Half-year Report

RNS Number : 5898J

abrdn New Dawn Invest Trust plc

14 December 2022

 

ABRDN NEW DAWN INVESTMENT TRUST PLC

HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 OCTOBER 2022

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)

Performance Highlights

Share price total returnAB			Net asset value total returnAB
Six months ended 31 October 2022			Six months ended 31 October 2022
-13.5%			-12.7%
Year ended 30 April 2022	-11.8%		Year ended 30 April 2022	-11.0%
Benchmark total returnB			Ongoing chargesA
Six months ended 31 October 2022			Forecast year ending 30 April 2023
-13.7%			1.14%
Year ended 30 April 2022	-9.2%		Year ended 30 April 2022	1.13%
Revenue return per share			Interim dividend per Ordinary share
Six months ended 31 October 2022
3.29p			1.00p
Six months ended 31 October 2021	2.49p		Six months ended 31 October 2021	1.00p
A Considered to be an Alternative Performance Measure.
B Total return represents capital return plus dividends reinvested.

Financial Calendar and Highlights

Payment of interim dividend for the year ended 30 April 2023	10 February 2023
Financial year end	30 April 2023
Expected announcement of results for year ended 30 April 2023	July 2023
Annual General Meeting (London)	4 September 2023
Payment of final dividend for the year ended 30 April 2023	8 September 2023

Financial Highlights

	31 October 2022	30 April 2022	% change
Total assetsA	£326,581,000	£380,434,000	-14.2
Total equity shareholders' funds	£297,622,000	£346,952,000	-14.2
Share price (mid-market)B	244.50p	286.00p	-14.5
Net asset value per share (including current year income)B	280.90p	325.17p	-13.6
Discount to net asset value (including current year income)BC	13.0%	12.0%
MSCI AC Asia Pacific ex Japan Index (currency adjusted)B	704.58	834.02	-15.5
Net gearingC	9.0%	7.7%
Interim dividend per shareD	1.0p	1.0p	-
Ongoing charges ratioC	1.14%	1.13%
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.

For further information, please contact:

Stephanie Hocking

abrdn Fund Managers Limited    0207 463 6403

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.

Chairman's Statement

Highlights

· A volatile six months as markets were impacted by a number of headwinds.

· The Company's net asset value was down 12.7% in total return terms, but ahead of the fall in the benchmark MSCI All Countries Asia Pacific ex Japan Index (in Sterling terms) of 13.7%.

· An unchanged interim dividend for the year of 1.0p per Ordinary share.

Overview

The six month period under review was volatile as markets were impacted by a number of factors. Initial optimism as Covid-19 restrictions were lifted in parts of the region provided a much-needed boost to sectors such as tourism and travel, but soon other events began to influence sentiment, especially the rapid tightening of US monetary policy in response to rising inflation. A sharp increase in commodity prices, caused mainly by the Russia-Ukraine war, raised fears about the potential impact on corporate profit margins. Rising interest rates have led to forecasts of a global recession next year, but inflation in Asia has not been as high as in other parts of the world meaning that the region may see lower rate increases than elsewhere.

Within Asia, the implementation of China's 'zero-Covid' policy and debt concerns in the real estate sector became a focus as their impact on the mainland economy was increasingly apparent. However, the central government did take action to address these issues with an apparent relaxation of some of the 'zero-Covid' rules and the introduction of a number of support measures for the economy.

Towards the end of the period, the Communist Party Congress in China agreed to give President Xi Jinping an unprecedented third term in office, and he reinforced his position by installing key allies in the powerful Politburo Standing Committee. While it is worth highlighting that this could result in better co-ordination of policies, it also led to concerns about a lack of checks and balances at the top of the Chinese government.

The news for investors was not all negative over the period, however. Corporate earnings growth remained relatively healthy and the push for more renewable energy remained firmly on track. Particularly relevant for the Company is the move towards localisation, where companies find customers closer to their base of operations, and a trend towards greater self-sufficiency. While economic growth overall in China slowed significantly, there was still an encouraging amount of activity in some sectors.

Results and Dividends

Reflecting these difficult conditions, the Company's net asset value ("NAV") was down 12.7% in total return terms over the six month period ended 31 October 2022. This compares to a fall of 13.7% in the benchmark MSCI All Countries Asia Pacific ex Japan Index (in Sterling terms). The share price at the end of the period was 244.50p, representing a discount to the NAV of 13.0%.

