Half-year Report

RNS Number : 7714Z

Aberdeen New Dawn Invest Trust PLC

19 December 2017

 

ABERDEEN NEW DAWN INVESTMENT TRUST PLC

HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 OCTOBER 2017

Legal Entity Identifier:  5493002K00AHWEME3J36

INVESTMENT OBJECTIVE

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

BENCHMARK

MSCI All Countries Asia Pacific ex Japan Index (Sterling adjusted)

FINANCIAL HIGHLIGHTS

	31 October 2017	30 April 2017	% change
Total assets A (£'000)	339,270	315,715	+7.5
Total equity shareholders' funds (£'000)	310,360	286,191	+8.4
Share price (mid-market) B	234.8p	212.0p	+10.8
Net asset value per share (including current year income) B	268.2p	244.9p	+9.5
Net asset value per share (excluding current year income) B	265.2p	241.8p	+9.7
Discount to net asset value (including current year income) B	12.5%	13.4%
Discount to net asset value (excluding current year income) B	11.5%	12.3%
MSCI AC Asia Pacific ex Japan Index (currency adjusted) B	776.5	703.7	+10.3
Interim dividend per share C	1.0p	1.0p	-
Ongoing charges ratio D	0.86%	0.91%
A           Total assets which includes current year income, less current liabilities, before deducting any prior charges.
B           Percentage change figures are on a capital return basis.
C           Interim dividend relating to the first six months of the financial year.
D           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. The ratio for 31 October 2017 is based on forecast ongoing charges for the year ending 30 April 2018.

PERFORMANCE (TOTAL RETURN)

	Six months ended	Year ended
	31 October 2017	30 April 2017
Share price	+12.2%	+38.8%
Net asset value	+10.8%	+39.0%
MSCI AC Asia Pacific ex Japan Index (currency adjusted)	+12.5%	+36.4%

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.

INTERIM BOARD REPORT - CHAIRMAN'S STATEMENT

Results and Dividend

Over the six month period ended 31 October 2017, the Company's net asset value ("NAV") rose by 10.8% on a total-return basis, marginally behind the benchmark MSCI All Countries Asia Pacific ex Japan Index's total return of 12.5%. The share price total return was 12.2% and the share price at the end of the period was 234.8p, which represented a discount of 11.5% to the NAV per share (excluding current year income).                                                                                            

The Board declares an unchanged interim dividend for the year of 1.0p per Ordinary share, which will be paid on 26 January 2018 to shareholders on the register on 5 January 2018 (the relevant ex-dividend date being 4 January 2018). Shareholders should be aware that, as in previous years, the level of future dividends will depend on the future income of the portfolio.

Overview

Asian equities rose steadily during the period, despite recurring tension on the Korean peninsula and policy uncertainty elsewhere in the world. Improved corporate earnings, backed by stronger economic growth, led to buoyant markets. In addition, benign inflation and a recovery in global trade bolstered sentiment further, despite the major central banks' plans to reduce monetary stimulus.

China was among the region's best performing markets, despite policy-tightening measures aimed at tackling high debt levels and tighter controls over capital outflows following Moody's sovereign debt downgrade. Upbeat economic data, the decision to include A-shares in MSCI's influential indices and a sustained rise in domestic internet stocks provided support for the mainland market. The Company benefited from its holding in the Aberdeen Global - China A-Share Fund, which is well positioned to capitalise on rising domestic consumption and positive structural trends in the economy.

The A-share fund's underlying holdings, such as China's biggest industrial laser equipment maker Han's Laser Technology, and leading distiller Kweichow Moutai have performed well, delivering healthy growth on robust fundamentals. Notwithstanding  this, the Company's relative performance suffered due to its limited overall exposure to China, particularly the internet sector. Your Manager remains circumspect of the issues surrounding Chinese companies, including corporate governance and opaque ownership structures. However a position was initiated in Tencent Holdings towards the end of the period. This reflects a growing conviction in, and comfort with, the internet giant's variable interest entity structure and its fair treatment of minority shareholders, as well as the sustainability of its earnings growth.

Meanwhile, the Company's holdings in other technology stocks performed well. Samsung Electronics reported another solid quarter of profits which were underpinned by the upswing in the semiconductor cycle.  With its steady cash flow generation, the Korean technology giant continues to invest in the business and improve shareholder returns through share buybacks and dividends. In Singapore, contract manufacturer Venture Corp's strong performance was driven by its focus on value creation through deepening its engineering design and research development capabilities.

