REG - Aberdeen Asian Inc - Annual Financial Report
18/03/2026 07:00
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RNS Number : 0294X Aberdeen Asian Income Fund Limited 18 March 2026
ABERDEEN ASIAN INCOME FUND LIMITED
Legal Entity Identifier (LEI): 549300U76MLZF5F8MN87
ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2025
HIGHLIGHTS
· Share price total return for the year of 30.0% and NAV total
return of 22.2%.
· Dividend yield at the year end of 6.2%.
PERFORMANCE HIGHLIGHTS
Ordinary share price total return AB Net asset value total return AB
2025 +30.0% 2025 +22.2%
2024 +12.0% 2024 +10.8%
MSCI AC Asia Pacific ex Japan Index total return (currency adjusted) B Dividend yield ACD
2025 +21.3% 2025 6.2%
2024 +12.6% 2024 6.6%
Dividend per Ordinary share Earnings per Ordinary share - basic (revenue)
2025 16.24p 2025 14.73p
2024 14.43p 2024 11.35p
Discount to net asset value per Ordinary share AC Ongoing charges AE
2025 7.6% 2025 0.92%
2024 12.5% 2024 0.85%
Net gearingAC
2025 4.7%
2024 7.2%
A Alternative Performance Measure.
B Total return represents the capital return plus dividends reinvested.
C As at 31 December.
D Yield is calculated as the dividend per Ordinary share divided by the share
price per Ordinary share expressed as a percentage.
E Calculated in accordance with the latest AIC guidance.
For further information, please contact:
Ben Heatley
Head of Closed End Fund Sales
Aberdeen Group plc
07796 564562
SUMMARY OF RESULTS
Financial Highlights
31 December 2025 31 December 2024 % change
Net asset value total return A +22.2% +10.8%
Share price (Ordinary) total return A +30.0% +12.0%
MSCI AC Asia Pacific ex Japan Index total return (currency adjusted) +21.3% +12.6%
Market capitalisation (£million) £376.2 £330.7 +13.8
Discount to net asset value per Ordinary share A 7.6% 12.5%
Ongoing charges ratio A 0.92% 0.85%
Dividend and earnings
Total return per Ordinary share B 50.95p 21.49p n/a
Earnings per Ordinary share - basic (revenue) B 14.73p 11.35p +29.8
Dividends per Ordinary share C 16.24p 14.43p +12.5
Dividend cover per Ordinary share A 0.91 0.79 -
Revenue reserves (£million) D £1.5 £3.5
Dividend yield A 6.2% 6.6%
A Considered to be an Alternative Performance Measure.
B Measures the relevant earnings for the year divided by the weighted average
number of Ordinary shares in issue (see note 10).
C The figure for dividends reflects the years in which they were earned (see
note 9).
D The revenue reserves figure takes account of the fourth interim dividend
amounting to £6,356,000 (2024 - fourth interim amounting to £10,148,000).
Capital Performance to 31 December 2025
31 December 2025 31 December 2024 % change
Total assets (£million) £438.4 £410.3 +6.8
Total equity shareholders' funds (net assets) (£million) £407.0 £377.9 +7.7
Net asset value per Ordinary share 285.56p 251.42p +13.6
Ordinary share price 264.00p 220.00p +20.0
Long Term Total Return Performance to 31 December 2025
1 year 3 year 5 year Since
launch B
% return % return % return % return
Net asset value A +22.2 +38.8 +48.5 +563.1
Share price (Ordinary) A +30.0 +48.4 +51.9 +531.2
MSCI AC Asia Pacific ex Japan Index (currency adjusted) +21.3 +38.7 +27.1 +458.0
A Considered to be an Alternative Performance Measure.
B Launch date being 20 December 2005.
CHAIRMAN'S STATEMENT
Highlights
● Significant Outperformance: a share price total return of 30% and
NAV total return of 22.2%, both surpassing the Index return of 21.3%.
● Strong Yield: Year-end dividend yield of 6.2% following the
introduction of the enhanced dividend policy to broaden the Company's appeal.
● Shareholder Value: Discount narrowed significantly to 7.6% from
12.5% at the start of the year.
● Consistent Growth: Achieved the 17th consecutive year of dividend
increases, cementing the Company's status as an AIC 'Next Generation Hero'.
Introduction
Aberdeen Asian Income Fund was launched in December 2005, and this report
marks the Company's 20th anniversary. Looking back over this period, it is
highly satisfying to observe the returns generated for shareholders, which
demonstrate the compelling opportunities for both income and capital growth
within the Asia Pacific region. The annualised net asset value ("NAV") total
return from launch until 31 December 2025 was 9.9% and the annualised share
price total return was 9.6%. These returns compare favourably with an
annualised total return of 9.0% from the MSCI AC Asia Pacific ex Japan Index
(the "Index").
In relation to dividend growth provided to shareholders, the Board is pleased
to note that the increase for the year just past, which is set out below,
represents the seventeenth consecutive year of annual dividend increases and
means that the Company continues to be a "next generation dividend hero" as
recognised by the Association of Investment Companies.
Performance for the Year
For the year under review, I am pleased to report another year of strong
returns for shareholders. The share price total return was 30.0% and the NAV
total return was 22.2%. These returns compare favourably with a total return
of 21.3% from the Index.
In addition to the outperformance for the year, the Company continues to
outperform the Index over the longer three and five year periods, in both NAV
and share price total return terms.
The total dividend for the year was 16.24p per share, which equates to a
dividend yield of 6.2% at the year end. The dividend increased by 12.5%
compared to the previous year following the introduction of the enhanced
dividend policy at the start of the year, which is set out in more detail
below.
It is also pleasing to report a narrowing of the discount to 7.6% at the year
end, from 12.5% at the start of the year.
Throughout the year, the Investment Manager's focus on high quality, income
generating companies across Asia provided resilience against a backdrop of
heightened macroeconomic volatility and political uncertainty. 2025 was a
tough year for Quality and High Yield investing, with both styles lagging the
broader market. Against that headwind, the Company's outperformance was a
function of deliberate portfolio positioning. Careful stock selection,
valuation discipline and prudent risk management ensured that capital was
allocated to businesses with durable cash flows and balance sheet strength,
enabling the portfolio to outperform the Index despite a less favourable
environment.
A more detailed review of market developments and the portfolio's performance
over the year can be found in the Investment Manager's Review.
Revenue and Dividends
In January 2025, as part of efforts to broaden the appeal of the Company's
shares to a wider range of investors and to reflect the sustained investor
appetite for yield in the current interest rate environment, the Board
introduced an enhanced dividend policy such that the Company's dividend is now
set at 1.5625% per quarter of the NAV, equating to approximately 6.25% of NAV
per annum. The dividend is calculated using the Company's NAV on the last
business day of the preceding financial quarter (i.e. the end of March, June,
September and December).
Consequently, four dividends were declared in respect of the year amounting to
16.24p per share, resulting in a yield of 6.2% based on the year end share
price.
Revenue earnings per share for the year were 14.73p, an increase of 29.8%
compared to 2024. Income generation from the portfolio continues to be strong,
with the Company benefitting from the Investment Manager's focus on
high-yielding companies with strong fundamentals.
Introduction of Continuation Vote
Alongside the introduction of the enhanced dividend policy, to further align
with shareholder interests, the Board also announced the introduction of a
continuation vote so that shareholders can decide whether they wish the
Company to continue in its current form at regular intervals. A continuation
vote will first be tabled at the Company's Annual General Meeting in 2028, and
every three years thereafter. Shareholders will be asked by simple majority
vote if they wish the Company to continue in its current form. In the event
that the vote should fail, further proposals will be brought to shareholders
regarding the future of the Company.
Share Capital Management
The Company bought back £17.7 million worth of shares during the year to be
held in treasury, representing 5.2% of the shares in issue at the start of the
year, at an average discount of 10.3% and providing an estimated enhancement
of 0.5% to the NAV per share.
The Company will continue to selectively buy back shares in the market, in
normal market conditions and at the discretion of the Board.
Gearing
At the year end, the Company had a £50 million revolving credit facility,
£31.4 million of which was drawn down, resulting in gearing (net of cash) of
4.7% (2024: 7.2%).
The loan facility matured in February 2026 and has been replaced with a
evergreen year facility with the existing lender, Bank of Nova Scotia, London
Branch. Under the terms of the facility, the Company has the option to
increase the level of the commitment from £50 million to £70 million at any
time, subject to the lender's credit approval.
Annual General Meeting ("AGM")
The AGM will be held at 12 noon on Tuesday 12 May 2026 at the offices of the
Aberdeen Group, 18 Bishops Square, London E1 6EG. There will be a short
presentation from the Investment Manager followed by a buffet lunch. We very
much look forward to meeting and engaging with as many shareholders as
possible.
We encourage all shareholders to complete and return the Proxy Form enclosed
with the Annual Report so as to ensure that your votes are represented at the
meeting. If you hold your shares in the Company via a share plan or a platform
and would like to attend and/or vote at the AGM, then please make arrangements
with the administrator of your share plan or platform.
Online Shareholder Presentation
In order to encourage as much interaction as possible with our shareholders,
and especially for those who are unable to attend the AGM, we will also be
hosting an Online Shareholder Presentation, which will be held at 10:30 a.m.
on Wednesday 6 May 2026. At this event you will receive a presentation from
the Investment Manager and have the opportunity to ask questions of the
Chairman and the Investment Manager.
Full details on how to register for the online event can be found on the
Company's website. Questions can be registered in advance and a recording of
the event will be available on the Company's website for anyone who was unable
to join.
Dividend Re-Investment
Shareholders who hold their shares on the main register are reminded that the
Company's Registrar, Computershare, operates a dividend re-investment plan.
This can be a good way of building up a shareholding in the Company through
'pound cost averaging', whereby quarterly dividends are re-invested
automatically in new shares.
Shareholders who hold their shares through a stockbroker or online dealing
platform should be able to request for their dividends to be re-invested in a
similar way, by contacting their stockbroker or selecting this option through
their online dealing account.
Board Composition
As previously announced, having served as a Director since May 2016, I will
retire from the Board at the AGM. It has been a privilege to serve,
particularly as Chairman since 2022, and I have thoroughly enjoyed working
with a team so committed to enhancing shareholder value. I would like to thank
my Board colleagues for their unwavering support.
Jane Routledge will succeed me as Chair upon my retirement. Jane has been an
excellent Director since her appointment in May 2024 and I am confident that
she and the other Directors will lead the Company successfully through its
next chapter.
The Board is in the process of recruiting a new Director and hopes to announce
an appointment soon.
Outlook
Asia is one of the few regions where income and growth continue to move in
tandem. Companies are strengthening their balance sheets and improving how
they allocate and manage capital. Crucially, they are increasingly
acknowledging that dividends play a key role in enhancing shareholder returns,
which in turn boosts share prices.
China is now incrementally more of an income market than it was a few years
ago. The same is true in South Korea, where rising distribution ratios are
tied to better governance. These governance changes matter for long-term
returns.
AI continues to dominate investor sentiment. Valuations have climbed and
'froth' is appearing in some segments. In addition, the discount to AI peers
in developed markets has narrowed. As a result, the Investment Manager has
become more cautious and, hence, more selective in this sector. A positive
factor for Asia is that its presence in the AI ecosystem is more rooted in
hardware, infrastructure and components, which are the tangible backbone of
the global building-out of AI capabilities. At the same time, the Investment
Manager's focus on dependable yield also means that it is looking more closely
at non-AI quality companies and areas where growth and dividends can compound
without unnecessary distractions.
The overall investment backdrop continues to present a number of headwinds,
including geopolitical risk and macroeconomic uncertainty, not least
developments in the Middle East since the end of the year. Over the course of
the year, the Investment Manager made a number of significant portfolio
adjustments, resulting in a robust portfolio that is better positioned to
navigate potential volatility in the months ahead. Modest country tilts also
help to ensure that geopolitical developments do not overly influence
portfolio outcomes.
Looking ahead, the Board is cautiously positive. The earnings base across the
portfolio is resilient, dividend cuts appear unlikely, and any period of US
Dollar softness or policy easing by the Federal Reserve would be supportive
for equities and fund flows in Asia. We consider that the case for investing
in the Company remains ever compelling.
Ian Cadby
Chairman
17 March 2026
INVESTMENT MANAGER'S REVIEW
01 How did Aberdeen Asian Income Fund perform in 2025?
2025 marked another year of good returns for the Company. The share price rose
30% on a total return basis, and the net asset value ("NAV") returned 22.2%,
outperforming a total return of 21.3% for the MSCI AC Asia Pacific ex Japan
Index (the "Index").
Aside from the strong capital returns, we are also pleased to report that the
total dividend rose for the 17th consecutive year, by 12.5% to 16.24p per
share, providing a yield of 6.2% at the year end.
In addition, the discount of the share price to the NAV narrowed steadily
through the year, to 7.6% at the year end, from 12.5% at the start of the
year.
The Company continues to outperform the Index over the longer three and
five-year periods.
02 What drove performance?
Performance during the year was mainly driven by stock selection. This was a
pleasing outcome, given that we invest in high-quality dividend franchises
with reliable free cash flow and disciplined distribution policies. The
portfolio's performance was achieved despite style headwinds in a market that
favoured value and cyclical stocks over quality and yield.
Overall, Asian equities proved resilient, as subsiding trade tensions, hopes
of interest rate cuts and excitement over artificial intelligence ("AI")
outweighed worries over US tariffs, the US Federal Reserve's policy track, and
the global economy.
South Korea and Taiwan led the way thanks to huge demand for AI-related chips
and hardware. The AI-related exposures in the portfolio were positive
contributors. Taiwanese companies Accton Technology, ASE Technology and Taiwan
Union Technology benefited from AI-driven hardware demand. South Korea's
Samsung Electronics boosted performance, as semiconductor prices rose on
rising memory needs, although this was pared by the lighter positioning in SK
Hynix.
The Chinese market rallied on the launch of the low-cost DeepSeek AI model,
which boosted AI-related companies. Across the portfolio, we saw mixed
contributions. Insurers such as PICC Property and Casualty and Ping An
Insurance re-rated from low bases and restructuring progress. Structural
weakness, however, persisted in property and consumer companies, weighing on
dairy producer Inner Mongolia Yili Industrial and Hangzhou Robam Appliances,
while being underweight Alibaba was a drag on performance, given its AI
exposure.
In contrast, Indian markets fell on tariff headwinds, slowing growth and
earnings downgrades. Their exposure to global AI trades was also low. Our
lighter positioning in India thus worked to the Company's favour. However,
this was overshadowed by stock weakness. Power Grid Corporation disappointed
on guidance, while Tata Consultancy Services and Infosys fell amid the soft
patch in the information technology ("IT") services sector.
03 China has rallied sharply. Are you still seeing
opportunities?
Yes, but selectively. We are seeing opportunities in areas that are recovering
from a low base and low valuations caused by four years of policy tightening.
A good example is Ping An Insurance. The insurer has navigated through
tightening regulations, falling interest rates and a shrinking agency force,
which combined to compress valuations across the sector.
The good thing is that Ping An has moved beyond this "repair" stage and is now
on the recovery path. Asset yields are improving as long-term rates stabilise,
and insurance capital is returning to equities.
Ping An's latest results show that new business value margins are recovering
and are significantly higher than its peers. Growth in contractual services
has returned, and bancassurance is recovering under tighter distribution
rules.
As a result, Ping An is back in the reckoning and poised to grow from a low
case, with yields, profits and return on equity ("ROE") rebounding steadily.
04 AI has also seen a strong rally. What's your view now?
AI remains a structural growth theme, but last year's rally has pushed
expectations and valuations sharply higher across parts of the supply chain.
From here, returns over the shorter term are likely to be more sensitive to
delivery on earnings.
That said, the longer-term story remains intact. AI is moving beyond hype to
real earnings, as AI applications and chips proliferate. Capital expenditure
("capex") is high; on servers, memory, advanced packaging, power and cooling,
where supply is tight and demand visibility is improving.
Our AI exposure is in Taiwan's technology sector. We prefer semiconductors and
technology hardware, where earnings visibility is better and the capex runway
is strong, over the downstream segments such as consumer electronics and
smartphone and PC makers, where demand is more cyclical and pricing power is
weaker.
For instance, a core holding in the portfolio is technology giant Taiwan
Semiconductor Manufacturing Company ("TSMC"), which is still expanding
capacity as AI demand grows. We also like the key "picks and shovels"
enablers, including ASE Technology, which is benefiting from the rising need
for advanced chip packaging and testing.
As an income strategy, we find limited opportunities in new growth sectors. We
have therefore started rotating part of the portfolio towards quality
compounders outside the AI theme. These are businesses with predictable cash
flows, sensible balance sheets, and valuations that have not been caught up in
the thematic AI optimism. It also helps buffer the portfolio from
over-concentration in one narrative, as concentration and valuation risks tend
to rise in tandem.
A recent example would be Medibank Private, the best quality company in the
Australian private health insurance sector. Whilst growth is not exciting in
an Asian context, the business has steady cash generation, a healthy dividend
and defensive characteristics. Its strong franchise and capable management
team support market-leading profitability and return through cycles. Medibank
bears the hallmarks of a classic long-term compounder and, at the current
level, we view the valuation as relatively undemanding.