The Board has declared an unchanged interim dividend for the year of 1.0p per Ordinary share, which will be paid on 10 February 2023 to shareholders on the register on 6 January 2023 (the relevant ex-dividend date being 5 January 2023). As in previous years, future dividends will depend on the level of income from the portfolio and the Board will decide on the level of the final dividend at the time of reviewing the outcome for the financial year.

The portfolio proved more resilient than the wider market, thanks largely to the Investment Manager's focus on finding quality companies. The financial holdings made a positive contribution to relative performance, especially the banking sector in South-East Asia. The companies in that sector include DBS Group and Oversea-Chinese Banking Corporation in Singapore, and Bank Central Asia ("BCA") in Indonesia. Rising interest rates were beneficial to those companies, but the appeal of these banks as investments goes much further than that. BCA benefits from a stable low-cost deposit base that funds its lending and DBS offers a very good return on equity thanks to a clear strategy, good digital infrastructure and the efficiency of its returns. The holdings in all three companies were increased over the period.

Good stock selection in China made a positive contribution to performance, as did the underweight position to the market. The latter proved to be a wise move given the significant weakness in that market over the period. Indeed, the Investment Manager took advantage of that weakness and selectively bought shares at more attractive valuations. Renewable energy stocks, including Sungrow Power Supply , performed well due to expectations that demand for energy storage systems in China and overseas will be even higher than previously forecast. The localisation trend was evident in the positive contribution from medical instruments manufacturer Shenzhen Mindray Bio-Medical Electronics . The company is one of those in the healthcare sector to benefit from recent moves by the Chinese authorities to source more equipment from domestic suppliers. A new position was acquired in Meituan Dianping , which operates a food delivery and local services app and is seeing a strong increase in returns. The company is well placed to benefit as the country moves towards a more service-driven economy and the online penetration of these services grows.

In challenging market conditions, it is useful to have the flexibility to be able to invest across a wide range of sectors and countries. Unlike most of its peers, the Company has the option to invest in Australia and the Board is pleased to note that this proved beneficial during the period. OZ Minerals performed well thanks to its focus on copper, which is seen as a play on the global trend towards electrification. The company's shares were also lifted by a takeover bid from BHP Group during the period, which was rejected. OZ Minerals has subsequently received approval for a large copper and nickel project in Western Australia that makes it an even more appealing takeover target. BHP has since come back with a revised offer that has the support of the OZ Minerals board, so this should stand a good chance of going through, assuming it receives the backing of shareholders.

The portfolio received shares in Woodside Energy through a share distribution as a consequence of the decision by BHP Group to sell its oil and gas assets to Woodside; the Investment Manager has since added to the position. Woodside has benefited from the significant rise in commodity prices but is the only oil and gas holding in the portfolio. The Investment Manager is conscious that the company is a big carbon emitter, but it has a very credible, and clear, carbon reduction strategy. It is also worth noting that, in overall terms, the Company's own portfolio has a carbon footprint well below that of the benchmark index.

Investor concerns about the impact of a global economic downturn on the demand for electronic devices were behind the underperformance of the export-oriented, technology-heavy markets of Taiwan and South Korea. Geopolitical tensions between Taiwan and China were also a factor. Taiwan Semiconductor Manufacturing Compan y ("TSMC") was not immune from these concerns, but, in the Investment Manager's view, TSMC has an almost unassailable position in the sector and remains an attractive investment given its scale and technological leadership, while its shares already price in many of the headwinds.

The Indian market proved fairly resilient over the period. The portfolio is exposed to the country mainly through the Aberdeen Standard SICAV - India Equity Fund , but not having direct holdings in stocks such as Reliance Industries and Axis Bank, which have done well, weighed on performance. The Company would like to be able to invest direct in Indian stocks but progress with the necessary formalities is slow.

The Investment Manager responded to market events and the changing macroeconomic outlook by adopting a more defensive approach, reducing cyclical investments and taking advantage of attractive valuations to initiate positions in quality companies that they have been monitoring for a while. A good example of this was the addition of Telkom Indonesia , which dominates the telecoms sector in its home country and should prove defensive through the current market uncertainty. Growth is being driven by the greater use of data, the roll out of 5G services, and the rising penetration of broadband.

