Half Yearly Report

RNS Number : 7315V

Aberdeen New Dawn Invest Trust PLC

17 December 2013

 



ABERDEEN NEW DAWN INVESTMENT TRUST PLC

HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 OCTOBER 2013

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 2013.

Results and Dividend

During the six months to 31 October 2013, the net asset value of your Company fell by 4.4% to 198.9p, trailing the benchmark MSCI AC Asia Pacific ex-Japan Index, which declined by 1.8% (both on a total return basis). The share price fell by 7.9% (also on a total return basis) to 181.0p, reflecting a widening of the discount from 5.5% to 9.0%. 

Your Board declares an unchanged interim dividend for the current year of 1.0p net per Ordinary share, which will be paid on 31 January 2014 to shareholders on the register on 10 January 2014 (the relevant ex-dividend date being 8 January 2014). Shareholders should be aware that, as in previous years, the level of future dividends will depend on the future income of the portfolio.

Share Sub-Division

At the Company's Annual General Meeting held earlier in the year, a resolution was passed to sub-divide each of the Ordinary shares of 25p into five Ordinary shares of 5p which took effect on the close of business on 2 September 2013.

Overview

Asian equities had a volatile six months and were down at the end of the period under review. The recurring refrain of quantitative easing that played out in the US was a key driver of this volatility. The Federal Reserve's indication in May that it might start to reduce its asset purchase programme led to a sharp sell-off in emerging markets. In addition, fears of a slowdown in the Chinese economy weighed on emerging Asian markets that rely on the mainland to absorb their exports. Towards the period-end, however, stock markets recouped some of their losses following a last-minute deal in the US to reopen the government and extend the debt ceiling, which buoyed global sentiment.

Within Asia, we saw a divergence of market performance. Export-oriented North Asian markets, such as China and Korea, held up relatively well, boosted by optimism that developed markets were recovering. In contrast, their Southeast Asian counterparts disappointed. Prior star performers, including Thailand and the Philippines, ended the period lower as investors curbed their appetite for risk. Indonesia and India also lagged, as their growth slowed and large current account deficits exacerbated weakness in their currencies.

On the economic front, signs of resilience emerged towards the end of the period. China's third-quarter GDP rose by an encouraging 7.8%, while its exports and manufacturing appeared to gain momentum. Korea's growth exceeded estimates even though the strengthening won weighed on export competitiveness, while Singapore lifted its full-year forecast after third-quarter growth was underpinned by a recovery in manufacturing. Indonesia and Thailand posted trade surpluses in August, which provided some relief to their currencies. 

Portfolio

Your Company's performance over the period was affected by the relatively small exposure to select markets in North Asia in favour of its neighbours to the South. It is worth noting that the Company's positioning in individual markets is determined by where your Manager finds the best companies. For instance, due to China's minimal public reporting requirements, your Manager prefers to gain exposure to the mainland via Hong Kong-listed stocks, which generally boast better standards of transparency and corporate governance. 

However, gains from the significant exposure to the resilient Hong Kong market were tempered by the mixed performance of your Company's holdings there. Financial companies including AIA Group and HSBC did well; in particular, shares of family-run Wing Hang Bank rose after its major shareholders received takeover offers from potential buyers looking to grow their presence in China. Conversely, government measures to rein in prices in the overheated housing market weighed on property holdings, such as Hang Lung Group. Singapore's City Developments saw similar measures in the city-state.

Regional conglomerate Jardine Strategic also saw weaker performance. This was in part due to its exposure to the economic slowdown and currency weakness in Indonesia via Astra International, a conglomerate with interests across the auto, financial services and commodities sectors, and in part due to weakness in its retailing business, Dairy Farm. That said, your Manager believes that the company remains well-positioned to benefit from Indonesia's growing middle class and favourable demographics over the longer term.

Against this, both Korean holdings performed well. Samsung Electronics, in particular, posted record profits as it continued to gain market share in the smartphone arena, while its semiconductor business recovered. Meanwhile, discount retailer E-Mart enjoyed resilient sales growth.

Another bright spot for your Company's performance was Australia. The lack of exposure to lenders such as Westpac Banking and Commonwealth Bank of Australia was positive. Although the Australian banking sector had previously been favoured by investors for its higher yield, sentiment was dampened by the prospect of Fed tapering and the spectre of higher interest rates. Additionally, resource-related holdings, including mining giants Rio Tinto and BHP Billiton, bounced back as recovering Chinese demand lifted the outlook for commodities.

