Annual Financial Report

RNS Number : 7054G

Aberdeen New Dawn Invest Trust PLC

02 July 2012

 



ABERDEEN NEW DAWN INVESTMENT TRUST PLC

ANNUAL FINANCIAL REPORT

for the year ended 30 April 2012

1.  CHAIRMAN'S STATEMENT

Background

In what was a volatile period for global stockmarkets, I am pleased to report that your Company performed relatively well. While the net asset value fell marginally by 1.5% to 906.92p for the year to 30 April 2012, and the share price declined 6.4% to 809.50p (both on a total return basis), these figures nonetheless compare positively with the benchmark MSCI AC Asia Pacific ex-Japan Index, which saw a larger decline of 7.7%.

The principal reason for the outperformance against the benchmark was good stock selection as the conservative investment strategy pursued by your Manager - one that is based on intensive proprietary research to identify quality companies - stood the portfolio in good stead. A detailed analysis of performance is set out in the Manager's Review.

Revenue and Dividend

Revenue returns from the portfolio during the year were very strong. As a result of this, and in compliance with investment trust rules which require the Company to distribute at least 85% of its income from securities, we are proposing to raise the dividend this year to 16.50p, an increase of 32% on last year's level. If approved by shareholders at the Annual General Meeting, the final dividend will be paid on 24 August 2012 to Ordinary shareholders on the register on 3 August 2012. Next year, the Board anticipates splitting the dividend into an interim and a final payment. The amount of the interim dividend will be confirmed at the time of the Company's interim results.  Shareholders should be aware that, as in previous years, the level of future dividends will depend on future receipts from the portfolio.

Overview

The year under review was a challenging period for equities as Europe's crisis and global economic uncertainty hung over financial markets. Last summer was especially turbulent, with Asian stockmarkets falling by more than 20% in August and September. Although early 2012 saw a return of risk appetite, markets have turned down again at the time of writing. Not only are Europe's debt troubles back in the headlines, but China's economic slowdown and the weak US recovery have also triggered fresh concerns over the fragility of the global recovery.

China's decelerating economy, in particular, is being widely watched. Lower growth reflects both weaker exports along with policy tightening to curb inflation and contain property bubbles in some cities. Still, China's growth rate continues to stand out from that of the developed world as well as its other Asian neighbours. There are vital questions to be asked about the quality and sustainability of that rapid growth, however. For instance, China's banks, in your Manager's view, are storing up trouble for later. 

Much attention has also been paid to India's lower growth. The global slowdown has hurt external demand but India's economic downturn has been largely of its own making. High interest rates to contain stubborn inflation have taken their toll. Politics has been another stumbling block. A series of corruption scandals compounded the coalition government's indecision that led to the backpedalling on several proposed reforms. 

Elsewhere in Asia, economies continued to grow, albeit at more modest rates. In common with China and India, the slowdown was largely a result of fading external demand alongside government policy to cool inflation. However, price pressures subsided as the period progressed, allowing central banks to loosen monetary policy to support growth. Australia, Indonesia and Thailand, for example, lowered interest rates. China reduced the amount of cash that banks must hold as reserves. India, despite its sticky inflation, cut rates too. Unfortunately, that alone will not restore an economy crippled by political paralysis and a hostile investment environment.

Political tensions were also high in China ahead of the country's transfer of power this October; hitherto high-flying politician Bo Xilai was abruptly and publicly removed from his post as Chongqing party chief. On a more optimistic note, elections across the region were relatively calm. Thailand witnessed a peaceful change of government following Yingluck Shinawatra's landslide win; her government was then tested by the country's worst flooding in 50 years. In Taiwan, incumbent Ma Ying-Jeou was re-elected as president, while ruling parties in Korea and Singapore were voted back to power. Meanwhile, Myanmar appeared to be making tentative steps towards opening up its economy following opposition leader Aung San Suu Kyi's historic parliamentary victory.

Annual General Meeting

As special business at the Annual General Meeting ("AGM") we are proposing to renew the authority to allot up to 10% of the Company's issued share capital without pre-emption rights applying, and the authority to buy in shares, and either hold them in treasury for future resale (at net asset value or above) or cancel them. We have not bought back any shares or issued any new shares during the year under review, however, your Board believes that it is appropriate to retain maximum flexibility in this regard. Accordingly the Board encourages shareholders to vote in favour of these resolutions.

The AGM of the Company will be held on Wednesday 22 August 2012 at 12.00 pm in London, and your Board looks forward to meeting as many shareholders as possible at both the AGM and the subsequent lunch.

Board

Following a comprehensive search process undertaken by a search firm on the Board's behalf, Heather Manners was appointed to the Board on 1 May 2012. Heather is Chief Investment Officer at Prusik Investment Management and, prior to that, was Head of Asia and Emerging Markets at Henderson Global Investors. She has over 20 years' experience of investment management. Heather will be standing for election at the forthcoming AGM. I will be standing down as Chairman of the Company at the AGM, and retiring from the Board on 31 December 2012. David Shearer, the current Deputy Chairman, will succeed me as Chairman. Richard Hills will become Senior Independent Director and John Lorimer will become Chairman of the Audit Committee at that time.

Outlook

There is reason for caution in the near term. Europe's crisis is not over; the underlying imbalances as well as weaknesses of economies and banking systems have yet to be resolved. At the same time, the US economic recovery remains tenuous. Asia cannot be insulated from these problems. For one, many countries in the region are still reliant on exports to the US and Europe. Foreign investors also tend to flee local financial markets when risk aversion rises.

That said, Asia's economic outlook, underpinned by firm fundamentals, remains promising. Governments have largely maintained fiscal discipline, while corporate and household finances are equally robust. According to the IMF, Asia is still the world's fastest-growing region; it should expand at around 6% this year and about 6.5% in 2013. In the longer term, an emerging middle class is expected to drive the shift away from export dependence towards domestic consumption. Overall, we believe that the region's prospects are still encouraging and that the potential for long-term returns remains very strong.

Alan Henderson

Chairman

2 July 2012

2.  MANAGER'S REVIEW

Asian equities experienced a turbulent year under review with market sentiment unsettled by global events. However, it was Europe's debt problems that caused financial markets to lurch sharply. New setbacks kept emerging each time the crisis appeared to be on the brink of a solution. At first, an escalation of the Continent's fiscal woes weighed on markets. Then a downgrade of the US sovereign credit rating, following domestic political wrangling over the debt ceiling, unnerved investors. After a brief recovery, Asian equities suffered another sell-off as lacklustre economic indicators reinforced worries that global growth was stalling.

At the start of 2012, markets rebounded thanks to the European Central Bank's liquidity injections, which soothed contagion fears. A pick-up in the US economy and the Federal Reserve's commitment to maintaining a loose monetary policy provided further impetus. For Asia, most central banks also kept their monetary stance accommodative to boost slowing economies, although a spike in global oil prices renewed inflation fears. By March, however, risk aversion returned amid growing uncertainty in Europe and fresh fears over a Chinese hard landing. The region's growth, too, had slowed markedly while the US recovery proved less robust than expected.

