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

 

 

 

 

 

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.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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