Half Yearly Report Announceme

RNS Number : 2590E

Aberdeen New Dawn Invest Trust PLC

16 December 2009

 



ABERDEEN NEW DAWN INVESTMENT TRUST PLC

HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 OCTOBER 2009

Interim Board Report

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

The following is the unaudited Interim Board Report for the six months ended 31 October 2009.

Results

During the six months to 31 October 2009, the net asset value of your Company rose by 34.4% to 654.6p, handsomely outperforming the benchmark MSCI AC Asia Pacific ex-Japan Index, which gained 24.9%. The share price rose by 30.2% to 574.0p, reflecting an expansion of the discount from 9.5% to 12.3%. Since the period end the net asset value has risen by 7.1% to 701.3p, the share price has increased by 11.8% to 642p and the discount has tightened to 8.5%. In line with normal practice, there will be no interim dividend and we shall recommend a final dividend at our financial year-end.

Directorate

The Board is very pleased to have announced the appointment of Mr Nicholas George and Mr John Lorimer as new independent non executive Directors of the Company, both with effect from 1 January 2010. Nicholas and John both have significant relevant business and financial expertise and an excellent working knowledge of the Far East. Their skill sets are particularly relevant to the Company and they will complement the existing strengths of the Board. The appointments are part of the process of refreshing the Company's Board that was initiated in 2006 and which we have updated shareholders regularly on since. As a result Richard Bradley will retire following the Annual General Meeting of the Company in August 2010.

Overview

Asian equities rebounded impressively during the six months under review, in a period marked by the return of risk appetite. Massive fiscal stimulus and loose monetary policy had helped global economies halt their downward spiral, which emboldened investors to return to equity markets with fervour, most notably those of emerging market countries, which had underperformed in 2008. The rally continued almost unabated for much of the review period, in stark contrast to the extreme risk aversion six months earlier when the credit crisis was at its worst. However, markets consolidated somewhat in October amid growing concerns that gains had outpaced fundamentals.

On the economic front, many countries started growing again after posting quarter-on-quarter improvements during the April-to-June period. These included the export-oriented economies of Hong Kong, Singapore, Korea and Taiwan. The recovery is not yet convincing though, as much of it has been due to government spending and inventory restocking, rather than the return of final private demand. Nevertheless, towards the end of the review period, the International Monetary Fund affirmed its belief that economic conditions had improved by raising its 2009 and 2010 growth forecasts for Asia.

Inflationary pressures remained largely benign, allowing central banks to keep interest rates at record lows. Price pressures have emerged in some quarters though, such as the commodities sector. Indeed, Australia became the first to raise rates in October in response to concerns that the buoyant export sector would begin to cause overheating in its domestic economy.  India too signalled a shift in policy stance when it ordered lenders to raise capital reserves amid rising wholesale prices. Singapore and Hong Kong, meanwhile, introduced measures to dampen down their property sectors amid worries of overheating.

Asia has not been immune from recent global events. Indeed, the crisis exposed the extent to which its economies and markets were dependent on foreign demand. However, the region has recovered much faster and with more conviction than the West, where the credit problems first surfaced. Your Company's well-diversified portfolio is tilted towards consumer-focused sectors that are beneficiaries of domestic or regional economic growth, which we believe will outpace expansion in the West. At the country level, we remain heavy in Singapore, which we believe to be the best-managed economy in Asia, and India, which offers well-managed companies operating in a wide variety of industries. The underweight to China is maintained, as your Manager has yet to identify more companies that meet its strict quality criteria relating to transparency and governance. China is an exciting growth story, nevertheless, and we have exposure to it through Hong Kong-domiciled companies doing business on the mainland.

Portfolio

During the review period, your Company's financial holdings, which include banks and real estate developers, as well as IT and industrial stocks benefited most from the rally, on expectations that credit conditions were improving. Additionally, real estate developers were buoyed by recovering property prices. Conversely, our consumer staples holdings lagged. 