In portfolio activity, your Manager introduced Singapore-listed lender DBS Group, which is attractively valued, well-capitalised and focused on consumer lending in Southeast Asia's higher-growth markets. Your Manager also added to several stocks, including City Developments, on favourable valuations. Against this, positions in companies such as Samsung Electronics, Taiwan Semiconductor Manufacturing Company and ST Engineering were pared on the back of relative share price strength.

Gearing

At the beginning of the six-month period ended 31 October 2013, the Company had gearing equivalent to approximately £20.8 million. These were drawn as follows: HKD154.1 million (equivalent to £12.7 million), USD8.7 million (equivalent to approximately £5.6 million) and £2.5 million.  At the end of the period, and at the time of writing, these amounts remain drawn under the new facility (representing approximately £20.3 million, or 8.2% of the net assets). At the end of the period, the Company held a cash balance equivalent to £3.6 million, resulting in net gearing of 6.7%.

Outlook

Despite the slowdown in growth, Asian economies are still in good shape, especially when compared with the slow pace of recovery in many of their Western counterparts. Corporate and government balance sheets are mostly solid, while an increasingly affluent middle class bodes well for future consumption. Your Company continues to hold some of the best-managed companies within the region, and your Manager's focus on corporate fundamentals will position the portfolio well against a potentially less supportive external backdrop.

Within the region, developments in China will be closely watched. Investors have been dissecting the new economic framework that emerged from a recently-concluded meeting of top leaders. We are guardedly optimistic about these reform efforts, as the commitment to a more market-oriented economy appears to be a step in the right direction. Nevertheless, the more meaningful reforms will likely take years to realise, and their implementation is likely to be challenging in the face of entrenched vested interests.

Although there have been signs of recovery, Asian markets may continue to be liquidity-led and susceptible to shifts in investor sentiment in the near term. The withdrawal of easy money from the US, for example, could trigger further volatility. It can also be argued that asset prices in some Asian markets have been inflated artificially as a result of quantitative easing. As such, a scale back in expansionary monetary policy would be followed by a renewed focus on company fundamentals, and this should benefit the quality holdings in your portfolio.

David Shearer

Chairman

17 December 2013

Principal Risks and Uncertainties and Related Party Transactions

The Board regularly reviews major strategic risks and sets out delegated controls designed to manage those risks.

Aside from the risks associated with investment in Asia, the key risks related to investment strategy, including inappropriate asset allocation or gearing, are managed through a defined investment policy, specific guidelines and restrictions and by the process of oversight at each Board meeting as outlined above. Operational disruption, accounting and legal risks are also covered at least annually and regulatory compliance is reviewed at each Board meeting.

The major risks associated with the Company are:

•      Resource risk: like most other investment trusts, the Company has no employees. The Company, therefore, relies on services provided by third parties, including, in particular, the Manager, to which responsibility for the management of the Company's portfolio has been delegated under an investment management agreement. The terms of the Agreement cover the necessary duties and conditions expected of the Manager. The Board reviews the performance of the Manager on a regular basis, and its compliance with the Agreement formally on an annual basis.

•      Investment and market risk: the Board continually monitors the investment policy of the Company, taking account of stockmarket factors, and reviews the Company's performance compared to its benchmark index.

•      Gearing risk: the Company currently uses gearing in the form of bank loans of HKD154.1 million (equivalent to £12.4 million), USD8.7 million (equivalent to £5.4 million) and £2.5 million under its loan facility of £30.0 million.

•      Regulatory risk: the Company operates in a complex regulatory environment and faces a number of regulatory risks. Serious breaches of applicable regulations could lead to a number of detrimental outcomes and reputational damage. The Audit and Risk Committee monitors compliance with regulations by reviewing internal control reports from the Manager.

The particular risks of investment in Asia include:

•      greater risk of social, political and economic instability; the small size of the markets for securities of emerging markets issuers and associated low volumes of trading give rise to price volatility and a lack of liquidity;

•      certain national policies which may restrict the investment opportunities available in respect of a fund, including restrictions on investing in issuers or industries deemed sensitive to national interests; changes in taxation laws and/or rates which may affect the value of the Company's investments;

•      the absence in some markets of developed legal structures governing private or foreign investment and private property leading to supervision and regulation; and changes in government which may have an adverse effect on economic reform. Companies in the Asia-Pacific region are not, in all cases, subject to the equivalent accounting, auditing and financial standards of those in the United Kingdom; and

•      currency fluctuations which may affect the value of the Company's investments and the income derived therefrom.