We still like AI but prefer to be more selective, valuation-conscious and
disciplined, as we aim to balance structural growth with dependable income and
resilience.
05 How are you positioning the portfolio for the year
ahead?
We are comfortable with how the portfolio is shaping up for 2026. As the
Chairman noted in the Half-Yearly Report, we have largely completed the
refinement of our strategy. This balances growth and income across key Asian
markets more deliberately, with the tightening of country weights and lifting
of stock-specific risk, thereby expressing our convictions more cleanly. We
have avoided making big directional calls; instead, we are backing companies
whose earnings and dividends look clearer than the macro noise.
Quality remains the key element in our stock picks. Although quality struggled
last year, our stock selection still delivered outperformance. The portfolio
is well placed if the market starts rewarding fundamentals again. Even if the
conditions remain challenging, the holdings should continue to generate steady
earnings and cash flow despite the macro and market sentiment.
On country positioning, we have avoided big bets. We remain underweight India
while we wait for signs of a stabilising domestic recovery and easing tariff
risks. China's recovery remains patchy, but we are finding opportunities where
the base is low and operational changes can unlock value, such as life
insurance. In addition, governance-driven improvements in both China and South
Korea support the income side of the portfolio.
Our refined total return approach combines yield and earnings growth, while
maintaining a quality income focus. Throughout the year, we initiated
positions in companies that are strong dividend franchises at various stages
of their life cycles. Some of these companies could be lower yielding, but
based on their high-quality business models, dividend policies, and growth
potential, are strong dividend payers.
Some of the more recent initiations included China Resources Mixc Lifestyle
Services, which operates premium malls and mixed-use developments. It is a
proxy for urban consumption and has a strong pipeline of assets in tier-one
cities (e.g. Beijing, Shanghai).
In Taiwan, we added a new holding in Sino-American Silicon Products ("SAS").
The group owns a large stake in GlobalWafers, one of the world's leading
silicon wafer suppliers, alongside businesses in related areas such as
compound semiconductors and automotive power electronics. It is a critical
supplier to the semiconductor industry. Its core products - high-purity
silicon ingots and wafers - are key inputs for making integrated circuits
("IC"s), memory chips, power devices, and other components.
Among the exits, we sold the holding in Insurance Australia on waning
near-term conviction due to concerns over the pricing cycle and mergers and
acquisitions.
06 What does the portfolio look like?
We divide the portfolio into three groups to shape position sizes, valuation
focus and holding periods.
First, compounders are high-quality businesses with sustainable earnings and
cash-flow growth, which are held patiently for long-term returns. Here, we
hold Tencent Holdings, a high-quality China internet franchise with resilient
cash-generating core businesses and disciplined AI investment. Tencent is
strengthening its ecosystem, with long-run monetisation potential across its
social media and payment platforms.
Second, consistent holdings in reliable and less cyclical companies that
provide reliable income but limited growth, helping support the Company's
yield. In this section of the portfolio is Region Group, a real estate
investment trust with resilient income from convenience-based Australian
retail assets. As interest rates ease, transaction activity is picking up,
supporting property values and potential acquisitions. Strong capital access
and a decent yield underpin distributions, with potential for medium-term
growth.
Finally, cyclical companies are more sensitive to the economic, credit or
interest-rate cycle and are used more tactically, based on fundamentals and
valuation. An example would be China Construction Bank, one of China's largest
state-owned banks with a large and stable retail deposit base that keeps
funding costs low. Its loan book is concentrated in lower-risk mortgages, with
some exposure to infrastructure lending.
This "3C" framework (Compounders, Consistent Holdings and Cyclical Companies)
helps balance sustainable income with targeted growth opportunities.
07 How is the corporate reform drive across Asia impacting
the portfolio?
For years, Asian corporate reform was mostly talk but now there is tangible
policy change and progress, albeit at an uneven pace across markets. We are
seeing higher distribution ratios, more consistent share buybacks, and a
clearer recognition of minority shareholder interests.
This shift is especially apparent in South Korea. The government has promised
sweeping capital market reforms to narrow the so-called South Korea discount,
where local shares trade below their fundamental value. Corporate share
buybacks or cancellations have more than doubled over the past two years since
the introduction of the government's corporate 'value-up' initiative in 2024.
Valuation metrics have also improved. At the end of 2025, the MSCI Korea Index
recorded a price-to-book ratio ("PBR") of 1.6 and a price-to-earnings ratio
("PER") of 17.5, both exceeding their 10-year averages. Similarly, China is
pushing state-owned enterprises to raise their dividends.
These reforms benefit the portfolio in two main ways. Firstly, more dependable
income. With the reform drive, more companies are moving towards sustainable
dividends rather than one-off or opportunistic distributions such as special
dividends. South Korea is a good example: companies that have historically
hoarded cash are now signalling discipline through higher dividends. The
market tends to reward those with higher multiples, that is, higher prices
because of expectations of better returns.
Secondly, the potential of a re-rating. When governance improves, the cost of
capital falls and the market starts to reward companies that commit to cash
returns and governance. As reforms become embedded in the corporate sector,
there is room for a valuation catch-up for companies that had been priced as
if governance change was unlikely to arrive. Life insurers in China illustrate
this dynamic: after years of weakness and restructuring, the low base plus
better operational discipline has created space for both earnings recovery and
multiple expansion.
These trends broaden the opportunity set for the portfolio. We are no longer
confined to traditional dividend markets such as Australia and Singapore, and
we can now source for income and growth in markets where that was not
available in the past.
08 Will income investing in Asia still pay off in 2026?
Yes, we believe so. The income story in Asia still has a long way to go.
Asia is still the world's growth engine, driving over half of global economic
growth. This is important for income investors because higher nominal GDP
growth tends to support stronger total shareholder returns, especially in
markets where cash generation is improving and capital discipline is
tightening.
We have seen the clearest shift in the technology sector. Several Asian
technology leaders, such as TSMC and Samsung Electronics which are held in the
portfolio, now resemble global compounders rather than cyclical manufacturers.
They have net-cash balance sheets, generate high margins and follow clear
distribution policies.
Policy is reinforcing this trend. Japan's 'value up' programme momentum has
spread to South Korea, and to China and Singapore. What was once a confined
opportunity set has broadened into a deeper, more reliable income universe.
The phrase "technology doesn't yield" is less applicable to Asia now.
Our investing approach leans into this change. We favour companies where
balance sheet strength, shareholder return discipline and cash flow visibility
support both dividends and capital growth. We believe that quality with growth
remains the most durable combination. Businesses that can fund dividends
without compromising future expansion tend to hold up in both good times and
bad times. Asia continues to provide that mix in sectors from financials to
semiconductors to consumer platforms.
We expect Asia to remain a rewarding region for income investors in 2026, not
only because of high yields but also strengthening fundamentals behind the
companies. We will continue to use market volatility to opportunistically take
positions in high-quality companies with good yield potential at sensible
valuations.
Isaac Thong and Eric Chan
abrdn Asia Limited
17 March 2026
OVERVIEW OF STRATEGY
Launched in December 2005, Aberdeen Asian Income Fund Limited (the "Company")
is registered with limited liability in Jersey as a closed-end investment
company under the Companies (Jersey) Law 1991 with registered number 91671.
The Company's Ordinary shares are listed on the Main Market of the London
Stock Exchange.
Investment Objective
To provide investors with a total return primarily through investing in Asia
Pacific securities, including those with an above average yield. Within its
overall investment objective, the Company aims to grow its dividends over
time.
Business Model
The Company aims to attract long-term private and institutional investors
wanting to benefit from the income and growth potential of Asia's most
compelling companies.
The business of the Company is that of an investment company and the Directors
do not envisage any change in this activity in the foreseeable future.
Investment Policy
Asset Allocation
The Company invests primarily in the Asia Pacific region through investment
in:
- companies listed on stock exchanges in the Asia Pacific
region;
- Asia Pacific securities, such as global depositary receipts
(GDRs), listed on other international stock exchanges;
- companies listed on other international exchanges that derive
significant revenues or profits from the Asia Pacific region; and
- debt issued by governments or companies in the Asia Pacific
region or denominated in Asia Pacific currencies.
The Company's investment policy is flexible, enabling it to invest in all
types of securities, including equity shares, preference shares, debt,
convertible securities, warrants and other equity-related securities. The
Company is free to invest in any market segments or any countries in the Asia
Pacific region. The Company may use derivatives to enhance income generation.
The Company invests in small, mid and large capitalisation companies. The
Company's policy is not to acquire securities that are unquoted or unlisted at
the time of investment (with the exception of securities which are about to be
listed or traded on a stock exchange). However, the Company may continue to
hold securities that cease to be quoted or listed if the Investment Manager
considers this to be appropriate. The Company may also enter into stock
lending contracts for the purpose of enhancing income returns.
Typically, the portfolio will comprise of between 40 and 70 holdings (but
without restricting the Company from holding a more or less concentrated
portfolio in the future).
Risk Diversification
The Company will not invest more than 10%, in aggregate, of the value of its
total assets in investment trusts or investment companies admitted to the
Official List, provided that this restriction does not apply to investments in
any such investment trusts or investment companies which themselves have
stated investment policies to invest no more than 15% of their total assets in
other investment trusts or investment companies admitted to the Official List.
In any event, the Company will not invest more than 15% of its total assets in
other investment trusts or investment companies admitted to the Official List.
In addition, the Company will not:
- invest, either directly or indirectly, or lend more than 20%
of its total assets to any single underlying issuer (including the underlying
issuer's subsidiaries or affiliates), provided that this restriction does not
apply to cash deposits awaiting investment;
- invest more than 20% of its total assets in other collective
investment undertakings (open-ended or closed-ended);
- expose more than 20% of its total assets to the
creditworthiness or solvency of any one counterparty (including the
counterparty's subsidiaries or affiliates);
- invest in physical commodities;
- take legal or management control of any of its investee
companies; or
- conduct any significant trading activity.
The Company may invest in derivatives, financial instruments, money market
instruments and currencies for investment purposes (including the writing of
put and call options for non-speculative purposes to enhance investment
returns) as well as for the purpose of efficient portfolio management (i.e.
for the purpose of reducing, transferring or eliminating investment risk in
the Company's investments, including any technique or instrument used to
provide protection against foreign exchange and credit risks). For the
avoidance of doubt, in line with the risk parameters outlined above, any
investment in derivative securities will be covered.
The Investment Manager expects the Company's assets will normally be fully
invested. However, during periods in which changes in economic conditions or
other factors so warrant, the Company may reduce its exposure to securities
and increase its position in cash and money market instruments.
Gearing Policy
The Board is responsible for determining the gearing strategy for the Company.
The Board has restricted the maximum level of gearing to 25% of net assets
although, in normal market conditions, the Company is unlikely to take out
gearing in excess of 15% of net assets. Gearing is used selectively to
leverage the Company's portfolio in order to enhance returns where this is
considered appropriate. Borrowings are generally shorter-term, but the Board
may from time to time take out longer-term borrowings where it is believed to
be in the Company's best interests to do so. Particular care is taken to
ensure that any bank covenants permit maximum flexibility of investment
policy.
The percentage investment and gearing limits set out under this sub-heading
"Investment Policy" are only applied at the time that the relevant investment
is made or borrowing is incurred.
In the event of any breach of the Company's investment policy, shareholders
will be informed of the actions to be taken by the Investment Manager by an
announcement issued through a Regulatory Information Service or a notice sent
to shareholders at their registered addresses.
The Company may only make material changes to its investment policy (including
the level of gearing set by the Board) with the approval of shareholders (in
the form of an ordinary resolution). In addition, any changes to the Company's
investment objective or policy will require the prior approval of the
Financial Conduct Authority as well as prior consent of the Jersey Financial
Services Commission ("JFSC") to the extent that the changes materially affect
the import of the information previously supplied in connection with its
approval under Jersey Funds Law or are contrary to the terms of the Jersey
Collective Investment Funds laws.
Dividend Policy
The Company's dividend policy is to set the dividend at 1.5625% per quarter of
the Company's net asset value ("NAV"), equating to approximately 6.25% of NAV
per annum. The dividend is calculated using the Company's NAV on the last
business day of the preceding financial quarter (i.e. the end of March, June,
September and December).
Duration and Continuation Vote
The Company does not have a fixed life. However, during the year, the Board
introduced a continuation vote so that shareholders can decide whether they
wish the Company to continue in its current form at regular intervals. A
continuation vote will first be tabled at the Company's Annual General Meeting
in 2028, and every three years thereafter. Shareholders will be asked by
simple majority vote if they wish the Company to continue in its current form.
In the event that the vote should fail, further proposals will be brought to
shareholders regarding the future of the Company.
Comparative Index
The Company's portfolio is constructed without reference to any stock market
index. It is likely, therefore, that there will be periods when the Company's
performance will be quite unlike that of any index and there can be no
assurance that such divergence will be wholly or even primarily to the
Company's advantage. The Company compares its performance against the
currency-adjusted MSCI AC Asia Pacific ex Japan Index (the "Index").
Promoting the Success of the Company
In accordance with corporate governance best practice, the Board is required
to describe to the Company's shareholders how the Directors have discharged
their duties and responsibilities over the course of the financial year
following the guidelines set out in the UK under section 172 (1) of the
Companies Act 2006 (the "s172 Statement") which the Company has adopted on a
voluntary basis. This Statement, from "Promoting the Success of the Company"
to "Online Shareholder Presentation" provides an explanation of how the
Directors have promoted the success of the Company for the benefit of its
members as a whole, taking into account, among other things, the likely
long-term consequences of decisions, the need to foster relationships with all
stakeholders and the impact of the Company's operations on the environment.
The purpose of the Company is to act as a vehicle to provide, over time,
financial returns (both income and capital) to its shareholders. The Company's
investment objective is disclosed above. The activities of the Company are
overseen by the Board of Directors of the Company. The Board's philosophy is
that the Company should operate in a transparent culture where all parties are
treated with respect and provided with the opportunity to offer practical
challenge and participate in positive debate which is focused on the aim of
achieving the expectations of shareholders and other stakeholders alike. At
its regular meetings, the Board reviews the culture and manner in which the
Investment Manager operates and receives regular reporting and feedback from
the other key service providers.
Investment companies, such as the Company, are long-term investment vehicles,
with a recommended holding period of five or more years. Typically, investment
companies are externally managed, have no employees, and are overseen by an
independent non-executive board of directors. The Company's Board of Directors
sets the investment mandate, monitors the performance of all service providers
(including the Investment Manager) and is responsible for reviewing strategy
on a regular basis. All this is done with the aim of preserving and, indeed,
enhancing shareholder value over the longer-term.
Shareholder Engagement
The following table describes some of the ways the Board engages with the
Company's shareholders:
Annual General Meeting ("AGM") The AGM provides an opportunity for the Directors to engage with shareholders,
answer their questions and meet them informally. The next AGM will take place
at 10:30 a.m. on 12 May 2026 in London. Shareholders who are unable to attend
are encouraged to lodge their votes by proxy on all the resolutions put
forward.
Annual Report The Company publishes a full annual report each year that contains a strategic
report, governance section, financial statements and additional information.
The report is available online and in paper format.
Company Announcements The Company issues announcements for all substantive news relating to it.
These can be found on the Company's website and the London Stock Exchange's
website.
Results Announcements The Company releases a full set of financial results at the half year and full
year stage. Updated NAV figures are announced on a daily basis.
Monthly Factsheets The Investment Manager publishes monthly factsheets on the Company's website
including commentary on the portfolio and market performance.
Website The Company's website contains a range of information and includes a full
monthly portfolio listing of the Company's investments as well as podcasts by
the Investment Manager. Details of financial results, the investment process
and Investment Manager together with Company announcements and contact details
can be found here: asian-income.co.uk.
Investor Relations The Company subscribes to the Investment Manager's Promotional and Investor
Relations programme.
The Investment Manager
The key service provider for the Company is the Investment Manager, abrdn Asia
Limited. The performance of abrdn Asia Limited is reviewed in detail at each
Board meeting.
Key Stakeholders - Shareholders
Shareholders are key stakeholders in the Company - they are looking to the
Investment Manager to achieve the investment objective over time and to
deliver a regular growing income together with some capital growth. The Board
is available to meet with shareholders at the AGM. This is seen as a very
useful opportunity to understand the needs and views of the shareholders. In
between AGMs, the Directors and Investment Manager also conduct programmes of
investor meetings with larger institutional, private wealth and other
shareholders to ensure that the Company is meeting their needs. Such regular
meetings may take the form of joint presentations with the Investment Manager
or meetings directly with a Director where any matters of concern may be
raised directly.
Other Stakeholders - Service Providers
The other key stakeholder group is that of the Company's third party service
providers. The Board is responsible for selecting the most appropriate
outsourced service providers and monitoring the relationships with these
suppliers regularly in order to ensure a constructive working relationship.
The service providers look to the Company to provide them with a clear
understanding of its needs in order that those requirements can be delivered
efficiently and fairly. The Board, via the Management Engagement Committee,
ensures that the arrangements with service providers are reviewed in detail at
least annually. The aim is to ensure that contractual arrangements remain
competitively priced in line with best practice, services being offered meet
the requirements and needs of the Company and performance is in line with the
expectations of the Board, Investment Manager and other relevant stakeholders.
Reviews include those of the Company's Custodian, Company Secretary,
Registrar, Broker and Auditor.