Elsewhere, the Company benefited from its underweight exposure to Australia, which lagged its regional peers, as local banks were affected by concerns about government levies and increased regulatory scrutiny. The Company's holdings in miners Rio Tinto and BHP Billiton performed well underpinned by rising iron ore prices and robust demand from China.

The portfolio's long-held positions in Singapore remained resilient amid better macroeconomic indicators and strong corporate earnings. The Singaporean bank holdings continued to recover from their previous falls as asset quality stabilises and loan growth and fee income improves. Meanwhile, City Developments benefited from the upbeat sentiment in the property sector, as well as news of its potential takeover of Millennium & Copthorne Hotels.

In addition to the initiation of a position in Tencent Holdings, your Manager introduced Hong Kong-headquartered China Resources Land and Indonesian-listed Indocement to the portfolio. China Resources Land is a property developer with superior profitability and a substantial land bank. It also has an attractive property investment business that provides strong recurring income. Indocement is a leading cement company in Indonesia and a proxy for both government spending on infrastructure and growth in the property sector.

Gearing and Share Buy Backs

The Company has a £35 million loan facility. At the end of the period, a Sterling equivalent of £28.9 million was drawn down, mostly denominated in US and Hong Kong Dollars. Gearing (net of cash) was 8.8% as at 31 October 2017 compared to 9.7% at the start of the period.

In line with many other investment trusts, the Company has continued to buy 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 interest of shareholders and we review its operation at each Board meeting. During the period, the Company bought back 1.1 million shares to be held in treasury, representing 0.96% of the shares in issue at the beginning of the period. These shares can only be issued to the market if and when the shares are trading at a premium to the NAV.

Manager

The Board notes the recent completion of the merger between Aberdeen Asset Management PLC, which is the parent company of the Manager, and Standard Life PLC. The Board will continue to monitor developments closely to ensure that satisfactory arrangements remain in place for the continued effective management of the Company.

Outlook

Companies in the Asia Pacific region should continue to benefit from improving growth prospects and favourable external conditions. Corporate earnings have been robust amid a synchronised worldwide recovery underpinned by largely encouraging macro-economic indicators, including benign inflation, healthy trade flows and strengthening foreign exchange reserves. Global monetary policies remain supportive, as major central banks adjust monetary policy slowly to avoid shocks to the system and a sharp contraction in liquidity. In addition, equity valuations appear reasonable providing an overall positive outlook for the holdings in the portfolio.

The Board believes that the case for investing in the Asia Pacific region remains compelling and that the region's long-term prospects lie in its resilient macro-economic environment capable of withstanding future challenges. The Manager continues to have confidence in the Company's underlying holdings, which have been carefully selected for their skilled management teams, strong balance sheets and potential to outperform over the longer term.

David Shearer

Chairman

18 December 2017

INTERIM BOARD REPORT - OTHER MATTERS

Directors' Responsibility Statement

The Directors are responsible for preparing the Half-Yearly Financial Report in accordance with applicable laws and regulations. The Directors confirm that to the best of their knowledge:

-      the condensed set of financial statements within the Half-Yearly Financial Report has been prepared in accordance with Financial Reporting Standard 104 'Interim Financial Reporting';

-      the Interim Board Report (constituting the Interim Management Report) includes a fair review of the information required by rule 4.2.7R of the UK Listing Authority's Disclosure Guidance and Transparency Rules (being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year) and 4.2.8R (being related party transactions that have taken place during the first six months of the financial year and that have materially affected the financial position of the Company during that period, and any changes in the related party transactions described in the last Annual Report that could do so).

Principal Risks and Uncertainties

The Board regularly reviews the principal risks and uncertainties faced by the Company together with the mitigating actions it has established to manage the risks. These are set out within the Strategic Report contained within the Annual Report for the year ended 30 April 2017 and comprise the following risk headings:

-      Investment strategy and objectives

-      Investment management

-      Income/dividends

-      Financial

-      Gearing

-      Regulatory

-      Operational

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.

The Company's principal risks and uncertainties have not changed materially since the date of the Annual Report and are not expected to change materially for the remaining six months of the Company's financial year.

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 in preparing the financial statements.

