Half-year Report

RNS Number : 0366L

Aberdeen New Dawn Invest Trust PLC

20 December 2018

 

ABERDEEN NEW DAWN INVESTMENT TRUST PLC

HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 OCTOBER 2018

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 2018	30 April 2018	% change
Total assets including current year incomeA	301,419,000	339,874,000	-11.3
Total equity shareholders' funds	268,242,000	311,816,000	-14.0
Share price (mid-market)B	204.0p	236.0p	-13.6
Net asset value per share (including current year income)B	238.1p	272.4p	-12.6
Net asset value per share (excluding current year income)BC	235.1p	268.9p	-12.6
Discount to net asset value (including current year income)B	14.3%	13.4%
Discount to net asset value (excluding current year income)BC	13.2%	12.2%
MSCI AC Asia Pacific ex Japan Index (currency adjusted)B	690.8	773.1	-10.6
Interim dividend per shareD	1.0p	1.0p	-
Ongoing charges ratioBE	0.87%	0.84%
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       Considered to be an Alternative Performance Measure.
D       Interim dividend relating to the first six months of the financial year.
E      Considered to be an Alternative Performance Measure. 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 2018 is based on forecast ongoing charges for the year ending 30 April 2019.

PERFORMANCE (TOTAL RETURN)

	Six months ended	Year ended
	31 October 2018	30 April 2018
Share priceA	-12.3%	+13.3%
Net asset valueA	-11.5%	+12.9%
MSCI AC Asia Pacific ex Japan Index (currency adjusted)	-8.8%	+13.0%
A                      Considered to be an Alternative Performance Measure.

For further information, please contact:

Scott Anderson

Aberdeen Standard Investments                0131 222 1863

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

In the six months ending 31 October 2018, the Company's net asset value ("NAV") declined by 11.5% on a total return basis, compared with the benchmark MSCI All Countries Asia Pacific ex Japan Index which fell by 8.8%. The share price total return was -12.3% and the share price at the end of the period was 204.0p, which represented a discount of 13.2% 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 25 January 2019 to shareholders on the register on 4 January 2019 (the relevant ex-dividend date being 3 January 2019). Shareholders should be aware that, as in previous years, the level of future dividends will depend on the  income from the portfolio.

Overview

Asian equity markets fell during the period under review, largely due to a further deterioration of trade relations between the US and China. A strong US Dollar also had a negative impact on some emerging market currencies, although in Asia they generally fared better than their counterparts. The exceptions were the Indonesian Rupiah and Indian Rupee which succumbed to concerns over those countries' widening current account deficits. As large importers of oil, both economies were affected negatively by the higher oil price.

Unsurprisingly, China was one of the worst performing markets owing to the anticipated slowdown in economic growth following the imposition of US trade tariffs.  The Government responded by introducing measures to support growth and liquidity. Against such a backdrop, the Company's portfolio benefited from a lower exposure to the mainland relative to the benchmark.

Stock selection in China had a positive impact on the Company's performance. In particular, the holdings in financial group Ping An Insurance and property developer China Resources Land benefited from robust profit growth. The Company's exposure to China has increased despite persistent concerns over corporate governance.  With the application of extensive due diligence, your Manager has been able to identify a number of quality companies across a range of sectors, ranging from hotels to healthcare. A key example is Wuxi Biologics, a leading contract research organisation for biologics.

A more uncertain outlook for economic growth in the region had a negative impact on the returns for the financial sector and, more specifically, on the Company's larger bank holdings. Standard Chartered's share price fell as investors questioned its reliance on China's trade flows and its growth prospects as a result of trade tensions. Shares in the recently purchased Techcombank fell in line with the Vietnamese market despite reporting good growth in profits. Elsewhere, regulatory measures continued to affect the Australian banks which experienced a strong rebound following the sell-off earlier in the year in response to increased regulatory scrutiny into financial misconduct. While the Company benefited in the previous financial year from not holding any Australian banks, this detracted from performance during the period under review.

Additionally, the performance of the Singapore market, a country key to your Company's portfolio, had an adverse impact on performance. The government intervened to cool the domestic property market, and the severity of its measures caught many by surprise. This had an impact on the Company's holding in the real estate company City Developments.

The market volatility during the period provided your Manager with opportunities to acquire a number of new holdings at attractive valuations.  In particular, your Manager's willingness to look beyond traditional markets produced new investment ideas, such as Techcombank and mobile-device retailer Mobile World in Vietnam. Techcombank is run by an internationally-experienced management team focused on growing profitability rather than market share. The bank focuses on providing retail banking for the upper-income segments rather than the corporate market, and is supported by investments in technology and processes. Similarly, Mobile World has been able to apply technology to its retail network thereby increasing its exposure to e-commerce in a relatively underpenetrated market.