Principal Decisions
Pursuant to the Board's aim of promoting the long-term success of the Company,
the following principal decisions were taken during the year:
Portfolio/Investment Performance
The Investment Manager's Review details the key investment decisions taken
during the year and subsequently. The Investment Manager has continued to
monitor the investment portfolio throughout the year under the supervision of
the Board.
The Investment Manager's investment process seeks to outperform over the
longer term. The Board has in place the necessary procedures and processes to
continue to promote the long-term success of the Company. The Board continues
to monitor, evaluate and seek to improve these processes as the Company
continues to grow over time, to ensure that the investment proposition is
delivered to shareholders and other stakeholders in line with their
expectations.
During the year, the Board confirmed that the continuing appointment of the
Investment Manager, on the terms agreed, is in the interests of the
shareholders as a whole.
Gearing
The Company utilises gearing in the form of bank debt with the aim of
enhancing shareholder returns over the longer term. Since the year end, the
Company has renewed its secured, £50 million multi-currency revolving credit
facility with Bank of Nova Scotia, London Branch on an evergreen basis. Under
the terms of the facility, the Company has the option to increase the level of
the commitment from £50 million to £70 million at any time, subject to the
lender's credit approval. The Board reviews the level of gearing at each Board
meeting.
Share Buybacks
During the year, the Company continued to buy back Ordinary shares
opportunistically in order to provide liquidity to the market and to provide
an enhancement to the Company's NAV and benefit all shareholders. 7.8 million
Ordinary shares were bought back during the year to be held in treasury,
representing 5.2% of the shares in issue at the start of the year. The average
discount to NAV of the shares bought back was 10.2% and the buybacks provided
an estimated enhancement of 0.5% to the NAV per share.
Enhanced Dividend Policy and Introduction of Continuation Vote
In January 2025, as part of efforts to broaden the appeal of the Company's
shares to a wider range of investors and to reflect the sustained investor
appetite for yield in the current interest rate environment, the Board
introduced an enhanced dividend policy such that the Company's dividend is now
set at 1.5625% per quarter of the NAV, equating to approximately 6.25% of NAV
per annum.
Alongside the enhanced dividend policy, to further align with shareholder
interests, the Board also announced the introduction of a continuation vote so
that shareholders can decide whether they wish the Company to continue in its
current form at regular intervals. A continuation vote will first be tabled at
the Company's AGM in 2028, and every three years thereafter. Shareholders will
be asked by simple majority vote if they wish the Company to continue in its
current form. In the event that the vote should fail, further proposals will
be brought to shareholders regarding the future of the Company.
The Board believes that these actions, alongside other recent initiatives,
should help ensure a positive outlook for shareholder returns.
Online Shareholder Presentation
In order to encourage as much interaction as possible with shareholders, and
especially for those who are unable to attend the AGM, the Board will be
hosting an Online Shareholder Presentation, which will be held at 10:30 a.m.
on Wednesday 6 May 2026. At this event shareholders will receive a
presentation from the Investment Manager and have the opportunity to ask
questions of the Chairman and the Investment Manager.
Full details on how to register for the online event can be found on the
Company's website.
Key Performance Indicators ("KPIs")
The Board uses a number of financial performance measures to assess the
Company's success in achieving its objective and to determine the progress of
the Company in pursuing its investment policy. The main KPIs identified by the
Board in relation to the Company, which are considered at each Board meeting,
are as follows:
KPI Description
Dividend Payments per Ordinary share The Board aims to grow the Company's dividends over time.
Performance Absolute Performance: The Board monitors the Company's NAV total return
performance in absolute terms.
Relative Performance: The Board also measures performance against the MSCI AC
Asia Pacific ex Japan Index (currency adjusted) and performance relative to
other investment companies within the Company's peer group over a range of
time periods, taking into consideration the differing investment policies and
objectives employed by those companies.
Share Price Performance: The Board also monitors the price at which the
Company's shares trade relative to the MSCI AC Asia Pacific ex Japan Index
(currency adjusted) on a total return basis over time.
The Board measures performance over a time horizon of at least five years.
Commentary on the performance of the Company is contained in the Chairman's
Statement and Investment Manager's Review.
Discount/Premium to NAV The discount/premium relative to the NAV per share represented by the share
price is closely monitored by the Board. The Directors aim to operate an
active share buyback policy should the price at which the Ordinary shares
trade relative to the NAV per share (including income) be at a discount of
more than 5% in normal market conditions.
Ongoing Charges Ratio The Board monitors the Company's operating costs carefully.
Gearing The Board ensures that gearing is kept within the Board's guidelines to the
Investment Manager.
Principal and Emerging Risks
There are a number of risks which, if realised, could have a material adverse
effect on the Company and its financial condition, performance and prospects.
The Board has undertaken a robust review of the principal and emerging risks
and uncertainties facing the Company including those that would threaten its
business model, future performance, solvency or liquidity. Those principal
risks are disclosed in the table below together with a description of the
mitigating actions taken by the Board. The principal risks associated with an
investment in the Company's shares are published monthly on the Company's
factsheet or they can be found in the Pre-Investment Disclosure Document
published by the Investment Manager, both of which are available on the
Company's website.
The Board reviews the risks and uncertainties faced by the Company in the form
of a risk matrix and heat map at its Audit Committee meetings. The Board also
has a process to consider emerging risks and if any of these are deemed to be
significant they are categorised, rated and added to the risk matrix for
closer monitoring.
The Board considers that there are a number of other risks which, if realised,
could have a material adverse effect on the Company and its financial
condition, performance and prospects. These include various geopolitical
tensions.
Risk Management Mitigating Action
Investment strategy & objectives - the setting of an unattractive The Board keeps the investment objective and policy as well as the level of
strategic proposition to the market and the failure to adapt to changes in discount and/or premium at which the Company's shares trade under review. In
investor demand could lead to the Company becoming unattractive to investors, particular, there are periodic strategy discussions where the Board reviews
a decreased demand for its shares and a widening discount. the Investment Manager's investment processes, analyses the work of the
Investment Manager's Promotional and Investor Relations teams and receives
reports on the market from the Broker. In addition, the Directors are updated
at each Board meeting on the make-up of and any movements in the shareholder
register.
As set out in more detail in the Chairman's Statement, during the year the
Board introduced an enhanced dividend policy as part of efforts to broaden the
appeal of the Company's shares to a wider range of investors and to reflect
the sustained investor appetite for yield in the current interest rate
environment. To further align with shareholder interests, the Board also
announced the introduction of a continuation vote so that shareholders can
decide whether they wish the Company to continue in its current form at
regular intervals. A continuation vote will first be tabled at the Company's
AGM in 2028, and every three years thereafter.
Investment portfolio & investment management - the appointment or The Board sets the investment restrictions and guidelines in which the
continuing appointment of an investment manager with inadequate resources, Investment Manager may operate, and reviews the Investment Manager's adherence
skills or experience or which makes poor investment decisions could result in with these, as well as detailed performance reports, at each Board meeting.
poor investment performance, a loss of value for shareholders and a widening The Investment Manager is represented at all Board meetings.
discount.
The Management Engagement Committee formally reviews the performance and
contractual arrangements with the Investment Manager on an annual basis.
The financial risks associated with the Company include market risk, liquidity
risk and credit risk, all of which are mitigated in conjunction with the
Investment Manager. Further details are contained in note 18 to the financial
statements.
Income & Dividend - the dividend becomes significantly uncovered or The Directors review revenue forecasts at each Board meeting and receive
unsustainable, or the dividend policy fails to meet investor demand, leading shareholder feedback from the Investment Manager and Broker on the
to a decreased demand for the Company's shares and a widening discount. attractiveness of the dividend.
In the event of an uncovered dividend, the Company has the ability to find
dividends from a combination of revenue and capital reserves.
Marketing & Shareholder Communication - the setting of an inappropriate The Board recognises the importance of an effective marketing strategy to help
marketing strategy or a failure to address shareholder concerns could result support liquidity in the Company's shares and reduce the discount.
in the Company not growing its audience of income seeking investors leading to
a decline in demand for its shares and a widening of the discount.
In addition to marketing activities conducted by the Investment Manager, the
Board has engaged an external PR agent to help raise the Company's profile.
The Board annually agrees marketing and communications programmes and budgets
with the Investment Manager and PR agent, and receives updates regularly on
these activities.
The Board receives shareholder feedback from the Investment Manager and Broker
and the Directors are updated at each Board meeting on the composition of, and
any movements in, the shareholder register. The Chairman responds directly to
shareholder correspondence as required and copies of shareholder letters are
included in Board papers.
Discount Management - failure to manage the discount effectively could lead to The Board keeps the level of discount and/or premium at which the Company's
a fall in the share price relative to the NAV per share, a wider discount shares trade under review. The Directors aim to operate an active share
compared to the Company's peers and a loss of shareholder confidence. buyback policy should the price at which the Ordinary shares trade relative to
the NAV per share (including income) be at a discount of more than 5% in
normal market conditions.
The Company bought back 7.8 million Ordinary shares during the year to be held
in treasury, representing 5.2% of the shares in issue at the start of the
year, at an average discount of 10.2% and providing an estimated enhancement
of 0.5% to the NAV per share.
Regulatory - a failure to comply with relevant laws and regulations (including The Board-appointed Compliance Officer, together with the Investment Manager's
those in Jersey and the UK) could result in the Company being subject to compliance team, perform compliance monitoring to ensure the Company's
fines, censures or lawsuits or the loss of investment trust status, causing a compliance with applicable laws and regulatory obligations, and from time to
fall in investor confidence and loss of shareholder value. time the Board employs external advisers to advise on specific issues.
The Board reviews the Compliance Officer's and Investment Manager's compliance
reports at each Board meeting.
Operational - control failures and gaps in the systems and services of third The Board receives reports from the Investment Manager and other third party
party service providers (including the Investment Manager) could result in service providers on their internal controls and risk management processes,
losses or damage to the Company. including on matters relating to operational resilience.
Written agreements are in place with all third party service providers. The
Investment Manager monitors closely the control environments and quality of
services provided by its outsourced service providers through service level
agreements, regular meetings and key performance indicators.
The Management Engagement Committee formally reviews the performance and
contractual arrangements with the Company's third party service providers on
an annual basis.
Further details of the internal controls which are in place are set out in the
Directors' Report.
Cyber - control failures or the absence of adequate IT security systems of The Board receives reports from the Investment Manager and other third party
third party service providers (including the Investment Manager) could result service providers on their internal controls and risk management processes,
in losses or damage to the Company. including on matters relating to cyber security.
The Board receives a bi-annual presentation from the Investment Manager's
cyber security team.
The Investment Manager monitors closely the IT security controls of its
outsourced service providers.
Geo-Political - the impact of current and future geo-political events could The Board discusses geo-political developments with the Investment Manager at
result in losses to the Company. each Board meeting. The diversified nature of the portfolio and a managed
level of gearing both serve to provide a degree of protection in times of
market volatility.
Promoting the Company
The Board recognises the importance of communicating the long-term attractions
of the Company to prospective investors both for improving liquidity and
enhancing the value and rating of the Company's shares. The Board believes an
effective way to achieve this is through subscription to and participation in
the promotional programme run by the Aberdeen Group on behalf of a number of
investment companies under its management. The Company also supports the
Aberdeen investor relations programme which involves regional roadshows and
promotional and public relations campaigns. The purpose of these initiatives
is both to communicate effectively with existing shareholders and to gain new
shareholders with the aim of improving liquidity and enhancing the value and
rating of the Company's shares. The Company's financial contribution to the
programmes is matched by the Aberdeen Group.
The Company, through the Investment Manager, has also commissioned independent
paid-for research which is available to download from the Company's website.
In addition, the Board has appointed an external PR agent to work alongside
the Investment Manager in seeking to raise the profile of the Company.
Environmental, Social and Human Rights Issues
The Company has no employees as management of the assets is delegated to the
Investment Manager. There are therefore no disclosures to be made in respect
of employees.
Due to the nature of the Company's business, being a Company that does not
offer goods and services to customers, the Board considers that it is not
within the scope of the UK's Modern Slavery Act 2015 because it has no
turnover. The Company is therefore not required to make a slavery and human
trafficking statement.
UK Stewardship Code and Proxy Voting
The Company supports the UK's Stewardship Code, and seeks to play its role in
supporting good stewardship of the companies in which it invests. While the
delivery of stewardship activities has been delegated to the Investment
Manager, the Board acknowledges its role in setting the tone for the effective
delivery of stewardship on the Company's behalf.
Aberdeen Group plc is a signatory of the UK Stewardship Code which aims to
enhance the quality of engagement by investors with investee companies in
order to improve their socially responsible performance and the long-term
investment return to shareholders.
Sustainability Disclosure Requirements ("SDR")
In November 2023, the Financial Conduct Authority ("FCA") published its
sustainability disclosure requirements and investment labels regime ("SDR") to
address concerns about misleading sustainability claims. SDR includes an
opt-in labelling regime for sustainable investment products, additional
disclosure requirements and restrictions on the use of sustainability terms.
It also establishes anti-greenwashing ("AGW") rules. Investment trusts and
their managers are in scope of the SDR. Although investment trusts are not
directly in scope of the AGW requirements, the rules apply indirectly to them,
mostly via obligations imposed on their managers.
Although Environmental, Social and Governance ("ESG") factors are taken into
consideration by the Investment Manager as part of its investment analysis,
the Company itself does not have an explicit sustainability objective and so
under SDR is categorised as "Non-labelled" rather than "Labelled" or "Other".
Viability Statement
The Company does not have a formal fixed period strategic plan but the Board
formally considers risks and strategy at least annually. The Board considers
the Company, with no fixed life, to be a long-term investment vehicle, but for
the purposes of this viability statement has decided that a period of three
years is an appropriate period over which to report. The Board considers that
this period reflects a balance between looking out over a long-term horizon
and the inherent uncertainties of looking out further than three years. In
assessing the viability of the Company over the review period the Directors
have focused upon the following factors:
- the principal risks detailed in the Strategic Report;
- the ongoing relevance of the Company's investment objective in
the current environment;
- the demand for the Company's shares evidenced by the
historical level of premium and/or discount;
- the level of income generated by the Company;
- the liquidity of the Company's portfolio;
- the flexibility provided by the Company's £50 million
revolving credit facility; and
- the announcement by the Board during the year of the
introduction of a continuation vote which will first be tabled at the
Company's AGM in 2028, and every three years thereafter.
Accordingly, taking into account the Company's current position, the fact that
its investments are mostly liquid and the potential impact of its principal
risks and uncertainties, the Directors have a reasonable expectation that the
Company will be able to continue in operation and meet its liabilities as they
fall due for a period of three years from the date of this Report. In making
its assessment, the Board is also aware that there are other matters that
could have an impact on the Company's prospects or viability in the future,
including significant stock market volatility, and changes in regulation or
investor sentiment.
Future
Many of the non-performance related trends likely to affect the Company in the
future are common across all closed-end investment companies, such as the
attractiveness of investment companies as investment vehicles, the increased
focus on ESG factors when making investment decisions, the impact of
regulatory changes and the effects of changes to the pensions and savings
market in the UK in recent years. These factors need to be viewed alongside
the outlook for the Company, both generally and specifically, in relation to
the portfolio. The Board's view on the general outlook for the Company can be
found in the Chairman's Statement whilst the Investment Manager's views on the
outlook for the portfolio are included in its statement.