A number of positions were sold during the period. A sharp fall in construction activity led to the sale of the holding in Shenzhen Inovance Technology . Xero , which is facing a challenging short-term environment in its key UK market, was also divested along with positions in Hangzhou Tigermed and Vinamilk .

ESG

Turning to ESG, it is in exactly these types of challenging market conditions that it becomes even more important for investors to remain vigilant. Experienced market-watchers say that when the tide goes out, companies reveal their true colours through their behaviour and priorities. The Investment Manager has always given a high level of attention to governance issues in the region, and in recent years has extended its processes for the active management of environmental and social risks.  Resources are in place within the region to ensure investors' expectations are met. A company's willingness to engage is a fundamental aspect of the decision-making process for investment, as can be seen in the case studies on DBS Group and BHP Group later in this report.

Gearing

At the end of the period, the Company's borrowing facilities amounted to £40 million, comprising a fixed rate loan of £20 million, which matures in December 2023 (with an interest rate of 2.626%), and a £20 million multi-currency revolving loan facility maturing in June 2024. An aggregate Sterling equivalent of £29.0 million was drawn at the period end and gearing (net of cash) was 9.0% as at 31 October 2022, compared to 7.7% at the beginning of the period.

Share Buy Backs

In common with other investment trusts, the Company has bought back shares with the aim of providing a degree of liquidity to the market at times when the discount to the NAV has widened. It is the view of the Board that this policy is in the interests of all shareholders. The Board closely monitors the discount and the operation of the share buy back policy is reviewed at each Board meeting, as well as considering other options for managing the discount.

During the period, the Company bought back 743,000 Ordinary shares, representing 0.70% of the issued share capital. These shares were bought back and held in treasury. The Company's stated policy on treasury shares is that these can only be re-issued to the market at a premium to the NAV per share at that time.

Outlook

The combination of rising interest rates, the strong US Dollar, currency depreciation and an increasingly fragile global economy will continue to create uncertainty in the months ahead, but Asia is starting from a better position than many developed economies in the West. A number of countries in South-East Asia are recovering after their post-Covid-19 re-opening, which should help to support earnings growth. The resilient performance of the equity markets in India and Indonesia is another source of optimism, and the Investment Manager is also seeing potential signs of recovery in South Korea and Taiwan as the stock markets in those countries recover from significant selling in the technology sector. In China, the economy should benefit from any action taken by the government to address flagging growth, such as further loosening of Covid controls and increasing fiscal support.

Whilst the headwinds experienced in the period are likely to continue to cause market volatility in the short term, it is important to note that this potentially creates some good opportunities to invest at more attractive valuations, and the longer-term advantages of having exposure to growing Asian economies remain very much in place. 

Donald Workman
Chairman
13 December 2022

Interim Management Report

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'; and

-  the Interim Board Report (constituting the Interim Management Report) includes a fair review of the information required by rule 4.2.7R of the Financial Conduct 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 2022 and comprise the following risk headings:

-  Investment strategy and objectives

-  Investment management

-  Income/dividends

-  Financial

-  Gearing

-  Regulatory

-  Operational

-  Exogenous risks

In addition to these risks, the Board is conscious of the continuing impact of the Covid-19 pandemic in China, the war in Ukraine, inflation, increasing interest rates and volatility in global equity markets. The Board considers that these are risks that could have further implications for financial markets.

In all other respects, 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 regularly reviews income and expenditure projections, has set limits for borrowing and reviews compliance with banking covenants, including the headroom available. The Company has two loan facilities which expire in December 2023 and June 2024 respectively.

Having taken these factors into account the Directors believe that, after making enquiries, the Company has adequate resources to continue in operational existence for the foreseeable future and has the ability to meet its financial obligations as they fall due for a period of at least twelve months from the date of approval of this Report.  Accordingly, they continue to adopt the going concern basis of accounting in preparing the financial statements.

