Half Yearly Report

RNS Number : 4681K

Aberdeen New Dawn Invest Trust PLC

19 December 2008

 

ABERDEEN NEW DAWN INVESTMENT TRUST PLC

HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 OCTOBER 2008

Interim Board Report

The investment objective of Aberdeen New Dawn Investment Trust PLC is to provide shareholders with a high level of capital growth through equity investment in the Asia Pacific countries ex. Japan.

The following is the unaudited Interim Board Report for the six months ended 31 October 2008.

Background

During the six months to 31 October 2008, the net asset value of the Company decreased 37.0% to 407.0p, outperforming the benchmark MSCI Asia Pacific ex-Japan Index, which fell by 39.2%. Over the period, the net asset value total return (with dividends reinvested) was -36.4% and the benchmark total return was -37.9%, the share price total return reduced to -37.9%. In line with normal practice, there will be no interim dividend. 

Overview

Asian equities were battered in the six months under review, with many markets, including China, India and Korea, losing more than half their value. Concerns over rising inflation, which hit record highs in several countries, dominated sentiment initially but attention soon turned to the intensifying financial turmoil which had spread from the US to Europe. In particular, September and October saw extreme levels of volatility, as the international banking sector experienced unprecedented upheaval. Lehman Brothers and Washington Mutual in the US collapsed, and investment banks Morgan Stanley and Goldman Sachs transformed themselves into commercial lenders so as to be eligible for federal deposit insurance. Even US legislators' approval of a revised US$700bn rescue plan could not stop the downward spiral of markets. 

To quell market volatility, governments initiated various stabilisation measures and orchestrated a series of bailouts - notably those of Fannie Mae, Freddie Mac and AIG in the US, as well as HBOS, Bradford & Bingley, Fortis, Hypo Real Estate and Dexia in Europe. In addition, central banks worldwide cut rates successively, injected fresh liquidity and guaranteed new loans to ease the global credit contraction. All provided only temporary relief to rattled markets. 

While Asia's financial system remained strong, its markets suffered punishing losses, as confidence evaporated and foreign capital fled. Political tensions, particularly in India, Malaysia and Thailand, where incumbent governments were besieged with no-confidence votes, as well as violent street protests in Korea over US beef imports, also added to the sense of apprehension in the region. 

While it had been hoped early on that the crisis could be contained within the financial sector, it eventually spread throughout the world economy. First-quarter GDP growth had held up well across most of Asia, as exports continued to drive expansion in the region. But the slump in the US and Europe soon hurt export-dependent Asian economies. Second-quarter growth slowed in many countries and, in some cases, contracted - Japan, Hong Kong and Singapore have since joined the list of economies in recession. To cushion the slowdown, policymakers in many Asian countries rolled out stimulus packages and slashed interest rates.

The only encouraging news was the moderation of inflation as commodity prices tumbled. At the time of writing, the price of oil has dipped below US$50 a barrel, from its peak of just under US$150 in July.

Amid the market volatility, the portfolio continues to be well diversified across the region, with the overweight to financials and consumer staples reflecting our confidence in Asia's growing domestic demand story. At the country level, we continue to favour Singapore, home to some of Asia's best-managed companies. India, with its thriving IT, pharmaceutical and consumer sectors, also remains attractive. By contrast, poor transparency and standards of accounting have hindered stock choice in China. As such, we prefer to invest directly in Hong Kong stocks or through Chinese entities listed in Hong Kong. 

Portfolio

Your Manager's conservative, value-oriented investment approach provided the portfolio with resilience in the current tough environment. From a sector perspective, the bias towards financials, under which is included banks, insurers, property and conglomerates, contributed the most to relative performance. The overweight position in consumer staples and underweight to industrials also worked in the portfolio's favour.

Our Singapore holdings in the financials sector, United Overseas Bank and Oversea-Chinese Banking Corporation, which boast strong capital bases and sensible business strategies, performed well relative to their peers, although the latter was hurt by investment portfolio losses at its insurance subsidiary. On the other hand, Hong Kong's Dah Sing Financial and Wing Hang Bank fell sharply, on concerns over their exposure to structured products and Icelandic banks. Korean lenders, with their high loan-to-deposit ratios, also proved vulnerable in the prevailing climate. Daegu Bank and Pusan Bank were no exception. 