Ian Cadby
Chairman
17 March 2026
28 Esplanade
St Helier
Jersey JE2 3QA
DIVIDENDS AND TEN YEAR FINANCIAL RECORD
Dividends
Rate Ex-dividend date Record date Payment date
First interim 2025 3.65p 24 April 2025 25 April 2025 23 May 2025
Second interim 2025 3.84p 24 July 2025 25 July 2025 22 August 2025
Third interim 2025 4.29p 23 October 2025 24 October 2025 21 November 2025
Fourth interim 2025 4.46p 22 January 2026 23 January 2026 20 February 2026
2025 16.24p
First interim 2024 2.55p 25 April 2024 26 April 2024 24 May 2024
Second interim 2024 2.55p 25 July 2024 26 July 2024 23 August 2024
Third interim 2024 2.55p 24 October 2024 25 October 2024 22 November 2024
Fourth interim 2024 6.78p 23 January 2025 24 January 2025 21 February 2025
2024 14.43p
Ten Year Financial Record
Year to 31 December 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Total revenue (£'000) 20,947 21,758 21,056 20,996 16,942 20,198 21,841 24,021 22,286 25,989
Per Ordinary share (p)
Revenue return 9.15 9.58 9.25 9.42 7.41 8.95 10.23 11.97 11.35 14.73
Total return 49.12 33.14 (13.17) 22.29 27.10 25.88 (10.01) 5.18 21.49 50.95
Dividends payable 8.75 9.00 9.15 9.25 9.30 9.50 10.00 11.75 14.43 16.24
Net asset value per Ordinary share (p) 211.82 235.63 213.96 227.15 245.40 262.76 243.44 238.59 251.42 285.56
Share price per Ordinary share (p) 194.25 218.00 195.75 214.00 228.50 231.00 215.00 208.00 220.00 264.00
Equity shareholders' funds (£'000) 396,028 431,869 382,199 403,403 431,476 450,790 413,447 398,868 377,895 406,964
INVESTMENT PORTFOLIO
List of Investments
As at 31 December 2025
Valuation Total Valuation
2025 assets A 2024 B
Company Country £'000 % £'000
Taiwan Semiconductor Manufacturing Company Taiwan 50,837 11.6 56,804
Samsung Electronics (Pref) South Korea 28,753 6.6 12,650
Tencent Holdings Hong Kong 26,337 6.0 9,460
SITC International Holdings Hong Kong 14,053 3.2 6,130
DBS Group Singapore 13,806 3.2 14,512
Alibaba China 13,105 3.0 -
HDFC Bank India 12,655 2.9 -
Ping An Insurance China 10,691 2.4 -
Region RE Australia 9,567 2.2 5,582
ASE Technology Taiwan 9,395 2.1 -
Top ten investments 189,199 43.2
Samsung Fire & Marine Insurance South Korea 8,898 2.0 -
Tata Consultancy Services India 8,886 2.0 6,647
China Resources Mixc Lifestyle Services China 8,453 1.9 -
MediaTek Taiwan 8,188 1.9 10,097
SK Hynix South Korea 7,939 1.8 1,575
Hang Lung Properties Hong Kong 7,654 1.8 2,630
China Construction Bank China 7,012 1.6 9,970
SCB X Thailand 6,958 1.6 -
Sino-American Silicon Products Taiwan 6,776 1.5 -
NetEase Hong Kong 6,605 1.5 -
Top twenty investments 266,568 60.8
Capitaland India Trust Singapore 6,509 1.5 6,077
BHP Group Australia 6,463 1.5 10,580
Charter Hall Long Wale REIT Australia 6,091 1.4 6,995
Yutong China 5,970 1.4 -
Centurion Accommodation Singapore 5,951 1.4 -
Rio Tinto C Australia 5,847 1.3 7,250
Quanta Computer Taiwan 5,711 1.3 -
China Merchants Bank 'H' China 5,480 1.3 -
Fuyao Glass Industry 'A' China 5,475 1.2 3,393
Infosys India 5,414 1.2 5,884
Top thirty investments 325,479 74.3
Bank Mandiri Indonesia 5,364 1.2 6,631
Amcor Australia 5,037 1.1 -
Telekomunikasi Indonesia Persero Indonesia 4,894 1.1 -
Metcash Australia 4,749 1.1 -
Shinhan Financial South Korea 4,636 1.1 -
PTT Exploration & Production (Alien) Thailand 4,624 1.1 -
Accton Technology Taiwan 4,551 1.0 8,593
Inner Mongolia Yili Industrial 'A' China 4,385 1.0 4,398
Bank Rakyat Indonesia 4,348 1.0 -
Australia & New Zealand Banking Australia 4,344 1.0 -
Top forty investments 372,411 85.0
Power Grid Corporation India 4,204 1.0 14,688
Mirvac Group Australia 4,195 1.0 12,012
Shenzhou International Hong Kong 4,104 0.9 -
Midea Group 'A' China 4,103 0.9 7,140
DB Insurance South Korea 4,017 0.9 -
Commonwealth Bank of Australia Australia 3,787 0.9 8,120
Midea Group 'H' China 3,738 0.8 1,794
China Resources Land China 3,505 0.8 4,761
Medibank Private Australia 3,214 0.7 -
Tisco Financial Group Foreign Thailand 2,944 0.7 6,661
Top fifty investments 410,222 93.6
IndiGrid India 2,782 0.6 -
Osotspa Thailand 2,737 0.6 -
Taiwan Union Technology Taiwan 2,630 0.6 4,165
PICC Property and Casualty 'H' China 2,344 0.5 5,564
Centuria Industrial REIT Australia 2,026 0.5 5,133
Bajaj Auto India 1,926 0.5 -
Top fifty-six investments 424,667 96.9
Total value of investments 424,667 96.9
Net current assetsD 13,697 3.1
Total assets A 438,364 100.0
A Net assets excluding borrowings.
B Purchases and/or sales effected during the year may result in 2025
and 2024 values not being directly comparable.
C Incorporated in and listing held in United Kingdom.
D Excludes bank loans of £31,400,000
DIRECTORS' REPORT (EXTRACT)
Introduction
The Directors present their Report and the audited financial statements for
the year ended 31 December 2025.
Results and Dividends
The financial statements for the year ended 31 December 2025 are contained
below. The Company's dividend policy is to pay interim dividends on a
quarterly basis and for the year to 31 December 2025 dividends were paid on 23
May, 22 August and 21 November 2025 and 20 February 2026.
Status
The Company is registered with limited liability in Jersey as a closed-end
investment company under the Companies (Jersey) Law 1991 with registered
number 91671 and regulated as an Alternative Investment Fund by the Jersey
Financial Services Commission. In addition, the Company constitutes and is
regulated as a collective investment fund under the Collective Investment
Funds (Jersey) Law 1988 and is an Alternative Investment Fund (within the
meaning of Regulation 3 of the Alternative Investment Fund Regulations). The
Company has no employees and makes no political donations. The Ordinary shares
are admitted to the Official List and are traded on the London Stock
Exchange's Main Market.
With effect from 1 January 2022 the Company applied to HM Revenue &
Customs to become an investment trust subject to the Company continuing to
meet the relevant eligibility conditions of Section 1158 of the Corporation
Tax Act 2010 and the ongoing requirements of Part 2 Chapter 3 Statutory
Instrument 2011/2999 for all financial years commencing on or after 1 January
2022. The Directors are of the opinion that the Company has conducted its
affairs for the period from 1 January 2022 so as to enable it to comply with
the ongoing requirements for investment trust status.
The Company is a member of the Association of Investment Companies ("AIC").
Individual Savings Accounts
The Company has conducted its affairs so as to satisfy the requirements as a
qualifying security for Individual Savings Accounts. The Directors intend that
the Company will continue to conduct its affairs in this manner.
Capital Structure, Issuance and Buybacks
The Company's capital structure is summarised in note 15 to the financial
statements. At 31 December 2025, there were 142,515,862 fully paid Ordinary
shares of no par value (2024 - 150,306,492) in issue. At the year end there
were 52,417,527 Ordinary shares held in treasury (2024 - 44,626,897).
During the year 7,790,630 Ordinary shares were purchased in the market for
treasury (2024 - 16,872,215) and no Ordinary shares were issued or sold from
treasury.
There have been no share buy backs since the end of the year.
Voting Rights
Each Ordinary share holds one voting right and shareholders are entitled to
vote on all resolutions which are proposed at general meetings of the Company.
The Ordinary shares, excluding treasury shares, carry a right to receive
dividends. On a winding up or other return of capital, after meeting the
liabilities of the Company, the surplus assets will be paid to Ordinary
shareholders in proportion to their shareholdings. There are no restrictions
on the transfer of Ordinary shares in the Company other than certain
restrictions which may be applied from time to time by law.
Borrowings
At the year end the Company had a £50 million loan with the Bank of Nova
Scotia, London Branch. Since the year end, the Company has renewed the
facility on an evergreen basis. Under the terms of the facility, the Company
has the option to increase the level of the commitment from £50 million to
£70 million at any time, subject to the lender's credit approval.
Management and Company Secretarial Arrangements
abrdn Asia Limited (a Singapore-based wholly-owned subsidiary of Aberdeen
Group plc) has been appointed by the Company to provide portfolio and risk
management services and to act as the Company's non-EU 'alternative investment
fund manager' for the purposes of the Alternative Investment Fund Managers
Directive 2011/61/EU. abrdn Investments Limited (a UK-based wholly owned
subsidiary of Aberdeen Group plc), which is authorised and regulated by the
Financial Conduct Authority, has been appointed to provide general
administrative and advisory services, fund accounting, secretarial, marketing
and promotional activities as well as group risk and compliance reporting to
the Company.
In addition, the Company has appointed JTC Fund Solutions (Jersey) Limited
("JTC") under an administration agreement between JTC and the Company to
provide certain Jersey based services including, but not limited to, Jersey
administration services and compliance with applicable Jersey codes (including
provision of a compliance officer, money laundering reporting officer and
money laundering compliance officer). JTC also provides a registered office
and company secretarial services. The administration fee charged by JTC is met
by the Aberdeen Group.
Termination of the management agreement is subject to six months' notice.
Further details of the management fee arrangements are contained in notes 5
and 20 to the financial statements.
Risk Management
Details of the financial risk management policies and objectives relative to
the use of financial instruments by the Company are set out in note 18 to the
financial statements.
Substantial Interests
Information provided to the Company by major shareholders pursuant to the
FCA's Disclosure Guidance and Transparency Rules are published by the Company
via a Regulatory Information Service.
The table below sets out the interests in 3% or more of the issued share
capital of the Company, of which the Board was aware as of 31 December 2025.
No of Shares %
Shareholder Held Held
Interactive Investor 22,026,398 15.5
Hargreaves Lansdown 17,116,751 12.0
Rathbones 10,489,614 7.4
City of London Investment Management 9,266,084 6.5
AJ Bell 6,935,832 4.9
Charles Stanley 5,894,852 4.1
Raymond James Investment Services 4,509,027 3.2
Since the year end, City of London Investment Management has notified the
Company of a reduced holding of 6,925,439 Ordinary shares (4.9%). There have
been no other changes notified to the Company since the year end.
Directors
The Board consists of five non-executive Directors, Robert Kirkby, Mark
Florance, Ian Cadby, Nicky McCabe and Jane Routledge, each of whom held office
throughout the year. Krystyna Nowak retired as a Director on 8 May 2025.
The AIC Corporate Governance Code recommends that all Directors should be
subject to annual re-election by shareholders. Accordingly, all members of the
Board, other than Ian Cadby, will retire at the Annual General Meeting ("AGM")
and will offer themselves for election/ re-election. Having served as a
Director for more than nine years, Ian Cadby will retire from the Board at the
AGM.
The Board considers that there is a balance of skills and experience within
the Board relevant to the leadership and direction of the Company and that all
the Directors contribute effectively. The Board has reviewed each of the
proposed elections/re-elections and concluded that each of the Directors has
the requisite high level and range of business and financial experience and
recommends their election/re-election at the forthcoming AGM.
In common with most investment companies, the Company has no employees.
Directors' & Officers' liability insurance cover has been maintained
throughout the year at the expense of the Company.
Directors attended the following scheduled Board and Committee meetings during
the year ended 31 December 2025 (with their eligibility to attend the relevant
meeting in brackets):
Board Audit MEC Nom
Total Meetings 4 2 1 1
I Cadby A 4 (4) 2 (2) 1 (1) 1 (1)
M Florance 4 (4) 2 (2) 1 (1) 1 (1)
R Kirkby 4 (4) 2 (2) 1 (1) 1 (1)
N McCabe 4 (4) 2 (2) 1 (1) 1 (1)
K Nowak B 1 (2) -(1) -(1) -(1)
J Routledge 4 (4) 2 (2) 1 (1) 1 (1)
A Mr Cadby is not a member of the Audit Committee but attended both
meetings by invitation.
B Retired as a Director on 8 May 2025
In addition to the above meetings there were a number of ad hoc Board meetings
held during the year to review and approve dividends and other operational
matters.
The Role of the Chairman and Senior Independent Director
The Chairman is responsible for providing effective leadership to the Board,
by setting the tone of the Company, demonstrating objective judgement and
promoting a culture of openness and debate. The Chairman facilitates the
effective contribution, and encourages active engagement, by each Director. In
conjunction with the Company Secretary, the Chairman ensures that Directors
receive accurate, timely and clear information to assist them with effective
decision-making. The Chairman leads the evaluation of the Board and individual
Directors, and acts upon the results of the evaluation process by recognising
strengths and addressing any weaknesses. The Chairman also engages with major
shareholders and ensures that all Directors understand shareholder views.
The Senior Independent Director acts as a sounding board for the Chairman and
acts as an intermediary for other Directors, when necessary. Working closely
with the Nomination and Remuneration Committee, the Senior Independent
Director takes responsibility for an orderly succession process for the
Chairman, and leads the annual appraisal of the Chairman's performance. The
Senior Independent Director is also available to shareholders to discuss any
concerns they may have.
Policy on Tenure
In normal circumstances, it is the Board's expectation that Directors will not
serve serve beyond the AGM following the ninth anniversary of their
appointment. However, the Board takes the view that independence of individual
Directors is not necessarily compromised by length of tenure on the Board and
that continuity and experience can add significantly to the Board's strength.
The Board believes that recommendation for re-election should be on an
individual basis following a rigorous review which assesses the contribution
made by the Director concerned, but also taking into account the need for
managed succession and diversity.
It is the Board's policy that the Chairman of the Board will not serve as a
Director beyond the AGM following the ninth anniversary of his or her
appointment to the Board. However, this may be extended in exceptional
circumstances or to facilitate effective succession planning and the
development of a diverse Board. In such a situation the reasons for the
extension will be fully explained to shareholders and a timetable for the
departure of the Chairman clearly set out.
Matters Reserved for the Board
The Board has a schedule of matters reserved to it for decision and the
requirement for Board approval on these matters is communicated directly to
the senior staff of the Investment Manager. Such matters include strategy,
gearing, treasury and dividend policy. Full and timely information is provided
to the Board to enable the Directors to function effectively and to discharge
their responsibilities. The Board also reviews the financial statements,
performance and revenue budgets.
Management of Conflicts of Interests
The Board has a procedure in place to deal with a situation where a Director
has a conflict of interest. As part of this process, the Directors are
required to disclose other positions held and all other conflict situations
that may need to be authorised either in relation to the Director concerned or
his or her connected persons. The Board considers each Director's situation
and decides whether to approve any conflict, taking into consideration what is
in the best interests of the Company and whether the Director's ability to act
in accordance with his or her wider duties is affected. Each Director is
required to notify the Company Secretary of any potential or actual conflict
situations that will need authorising by the Board. Authorisations given by
the Board are reviewed at each Board meeting.
No Director has a service contract with the Company although Directors are
issued with letters of appointment upon appointment. No Directors had any
interest in contracts with the Company during the period or subsequently.
The Company has a policy of conducting its business in an honest and ethical
manner. The Company takes a zero tolerance approach to bribery and corruption
and has procedures in place that are proportionate to the Company's
circumstances to prevent them. The Aberdeen Group also adopts a group-wide
zero tolerance approach and has its own detailed policy and procedures in
place to prevent bribery and corruption. Copies of the Aberdeen Group's
anti-bribery and corruption policies are available on its website.
Board Diversity
The Board recognises the importance of having a range of skilled, experienced
individuals with the right knowledge represented on the Board in order to
allow it to fulfil its obligations. The Board also recognises the benefits,
and is supportive of, the principle of diversity in its recruitment of new
Board members, including diversity of thought, location and background. The
Board will not display any bias for age, gender, race, sexual orientation,
religion, ethnic or national origins, or disability in considering the
appointment of its Directors. In view of its size, the Board will continue to
ensure that all appointments are made on the basis of merit against the
specification prepared for each appointment. In doing so, the Board will take
account of the targets set out in the FCA's Listing Rules, which are set out
below.
The Board has resolved that the Company's year-end date is the most
appropriate date for disclosure purposes. In addition to the information
contained below, of the five Directors at 31 December 2025, one is based in
Singapore, two are based in Jersey and two are based in the UK.
Table for reporting on gender as at 31 December 2025
Number of senior positions on the Board
Number of Board Percentage of the
members Board (note 1)
Men 3 60% 4
Women 2 40% 1
Not specified/prefer not to say - - -
Table for reporting on ethnic background as at 31 December 2025
Number of senior
Number of Board Percentage of the positions on the Board
members Board (note 1)
White British or other White (including minority-white groups)
5 100% 5
Minority ethnic - - -
Not specified/prefer not to say - - -
Notes:
1. The Company is externally managed and does not have any executive staff.
Specifically, it does not have either a CEO or CFO. The Board considers that
the roles of Chairman of the Board, Senior Independent Director, and the
chairs of the Audit Committee, Management Engagement Committee and Nomination
and Remuneration Committee are Senior Board Positions.
As shown in the above table, the Company has not met the target set out in LR
6.6.6R (9)(a)(iii) that at least one Director is from a minority ethnic
background. The Board will continue to take ethnic diversity into account for
future appointments.
Corporate Governance
The Company is committed to high standards of corporate governance. The Board
is accountable to the Company's shareholders for good governance and this
statement describes how the Company has applied the principles identified in
the UK Corporate Governance Code as published in January 2024 (the "UK Code"),
which is available on the Financial Reporting Council's (the "FRC") website:
frc.org.uk.
The Board has also considered the principles and provisions of the AIC
Corporate Governance Code as published in August 2024 (the "AIC Code"). The
AIC Code addresses the principles and provisions set out in the UK Code, as
well as setting out additional provisions on issues that are of specific
relevance to investment companies. The AIC Code is available on the AIC's
website: theaic.co.uk. It includes an explanation of how the AIC Code adapts
the principles and provisions set out in the UK Code to make them relevant for
investment companies.
The Board considers that reporting against the principles and provisions of
the AIC Code, which has been endorsed by the Financial Reporting Council
("FRC") and the Jersey Financial Services Commission ("JFSC"), provides more
relevant information to shareholders.
The Board confirms that, during the year, the Company complied with the
principles and provisions of the AIC Code and the relevant provisions of the
UK Code, except as set out below.