Hong Kong, Singapore and India, where we are overweight, were major contributors to relative return. Our underweight to Korea also helped. 

At the stock level, Korean lenders Busan and Daegu performed well amid a decline in provisions and improving asset quality. Samsung Electronics' third-quarter profits tripled from a year earlier, helped by a recovery in the price of both memory chips and flat screens. The underweight to Korea added to gains, as the export-sensitive market lagged the region. The underweight to Taiwan bolstered relative return for the same reason. 

In Hong Kong, conglomerate Swire Pacific's real estate division gained from climbing property prices. Hopes of an economic recovery boosted Wing Hang Bank and Dah Sing Financial. ASM Pacific Technology did well too, as third-quarter earnings were lifted by pent-up demand. However, the Hong Kong dollar's relative weakness against sterling pared gains.

The overweight to Singapore also contributed positively, as the market was among the top performers. At the stock level, however, defensive holdings such as SingTel and ST Engineering lagged in the liquidity-driven rally, though United Overseas Bank and City Developments performed well.

Performance was also boosted by the overweight to India, where the Congress party's emphatic election victory reinforced hopes that much-needed economic reforms would be advanced. Core holdings in the Aberdeen Global-Indian Equity Fund, such as Infosys Technologies, Tata Consultancy Services and Godrej Consumer Products, did better than the MSCI India benchmark, further aided by healthy economic data.

Other holdings that did well include Thailand's Siam Cement, whose third-quarter results exceeded expectations due to higher petrochemical prices. The Philippines' Ayala Land rose sharply on the back of strong property prices, while UK-listed lender Standard Chartered's first-half earnings benefited from its exposure to emerging markets.

Conversely, the underweight to Australia and China were the biggest detractors to relative return. Not holding Australian lenders, such as Commonwealth Bank, Westpac, National Australia Bank and Australia & New Zealand Banking, hurt, as they rebounded strongly after having underperformed last year. The appreciating Australian dollar also proved negative for the Company. Nevertheless, we remain underweight to Australian companies because of their relatively expensive valuations and lower growth profiles compared with their Asian peers. 

Bank of China and China Construction Bank neither of which we hold performed well, as expectations towards a global recovery improved, thus hurting relative performance. Despite this, your Manager continues to avoid Chinese lenders on concerns that strong lending growth will eventually result in asset quality deterioration.

Other holdings that held back performance include consumer plays, such as UK-listed plantation stock MP Evans, pan-Asian retailer Dairy Farm and Korean discount store operator Shinsegae, all of which lagged in the market rally.

In portfolio activity, we introduced BHP Billiton, the Australian mining group whose London-listed shares trade at a discount to its Australian listing. The company's most recent production data proved encouraging and underscored its solid balance sheet, diversified resource base and low operating costs. We also topped up Australian general insurer QBE Insurance after it posted better-than-expected first-half results and as its relative valuation appeared attractive. 

Conversely, we trimmed our holdings in City Developments, Dah Sing Financial and UOB after their strong relative performance. We also divested Hong Kong Exchanges and Clearing after a strong run-up in its share price, as well as Pos Malaysia amid better investment opportunities elsewhere.

Gearing

On 4 May 2009 the Company utilized surplus cash to reduce the level of its gearing to HKD141 million by repaying HKD34.4 million. Accordingly, at the period end a total of HKD141 million remains drawn (representing approximately £11 million) under the facility representing 6.8% of the net assets.  

Outlook

The combination of low US interest rates and massive fiscal stimulus may support markets for some time. But governments cannot pursue loose monetary policy forever, and valuations in the Asia Pacific region are appearing expensive. Following India and Australia's example, policymakers elsewhere could start tightening policy to prevent overheating. 

At the economic level, prospects remain brighter than in the West. Unemployment in the US is at a 26-year high, while private demand shows no signs of picking up. The early withdrawal of stimulus measures could precipitate a relapse, particularly in Western economies, resulting in markets correcting. Still, Asia is in a much better shape to withstand shocks, having learnt from the experience of the 1997 Asian financial crisis. The region has healthy reserves, strong balance sheets and relatively low debt levels. Growing regional demand is also making up for stagnating Western growth.