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 effect 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 UK Listing Authority 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 2013 comprises the Interim Board Report, the Directors' Responsibility Statement and a condensed set of Financial Statements.

David Shearer

Chairman

17 December 2013

INCOME STATEMENT

		Six months ended			Six months ended
		31 October 2013			31 October 2012
		(unaudited)			(unaudited)
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
(Losses)/gains on investments		-	(14,266)	(14,266)	-	10,001	10,001
Income	2	3,979	-	3,979	3,757	-	3,757
Investment management fee		(481)	(481)	(962)	(425)	(425)	(850)
Administrative expenses		(424)	-	(424)	(379)	-	(379)
Exchange gains/(losses)		-	495	495	-	(62)	(62)
		_______	_______	_______	_______	_______	_______
Net return before finance costs and taxation		3,074	(14,252)	(11,178)	2,953	9,514	12,467
Interest payable and similar charges		(95)	(95)	(190)	(98)	(98)	(196)
		_______	_______	_______	_______	_______	_______
Net return on ordinary activities before taxation		2,979	(14,347)	(11,368)	2,855	9,416	12,271
Taxation		(137)	(1)	(138)	(129)	-	(129)
		_______	_______	_______	_______	_______	_______
Return on ordinary activities after taxation		2,842	(14,348)	(11,506)	2,726	9,416	12,142
		_______	_______	_______	_______	_______	_______
Return per Ordinary share (pence) 1	4	2.28	(11.52)	(9.24)	2.19	7.56	9.75
		_______	_______	_______	_______	_______	_______

1 Comparative figures for the six months ended 31 October 2012 and year ended 30 April 2013 have been restated due to the sub-division of each existing Ordinary share of 25p into five Ordinary shares of 5p each on 2 September 2013.

The total column of this statement represents the profit and loss account of the Company.

A Statement of Total Recognised Gains and Losses has not 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 2013
		(audited)
		Revenue	Capital	Total
	Notes	£'000	£'000	£'000
(Losses)/gains on investments		-	38,566	38,566
Income	2	6,562	-	6,562
Investment management fee		(903)	(903)	(1,806)
Administrative expenses		(715)	-	(715)
Exchange gains/(losses)		-	(607)	(607)
		________	________	________
Net return before finance costs and taxation		4,944	37,056	42,000
Interest payable and similar charges		(191)	(191)	(382)
		________	________	________
Net return on ordinary activities before taxation		4,753	36,865	41,618
Taxation		93	-	93
		________	________	________
Return on ordinary activities after taxation		4,846	36,865	41,711
		________	________	________
Return per Ordinary share (pence) 1	4	3.89	29.60	33.49
		________	________	________

BALANCE SHEET

		As at	As at	As at
		31 October 2013	31 October 2012	30 April 2013
		(unaudited)	(unaudited)	(audited)
	Notes	£'000	£'000	£'000
Non-current assets
Investments at fair value through profit or loss		264,601	250,646	280,011
		________	________	________
Current assets
Cash at bank and in hand		3,623	3,710	1,245
Loans and receivables		335	300	2,238
		________	________	________
		3,958	4,010	3,483
		________	________	________
Creditors: amounts falling due within one year
Loans		(20,274)	(20,230)	(20,835)
Other creditors		(517)	(486)	(396)
		________	________	________
		(20,791)	(20,716)	(21,231)
		________	________	________
Net current liabilities		(16,833)	(16,706)	(17,748)
		________	________	________
Net assets		247,768	233,940	262,263
		________	________	________
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	11,617	11,617
Capital redemption reserve		10,207	10,207	10,207
Capital reserve	5	190,872	177,771	205,220
Revenue reserve		10,770	10,043	10,917
		________	________	________
Equity shareholders' funds		247,768	233,940	262,263
		________	________	________
Net asset value per Ordinary share (pence) 1	6	198.94	187.83	210.57
		________	________	________
1 Comparative figures for the six months ended 31 October 2012 and year ended 30 April 2013 have been restated due to the sub-division of each existing Ordinary share of 25p into five Ordinary shares of 5p each on 2 September 2013.