The UK Code includes provisions relating to:
- interaction with the workforce (provisions 2, 5 and 6);
- the role and responsibility of the chief executive (provisions 9 and
14);
- previous experience of the chairman of a remuneration committee
(provision 32); and
- executive directors' and workforce remuneration (provisions 33 and
36 to 41).
These positions are not repeated in the AIC Code and the Board considers that
they are not relevant to the position of the Company, being an externally
managed investment company. In particular, all of the Company's day-to-day
management and administrative functions are outsourced to third parties. As a
result, the Company has no executive directors, employees or internal
operations. The Company has therefore not reported further in respect of these
provisions.
Full details of the Company's compliance with the provisions of the AIC Code
can be found on its website.
The Board is conscious of the updated provisions in the UK Code (provision 29)
and the AIC Code (provision 34), which are effective for accounting periods
beginning on or after 1 January 2026. These provisions relate to the reporting
on the Board's monitoring and review of the Company's internal control
framework and a declaration by the Board of the effectiveness of the Company's
material controls at the balance sheet date. The Board has established a
process for identifying and monitoring the Company's material controls and it
is the Board's intention that the Company will comply with these updated
provisions during the current financial year and include the required
disclosures in the Annual Report for the year ended 31 December 2026.
Going Concern
The Directors have undertaken a robust review of the Company's viability
(refer to statement above) and ability to continue as a going concern. The
Company's assets consist primarily of a diverse portfolio of listed equity
shares which in most circumstances are realisable within a very short
timescale.
The Directors have reviewed forecasts detailing revenue and liabilities, have
set limits for borrowing and reviewed compliance with banking covenants,
including the headroom available.
Since the year end, the Company has renewed its £50 million revolving credit
facility on an evergreen basis with Bank of Nova Scotia, London Branch, its
existing lender.
Having taken these factors into account, the Directors believe that the
Company has adequate financial resources to continue in operational existence
for the foreseeable future and at least 12 months from the date of this Annual
Report. Accordingly, the Directors continue to adopt the going concern basis
in preparing these financial statements.
Accountability and Audit
Each Director confirms that, so far as he or she is aware, there is no
relevant audit information of which the Company's Auditor is unaware, and he
or she has taken all the steps that they ought to have taken as a Director in
order to make themselves aware of any relevant audit information and to
establish that the Company's Auditor is aware of that information.
Independent Auditor
A resolution to re-appoint KPMG Audit Limited (previously KPMG Channel Islands
Limited) as the Company's Auditor and to authorise the Directors to fix the
Auditor's remuneration will be put to shareholders at the AGM to be held on 12
May 2026.
Internal Controls and Risk Management
The Board of Directors is ultimately responsible for the Company's system of
internal control and for maintaining its effectiveness. Day-to-day measures
have been delegated to the Investment Manager and Company Secretary with an
effective process of reporting to the Board for supervision and control.
The Directors confirm that there is an ongoing process for identifying,
evaluating and managing the principal risks faced by the Company. This process
has been in place for the full year under review and up to the date of
approval of the financial statements, is regularly reviewed by the Board and
accords with the FRC Guidance on internal controls.
The design, implementation and maintenance of controls and procedures to
safeguard the assets of the Company and to manage its affairs properly extends
to financial, operational and compliance controls and risk management. The
Board has prepared its own risk register which identifies potential risks as
summarised above. The Board considers the potential cause and possible impact
of these risks as well as reviewing the controls in place to mitigate these
potential risks. A risk is rated by having a likelihood and an impact rating
and the residual risk is plotted on a "heat map" and is reviewed regularly.
The Board has reviewed the effectiveness of the system of internal control
and, in particular, it has reviewed the process for identifying and evaluating
the principal risks faced by the Company and the policies and procedures by
which these risks are managed.
The Directors have delegated the investment management of the Company's assets
to the Investment Manager within overall guidelines. This embraces
implementation of the system of internal control, including financial,
operational and compliance controls and risk management. Internal control
systems are monitored and supported by the Investment Manager's internal audit
function which undertakes periodic examination of business processes,
including compliance with the terms of the management agreement, and ensures
that recommendations to improve controls are implemented.
Risks are identified and documented through a risk management framework by
each function within the Investment Manager's activities. Risk is considered
in the context of the FRC Guidance and includes financial, regulatory, market,
operational and reputational risk. This helps the internal audit risk
assessment model identify those functions for review. Any relevant weaknesses
identified are reported to the Board and timetables are agreed for
implementing improvements to systems. The implementation of any remedial
action required is monitored and feedback provided to the Board.
The key components designed to provide effective internal control for the year
under review and up to the date of this Report are outlined below:
- the Investment Manager prepares forecasts and management accounts
which allow the Board to assess the Company's activities and review its
investment performance;
- the Board and Investment Manager have agreed clearly defined
investment criteria;
- there are specified levels of authority and exposure limits. Reports
on these issues, including performance statistics and investment valuations,
are regularly submitted to the Board. The Investment Manager's investment
process and financial analysis of the companies concerned include detailed
appraisal and due diligence;
- written agreements are in place which specifically define the roles
and responsibilities of the Investment Manager and other third-party service
providers and the Audit Committee reviews, where relevant, ISAE3402 Reports, a
global assurance standard for reporting on internal controls for service
organisations. The Board has reviewed the exceptions arising from abrdn
Investments Limited's ISAE3402 Report for the year to 30 September 2025, none
of which were judged to be of direct relevance to the Company;
- the Board has considered the need for an internal audit function
but, because of the compliance and internal control systems in place within
the Aberdeen Group, has decided to place reliance on the Aberdeen Group's
systems and internal audit procedures; and
- twice a year, at its meetings, the Audit Committee carries out an
assessment of internal controls by considering documentation from the
Investment Manager, including its internal audit and compliance functions and
taking account of events since the relevant period end.
In addition, the Investment Manager ensures that clearly documented
contractual arrangements exist in respect of any activities that have been
delegated by it to external professional organisations.
Representatives from the Investment Manager's internal audit department report
six monthly to the Audit Committee and have direct access to the Directors at
any time.
The internal control systems are designed to meet the Company's particular
needs and the risks to which it is exposed. Accordingly, the internal control
systems are designed to manage rather than eliminate the risk of failure to
achieve business objectives and, by their nature, can provide reasonable but
not absolute assurance against material misstatement or loss.
Relations with Shareholders
The Directors place a great deal of importance on communication with
shareholders. The Chairman welcomes feedback from all shareholders and meets
periodically with the largest shareholders to discuss the Company. The Annual
Report and financial statements are available on the Company's website and are
widely distributed to other parties who have an interest in the Company's
performance. Shareholders and investors may obtain up to date information on
the Company through its website.
The Notice of the AGM included within the Annual Report and financial
statements is ordinarily sent to shareholders at least 20 working days in
advance of the meeting. All shareholders have the opportunity to put questions
to the Board or Investment Manager, either formally at the Company's AGM or
informally following the meeting.
The Company Secretary is available to answer general shareholder queries at
any time throughout the year. The Directors are keen to encourage dialogue
with shareholders and the Chairman welcomes direct contact from shareholders.
The Board's policy is to communicate directly with shareholders and their
representative bodies without the involvement of the management group in
situations where direct communication is required and usually a representative
from the Board meets with major shareholders on an annual basis in order to
gauge their views.
Alternative Investment Fund Managers Directive ("AIFMD")
In accordance with the Alternative Investment Funds (Jersey) Regulations 2012,
the Jersey Financial Services Commission ("JFSC") has granted its permission
for the Company to be marketed within any EU Member State or other EU State to
which the AIFMD applies. The Company's registration certificate with the JFSC
mandates that the Company "must comply with the applicable sections of the
Codes of Practice for Alternative Investment Funds and AIF Services Business".
abrdn Asia Limited, as the Company's non-EEA alternative investment fund
manager, has notified the UK Financial Conduct Authority in accordance with
the requirements of the UK National Private Placement Regime of its intention
to market the Company (as a non-EEA AIF under the AIFMD) in the UK.
In addition, in accordance with Article 23 of the AIFMD and Rule 3.2.2 of the
Financial Conduct Authority ("FCA") Fund Sourcebook, abrdn Asia Limited is
required to make available certain disclosures for potential investors in the
Company. These disclosures, in the form of a Pre-Investment Disclosure
Document ("PIDD"), are available on the Company's website.
Annual General Meeting ("AGM")
The AGM will be held at 12 noon on 12 May 2026 at 18 Bishops Square, London E1
6EG.
Ian Cadby
Chairman
17 March 2026
28 Esplanade
St Helier
Jersey JE2 3QA
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The Directors are responsible for preparing the Annual Report and financial
statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each
financial year. Under that law they are required to prepare the financial
statements in accordance with International Financial Reporting Standards as
issued by the IASB and applicable law.
Under company law the Directors must not approve the financial statements
unless they are satisfied that they give a true and fair view of the state of
affairs of the Company and of its profit or loss for that period. In preparing
these financial statements, the Directors are required to:
- select suitable accounting policies and then apply them
consistently;
- make judgements and estimates that are reasonable, relevant
and reliable;
- state whether applicable accounting standards have been
followed, subject to any material departures disclosed and explained in the
financial statements;
- assess the Company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern; and
- use the going concern basis of accounting unless they either
intend to liquidate the Company or to cease operations or have no realistic
alternative but to do so.
The Directors are responsible for keeping adequate accounting records that are
sufficient to show and explain the Company's transactions and disclose with
reasonable accuracy at any time the financial position of the Company and
enable them to ensure that its financial statements comply with the Companies
(Jersey) Law 1991. They are responsible for such internal controls as they
determine are necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error, and have
general responsibility for taking such steps as are reasonably open to them to
safeguard the assets of the Company and to prevent and detect fraud and other
irregularities.
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company's website.
Legislation in Jersey governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
The Directors confirm that, so far as they are aware, there is no relevant
audit information of which the Company's Auditor is unaware, and that each
Director has taken all the steps he or she ought to have taken as a Director
to make himself or herself aware of any relevant audit information and to
establish that the Company's Auditor is aware of that information.
Responsibility Statement of the Directors in Respect of the Annual Financial
Report
The Directors confirm that to the best of their knowledge:
- the financial statements, prepared in accordance with the
applicable set of accounting standards, give a true and fair view of the
assets, liabilities, financial position and profit or loss of the Company; and
- the Strategic Report and Directors' Report include a fair
review of the development and performance of the business and the position of
the Company, together with a description of the principal risks and
uncertainties that it faces.
The Directors consider the Annual Report and financial statements, taken as a
whole, is fair, balanced and understandable and provides the information
necessary for shareholders to assess the Company's position and performance,
business model and strategy.
Ian Cadby
Chairman
17 March 2026
28 Esplanade
St Helier
Jersey JE2 3QA
The Directors are responsible for the maintenance and integrity of the
corporate and financial information included on the Company's website, but not
the content of any information included on the website that has been prepared
or issued by third parties. Legislation in Jersey governing the preparation
and dissemination of financial statements may differ from legislation in other
jurisdictions.
STATE MENT OF COMPREHENSIVE INCOME
Year ended Year ended
31 December 2025 31 December 2024
Revenue Capital Total Revenue Capital Total
Notes £'000 £'000 £'000 £'000 £'000 £'000
Investment income 4
Dividend income 25,722 - 25,722 21,918 - 21,918
Interest income 264 - 264 325 - 325
Stock lending income 3 - 3 43 - 43
Total revenue 3 25,989 - 25,989 22,286 - 22,286
Gains on investments held at fair value through profit or loss 11 - 54,231 54,231 - 20,372 20,372
Net currency gains/(losses) - 122 122 - (773) (773)
25,989 54,353 80,342 22,286 19,599 41,885
Expenses
Investment management fee 5 (1,015) (1,324) (2,339) (1,053) (1,315) (2,368)
Other operating expenses 6 (1,124) - (1,124) (1,049) - (1,049)
Profit before finance costs and tax 23,850 53,029 76,879 20,184 18,284 38,468
Finance costs 7 (665) (998) (1,663) (780) (1,170) (1,950)
Profit before tax 23,185 52,031 75,216 19,404 17,114 36,518
Tax expense 2d, 8 (1,804) 552 (1,252) (1,338) (968) (2,306)
Profit for the year 21,381 52,583 73,964 18,066 16,146 34,212
Earnings per Ordinary share (pence) 10 14.73 36.22 50.95 11.35 10.14 21.49
The Company does not have any income or expense that is not included in
profit/(loss) for the year, and therefore the "Profit/(loss) for the year" is
also the "Total comprehensive income for the year".
All of the profit/(loss) and total comprehensive income is attributable to the
equity holders of Aberdeen Asian Income Fund Limited. There are no
non-controlling interests.
The total column of this statement represents the Statement of Comprehensive
Income of the Company, prepared in accordance with IFRS Accounting Standards.
The revenue and capital columns are supplementary to this and are prepared
under guidance published by the Association of Investment Companies. All items
in the above statement derive from continuing operations.
The accompanying notes are an integral part of the financial statements.
STATEMENT OF FINANCIAL POSITION
As at As at
31 December 2025 31 December 2024
Notes £'000 £'000
Non-current assets
Investments held at fair value through profit or loss 11 424,667 406,041
Current assets
Cash and cash equivalents 8,531 9,349
Other receivables 12 13,212 1,421
21,743 10,770
Current liabilities
Bank loans 13(a) (31,400) (32,422)
Other payables 13(b) (8,046) (4,788)
(39,446) (37,210)
Net current liabilities (17,703) (26,440)
Total assets less current liabilities 406,964 379,601
Non-current liabilities
Deferred tax liability on Indian capital gains 13(c) - (1,706)
- (1,706)
Net assets 406,964 377,895
Equity
Stated capital 15 194,933 194,933
Capital redemption reserve 1,560 1,560
Capital reserve 16 202,593 167,722
Revenue reserve 7,878 13,680
Equity shareholders' funds 406,964 377,895
Net asset value per Ordinary share (pence) 17 285.56 251.42
STATEMENT OF CHANGES IN EQUITY
For the year ended 31 December 2025
Capital
Stated redemption Capital Revenue Retained
capital reserve reserve reserve earnings Total
Note £'000 £'000 £'000 £'000 £'000 £'000
Opening balance 194,933 1,560 167,722 13,680 - 377,895
Buyback of Ordinary shares for treasury 15 - - (17,712) - - (17,712)
Profit for the year - - - - 73,964 73,964
Transferred from retained earnings to capital reserve A - - 52,583 - (52,583) -
Transferred from retained earnings to revenue reserve - - - 21,381 (21,381) -
Dividends paid 9 - - - (27,183) - (27,183)
Balance at 31 December 2025 194,933 1,560 202,593 7,878 - 406,964
For the year ended 31 December 2024
Capital
Stated redemption Capital Revenue Retained
capital reserve reserve reserve earnings Total
Note £'000 £'000 £'000 £'000 £'000 £'000
Opening balance 194,933 1,560 187,549 14,826 - 398,868
Buyback of Ordinary shares for treasury 15 - - (35,973) - - (35,973)
Profit for the year - - - - 34,212 34,212
Transferred from retained earnings to capital reserve A - - 16,146 - (16,146) -
Transferred from retained earnings to revenue reserve - - - 18,066 (18,066) -
Dividends paid 9 - - - (19,212) - (19,212)
Balance at 31 December 2024 194,933 1,560 167,722 13,680 - 377,895
A Represents the capital profit/(loss) attributable to equity shareholders
per the Statement of Comprehensive Income.
The stated capital in accordance with Companies (Jersey) Law 1991 Article 39A
is £260,822,000 (2024 - £260,822,000). These amounts include proceeds
arising from the issue of shares by the Company but exclude the cost of shares
purchased for cancellation or treasury by the Company.
The accompanying notes are an integral part of the financial statements.
STATEMENT OF CASH FLOWS
Year ended Year ended
31 December 2025 31 December 2024
Notes £'000 £'000
Cash flows from operating activities
Dividend income received 25,042 22,084
Investment management fee paid (2,308) (3,090)
Other cash expenses (1,990) (1,827)
Net cash generated from operating activities before interest paid and tax 20,744 17,167
Interest paid (2,638) (1,529)
Overseas taxation paid (1,755) (655)
Net cash inflows from operating activities 16,351 14,983
Cash flows from investing activities
Purchases of investments (667,261) (204,628)
Sales of investments 694,902 253,457
Indian capital gains tax on sales 23 -
Net cash inflow from investing activities 27,664 48,829
Cash flows from financing activities
Purchase of own shares for treasury 15 (17,712) (35,973)
Dividends paid 9 (27,183) (19,212)
Costs associated with loan (60) (65)
Net cash outflow from financing activities (44,955) (55,250)
Net (decrease)/increase in cash and cash equivalents (940) 8,562
Cash and cash equivalents at the start of the year 9,349 1,560
Effect of foreign exchange on cash and cash equivalents 122 (773)
Cash and cash equivalents at the end of the year 2(f) 8,531 9,349
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
1. Principal activity
The Company is a closed-end investment company incorporated in Jersey, with
its Ordinary shares being listed on the London Stock Exchange. The Company's
principal activity is investing in securities in the Asia Pacific region.