On behalf of the Board
Donald Workman,
Chairman
13 December 2022

Investment Portfolio

As at 31 October 2022
		Valuation	Total assets
Company	Country	£'000	%
Aberdeen Standard SICAV - Indian Equity FundA	India	52,039	15.9
Taiwan Semiconductor Manufacturing Company	Taiwan	21,849	6.7
Samsung Electronics Pref	South Korea	17,193	5.3
AIA Group	Hong Kong	15,288	4.7
BHP Group	Australia	12,247	3.8
DBS Group Holdings	Singapore	11,835	3.6
Bank Central Asia	Indonesia	10,785	3.3
Tencent Holdings	China	10,007	3.0
CSL	Australia	9,684	3.0
Oversea-Chinese Banking Corporation	Singapore	8,896	2.7
Top ten investments		169,823	52.0
Aberdeen New India Investment TrustAB	India	7,331	2.2
LG Chem	South Korea	6,557	2.0
ASML	Netherlands	5,738	1.8
Budweiser Brewing	Hong Kong	5,676	1.7
Oz Minerals	Australia	5,609	1.7
Cochlear	Australia	5,443	1.7
Shenzen Mindray Bio-Medical Electronics - A shares	China	5,204	1.6
Woodside EnergyC	Australia	5,174	1.6
Aristocrat Leisure	Australia	5,094	1.6
China Tourism Group Duty FreeD	China	5,053	1.5
Top twenty investments		226,702	69.4
Samsung Biologics	South Korea	5,051	1.5
Ayala Land	Philippines	4,891	1.5
M.P. Evans GroupB	United Kingdom	4,762	1.5
China Merchants Bank - A shares	China	4,721	1.5
LONGi Green Energy Technology - A shares	China	4,536	1.4
Hong Kong Exchanges & Clearing	Hong Kong	4,358	1.3
Yunnan Energy New Material - A shares	China	4,238	1.3
Mobile World	Vietnam	4,041	1.2
JD.com	China	3,961	1.2
Wuxi Biologics (Cayman)	China	3,885	1.2
Top thirty investments		271,146	83.0
Alibaba Group	China	3,802	1.2
Kweichow Moutai - A shares	China	3,679	1.1
Sungrow Power Supply - A shares	China	3,632	1.1
FPT Corporation	Vietnam	3,560	1.1
Nari Technology - A shares	China	3,497	1.1
Rio TintoB	Australia	3,325	1.0
Cisarua Mountain Dairy	Indonesia	3,314	1.0
Techtronic Industries	Hong Kong	3,229	1.0
abrdn Asia Focus (formerly Aberdeen Standard Asia Focus) AB	Other Asia	2,716	0.8
Venture Corp	Singapore	2,416	0.8
Top forty investments		304,316	93.2
Zhongsheng Group	China	2,348	0.7
Sands China	Hong Kong	2,242	0.7
China Resources Land	China	2,206	0.7
Yonyou Network Technology - A shares	China	2,101	0.6
Centre Testing International Group - A shares	China	1,908	0.6
Meituan Dianping	China	1,861	0.6
John Keells Holdings	Sri Lanka	1,856	0.6
Telekom Indonesia	Indonesia	1,839	0.5
Kakao	South Korea	1,781	0.5
Siam Cement (Foreign)	Thailand	1,638	0.5
Top fifty investments		324,096	99.2
GDS - A shares	China	1,273	0.4
Total investments		325,369	99.6
Net current assetsE		1,212	0.4
Total assetsF		326,581	100.0
A Holding also managed by abrdn but not subject to double charging of management fees.
B London Stock Exchange listing.
C Holding comprises Australia and United Kingdom listings.
D Holding comprises A & H shares.
E Excluding short-term bank loans of £8,974,000.
F 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.

 Condensed Statement of Comprehensive Income (unaudited)

