Half-year Report

RNS Number : 5361S

Aberdeen New Dawn Invest Trust PLC

22 December 2016

 

ABERDEEN NEW DAWN INVESTMENT TRUST PLC

HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 OCTOBER 2016

Investment Objective

To provide shareholders with a high level of capital growth through equity investment in the Asia Pacific countries ex Japan.

Benchmark

Currency-adjusted MSCI All Countries Asia Pacific ex Japan Index.

FINANCIAL HIGHLIGHTS

	31 October 2016	30 April 2016	% change
Total assetsA (£'000)	301,782	243,229	+24.1
Total equity shareholders' funds (£'000)	270,897	216,243	+25.3
Share price (mid-market)B	196.3p	156.0p	+25.8
Net asset value per shareB	228.5p	179.4p	+27.4
Discount to net asset value (excluding current year income)	13.1%	11.5%
Discount to net asset value (including current year income)	14.1%	13.1%
MSCI AC Asia Pacific ex Japan Index (currency adjusted)B	679.3	531.9	+27.7
Interim dividend per shareC	1.0p	1.0p	-
A Total assets less current liabilities (excluding loans). ​​​
B Percentage change figures are on a capital return basis. ​​​
C Interim dividend relating to the first six months of the financial year.​​​

PERFORMANCE (TOTAL RETURN)

	Six months ended	Year ended
	31 October 2016	30 April 2016
Share price	+27.8%	-15.1%
Net asset value	+29.1%	-15.4%
MSCI AC Asia Pacific ex Japan Index (currency adjusted)	+30.4%	-12.2%

For further information, please contact:

Andrew Leigh

Aberdeen Asset Managers Limited            0207 463 6312

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

INTERIM BOARD REPORT - CHAIRMAN'S STATEMENT

Results and Dividend

I am pleased to report that your Company generated strong returns for the half-year under review. The net asset value ("NAV") total return for the period was 29.1%, broadly in line with the total return of 30.4% from the MSCI All Countries Asia Pacific ex Japan Index. The Company benefited from the translational foreign exchange impact resulting from the fall in Sterling in the wake of the UK referendum on European Union membership. The performance of the underlying Asian companies was also positive. The share price total return for the period was 27.8%, with the share price ending the period at 196.3p. This represented a discount of 13.1% to the NAV per share (excluding current year income).

The Board declares an unchanged interim dividend for the year of 1.0p per Ordinary share, which will be paid on 27 January 2017 to shareholders on the register on 6 January 2017 (the relevant ex-dividend date being 5 January 2017). Shareholders should be aware that, as in previous years, the level of future dividends will depend on the future income of the portfolio.

Overview

Asian equities enjoyed a buoyant period in the six months ending 31 October after a turbulent start to 2016. While markets were briefly thrown into disarray following the UK's vote to leave the EU, they recovered quickly during the liquidity-driven rally that followed. Meanwhile, the volatility that affected Chinese equities in early 2016 dissipated, as signs of a stabilising mainland economy lured investors back to Asia. This, in turn, benefited peripheral economies in Southeast Asia, which have strong trade links with the mainland.

China was one of the best-performing markets over the period, and the portfolio's relative lack of exposure to that market had a negative impact on performance. A rise in infrastructure spending and a thriving real estate market alleviated fears of a hard landing, although the Government remained vigilant against excessive leverage. While there are a number of good quality mainland businesses to invest in, many have issues, such as opaque ownership structures, which fail to meet the Manager's stringent quality criteria. However, during the period, the Company initiated a holding in the Aberdeen Global - China A Share fund which provides exposure to the mainland market via a diversified pooled vehicle, thereby reducing the stock specific risk. This holding represented 1.7% of total assets at the period-end and the Manager has increased the holding further since then. 

The Company's exposure to Hong Kong was beneficial to performance. The stockmarket rebounded over the period amid optimism over Beijing's approval of a trading link between Hong Kong and the Shenzhen stock exchanges. Jardine Strategic performed well, announcing strong results which were underpinned by the robust returns from its Indonesian subsidiary, Astra International, and the stability of its property subsidiary, Hong Kong Land. In addition, the holding in HSBC was also beneficial to performance. While the bank's earnings were impacted by loan impairments in Brazil, it declared a partial return of capital from the sale of its Brazilian business and the credit card operations of its US subsidiary. Subsequently, it executed a share buyback programme, providing a boost to shareholder returns.