Other significant outperformers in the financials sector included Australia's QBE Insurance, which has been a core long-term holding. The company's management has an excellent track record in risk control and takes a conservative approach towards its business and balance sheet. Hong Kong's Hang Lung Properties also proved defensive; its stable cash flow from core investment properties in Hong Kong, steady growth in China and expansion into retail malls - a relatively defensive area compared to residential property, particularly at the luxury end - remained key strengths. Singapore-listed Jardine Strategic, which reported strong first-half results, and Hong Kong's Swire Pacific, also performed well during the period. 

Among consumer staples, Unilever Indonesia, which enjoyed solid sales growth and good cost containment, and Multi Bintang, showed strong performance. Likewise, Singapore-listed Dairy Farm continued to generate good cash flow.

In the industrials sector, Singapore's ST Engineering outperformed the benchmark, backed by growing maintenance, repair and overhaul business. Singapore Airlines, a well-run company and arguably one of the best-known brands in the region, benefited from the falling oil price.

Elsewhere, the fund's exposure to the Aberdeen Global India Opportunities Fund, which has large holdings in software stocks Infosys Technologies and Satyam Computer Services as well as pharmaceutical heavyweight GlaxoSmithKline, also boosted relative performance. 

Turning to portfolio activity, we exited Australian construction company Leighton Holdings, a long-term position that had been very rewarding. The company's valuation had become overstretched and we had become concerned that its business had expanded too quickly; the stock has since underperformed. We also sold Korean lender Kookmin Bank, accepting its repurchase offer, as we were sceptical about its restructuring effort. In addition, we divested Taiwan's Fubon Financial Group and China's Zhejiang Expressway, owing to concerns over their business outlooks. 

Other activity included the topping up of holdings that we believe will emerge stronger from the current turmoil, or those that had corrected sharply. Among these were Singapore's Oversea-Chinese Banking Corp, ST Engineering, SingTel and Jardine Strategic; Hong Kong-listed Standard Chartered Bank, Hang Lung Group, China Mobile and PetroChina; Philippines' Ayala Land; Thailand's Siam Cement and PTT Exploration & Production; and Australia's Rio Tinto and QBE Insurance. Against this, we pared the position in Malaysia's Public Bank. 

Gearing

During the period the Company repaid its £12m multi currency facility with AIB and drew down HKD150.1m under a new three year £20m multi currency credit facility negotiated with the Royal Bank of Scotland (representing £10.9 million at the time of drawing). On 23 September 2008 a further HKD 25.3m was drawn down (representing approximately £1.75m at the time of drawing). Accordingly, at the period end a total of HKD175.4m has been drawn (representing approximately £14.0m) under the facility. 

Outlook

At the time of writing, financial markets remain volatile, amid escalating fears of a protracted and deep global recession. Risks of a sharp slowdown in China have also risen, as growth has slowed to a single-digit pace and looks set to fall further. Global markets greeted the US$586m stimulus plan announced by China in November warmly; although the cold reality that it would not help struggling developed economies soon dawned.

In Asia, growth rates are expected to fall further in the coming months. Still, the region is well placed to deal with a slowdown. Underlying fundamentals are strong: Asian countries generally are financially sound and have substantial foreign exchange reserves, and a rising middle class will support growth. As such, your Manager is optimistic about Asia's long-term prospects but will remain vigilant, as market sentiment is likely to be volatile in the months ahead.

An increasingly difficult operating environment has caused companies' profitability to be hurt. But more importantly, it has precipitated the distinction between longer-term winners and losers, as consolidation continues. In this environment, your Manager will continue to maintain its focus on quality. The portfolio consists of conservative, well-run businesses with robust balance sheets. Your Manager, therefore, remains confident that the portfolio's holdings will emerge stronger over the long term.

Alan Henderson

Chairman

19 December 2008

Principal Risks and Uncertainties and Related Party Transactions

Investment in Far East equities or those of companies that derive significant revenue or profit from the Far East involves a greater degree of risk than that usually associated with investment in the securities in major securities markets. The securities that the Company owns may be considered speculative because of this higher degree of risk. These risks include:

Ordinary Shares

The market price and the realisable value of the Ordinary shares, as well as being affected by their underlying net asset value, also take into account supply and demand for the Ordinary shares, market conditions and general investor sentiment. As such, the market value and the realisable value of the Ordinary shares may fluctuate and vary considerably from the net asset value of the Ordinary shares and investors may not be able to realise the value of their original investment. 