		Six months ended			Six months ended
		31 October 2022			31 October 2021
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Losses on investments		-	(46,168)	(46,168)	-	(5,254)	(5,254)
Income	2	4,756	-	4,756	4,076	-	4,076
Management fee		(472)	(472)	(944)	(622)	(622)	(1,244)
Administrative expenses		(403)	-	(403)	(380)	-	(380)
Exchange (losses)/gains		-	(404)	(404)	-	67	67
Net return before finance costs and taxation		3,881	(47,044)	(43,163)	3,074	(5,809)	(2,735)
Finance costs		(220)	(220)	(440)	(202)	(202)	(404)
Return before taxation		3,661	(47,264)	(43,603)	2,872	(6,011)	(3,139)
Taxation	3	(162)	-	(162)	(169)	-	(169)
Return after taxation		3,499	(47,264)	(43,765)	2,703	(6,011)	(3,308)
Return per Ordinary share (pence)	5	3.29	(44.46)	(41.17)	2.49	(5.53)	(3.04)
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 2022	30 April 2022
	Notes	£'000	£'000
Fixed assets
Investments at fair value through profit or loss	9	325,369	373,697
Current assets
Debtors		1,421	1,907
Cash and short-term deposits		1,372	7,824
		2,793	9,731
Creditors: amounts falling due within one year
Loans		(8,974)	(13,504)
Other creditors		(1,581)	(2,994)
		(10,555)	(16,498)
Net current liabilities		(7,762)	(6,767)
Total assets less current liabilities		317,607	366,930
Non-current creditors
Loans		(19,985)	(19,978)
Net assets		297,622	346,952
Share capital and reserves
Share capital		5,855	5,855
Share premium account		17,955	17,955
Capital redemption reserve		10,699	10,699
Capital reserve		250,416	299,738
Revenue reserve		12,697	12,705
Equity shareholders' funds		297,622	346,952
Net asset value per Ordinary share (pence)	6	280.90	325.17
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 2022
			Share	Capital
		Share	premium	redemption	Capital	Revenue
		capital	account	reserve	reserve	reserve	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 30 April 2022		5,855	17,955	10,699	299,738	12,705	346,952
Buy back of Ordinary shares for treasury		-	-	-	(2,058)	-	(2,058)
Return after taxation		-	-	-	(47,264)	3,499	(43,765)
Dividend paid	4	-	-	-	-	(3,507)	(3,507)
Balance at 31 October 2022		5,855	17,955	10,699	250,416	12,697	297,622
Six months ended 31 October 2021
			Share	Capital
		Share	premium	redemption	Capital	Revenue
		capital	account	reserve	reserve	reserve	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 30 April 2021		5,855	17,955	10,699	355,134	13,362	403,005
Buy back of Ordinary shares for treasury		-	-	-	(2,970)	-	(2,970)
Return after taxation		-	-	-	(6,011)	2,703	(3,308)
Dividend paid	4	-	-	-	-	(3,587)	(3,587)
Balance at 31 October 2021		5,855	17,955	10,699	346,153	12,478	393,140
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 2022	31 October 2021
	Notes	£'000	£'000
Operating activities
Net return before finance costs and taxation		(43,163)	(2,735)
Adjustment for:
Losses on investments		46,168	5,254
Currency losses/(gains)		404	(67)
Dividend income		(4,732)	(4,076)
Dividend income received		4,852	4,567
Increase in other debtors		(11)	(26)
Increase/(decrease) in other creditors		843	(21)
Stock dividends included in investment income		-	(152)
Overseas withholding tax		(164)	(225)
Net cash flow from operating activities		4,197	2,519
Investing activities
Purchases of investments		(33,092)	(39,128)
Sales of investments		33,396	50,870
Net cash from investing activities		304	11,742
Financing activities
Interest paid		(426)	(395)
Equity dividend paid	4	(3,507)	(3,587)
Buyback of Ordinary shares for treasury		(2,086)	(2,939)
Loan repayment		(4,814)	-
Net cash used in financing activities		(10,833)	(6,921)
(Decrease)/Increase in cash		(6,332)	7,340
Analysis of changes in cash during the period
Opening balance		7,824	2,364
Effect of exchange rate fluctuations on cash held		(120)	142
(Decrease)/Increase in cash as above		(6,332)	7,340
Closing balances		1,372	9,846
The accompanying notes are an integral part of these condensed set of interim financial statements.

Notes to the Financial Statements (unaudited)

For the six months ended 31 October 2022

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.

2.	Income
		Six months ended	Six months ended
		31 October 2022	31 October 2021
		£'000	£'000
	Income from investments
	UK dividend income	359	1,038
	Overseas dividends	4,373	2,886
	Stock dividends	-	152
		4,732	4,076
	Other income
	Deposit interest	16	-
	Other income	8	-
		24	-
	Total income	4,756	4,076

3.	Taxation
	The taxation charge for the period represents withholding tax suffered on overseas dividend income (31 October 2021 - same).

4.	Dividends
	Ordinary dividends on equity shares deducted from reserves are analysed below:
		Six months ended	Six months ended
		31 October 2022	31 October 2021
		£'000	£'000
	2022 final dividend - 3.30p (2021 - 3.30p)	3,507	3,587
	An interim dividend of 1.00p (31 October 2021 - 1.00p) per share will be paid on 10 February 2023 to shareholders on the register on 6 January 2023. The ex-dividend date will be 5 January 2023.