By the end of the reporting period, most Asian markets finished down. India was the key laggard, as noted by the Chairman. Concerns over the nation's fiscal health, stubborn inflation and policy paralysis weighed on Indian equities. While the domestic environment remains challenging, the portfolio maintains a significant exposure to India given that many companies continue to do well and offer good long-term growth prospects. China and Hong Kong also underperformed. Cooling growth, which prompted Beijing to downgrade its official forecast to the lowest since 2004 and shift the economic model to one focused on consumption, affected both equity markets. In Australia, the mining boom that has helped the country outperform nearly every advanced economy since the financial crisis created a two-speed economy. Although businesses in mineral rich states prospered, those in non-resources sectors such as retail and manufacturing struggled with the strong Australian dollar and subdued private consumption. In Singapore, shares were dragged lower by external macroeconomic events. But there were exceptions to the general downtrend. The Philippines benefited from a recovery in domestic economy and tight fiscal discipline. Thai equities recovered quickly following last year's floods. Political stability stemming from the Yingluck administration's rise last July coupled with government reconstruction plans and generally positive corporate earnings buoyed investor sentiment.

Portfolio Review

The portfolio outperformed the benchmark MSCI AC Asia Pacific ex Japan, largely thanks to good stock selection, particularly in Southeast Asia where the equity markets in Thailand, Singapore and the Philippines outperformed their counterparts elsewhere in Asia.

The portfolio's defensive regional holdings, such as those in the telecoms and consumer staples sectors, proved resilient amid the market weakness in the second half of 2011. In Taiwan, both Taiwan Mobile and TSMC outperformed, thanks to their solid balance sheets and good dividend yields; TSMC was also buoyed by expectations of better demand in 2012. In Hong Kong, conglomerates Jardine Strategic and Swire Pacific's underlying businesses underpinned their gains. Notably, Jardine's Indonesian unit, Astra International, enjoyed another record year with good growth across its businesses, while Swire's property division continued to do well on the back of positive rental reversion and high occupancy. Meanwhile, ASM Pacific Technology's stock price was lifted by record turnover in 2011 and a stable outlook for 2012.

Also helping performance was our choice of stock in Korea, where Samsung Electronics bucked the downtrend. The company's operating profits were boosted by the sale of its hard disk drive unit and the robust performance of its handset business. It plans to invest 25 trillion won (equivalent to £13.6 billion), the bulk of which will go towards capital spending in its semiconductor and display businesses. The portfolio's Chinese holdings, China Mobile and PetroChina, also did well. China Mobile's results met expectations, as profits rose amid declining margins. Its robust balance sheet should support future network development. The higher oil price supported PetroChina. The mainland government is also implementing price reform that will boost its downstream business. 

Despite the weak market in India, the portfolio's exposure via the Aberdeen Global - Indian Equity Fund proved beneficial, as it outperformed the local benchmark. The Fund's performance was driven by core holdings, Godrej Consumer Products, Hero MotoCorp, Hindustan Unilever and cement-related companies, Grasim and Ultratech, all of which outperformed the local index.

Elsewhere, holding Ayala Land benefited performance. The Philippine property developer's market segmentation strategy bore fruit as evidenced by its record annual profits. The company is upbeat about the future and significantly boosted its capital expenditure programme for 2012. In Singapore, healthy earnings results buoyed SingTel and ST Engineering. SingTel's results met expectations, with a steady domestic business and contributions from regional associates supporting net profits; its subsidiary Optus was boosted by the Australian dollar's strength. ST Engineering's marine and aerospace divisions underscored its good performance; the group generated healthy operating cashflow and ended the quarter with a robust order book. Other contributions came from the portfolio's holdings in Indonesia and those with indirect exposure there. Unilever Indonesia delivered upbeat growth with improved margins. UK-listed plantation company MP Evans rallied on the back of healthy palm oil prices and good production volumes in Indonesia.

In contrast, the Australian holdings, QBE Insurance and Rio Tinto, and Hong Kong property developer Sun Hung Kai (SHK) underperformed and deserve special mention. QBE was faced with higher catastrophe claims last year, which resulted in a cut in dividends and a capital raising exercise. Given that these events were outside its control and are not, in our view, a reflection of poor management, we remain supportive of the company. Natural disasters also affected Rio's output and the mining company's share price was depressed by concerns over China's slowing growth. News that three of SHK's directors are being investigated for alleged corruption undermined the company's share price. With investigations still pending, we will continue to monitor developments closely.

In terms of portfolio activity, we introduced Singapore-headquartered conglomerate Keppel Corp, which is well-placed in a sector that is undergoing structural growth, given oil and gas investments worldwide. As we built up the position in Keppel, we sold down the small holdings in Korean department store operator Shinsegae and industrial gas supplier Linde Pakistan. We also took profit from more defensive stocks such as those in the telecoms and consumer staples sectors, and used the proceeds to add to holdings which remained fundamentally robust but fared less well during the market volatility. These included positions in the financials and property sectors.

Outlook

Looking ahead, Asian stockmarkets remain vulnerable to the same external headwinds that had troubled investors earlier. There is still no end in sight to Europe's debt crisis. Greece's position in the single currency looks increasingly shaky while the Spanish banking crunch has intensified worries over the threat of contagion to other parts of the periphery. Across the Atlantic, the US economy may be growing, but it remains hamstrung by still high unemployment and a fragile housing market. The fiscal outlook there is muddied by political gridlock and uncertainty ahead of the November presidential election. In Asia, attention will remain focused on China meeting its official forecast of 7.5% growth as sluggish foreign demand and a government-induced property slowdown weigh on the domestic economy; a shortfall in GDP growth there could exacerbate fears of a broader slowdown in the region.

Despite the challenging times ahead, we remain optimistic about Asia's longer term prospects, given its steady fundamentals. The region is financially sound, while overall growth is still expected to outpace the developed world. And, barring a continued rise in oil prices, slowing growth should help ease inflationary pressures. On the corporate front, earnings growth could remain subdued in view of uncertain market conditions, but valuations are now presenting good opportunities in the region.

Aberdeen Asset Management Asia Limited

2 July 2012

3.  BUSINESS REVIEW

A review of the Company's activities is given in the Chairman's Statement and the Manager's Review.

Investment Objective 

The investment objective of the Company is to provide shareholders with a high level of capital growth through equity investment in the Asia Pacific countries ex Japan.

Benchmark

The Company compares its performance to the currency-adjusted MSCI AC Asia Pacific ex Japan Index.

Investment Policy

The Company's assets are invested in a diversified portfolio of securities in quoted companies spread across a range of industries and economies in the Asia Pacific region excluding Japan. Investments may also be made through collective investment schemes and in companies traded on stock markets outside the Asia Pacific investment region provided that over 75 per cent. of their consolidated revenue is earned from trading in the investment region or they hold more than 75 per cent. of their consolidated net assets in the Asia Pacific investment region.

The Board is responsible for determining the gearing strategy for the Company. Gearing is used selectively to leverage the Company's portfolio in order to enhance returns where and to the extent this is considered appropriate to do so. At the year end there was potential gearing of 8 per cent. which compares with a current maximum limit set by the Board of 25 per cent.. Borrowings are short term and particular care is taken to ensure that any bank covenants permit maximum flexibility of investment policy.

In addition, it is the investment policy of the Company to invest no more than 15 per cent. of its gross assets in other listed investment companies (including listed investment trusts). As at 30 April 2012, 3.6 per cent. of the Company's portfolio was invested in investment companies.

Capital Structure

At 30 April 2012 the Company had a capital structure comprising 24,909,402 Ordinary shares of 25p (with a further 477,731 shares being held in treasury at that date).

The Company also had total bank borrowings, at 30 April 2012, equivalent to approximately £17,664,000 which rank for repayment ahead of any capital return to shareholders. These were drawn as follows: HKD154,100,000 (equivalent to approximately £12,233,000), USD4,760,000 (equivalent to approximately £2,931,000) and £2,500,000.

Total Assets and Net Asset Value

The Company had total assets of £243.6 million and a net asset value of 906.9 pence per Ordinary share at 30 April 2012. 