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

Six months ended 31 October 2013 (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 2013		6,347	17,955	11,617	10,207	205,220	10,917	262,263
Return on ordinary activities after taxation		-	-	-	-	(14,348)	2,842	(11,506)
Dividend paid	3	-	-	-	-	-	(2,989)	(2,989)
		_____	______	______	_______	______	______	_______
Balance at 31 October 2013		6,347	17,955	11,617	10,207	190,872	10,770	247,768
		_____	______	______	_______	______	______	_______
Six months ended 31 October 2012 (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 2012		6,347	17,955	11,617	10,207	168,355	11,427	225,908
Return on ordinary activities after taxation		-	-	-	-	9,416	2,726	12,142
Dividend paid	3	-	-	-	-	-	(4,110)	(4,110)
		_____	______	______	_______	______	______	_______
Balance at 31 October 2012		6,347	17,955	11,617	10,207	177,771	10,043	233,940
		_____	______	______	_______	______	______	_______
Year ended 30 April 2013 (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 2012		6,347	17,955	11,617	10,207	168,355	11,427	225,908
Return on ordinary activities after taxation		-	-	-	-	36,865	4,846	41,711
Dividends paid	3	-	-	-	-	-	(5,356)	(5,356)
		_____	______	______	_______	______	______	_______
Balance at 30 April 2013		6,347	17,955	11,617	10,207	205,220	10,917	262,263
		_____	______	______	_______	______	______	_______

CASH FLOW STATEMENT

		Six months ended	Six months ended	Year ended
		31 October 2013	31 October 2012	30 April 2013
		(unaudited)	(unaudited)	(audited)
	Notes	£'000	£'000	£'000
Net return on ordinary activities before finance costs and taxation		(11,178)	12,467	42,000
Adjustment for:
Losses/(gains) on investments held at fair value through profit or loss		14,266	(10,001)	(38,566)
Exchange (gains)/losses charged to capital		(495)	62	607
Decrease/(increase) in accrued income		1,483	1,019	(424)
Decrease in other debtors		21	7	16
Increase/(decrease) in creditors		175	40	(51)
Stock and scrip dividends included in investment income		(285)	-	-
		__________	__________	__________
Net cash inflow from operating activities		3,987	3,594	3,582
Servicing of finance
Interest paid		(184)	(189)	(387)
Taxation
Overseas withholding tax suffered		(44)	(127)	(188)
Financial investment
Purchases of investments		(8,205)	(9,204)	(16,037)
Sales of investments		9,879	9,886	15,711
		__________	__________	__________
Net cash inflow/(outflow) from financial investment		1,674	682	(326)
Equity dividends paid	3	(2,989)	(4,110)	(5,356)
		__________	__________	__________
Net cash inflow/(outflow) before financing		2,444	(150)	(2,675)
Financing
Drawdown of loan		-	2,566	3,061
		__________	__________	__________
Increase in cash		2,444	2,416	386
		__________	__________	__________
Reconciliation of net cash flow to movements in net debt
Increase in cash as above		2,444	2,416	386
Drawdown of loan		-	(2,566)	(3,061)
Exchange movements		495	(62)	(607)
		__________	__________	__________
Movement in net debt in the period		2,939	(212)	(3,282)
Opening net debt		(19,590)	(16,308)	(16,308)
		__________	__________	__________
Closing net debt		(16,651)	(16,520)	(19,590)
		__________	__________	__________
Represented by:
Cash at bank		3,623	3,710	1,245
Debt falling due within one year		(20,274)	(20,230)	(20,835)
		__________	__________	__________
		(16,651)	(16,520)	(19,590)
		__________	__________	__________

Notes to the Accounts

For the period ended 31 October 2013

1.	Accounting policies
	(a)	Basis of accounting
		The accounts have been prepared 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 'Financial Statements of Investment Trust Companies and Venture Capital Trusts'. They have also been prepared on the assumption that approval as an investment trust will continue to be granted. The financial statements have been prepared on a going concern basis.
		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 half-yearly financial statements 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 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 2013	31 October 2012	30 April 2013
2.	Income	£'000	£'000	£'000
	Income from investments
	UK dividend income	631	642	1,333
	UK unfranked investment income	1	-	15
	Overseas dividends	3,060	3,114	5,212
	Scrip dividends	201	-	-
	Stock dividends	84	-	-
		__________	__________	__________
		3,977	3,756	6,560
		__________	__________	__________
		Six months ended	Six months ended	Year ended
		31 October 2013	31 October 2012	30 April 2013
		£'000	£'000	£'000
	Other income
	Deposit interest	2	1	2
		__________	__________	__________
	Total income	3,979	3,757	6,562
		__________	__________	__________