5.	Return per Ordinary share
		Six months ended	Six months ended
		31 October 2022	31 October 2021
		p	p
	Revenue return	3.29	2.49
	Capital return	(44.46)	(5.53)
	Total return	(41.17)	(3.04)
	The figures above are based on the following attributable returns:
		£'000	£'000
	Revenue return	3,499	2,703
	Capital return	(47,264)	(6,011)
	Total return	(43,765)	(3,308)
	Weighted average number of Ordinary shares in issue	106,311,234	108,629,299

6.	Net asset value per share
		As at	As at
		31 October 2022	30 April 2022
	Net assets per Condensed Statement of Financial Position	£297,622,000	£346,952,000
	Number of Ordinary shares in issueA	105,954,348	106,697,348
	Net asset value per Ordinary share	280.90p	325.17p
	A Excluding shares held in treasury.

7.	Transaction costs
	During the six months ended 31 October 2022 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 on investments in the Condensed Statement of Comprehensive Income. The total costs were as follows:
		Six months ended	Six months ended
		31 October 2022	31 October 2021
		£'000	£'000
	Purchases	45	37
	Sales	62	63
		107	100

8.	Analysis of changes in net debt
		At				At
		30 April	Currency	Cash	Non-cash	31 October
		2022	differences	flows	movements	2022
		£'000	£'000	£'000	£'000	£'000
	Cash and short term deposits	7,824	(120)	(6,332)	-	1,372
	Debt due within one year	(13,504)	(284)	4,814	-	(8,974)
	Debt due after more than one year	(19,978)	-	-	(7)	(19,985)
		(25,658)	(404)	(1,518)	(7)	(27,587)
		At				At
		30 April	Currency	Cash	Non-cash	31 October
		2021	differences	flows	movements	2021
		£'000	£'000	£'000	£'000	£'000
	Cash and short term deposits	2,364	142	7,340	-	9,846
	Debt due within one year	(12,731)	(75)	-	-	(12,806)
	Debt due after more than one year	(19,965)	-	-	(7)	(19,972)
		(30,332)	67	7,340	(7)	(22,932)
	A statement reconciling the movement in net funds to the net cash flow has not been presented as there are no differences from the above analysis.

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 2022	£'000	£'000	£'000	£'000
	Financial assets at fair value through profit or loss
	Quoted equities	273,330	-	-	273,330
	Collective investment schemes	-	52,039	-	52,039
	Total fair value	273,330	52,039	-	325,369
		Level 1	Level 2	Level 3	Total
	As at 30 April 2022	£'000	£'000	£'000	£'000
	Financial assets at fair value through profit or loss
	Quoted equities	325,001	-	-	325,001
	Collective investment schemes	-	48,696	-	48,696
	Total fair value	325,001	48,696	-	373,697
	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.	Share capital
	During the six months ended 31 October 2022 the Company purchased 743,000 (31 October 2021 - 927,000; year ended 30 April 2022 - 2,232,000) Ordinary shares for treasury at a cost of £2,058,000 (31 October 2021 - £2,970,000; 30 April 2022 - £7,008,000).
	Subsequent to the period end, the Company has bought back for treasury a further 135,000 Ordinary shares at a cost of £366,000.

11.	Related party transactions and transactions with the Manager
	Mr Young is also a director of the Company's Investment Manager, abrdn Asia Limited, which is a wholly-owned subsidiary of abrdn plc. Management, promotional activities and secretarial and administration services are provided to the Company by abrdn Fund Managers Limited ("aFML").
	With effect from 1 May 2022, the management fee has been payable monthly in arrears based on an annual amount of 0.85% up to £350 million and 0.50% thereafter of the net asset value of the Company valued monthly, previously 0.85% of net assets, with the following provisions for commonly managed funds:
	- the Company's investments in Aberdeen Standard SICAV - Indian Equity Fund, abrdn Asia Focus PLC and Aberdeen New India Investment Trust PLC are excluded from the calculation of the investment management fee.  The total value of such commonly managed funds at the period end was £62,086,000 (31 October 2021 - £59,176,000).
	- the Company receives a rebate from the Manager for the amount of fees in excess of the above rates charged by the Manager for any commonly managed fund.
	During the period £944,000 (31 October 2021 - £1,244,000) of management fees were payable, with a balance of £1,120,000  (31 October 2021 - £400,000) 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 an annual amount of £196,000 (31 October 2021 - £168,000), payable quarterly in arrears. During the period £98,000 (31 October 2021 - £84,000) of fees were payable, with a balance of £65,000 (31 October 2021 - £14,000) being due to aFML 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 2022 and 31 October 2021 has not been audited by the Company's external auditor.
	The financial information for the year ended 30 April 2022 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 13 December 2022.