Dividends

The Company will only pay dividends on the Ordinary shares to the extent that it has profits available for that purpose. The ability of the Company to pay any dividends in respect of the Ordinary shares will depend primarily on the level of income received from its investments. Accordingly, the amount of the dividends paid to Shareholders may fluctuate.

Borrowings

Whilst the use of borrowings should enhance the total return on the Ordinary shares where the return on the Company's underlying assets is rising and exceeds the cost of borrowing, it will have the opposite effect where the underlying return is less than the cost of borrowing, further reducing the total return on the Ordinary shares.

Market Risks

The Company's investments are subject to normal market fluctuations and the risks inherent in the purchase, holding or selling of securities, and there can be no assurance that appreciation in the value of those investments will occur. Investment in emerging securities markets in the Asia Pacific region involves a greater degree of risk than that usually associated with investment in more developed securities markets.

Foreign Exchange Risks

The Company accounts for its activities and reports its results in sterling while investments are made and realised in other currencies. It is not the Company's present intention to engage in currency hedging, although it reserves the right to do so. Accordingly, the movement of exchange rates between sterling and the other currencies in which the Company's investments are denominated or its borrowings are drawn down may have a material effect, unfavourable as well as favourable, on the returns otherwise experienced on the investments made by the Company.

Taxation and Exchange Controls

Any change in the Company's tax status or in taxation legislation (including the tax treatment of dividends or other investment income received by the Company) could affect the value of the investments held by the Company, affect the Company's ability to provide returns to Shareholders or alter the post-tax returns to Shareholders.

The related party transactions during the period are disclosed in the notes to the accounts. There have been no related party transactions that have had a material affect on the financial position of the Company during the period.

Directors' Responsibilities

The Directors are responsible for preparing the half-yearly financial report in accordance with applicable law 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 the statement 'Half- Yearly Financial Reports' issued by the UK Accounting Standards Board; 

• the Interim Board Report (constituting the interim management report) includes a fair review of the information required by rule 4.2.7R of the Disclosure 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 so do).

The half-yearly financial report for the six months to 31 October 2008 comprises the Interim Board Report, the Directors' Responsibility Statement and a condensed set of financial statements. 

Alan Henderson

Chairman

19 December 2008

  INCOME STATEMENT 

		Six months ended			Six months ended
		31 October 2008			31 October 2007
		(unaudited)			(unaudited)
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
(Losses)/gains on investments		-	(56,724)	(56,724)	-	26,520	26,520
Income	2	2,875	-	2,875	2,369	-	2,369
Investment management fee		(285)	(285)	(570)	(322)	(322)	(644)
Administrative expenses		(311)	-	(311)	(305)	-	(305)
Exchange (losses)/gains		-	(2,708)	(2,708)	-	230	230
		________	________	________	________	________	________
Net return before finance costs and taxation		2,279	(59,717)	(57,438)	1,742	26,428	28,170
Interest payable and similar charges		(78)	(78)	(156)	(91)	(91)	(182)
		________	________	________	________	________	________
Net return on ordinary activities before taxation		2,201	(59,795)	(57,594)	1,651	26,337	27,988
Taxation on ordinary activities	3	(616)	102	(514)	(483)	124	(359)
		________	________	________	________	________	________
Return on ordinary activities after taxation		1,585	(59,693)	(58,108)	1,168	26,461	27,629
		________	________	________	________	________	________
Return per Ordinary share (pence):	5	6.36	(239.64)	(233.28)	4.60	104.23	108.83
		________	________	________	________	________	________
The total column of this statement represents the profit and loss account of the Company. A Statement of Total Recognised Gains and Losses has been prepared as all gains and losses have been reflected in the Income Statement. All revenue and capital items in the above statement derive from continuing operations.