The uncertain environment is likely to continue to present opportunities for the better-managed companies to consolidate their positions at the expense of weaker rivals. In this respect, your Manager remains confident in the ability of our holdings to produce good returns on capital over the long term.

Principal Risks and Uncertainties and Related Party Transactions

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

Ordinary Shares

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

Dividends

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

Borrowings

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

Market Risks

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

Foreign Exchange Risks

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

Taxation and Exchange Controls

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

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

Directors' Responsibilities

The Directors are responsible for preparing the half-yearly financial report in accordance with applicable law and regulations. The Directors confirm that to the best of their knowledge:

-    the condensed set of financial statements within the half-yearly financial report has been prepared in accordance with the statement "Half- Yearly Financial Reports" issued by the UK Accounting Standards Board; 

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

The half-yearly financial report for the six months to 31 October 2009 comprises the Interim Board Report, the Directors' Responsibility Statement and a condensed set of financial statements. 

Alan Henderson

Chairman

16 December 2009

  INCOME STATEMENT 

		Six months ended			Six months ended
		31 October 2009			31 October 2008
		(unaudited)			(unaudited)
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Gains/(losses) on investments		-	41,039	41,039	-	(56,724)	(56,724)
Income	2	2,500	-	2,500	2,875	-	2,875
Investment management fee		(314)	(314)	(628)	(285)	(285)	(570)
Administrative expenses		(294)	-	(294)	(311)	-	(311)
Exchange gains/(losses)		-	1,216	1,216	-	(2,708)	(2,708)
		_______	_______	_______	_______	_______	_______
Net return before finance costs and taxation		1,892	41,941	43,833	2,279	(59,717)	(57,438)
Interest payable and similar charges		(37)	(37)	(74)	(78)	(78)	(156)
		_______	_______	_______	_______	_______	_______
Net return on ordinary activities before taxation		1,855	41,904	43,759	2,201	(59,795)	(57,594)
Taxation on ordinary activities		(148)	98	(50)	(616)	102	(514)
		_______	_______	_______	_______	_______	_______
Return on ordinary activities after taxation		1,707	42,002	43,709	1,585	(59,693)	(58,108)
		_______	_______	_______	_______	_______	_______
Return per Ordinary share (pence):	4	6.85	168.62	175.47	6.36	(239.64)	(233.28)
		_______	_______	_______	_______	_______	_______

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

A Statement of Total Recognised Gains and Losses has not been prepared as all gains and losses have been reflected in the Income Statement.

All revenue and capital items in the above statement derive from continuing operations.

  INCOME STATEMENT (Cont'd)

		Year ended
		30 April 2009
		(audited)
		Revenue	Capital	Total
	Notes	£'000	£'000	£'000
Gains/(losses) on investments		-	(36,267)	(36,267)
Income	2	4,734	-	4,734
Investment management fee		(507)	(507)	(1,014)
Administrative expenses		(533)	-	(533)
Exchange gains/(losses)		-	(4,031)	(4,031)
		________	________	________
Net return before finance costs and taxation		3,694	(40,805)	(37,111)
Interest payable and similar charges		(149)	(149)	(298)
		________	________	________
Net return on ordinary activities before taxation		3,545	(40,954)	(37,409)
Taxation on ordinary activities		(934)	184	(750)
		________	________	________
Return on ordinary activities after taxation		2,611	(40,770)	(38,159)
		________	________	________
Return per Ordinary share (pence):	4	10.48	(163.67)	(153.19)
		________	________	________