These additions to the portfolio have been partly funded by increasing the level of gearing. While this strategy has had a negative impact on performance in a declining market, your Manager believes that these holdings present exciting potential for the future.

Gearing

Throughout the period, the Company had a £35 million loan facility with The Royal Bank of Scotland, with a maturity date of 7 October 2019. The facility comprised a fixed rate loan of £5 million and a £30 million multi-currency revolving loan facility. An aggregate Sterling equivalent of £33.2 million was drawn down at the period end, mostly denominated in US and Hong Kong Dollars. Gearing (net of cash) was 11.4% as at 31 October 2018 compared to 7.6% at the start of the period.

The Directors have considered a number of refinancing options for the loan facility given the approaching maturity date. Consequently, since the end of October the Company has cancelled the £30 million multi-currency revolving loan facility and has entered into a new loan agreement with The Royal Bank of Scotland, comprising a five year fixed rate loan of £20 million, with an interest rate of 2.626%, and a £15 million three year multi-currency revolving loan facility. This will temporarily increase the Company's borrowing facilities to £40 million until the £5 million fixed rate loan matures in October 2019, at which point the value of the Company's borrowing facilities will return to £35 million.

Share Buy Backs

In line with other investment trusts, the Company has bought back shares in order to provide a degree of liquidity to the market. 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 1.8 million shares to be held in treasury, representing 1.6% of the issued share capital. The shares held in treasury can only be issued to the market if and when the Ordinary shares are trading at a premium to the NAV.

Board Composition

As previously announced, Donald Workman was appointed as an independent non-executive Director of the Company with effect from 1 October 2018. Donald had an executive career at The Royal Bank of Scotland until 2016 where, over a period of 23 years, he held a number of senior positions which latterly included acting as Executive Chairman of the group's Asia Pacific business. He was a member of the RBS Group Executive Committee from 2014. He was also an independent non-executive director of Standard Life Private Equity Trust plc between 2006 and 2013 and he is currently non-executive Chairman of JCB Finance Limited.

Outlook

The short term outlook for the Asia Pacific region remains uncertain owing to geopolitical concerns including rising trade tensions, higher interest rates and slowing global economic growth. However, macroeconomic fundamentals for the region are relatively positive compared to the rest of the world with higher economic and corporate profit growth as well as robust balance sheets. In this environment, your Manager's investment process should yield better returns given the Company's holdings have been selected for their skilled management teams and competitive advantages, giving them the potential to outperform over the longer term.

David Shearer

Chairman

19 December 2018

 

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 2018 and comprise the following risk headings:

-     Investment strategy and objectives

-     Investment management

-     Income/dividends

-     Financial

-     Gearing

-     Regulatory

-     Operational

The Board has reviewed and considered the potential impact of the current geopolitical environment including Brexit and trade tensions. Apart from this, 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.

Interim Board Report - Other Matters

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

19 December 2018

 