2. Material cccounting policies
(a) Basis of preparation. The financial statements have been prepared in
accordance with IFRS Accounting Standards as issued by the International
Accounting Standards Board ("IFRS Accounting Standards") and IFRIC
Interpretations issued by the IFRS Interpretations Committee. The financial
statements give a true and fair view and comply with the Companies (Jersey)
Law, 1991.
The financial statements have also been prepared in accordance with the
Statement of Recommended Practice (SORP), 'Financial Statements of Investment
Trust Companies and Venture Capital Trusts' issued in July 2022 to the extent
they are consistent with IFRS.
The Company had net current liabilities at the year end. The Directors have
undertaken a robust review of the Company's viability and ability to continue
as a going concern. The Company's assets consist primarily of a diverse
portfolio of listed equity shares which in most circumstances are realisable
within a very short timescale. The Directors have reviewed forecasts detailing
revenue and liabilities, have set limits for borrowing and reviewed compliance
with banking covenants, including the headroom available. Having taken these
factors into account, the Directors believe that the Company has adequate
financial resources to continue its operational existence for the foreseeable
future and at least 12 months from the date of this Annual Report.
Accordingly, the Directors continue to adopt the going concern basis in
preparing these financial statements.
Significant accounting judgements and estimates. The preparation of financial
statements in conformity with IFRS Accounting Standards requires the use of
certain significant accounting judgements and estimates which requires
management to exercise its judgement in the process of applying the accounting
policies and are continually evaluated. Significant judgement is required to
determine the fair value hierarchy classification of Thai securities held on
foreign markets whose pricing is based on the local market and have been
assessed as Level 1 as the local securities are considered to be identical
assets in line with IFRS 13 guidance.
Furthermore, the Board of Directors has a policy to write down the value of
investments in the financial statements where there are concerns over
liquidity, credit worthiness, exit opportunities and the timing of any
potential receipts. The Directors believe there are no significant estimates
contained within the financial statements as all investments are valued at
quoted bid price and all other assets and liabilities are valued at amortised
cost.
The financial statements are prepared on a historical cost basis, except for
investments that have been measured at fair value through profit or loss
("FVTPL").
The accounting policies which follow set out those policies which apply in
preparing the financial statements for the year ended 31 December 2025.
The financial statements are presented in sterling and all values are rounded
to the nearest thousand (£'000) except when otherwise indicated.
New and amended accounting standards and interpretations. There were no new
and amended accounting standards and interpretations applied to the financial
statements of the Company during the year.
At the date of authorisation of these financial statements, the following
amendments to Standards and Interpretations were assessed to be relevant and
are all effective for annual periods beginning on or after 1 January 2025:
Standards Issued and effective
IAS 21 Amendments - Lack of Exchangeability (effective 1 January 2025)
Future amendments to accounting standards and interpretations
Standards Issued but not yet effective
Annual Improvements 2023-24 - Minor amendments to IFRS 1, 7, 9, 10, and IAS
7 (effective 1 January 2026)
IFRS 7 and 9 Amendments - Classification and Measurement of Financial
Instruments (effective 1 January 2026)
IFRS 7 and 9 Amendments - Contracts Referencing Nature-dependent Electricity
(effective 1 January 2026)
IFRS 18 - Presentation and Disclosure in Financial Statements (effective 1
January 2027)
IAS 21 Amendments - Translation to a Hyperinflationary Presentation Currency
(effective 1 January 2027)
AIC SORP - 2025 Revision (effective 1 January 2026)
The Company intends to adopt the Standards and Interpretations in the
reporting period when they become effective and the Board does not anticipate
that the adoption of these Standards and Interpretations in future periods
will materially impact the Company's profit/(loss) in the period of initial
application although there may be revised presentations to the Financial
Statements and additional disclosures resulting from application of IFRS 18
when it becomes effective.
(b) Income. Dividend income receivable on equity shares is recognised on the
ex-dividend date. Dividend income on equity shares where no ex-dividend date
is quoted is brought into account when the Company's right to receive payment
is established. Where the Company has elected to receive dividends in the form
of additional shares rather than in cash, the amount of the cash dividend
foregone is recognised as income. Special dividends are an area of accounting
judgement and are credited to capital or revenue according to their
circumstances. Dividend income is presented gross of any non-recoverable
withholding taxes, which are disclosed separately in the Statement of
Comprehensive Income.
Interest is recognised on a time-proportionate basis using the effective
interest method. Interest income includes interest from cash and cash
equivalents.
(c) Expenses. All expenses, with the exception of interest expenses, which are
recognised using the effective interest method, are accounted for on an
accruals basis. Expenses are charged through the revenue column of the
Statement of Comprehensive Income except as follows:
- expenses which are incidental to the acquisition or disposal of an
investment are treated as capital and separately identified and disclosed in
note 11;
- expenses (including share issue costs) are treated as capital where a
connection with the maintenance or enhancement of the value of the investments
can be demonstrated; and
- the Company charges 60% of investment management fees and finance costs to
capital, in accordance with the Board's expected long term return in the form
of capital gains and income respectively from the investment portfolio of the
Company.
(d) Taxation. With effect from 1 January 2022 the Company migrated tax residency
to the UK from Jersey and elected to join the UK's investment trust regime.
The tax expense for year ended 31 December 2025 represents the sum of tax
currently payable and deferred tax. Any tax payable is based on the taxable
profit for the year. Taxable profit differs from net profit as reported in the
Statement of Comprehensive Income because it excludes items of income or
expense that are taxable or deductible in other years and it further excludes
items that are never taxable or deductible. The Company's liability for
current tax is calculated using tax rates that were applicable at the
Statement of Financial Position date.
Deferred tax is recognised in respect of all temporary differences at the
Statement of Financial Position date, where transactions or events that result
in an obligation to pay more tax in the future or right to pay less tax in the
future have occurred at the Statement of Financial Position date. This is
subject to deferred tax assets only being recognised if it is considered more
likely than not that there will be suitable profits from which the future
reversal of the temporary differences can be deducted. Deferred tax assets and
liabilities are measured at the rates applicable to the legal jurisdictions in
which they arise, using tax rates that are expected to apply at the date the
deferred tax position is unwound. Deferred tax is charged or credited in the
Statement of Comprehensive Income, except when it relates to items charged or
credited directly to equity, in which case the deferred tax is also dealt with
in equity.
In some jurisdictions, investment income and capital gains are subject to
withholding tax deducted at the source of the income. The Company presents the
withholding tax separately from the gross investment income in the Statement
of Comprehensive Income.
Owing to the Company's status as an investment trust company, and the
intention to continue meeting the conditions required to obtain approval in
the foreseeable future, the Company has not provided deferred tax on any
capital gains and losses arising on the revaluation or disposal of
investments.
(e) Investments. The Company has adopted the classification and measurement
provisions of IFRS 9 'Financial Instruments'.
The Company classifies its investments based on their contractual cash flow
characteristics and the Company's business model for managing the assets. The
business model, which is the determining feature for financial assets, is such
that the portfolio of investments is managed, and performance is evaluated, on
a fair value basis. The Investment Manager is also compensated based on the
fair value of the Company's assets. Consequently, all investments are measured
at FVTPL.
Regular way purchases and sales of investments are recognised on a trade date
basis. On derecognition of investments, the difference between the carrying
amount and the consideration received is recognised in profit or loss.
The fair value of the financial assets is based on their quoted bid price at
the reporting date, without deduction for any estimated future selling costs.
Changes in the value of investments held at fair value through profit or loss
and gains and losses on disposal are recognised in the Statement of
Comprehensive Income as "Gains on investments held at fair value through
profit or loss" on an average cost basis. Also included within this caption
are transaction costs in relation to the purchase or sale of investments.
(f) Cash and cash equivalents. Cash comprises cash held at banks. Cash equivalents
are short-term highly liquid investments that are readily convertible to known
amounts of cash and that are subject to an insignificant risk of changes in
values.
For the purposes of the Cash Flow Statement, cash and cash equivalents
comprise cash at bank net of any outstanding bank overdrafts.
(g) Other receivables. Other receivables are held to collect contractual cash
flows and give rise to cash flows representing solely payments of principal
and interest. As such they are measured at amortised cost. Other receivables
do not carry any interest, therefore they have not been assessed for any
expected credit losses over their lifetime due to their short-term nature.
(h) Other payables. Other payables are non interest bearing and are stated at
amortised cost.
(i) Dividends paid. Interim dividends to Shareholders are recognised in the
financial statements in the period in which they are declared and paid.
(j) Nature and purpose of reserves
Capital redemption reserve. The capital redemption reserve arose when Ordinary
shares were redeemed, at which point an amount equal to £1 per share of the
Ordinary share capital was transferred from the Statement of Comprehensive
Income to the capital redemption reserve. Following a law amendment in 2008,
the Company is no longer required to make a transfer. Although the transfer
from the Statement of Comprehensive Income is no longer required, the amount
remaining in the capital redemption reserve is not distributable in accordance
with the undertaking provided by the Board in the launch Prospectus.
Capital reserve. This reserve reflects any gains or losses on investments
realised in the period along with any increases and decreases in the fair
value of investments held that have been recognised in the Statement of
Comprehensive Income. This reserve also reflects any gains realised when
Ordinary shares are issued at a premium to £1 per share and any losses
suffered on the redemption of Ordinary shares for cancellation at a value
higher than £1 per share.
When the Company purchases its Ordinary shares to be held in treasury, the
amount of the consideration paid, which includes directly attributable costs,
is recognised as a deduction from the capital reserve. Should these shares be
sold subsequently, the amount received is recognised in the capital reserve
and the resulting surplus or deficit on the transaction remains in the capital
reserve. The capital reserve is also available to fund dividend payments to
shareholders.
Revenue reserve. This reserve reflects all income and costs which are
recognised in the revenue column of the Statement of Comprehensive Income and
is utilised to fund dividend payments to shareholders.
(k) Foreign currency. Monetary assets and liabilities denominated in foreign
currencies are converted into sterling at the rate of exchange ruling at the
reporting date. The financial statements are presented in sterling, which is
the Company's functional and presentation currency. The Company's performance
is evaluated and its liquidity is managed in sterling. Therefore sterling is
considered as the currency that most faithfully represents the economic
effects of the underlying transactions, events and conditions. Transactions
during the year involving foreign currencies are converted at the rate of
exchange ruling at the transaction date. Gains or losses arising from a change
in exchange rates subsequent to the date of a transaction are included as a
currency gain or loss in revenue or capital in the Statement of Comprehensive
Income, depending on whether the gain or loss is of a revenue or capital
nature.
Non-monetary assets and liabilities that are measure at fair value in a
foreign currency are translated into the functional currency at the exchange
rate when the fair value is determined. The foreign currency differences on
the equity investments are recognised in the Gains on investments held at fair
value through profit or loss.
(l) Bank loans. The Company has adopted the classification and measurement
provisions of IFRS 9 'Financial Instruments'. Bank loans are measured at
amortised cost using the effective interest rate method.
Bank loans are stated at the amount of the net proceeds immediately after draw
down plus cumulative finance costs less cumulative payments. The finance cost
of bank loans is allocated to years over the term of the debt at a constant
rate on the carrying amount and charged 40% to revenue and 60% to capital to
reflect the Company's investment policy and prospective revenue and capital
growth.
(m) Share capital. The Company's Ordinary shares are classified as equity as the
Company has full discretion on repurchasing the Ordinary shares and on
dividend distributions.
Issuance, acquisition and resale of Ordinary shares are accounted for as
equity transactions. Upon issuance of Ordinary shares, the consideration
received is included in equity.
Transaction costs incurred by the Company in acquiring or selling its own
equity instruments are accounted for as a deduction from equity to the extent
that they are incremental costs directly attributable to the equity
transaction that otherwise would have been avoided.
Own equity instruments which are acquired (treasury shares) are deducted from
equity and accounted for at amounts equal to the consideration paid, including
any directly attributable incremental costs.
No gain or loss is recognised in the Statement of Comprehensive Income on the
purchase, sale, issuance or cancellation of the Company's own instruments.
3. Segmental information
The Company is organised into one main operating segment, which invests 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 upon analysis of the Company as one segment. The financial
results from this segment are equivalent to the financial statements of the
Company as a whole.
The following table analyses the Company's operating income by each
geographical location. The basis for attributing the operating income is the
place of incorporation of the instrument's counterparty.
Year ended Year ended
31 December 2025 31 December 2024
£'000 £'000
Asia Pacific region 24,911 21,395
United Kingdom 1,078 891
25,989 22,286
4. Investment income
Year ended Year ended
31 December 2025 31 December 2024
£'000 £'000
Income from investments
Overseas dividend income 24,908 21,184
UK dividend income 814 734
25,722 21,918
Other income
Bond interest - 168
Deposit interest 264 157
Stock lending income 3 43
267 368
Total revenue 25,989 22,286
5. Investment management fee
Year ended Year ended
31 December 2025 31 December 2024
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Investment management fee 1,015 1,324 2,339 1,053 1,315 2,368
The fee structure is determined by the lower of the Company's market
capitalisation or net asset value. The fee is calculated monthly at a rate of
0.75% per annum on market capitalisation (or net assets, whichever is lower)
up to £300 million, and 0.60% for amounts exceeding this threshold. From this
fee, an annual amount of £130,000 (2024: £130,000) is rebated to the Company
by abrdn Asia for the provision of marketing services. An additional amount of
£133,000 (2024: £129,000) is rebated to the Company by abrdn Asia for the
provision of secretarial services provided by JTC, although JTC's fee is
included as part of the management fee cost. The balance due to abrdn Asia at
the year end was £402,000 (2024 - £372,000).
6. Other operating expenses
Year ended Year ended
31 December 2025 31 December 2024
£'000 £'000
Directors' fees 215 215
Promotional activities A 324 286
Auditor's remuneration:
- statutory audit 65 60
Custody fees 147 163
Printing & postage 19 23
Professional fees 85 132
Registrars fees 102 60
Other 167 110
1,124 1,049
A Promotional activities are provided by abrdn Investments Limited. The total
fees paid are based on an annual rate for Marketing of £194,000 (2024 -
£193,000) and an annual Marketing and PR fee of £130,000 (2024 - £130,000).
An amount of £102,000 (2024 - £38,000) was payable to abrdn Investments
Limited at the year end.
No fees have been paid to the Company's Auditor during the period other than
those listed here.
7. Finance costs
Year ended Year ended
31 December 2025 31 December 2024
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
Interest on bank loans 665 998 1,663 779 1,168 1,947
Amortisation of loan arrangement expenses - - - 1 2 3
665 998 1,663 780 1,170 1,950
Finance costs are charged 40% to revenue and 60% to capital as disclosed in
the accounting policies.
8. Taxation
a) Analysis of tax charge in the year 2025 2024
Revenue Capital Total Revenue Capital Total
£000 £000 £000 £000 £000 £000
Indian capital gains tax - 1,177 1,177 - 876 876
Overseas withholding tax 1,804 - 1,804 1,338 - 1,338
Total current tax charge for the year (note b) 1,804 1,177 2,981 1,338 876 2,214
Movement of deferred tax liability on Indian CGT - (1,729) (1,729) - 92 92
Total deferred tax charge for the year (note c) - (1,729) (1,729) - 92 92
Total tax charge for the year 1,804 (552) 1,252 1,338 968 2,306
b) The UK corporation tax rate is 25% (2024 - 25%). The tax charge for the year
differs from the corporation tax rate.
2025 2024
Revenue Capital Total Revenue Capital Total
£000 £000 £000 £000 £000 £000
Net profit before taxation 23,185 52,031 75,216 19,404 17,114 36,518
Corporation tax @ 25.0% (2024 - 25.0%) 5,796 13,008 18,804 4,851 4,279 9,130
Effects of:
UK dividends (204) - (204) (184) - (184)
Non-taxable overseas dividends (5,666) - (5,666) (4,628) - (4,628)
Currency gains/(losses) - (31) (31) - 193 193
Realised/unrealised gains/(losses) on investments - (13,557) (13,557) - (5,093) (5,093)
Expenses not deductible for tax purposes 5 - 5 - - -
Excess management expenses 103 580 683 5 621 626
Tax effect of expensed double taxation relief (34) - (34) (44) - (44)
Irrecoverable overseas withholding tax 1,804 - 1,804 1,338 - 1,338
Indian capital gains tax - 1,177 1,177 - 876 876
Movement of deferred tax liability on Indian CGT - (1,729) (1,729) - 92 92
Total current tax charge for the year (note a) 1,804 (552) 1,252 1,338 968 2,306
c) Factors that may affect future tax charges
At the year end, after offset against income taxable on receipt, there is a
potential deferred tax asset of £2,586,000 (2024 - £1,903,000) in relation
to surplus management expenses. It is unlikely that the fund will generate
sufficient taxable profits in the future to utilise these amounts and
therefore no deferred tax asset has been recognised.
9. Dividends on Ordinary shares
Year ended Year ended
31 December 2025 31 December 2024
£'000 £'000
Amounts recognised as distributions to equity holders in the year:
Fourth interim dividend 2024 - 6.78p per Ordinary share (2023 - 4.25p) 10,148 7,100
First interim dividend 2025 - 3.65p per Ordinary share (2024 - 2.55p) 5,314 4,155
Second interim dividend 2025 - 3.84p per Ordinary share (2024 - 2.55p) 5,549 4,043
Third interim dividend 2025 - 4.29p per Ordinary share (2024 - 2.55p) 6,172 3,914
27,183 19,212
In order for the Company to satisfy s.1158 of the Corporation Tax Act 2010,
the Company must meet the eligibility and approval conditions applicable to
investment trusts, which include compliance with HMRC's income retention
requirements.