Duration

The Company does not have a fixed life. However, under the Articles of Association, if in the 12 weeks preceding the Company's financial year end (30 April) the Ordinary shares have been trading, on average, at a discount in excess of 15% to the underlying net asset value over the same period, notice will be given of a special resolution to be proposed at the following Annual General Meeting that the Company be put into voluntary liquidation. In the 12 weeks to 30 April 2012 the average discount to underlying net asset value of the Ordinary shares was 8.4%, therefore no special resolution will be put to the Company's shareholders.

Risk

Investment in Asia-Pacific securities or those of companies that derive significant revenue or profit from the Asia-Pacific region involves a greater degree of risk than that usually associated with investment in the securities in major securities markets, including the risk of social, economic or political instability, which may have an adverse effect on economic returns or restrict investment opportunities. 

The Company currently utilises gearing in the form of bank borrowings (see 'Capital Structure' above and note 11 to the Financial Statements). Gearing magnifies the effect of market movements on the net asset value of the Company.

The major risks associated with the Company are:

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

·      Investment and market risk: the Board continually monitors the investment policy of the Company, taking account of stockmarket factors, and reviews the Company's performance compared to its benchmark index. Further details on other risks relating to the Company's investment activities, including market price, interest rate, liquidity and foreign currency risks, are disclosed in Note 18 to the Financial Statements.

·      Gearing risk: the Company currently uses gearing in the form of bank borrowings equivalent to approximately £17,664,000, under its loan facility of £30,000,000. As at 30 April 2012, these were drawn as follows: HKD154,100,000 (equivalent to approximately £12,233,000), USD 4,760,000 (equivalent to approximately £2,931,000) and £2,500,000.

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

The particular risks of investment in Asia include:

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

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

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

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

Internal Control

The Board is ultimately responsible for the Company's system of internal control and for reviewing its effectiveness. Following publication of the Financial Reporting Council's "Internal Control: Revised Guidance for Directors on the Combined Code" (the FRC Guidance), the Board confirms that there is an ongoing process for identifying, evaluating and managing the significant risks faced by the Company. This process has been in place for the year under review and up to the date of approval of this Annual Report and Accounts, and is regularly reviewed by the Board and accords with the FRC Guidance. The Board has reviewed the effectiveness of the system of internal control. In particular, it has reviewed and updated the process for identifying and evaluating the significant risks affecting the Company and policies by which these risks are managed.

4.  STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report and Accounts in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice).

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 the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

•      select suitable accounting policies and then apply them consistently;

•      make judgments and estimates that are reasonable and prudent;

•      state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

•      prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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 the financial statements comply with the Companies Act 2006. They 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.

Under applicable law and regulations, the Directors are also responsible for preparing a Directors' Report, Directors' Remuneration Report and Corporate Governance Statement that complies with that law and those regulations.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Directors confirm that to the best of their knowledge:

•      the financial statements, prepared in accordance with the applicable accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and

•      the Directors' Report includes 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 the Company faces.

For Aberdeen New Dawn Investment Trust PLC

Alan Henderson

Chairman

2 July 2012

5.  RESULTS

Highlights

	30 April 2012	30 April 2011	% change
Total assets	£243,572,000	£243,824,000	-0.1
Total equity shareholders' funds (net assets)	£225,908,000	£232,406,000	-2.8
Share price (mid market)	809.50p	878.25p	-7.8
Net asset value per share	906.92p	933.01p	-2.8
Discount to net asset value	10.7%	5.9%
MSCI AC Asia Pacific ex Japan Index (currency adjusted, capital gains basis)	508.30	567.86	-10.5
Potential gearing	1.08	1.05
Dividend and earnings
Revenue return per share{A}	19.86p	15.86p	+25.2
Proposed final dividend per share{B}	16.50p	12.50p	+32.0
Dividend cover	1.20	1.27
Revenue reserves{C}	£11,427,000	£9,595,000
Operating costs
Total expense ratio{D}	1.05%	1.03%
{A}    Measures the total earnings for the year divided by the weighted average number of Ordinary shares in issue (see Income Statement).
{B}    The figures for dividends still reflect the years in which they were earned (see note 7) and have not been restated.
{C}    Prior to payment of proposed final dividend.
{D}    Calculated in accordance with AIC guidelines ie ongoing annual costs divided by average net assets over the year.

	Performance (total return)
		1 year return	3 year return	5 year return
		%	%	%
Share price		-6.4	+91.5	+67.9
Net asset value		-1.5	+93.5	+75.3
MSCI AC Asia Pacific ex Japan Index (currency adjusted)		-7.7	+55.8	+47.9

	Rate	xd date	Record date	Payment date
Proposed final 2012	16.50p	1 August 2012	3 August 2012	24 August 2012
Final 2011	12.50p	3 August 2011	5 August 2011	26 August 2011

Financial Record
Year to 30 April	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012
Total revenue (£'000)	2,447	2,404	3,188	3,345	4,027	4,301	4,734	4,372	5,752	6,799
Per share (p)
Net revenue return	5.10	4.83	6.84	6.58	7.63	8.14	10.48	11.87	15.86	19.86
Total return	48.01	103.41	30.35	175.78	50.04	101.51	(153.19)	331.69	132.19	(13.58)
Net dividends paid/proposed{A}	3.80	3.80	5.00	5.00	5.55	6.00	8.00	10.00	12.50	16.50
Net asset value per share	201.66	301.27	330.42	503.83	548.87	646.31	487.12	810.81	933.01	906.92
Equity shareholders' funds (£'000)	46,920	70,097	77,341	127,907	139,342	160,993	121,339	201,969	232,406	225,908
{A}     The figures for dividends have not been restated and still reflect the dividend for the years in which it was earned. The 2005 figure includes a 1.0p Special.

6.  INVESTMENT PORTFOLIO

As at 30 April 2012
			Valuation	Total	Valuation
			2012	assets{B}	2011
Company	Industry	Country	£'000	%	£'000
Aberdeen Global - Indian Equity Fund			25,716	10.6	32,113
A tax-efficient pooled India fund with a long-term investment approach managed by the same team managing the Company. There is no double-charging of management fees.	Collective Investment Scheme	India
Samsung Electronics Pref			11,930	4.9	9,471
Asia's leading electronics firm that makes consumer electronics, semiconductors, telecom equipment and TFT LCD screens.	Semiconductors & Semiconductor Equipment	South Korea
Jardine Strategic Holdings			10,155	4.2	9,629
A Singapore-listed conglomerate with interests across the region spanning property, hotels and consumer products.	Industrial Conglomerates	Hong Kong
Oversea-Chinese Banking Corporation			10,063	4.1	10,143
A well-run Singaporean bancassurance company seeking to generate additional value for shareholders by restructuring assets and via regional expansion.	Commercial Banks	Singapore
QBE Insurance Group			9,533	3.9	7,779
A leading Australian general insurance and reinsurance firm that is geographically diversified, and has a track record of generating good shareholder returns.	Insurance	Australia
Taiwan Semiconductor Manufacturing Company			9,450	3.9	7,923
The world's largest dedicated semiconductor foundry, it provides wafer manufacturing, wafer probing, assembly and testing, mask production and design services.	Semiconductors & Semiconductor Equipment	Taiwan
Rio Tinto - London listed			8,113	3.3	10,306
An Anglo-Australian mining company with a diverse portfolio of world-class interests in aluminium, copper, diamonds, gold, coal, iron ore and industrial metals.	Metals & Mining	Australia
Standard Chartered - London listed			7,547	3.1	8,314
A global emerging market focused lender which complements the other banking sector holdings, given its robust wholesale business and exposure to North Asia, where there is a paucity of quality large-cap banks.	Commercial Banks	UK
United Overseas Bank			7,338	3.0	7,164
Singapore's second largest bank, primarily focused on SMEs and consumers, with its core market in Singapore and the balance predominantly in southeast Asia.	Commercial Banks	Singapore
Swire Pacific {A}			7,171	2.9	8,299
Hong Kong listed conglomerate, with interests in aviation (via Cathay Pacific), property, beverages, marine services and industrial activities.	Real Estate Management & Development	Hong Kong
Top ten investments			107,016	43.9
{A}         Holding merges two equity holdings, split as follows: A shares £465,000 (2011 £nil) and B shares £6,706,000 (2011 £ 8,299,000).