3.	Dividends
	Ordinary dividends on equity shares deducted from reserves are analysed below:
		Six months ended	Six months ended	Year ended
		31 October 2013	31 October 2012	30 April 2013
		£'000	£'000	£'000
	2012 final dividend - 3.30p 1	-	4,110	4,110
	2013 interim dividend - 1.0p 1	-	-	1,246
	2013 final dividend - 2.40p 1	2,989	-	-
		__________	__________	__________
		2,989	4,110	5,356
		__________	__________	__________
	1 Rates have been restated due to the sub-division of each existing Ordinary share of 25p into five Ordinary shares of 5p each on 2 September 2013.
	An interim dividend of 1.0p per share will be paid on 31 January 2014 to shareholders on the register on 10 January 2014. The ex-dividend date will be 8 January 2014.

		Six months ended	Six months ended	Year ended
		31 October 2013	31 October 2012	30 April 2013
4.	Return per Ordinary share	p	p	p
	Revenue return	2.28	2.19	3.89
	Capital return	(11.52)	7.56	29.60
		__________	__________	__________
	Total return	(9.24)	9.751	33.491
		__________	__________	__________
	The figures above are based on the following attributable assets:
		£'000	£'000	£'000
	Revenue return	2,842	2,726	4,846
	Capital return	(14,348)	9,416	36,865
		__________	__________	__________
	Total return	(11,506)	12,142	41,711
		__________	__________	__________
	Weighted average number of Ordinary shares in issue	124,547,010	124,547,0101	124,547,0101
		_____________	_____________	_____________
	1 Comparative figures for the six months ended 31 October 2012 and year ended 30 April 2013 have been restated due to the sub-division of each existing Ordinary share of 25p into five Ordinary shares of 5p each on 2 September 2013.

5.	Capital reserve
	The capital reserve reflected in the Balance Sheet at 31 October 2013 includes gains of £136,526,000 (31 October 2012 - gains of £133,453,000; 30 April 2013 - gains of £156,780,000) which relate to the revaluation of investments held at the reporting date.

		As at	As at	As at
6.	Net asset value per share	31 October 2013	31 October 2012	30 April 2013
	Attributable net assets (£'000)	247,768	233,940	262,263
	Number of Ordinary shares in issue	124,547,010	124,547,010	124,547,010
	Net asset value per Ordinary share (p)	198.94	187.831	210.57 1
	1 Comparative figures for the six months ended 31 October 2012 and year ended 30 April 2013 have been restated due to the sub-division of each existing Ordinary share of 25p into five Ordinary shares of 5p each on 2 September 2013.

7.	Transaction costs
	During the six months ended 31 October 2013 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 2013	31 October 2012	30 April 2013
		£'000	£'000	£'000
	Purchases	12	30	52
	Sales	29	25	42
		41	55	94

8.	Transactions with the Manager
	Mr H Young is a director of Aberdeen Asset Management Asia Limited ('AAM Asia') and 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 £962,000 (2012 - £850,000) of management fees were paid and payable, with a balance of £312,000 (2012 - £289,000) being payable to AAM Asia at the period end.
	The investment management fees are charged 50% to revenue and 50% to capital.
	During the course of the period, the Company has held investments in three other funds managed by the same Manager. These holdings are disclosed in the Investment Portfolio table.
	The marketing fee is based on a current annual amount of £195,000 (2012 - £164,000), payable quarterly in arrears. During the period £109,000 (2012 - £83,000) of fees were paid and payable, with a balance of £65,000 being payable to AAM at the period end (2012 - £14,000 payable).

9.	Related party disclosure
	There were no related party transactions during the period.

10.	The financial information contained in this Half-Yearly Financial 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 2013 and 31 October 2012 have not been audited.
	The information for the year ended 30 April 2013 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies. The report of the auditors on those accounts contained no qualification or statement under Section 498 (2), (3) or (4) of the Companies Act 2006.