The Singapore market lagged the region, and your Company's overweight exposure to the country had an adverse impact on performance. The country's economy has suffered from sub-par growth for almost two years, and is exposed to global headwinds such as slowing trade and weakness in the oil and gas sectors. The portfolio's bias towards Singapore banks was detrimental to performance as the industry faced a challenging operating environment. For instance, OCBC reported weaker earnings owing to lower net interest margins and a rise in non-performing loans in the energy sector. Nevertheless, the bank is a regional business and has a diversified revenue stream beyond its domestic market. In addition, it remains well-capitalised with a healthy balance sheet and is trading at an attractive valuation.

During the period, the Manager also initiated a position in Kerry Logistics, a Hong Kong-based logistics services provider which is well positioned to benefit from growing regional trade.

The Manager sold Australian insurer QBE Insurance following a deteriorating outlook in Europe, the US and Australia. 

Gearing and Share Buy Backs

With the Company's borrowings mostly denominated in US and Hong Kong Dollars, the depreciation of Sterling resulted in the value of its loans rising from £27.0 million to £30.9 million during this period. However, the portfolio's appreciation meant that its gearing (net of cash) fell to 10.3% at the end of the period compared to 11.4% at the start of the period.

In line with most other Asia Pacific investment trusts, the Company has continued to buy back shares in order to provide a degree of liquidity to the market at times when the discount to the NAV has widened. During the period, the Company bought back 2.0 million shares which are held in treasury, representing 1.6% of the shares in issue at the beginning of the period. At the end of the period there were 8,398,567 shares held in treasury, representing 7.1% of the Company's issued share capital. These shares can only be issued to the market if and when the shares are trading at a premium to the NAV.

Board

As previously announced, Marion Sears was appointed as an independent non-executive Director on 1 August 2016. Marion had an executive career in stockbroking and investment banking and was latterly a Managing Director of Investment Banking at JPMorgan. She is currently a non-executive director of a number of public companies and I am delighted to welcome her to the Board.

Outlook

The short term outlook for Asia remains uncertain with weak economic growth and concerns over what policies US president-elect Trump may ultimately pursue once in office. One key source of uncertainty for the export-oriented Asian economies will be the possibility of increased protectionism, as the incoming Trump administration appears to favour a more insular and inward looking stance on trade. The recent strength of the US Dollar is another cause for worry, as it could potentially draw much-needed investment away from Asia and other emerging markets, and curtail the nascent rebound in commodities.

However the longer term prospects for Asia remain positive despite persisting concerns over China's rapid credit expansion and industrial overcapacity. Monetary policies within Asia continue to support economic growth, and recent political changes have promised economic revitalisation. Given the prevailing uncertainties, the Manager maintains a cautious optimism, and has confidence in the quality of your Company's underlying holdings, which are well-managed, and maintain healthy balance sheets that can weather tough times and outperform in the longer term.

David Shearer

Chairman

21 December 2016

INTERIM BOARD REPORT - OTHER MATTERS

Directors' Responsibility Statement

The Directors are responsible for preparing the Half-Yearly Financial Report in accordance with applicable laws and regulations. The Directors confirm that to the best of their knowledge:

-      the condensed set of financial statements within the Half-Yearly Financial Report has been prepared in accordance with Financial Reporting Standard 104 'Interim Financial Reporting';

-      the Interim Board Report (constituting the Interim Management Report) includes a fair review of the information required by rule 4.2.7R of the UK Listing Authority's Disclosure Guidance and Transparency Rules (being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements and a description of the principal risks and uncertainties for the remaining six months of the financial year) and 4.2.8R (being related party transactions that have taken place during the first six months of the financial year and that have materially affected the financial position of the Company during that period, and any changes in the related party transactions described in the last Annual Report that could so do).

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 2016 and comprise the following risk headings:

-      Investment strategy and objectives

-      Investment management

-      Income/dividends

-      Financial

-      Gearing

-      Regulatory

-      Operational

In addition to the risks stated above, the Board is conscious that investment in Asia Pacific securities, or in companies that derive significant revenue or profit from the Asia Pacific region, involves a greater degree of risk than that usually associated with investment in the securities in developed markets, which may have an adverse effect on economic returns or restrict investment opportunities.