Under regulation 19 of The Investment Trust (Approved Company) (Tax)
Regulations 2011, the maximum permitted retention is the greater of:
- 15% of the Company's income, calculated under regulation 20; and
- Any amount the Company is required to retain due to restrictions imposed
by law.
The revenue available for distribution by way of dividend for the year is
£21,381,000 (2024 - £18,066,000). Set out below is the total dividends
payable in respect of the financial year.
Accordingly, the Company confirms that its income retention practices for the
period are fully compliant with Section 1158 CTA 2010 and the associated HMRC
regulations applicable to investment trusts
2025 2024
£'000 £'000
First interim dividend 2025 - 3.65p per Ordinary share (2024 - 2.55p) 5,314 4,155
Second interim dividend 2025 - 3.84p per Ordinary share (2024 - 2.55p) 5,549 4,043
Third interim dividend 2025 - 4.29p per Ordinary share (2024 - 2.55p) 6,172 3,914
Fourth interim dividend 2025 - 4.46p per Ordinary share (2024 - 6.78p) 6,356 10,148
23,391 22,260
The fourth interim dividend for 2025, amounting to £6,356,000 (2024 - fourth
interim dividend of £10,148,000), is not recognised as a liability in these
financial statements as it was announced and paid after 31 December 2025.
10. Earnings per share
Ordinary shares. The earnings per Ordinary share is based on the profit after
taxation of £73,964,000 (2024 - £34,212,000) and on 145,160,512 (2024 -
159,233,450) Ordinary shares, being the weighted average number of Ordinary
shares in issue during the year excluding Ordinary shares held in treasury,
which do not carry the rights to vote or to dividends.
The earnings per Ordinary share detailed above can be further analysed between
revenue and capital as follows:
Year ended Year ended
31 December 2025 31 December 2024
Revenue Capital Total Revenue Capital Total
Net profit (£'000) 21,381 52,583 73,964 18,066 16,146 34,212
Weighted average number of Ordinary shares in issue{A} 145,160,512 159,233,450
Earnings per Ordinary share (pence) 14.73 36.22 50.95 11.35 10.14 21.49
{A} Calculated excluding Ordinary shares held in treasury.
11. Investments held at fair value through profit or loss
Year ended Year ended
31 December 2025 31 December 2024
£'000 £'000
Opening book cost 316,394 339,747
Opening investment holding gains 89,647 89,889
Opening fair value 406,041 429,636
Analysis of transactions made during the year
Purchases at cost 670,435 208,734
Sales proceeds received (706,040) (252,701)
Realised gains on investments 85,467 40,418
Realised losses on investments (28,600) (19,804)
Decrease in unrealised gains on investments (22,218) (5,077)
Decrease in unrealised losses on investments 19,582 4,835
Closing fair value 424,667 406,041
£'000 £'000
Closing book cost 337,656 316,394
Closing investment gains 87,011 89,647
Closing fair value 424,667 406,041
The Company generated £706,040,000 (2024 - £252,701,000) from investments
sold in the year. The book cost of these investments when they were purchased
was £622,638,000 (2024 - £232,087,000). These investments have been revalued
over time and until they were sold any unrealised gains/(losses) were included
in the fair value of the investments.
Year ended Year ended
31 December 2025 31 December 2024
The portfolio valuation £'000 £'000
Listed on recognised stock exchanges:
Equities - overseas 424,667 406,041
Total 424,667 406,041
Transaction costs. During the year expenses were incurred in acquiring or
disposing of investments held at fair value through profit or loss. These have
been expensed through capital and are included within gains/(losses) on
financial investments held at fair value through profit or loss in the
Statement of Comprehensive Income. The total costs were as follows:
Year ended Year ended
31 December 2025 31 December 2024
£'000 £'000
Purchases 533 166
Sales 677 301
1,210 467
The above transaction costs are calculated in line with the AIC SORP. The
transaction costs in the Company's Key Information Document are calculated on
a different basis and in line with the PRIIPs regulations.
12. Other receivables
2025 2024
£'000 £'000
Amounts due from brokers 11,138 -
Prepayments and accrued income 2,074 1,421
13,212 1,421
None of the above assets are past their due date or impaired.
13. Current and non-current liabilities
(a) Bank loans. At the year end, the Company had the following unsecured bank
loans:
2025 2024
Local Local
Interest currency Carrying Interest currency Carrying
rate principal amount rate principal amount
% amount £'000 % amount £'000
Unsecured bank loans repayable
Hong Kong Dollar 4.150 73,500,000 7,020 5.359 73,500,000 7,555
United States Dollar 4.960 8,850,000 6,580 5.580 8,850,000 7,067
Sterling 4.920 17,800,000 17,800 5.700 17,800,000 17,800
Total 31,400 32,422
At the year end approximately £17.8 million, USD 8.85 million and HKD 73.5
million, equivalent to £31.4 million was drawn down from the £50 million
multi-currency revolving facility with Bank of Nova Scotia, London Branch. The
interest rates attributed to the GBP, USD and HKD loans at the period end were
4.92%, 4.96% and 4.15% respectively.
On 27 February 2025, the Company renewed its secured, one year £50 million
multi-currency revolving credit facility with Bank of Nova Scotia, London
Branch. Under the terms of the revolving credit facility, the Company has the
option to increase the level of the commitment from £50 million to £70
million at any time, subject to the Lender's credit approval
At the date of signing this report, loans of HKD 73,500,000, US$ 8,850,000 and
£17,800,000 were drawn down at variable interest rates of 3.51%, 4.62% and
4.68% respectively.
2025 2024
(b) Other payables £'000 £'000
Investment management fees 402 371
Amounts due to brokers 7,301 4,217
Other amounts due 343 200
8,046 4,788
Amounts falling due in more than one year:
2025 2024
£'000 £'000
(c) Deferred tax liability on Indian capital gains - 1,706
14. Analysis of changes in financing during the year
2025 2024
£'000 £'000
Opening balance at 1 January 32,422 32,123
Amortisation of loan arrangement expenses - 3
Foreign exchange movements (1,022) 296
Closing balance at 31 December 31,400 32,422
15. Stated capital
Ordinary Treasury Total
shares shares shares
(number) (number) (number) £'000
Authorised Ordinary shares of no par value Unlimited Unlimited Unlimited Unlimited
Issued and fully paid Ordinary shares of no par value
At 31 December 2024 150,306,492 44,626,897 194,933,389 194,933
Shares purchased for treasury (7,790,630) 7,790,630 - -
At 31 December 2025 142,515,862 52,417,527 194,933,389 194,933
During the year 7,790,630 (2024 - 16,872,215) Ordinary shares were bought back
by the Company for holding in treasury at a total cost of £17,712,000 (2024 -
£35,973,000). At the year end 52,417,527 (2024 - 44,626,897) Ordinary shares
were held in treasury, which represents 26.89% (2024 - 22.89%) of the
Company's total issued share capital at 31 December 2025. Since the year end,
no further Ordinary shares have been bought back.
For each Ordinary share issued £1 is allocated to stated capital, with the
balance taken to the capital reserve.
The Ordinary shares give shareholders the entitlement to all of the capital
growth in the Company's assets and to all the income from the Company that is
resolved to be distributed.
Voting and other rights. In accordance with the Articles of Association of the
Company, on a show of hands, every member (or duly appointed proxy) present at
a general meeting of the Company has one vote; and, on a poll, every member
present in person or by proxy shall have one vote for each Ordinary share
held, excluding shares held in treasury.
The Ordinary shares carry the right to receive all dividends declared by the
Company or the Directors, excluding shares held in treasury.
On a winding-up, provided the Company has satisfied all of its liabilities,
holders of Ordinary shares are entitled to all of the surplus assets of the
Company, excluding shares held in treasury.
16. Capital reserve
2025 2024
£'000 £'000
At 1 January 167,722 187,549
Net currency gains/(losses){A} 122 (773)
Movement in unrealised fair value (2,636) (242)
Profit on realisation of investments 56,867 20,614
Costs charged to capital (1,770) (3,453)
Buyback of Ordinary shares for treasury (17,712) (35,973)
At 31 December 202,593 167,722
{A}Gains/(losses) arising during the year have principally arisen from a
revaluation of the foreign currency bank loans offset by a revaluation of
foreign currency cash held.
17. Net asset value per share
Ordinary shares. The net asset value per Ordinary share and the net asset
values attributable to Ordinary shareholders at the year end calculated in
accordance with the Articles of Association were as follows:
Net asset value Net asset values Net asset value Net asset values
per share attributable per share attributable
2025 2025 2024 2024
p £'000 p £'000
Ordinary shares 285.56 406,964 251.42 377,895
The net asset value per Ordinary share is based on 142,515,862 (2024 -
150,306,492) Ordinary shares, being the number of Ordinary shares in issue at
the year end excluding Ordinary shares held in treasury.
18. Financial instruments
The Company's investment activities expose it to various types of financial
risk associated with the financial instruments and markets in which it
invests. The Company's financial instruments comprise securities and other
investments, cash balances, bank loans and debtors and creditors that arise
directly from its operations; for example, in respect of sales and purchases
awaiting settlement, and debtors for accrued income.
The Board has delegated the risk management function to abrdn Asia under the
terms of its management agreement with abrdn Asia (further details of which
are included under note 5). The Board regularly reviews and agrees policies
for managing each of the key financial risks identified with the Investment
Manager. The types of risk and the Manager's approach to the management of
each type of risk, are summarised below. Such approach has been applied
throughout the year and has not changed since the previous accounting period.
Risk management framework. The directors of abrdn Asia collectively assume
responsibility for the Manager's obligations under the AIFMD including
reviewing investment performance and monitoring the Company's risk profile
during the year.
abrdn Asia is a fully integrated member of the Aberdeen Group plc (the
"Group"), which provides a variety of services and support in the conduct of
its business activities, including in the oversight of the risk management
framework for the Company. abrdn Asia is responsible for the day to day
administration of the investment policy and ensuring that the Company is
managed within the terms of its investment guidelines and the limits set out
in its pre-investment disclosures to investors (details of which can be found
on the Company's website).
The Investment Manager conducts its risk oversight function through the
operation of the Group's risk management processes and systems which are
embedded within the Group's operations. The Group's Risk Division supports
management in the identification and mitigation of risks and provides
independent monitoring of the business. The Division includes Compliance,
Business Risk, Market Risk, Risk Management and Legal. The team is headed up
by the Group's Head of Risk, who reports to the Chief Executive Officer of the
Group. The Risk Division achieves its objective through embedding the Risk
Management Framework throughout the organisation using the Group's operational
risk management system ("Shield").
The Group's Internal Audit Department is independent of the Risk Division and
reports directly to the Group Chief Executive Officer and to the Audit
Committee of the Group's Board of Directors. The Internal Audit Department is
responsible for providing an independent assessment of the Group's control
environment.
The Group's corporate governance structure is supported by several committees
to assist the board of directors of Aberdeen Group plc, its subsidiaries and
the Company to fulfil their roles and responsibilities. The Group's Risk
Division is represented on all committees, with the exception of those
committees that deal with investment recommendations. The specific goals and
guidelines on the functioning of those committees are described on the
committees' terms of reference.
Risk management. The main risks arising from the Company's financial
instruments are (i) market risk (comprising interest rate risk, currency risk
and equity price risk), (ii) liquidity risk, (iii) credit risk and (iv)
gearing risk.
The Board regularly reviews and agrees policies for managing each of these
risks. The Manager's policies for managing each of these risks are summarised
below and have been applied throughout the year.
(i) Market risk. The fair value or future cash flows of a financial instrument
held by the Company may fluctuate because of changes in market prices. This
market risk comprises three elements - interest rate risk, currency risk and
equity price risk.
Interest rate risk. Interest rate risk is the risk that interest rate
movements may affect:
- the fair value of the investments in fixed interest rate securities;
- the level of income receivable on cash deposits;
- the interest payable on the Company's variable rate borrowings.
Management of the risk
Financial assets. Although the majority of the Company's financial assets
comprise equity shares which neither pay interest nor have a stated maturity
date, at the year end the Company had no (2024 - one) holdings in fixed rate
overseas corporate bonds, with G3 Exploration not held at year end (2024 -
£nil). Bond prices are determined by market perception as to the appropriate
level of yields given the economic background. Key determinants include
economic growth prospects, inflation, the Government's fiscal position,
short-term interest rates and international market comparisons. The Investment
Manager takes all these factors into account when making any investment
decisions as well as considering the financial standing of the potential
investee entity. G3 Exploration appointed joint liquidators during December
2019. Using an adjusted net asset value model the Board of Directors decided
to write down the value of G3 Exploration to £nil due to concerns over
liquidity, credit worthiness, exit opportunities and the timing of any
potential receipts. This holding was liquidated on 12 June 2025.
Financial liabilities. The Company primarily finances its operations through
use of equity, retained profits and bank borrowings. Details of the terms and
conditions of the bank borrowings are disclosed in note 13. Interest is due
on the Bank of Nova Scotia, London multi currency revolving loan facility on
the maturity date, with the next interest payment being due on 5th January
2026 for GBP loan and USD loans and 26th February 2026 for HKD loan.
The Board actively monitors its bank borrowings. A decision on whether to roll
over its existing borrowings is made prior to their maturity dates, taking
into account the Company's ability to draw down fixed, long-term borrowings.
The Company does not employ any hedging against floating rate borrowings.
The interest rate profile of the Company (excluding short term debtors and
creditors as these are non-interest bearing instruments but including short
term borrowings) was as follows:
Weighted average
period for which Weighted average Floating Fixed
rate is fixed interest rate rate rate
At 31 December 2025 Years % £'000 £'000
Assets
Cash at bank - Sterling - - 8,340 -
Cash at bank - Hong Kong Dollar - - 202 -
Cash at bank - Korean Won - - 3 -
Cash at bank - US Dollar - - (14) -
8,531 -
Weighted average
period for which Weighted average Floating Fixed
rate is fixed interest rate rate rate
At 31 December 2025 Years % £'000 £'000
Liabilities
Bank loan - Hong Kong Dollar 0.09 4.15 - (7,020)
Bank loan - US Dollar 0.08 4.96 - (6,580)
Bank loan - Sterling 0.08 4.92 - (17,800)
- (31,400)
Weighted average
period for which Weighted average Floating Fixed
rate is fixed interest rate rate rate
At 31 December 2024 Years % £'000 £'000
Assets
Cash at bank - Sterling - - 8,674 -
Cash at bank - Chinese Renminbi - - 3 -
Cash at bank - Taiwanese Dollar - - 670 -
Cash at bank - US Dollar - - 2 -
9,349 -
Weighted average
period for which Weighted average Floating Fixed
rate is fixed interest rate rate rate
At 31 December 2024 Years % £'000 £'000
Liabilities
Bank loan - Hong Kong Dollar 0.07 5.36 - (7,555)
Bank loan - US Dollar 0.07 5.58 - (7,067)
Bank loan - Sterling 0.07 5.70 - (17,800)
- (32,422)
The weighted average interest rate is based on the current yield of each
asset, weighted by its market value. The weighted average interest rate on
bank loans is based on the interest rate payable, weighted by the total value
of the loans.
The floating rate assets consist of cash deposits on call earning interest at
prevailing market rates.
All financial liabilities are measured at amortised cost using the effective
interest rate method.
Interest rate sensitivity. The sensitivity analysis demonstrates the
sensitivity of the Company's profit for the year to a reasonably possible
change in interest rates, with all other variables held constant.
The sensitivity of the profit/(loss) for the year is the effect of the assumed
change in interest rates on:
- the net interest income for one year, based on the floating rate
financial assets held at the Statement of Financial Position date; and
- changes in fair value of investments for the year, based on revaluing
fixed rate financial assets at the Statement of Financial Position date.
The Directors have considered the potential impact of a 100 basis point
movement in interest rates and concluded that it would not be material in the
current year (2024 - not material). This consideration is based on the
Company's exposure to interest rates on its floating rate cash balances, fixed
interest securities and bank loans.
Foreign currency risk. A significant proportion of the Company's investment
portfolio is invested in overseas securities and the Statement of Financial
Position can be significantly affected by movements in foreign exchange rates.
It is not the Company's policy to hedge this risk on a continuing basis. A
significant proportion of the Company's borrowings, as detailed in note 13, is
in foreign currency as at 31 December 2025.
Management of the risk. The revenue account is subject to currency fluctuation
arising on overseas income. The Company does not hedge this currency risk on a
continuing basis but the Company may, from time to time, match specific
overseas investment with foreign currency borrowings.
The fair values of the Company's monetary items that have foreign currency
exposure at 31 December are shown below. Where the Company's equity
investments (which are non-monetary items) are priced in a foreign currency,
they have been included within the equity price risk sensitivity analysis so
as to show the overall level of exposure.