Investment Portfolio

As at 30 April 2012

			Valuation	Total	Valuation
			2012	assets{B}	2011
Company	Industry	Country	£'000	%	£'000
PetroChina	Oil, Gas & Consumable Fuels	China	6,768	2.8	6,223
Aberdeen Asian Smaller Companies Inv. Trust	Investment/Unit Trusts	Other Asia	6,633	2.7	5,693
Ayala Land	Real Estate Management & Development	Philippines	6,228	2.6	4,599
Siam Cement - Foreign	Construction Materials	Thailand	6,085	2.5	6,407
Singapore Technologies Engineering	Aerospace & Defence	Singapore	5,992	2.5	6,161
HSBC Holdings	Commercial Banks	Hong Kong	5,988	2.5	1,849
BHP Billiton (London listing)	Metals & Mining	Australia	5,884	2.4	6,059
PTT Exploration & Production - Foreign	Oil, Gas & Consumable Fuels	Thailand	5,739	2.4	5,999
City Developments	Real Estate Management & Development	Singapore	5,602	2.3	6,425
Singapore Telecommunication	Diversified Telecommunication Services	Singapore	5,495	2.3	6,865
Top twenty investments			167,430	68.9
China Mobile	Wireless Telecommunication Services	China	4,742	1.9	3,822
AIA Group	Insurance	Hong Kong	4,607	1.9	3,816
Taiwan Mobile	Wireless Telecommunication Services	Taiwan	4,449	1.8	3,845
ASM Pacific Technology	Semiconductors & Semiconductor Equipment	Hong Kong	4,413	1.8	4,267
Woolworths	Food & Staples Retailing	Australia	3,772	1.6	3,947
Dairy Farm International	Food & Staples Retailing	Hong Kong	3,594	1.5	3,894
Hang Lung Group	Real Estate Management & Development	Hong Kong	3,398	1.4	3,552
CIMB Group Holdings	Commercial Banks	Malaysia	3,369	1.4	3,709
Venture Corp	Electronic Equipment Instruments & Components	Singapore	2,996	1.2	3,307
Sun Hung Kai Properties	Real Estate Management & Development	Hong Kong	2,892	1.2	3,558
Top thirty investments			205,662	84.6
Unilever Indonesia	Household Products	Indonesia	2,803	1.2	2,607
M.P. Evans Group	Food Products	Indonesia	2,789	1.1	2,483
Wing Hang Bank	Commercial Banks	Hong Kong	2,701	1.1	2,707
Swire Properties	Real Estate Management & Development	Hong Kong	2,643	1.1	-
Keppel Corporation	Industrial Conglomerates	Singapore	2,429	1.0	-
Public Bank Berhad (Alien mkt)	Commercial Banks	Malaysia	2,401	1.0	2,283
Aitken Spence & Co.	Industrial Conglomerates	Sri Lanka	2,337	1.0	3,992
Li & Fung	Distributors	Hong Kong	2,277	0.9	1,418
Singapore Airlines	Airlines	Singapore	2,236	0.9	2,899
John Keells Holdings	Industrial Conglomerates	Sri Lanka	2,228	0.9	1,398
Top forty investments			230,506	94.8
New India Inv. Trust	Investment/Unit Trusts	India	2,092	0.8	2,806
Hang Lung Properties	Real Estate Management & Development	Hong Kong	1,932	0.8	2,248
E-Mart	Food & Staples Retailing	South Korea	1,741	0.7	2,432
BS Financial Group	Commercial Banks	South Korea	1,547	0.6	2,119
Dah Sing Financial	Commercial Banks	Hong Kong	1,043	0.4	1,763
DFCC Bank	Commercial Banks	Sri Lanka	1,035	0.4	1,665
DGB Financial Group	Commercial Banks	South Korea	975	0.4	1,344
National Development Bank	Commercial Banks	Sri Lanka	530	0.2	811
Total investments			241,401	99.1
Net current assets{A}			2,171	0.9
Total assets			243,572	100.0
{A}        Excluding bank loan of £17,664,000.
Note: Unless otherwise stated, foreign stock is held and all investments are equity holdings.

7.  INCOME STATEMENT

		Year ended 30 April 2012			Year ended 30 April 2011
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
(Losses)/gains on investments held at fair value through profit or loss	9	-	(7,168)	(7,168)	-	28,879	28,879
Income	2	6,799	-	6,799	5,752	-	5,752
Investment management fee	3	(800)	(800)	(1,600)	(781)	(781)	(1,562)
Administrative expenses	4	(688)	-	(688)	(708)	-	(708)
Exchange (losses)/gains		-	(230)	(230)	-	948	948
		_______	_______	_______	_______	_______	_______
Net return on ordinary activities before finance costs and taxation		5,311	(8,198)	(2,887)	4,263	29,046	33,309
Interest payable and similar charges	5	(132)	(132)	(264)	(69)	(69)	(138)
		_______	_______	_______	_______	_______	_______
Return on ordinary activities before taxation		5,179	(8,330)	(3,151)	4,194	28,977	33,171
Taxation	6	(233)	-	(233)	(243)	-	(243)
		_______	_______	_______	_______	_______	_______
Return on ordinary activities after taxation		4,946	(8,330)	(3,384)	3,951	28,977	32,928
		_______	_______	_______	_______	_______	_______
Return per Ordinary share (pence)	8	19.86	(33.44)	(13.58)	15.86	116.33	132.19
		_______	_______	_______	_______	_______	_______
The total column of this statement represents the profit and loss account of the Company.
A Statement of Total Recognised Gains and Losses has not been prepared as all gains and losses are recognised in the Income Statement.
All revenue and capital items are derived from continuing operations.
The accompanying notes are an integral part of the financial statements.

8.  BALANCE SHEET

		As at	As at
		30 April 2012	30 April 2011
	Notes	£'000	£'000
Non-current assets
Investments at fair value through profit or loss	9	241,401	240,382
		_________	_________
Current assets
Loans and receivables	10	1,244	958
Cash at bank and in hand		1,356	2,982
		_________	_________
		2,600	3,940
		_________	_________
Creditors: amounts falling due within one year	11
Loans		(17,664)	(11,418)
Other creditors		(429)	(498)
		_________	_________
		(18,093)	(11,916)
		_________	_________
Net current liabilities		(15,493)	(7,976)
		_________	_________
Net assets		225,908	232,406
		_________	_________
Share capital and reserves
Called-up share capital	12	6,347	6,347
Share premium account		17,955	17,955
Special reserve		11,617	11,617
Capital redemption reserve		10,207	10,207
Capital reserve	13	168,355	176,685
Revenue reserve		11,427	9,595
		_________	_________
Equity shareholders' funds		225,908	232,406
		_________	_________
Net asset value per Ordinary share (pence)	14	906.92	933.01
		_________	_________