INVESTMENT PORTFOLIO
As at 31 October 2018
		Valuation	Total assets
Company	Country	£'000	%
Aberdeen Global - Indian Equity FundA	India	31,566	10.5
Aberdeen Global - China A Share Equity FundA	China	17,250	5.7
Samsung Electronics Pref	South Korea	15,969	5.3
Taiwan Semiconductor Manufacturing Company	Taiwan	12,753	4.2
Jardine Strategic Holdings	Hong Kong	12,382	4.1
Tencent Holdings	China	11,653	3.9
Ayala Land	Philippines	9,982	3.3
Oversea-Chinese Banking Corporation	Singapore	9,914	3.3
Bank Central Asia	Indonesia	8,701	2.9
AIA Group	Hong Kong	8,558	2.8
Top ten investments		138,728	46.0
CSL	Australia	6,779	2.3
Rio TintoB	Australia	6,734	2.2
Siam Cement (Foreign)	Thailand	6,642	2.2
Ping An Insurance H Shares	China	6,170	2.0
BHP BillitonB	Australia	6,060	2.0
HSBC Holdings	Hong Kong	5,862	1.9
Hong Kong Exchanges & Clearing	Hong Kong	5,782	1.9
Keppel Corporation	Singapore	5,335	1.8
Aberdeen New India Investment TrustAB	India	5,286	1.8
Swire Properties	Hong Kong	5,056	1.7
Top twenty investments		198,434	65.8
China Resources Land	China	4,921	1.6
China Mobile	China	4,901	1.6
City Developments	Singapore	4,763	1.6
DBS Group Holdings	Singapore	4,502	1.5
Yum China Holdings	China	4,461	1.5
M.P. Evans GroupB	United Kingdom	4,123	1.4
Anhui Conch Cement H Shares	China	3,644	1.2
John Keells Holdings	Sri Lanka	3,479	1.2
Public Bank Berhad	Malaysia	3,315	1.1
Kerry Logistics Network	Hong Kong	3,315	1.1
Top thirty investments		239,858	79.6
Singapore Telecommunication	Singapore	3,254	1.1
United Overseas Bank	Singapore	3,191	1.1
Vietnam Dairy Products	Vietnam	3,165	1.0
Venture Corp	Singapore	3,027	1.0
Standard CharteredB	United Kingdom	2,996	1.0
Autohome ADR	China	2,973	1.0
Taiwan Mobile	Taiwan	2,965	1.0
Naver Corporation	South Korea	2,485	0.8
LG Chem	South Korea	2,408	0.8
Aberdeen Standard Asia FocusA	Other Asia	2,314	0.7
Top forty investments		268,636	89.1
E-Mart	South Korea	2,243	0.7
Vietnam Technological & Commercial Bank	Vietnam	2,174	0.7
Swire Pacific B Shares	Hong Kong	2,164	0.7
Unilever Indonesia	Indonesia	2,162	0.7
Wuxi Biologics (Cayman)	China	2,047	0.7
ASM Pacific Technology	Hong Kong	2,045	0.7
Mobile World	Vietnam	1,882	0.7
Huazhu Group ADR	China	1,821	0.6
Bangkok Dusit Medical Services (Foreign)	Thailand	1,795	0.6
Raffles Medical	Singapore	1,697	0.6
Top fifty investments		288,666	95.8
Hang Lung Group	Hong Kong	1,690	0.6
Woodside Petroleum	Australia	1,550	0.5
Astra International	Indonesia	1,510	0.5
Sunny Optical Technology	China	1,265	0.4
Amorepacific CorporationC	South Korea	1,195	0.4
Indocement Tunggal Prakarsa	Indonesia	960	0.3
Yoma Strategic Holdings	Singapore	876	0.3
Hang Lung Properties	Hong Kong	725	0.2
DFCC Bank	Sri Lanka	589	0.2
Total investments		299,026	99.2
Net current assetsD		2,393	0.8
Total assetsE		301,419	100.0
A         No double-charging of management fees by the Manager, see note 11.
B       London Stock Exchange listing.
C        Holding merges two equity holdings with value splits as follows: Ordinary shares £144,000 and Preference shares £1,051,000.
D       Excluding bank loans of £33,177,000.
E        Total assets which includes current year income, less current liabilities, before deducting any prior charges.
Note: Unless otherwise stated, foreign stock is held and all investments are equity holdings.

INDEPENDENT REVIEW REPORT TO ABERDEEN NEW DAWN INVESTMENT TRUST PLC

Introduction

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 2018 which comprises a Condensed Statement of Comprehensive Income, Condensed Statement of Financial Position, Condensed Statement of Changes in Equity, Condensed Statement of Cash Flows and the related notes 1 to 14. We have read the other information contained in the Half Yearly Financial Report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with guidance contained in International Standard on Review Engagements 2410 (UK) 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company, for our work, for this report, or for the conclusions we have formed.

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 Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Conduct Authority.

As disclosed in note 1, the annual financial statements of the Company are prepared in accordance with United Kingdom Generally Accepted Accounting Practice. The condensed set of financial statements included in this Half Yearly Financial Report has been prepared in accordance with the Financial Reporting Standard (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.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Auditing Practices Board for use in the United Kingdom. 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. 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.

Conclusion

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 2018 is not prepared, in all material respects, in accordance with FRS 104 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules of the United Kingdom's Financial Services Conduct Authority.

Ernst & Young LLP

Edinburgh

19 December 2018

 