31 December 2025 31 December 2024
Net Net
monetary Total monetary Total
Equity assets currency Equity assets currency
investments /(liabilities) exposure investments /(liabilities) exposure
£'000 £'000 £'000 £'000 £'000 £'000
Australian Dollar 49,472 - 49,472 68,047 - 68,047
Chinese Renminbi 19,933 - 19,933 14,931 3 14,934
Hong Kong Dollar 113,081 (6,818) 106,263 63,072 (7,555) 55,517
Indian Rupee 23,213 - 23,213 27,219 - 27,219
Indonesian Rupiah 14,606 - 14,606 9,914 - 9,914
Japanese Yen - - - 4,013 - 4,013
New Zealand Dollar - - - 4,241 - 4,241
Singapore Dollar 26,266 - 26,266 66,713 - 66,713
South Korean Won 54,243 3 54,246 14,226 - 14,226
Taiwanese Dollar 88,089 - 88,089 108,248 670 108,918
Thailand Baht 17,263 - 17,263 14,774 - 14,774
US Dollar 12,655 (6,594) 6,061 3,393 (7,065) (3,672)
Total 418,821 (13,409) 405,412 398,791 (13,947) 384,844
Foreign currency sensitivity. The following table details the impact on the
Company's net assets to a 10% decrease (in the context of a 10% increase the
figures below should all be read as negative) in sterling against the foreign
currencies in which the Company has exposure. The sensitivity analysis
includes foreign currency denominated monetary items and adjusts their
translation at the period end for a 10% change in foreign currency rates.
2025 2024
£'000 £'000
Australian Dollar 4,947 6,805
Chinese Renminbi 1,993 1,493
Hong Kong Dollar 10,626 5,552
Indian Rupee 2,321 2,722
Indonesian Rupiah 1,461 991
Japanese Yen - 401
New Zealand Dollar - 424
Singapore Dollar 2,627 6,671
Korean Won 5,425 1,423
Taiwanese Dollar 8,809 10,892
Thailand Baht 1,726 1,477
US Dollar 606 (367)
Total 40,541 38,484
Equity price risk. Equity price risk (i.e. changes in market prices other than
those arising from interest rate or currency risk) may affect the value of the
Company's quoted equity investments.
Management of the risk. It is the Board's policy to hold an appropriate spread
of investments in the portfolio in order to reduce the risk arising from
factors specific to a particular country or sector. The allocation of assets
to international markets and the stock selection process both act to reduce
market risk. The Investment Manager actively monitors market prices throughout
the year and reports to the Board, which meets regularly in order to review
investment strategy. The investments held by the Company are listed on
recognised stock exchanges.
Concentration of exposure to equity price risks. The majority of the
investments' value is in the Asia Pacific region. It should be recognised that
an investment's country of domicile or of listing does not necessarily equate
to its exposure to the economic conditions in that country.
Equity price risk sensitivity. The following table illustrates the sensitivity
of the profit after taxation for the year and the equity to an increase or
decrease of 10% (2024 - 10%) in the fair values of the Company's equities.
This level of change is considered to be reasonably possible based on
observation of current market conditions. The sensitivity analysis is based on
the Company's equities at each Statement of Financial Position date, with all
other variables held constant.
2025 2024
Increase in Decrease in Increase in Decrease in
fair value fair value fair value fair value
£'000 £'000 £'000 £'000
Statement of Comprehensive Income - profit after taxation
Capital return - increase /(decrease) 42,467 (42,467) 40,604 (40,604)
Total profit after taxation - increase /(decrease) 42,467 (42,467) 40,604 (40,604)
Equity
Capital reserve 42,467 (42,467) 40,604 (40,604)
(ii) Liquidity risk. This is the risk that the Company will encounter
difficulty in meeting obligations associated with financial liabilities, which
stood at £39,446,000 (2024 - £38,916,000).
Management of the risk. Liquidity risk is not considered to be significant as
the Company's assets comprise mainly cash and readily realisable securities,
which can be sold to meet funding commitments if necessary and these amounted
to £8,531,000 and £424,667,000 (2024 - £9,349,000 and £406,041,000) at the
year end respectively. Short-term flexibility is achieved through the use of
loan facilities.
Maturity profile. The following table sets out the undiscounted gross cash
flows, by maturity, of the Company's financial liabilities and cash at the
Statement of Financial Position date:
Within Between
1 year 1-5 years Total
At 31 December 2025 £'000 £'000 £'000
Bank loans 31,400 - 31,400
Interest on bank loans 183 - 183
Other payables 8,046 - 8,046
39,629 - 39,629
Cash 8,531 - 8,531
Within Between
1 year 1-5 years Total
At 31 December 2024 £'000 £'000 £'000
Bank loans 32,422 - 32,422
Interest on bank loans 164 - 164
Other payables 4,788 - 4,788
37,374 - 37,374
Cash 9,349 - 9,349
Details of the Company's borrowing arrangements are disclosed in note 13.
(iii) Credit risk. This is failure of the counterparty to a transaction to
discharge its obligations under that transaction that could result in the
Company suffering a loss.
The Company's financial assets subject to the expected credit loss model
within IFRS 9 are cash and cash equivalents and short-term other receivables.
At 31 December 2025, the total of short-term other receivables was
£13,212,000 (2024 - £1,421,000). No other assets are considered impaired and
no other amounts have been written off during the year.
All other receivables are expected to be received within twelve months or
less. An amount is considered to be in default if it has not been received on
the due date.
The Company uses the same approach for assessment of ECLs for cash and cash
equivalents to those used for other receivables. The impairment has been
measured on a twelve months expected loss basis and reflects the short
maturities of the exposures. The Company considers that its cash and cash
equivalents have low credit risk.
Management of the risk. Where the Investment Manager makes an investment in a
bond, corporate or otherwise, where available, the credit rating of the issuer
is taken into account so as to minimise the risk to the Company of default.
The Company has the following holdings:
- a Chinese overseas corporate bond issued by G3 Exploration with a book cost
of £4,611,000. G3 Exploration appointed joint liquidators during December
2019. Therefore the Board of Directors decided to write down the value of G3
Exploration to £nil due to the uncertainty over the repayment of the debt. No
interest for G3 Exploration was acrued since the joint liquidator was
appointed. This holding was liquidated on 12 June 2025.
Each of the above bonds are non-rated. The Investment Manager undertakes an
ongoing review of their suitability for inclusion within the portfolio.
Investment transactions are carried out with a large number of brokers, whose
credit rating is taken into account so as to minimise the risk to the Company
of default.
The risk of counterparty exposure due to failed trades causing a loss to the
Company is mitigated by the review of failed trade reports on a daily basis.
In addition, both stock and cash reconciliations to the Custodian's records
are performed on a daily basis to ensure discrepancies are investigated on a
timely basis. The Manager's Compliance department carries out periodic reviews
of the Custodian's operations and reports its finding to the Manager's Risk
Management Committee. It is the Manager's policy to trade only with A- and
above (Long Term rated) and A-1/P-1 (Short Term rated) counterparties.
Cash is held only with reputable banks with high quality external credit
ratings.
None of the Company's financial assets are secured by collateral or other
credit enhancements.
Credit risk exposure. In summary, compared to the amounts included in the
Statement of Financial Position, the maximum exposure to credit risk at 31
December was as follows:
2025 2024
Statement of Maximum Statement of Maximum
Financial Position exposure Financial Position exposure
£'000 £'000 £'000 £'000
Current assets
Cash at bank 8,531 8,531 9,349 9,349
Other receivables 13,176 13,176 1,421 1,421
21,707 21,707 10,770 10,770
(iv) Gearing risk. The Company's policy is to increase its exposure to equity
markets through the judicious use of borrowings. When borrowings are invested
in such markets, the effect is to magnify the impact on shareholders' funds of
changes, both positive and negative, in the value of the portfolio. As noted
in note 2(l) financial liabilities are classified under IFRS 9. The Company
has not designated any financial liabilities at FVPL. The loans are carried at
amortised cost, using the effective interest rate method in the financial
statements.
Management of the risk. The Board imposes borrowing limits to ensure gearing
levels are appropriate to market conditions and reviews these on a regular
basis. Borrowings comprise fixed rate, revolving, and uncommitted facilities.
The fixed rate facilities are used to finance opportunities at low rates and,
the revolving and uncommitted facilities to provide flexibility in the
short-term.
19. Capital management policies and procedures
The Company's capital management objectives are:
- to ensure that the Company will be able to continue as a going concern; and
- to maximise the income and capital return to its equity shareholders through
an appropriate balance of equity capital and debt. The policy is that debt
should not exceed 25% of net assets.
The Company's capital at 31 December comprises:
2025 2024
£'000 £'000
Debt
Borrowings under the multi-currency loan facility 31,400 32,422
31,400 32,422
2025 2024
Equity £'000 £'000
Equity share capital 194,933 194,933
Retained earnings and other reserves 212,031 182,962
406,964 377,895
Debt as a % of net assets A 7.72 8.58
A The calculation above differs from the AIC recommended methodology, where
debt levels are shown net of cash and cash equivalents held.
The Board, with the assistance of the Investment Manager monitors and reviews
the broad structure of the Company's capital on an ongoing basis. This review
includes:
- the planned level of gearing, which takes account of the Investment
Manager's views on the market;
- the need to buy back equity shares for cancellation or for holding in
treasury, which takes account of the difference between the net asset value
per Ordinary share and the Ordinary share price (i.e. the level of share price
discount);
- the need for new issues of equity shares; and
- the extent to which revenue in excess of that which is required to be
distributed should be retained.
The Company's objectives, policies and processes for managing capital are
unchanged from the preceding accounting period.
20. Related party transactions and transactions with the Investment Manager
Fees payable during the period to the Directors are disclosed in note 6 and
within the Directors' Remuneration Report (unaudited), along with their
interests in shares of the Company, totalling 71,972 (2024 - 87,128) ordinary
shares.
Investment management, promotional activities and administration services are
provided by the Aberdeen Group plc with details of transactions during the
year and balances outstanding at the year end disclosed in notes 5 and 6.
The Company also has an agreement with JTC Fund Solutions (Jersey) Limited for
the provision of company secretarial and administration services at a cost of
£133,000 (2024: £129,000) per annum, which Aberdeen Group plc has agreed to
rebate in full from the investment management fee which it receives.
21. Controlling party
In the opinion of the Directors on the basis of shareholdings advised to them,
the Company has no immediate or ultimate controlling party.
22. Fair value hierarchy
IFRS 13 'Fair Value Measurement' requires an entity to classify fair value
measurements using a fair value hierarchy that reflects the subjectivity of
the inputs used in making measurements. The fair value hierarchy has the
following levels:
Level 1: quoted (unadjusted) market prices in active markets for identical
assets or liabilities;
Level 2: valuation techniques for which the lowest level input that is
significant to the fair value measurement is directly or indirectly
observable; and
Level 3: valuation techniques for which the lowest level input that is
significant to the fair value measurement is unobservable.
The financial assets and liabilities measured at fair value in the Statement
of Financial Position are grouped into the fair value hierarchy at the
Statement of Financial Position date are as follows:
Level 1 Level 2 Level 3 Total
At 31 December 2025 Note £'000 £'000 £'000 £'000
Financial assets at fair value through profit or loss
Quoted equities a) 424,667 - - 424,667
424,667 - - 424,667
Level 1 Level 2 Level 3 Total
At 31 December 2024 Note £'000 £'000 £'000 £'000
Financial assets at fair value through profit or loss
Quoted equities a) 406,041 - - 406,041
Quoted bonds b) - - - -
406,041 - - 406,041
a) Quoted equities. The fair value of the Company's investments in quoted
equities has been determined by reference to their quoted bid prices at the
reporting date. Quoted equities included in Fair Value Level 1 are actively
traded on recognised stock exchanges.
b) Quoted bonds. The fair value of the Company's investments in quoted bonds
has been determined by reference to their quoted bid prices at the reporting
date. Investments in quoted bonds are not considered to trade in active
markets. There are no holdings in quoted bonds as at 31 December 2025.
In October 2019 the Board of Directors took the decision to write down the
value of G3 Exploration by 50% in light of interest payment default and
concerns over ongoing trading. At this point the G3 Exploration bond was
reclassified as Level 3. G3 Exploration appointed joint liquidators during
December 2019. Using an adjusted net asset value model the Board of Directors
decided to write down the value of G3 Exploration to £nil due to concerns
over liquidity, credit worthiness, exit opportunities and the timing of any
potential receipts. The Company liquidated this holding on 12 June 2025.
23. Subsequent events
On 27 February 2026, the Company announced that it had renewed its secured
£50 million multi-currency revolving credit facility ("revolving credit
facility") with Bank of Nova Scotia, London Branch (the "Lender") on an
evergreen basis.
Under the terms of the revolving credit facility, the Company has the option
to increase the level of the commitment from £50 million to £70 million at
any time, subject to the identification by the Investment Manager of suitable
investment opportunities and the Lender's credit approval.
ALTERNATIVE PERFORMANCE MEASURES (Unaudited)
Alternative performance measures are numerical measures of the Company's
current, historical or future performance, financial position or cash flows,
other than financial measures defined or specified in the applicable financial
framework. The Company's applicable financial framework includes IFRS and the
AIC SORP. The Directors assess the Company's performance against a range of
criteria which are viewed as particularly relevant for closed-end investment
companies.
Discount to net asset value per Ordinary share
The discount is the amount by which the share price is lower than the net
asset value per share, expressed as a percentage of the net asset value.
2025 2024
NAV per Ordinary share (p) a 285.56 251.42
Share price (p) b 264.00 220.00
Discount (b-a)/a 7.6% 12.5%
Dividend cover
Dividend cover measures the revenue return per share divided by total
dividends per share, expressed as a ratio.
2025 2024
Revenue return per share a 14.73p 11.35p
Dividends per share b 16.24p 14.43p
Dividend cover a/b 0.91 0.79
Dividend yield
The annual dividend per Ordinary share divided by the share price, expressed
as a percentage.
2025 2024
Annual dividend per Ordinary share (p) a 16.24p 14.43p
Share price (p) b 264.00p 220.00p
Dividend yield (b-a)/a 6.2% 6.6%
Net gearing
Net gearing measures the total borrowings less cash and cash equivalents
dividend by shareholders' funds, expressed as a percentage. Under AIC
reporting guidance cash and cash equivalents includes amounts due to and from
brokers at the year end as well as cash and cash equivalents including amounts
due to and from brokers.
2025 2024
Borrowings (£'000) a 31,400 32,422
Cash (£'000) b 8,531 9,349
Amounts due to brokers (£'000) c 7,301 4,127
Amounts due from brokers (£'000) d 11,138 -
Shareholders' funds (£'000) e 406,964 377,895
Net gearing (a-b+c-d)/e 4.7% 7.2%
Ongoing charges
The ongoing charges ratio has been calculated in accordance with guidance
issued by the AIC, to include the look-through costs of holding certain
investment funds as well as the total of investment management fees and
administrative expenses and expressed as a percentage of the average daily net
asset values with debt at fair value published throughout the year.
2025 2024
Investment management fees (£'000) 2,339 2,368
Administrative expenses (£'000) 1,124 1,049
Less: non-recurring charges A (£'000) (54) (134)
Ongoing charges (£'000) 3,409 3,283
Average net assets (£'000) 372,177 384,548
Ongoing charges ratio 0.92% 0.85%
A Professional services comprising advisory and legal fees considered
unlikely to recur.
Total return
NAV and share price total returns show how the NAV and share price has
performed over a period of time in percentage terms, taking into account both
capital returns and dividends paid to shareholders. Share price and NAV total
returns are monitored against open-ended and closed-ended competitors, and the
Reference Index, respectively.
Share
Year ended 31 December 2025 NAV Price
Opening at 1 January 2025 a 251.42p 220.00p
Closing at 31 December 2025 b 285.56p 264.00p
Price movements c=(b/a)-1 13.6% 20.0%
Dividend reinvestment A d 8.6% 10.0%
Total return c+d 22.2% 30.0%
Share
Year ended 31 December 2024 NAV Price
Opening at 1 January 2024 a 238.59p 208.00p
Closing at 31 December 2024 b 251.42p 220.00p
Price movements c=(b/a)-1 5.4% 5.8%
Dividend reinvestment A d 5.4% 6.2%
Total return c+d 10.8% 12.0%
A NAV total return involves investing the net dividend in the NAV of the
Company with debt at par value on the date on which that dividend goes
ex-dividend. Share price total return involves reinvesting the net dividend in
the share price of the Company on the date on which that dividend goes
ex-dividend.
Additional Notes:
The Annual Financial Report Announcement is not the Company's statutory
financial statements. The above results for the year ended 31 December 2025
are an abridged version of the Company's full financial statements, which have
been approved and audited with an unqualified report. The 2024 and 2025
statutory financial statements received unqualified reports from the Company's
Auditor and did not include any reference to matters to which the Auditor drew
attention by way of emphasis without qualifying the reports. The financial
information for 2024 is derived from the statutory financial statements for
2025 which have been lodged with the JFSC. The 2025 financial statements will
be filed with the JFSC in due course.
The Annual Report will be posted to Shareholders and further copies may be
obtained from the registered office, 28 Esplanade, St Helier, Jersey JE2 3QA
and on the Company's website* asian-income.co.uk.
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.
* Neither the content of the Company's website nor the content of any website
accessible from hyperlinks on the Company's website (or any other website) is
(or is deemed to be) incorporated into, or forms (or is deemed to form) part
of this announcement.
JTC Fund Solutions (Jersey) Limited
Company Secretary
17 March 2026
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. END FR AKOBDOBKDDND
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