  INCOME STATEMENT (Cont'd)

		Year ended
		30 April 2008
		(audited)
		Revenue	Capital	Total
	Notes	£'000	£'000	£'000
Gains on investments		-	24,288	24,288
Income	2	4,301	-	4,301
Investment management fee		(652)	(652)	(1,304)
Administrative expenses		(611)	-	(611)
Exchange losses		-	(169)	(169)
		________	________	________
Net return before finance costs and taxation		3,038	23,467	26,505
Interest payable and similar charges		(189)	(189)	(378)
		________	________	________
Net return on ordinary activities before taxation		2,849	23,278	26,127
Taxation on ordinary activities		(797)	251	(546)
		________	________	________
Return on ordinary activities after taxation		2,052	23,529	25,581
		________	________	________
Return per Ordinary share (pence):	4	8.14	93.37	101.51
		________	________	________

  BALANCE SHEET

		As at	As at	As at
		31 October 2008	31 October 2007	30 April  2008
		(unaudited)	(unaudited)	(audited)
	Notes	£'000	£'000	£'000
Non-current assets
Investments at fair value through profit or loss		114,472	169,331	165,212
		________	________	________
Current assets
Debtors		225	733	797
Cash at bank and in hand		1,535	3,147	5,353
		________	________	________
		1,760	3,880	6,150
		________	________	________
Creditors: amounts falling due within one year
Foreign currency loans		(14,007)	(6,627)	(9,723)
Other creditors		(810)	(1,004)	(510)
		________	________	________
		(14,817)	(7,631)	(10,233)
		________	________	________
Net current liabilities		(13,057)	(3,751)	(4,083)
		________	________	________
Total assets less current liabilities		101,415	165,580	161,129
Provision for liabilities and charges		(25)	(18)	(136)
		________	________	________
Net assets		101,390	165,562	160,993
		________	________	________
Share capital and reserves
Called-up share capital		6,347	6,347	6,347
Share premium account		17,955	17,955	17,955
Special reserve		11,617	14,138	11,617
Capital redemption reserve		10,207	10,207	10,207
Capital reserve	8	49,119	111,744	108,812
Revenue reserve		6,145	5,171	6,055
		________	________	________
Equity Shareholders' funds		101,390	165,562	160,993
		________	________	________
Net asset value per Ordinary share (pence):	6	407.04	652.15	646.31
		________	________	________

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

Six months ended 31 October 2008 (unaudited)

			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 2008		6,347	17,955	11,617	10,207	108,812	6,055	160,993
Return on ordinary activities after taxation		-	-	-	-	(59,693)	1,585	(58,108)
Dividend paid (Final 2008 - 6.0p)	4	-	-	-	-	-	(1,495)	(1,495)
		______	________	_______	________	_______	_______	_______
Balance at 31 October 2008		6,347	17,955	11,617	10,207	49,119	6,145	101,390
		______	________	_______	________	_______	_______	_______
Six months ended 31 October 2007 (unaudited)
			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 2007		6,347	17,955	14,138	10,207	85,283	5,412	139,342
Return on ordinary activities after taxation		-	-	-	-	26,461	1,168	27,629
Dividend paid (Final 2007 - 5.55p)	4	-	-	-	-	-	(1,409)	(1,409)
		______	________	_______	________	_______	_______	_______
Balance at 31 October 2007		6,347	17,955	14,138	10,207	111,744	5,171	165,562
		______	________	_______	________	_______	_______	_______
Year ended 30 April 2008 (audited)
			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 2007		6,347	17,955	14,138	10,207	85,283	5,412	139,342
Return on ordinary activities after taxation		-	-	-	-	23,529	2,052	25,581
Purchase of own shares		-	-	(2,521)	-	-	-	(2,521)
Dividend paid (Final 2006 - 5.55p)	4	-	-	-	-	-	(1,409)	(1,409)
		______	________	_______	________	_______	_______	_______
Balance at 30 April 2008		6,347	17,955	11,617	10,207	108,812	6,055	160,993
		______	________	_______	________	_______	_______	_______