CONDENSED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
		Six months ended			Six months ended
		31 October 2018			31 October 2017
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
(Losses)/gains on investments		-	(36,727)	(36,727)	-	26,743	26,743
Income	2	4,664	-	4,664	4,587	-	4,587
Management fee		(454)	(454)	(908)	(447)	(447)	(894)
Administrative expenses		(432)	-	(432)	(400)	-	(400)
Exchange (losses)/gains	6	-	(1,659)	(1,659)	-	608	608
		_______	_______	_______	_______	_______	_______
Net return before finance costs and taxation		3,778	(38,840)	(35,062)	3,740	26,904	30,644
Finance costs		(201)	(201)	(402)	(140)	(140)	(280)
		_______	_______	_______	_______	_______	_______
Return before taxation		3,577	(39,041)	(35,464)	3,600	26,764	30,364
Taxation	3	(260)	-	(260)	(193)	-	(193)
		_______	_______	_______	_______	_______	_______
Return after taxation		3,317	(39,041)	(35,724)	3,407	26,764	30,171
		_______	_______	_______	_______	_______	_______
Return per Ordinary share (pence)	5	2.92	(34.39)	(31.47)	2.93	23.03	25.96
		_______	_______	_______	_______	_______	_______
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 2018	30 April 2018
		Notes	£'000	£'000
Fixed assets
Investments at fair value through profit or loss		9	299,026	334,643
			__________	__________
Current assets
Debtors			1,760	1,127
Cash at bank and in hand			2,722	4,507
			__________	__________
			4,482	5,634
			__________	__________
Creditors: amounts falling due within one year
Loans			(33,177)	(23,058)
Other creditors			(2,089)	(403)
			__________	__________
			(35,266)	(23,461)
			__________	__________
Net current liabilities			(30,784)	(17,827)
			__________	__________
Total assets less current liabilities			268,242	316,816
Non-current creditors
Loans			-	(5,000)
			__________	__________
Net assets			268,242	311,816
			__________	__________
Share capital and reserves
Called-up share capital			6,152	6,152
Share premium account			17,955	17,955
Capital redemption reserve			10,402	10,402
Capital reserve		6	221,039	264,189
Revenue reserve			12,694	13,118
			__________	__________
Equity shareholders' funds			268,242	311,816
			__________	__________
Net asset value per Ordinary share (pence)		7	238.09	272.41
			__________	__________

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 2018
			Share	Capital
		Share	premium	redemption	Capital	Revenue
		capital	account	reserve	reserve	reserve	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 30 April 2018		6,152	17,955	10,402	264,189	13,118	311,816
Buy back of Ordinary shares for treasury		-	-	-	(4,109)	-	(4,109)
Return after taxation		-	-	-	(39,041)	3,317	(35,724)
Dividend paid	4	-	-	-	-	(3,741)	(3,741)
		______	______	_______	______	______	_______
Balance at 31 October 2018		6,152	17,955	10,402	221,039	12,694	268,242
		______	______	_______	______	______	_______
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
Buy back of Ordinary shares for treasury		-	-	-	(2,516)	-	(2,516)
Return after taxation		-	-	-	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
		______	______	_______	______	______	_______
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 2018	31 October 2017
	Notes	£'000	£'000
Operating activities
Net return before finance costs and taxation		(35,062)	30,644
Adjustment for:
Losses/(gains) on investments		36,727	(26,743)
Currency losses/(gains)		1,659	(608)
Decrease in accrued dividend income		806	755
Decrease/(increase) in other debtors		8	(16)
Increase/(decrease) in creditors		167	(174)
Scrip dividends included in investment income		(286)	(269)
Overseas withholding tax		(335)	(265)
		__________	__________
Net cash flow from operating activities		3,684	3,324
Investing activities
Purchases of investments		(32,564)	(20,115)
Sales of investments		31,911	23,125
		__________	__________
Net cash from investing activities		(653)	3,010
Financing activities
Interest paid		(402)	(285)
Equity dividends paid	4	(3,741)	(3,486)
Buyback of Ordinary shares for treasury		(4,134)	(2,633)
Loan drawdown		3,500	-
		__________	__________
Net cash used in financing activities		(4,777)	(6,404)
		__________	__________
Decrease in cash		(1,746)	(70)
		__________	__________
Analysis of changes in cash during the period
Opening balances		4,507	1,719
Effect of exchange rate fluctuations on cash held		(39)	(5)
Decrease in cash as above		(1,746)	(70)
		__________	__________
Closing balances		2,722	1,644
		__________	__________
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 2018

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 2018	31 October 2017
2.	Income	£'000	£'000
	Income from investments
	UK dividend income	646	541
	Overseas dividends	3,729	3,777
	Scrip dividends	286	269
		__________	__________
		4,661	4,587
		__________	__________
	Other income
	Deposit interest	3	-
		__________	__________
	Total income	4,664	4,587
		__________	__________

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 2018	31 October 2017
		£'000	£'000
	2018 final dividend - 3.30p (2017 - 3.00p)	3,741	3,486
		__________	__________
	An interim dividend of 1.00p per share will be paid on 25 January 2019 to shareholders on the register on 4 January 2019. The ex-dividend date will be 3 January 2019.