  BALANCE SHEET

		As at	As at	As at
		31 October 2009	31 October 2008	30 April  2009
		(unaudited)	(unaudited)	(audited)
	Notes	£'000	£'000	£'000
Non-current assets
Investments at fair value through profit or loss		172,975	114,472	132,524
		________	________	________
Current assets
Debtors		178	225	1,085
Cash at bank and in hand		1,394	1,535	3,722
		________	________	________
		1,572	1,760	4,807
		________	________	________
Creditors: amounts falling due within one year
Foreign currency loans		(11,037)	(14,007)	(15,273)
Other creditors		(455)	(810)	(533)
		________	________	________
		(11,492)	(14,817)	(15,806)
		________	________	________
Net current liabilities		(9,920)	(13,057)	(10,999)
		________	________	________
Total assets less current liabilities		163,055	101,415	121,525
Provision for liabilities and charges		-	(25)	(186)
		________	________	________
Net assets		163,055	101,390	121,339
		________	________	________
Share capital and reserves
Called-up share capital		6,347	6,347	6,347
Share premium account		17,955	17,955	17,955
Special reserve		11,617	11,617	11,617
Capital redemption reserve		10,207	10,207	10,207
Capital reserve	5	110,044	49,119	68,042
Revenue reserve		6,885	6,145	7,171
		________	________	________
Equity Shareholders' funds		163,055	101,390	121,339
		________	________	________
Net asset value per Ordinary share (pence):	6	654.59	407.04	487.12
		________	________	________

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

Six months ended 31 October 2009 (unaudited)

			Share		Capital
		Share	premium	Special	redemption	Capital	Revenue
		capital	account	reserve	reserve	reserve	reserve	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 30 April 2009		6,347	17,955	11,617	10,207	68,042	7,171	121,339
Return on ordinary activities after taxation		-	-	-	-	42,002	1,707	43,709
Dividend paid (Final 2009 - 8.0p)	3	-	-	-	-	-	(1,993)	(1,993)
		______	_______	______	________	________	_______	______
Balance at 31 October 2009		6,347	17,955	11,617	10,207	110,044	6,885	163,055
		______	_______	______	________	________	_______	______
Six months ended 31 October 2008 (unaudited)
			Share		Capital
		Share	premium	Special	redemption	Capital	Revenue
		capital	account	reserve	reserve	reserve	reserve	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 30 April 2008		6,347	17,955	11,617	10,207	108,812	6,055	160,993
Return on ordinary activities after taxation		-	-	-	-	(59,693)	1,585	(58,108)
Dividend paid (Final 2008 - 6.0p)	3	-	-	-	-	-	(1,495)	(1,495)
		______	_______	______	________	________	_______	______
Balance at 31 October 2008		6,347	17,955	11,617	10,207	49,119	6,145	101,390
		______	_______	______	________	________	_______	______
Year ended 30 April 2009 (audited)
			Share		Capital
		Share	premium	Special	redemption	Capital	Revenue
		capital	account	reserve	reserve	reserve	reserve	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 30 April 2008		6,347	17,955	11,617	10,207	108,812	6,055	160,993
Return on ordinary activities after taxation		-	-	-	-	(40,770)	2,611	(38,159)
Dividend paid (Final 2008 - 6.0p)	3	-	-	-	-	-	(1,495)	(1,495)
		______	_______	______	________	________	_______	______
Balance at 30 April 2009		6,347	17,955	11,617	10,207	68,042	7,171	121,339
		______	_______	______	________	________	_______	______