On behalf of the Board

David Shearer

Chairman

18 December 2017

INVESTMENT PORTFOLIO
As at 31 October 2017
		Valuation	Total assets
Company	Country	£'000	%
Aberdeen Global - Indian Equity Fund A	India	38,273	11.3
Aberdeen Global - China A Share Equity Fund A	China	20,275	6.0
Samsung Electronics Pref	South Korea	17,775	5.3
Jardine Strategic Holdings	Hong Kong	15,026	4.4
Oversea-Chinese Banking Corporation	Singapore	14,014	4.1
Taiwan Semiconductor Manufacturing Company	Taiwan	13,355	3.9
Ayala Land	Philippines	10,876	3.2
AIA Group	Hong Kong	10,710	3.2
City Developments	Singapore	10,568	3.1
Bank Central Asia	Indonesia	9,120	2.7
Top ten investments		159,992	47.2
Rio Tinto{B}	Australia	8,593	2.5
Siam Cement (Foreign)	Thailand	7,481	2.2
Singapore Telecommunication	Singapore	7,358	2.2
HSBC Holdings	Hong Kong	7,333	2.1
CSL	Australia	6,879	2.0
China Mobile	China	6,688	2.0
Keppel Corporation	Singapore	6,321	1.9
Hong Kong Exchanges & Clearing	Hong Kong	6,151	1.8
Aberdeen New India Inv. Trust AB	India	6,102	1.8
BHP Billiton B	Australia	5,857	1.7
Top twenty investments		228,755	67.4
Naver Corporation	South Korea	5,851	1.7
Standard Chartered B	United Kingdom	5,751	1.7
Venture Corp	Singapore	5,382	1.6
Swire Pacific B Shares	Hong Kong	5,288	1.6
Singapore Technologies Engineering	Singapore	4,934	1.4
Swire Properties	Hong Kong	4,824	1.4
Yum China Holdings	China	4,800	1.4
M.P. Evans Group B	United Kingdom	4,691	1.4
Taiwan Mobile	Taiwan	4,421	1.3
DBS Group Holdings	Singapore	4,268	1.3
Top thirty investments		278,965	82.2
United Overseas Bank	Singapore	4,018	1.2
Indocement Tunggal Prakarsa	Indonesia	3,989	1.2
Anhui Conch Cement H shares	China	3,538	1.0
Vietnam Dairy Products	Vietnam	3,392	1.0
MTR Corporation	Hong Kong	3,386	1.0
CIMB Group Holdings	Malaysia	3,381	1.0
Tencent Holdings	China	3,380	1.0
Unilever Indonesia	Indonesia	3,369	1.0
ASM Pacific Technology	Hong Kong	3,314	1.0
John Keells Holdings	Sri Lanka	2,956	0.9
Top forty investments		313,688	92.5
E-Mart	South Korea	2,843	0.8
Public Bank Berhad	Malaysia	2,627	0.8
Aberdeen Asian Smaller Companies Inv. Trust AB	Other Asia	2,571	0.8
Amorepacific Corporation C	South Korea	2,412	0.7
Hang Lung Group	Hong Kong	2,323	0.7
Raffles Medical	Singapore	1,756	0.5
China Resources Land	China	1,688	0.5
Astra International	Indonesia	1,655	0.5
Hang Lung Properties	Hong Kong	1,512	0.4
Bangkok Dusit Medical Services (Foreign)	Thailand	1,497	0.4
Top fifty investments		334,572	98.6
Kerry Logistics Network	Hong Kong	1,340	0.4
DFCC Bank	Sri Lanka	1,125	0.3
Aitken Spence & Co.	Sri Lanka	495	0.2
China Literature	China	1	-
Total investments		337,533	99.5
Net current assets D		1,737	0.5
Total assets E		339,270	100.0
A           Managed by the Manager of the Company.
B           London Stock Exchange listing.
C           Holding merges two equity holdings with value splits as follows: Ordinary shares £325,000 and Preference shares £2,087,000.
D           Excluding bank loans of £23,910,000.
E           Represents Total Assets as per the Condensed Statement of Financial Position less current liabilities (before deducting bank loans).
Note: Unless otherwise stated, foreign stock is held and all investments are equity holdings.

INDEPENDENT REVIEW REPORT TO ABERDEEN NEW DAWN INVESTMENT TRUST PLC

Conclusion

We have been engaged by the Company to review the condensed set of financial statements in the Half-Yearly Financial Report for the six months ended 31 October 2017 which comprises the Condensed Statement of Comprehensive Income, Condensed Statement of Financial Position, Condensed Statement of Changes in Equity and Condensed Statement of Cash-flows and the related explanatory notes. 