CASH FLOW STATEMENT

		Six months ended	Six months ended	Year  ended
		31 October 2008	31 October 2007	30 April  2008
		(unaudited)	(unaudited)	(audited)
	Notes	£'000	£'000	£'000
Net return on ordinary activities before finance costs and taxation		(57,438)	28,170	26,505
Adjustment for:
Losses/(gains) on investments		56,724	(26,520)	(24,288)
Exchange losses/(gains) charged to capital		2,708	(230)	169
Decrease in accrued income		614	148	62
Decrease in other debtors		6	4	23
(Decrease)/increase in creditors		(81)	5	(5)
Overseas withholding tax suffered		(146)	(134)	(202)
Scrip dividends included in investment income		(4)	(3)	(3)
		________	________	________
Net cash inflow from operating activities		2,383	1,440	2,261
Net cash outflow from servicing of finance		(118)	(41)	(364)
Corporation tax paid		(157)	(154)	(362)
Net cash (outflow)/inflow from financial investment		(6,007)	1,931	3,671
Equity dividends paid	4	(1,495)	(1,409)	(1,409)
		________	________	________
Net cash (outflow)/inflow before use of liquid resources and financing		(5,394)	1,767	3,797
Net cash inflow/(outflow) from financing		1,783	-	(102)
		________	________	________
(Decrease)/increase in cash		(3,611)	1,767	3,695
		________	________	________
Reconciliation of net cash flow to movements in net debt
(Decrease)/increase in cash as above		(3,611)	1,767	3,695
Drawdown of loan		(1,783)	-	(2,419)
Exchange movements		(2,708)	230	(169)
		________	________	________
Movement in net debt in the period		(8,102)	1,997	1,107
Opening net debt		(4,370)	(5,477)	(5,477)
		________	________	________
Closing net debt		(12,472)	(3,480)	(4,370)
		________	________	________
Represented by:
Cash at bank		1,535	3,147	5,353
Debt falling due within one year		(14,007)	(6,627)	(9,723)
		________	________	________
		(12,472)	(3,480)	(4,370)
		________	________	________

Notes to the Accounts

1.    Accounting policies

	(a)	Basis of accounting
		The financial statements have been prepared under the historical cost convention, as modified to include the revaluation of investments and in accordance with applicable UK Accounting Standards, with pronouncements on half-yearly reporting issued by the Accounting Standards Board and with the Statement of Recommended Practice for 'Financial Statements of Investment Trust Companies' (December 2005). They have also been prepared on the assumption that approval as an investment trust will continue to be granted.
		The financial statements and the net asset value per share figures have been prepared in accordance with UK Generally Accepted Accounting Practice ('UK GAAP').
		The interim accounts have been prepared using the same accounting policies as the preceding annual accounts.
	(b)	Dividends payable
		Dividends are recognised in the period in which they are paid.
	(c)	Valuation of investments
		Listed investments have been designated upon initial recognition as fair value through profit or loss. Investments are recognised and de-recognised on the trade date at cost. Subsequent to initial recognition, investments are valued at fair value which for listed investments is deemed to be bid market prices. Gains and losses arising from changes in fair value are included as a capital item in the Income Statement and are ultimately recognised in the capital reserve.
	(d)	Capital reserves
		Gains or losses on realisation of investments and changes in fair values of investments which are readily convertible to cash, without accepting adverse terms, are transferred to the capital reserve. The capital element of the management fee along with any associated irrecoverable VAT and relevant finance costs are charged to this reserve. Any associated tax relief is also credited to this reserve.
	(e)	Allocation of expenses
		Expenses are charged to capital when they are incurred in connection with the maintenance or enhancement of the value of investments. In this respect the investment management fee and relevant finance costs are allocated between revenue and capital in line with the Board's expectation of returns from the Company's investments over the long term in the form of revenue and capital respectively.

		Six months ended	Six months ended	Year  ended
		31 October 2008	31 October 2007	30 April 2008
2.	Income	£'000	£'000	£'000
	Income from investments
	UK dividend income	164	152	255
	Overseas dividends	2,591	2,171	3,871
	Scrip dividends	4	3	3
		________	________	________
		2,759	2,326	4,129
		________	________	________
		Six months ended	Six months ended	Year  ended
		31 October 2008	31 October 2007	30 April 2008
		£'000	£'000	£'000
	Other income
	Deposit interest	86	24	114
	Stock lending income	30	19	58
		________	________	________
		116	43	172
		________	________	________
	Total income	2,875	2,369	4,301
		________	________	________

3.	Taxation
	The taxation expense reflected in the Income Statement is based on management's best estimate of the weighted average annual income tax rate expected for the full financial year. The estimated average annual tax rate used for the year to 30 April 2009 is 28%.

4.	Dividends
	Ordinary dividends on equity shares deducted from reserves are analysed below:
		Six months  ended	Six months ended	Year  ended
		31 October 2008	31 October 2007	30 April 2008
		£'000	£'000	£'000
	2007 final dividend - 5.55p	-	1,409	1,409
	2008 final dividend - 6.0p	1,495	-	-
		________	________	________
		1,495	1,409	1,409
		________	________	________
	In accordance with stated policy no interim dividend has been declared for the period (2007 - nil).

