April 2016

1.	Principal activity
	The Company is a closed-end investment company, registered in England & Wales No 02377879, with its Ordinary shares being listed on the London Stock Exchange.

2.	Accounting policies
	(a)	Basis of accounting
		The financial statements have been prepared in accordance with Financial Reporting Standard 102 and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued in November 2014 and updated in January 2017 with consequential amendments. The financial statements are prepared in sterling which is the functional currency of the Company and rounded to the nearest £'000. They have also been prepared on a going concern basis and 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.

	(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 Statement of Comprehensive Income and are ultimately recognised in the capital reserve.

	(c)	Income
		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 scrip 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 Statement of Comprehensive Income 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 Statement of Comprehensive Income 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 Statement of Comprehensive Income, 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)	Taxation
		The tax payable is based on the taxable profit for the year. Taxable profit differs from net profit as reported in the Statement of Comprehensive Income because it excludes items of income or expenditure that are taxable or deductible in other years and it further excludes items that are never taxable or deductible (see note 7 for a more detailed explanation). The Company has no liability for current tax.

		Deferred taxation is provided on all timing differences, that have originated but not reversed at the Statement of Financial Position 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 Statement of Financial Position 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)	Foreign currencies
		Assets and liabilities in foreign currencies are translated at the rates of exchange ruling on the Statement of Financial Position 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 Statement of Comprehensive Income and are then transferred to the capital reserve.

		The Company's investments and borrowings are made in a number of currencies, however the Board considers the Company's functional currency to be Sterling. In arriving at this conclusion, the Board considered that the shares of the Company are listed on the London Stock Exchange, it is regulated in the United Kingdom, principally having its shareholder base in the United Kingdom, pays dividends and expenses in Sterling. Consequently, the Board also considers the Company's presentational currency to be Sterling.

	(g)	Dividends payable
		Dividends are recognised from the date on which they are declared and approved by shareholders. Interim dividends are recognised when paid.

	(h)	Nature and purpose of reserves
		Called up share capital
		The Ordinary share capital on the Statement of Financial Position relates to the number of shares in issue and in treasury. Only when the shares are cancelled, either from treasury or directly, is a transfer made to the capital redemption reserve.

		Share premium account
		The balance classified as share premium includes the premium above nominal value from the proceeds on issue of any equity share capital comprising ordinary shares of 5p.

		Special reserve
		The special reserve arose following Court approval in 1999 to transfer £50m from the share premium account. This reserve was distributable and has been extinguished to fund share buy backs to be held in treasury by the Company.

		Capital redemption reserve
		The capital redemption reserve is used to record the amount equivalent to the nominal value of any of the Company's own shares purchased and cancelled in order to maintain the Company's capital.

		Capital reserve
		Gains or losses on disposal of investments and changes in fair values of investments are transferred to the capital reserve. The capital element of the management fee and relevant finance costs are charged to this reserve. Any associated tax relief is also credited to this reserve. During the year the costs of share buybacks to be held in treasury have also been deducted from this reserve as the special reserve has now been extinguished.

		Revenue reserve
		This reserve reflects all income and costs which are recognised in the revenue column of the Statement of Comprehensive Income. The revenue reserve represents the amount of the Company's reserves distributable by way of dividend.

		2017	2016
3.	Income	£'000	£'000
	Income from investments
	UK dividend income	877	1,434
	UK investment income	8	16
	Overseas dividends	5,164	5,029
	Scrip dividends	871	521
		_______	_______
		6,920	7,000
		_______	_______
	Other income
	Deposit interest	2	4
		_______	_______
	Total income	6,922	7,004
		_______	_______

		2017			2016
		Revenue	Capital	Total	Revenue	Capital	Total
4.	Management fee	£'000	£'000	£'000	£'000	£'000	£'000
	Management fee	810	810	1,620	829	829	1,658
		_______	_______	_______	_______	_______	_______

	Management and secretarial services are provided by Aberdeen Fund Managers Limited ("AFML").

	With effect from 1 July 2016, the Board and the Manager agreed a new rate for calculating the Company's management fees payable to AFML. The management fee is payable monthly in arrears based on an annual rate of 0.85%, previously 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 PLC and Aberdeen New India Investment Trust PLC are excluded from the calculation of the investment management fee. The total value of such commonly managed funds, on a bid price basis (basis on which management fee is calculated), at the year end was £47,681,000 (2016 - bid basis - £31,481,000).
	- the Company receives a rebate from the Manager for the amount of fees in excess of 0.85%, previously 1%, of net assets charged by the Manager for any commonly managed fund.