CASH FLOW STATEMENT

		Six months ended	Six months ended	Year  ended
		31 October 2009	31 October 2008	30 April  2009
		(unaudited)	(unaudited)	(audited)
	Notes	£'000	£'000	£'000
Net return on ordinary activities before finance costs and taxation		43,833	(57,438)	(37,111)
Adjustment for:
(Gains)/losses on investments held at fair value through profit or loss		(41,039)	56,724	36,267
Exchange (gains)/losses charged to capital		(1,216)	2,708	4,031
Decrease/(increase) in accrued income		667	614	(34)
(Increase)/decrease in other debtors		(10)	6	18
Increase/(decrease) in creditors		106	(81)	(79)
Overseas withholding tax suffered		(168)	(146)	(176)
Scrip dividends included in investment income		(148)	(4)	(4)
		__________	__________	__________
Net cash inflow from operating activities		2,025	2,383	2,912
Net cash outflow from servicing of finance		(69)	(118)	(299)
Corporation tax paid		(261)	(157)	(439)
Net cash inflow/(outflow) from financial investment		990	(6,007)	(3,829)
Equity dividends paid	3	(1,993)	(1,495)	(1,495)
		__________	__________	__________
Net cash inflow/(outflow) before use of liquid resources and financing		692	(5,394)	(3,150)
Net cash (outflow)/inflow from financing		(2,954)	1,783	1,783
		__________	__________	__________
Decrease in cash		(2,262)	(3,611)	(1,367)
		__________	__________	__________
Reconciliation of net cash flow to movements in net debt
Decrease in cash as above		(2,262)	(3,611)	(1,367)
Repayment/(drawdown) of loan		2,954	(1,783)	(1,783)
Exchange movements		1,216	(2,708)	(4,031)
		__________	__________	__________
Movement in net debt in the period		1,908	(8,102)	(7,181)
Opening net debt		(11,551)	(4,370)	(4,370)
		__________	__________	__________
Closing net debt		(9,643)	(12,472)	(11,551)
		__________	__________	__________
Represented by:
Cash at bank		1,394	1,535	3,722
Debt falling due within one year		(11,037)	(14,007)	(15,273)
		__________	__________	__________
		(9,643)	(12,472)	(11,551)
		__________	__________	__________

  Notes to the Accounts

1.	Accounting policies
	(a)	Basis of accounting
		The accounts have been prepared in accordance with applicable UK Accounting Standards, with pronouncements on Half-Yearly Reporting issued by the Accounting Standards Board and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' issued in January 2009. The adoption of the January 2009 SORP has no effect on the financial statements of the Company, other than the requirement separately to disclose capital reserves that relate to the revaluation of investments held at the reporting date. These are disclosed in note 5. This new requirement replaces the previous requirement to disclose the value of the capital reserve that was unrealised. They have also been prepared on the assumption that approval as an investment trust will continue to be granted. The financial statements have been prepared on a going concern basis.
		The financial statements and the net asset value per share figures have been prepared in accordance with UK Generally Accepted Accounting Practice ('UK GAAP').
		The half-yearly financial statements have been prepared using the same accounting policies as the preceding annual accounts.
	(b)	Dividends payable
		Dividends are recognised in the period in which they are paid.
	(c)	Valuation of investments
		Listed investments have been designated upon initial recognition as fair value through profit or loss. Investments are recognised and de-recognised on the trade date at cost. Subsequent to initial recognition, investments are valued at fair value which for listed investments is deemed to be bid market prices. Gains and losses arising from changes in fair value are included as a capital item in the Income Statement and are ultimately recognised in the capital reserve.
	(d)	Capital reserves
		Gains or losses on realisation of investments and changes in fair values of investments which are readily convertible to cash, without accepting adverse terms, are transferred to the capital reserve. The capital element of the management fee and relevant finance costs are charged to this reserve. Any associated tax relief is also credited to this reserve.
	(e)	Allocation of expenses
		Expenses are charged to capital when they are incurred in connection with the maintenance or enhancement of the value of investments. In this respect the investment management fee and relevant finance costs are allocated between revenue and capital in line with the Board's expectation of returns from the Company's investments over the long term in the form of revenue and capital respectively.