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the Half-Yearly Financial Report for the six months ended 31 October 2017 is not prepared, in all material respects, in accordance with FRS 104 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules (the "DTR") of the UK's Financial Conduct Authority (the "UK FCA").   

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the UK.  A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. We read the other information contained in the Half-Yearly Financial Report and consider whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. 

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit.  Accordingly, we do not express an audit opinion. 

Directors' Responsibilities

The Half-Yearly Financial Report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the Half-Yearly Financial Report in accordance with the DTR of the UK FCA. 

As disclosed in note 1, the annual financial statements of the Company are prepared in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.  The Directors are responsible for preparing the condensed set of financial statements included in the Half-Yearly Financial Report in accordance with FRS 104 'Interim Financial Reporting'.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the Half-Yearly Financial Report based on our review. 

The Purpose of Our Review Work and to Whom We Owe Our Responsibilities

This report is made solely to the Company in accordance with the terms of our engagement to assist the Company in meeting the requirements of the DTR of the UK FCA.  Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose.  To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached. 

Philip Merchant

for and on behalf of KPMG LLP

Chartered Accountants

Edinburgh

18 December 2017

CONDENSED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
		Six months ended			Six months ended
		31 October 2017			31 October 2016
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Gains on investments		-	26,743	26,743	-	62,907	62,907
Income	2	4,587	-	4,587	4,166	-	4,166
Management fee		(447)	(447)	(894)	(402)	(402)	(804)
Administrative expenses		(400)	-	(400)	(401)	-	(401)
Exchange gains/(losses)	6	-	608	608	-	(3,892)	(3,892)
		_______	_______	_______	_______	_______	_______
Net return before finance costs and taxation		3,740	26,904	30,644	3,363	58,613	61,976
Finance costs		(140)	(140)	(280)	(119)	(119)	(238)
		_______	_______	_______	_______	_______	_______
Net return before taxation		3,600	26,764	30,364	3,244	58,494	61,738
Taxation	3	(193)	-	(193)	(136)	-	(136)
		_______	_______	_______	_______	_______	_______
Net return attributable to equity shareholders		3,407	26,764	30,171	3,108	58,494	61,602
		_______	_______	_______	_______	_______	_______
Return per Ordinary share (pence)	5	2.93	23.03	25.96	2.60	48.93	51.53
		_______	_______	_______	_______	_______	_______
The total column of the Condensed Statement of Comprehensive Income represents the profit and loss account of the Company.
All revenue and capital items in the above statement derive from continuing operations.
The accompanying notes are an integral part of these condensed set of interim financial statements.

CONDENSED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
		As at	As at
		31 October 2017	30 April 2017
	Notes	£'000	£'000
Non-current assets
Investments at fair value through profit or loss	9	337,533	313,530
		__________	__________
Current assets
Debtors		384	1,052
Cash at bank and in hand		1,644	1,719
		__________	__________
		2,028	2,771
		__________	__________
Creditors: amounts falling due within one year
Bank loans		(23,910)	(24,524)
Other creditors		(291)	(586)
		__________	__________
		(24,201)	(25,110)
		__________	__________
Net current liabilities		(22,173)	(22,339)
		__________	__________
Total assets less current liabilities		315,360	291,191
Creditors: amounts falling due after more than one year
Bank loans		(5,000)	(5,000)
		__________	__________
Net assets		310,360	286,191
		__________	__________
Share capital and reserves
Called-up share capital		6,347	6,347
Share premium account		17,955	17,955
Capital redemption reserve		10,207	10,207
Capital reserve	6	263,348	239,100
Revenue reserve		12,503	12,582
		__________	__________
Equity shareholders' funds		310,360	286,191
		__________	__________
Net asset value per Ordinary share (pence)	7	268.15	244.90
		__________	__________
The accompanying notes are an integral part of these condensed set of interim financial statements.