	The balance due to AFML at the year end, net of any rebates was £278,000 (2016 - £138,000).

	The agreement is terminable by either party on not less than twelve months' notice to the other.In the event of termination by the Company on less than the agreed notice period, compensation is payable to the Manager in lieu of the unexpired notice period.

		2017	2016
5.	Administrative expenses	£'000	£'000
	Promotional activities	158	158
	Directors' fees	131	136
	Safe custody fees	130	111
	Auditor's remuneration:
	- fees payable to the Company's auditor for the audit of the Company's annual accounts	15	15
	- fees payable to the Company's auditor for the review of the Company's half yearly accounts	4	4
	Other administration expenses	328	310
		_______	_______
		766	734
		_______	_______

	The Company has an agreement with AFML for the provision of promotional activities. The total fees payable during the year were £158,000 (2016 - £158,000) and the sum due to AFML at the year end was £53,000 (2016 - £13,000).

	No pension contributions were made in respect of any of the Directors.

	The Company does not have any employees.

		2017			2016
		Revenue	Capital	Total	Revenue	Capital	Total
6.	Interest payable and similar charges	£'000	£'000	£'000	£'000	£'000	£'000
	On bank loans	257	257	514	227	227	454
		_______	_______	_______	_______	_______	_______

				2017						2016
				Revenue		Capital		Total		Revenue		Capital		Total
7.	Taxation			£'000		£'000		£'000		£'000		£'000		£'000
	(a)	Analysis of charge for the year
		Overseas tax		339		-		339		278		-		278
		Overseas tax reclaimable		(60)		-		(60)		(52)		-		(52)
		Total tax charge for the year		279		-		279		226		-		226

	(b)	Factors affecting the tax charge for the year
		The tax assessed for the year is lower than the current standard rate of corporation tax in the UK.

			2017						2016
			Revenue		Capital		Total		Revenue		Capital		Total
			£'000		£'000		£'000		£'000		£'000		£'000
		Net return on ordinary activities before taxation	5,089		76,658		81,747		5,214		(47,644)		(42,430)
			_______		_______		______		_______		_______		______
		Net return on ordinary activities multiplied by effective standard rate of corporation tax in the UK of 19.92% (2016 - 20%)	1,014		15,270		16,284		1,043		(9,529)		(8,486)
		Effects of:
		Non-taxable UK dividend income	(253)		-		(253)		(290)		-		(290)
		Non-taxable overseas dividends	(1,103)		-		(1,103)		(1,066)		-		(1,066)
		Overseas tax suffered	279		-		279		226		-		226
		Surplus management expenses and loan relationship deficits not relieved	342		213		555		313		211		524
		Non-taxable exchange losses	-		493		493		-		192		192
		Non-taxable (gains)/losses on investments	-		(15,976)		(15,976)		-		9,126		9,126
			_______		_______		______		_______		_______		_______
		Total tax charge	279		-		279		226		-		226
			_______		_______		______		_______		_______		_______

	(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 £3,429,000 (2016 - £3,392,000) 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.

		2017	2016
8.	Dividends	£'000	£'000
	Amounts recognised as distributions to equity holders in the period:
	Final dividend for 2016 - 2.9p (2015 - 2.8p)	3,464	3,469
	Interim dividend for 2017 - 1.0p (2016 - 1.0p)	1,181	1,223
		_______	_______
		4,645	4,692
		_______	_______

	The proposed final dividend in respect of the year ended 30 April 2017 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 £4,810,000 (2016 - £4,988,000).

		2017	2016
		£'000	£'000
	Interim dividend for 2017 - 1.0p (2016 - 1.0p)	1,181	1,223
	Proposed final dividend for 2017 - 3.0p (2016 - 2.9p)	3,489	3,475
		_______	_______
		4,670	4,698
		_______	_______

	Subsequent to the year end the Company has purchased for treasury a further 565,000 Ordinary shares. Therefore the amounts reflected above for the cost of the proposed final dividend for 2017 are based on 116,297,098 Ordinary shares in issue, being the number of Ordinary shares in issue at the date of this Report.