11.	This Half-Yearly Financial Report was approved by the Board on 17 December 2013.

The Half-yearly Report and Accounts will be posted to shareholders shortly. 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 - Secretary

17 December 2013

* 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.

Investment Portfolio
By value at 31 October 2013
		Valuation	Total assets
Company	Country	£'000	%
Aberdeen Global - Indian Equity Fund 1	India	29,115	10.8
Samsung Electronics Pref	South Korea	14,171	5.3
Oversea-Chinese Banking Corporation	Singapore	11,777	4.4
Jardine Strategic Holdings	Hong Kong	10,779	4.0
Rio Tinto 2	Australia	9,454	3.5
HSBC Holdings	Hong Kong	9,155	3.4
BHP Billiton 2	Australia	8,822	3.3
Taiwan Semiconductor Manufacturing Company	Taiwan	8,764	3.3
Ayala Land	Philippines	8,485	3.2
QBE Insurance Group	Australia	8,222	3.1
Top ten investments		118,744	44.3
United Overseas Bank	Singapore	8,009	3.0
City Developments	Singapore	7,898	2.9
Standard Chartered 2	United Kingdom	7,514	2.8
AIA Group	Hong Kong	7,337	2.7
Swire Pacific 3	Hong Kong	7,164	2.7
China Mobile	China	6,796	2.5
Singapore Technologies Engineering	Singapore	6,793	2.5
Singapore Telecommunications	Singapore	6,716	2.5
PetroChina	China	6,338	2.4
Siam Cement (Foreign)	Thailand	5,842	2.2
Top twenty investments		189,151	70.5
PTT Exploration & Production (Foreign)	Thailand	5,557	2.1
Keppel Corporation	Singapore	4,835	1.8
Woolworths	Australia	4,666	1.7
Taiwan Mobile	Taiwan	4,247	1.6
Dairy Farm International	Hong Kong	3,988	1.5
Wing Hang Bank	Hong Kong	3,716	1.4
CIMB Group	Malaysia	3,460	1.3
ASM Pacific Technology	Hong Kong	3,335	1.2
Aberdeen Asian Smaller Companies Inv. Trust 1,4	Other Asia	3,193	1.2
Public Bank Berhad (Foreign)	Malaysia	3,113	1.2
Top thirty investments		229,261	85.5
Li & Fung	Hong Kong	3,020	1.1
Hang Lung Group	Hong Kong	2,890	1.1
John Keells Holdings 5	Sri Lanka	2,869	1.1
New India Inv. Trust 1	India	2,855	1.1
Venture Corporation	Singapore	2,729	1.0
M.P. Evans Group 2	Indonesia	2,649	1.0
Swire Properties	Hong Kong	2,629	1.0
DBS Group Holdings	Singapore	2,611	1.0
E-Mart	South Korea	2,459	0.9
Unilever Indonesia	Indonesia	2,425	0.9
Top forty investments		256,397	95.7
Aitken Spence & Co.	Sri Lanka	2,422	0.9
Singapore Airlines	Singapore	2,192	0.8
Hang Lung Properties	Hong Kong	1,736	0.6
DFCC Bank	Sri Lanka	1,053	0.4
National Development Bank	Sri Lanka	676	0.3
Keppel REIT	Singapore	125	-
Total investments		264,601	98.7
Net current assets 6		3,441	1.3
Total assets		268,042	100.0
1      Managed by the Manager of the Company.
2      London listed shares held.
3      Holding merges two equity holdings, split as follows: B shares £6,705,000 and A shares £459,000.
4      Holding merges equity holding and CULS, split as follows: equity shares £2,659,000 and CULS £534,000.
5      Holding merges equity holding and warrants, split as follows: equity shares £2,833,000 and warrants £36,000.
6      Excluding bank loans of £20,274,000.
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 2013 which comprises the Income Statement, Balance Sheet, the Reconciliation of Movements in Shareholder's Funds, 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 Conduct Authority ("the UK FCA"). Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached.

Directors' Responsibilities

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

As disclosed in note 1, the annual financial statements of the Company are prepared in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice). The condensed set of financial statements included in this Half-Yearly Financial Report have 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 2013 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 FCA. 

Philip Merchant

For and on behalf of KPMG LLP

Chartered Accountants

Edinburgh

17 December 2013

 

END

 

 

IR GGGMGPUPWGUM