9.  RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

For the year ended 30 April 2012
		Share			Capital
	Share	premium	Special		redemption		Capital	Revenue
	capital	account	reserve		reserve		reserve	reserve		Total
	£'000	£'000	£'000		£'000		£'000	£'000		£'000
Balance at 30 April 2011	6,347	17,955	11,617		10,207		176,685	9,595		232,406
Return on ordinary activities after taxation	-	-	-		-		(8,330)	4,946		(3,384)
Dividend paid (see note 7)	-	-	-		-		-	(3,114)		(3,114)
	______	______	______		______		______	______		______
Balance at 30 April 2012	6,347	17,955	11,617		10,207		168,355	11,427		225,908
	______	______	______		______		______	______		______
For the year ended 30 April 2011
		Share			Capital
	Share	premium		Special	redemption	Capital			Revenue
	capital	account		reserve	reserve	reserve			reserve	Total
	£'000	£'000		£'000	£'000	£'000			£'000	£'000
Balance at 30 April 2010	6,347	17,955		11,617	10,207	147,708			8,135	201,969
Return on ordinary activities after taxation	-	-		-	-	28,977			3,951	32,928
Dividend paid (see note 7)	-	-		-	-	-			(2,491)	(2,491)
	______	______		______	______	______			______	______
Balance at 30 April 2011	6,347	17,955		11,617	10,207	176,685			9,595	232,406
	______	______		______	______	______			______	______
The revenue reserve represents the amount of the Company's reserves distributable by way of dividend.
The accompanying notes are an integral part of the financial statements.

10.  CASH FLOW STATEMENT

		Year ended		Year ended
		30 April 2012		30 April 2011
	Notes	£'000	£'000	£'000	£'000
Net cash inflow from operating activities	15		3,211		2,575
Servicing of finance
Bank and loan interest paid			(264)		(138)
Taxation
Net tax paid			(233)		(243)
Financial investment
Purchases of investments		(15,310)		(13,165)
Sales of investments		8,068		11,170
		_______	_______	_______	_______
Net cash outflow from financial investment			(7,242)		(1,995)
Equity dividend paid			(3,114)		(2,491)
			_______		_______
Net cash outflow before financing			(7,642)		(2,292)
Financing
Loans drawdown			6,766		1,500
			_______		_______
Net cash inflow from financing			6,766		1,500
			_______		_______
Decrease in cash	16		(876)		(792)
			_______		_______
Reconciliation of net cash flow to movements in net debt
Decrease in cash as above			(876)		(792)
Drawdown of loan			(6,766)		(1,500)
Exchange movements			(230)		948
			_______		_______
Movement in net debt in the year			(7,872)		(1,344)
Opening net debt			(8,436)		(7,092)
			_______		_______
Closing net debt	16		(16,308)		(8,436)
			_______		_______

11.  NOTES TO THE FINANCIAL STATEMENTS:

1.	Accounting policies
	(a)	Basis of accounting
		The financial statements have been prepared under the historical cost convention, as modified to include the revaluation of investments and in accordance with the applicable UK Accounting Standards and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts'. They have also been prepared on the assumption that approval as an investment trust will continue to be granted. The financial statements have been prepared on a going concern basis. The Directors believe this is appropriate for the reasons outlined in the Directors' Report.
		The financial statements, and the net asset value per share figures, have been prepared in accordance with UK Generally Accepted Accounting Practice ('UK GAAP').
	(b)	Valuation of investments
		Listed investments have been designated upon initial recognition as fair value through profit or loss. Investments are recognised and de-recognised on the trade date at cost. Subsequent to initial recognition, investments are valued at fair value which for listed investments is deemed to be bid market prices. Gains and losses arising from changes in fair value are included as a capital item in the Income Statement and are ultimately recognised in the capital reserve.
	(c)	Income
		Dividends (other than special dividends), including taxes deducted at source, are included in revenue by reference to the date on which the investment is quoted ex-dividend. Special dividends are reviewed on a case-by-case basis and may be credited to capital, if circumstances dictate. Dividends receivable on equity shares where no ex-dividend date is quoted are brought into account when the Company's right to receive payment is established. Fixed returns on non-equity shares are recognised on a time apportioned basis so as to reflect the effective yield on shares. Other returns on non-equity shares are recognised when the right to return is established. Where the Company has elected to receive its dividends in the form of additional shares rather than cash, the amount of the cash dividend is recognised as income. Any excess in the value of the shares received over the amount of the cash dividend is recognised in capital reserves. Interest receivable on bank balances is dealt with on an accruals basis.
	(d)	Expenses
		All expenses are accounted for on an accruals basis. Expenses are charged through the revenue column of the Income Statement except as follows:
		·       expenses directly relating to the acquisition or disposal of an investment, in which case, they are added to the cost of the investment or deducted from the sale proceeds. Such transaction costs are disclosed in accordance with the SORP. These expenses are charged to the capital column of the Income Statement and are separately identified and disclosed in note 9; and
		·       the Company charges 50% of investment management fees and finance costs to the capital column of the Income Statement, 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.
	(e)	Deferred taxation
		Deferred taxation is provided on all timing differences, that have originated but not reversed at the Balance Sheet date, where transactions or events that result in an obligation to pay more or a right to pay less tax in future have occurred at the Balance Sheet date, measured on an undiscounted basis and based on enacted tax rates. 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 underlying timing differences can be deducted. Timing differences are differences arising between the Company's taxable profits and its results as stated in the accounts which are capable of reversal in one or more subsequent periods. Due to the Company's status as an investment trust company, and the intention to continue to meet the conditions required to obtain approval for the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments.
	(f)	Capital reserves
		Gains and losses on realisation of investments and changes in fair values of investments which are readily convertible to cash, without accepting adverse terms, are transferred to the capital reserve.
	(g)	Foreign currencies
		Assets and liabilities in foreign currencies are translated at the rates of exchange ruling on the Balance Sheet date. Transactions involving foreign currencies are converted at the rate ruling on the date of the transaction. Gains and losses on the realisation of foreign currencies are recognised in the Income Statement and are then transferred to the realised capital reserve.
	(h)	Dividends payable
		Final dividends are dealt with in the period in which they are paid.

		2012	2011
2.	Income	£'000	£'000
	Income from investments
	UK dividend income	957	667
	Overseas dividends	4,930	4,349
	Scrip dividends	907	720
		________	________
		6,794	5,736
		________	________
	Other income
	Deposit interest	5	5
	Underwriting commission	-	11
		________	________
		5	16
		________	________
	Total income	6,799	5,752
		________	________

		2012			2011
		Revenue	Capital	Total	Revenue	Capital	Total
3.	Investment management fee	£'000	£'000	£'000	£'000	£'000	£'000
	Investment management fee	800	800	1,600	781	781	1,562
		______	______	______	______	______	______
	The Company has an agreement with Aberdeen Asset Management Asia Limited ('AAM Asia') for the provision of management services.
	During the year the management fee was payable monthly in arrears and was based on an annual amount of 1% of the net asset value of the Company valued monthly, with the following provisions for commonly managed funds:
	·           The Company's investments in Aberdeen Global - Indian Equity Fund, Aberdeen Asian Smaller Companies Investment Trust and New India Investment Trust are excluded from the calculation of the investment management fee. The total value of such commonly managed funds, on a mid basis (basis on which management fee is calculated), at the year end was £34,441,000 (2011 - £40,612,000).
	·           From 1 May 2010, the Company receives a rebate from the Manager for the amount of fees in excess of 1% of net assets charged by the Manager for that commonly managed fund.
	The balance due to AAM Asia at the year end was £284,000 (2011 - £277,000).
	The agreement is terminable on one year's notice.