		2017		2016
9.	Return per Ordinary share	£'000	p	£'000	p
	Revenue return	4,810	4.05	4,988	4.06
	Capital return	76,658	64.61	(47,644)	(38.78)
		_______	_______	_______	_______
	Total return	81,468	68.66	(42,656)	(34.72)
		_______	_______	_______	_______
	Weighted average number of Ordinary shares in issue ^A		118,657,145		122,842,641
	^A Calculated excluding shares held in treasury.		__________		__________

		Listed		Listed
		overseas		in UK		Total
10.	Investments	£'000		£'000		£'000
	Fair value through profit or loss:
	Opening book cost	119,708		30,165		149,873
	Opening fair value gains/(losses) on investments held	93,074		(3,038)		90,036
		_______		_______		_______
	Opening valuation	212,782		27,127		239,909
	Movements in the year:
	Purchases at cost	39,592		1,853		41,445
	Sales - proceeds	(40,271)		(7,755)		(48,026)
	Sales - realised gains/(losses)	14,743		(602)		14,141
	Current year fair value gains on investments held	55,442		10,619		66,061
		_______		_______		_______
	Closing valuation	282,288		31,242		313,530
		_______		_______		_______
	Closing book cost	133,772		23,661		157,433
	Closing fair value gains on investments held	148,516		7,581		156,097
		_______		_______		_______
		282,288		31,242		313,530
		_______		_______		_______

				2017		2016
				£'000		£'000
	Investments listed on an overseas investment exchange			282,288		212,782
	Investments listed on the UK investment exchange			31,242		27,127
				_______		_______
				313,530		239,909
				_______		_______

				2017		2016
	Gains/(losses) on investments held at fair value through profit or loss			£'000		£'000
	Realised gains on sales			14,141		4,701
	Increase/(decrease) in fair value gains on investments held			66,061		(50,330)
				_______		_______
				80,202		(45,629)
				_______		_______

	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 Statement of Comprehensive Income. The total costs were as follows:

			2017		2016
			£'000		£'000
	Purchases		46		32
	Sales		85		34
			_______		_______
			131		66
			_______		_______

		2017	2016
11.	Debtors	£'000	£'000
	Prepayments and accrued income	980	1,244
	Other loans and receivables	72	75
		_______	_______
		1,052	1,319
		_______	_______

			2017		2016
12.	Creditors		£'000	£'000
	Amounts falling due within one year:
	a)	Loans
		Foreign currency loans	22,024	19,486
		Sterling loan	2,500	2,500
			_______	_______
			24,524	21,986
			_______	_______

			2017	2016
	b)	Other	£'000	£'000
		Amounts due to brokers	117	63
		Other creditors	469	305
			_______	_______
			586	368
			_______	_______

			2017	2016
	Non-current creditors:		£'000	£'000
	Sterling loan		5,000	5,000
			_______		_______

	At the year end the Company's secured floating rate bank loans of HK$154,100,000 (2016 - HK$154,100,000), equivalent to £15,315,000 (2016 - £13,561,000), US$8,680,000 (2016 - US$8,680,000), equivalent to £6,709,000 (2016 - £5,925,000), £2,500,000 (2016 - £2,500,000), with a maturity date of 24 May 2017 (2016 - 25 May 2016), and fixed rate bank loan of £5,000,000 (2016 - £5,000,000), were drawn down from the £35,000,000 facility with The Royal Bank of Scotland at interest rates of 1.41%, 1.99%, 1.26% and 2.75% (2016 - 1.23%, 1.44%, 1.51% and 2.75%) respectively.

	As of the latest date prior to the signing of this Report the HK$154,100,000, US$8,680,000 and £2,500,000 loans had been drawn down to 23 June 2017 at interest rates of 2.02004%, 1.36339% and 1.25101% respectively.

	The terms of the bank loan with The Royal Bank of Scotland state that:
	- the 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 of any unlisted investment; (ii) the value in excess of 10% of total gross assets invested in the largest single security or asset; (iii) the value of any single security or asset (other than the largest security or asset referred to above) exceeds 5% of gross assets; (iv) the value in excess of 60% of total gross assets invested in the top twenty largest investments; (v) the extent to which the value of securities in collective investment schemes exceeds 30% of gross assets; and (vi) the extent to which the aggregated value of securities or assets in countries with a Standard and Poor's foreign sovereign debt rating lower than BBB exceeds 30% of gross assets.)
	- the facility, under which the loans are made, will expire on 7 October 2019.