		Six months ended	Six months ended	Year ended
		31 October 2009	31 October 2008	30 April 2009
2.	Income	£'000	£'000	£'000
	Income from investments
	UK dividend income	134	164	372
	Overseas dividends	2,195	2,591	4,209
	Scrip dividends	148	4	4
		__________	__________	__________
		2,477	2,759	4,585
		__________	__________	__________
		Six months ended	Six months ended	Year ended
		31 October 2009	31 October 2008	30 April 2009
		£'000	£'000	£'000
	Other income
	Deposit interest	3	86	111
	Stock lending income	-	30	30
	Underwriting commission	20	-	8
		__________	__________	__________
		23	116	149
		__________	__________	__________
	Total income	2,500	2,875	4,734
		__________	__________	__________

3.	Dividends
	Ordinary dividends on equity shares deducted from reserves are analysed below:
		Six months ended	Six months ended	Year ended
		31 October 2009	31 October 2008	30 April 2009
		£'000	£'000	£'000
	2008 final dividend - 6.0p	-	1,495	1,495
	2009 final dividend - 8.0p	1,993	-	-
		__________	__________	__________
		1,993	1,495	1,495
		__________	__________	__________
	In accordance with stated policy no interim dividend has been declared for the period (2008 - nil).

		Six months ended	Six months ended	Year ended
		31 October 2009	31 October 2008	30 April 2009
4.	Return per Ordinary share	p	p	p
	Revenue return	6.85	6.36	10.48
	Capital return	168.62	(239.64)	(163.67)
		__________	__________	__________
	Total return	175.47	(233.28)	(153.19)
		__________	__________	__________
	The figures above are based on the following attributable assets:
		£'000	£'000	£'000
	Revenue return	1,707	1,585	2,611
	Capital return	42,002	(59,693)	(40,770)
		__________	__________	__________
	Total return	43,709	(58,108)	(38,159)
		__________	__________	__________
	Weighted average number of Ordinary shares in issue	24,909,402	24,909,402	24,909,402
		__________	__________	__________

5.	Capital reserve
	The capital reserve reflected in the Balance Sheet at 31 October 2009 includes gains of £83,454,000 (31 October 2008 - gains of £24,476,000; 30 April 2009 - gains of £43,666,000) which relate to the revaluation of investments held at the reporting date.

		As at	As at	As at
6.	Net asset value per share	31 October 2009	31 October 2008	30 April 2009
	Attributable net assets (£'000)	163,055	101,390	121,339
	Number of Ordinary shares in issue	24,909,402	24,909,402	24,909,402
	Net asset value per Ordinary share (p)	654.59	407.04	487.12

7.	Transaction costs
	During the six months ended 31 October 2009 expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. These have been expensed through capital and are included within gains/(losses) on investments in the Income Statement. The total costs were as follows:
		Six months ended	Six months ended	Year ended
		31 October 2009	31 October 2008	30 April 2009
		£'000	£'000	£'000
	Purchases	18	52	63
	Sales	23	15	46
		__________	__________	__________
		41	67	109
		__________	__________	__________

8.	Related party transactions
	Mr H Young is a director of Aberdeen Asset Management Asia Limited ('AAM Asia'), which is a subsidiary of Aberdeen Asset Management PLC ('AAM'). AAM Asia has an agreement to provide management services to the Company and AAM has an agreement to provide marketing services to the Company.
	The management fee is payable monthly in arrears based on an annual amount of 1% of the net asset value of the Company valued monthly. During the period £628,000 (2008 - £570,000) of management fees were paid and payable, with a balance of £228,000 (2008 - £157,000) being payable to AAM Asia at the period end.
	The investment management fees are charged 50% to revenue and 50% to capital.
	The marketing fee is based on a current annual amount of £86,000, payable quarterly in arrears. During the period £43,000 (2008 - £63,000) of fees were paid and payable, with a balance of £7,000 (2008 - £11,000) being payable to AAM at the period end.

9.	The financial information contained in this Half-Yearly Financial Report does not constitute statutory accounts as defined in Sections 434 - 436 of the Companies Act 2006. The financial information for the six months ended 31 October 2009 and 31 October 2008 have not been audited.
	The information for the year ended 30 April 2009 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies. The report of the auditors on those accounts contained no qualification or statement under Section 498 (2), (3) or (4) of the Companies Act 2006.