		Six months ended	Six months ended
		31 October 2018	31 October 2017
5.	Return per Ordinary share	p	p
	Revenue return	2.92	2.93
	Capital return	(34.39)	23.03
		__________	__________
	Total return	(31.47)	25.96
		__________	__________
	The figures above are based on the following attributable assets:
		£'000	£'000
	Revenue return	3,317	3,407
	Capital return	(39,041)	26,764
		__________	__________
	Total return	(35,724)	30,171
		__________	__________
	Weighted average number of Ordinary shares in issue	113,518,761	116,205,250
		__________	__________

6.	Capital reserve
	The capital reserve reflected in the Condensed Statement of Financial Position at 31 October 2018 includes gains of £108,592,000 (30 April 2018 - gains of £160,229,000) which relate to the revaluation of investments held at the reporting date.
	During the period the Company had exchange losses of £1,659,000 (2017 - gains of £608,000), of which £1,719,000 (2017 - gains of £708,000) were attributable to foreign exchange movements on bank loan drawdowns.

		As at	As at
7.	Net asset value per share	31 October 2018	30 April 2018
	Net assets per Condensed Statement of Financial Position (£'000)	268,242	311,816
	Number of Ordinary shares in issue{A}	112,663,848	114,463,848
	Net asset value per Ordinary share (p)	238.09	272.41
	A           Excluding shares held in treasury

8.	Transaction costs
	During the six months ended 31 October 2018 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 (losses)/gains on investments in the Condensed Statement of Comprehensive Income. The total costs were as follows:
		Six months ended	Six months ended
		31 October 2018	31 October 2017
		£'000	£'000
	Purchases	70	20
	Sales	39	34
		__________	__________
		109	54
		__________	__________

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 2018	£'000	£'000	£'000	£'000
	Financial assets at fair value through profit or loss
	Quoted equities	250,210	-	-	250,210
	Collective investment schemes	-	48,816	-	48,816
		_______	_______	_______	_______
	Net fair value	250,210	48,816	-	299,026
		_______	_______	_______	_______
		Level 1	Level 2	Level 3	Total
	As at 30 April 2018	£'000	£'000	£'000	£'000
	Financial assets at fair value through profit or loss
	Quoted equities	274,167	-	-	274,167
	Collective investment schemes	-	60,476	-	60,476
		_______	_______	_______	_______
	Net fair value	274,167	60,476	-	334,643
		_______	_______	_______	_______
	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.	Called-up share capital
	During the six months ended 31 October 2018 the Company purchased 1,800,000 (31 October 2017 - 1,120,000) Ordinary shares for treasury at a cost of £4,109,000 (31 October 2017 - £2,516,000).
	Between the period 1 November 2018 and the date of approval of this Report, the Company bought back for treasury a further 365,000 Ordinary shares at a cost of £780,000.

11.	Related party transactions and transactions with the Manager
	Mr Young is a director of Aberdeen Standard Investments (Asia) Limited, which has been delegated authority for the day to day administration of the investment policy from Aberdeen Standard Fund Managers Limited ("ASFML") which is a subsidiary of Standard Life Aberdeen PLC. Management, promotional activities and secretarial and administration services are provided to the Company by AFML. Until 31 March 2018 Mr Young's fees for his services as a Director were assigned to the Standard Life Aberdeen Group but, since that date, have been waived.
	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 Standard Asia Focus and Aberdeen New India Investment Trust PLC are excluded from the calculation of the investment management fee.  The Company's investment in Aberdeen Global - China A Share Equity Fund is held in a share class not subject to management charges at a fund level and the Manager is therefore entitled to a fee on the value of the Company's investment. The total value of such commonly managed funds at the period end was £39,166,000 (31 October 2017 - £46,946,000).
	-      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 £908,000 (31 October 2017 - £894,000) of management fees were payable, with a balance of £291,000 (31 October 2017 - £157,000) being due to ASFML 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 (31 October 2017 - £158,000), payable quarterly in arrears. During the period £79,000 (31 October 2017 - £79,000) of fees were payable, with a balance of £53,000 (31 October 2017 - £13,000) being due to ASFML at the period end.

12.	Segmental information
	The Company is engaged in a single segment of business, which is to invest in equity securities. Accordingly, all significant operating decisions are based on the Company as one segment.

13.	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 2018 and 31 October 2017 has not been audited by the Company's external auditor.
	The financial information for the year ended 30 April 2018 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.

14.	This Half-Yearly Financial Report was approved by the Board on 19 December 2018.

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

19 December 2018

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

 

END

 

 

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