	The Company has met all financial covenants throughout the period and up to the date of this Report.

		2017	2016
13.	Called-up share capital	£'000	£'000
	Allotted, called up and fully paid:
	116,862,098 (2016 - 120,519,010) Ordinary shares of 5p each	5,843	6,026

	Held in treasury:
	10,073,567 (2016 - 6,416,655) Ordinary shares of 5p each	504	321
		_______	_______
		6,347	6,347
		_______	_______

	During the year 3,656,912 (2016 - 3,814,000) Ordinary shares of 5p each were repurchased by the Company at a total cost, including transaction costs, of £6,875,000 (2016 - £5,807,000). All of the shares were placed in treasury. Shares held in treasury represent 8.62% of the Company's total issued share capital at 30 April 2017. Shares held in treasury do not carry a right to receive dividends.

	Subsequent to the year end the Company bought back for treasury a further 565,000 Ordinary shares for a total consideration of £1,238,000.

	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 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.

		2017	2016
14.	Capital reserve	£'000	£'000
	At 1 May 2016	163,906	211,550
	Movement in fair value gains/(losses)	80,202	(45,629)
	Foreign exchange movement	(2,477)	(959)
	Buy back of Ordinary shares for treasury	(1,464)	-
	Expenses allocated to capital	(1,067)	(1,056)
		_______	_______
	At 30 April 2017	239,100	163,906
		_______	_______

	The capital reserve includes investment holding gains amounting to £156,097,000 (2016 - £90,036,000), as disclosed in note 10.

15.	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:

		2017	2016
	Net assets attributable (£'000)	286,191	216,243
	Number of Ordinary shares in issue (excluding shares held in treasury)	116,862,098	120,519,010
	Net asset value per share (p)	244.90	179.43

16.	Financial instruments
	Risk management
	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 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 Board has delegated the risk management function to AFML under the terms of its management agreement with AFML (further details of which are included under note 4). 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.

	Risk management framework
	The directors of Aberdeen Fund Managers Limited collectively assume responsibility for AFML's obligations under the AIFMD including reviewing investment performance and monitoring the Company's risk profile during the year.

	AFML is a fully integrated member of the Aberdeen Group, which provides a variety of services and support to AFML in the conduct of its business activities, including in the oversight of the risk management framework for the Company. The AIFM has delegated the day to day administration of the investment policy to Aberdeen Asset Management 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). The AIFM has retained responsibility for monitoring and oversight of investment performance, product risk and regulatory and operational risk for the Company.

	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 ("SWORD").

	The Group's Internal Audit Department is independent of the Risk Division and reports directly to the Group CEO 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 Aberdeen, 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 the Company faces from its financial instruments are (i) market risk (comprising interest rate risk, currency risk and price risk), (ii) liquidity risk and (iii) credit risk.

	(i) 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.

	Management of the risk
	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.

	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. Current bank covenant guidelines state that the total borrowings will not exceed 25% of the adjusted net assets of the Company as defined in note 12.

	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 Statement of Financial Position date was as follows:

			Weighted average			Weighted
			period for which			average		Fixed	Floating
			rate is fixed			interest rate		rate	rate
	At 30 April 2017		Years			%		£'000	£'000
	Assets
	Sterling		-			-		-	1,652
	Taiwan Dollar		-			-		-	5
	US Dollar		-			-		-	56
	Vietnam Dong		-			-		-	6
								_______	_______
								-	1,719
								_______	_______

			Weighted average			Weighted
			period for which			average		Fixed	Floating
			rate is fixed			interest rate		rate	rate
			Years			%		£'000	£'000
	Liabilities
	Bank loan - £2,500,000		0.08			1.26		2,500	-
	Bank loan - £5,000,000		2.44			2.75		5,000	-
	Bank loan - HK$154,100,000		0.08			1.41		15,315	-
	Bank loan - US$8,680,000		0.08			1.99		6,709	-
								_______
								29,524	-
								_______