CONDENSED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
Six months ended 31 October 2017
				Share	Capital
			Share	premium	redemption	Capital	Revenue
			capital	account	reserve	reserve	reserve	Total
	Notes		£'000	£'000	£'000	£'000	£'000	£'000
Balance at 30 April 2017			6,347	17,955	10,207	239,100	12,582	286,191
Buyback of Ordinary shares for treasury			-	-	-	(2,516)	-	(2,516)
Net return attributable to equity shareholders			-	-	-	26,764	3,407	30,171
Dividend paid	4		-	-	-	-	(3,486)	(3,486)
			_____	______	______	_______	______	______
Balance at 31 October 2017			6,347	17,955	10,207	263,348	12,503	310,360
			_____	______	______	_______	______	______
Six months ended 31 October 2016
			Share		Capital
		Share	premium	Special	redemption	Capital	Revenue
		capital	account	reserve	reserve	reserve	reserve	Total
	Notes	£'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
Buyback of Ordinary shares for treasury		-	-	(3,484)	-	-	-	(3,484)
Net return attributable to equity shareholders		-	-	-	-	58,494	3,108	61,602
Dividend paid	4	-	-	-	-	-	(3,464)	(3,464)
		_____	______	______	_______	______	______	_______
Balance at 31 October 2016		6,347	17,955	1,927	10,207	222,400	12,061	270,897
		_____	______	______	_______	______	______	_______
The special reserve was extinguished during the year ended 30 April 2017 funding the buyback of Ordinary shares for treasury by the Company.
The accompanying notes are an integral part of these condensed set of interim financial statements.

CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED)
		Six months ended	Six months ended
		31 October 2017	31 October 2016
	Notes	£'000	£'000
Operating activities
Net return before finance costs and taxation		30,644	61,976
Adjustment for:
Gains on investments		(26,743)	(62,907)
Currency (gains)/losses		(608)	3,892
Decrease in accrued dividend income		755	1,097
Increase in other debtors		(16)	(13)
(Decrease)/increase in creditors		(174)	201
Scrip dividends included in investment income		(269)	(522)
Overseas withholding tax		(265)	(217)
		__________	__________
Net cash flow from operating activities		3,324	3,507
Investing activities
Purchases of investments		(20,115)	(15,431)
Sales of investments		23,125	19,687
		__________	__________
Net cash from investing activities		3,010	4,256
Financing activities
Interest paid		(285)	(232)
Equity dividends paid	4	(3,486)	(3,464)
Buyback of Ordinary shares for treasury		(2,633)	(3,527)
		__________	__________
Net cash used in financing activities		(6,404)	(7,223)
		__________	__________
(Decrease)/increase in cash		(70)	540
		__________	__________
Analysis of changes in cash during the year
Opening balances		1,719	2,369
Effect of exchange rate fluctuations on cash held		(5)	7
(Decrease)/increase in cash as above		(70)	540
		__________	__________
Closing balances		1,644	2,916
		__________	__________
The accompanying notes are an integral part of these condensed set of interim financial statements.

NOTES TO THE FINANCIALSTATEMENTS

For the period ended 31 October 2017

1.	Accounting policies
	Basis of accounting
	The condensed financial statements have been prepared in accordance with Financial Reporting Standard 104 'Interim Financial Reporting' and with the Statement of Recommended Practice for 'Financial Statements of Investment Trust Companies and Venture Capital Trusts'. 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 interim financial statements have been prepared using the same accounting policies as the preceding annual financial statements.

		Six months ended	Six months ended
		31 October 2017	31 October 2016
2.	Income	£'000	£'000
	Income from investments
	UK dividend income	541	434
	UK unfranked investment income	-	8
	Overseas dividends	3,777	3,200
	Scrip dividends	269	522
		__________	__________
		4,587	4,164
		__________	__________
	Other income
	Deposit interest	-	2
		__________	__________
	Total income	4,587	4,166
		__________	__________

3.	Taxation
	The taxation charge for the period represents withholding tax suffered on overseas dividend income.

4.	Dividends
	Ordinary dividends on equity shares deducted from reserves are analysed below:
		Six months ended	Six months ended
		31 October 2017	31 October 2016
		£'000	£'000
	2017 final dividend - 3.00p (2016 - 2.90p)	3,486	3,464
		__________	__________
	An interim dividend of 1.00p per share will be paid on 26 January 2018 to shareholders on the register on 5 January 2018. The ex-dividend date will be 4 January 2018.

		Six months ended	Six months ended
		31 October 2017	31 October 2016
5.	Return per Ordinary share	p	p
	Revenue return	2.93	2.60
	Capital return	23.03	48.93
		__________	__________
	Total return	25.96	51.53
		__________	__________
	The figures above are based on the following attributable assets:
		£'000	£'000
	Revenue return	3,407	3,108
	Capital return	26,764	58,494
		__________	__________
	Total return	30,171	61,602
		__________	__________
	Weighted average number of Ordinary shares in issue	116,205,250	119,540,018
		__________	__________

6.	Capital reserve
	The capital reserve reflected in the Condensed Statement of Financial Position at 31 October 2017 includes gains of £169,009,000 (30 April 2017 - gains of £156,097,000) which relate to the revaluation of investments held at the reporting date.
	During the period the Company had exchange gains of £608,000 (2016 - losses of £3,892,000), of which £708,000 (2016 - losses of £3,244,000) were attributable to foreign exchange movements on bank loan drawdowns.