		2012	2011
4.	Administrative expenses	£'000	£'000
	Share Plan marketing contribution	159	125
	Directors' fees	143	142
	Safe custody fees	84	184
	Auditor's remuneration:
	-    fees payable to the Company's auditor for the audit of the Company's annual accounts	15	15
	-    fees payable to the Company's auditor for the review of the Company's half yearly accounts	4	4
	-    fees payable to the Company's auditor for taxation services	-	1
	Other administration expenses	283	237
		________	________
		688	708
		________	________
	The Company has an agreement with Aberdeen Asset Managers Limited ('AAM') for the provision of marketing services in relation to the Company's participation in the Aberdeen Investment Trust Share Plan and ISA. The total fees paid and payable under the agreement were £159,000 (2011 - £125,000) and the sum due to AAM at the year end was £14,000 (2011 - £23,000).
	No pension contributions were made in respect of any of the Directors.
	The Company does not have any employees.

		2012			2011
		Revenue	Capital	Total	Revenue	Capital	Total
5.	Interest payable and similar charges	£'000	£'000	£'000	£'000	£'000	£'000
	On bank loans and overdrafts	132	132	264	69	69	138
		_____	_____	______	______	______	______

			2012			2011
			Revenue	Capital	Total	Revenue	Capital		Total
6.	Taxation		£'000	£'000	£'000	£'000	£'000		£'000
	(a)	Analysis of charge for the year
		Overseas tax	238	-	238	243	-		243
		Overseas tax reclaimable	(5)	-	(5)	-	-		-
			_____	_____	_____	_____	_____		_____
		Current tax charge for the year	233	-	233	243	-		243
			_____	_____	_____	_____	_____		_____
	(b)	Factors affecting the tax charge for the year
		The tax assessed for the year is lower than the standard rate of corporation tax in the UK.
			2012			2011
			Revenue	Capital	Total	Revenue	Capital	Total
			£'000	£'000	£'000	£'000	£'000	£'000
		Net profit on ordinary activities before taxation	5,179	(8,330)	(3,151)	4,194	28,977	33,171
			_____	_____	_____	_____	_____	_____
		Corporation tax at effective rate of 25.83% (2011 - 27.83%)	1,338	(2,153)	(815)	1,167	8,064	9,231
		Effects of:
		Non-taxable UK dividend income	(247)	-	(247)	(186)	-	(186)
		Non-taxable scrip dividends	(234)	-	(234)	(200)	-	(200)
		Non-taxable overseas dividends	(1,035)	-	(1,035)	(1,020)	-	(1,020)
		Accrued income not taxable	(238)	-	(238)	(190)	-	(190)
		Overseas tax suffered	233	-	233	243	-	243
		Surplus management expenses and loan relationship deficits not relieved	416	242	658	429	237	666
		Non-taxable exchange losses/(gains)	-	59	59	-	(264)	(264)
		Non-taxable realised losses/(gains) on investments	-	1,852	1,852	-	(8,037)	(8,037)
			_____	_____	_____	_____	_____	_____
		Current tax charge	233	-	233	243	-	243
			_____	_____	_____	_____	_____	_____
	(c)	Provision for deferred taxation
		No provision for deferred taxation has been made in the current year or in the prior year.
		The Company has not provided for deferred tax on capital gains or losses arising on the revaluation or disposal of investments as it is exempt from tax on these items because of its status as an investment trust company.
	(d)	Factors that may affect future tax charges
		The Company has not recognised a deferred tax asset £1,346,000 (2011 - £802,000) arising as a result of excess management expenses and non-trade loan relationship deficits. These expenses will only be utilised if the Company has profits chargeable to corporation tax in the future.

		2012	2011
7.	Dividends	£'000	£'000
	Amounts recognised as distributions to equity holders in the period:
	Final dividend for 2011 - 12.50p (2010 - 10.00p)	3,114	2,491
		_______	_______
	The proposed final dividend for 2012 is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these financial statements.
	The table below sets out the final dividend proposed in respect of the financial year, which is the basis on which the requirements of Section 1158 of the Corporation Tax Act 2010 are considered. The revenue available for distribution by way of dividend for the year is £4,946,000 (2011 - £3,951,000).
		2012	2011
		£'000	£'000
	Proposed final dividend for 2012 - 16.50p (2011 - 12.50p)	4,110	3,114
		_______	_______

		2012		2011
8.	Return per Ordinary share	£'000	p	£'000	p
	Revenue return	4,946	19.86	3,951	15.86
	Capital return	(8,330)	(33.44)	28,977	116.33
		_______	_______	_______	_______
	Total return	(3,384)	(13.58)	32,928	132.19
		_______	_______	_______	_______
	Weighted average number of Ordinary shares in issue{A}		24,909,402		24,909,402
			__________		__________
	{A} Calculated excluding shares held in treasury.

		Listed	Listed
		overseas	in UK		Total
9.	Investments	£'000	£'000		£'000
	Fair value through profit or loss:
	Opening book cost	82,182	18,557		100,739
	Opening fair value gains on investments held	123,739	15,904		139,643
		_______	_______		_______
	Opening valuation	205,921	34,461		240,382
	Movements in the year:
	Purchases at cost	15,245	1,010		16,255
	Sales - proceeds	(7,791)	(277)		(8,068)
	Sales - realised gains	5,110	107		5,217
	Current year fair value losses on investments held	(10,143)	(2,242)		(12,385)
		_______	_______		_______
	Closing valuation	208,342	33,059		241,401
		_______	_______		_______
	Closing book cost	94,746	19,397		114,143
	Closing fair value gains on investments held	113,596	13,662		127,258
		_______	_______		_______
		208,342	33,059		241,401
		_______	_______		_______
			2012		2011
			£'000		£'000
	Investments listed on an overseas investment exchange		208,342		205,921
	Investments listed on the UK investment exchange		33,059		34,461
			_______		_______
			241,401		240,382
			_______		_______
			2012		2011
	Gains on investments held at fair value through profit or loss		£'000		£'000
	Realised gains on sales		5,217		7,894
	(Decrease)/increase in fair value gains on investments held		(12,385)		20,985
			_______		_______
			(7,168)		28,879
			_______		_______
	Transaction costs
	During the year expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. These have been expensed through capital and are included within (losses)/gains on investments held at fair value through profit or loss in the Income Statement. The total costs were as follows:
			2012	2011
			£'000	£'000
	Purchases		48	45
	Sales		14	32
			_______	_______
			62	77
			_______	_______

		2012	2011
10.	Loans and receivables	£'000	£'000
	Prepayments and accrued income	1,218	950
	Other loans and receivables	26	8
		_______	_______
		1,244	958
		_______	_______

			2012	2011
11.	Creditors: amounts falling due within one year		£'000	£'000
	(a)	Loans
		Foreign currency loans	15,164	9,918
		Sterling loans	2,500	1,500
			_______	_______
			17,664	11,418
			_______	_______
		At the year end HK$154,100,000 (2011 - HK$128,500,000), equivalent to £12,233,000 (2011 - £9,918,000), US$4,760,000 (2011 - US$nil), equivalent to £2,931,000 (2011 - £nil) and £2,500,000 (2011 - £1,500,000), was drawn down from the £30,000,000 facility with The Royal Bank of Scotland at an interest rate of 1.65%, 1.59% and 2.05% respectively, with a maturity date of 8 May 2012.
		At the date of signing of this report HK$154,100,000, US$8,680,000 and £2,500,000 was drawn down to 9 July 2012 at interest rates of 1.65%, 1.59% and 2.03% respectively.
		The terms of the bank loan with The Royal Bank of Scotland state that:
		·       the consolidated net tangible assets of the Company must be not less than £125 million at all times; and
		·       the ratio of gross borrowings to adjusted assets must be less than 25% at all times (adjusted assets are total gross assets less (i) the value in excess of 10% of total gross assets invested in the largest single security or asset; and (ii) the value in excess of 60% of total gross assets invested in the top twenty largest investments; and (iii) the value of all unlisted investments).
		The Company has met this covenant throughout the period and up to the date of this Report.
			2012	2011
	(b)	Other	£'000	£'000
		Amounts due to brokers	38	-
		Other creditors	391	498
			_______	_______
			429	498
			_______	_______