			Weighted average			Weighted
			period for which			average		Fixed	Floating
			rate is fixed			interest rate		rate	rate
	At 30 April 2016		Years			%		£'000	£'000
	Assets
	Indonesian Rupiah		-			-		-	15
	Sterling		-			0.20		-	2,351
	Taiwan Dollar		-			-		-	3
								_______	_______
								-	2,369
								_______	_______

			Weighted average			Weighted
			period for which			average		Fixed	Floating
			rate is fixed			interest rate		rate	rate
			Years			%		£'000	£'000
	Liabilities
	Bank loan - £2,500,000		0.08			1.51		2,500	-
	Bank loan - £5,000,000		3.44			2.75		5,000	-
	Bank loan - HK$154,000,000		0.08			1.23		13,561	-
	Bank loan - US$8,680,000		0.08			1.44		5,925	-
								_______
								26,986	-
								_______	_______

	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 loans are shown in note 12.
	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 Statement of Financial Position, therefore, can be significantly affected by movements in foreign exchange rates.

	Management of the risk
	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 12, 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 2017					30 April 2016
			Net		Total			Net	Total
			monetary		currency			monetary	currency
		Investments	assets		exposure		Investments	assets	exposure
		£'000	£'000		£'000		£'000	£'000	£'000
	Australian Dollar	9,173	-		9,173		12,040	-	12,040
	Hong Kong Dollar	57,463	(15,315)		42,148		48,161	(13,561)	34,600
	Indonesian Rupiah	11,839	-		11,839		6,196	15	6,211
	Malaysian Ringgit	5,726	-		5,726		4,772	-	4,772
	Philippine Peso	9,447	-		9,447		8,233	-	8,233
	Singapore Dollar	54,882	-		54,882		48,569	-	48,569
	South Korean Won	26,925	-		26,925		18,114	-	18,114
	Sri Lankan Rupee	5,469	-		5,469		6,175	-	6,175
	Sterling	70,406	(5,848)		64,558		51,801	(5,149)	46,652
	Taiwanese Dollar	16,387	5		16,392		13,164	3	13,167
	Thailand Baht	8,451	-		8,451		7,725	-	7,725
	US Dollar	33,956	(6,653)		27,303		13,911	(5,925)	7,986
	Vietnam Dong	3,406	6		3,412		1,048	-	1,048
		_______	_______		_______		_______	_______	_______
	Total	313,530	(27,805)		285,725		239,909	(24,617)	215,292
		_______	_______		_______		_______	_______	_______

	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.

								2017	2016
								£'000	£'000
	Australian Dollar							917	1,204
	Hong Kong Dollar							4,215	3,460
	Indonesian Rupiah							1,184	621
	Malaysian Ringgit							573	477
	Philippine Peso							945	823
	Singapore Dollar							5,488	4,857
	South Korean Won							2,693	1,811
	Sri Lankan Rupee							547	618
	Taiwanese Dollar							1,639	1,317
	Thailand Baht							845	773
	US Dollar							2,730	799
	Vietnam Dong							341	105
								_______	_______
								22,117	16,865
								_______	_______

	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.

	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. 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.

	Price risk sensitivity
	If market prices at the Statement of Financial Position 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 2017 would have increased/(decreased) by £31,353,000 (2016 - increased/(decreased) by £23,991,000) and equity reserves would have increased/(decreased) by the same amount.

	(ii) Liquidity risk
	This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities.

	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 a revolving multi-currency credit facility, which expires on 7 October 2019. 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 2017 are shown in note 12.

	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 2017 and 30 April 2016 the Company's floating rate bank loans, amounting to £24,524,000 and £21,986,000 respectively, were due for repayment or roll-over within one month of the year end.

	(iii) 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.

	Management of the risk
	Investment transactions are carried out with a large number of brokers, whose credit-standing is reviewed periodically by the 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 Statement of Financial Position, the maximum exposure to credit risk at 30 April was as follows:

				2017				2016
				Statement of				Statement of
				Financial		Maximum		Financial	Maximum
				Position		exposure		Position	exposure
				£'000		£'000		£'000	£'000
	Fixed assets
	Investments at fair value through profit or loss			313,530		313,530		239,909	239,909

	Current assets
	Loans and receivables			1,052		1,052		1,319	1,319
	Cash at bank and in hand			1,719		1,719		2,369	2,369
				_______		_______		_______	_______
				316,301		316,301		243,597	243,597
				_______		_______		_______	_______

	None of the Company's financial assets is past due or impaired.