Furthermore, the Board considers that the United Kingdom's decision in the referendum held on 23 June 2016 to leave the European Union may affect the Company's risk profile by introducing new uncertainties and instability in financial markets as the United Kingdom negotiates the terms of its exit from the European Union. Other than this additional risk the Company's principal risks and uncertainties have not changed materially since the date of the Annual Report and are not expected to change materially for the remaining six months of the Company's financial year.

Going Concern

The Company's assets consist substantially of equity shares in companies listed on recognised stock exchanges and in most circumstances are realisable within a short timescale.  The Board has set limits for borrowing and regularly reviews cash flow projections and compliance with banking covenants. The Directors believe that, after making enquiries, the Company has adequate resources to continue in operational existence for the foreseeable future and has the ability to meet its financial obligations as they fall due for a period of at least twelve months from the date of approval of this Report. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

On behalf of the Board

David Shearer

Chairman

21 December 2016

INVESTMENT PORTFOLIO
As at 31 October 2016
		Valuation	Total assets
Company	Country	£'000	%
Aberdeen Global - Indian Equity FundA	India	31,766	10.5
Jardine Strategic Holdings	Hong Kong	16,352	5.4
Samsung Electronics Pref	South Korea	16,073	5.3
Oversea-Chinese Banking Corporation	Singapore	12,269	4.1
Taiwan Semiconductor Manufacturing Company	Taiwan	11,943	4.0
AIA Group	Hong Kong	11,350	3.8
Ayala Land	Philippines	10,095	3.3
Rio TintoB	Australia	9,999	3.3
HSBC Holdings	Hong Kong	9,073	3.0
United Overseas Bank	Singapore	8,643	2.9
Top ten investments		137,563	45.6
City Developments	Singapore	8,311	2.8
China Mobile	China	8,305	2.7
Singapore Telecommunication	Singapore	8,105	2.7
Siam Cement (Foreign)	Thailand	7,977	2.6
Swire PacificC	Hong Kong	7,886	2.6
Standard CharteredB	UK	7,476	2.5
BHP BillitonB	Australia	7,418	2.5
CSL	Australia	7,064	2.3
Taiwan Mobile	Taiwan	5,721	1.9
Keppel Corporation	Singapore	5,631	1.9
Top twenty investments		211,457	70.1
Singapore Technologies Engineering	Singapore	5,621	1.9
New India Inv. TrustAB	India	5,415	1.8
Aberdeen Global - China A Share Equity FundA	China	5,107	1.7
Bank Central Asia	Indonesia	4,678	1.5
Hong Kong Exchanges & Clearing	Hong Kong	4,542	1.5
Swire Properties	Hong Kong	4,467	1.5
Naver Corporation	South Korea	3,816	1.3
M.P. Evans GroupB	United Kingdom	3,606	1.2
Unilever Indonesia	Indonesia	3,417	1.1
Venture Corp	Singapore	3,407	1.1
Top thirty investments		255,533	84.7
PetroChina H Shares	China	3,192	1.0
John Keells HoldingsD	Sri Lanka	3,013	1.0
CIMB Group Holdings	Malaysia	2,965	1.0
DBS Group Holdings	Singapore	2,946	1.0
Public Bank Berhad	Malaysia	2,796	0.9
Aberdeen Asian Smaller Companies Inv. TrustAB	Other Asia	2,764	0.9
Hang Lung Group	Hong Kong	2,756	0.9
Amorepacific Corporation	South Korea	2,472	0.8
ASM Pacific Technology	Hong Kong	2,394	0.8
Hang Lung Properties	Hong Kong	2,383	0.8
Top forty investments		283,214	93.8
E-Mart	South Korea	2,304	0.8
MTR Corporation	Hong Kong	2,228	0.7
Dairy Farm International	Hong Kong	2,195	0.7
Astra International	Indonesia	1,923	0.6
Aitken Spence & Co.	Sri Lanka	1,716	0.6
Vietnam Dairy Products	Vietnam	1,549	0.5
Kerry Logistics Network	Hong Kong	1,401	0.5
Anhui Conch Cement H shares	China	1,397	0.5
DFCC Bank	Sri Lanka	1,226	0.4
Amorepacific Group	South Korea	239	0.1
Total investments		299,392	99.2
Net current assetsE		2,390	0.8
Total assetsF		301,782	100.0