		Six months  ended	Six months ended	Year  ended
		31 October 2008	31 October 2007	30 April 2008
5.	Return per Ordinary share	p	p	p
	Revenue return	6.36	4.60	8.14
	Capital return	(239.64)	104.23	93.37
		________	________	________
	Total return	(233.28)	108.83	101.51
		________	________	________
	The figures above are based on the following attributable assets:
		£'000	£'000	£'000
	Revenue return	1,585	1,168	2,052
	Capital return	(59,693)	26,461	23,529
		________	________	________
	Total return	(58,108)	27,629	25,581
		________	________	________
	Weighted average number of Ordinary shares in issue	24,909,402	25,387,133	25,200,610

		As at	As at	As at
6.	Net asset value per share	31 October 2008	31 October 2007	30 April 2008
	Attributable net assets (£'000)	101,390	165,562	160,993
	Number of Ordinary shares in issue	24,909,402	25,387,133	24,909,402
	Net asset value per Ordinary share (p)	407.04	652.15	646.31

7.	Transaction costs During the six months ended 31 October 2008 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 Income Statement. The total costs were as follows:
		Six months  ended	Six months  ended	Year  ended
		31 October 2008	31 October 2007	30 April 2008
		£'000	£'000	£'000
	Purchases	52	19	40
	Sales	15	17	31
		________	________	________
		67	36	71
		________	________	________

		Capital reserve  - realised	Capital reserve  - unrealised	Total capital reserve
8.	Capital reserve	£'000	£'000	£'000
	Six months ended 31 October 2008
	At 1 May 2008	94,723	14,089	108,812
	Movement in fair value gains	(47,010)	(9,714)	(56,724)
	Foreign exchange movement	(2,708)	-	(2,708)
	Capital expenses	(261)	-	(261)
		________	________	________
	At 31 October 2008	44,744	4,375	49,119
		________	________	________
	Six months ended 31 October 2007
	At 1 May 2007	15,638	69,645	85,283
	Reclassification of reserves	56,875	(56,875)	-
	Movement in fair value gains	24,118	2,402	26,520
	Foreign exchange movement	230	-	230
	Capital expenses	(289)	-	(289)
		________	________	________
	At 31 October 2007	96,572	15,172	111,744
		________	________	________
	Year ended 30 April 2008
	At 1 May 2007	15,638	69,645	85,283
	Reclassification of reserves	56,875	(56,875)	-
	Movement in fair value gains	22,969	1,319	24,288
	Foreign exchange movement	(169)	-	(169)
	Capital expenses	(590)	-	(590)
		________	________	________
	At 30 April 2008	94,723	14,089	108,812
		________	________	________

9.	Related party transactions
	Mr H Young is a director of Aberdeen Asset Management Asia Limited ('AAM Asia'), which is a subsidiary of Aberdeen Asset Management PLC ('AAM'). AAM Asia has an agreement to provide management services to the Company and AAM has an agreement to provide marketing services to the Company.
	The management fee is payable monthly in arrears based on an annual amount of 1% of the net asset value of the Company valued monthly. During the period £570,000 (2007 - £644,000) of management fees were paid and payable, with a balance of £157,000 (2007 - £228,000) being payable to AAM Asia at the period end.
	The investment management fees are charged 50% to revenue and 50% to capital.
	The marketing fee is based on a current annual amount of £125,000, payable quarterly in arrears. During the period £63,000 (2007 - £48,000) of fees were paid and payable, with a balance of £11,000 (2007 - £8,000) being payable to AAM at the period end.

10.

The financial information in this report comprises non-statutory accounts as defined in Sections 434-436 of the Companies Act 2006. The financial information for the year ended 30 April 2008 has been extracted from published accounts that have been delivered to the Registrar of Companies and on which the report of the auditors was unqualified under Section 235 of the Companies Act 1985. The interim accounts have been prepared using the same accounting policies as the preceding annual accounts.

11.	This Half-Yearly Report was approved by the Board on 19 December 2008.
12.	The Half-Yearly Financial Report will shortly be available from the Company's website (www.newdawn-trust.co.uk) and will be posted to shareholders in January 2009.

Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise and may be affected by exchange rate movements. Investors may not get back the amount they originally invested.

For Aberdeen New Dawn Investment Trust PLC

Aberdeen Asset Management PLC

Secretaries

19 December 2008

Investment Portfolio
By value at 31 October 2008
		Valuation	Total assets
Company	Country	£'000	%
Aberdeen Global India Opportunities Fund	India	14,408	12.5
QBE Insurance Group	Australia	5,200	4.5
Samsung Electronics Pref	South Korea	4,753	4.1
United Overseas Bank	Singapore	4,453	3.9
Jardine Strategic Holdings	Hong Kong	4,399	3.8
Taiwan Semiconductor Manufacturing Company	Taiwan	4,165	3.6
Oversea-Chinese Banking Corporation	Singapore	4,087	3.5
Rio Tinto	Australia	3,866	3.4
Swire Pacific 'B'	Hong Kong	3,833	3.3
China Mobile	China	3,598	3.1
Top ten investments		52,762	45.7
Singapore Technologies Engineering	Singapore	3,591	3.1
Singapore Telecommunications	Singapore	3,446	3.0
Standard Chartered	Hong Kong	3,400	2.9
Unilever Indonesia	Indonesia	3,242	2.8
City Developments	Singapore	2,890	2.5
Taiwan Mobile	Taiwan	2,540	2.2
PTT Exploration and Production	Thailand	2,527	2.2
PetroChina	China	2,522	2.2
Sun Hung Kai Properties	Hong Kong	2,419	2.1
Shinsegae Company	South Korea	2,315	2.0
Top twenty investments		81,654	70.7
Singapore Airlines	Singapore	2,312	2.0
Public Bank Berhard	Malaysia	2,274	2.0
Ayala Land	Philippines	2,239	1.9
Siam Cement	Thailand	2,017	1.8
Dairy Farm International	Hong Kong	1,850	1.6
Aberdeen Asian Smaller Companies Inv. Trust	Other Asia	1,845	1.6
Hang Lung Properties	Hong Kong	1,807	1.6
Fraser and Neave Limited	Singapore	1,765	1.5
Hang Lung Group	Hong Kong	1,672	1.5
Venture Corp	Singapore	1,524	1.3
Top thirty investments		100,959	87.5
Bumiputra Commerce	Malaysia	1,382	1.2
ASM Pacific Technology	Hong Kong	1,250	1.1
New India Inv. Trust	India	1,208	1.1
M.P. Evans Group	Other Asia	1,206	1.0
POS Malaysia Berhad	Malaysia	1,188	1.0
Wing Hang Bank	Hong Kong	1,119	1.0
Dah Sing Financial	Hong Kong	723	0.6
Hyundai Motor Pref	South Korea	633	0.6
Tabcorp Holdings	Australia	622	0.5
Pusan Bank	South Korea	614	0.5
Top forty investments		110,904	96.1
Multi Bintang Indonesia	Indonesia	607	0.5
Aitken Spence	Sri Lanka	590	0.5
BOC Pakistan	Pakistan	538	0.5
Giordano International	Hong Kong	441	0.4
DFCC Bank	Sri Lanka	410	0.4
Daegu Bank	South Korea	368	0.3
Keells (John)	Sri Lanka	348	0.3
National Development Bank	Sri Lanka	266	0.2
Total investments		114,472	99.2
Net current assets {A}		950	0.8
Total assets		115,422	100.0
{A} Excluding bank loans of £14,007,000.
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 2008 which comprises the Condensed Income Statement, Condensed Balance Sheet, Reconciliation of Movements in Shareholders' funds, Condensed Cash Flow Statement and the related explanatory notes. 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 the terms of our engagement to assist the company in meeting the requirements of the Disclosure and Transparency Rules ('the DTR') of the UK's Financial Services Authority ('the UK FSA'). 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.

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 FSA.  

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). The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with the Statement 'Half-Yearly Financial Reports' as issued by the UK Accounting Standards Board.

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 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. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) 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.

Review 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 2008 is not prepared, in all material respects, in accordance with the Statement 'Half-Yearly Financial Reports' as issued by the UK Accounting Standards Board and the DTR of the UK FSA.  

KPMG Audit Plc

Chartered Accountants
Edinburgh

19 December 2008

 

END

 

 

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