		2012	2011
12.	Called-up share capital	£'000	£'000
	Allotted, called up and fully paid:
	24,909,402 (2011 - 24,909,402) Ordinary shares of 25p each	6,227	6,227
	Held in treasury:
	477,731 (2011 - 477,731) Ordinary shares of 25p each	120	120
		_______	_______
		6,347	6,347
		_______	_______
	Shares held in treasury represent 1.92% of the Company's total issued share capital at 30 April 2012.
	The investment objective of the Company is to provide shareholders with a high level of capital growth through equity investment in the Asia Pacific countries ex Japan.
	The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance.
	The Board 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 level of equity shares in issue; 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.
	The Company does not have any externally imposed capital requirements.

		2012	2011
13.	Capital reserve	£'000	£'000
	At 1 May	176,685	147,708
	Movement in fair value gains	(7,168)	28,879
	Foreign exchange movement	(230)	948
	Expenses taken to capital	(932)	(850)
		_______	_______
	At 30 April	168,355	176,685
		_______	_______
	The capital reserve includes investment holding gains amounting to £127,258,000 (2011 - £139,643,000), as disclosed in note 9.

14.	Net asset value per share
	The net asset value per 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:
		2012	2011
	Net assets attributable (£'000)	225,908	232,406
	Number of Ordinary shares in issue (excluding shares held in treasury)	24,909,402	24,909,402
	Net asset value per share (p)	906.92	933.01

15.	Reconciliation of net return on ordinary activities before finance	2012	2011
	costs and taxation to net cash inflow from operating activities	£'000	£'000
	Net return on ordinary activities before finance costs and taxation	(2,887)	33,309
	Adjustment for:
	Losses/(gains) on investments held at fair value through profit or loss	7,168	(28,879)
	Exchange losses/(gains) charged to capital	230	(948)
	Increase in accrued income	(268)	(300)
	(Increase)/decrease in other debtors	(18)	6
	(Decrease)/increase in other creditors	(107)	107
	Scrip dividends included in investment income	(907)	(720)
		_______	_______
	Net cash inflow from operating activities	3,211	2,575
		_______	_______

		1 May	Cash	Exchange	30 April
		2011	flow	movements	2012
16.	Analysis of changes in net debt	£'000	£'000	£'000	£'000
	Cash at bank	2,982	(876)	(750)	1,356
	Debts falling due within one year	(11,418)	(6,766)	520	(17,664)
		_______	_______	_______	_______
	Net debt	(8,436)	(7,642)	(230)	(16,308)
		_______	_______	_______	_______

17.	Related party disclosures
	Mr H Young is a director of AAM Asia. AAM Asia has an agreement to provide management services and AAM has an agreement to provide marketing services to the Company, the terms of which are outlined in notes 3 and 4 respectively.
	During the course of the year, the Company has held investments in other funds managed by the same Manager. These holdings are disclosed in note 3.