A Managed by the Manager of the Company. ​​​

B London Stock Exchange listing. ​​​

C Holding merges two equity holdings, split as follows: B shares £7,341,000 and A shares £545,000. ​​​

D Holding merges equity holding and warrants, split as follows: equity shares £3,013,000 and warrants £nil. ​​​

E Excluding bank loans of £25,885,000. ​​​

F Represents Total Assets as per the Statement of Financial Position less current liabilities (before deducting bank loans).​​​

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 2016 which comprises the Condensed Statement of Comprehensive Income, Condensed Statement of Financial Position, Condensed Statement of Changes in Equity, Condensed Statement of Cash Flows 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 Guidance 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), including FRS 102 'The Financial Reporting Standard' applicable in the UK and Republic of Ireland. The condensed set of financial statements included in this Half-Yearly Financial Report have been prepared in accordance with FRS 104 'Interim Financial Reporting'.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the Half-Yearly Financial Report based on our review. 

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.

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 2016 is not prepared, in all material respects, in accordance with FRS 104 'Interim Financial Reporting' and the DTR of the UK FCA. 

Philip Merchant

for and on behalf of KPMG LLP, Statutory Auditor

Chartered Accountants

Edinburgh

21 December 2016

CONDENSED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
		Six months ended			Six months ended
		31 October 2016			31 October 2015
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Gains/(losses) on investments		-	62,907	62,907	-	(48,370)	(48,370)
Income	2	4,166	-	4,166	4,017	-	4,017
Management fee		(402)	(402)	(804)	(433)	(433)	(866)
Administrative expenses		(401)	-	(401)	(406)	-	(406)
Exchange (losses)/gains	6	-	(3,892)	(3,892)	-	36	36
		_______	_______	_______	_______	_______	_______
Net return on ordinary activities before finance costs and taxation		3,363	58,613	61,976	3,178	(48,767)	(45,589)
Interest payable and similar charges		(119)	(119)	(238)	(111)	(111)	(222)
		_______	_______	_______	_______	_______	_______
Net return on ordinary activities before taxation		3,244	58,494	61,738	3,067	(48,878)	(45,811)
Taxation	3	(136)	-	(136)	(127)	-	(127)
		_______	_______	_______	_______	_______	_______
Net return attributable to equity shareholders		3,108	58,494	61,602	2,940	(48,878)	(45,938)
		_______	_______	_______	_______	_______	_______
Return per Ordinary share (pence)	5	2.60	48.93	51.53	2.38	(39.48)	(37.10)
		_______	_______	_______	_______	_______	_______
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 2016	30 April 2016
		Notes	£'000	£'000
Non-current assets
Investments at fair value through profit or loss		9	299,392	239,909
			__________	__________
Current assets
Loans and receivables			315	1,319
Cash at bank and in hand			2,916	2,369
			__________	__________
			3,231	3,688
			__________	__________
Creditors: amounts falling due within one year
Bank loans			(25,885)	(21,986)
Other creditors			(841)	(368)
			__________	__________
			(26,726)	(22,354)
			__________	__________