Alternative Performance Measures ("APMs")

Alternative performance measures are numerical measures of the Company's current, historical or future performance, financial position or cash flows, other than financial measures defined or specified in the applicable financial framework. The Company's applicable financial framework includes FRS 102 and the AIC SORP.
Discount to net asset value per Ordinary share (including current year income)
The amount by which the market price per Ordinary share is lower than the net asset value per Ordinary share (including current year income), expressed as a percentage of the net asset value per Ordinary share.
		31 October 2022	30 April 2022
Net asset value per Ordinary share (p)	a	280.90	325.17
Share price (p)	b	244.50	286.00
Discount	(a-b)/a	13.0%	12.0%
Net gearing
Net gearing measures total borrowings less cash and cash equivalents divided by shareholders' funds, expressed as a percentage. Under AIC reporting guidance cash and cash equivalents includes net amounts due to and from brokers at the period end as well as cash and short-term deposits.
		31 October 2022	30 April 2022
Borrowings (£'000)	a	28,959	33,482
Cash (£'000)	b	1,372	7,824
Amounts due to brokers (£'000)	c	98	2,363
Amounts due from brokers (£'000)	d	761	1,141
Shareholders' funds (£'000)	e	297,622	346,952
Net gearing	(a-b+c-d)/e	9.0%	7.7%

Ongoing charges
The ongoing charges ratio has been calculated in accordance with guidance issued by the AIC as the total of investment management fees and administrative expenses and expressed as a percentage of the average daily net asset values published throughout the year. The ratio for 31 October 2022 is based on forecast ongoing charges for the year ending 30 April 2023.
		31 October 2022	30 April 2022
Investment management fees (£'000)		1,710	2,339
Administrative expenses (£'000)		777	723
Less: non-recurring charges (£'000)		(11)	-
Ongoing charges (£'000)		2,476	3,062
Average net assets (£'000)		317,738	383,039
Ongoing charges ratio (excluding look-through costs)		0.78%	0.80%
Look-through costsA		0.36%	0.33%
Ongoing charges ratio (including look-through costs)		1.14%	1.13%
A Calculated in accordance with AIC guidance issued in October 2020 to include the Company's share of costs of holdings in investment companies on a look-through basis.
The ongoing charges ratio provided in the Company's Key Information Document is calculated in line with the PRIIPs regulations, which includes amongst other things, the cost of borrowings and transaction costs.
Total return
NAV and share price total returns show how the NAV and share price has performed over a period of time in percentage terms, taking into account both capital returns and dividends paid to shareholders. Share price and NAV total returns are monitored against open-ended and closed-ended competitors, and the Benchmark Index, respectively.
			Share
Six months ended 31 October 2022		NAV	Price
Opening at 1 May 2022	a	325.17p	286.00p
Closing at 31 October 2022	b	280.90p	244.50p
Price movements	c=(b/a)-1	-13.6%	-14.5%
Dividend reinvestmentA	d	0.9%	1.0%
Total return	c+d	-12.7%	-13.5%
			Share
Year ended 30 April 2022		NAV	Price
Opening at 1 May 2021	a	369.97p	328.50p
Closing at 30 April 2022	b	325.17p	286.00p
Price movements	c=(b/a)-1	-12.1%	-12.9%
Dividend reinvestmentA	d	1.1%	1.1%
Total return	c+d	-11.0%	-11.8%
A NAV total return involves investing the net dividend in the NAV of the Company with debt at fair value on the date on which that dividend goes ex-dividend. Share price total return involves reinvesting the net dividend in the share price of the Company on the date on which that dividend goes ex-dividend.

The Half-yearly Report and Accounts will be posted to shareholders. Copies may be obtained from the Company Secretary ( [e-mail] ) or from the Company's website, www.newdawn-trust.co.uk *.

By order of the Board

abrdn Holdings Limited

Company Secretary

13 December 2022

* 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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