18.	Financial instruments
	Risk management
	The Company's financial instruments comprise securities and other investments, cash balances, 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 Manager has a dedicated investment management process, which ensures that the investment policy is followed. Stock selection procedures are in place based on the active portfolio management and identification of stocks. The portfolio is reviewed on a periodic basis by a Senior Investment Manager and also by the Manager's Investment Committee.
	The Company's Manager has an independent investment risk department for reviewing the investment risk parameters of the Company's portfolio on a regular basis. The department reports to the Manager's performance review committee which is chaired by the Manager's chief investment officer. The department's responsibility is to review and monitor ex-ante (predicted) portfolio risk and style characteristics using best practice, industry standard multi-factor models.
	Additionally, the Manager's Compliance department continually monitors the Company's investment and borrowing powers and reports to the Manager's risk management committee.
	The main financial risks that the Company faces from its financial instruments are market price risk (comprising interest rate risk, currency risk and other price risk), liquidity risk and credit risk.
	The Board regularly reviews and agrees policies for managing each of these risks. The Manager's policies for managing these risks are summarised below and have been applied throughout the year. The numerical disclosures exclude short-term debtors and creditors.
	Market price risk
	The fair value of, or future cash flows from a financial instrument held by the Company may fluctuate because of changes in market prices. This market risk comprises three elements - interest rate risk, foreign currency risk and other price risk.
	Interest rate risk
	Interest rate movements may affect:
	·       the level of income receivable on cash deposits; and,
	·       interest payable on the Company's variable rate borrowings.
	The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account when making investment and borrowing decisions.
	Interest risk profile
	The interest rate risk profile of the portfolio of the Company's financial assets and liabilities, excluding equity holdings which are all non-interest bearing, at the Balance Sheet date was as follows:
					Weighted average
					period for which		Weighted average		Fixed		Floating
					rate is fixed		interest rate		rate		rate
	At 30 April 2012				Years		%		£'000		£'000
	Assets
	Sterling				-		0.43		-		718
	Taiwan Dollar				-		-		-		25
	US Dollar				-		0.01		-		613
					_______		_______		_______		_______
					n/a		n/a		-		1,356
					_______		_______		_______		_______
	Liabilities
	Bank loan - Sterling				0.09		2.05		2,500		-
	Bank loan - HK Dollar				0.09		1.65		12,233		-
	Bank loan - US Dollar				0.07		1.59		2,931		-
					_______		_______		_______		_______
					n/a		n/a		17,664		-
					_______		_______		_______		_______
					Weighted average
					period for which		Weighted average		Fixed		Floating
					rate is fixed		interest rate		rate		rate
	At 30 April 2011				Years		%		£'000		£'000
	Assets
	Australian Dollar				-		0.50		-		85
	Sterling				-		0.25		-		2,664
	Sri Lankan Rupee				-		-		-		16
	Taiwan Dollar				-		-		-		104
	Thailand Baht				-		-		-		113
					_______		_______		_______		_______
					n/a		n/a		-		2,982
					_______		_______		_______		_______
	Liabilities
	Bank loan - Sterling				0.25		1.52		1,500		-
	Bank loan - HK Dollar				0.25		0.99		9,918		-
					_______		_______		_______		_______
					n/a		n/a		11,418		-
					_______		_______		_______		_______
	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 maturity date of the Company's loan is shown in note 11.
	The floating rate assets consist of cash deposits on call earning interest at prevailing market rates.
	The Company's equity portfolio and short-term debtors and creditors (excluding bank loans) have been excluded from the above tables.
	Interest rate sensitivity
	Movements in interest rates would not significantly affect net assets attributable to the Company's shareholders and total profit.
		Foreign currency risk
		All of the Company's investment portfolio is invested in overseas securities and the Balance Sheet, therefore, 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 but the Company may, from time to time, match specific overseas investment with foreign currency borrowings. The Company's borrowings, as detailed in note 11, are also in foreign currency.
		The revenue account is subject to currency fluctuation arising on dividends paid in foreign currencies. The Company does not hedge this currency risk.
		Foreign currency exposure by currency of denomination:
			30 April 2012				30 April 2011
				Net		Total			Net		Total
			Overseas	monetary		currency	Overseas		monetary		currency
			investments	assets		exposure	investments		assets		exposure
			£'000	£'000		£'000	£'000		£'000		£'000
		Australian Dollar	13,305	-		13,305	11,726		85		11,811
		Hong Kong Dollar	50,574	(12,233)		38,341	43,523		(9,918)		33,605
		Indonesian Rupiah	2,803	-		2,803	2,607		-		2,607
		Korean Won	16,192	-		16,192	15,367		-		15,367
		Malaysian Ringgit	5,770	-		5,770	5,992		-		5,992
		Pakistan Rupee	-	-		-	269		-		269
		Philippine Peso	6,228	-		6,228	4,599		-		4,599
		Singapore Dollar	42,151	-		42,151	42,964		-		42,964
		Sri Lankan Rupee	6,130	-		6,130	7,866		16		7,882
		Sterling	58,775	(1,782)		56,993	67,772		1,164		68,936
		Taiwanese Dollar	13,900	25		13,925	11,767		104		11,871
		Thailand Baht	11,824	-		11,824	12,407		113		12,520
		US Dollar	13,749	(2,318)		11,431	13,523		-		13,523
			_______	_______		_______	_______		_______		_______
		Total	241,401	(16,308)		225,093	240,382		(8,436)		231,946
			_______	_______		_______	_______		_______		_______
		Foreign currency sensitivity
		The following table details the Company's sensitivity to a 10% increase and decrease 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.
									2012		2011
									£'000		£'000
		Australian Dollar							1,331		1,181
		Hong Kong Dollar							3,834		3,361
		Indonesian Rupiah							280		261
		Korean Won							1,619		1,537
		Malaysian Ringgit							577		599
		Pakistan Rupee							-		27
		Philippine Peso							623		460
		Singapore Dollar							4,215		4,296
		Sri Lankan Rupee							613		788
		Taiwanese Dollar							1,393		1,187
		Thailand Baht							1,182		1,252
		US Dollar							1,143		1,352
									_______		_______
									16,810		16,301
									_______		_______
		Other price risk
		Other price risks (ie changes in market prices other than those arising from interest rate or currency risk) may affect the value of the quoted investments.
		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. Both the allocation of assets and the stock selection process act to reduce market risk. The 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 various stock exchanges worldwide.
		Other price risk sensitivity
		If market prices at the Balance Sheet date had been 10% higher or lower while all other variables remained constant, the return attributable to Ordinary shareholders for the year ended 30 April 2012 would have increased/(decreased) by £24,140,000 (2011 increased/(decreased) by £24,038,000) and equity reserves would have increased/(decreased) by the same amount.
		Liquidity risk
		This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities.
		The Board imposes borrowing limits to ensure gearing levels are appropriate to market conditions and reviews these on a regular basis. Borrowings comprise a revolving multi-currency credit facility. The Board has imposed a maximum gearing level, measured on the most stringent basis of calculation after netting off cash equivalents, of 25%. Details of borrowings at 30 April 2012 are shown in note 11.
		Liquidity risk is not considered to be significant as the Company's assets comprise mainly readily realisable securities, which can be sold to meet funding commitments if necessary. Short-term flexibility is achieved through the use of the loan facility, details of which can be found in note 11. Under the terms of the loan facility, the Manager provides the lender with loan covenant reports on a monthly basis, to provide the lender with assurance that the terms of the facility are not being breached. The Manager will also review the credit rating of a lender on a regular basis. Details of the Board's policy on gearing are shown in the interest rate risk section of this note.
		Liquidity risk exposure
		At 30 April 2012 and 30 April 2011 the Company's bank loan, amounting to £17,664,000 and £11,418,000 respectively, was due for repayment or roll-over within two months of the year end.
		Credit risk
		This is the risk of failure of the counterparty to a transaction to discharge its obligations under that transaction that could result in the Company suffering a loss. The risk is not considered to be significant, and is actively managed as follows:
		·        investment transactions are carried out with a large number of brokers, whose credit-standing is reviewed periodically by the Investment Manager, and limits are set on the amount that may be due from any one broker;
		·        cash is held only with reputable banks with high quality external credit enhancements.
		Credit risk exposure
		In summary, compared to the amounts in the Balance Sheet, the maximum exposure to credit risk at 30 April was as follows:
						2012		2011
						Balance	Maximum	Balance		Maximum
						Sheet	exposure	Sheet		exposure
						£'000	£'000	£'000		£'000
		Non-current assets
		Investments at fair value through profit or loss				241,401	241,401	240,382		240,382
		Current assets
		Loans and receivables				1,244	1,244	958		958
		Cash at bank and in hand				1,356	1,356	2,982		2,982
						_______	_______	_______		_______
						244,001	244,001	244,322		244,322
						_______	_______	_______		_______
		None of the Company's financial assets is past due or impaired.
		Fair values of financial assets and financial liabilities
		For the HK$ loan, the fair value of borrowings has been calculated at £12,244,000 as at 30 April 2012 (2011 - £9,928,000) compared to an accounts value in the financial statements of £12,233,000 (2011 - £9,918,000) (note 11). For the US$ loan, the fair value of borrowings has been calculated at £2,933,000 as at 30 April 2012 (2011 - £nil) compared to an accounts value in the financial statements of £2,931,000 (2011 - £nil) (note 11). For the GBP loan, the fair value of borrowings has been calculated at £2,503,000 as at 30 April 2012 (2011 - £1,503,000) compared to an accounts value in the financial statements of £2,500,000 (2011 - £1,500,000) (note 11). The fair value of each loan is determined by aggregating the expected future cash flows for that loan discounted at a rate comprising the borrower's margin plus an average of market rates applicable to loans of a similar period of time and currency. All other assets and liabilities of the Company are included in the Balance Sheet at fair value.

19.	Fair value hierarchy
	FRS 29 'Financial Instruments: Disclosures' requires an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:
	Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
	Level 2: inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly (ie as prices) or indirectly (ie derived from prices); and
	Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
	All of the Company's investments are in quoted equities (2011 - same) actively traded on recognised stock exchanges, with their fair value being determined by reference to their quoted bid prices at the reporting date. The total value of the investments (2012 - £241,401,000; 2011 - £240,382,000) have therefore been deemed as Level 1.

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.

If approved, the proposed final dividend of 16.50p per share will be paid on 24 August 2012 to holders of Ordinary shares on the register at the close of business on 3 August 2012. The relevant ex-dividend date is 1 August 2012.

The Annual Financial Report Announcement is not the Company's statutory accounts. The above results for the year ended 30 April 2012 have been agreed with the auditors and are an abridged version of the Company's full accounts, which have been approved and audited with an unqualified report. The 2011 and 2012 statutory accounts received unqualified reports from the Company's auditors and did not include any reference to matters to which the auditors drew attention by way of emphasis without qualifying the reports, and did not contain a statement under s.498(2) or 498(3) of the Companies Act 2006.  The financial information for 2011 is derived from the statutory accounts for 2010 which have been delivered to the Registrar of Companies. The 2012 accounts will be filed with the Registrar of Companies in due course.

The Annual General Meeting of the Company will be held at 12.00 p.m. on 22 August 2012 at Bow Bells House, One Bread Street, London EC4M 9HH.

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

By order of the Board

Aberdeen Asset Management PLC - Secretary

2 July 2012

* Neither the Company's website nor the content of any website accessible from hyperlinks on it (or any other website) is (or is deemed to be) incorporated into, or forms (or is deemed to form) part of this announcement.

 

END

 

 

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