Net current liabilities			(23,495)	(18,666)
			__________	__________
Total assets less current liabilities			275,897	221,243
Creditors: amounts falling due after more than one year
Bank loans			(5,000)	(5,000)
			__________	__________
Net assets			270,897	216,243
			__________	__________
Share capital and reserves
Called-up share capital			6,347	6,347
Share premium account			17,955	17,955
Special reserve			1,927	5,411
Capital redemption reserve			10,207	10,207
Capital reserve		6	222,400	163,906
Revenue reserve			12,061	12,417
			__________	__________
Equity shareholders' funds			270,897	216,243
			__________	__________
Net asset value per Ordinary share (pence)		7	228.53	179.43
			__________	__________
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 2016
			Share		Capital
		Share	premium	Special	redemption	Capital	Revenue
		capital	account	reserve	reserve	reserve	reserve	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 30 April 2016		6,347	17,955	5,411	10,207	163,906	12,417	216,243
Buyback of Ordinary shares for treasury		-	-	(3,484)	-	-	-	(3,484)
Return on ordinary activities after taxation		-	-	-	-	58,494	3,108	61,602
Dividend paid	4	-	-	-	-	-	(3,464)	(3,464)
		_____	______	______	_______	______	______	_______
Balance at 31 October 2016		6,347	17,955	1,927	10,207	222,400	12,061	270,897
		_____	______	______	_______	______	______	_______
Six months ended 31 October 2015
			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 2015		6,347	17,955	11,218	10,207	211,550	12,121	269,398
Buyback of Ordinary shares for treasury		-	-	(2,329)	-	-	-	(2,329)
Return on ordinary activities after taxation		-	-	-	-	(48,878)	2,940	(45,938)
Dividend paid	4	-	-	-	-	-	(3,469)	(3,469)
		_____	______	______	_______	______	______	_______
Balance at 31 October 2015		6,347	17,955	8,889	10,207	162,672	11,592	217,662
		_____	______	______	_______	______	______	_______
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 2016	31 October 2015
	Notes	£'000	£'000
Operating activities
Net return on ordinary activities before finance costs and taxation		61,976	(45,589)
Adjustment for:
(Gains)/losses on investments		(62,907)	48,370
Currency losses/(gains)		3,892	(36)
Decrease in accrued dividend income		1,097	1,735
(Increase)/decrease in other debtors		(13)	11
Increase/(decrease) in creditors		201	(43)
Scrip dividends included in investment income		(522)	(452)
Overseas withholding tax		(217)	(148)
		__________	__________
Net cash flow from operating activities		3,507	3,848
Investing activities
Purchases of investments		(15,431)	(5,094)
Sales of investments		19,687	6,955
		__________	__________
Net cash from investing activities		4,256	1,861
Financing activities
Interest paid		(232)	(221)
Equity dividends paid	4	(3,464)	(3,469)
Buyback of Ordinary shares		(3,527)	(2,218)
		__________	__________
Net cash used in financing activities		(7,223)	(5,908)
		__________	__________
Increase/(decrease) in cash		540	(199)
		__________	__________
Analysis of changes in cash during the year
Opening balances		2,369	2,614
Effect of exchange rate fluctuations on cash held		7	(54)
Increase/(decrease) in cash as above		540	(199)
		__________	__________
Closing balances		2,916	2,361
		__________	__________
The accompanying notes are an integral part of these condensed set of interim financial statements.