		As at	As at
7.	Net asset value per share	31 October 2017	30 April 2017
	Including current year income
	Net assets per Condensed Statement of Financial Position (£'000)	310,360	286,191
	Number of Ordinary shares in issue A	115,742,098	116,862,098
	Net asset value per Ordinary share (p)	268.15	244.90
		__________	__________
	A Excluding shares held for treasury
	Excluding current year income
	Net assets per Condensed Statement of Financial Position (£'000)	310,360	286,191
	Less: current year income per Condensed Statement of Comprehensive Income (£'000)	(3,407)	(4,810)
	Add: interim dividend paid	-	1,181
		__________	__________
	Net assets excluding current year income	306,953	282,562
	Number of Ordinary shares in issue A	115,742,098	116,862,098
	Net asset value per Ordinary share (p)	265.20	241.79
		__________	__________
	A Excluding shares held for treasury

8.	Transaction costs
	During the six months ended 31 October 2017 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 on investments in the Condensed Statement of Comprehensive Income. The total costs were as follows:
		Six months ended	Six months ended
		31 October 2017	31 October 2016
		£'000	£'000
	Purchases	20	26
	Sales	34	39
		__________	__________
		54	65
		__________	__________

9.	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 indirectly.
	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 Condensed 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 31 October 2017	£'000	£'000	£'000	£'000
	Financial assets at fair value through profit or loss
	Quoted equities	278,985	-	-	278,985
	Collective investment schemes	-	58,548	-	58,548
		________	________	________	________
	Net fair value	278,985	58,548	-	337,533
		________	________	________	________
		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
		________	________	________	________
	Net fair value	263,011	50,519	-	313,530
		________	________	________	________
	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.

10.	Related party transactions and transactions with the Manager
	Mr Young is a director of Aberdeen Asset Management Asia Limited, which has been delegated authority for the day to day administration of the investment policy from Aberdeen Fund Managers Limited ("AFML") which is a subsidiary of Standard Life Aberdeen PLC. Management, promotional activities and secretarial and administration services are provided to the Company by AFML.
	The management fee is payable monthly in arrears based on an annual amount of 0.85% of the net asset value of the Company valued monthly, with the following provisions for commonly managed funds from which the Manager receives a management fee:
	the Company's investments in Aberdeen Global - Indian Equity Fund, Aberdeen Asian Smaller Companies Investment Trust and Aberdeen New India Investment Trust are excluded from the calculation of the investment management fee. The total value of such commonly managed funds at the period end was £46,946,000 (2016 - £39,945,000).
	the Company receives a rebate from the Manager for the amount of fees in excess of 0.85%, of net assets charged by the Manager for any applicable commonly managed fund.
	During the period £894,000 (2016 - £804,000) of management fees were payable, with a balance of £157,000 (2016 - £271,000) being due to AFML at the period end. Management fees are charged 50% to revenue and 50% to capital.
	The promotional activities fee is based on a current annual amount of £158,000 (2016 - £158,000), payable quarterly in arrears. During the period £79,000 (2016 - £79,000) of fees were payable, with a balance of £13,000 (2016 - £53,000 being due to AFML at the period end.

11.	Segmental information
	The Company is engaged in a single segment of business, which is to invest in equity securities. All of the Company's activities are interrelated, and each activity is dependent on the other. Accordingly, all significant operating decisions are based on the Company as one segment.

12.	The financial information contained in this Half-Yearly Report does not constitute statutory accounts as defined in Sections 434-436 of the Companies Act 2006. The financial information for the six months ended 31 October 2017 and 31 October 2016 has not been audited by the Company's external auditor.
	The financial information for the year ended 30 April 2017 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies. The report of the Independent Auditor on those accounts contained no qualification or statement under Section 498 (2), (3) or (4) of the Companies Act 2006.

13.	This Half-Yearly Financial Report was approved by the Board on 18 December 2017.

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

By order of the Board

Aberdeen Asset Management PLC

Company Secretary

18 December 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.

 

END

 

 

IR GCBDDCDBBGRC