	Fair values of financial assets and financial liabilities
	For the floating rate HK$ loan, the fair value of borrowings has been calculated at £15,311,000 as at 30 April 2017 (2016 - £13,561,000) compared to an accounts value in the financial statements of £15,315,000 (2016 - £13,561,000) (note 12). For the floating rate US$ loan, the fair value of borrowings has been calculated at £6,710,000 as at 30 April 2017 (2016 - £5,926,000) compared to an accounts value in the financial statements of £6,709,000 (2016- £5,925,000) (note 12). For the floating rate GBP loan, the fair value of borrowings has been calculated at £2,500,000 as at 30 April 2017 (2016 - £2,500,000) compared to an accounts value in the financial statements of £2,500,000 (2016 - £2,500,000) (note 12). For the fixed rate GBP loan, the fair value of borrowings has been calculated at £5,163,000 as at 30 April 2017 (2016 - £5,167,000) compared to an accounts value in the financial statements £5,000,000 (2016 - £5,000,000) (note 12). 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 Statement of Financial Position at fair value.

17.	Fair value hierarchy
	FRS 102 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 classifications:

	Level 1: unadjusted quoted prices in an active market for identical assets or liabilities that the entity can access at the measurement date.
	Level 2: inputs other than quoted prices included within Level 1 that are observable (ie developed using market data) for the asset or liability, either directly or undirectly.
	Level 3: inputs are unobservable (ie for which market data is unavailable) for the asset or liability.

	The financial assets and liabilities measured at fair value in the Statement of Financial Position are grouped into the fair value hierarchy at the reporting date as follows:

		Level 1	Level 2	Level 3	Total
	As at 30 April 2017	£'000	£'000	£'000	£'000
	Financial assets at fair value through profit or loss
	Quoted equities	263,011	-	-	263,011
	Collective investment schemes	-	50,519	-	50,519
	Total fair value	263,011	50,519	-	313,530

		Level 1	Level 2	Level 3	Total
	As at 30 April 2016	£'000	£'000	£'000	£'000
	Financial assets at fair value through profit or loss
	Quoted equities	215,235	-	-	215,235
	Collective investment schemes	-	24,674	-	24,674
	Total fair value	215,235	24,674	-	239,909

	Quoted Equities
	The fair value of the Company's investments in quoted equities has been determined by reference to their quoted bid prices at the reporting date. Quoted equities included in Fair Value Level 1 are actively traded on recognised stock exchanges.

	Collective Investment Schemes
	The fair value of the Company's investments in collective investment schemes has been determined by reference to their quoted net asset values at the reporting date and hence are categorised in Fair Value Level 2.

18.	Related party transactions and transactions with the Manager
	Fees payable during the period to the Directors and their interests in shares of the Company will be disclosed within the Directors' Remuneration Report.

	Mr H Young is a director of Aberdeen Asset Management PLC, of which Aberdeen Fund Managers Limited ("AFML") is a subsidiary. Management, promotional activities and secretarial and administration services are provided to the Company by AFML. Details of transactions during the year and balances outstanding at the year end disclosed in notes 4 and 5.

Additional Notes to the Annual Financial Report

The Annual General Meeting will be held at 12 noon on 30 August 2017 at Bow Bells House, 1 Bread Street, London EC4M 9HH.

If approved at the Annual General Meeting, the final dividend of 3.0p per share will be paid on 1 September 2017 to holders of Ordinary shares on the register at the close of business on 4 August 2017. The relevant ex-dividend date is 3 August 2017.

The Annual Financial Report Announcement is not the Company's statutory accounts. The above results for the year ended 30 April 2017 have been agreed with the auditor and are an abridged version of the Company's full accounts, which have been approved and audited with an unqualified report. The 2016 and 2017 statutory accounts received unqualified reports from the Company's auditor and did not include any reference to matters to which the auditor 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 2016 is derived from the statutory accounts for 2016 which have been delivered to the Registrar of Companies. The 2017 accounts will be filed with the Registrar of Companies in due course.

The Annual Report and Accounts will be posted to shareholders in July 2017. Copies will be available 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*.

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.

By order of the Board

Aberdeen Asset Management PLC

Company Secretary

19 June 2017

* 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.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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