NOTES TO THE FINANCIALSTATEMENTS

For the period ended 31 October 2016

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. The Company has early adopted Amendments to FRS 102 'Fair Value Hierarchy Disclosures', issued by the Financial Reporting Council in March 2016.

		Six months ended	Six months ended
		31 October 2016	31 October 2015
2.	Income	£'000	£'000
	Income from investments
	UK dividend income	434	845
	UK unfranked investment income	8	8
	Overseas dividends	3,200	2,710
	Scrip dividends	522	452
		__________	__________
		4,164	4,015
		__________	__________
	Other income
	Deposit interest	2	2
		__________	__________
	Total income	4,166	4,017
		__________	__________

3.	Taxation
	The taxation charge for the period represents withholding tax suffered on overseas dividend income.

4.	Dividends
	Ordinary dividends on equity shares deducted from reserves are analysed below:
		Six months ended	Six months ended
		31 October 2016	31 October 2015
		£'000	£'000
	2016 final dividend - 2.90p (2015 - 2.80p)	3,464	3,469
		__________	__________
	An interim dividend of 1.00p per share will be paid on 27 January 2017 to shareholders on the register on 6 January 2017. The ex-dividend date will be 5 January 2017.

		Six months ended	Six months ended
		31 October 2016	31 October 2015
5.	Return per Ordinary share	p	p
	Revenue return	2.60	2.38
	Capital return	48.93	(39.48)
		__________	__________
	Total return	51.53	(37.10)
		__________	__________
	The figures above are based on the following attributable assets:
		£'000	£'000
	Revenue return	3,108	2,940
	Capital return	58,494	(48,878)
		__________	__________
	Total return	61,602	(45,938)
		__________	__________
	Weighted average number of Ordinary shares in issue	119,540,018	123,813,880
		__________	__________

6.	Capital reserve
	The capital reserve reflected in the Condensed Statement of Financial Position at 31 October 2016 includes gains of £148,362,000 (30 April 2016 - gains of £90,036,000) which relate to the revaluation of investments held at the reporting date.
	During the period the Company suffered £3,892,000 of exchange losses (2015 - gains of £36,000), of which £3,244,000 (2015 - gains of £527,000) were attributable to foreign exchange movements on bank loan drawdowns.

		As at	As at
7.	Net asset value per share	31 October 2016	30 April 2016
	Attributable net assets (£'000)	270,897	216,243
	Number of Ordinary shares in issue	118,537,098	120,519,010
	Net asset value per Ordinary share (p)	228.53	179.43

8.	Transaction costs
	During the six months ended 31 October 2016 expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. These have been expensed through capital and are included within gains/(losses) on investments in the Condensed Statement of Comprehensive Income. The total costs were as follows:
		Six months ended	Six months ended
		31 October 2016	31 October 2015
		£'000	£'000
	Purchases	26	11
	Sales	39	7
		__________	__________
		65	18
		__________	__________

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 Company has early adopted 'Amendments to FRS 102 - Fair Value Hierarchy Disclosures', issued by the Financial Reporting Council in March 2016. This has not resulted in any reclassifications in levelling and the prior year comparative has been disclosed under the new hierarchy. 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 at the reporting date have all been identified as Level 1 (30 April 2016 - same).

10.	Related party transactions and transactions with the Manager
	Mr H Young is a director of Aberdeen Asset Management PLC, of which Aberdeen Fund Managers Limited ("AFML") is a subsidiary. Management, promotional activities and secretarial and administration services are provided to the Company by AFML.
	With effect from 1 July 2016, the Board and the Manager agreed a new rate for calculating the Company's management fees payable to AFML. The management fee is payable monthly in arrears based on an annual amount of 0.85%, previously 1%, of the net asset value of the Company valued monthly, with the following provisions for commonly managed funds from which the Manager receives a management fee:
	- the Company's investments in Aberdeen Global - Indian Equity Fund, Aberdeen Asian Smaller Companies Investment Trust and New India Investment Trust are excluded from the calculation of the investment management fee. The total value of such commonly managed funds at the period end was £39,945,000 (2015 - £34,002,000).
	- the Company receives a rebate from the Manager for the amount of fees in excess of 0.85%, previously 1%, of net assets charged by the Manager for any applicable commonly managed fund.
	During the period £804,000 (2015 - £866,000) of management fees were paid and payable, with a balance of £271,000 (2015 - £262,000) being payable to AFML at the period end. Management fees are charged 50% to revenue and 50% to capital.
	The promotional activities fee is based on a current annual amount of £158,000 (2015 - £225,000), payable quarterly in arrears. During the period £79,000 (2015 - £112,500) of fees were paid and payable, with a balance of £53,000 being payable to AFML at the period end (2015 - £98,000 payable).

11.	Segmental information
	The Company is engaged in a single segment of business, which is to invest in equity securities. All of the Company's activities are interrelated, and each activity is dependent on the others. Accordingly, all significant operating decisions are based on the Company as one segment.

12.	The financial information contained in this Half-Yearly Report does not constitute statutory accounts as defined in Sections 434-436 of the Companies Act 2006. The financial information for the six months ended 31 October 2016 and 31 October 2015 has not been audited by the Company's external auditor.
	The financial information for the year ended 30 April 2016 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies. The report of the Independent Auditor on those accounts contained no qualification or statement under Section 498 (2), (3) or (4) of the Companies Act 2006.

13.	This Half-Yearly Financial Report was approved by the Board on 21 December 2016.

The Half-yearly Report and Accounts will be posted to shareholders in December 2016. Copies may be obtained during normal business hours from the Secretary, Aberdeen Asset Management PLC, 40 Princes Street, Edinburgh EH2 2BY or from the Company's website, www.newdawn-trust.co.uk*.

By order of the Board

Aberdeen Asset Management PLC

Company Secretary

21 December 2016

* 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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