10.	This Half-Yearly Report was approved by the Board on 16 December 2009.
	The Half-Yearly Financial Report will be posted to shareholders in early January 2010 and available thereafter from the Company's website (www.newdawn-trust.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.

For Aberdeen New Dawn Investment Trust PLC

Aberdeen Asset Management PLC

Secretaries

16 December 2009

Investment Portfolio
By value at 31 October 2009
				Valuation		Total assets
Company		Country		£'000		%
Aberdeen Global Indian Equity Fund		India		23,569		13.6
Oversea-Chinese Banking Corporation		Singapore		6,975		4.0
Samsung Electronics Pref		South Korea		6,897		4.0
Jardine Strategic Holdings		Hong Kong		6,823		3.9
Standard Chartered		Hong Kong		6,684		3.9
Swire Pacific 'B'		Hong Kong		6,598		3.8
Rio Tinto		Australia		6,365		3.7
QBE Insurance Group		Australia		6,077		3.5
PetroChina		China		5,448		3.1
United Overseas Bank		Singapore		5,334		3.1
Top ten investments				80,770		46.6
City Developments		Singapore		5,114		2.9
Singapore Technologies Engineering		Singapore		4,928		2.8
PTT Exploration and Production		Thailand		4,562		2.6
Singapore Telecommunications		Singapore		4,559		2.6
Taiwan Semiconductor Manufacturing Company		Taiwan		4,365		2.5
China Mobile		China		4,023		2.3
Siam Cement		Thailand		3,742		2.1
Sun Hung Kai Properties		Hong Kong		3,566		2.0
Ayala Land		Philippines		3,345		1.9
Unilever Indonesia		Indonesia		3,142		1.8
Top twenty investments				122,116		70.1
Aberdeen Asian Smaller Companies Inv. Trust		Other Asia		3,087		1.8
ASM Pacific Technology		Hong Kong		2,979		1.7
Public Bank Berhad		Malaysia		2,967		1.7
Hang Lung Properties		Hong Kong		2,911		1.7
Venture Corp		Singapore		2,745		1.6
Hang Lung Group		Hong Kong		2,724		1.6
Taiwan Mobile		Taiwan		2,719		1.6
Dairy Farm International		Hong Kong		2,692		1.5
Fraser & Neave Limited		Singapore		2,570		1.5
BHP Billiton		Australia		2,515		1.5
Top thirty investments				150,025		86.3
CIMB Group		Malaysia		2,485		1.4
Singapore Airlines		Singapore		2,480		1.4
Wing Hang Bank		Hong Kong		2,416		1.4
Shinsegae Company		South Korea		2,132		1.2
New India Inv. Trust		India		1,955		1.1
Busan Bank		South Korea		1,713		1.0
M.P. Evans Group		Indonesia		1,693		1.0
Dah Sing Financial		Hong Kong		1,451		0.8
Multi Bintang Indonesia		Indonesia		1,425		0.8
Aitken Spence & Co.		Sri Lanka		1,412		0.8
Top forty investments				169,187		97.2
Daegu Bank		South Korea		985		0.6
DFCC Bank		Sri Lanka		713		0.4
John Keells Holdings		Sri Lanka		683		0.4
Giordano International		Hong Kong		607		0.3
National Development Bank		Sri Lanka		436		0.3
BOC Pakistan		Pakistan		364		0.2
Total investments				172,975		99.4
Net current assets {A}				1,117		0.6
Total assets				174,092		100.0
{A} Excluding bank loans of £11,037,000.
Note: Unless otherwise stated, foreign stock is held and all investments are equity holdings.

  Independent Review Report to

Aberdeen New Dawn Investment Trust PLC

Introduction

We have been engaged by the Company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 31 October 2009 which comprises the Condensed Income Statement, Condensed Balance Sheet, Reconciliation of Movements in Shareholders' funds, Condensed Cash Flow Statement and the related explanatory notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with the terms of our engagement to assist the Company in meeting the requirements of the Disclosure and Transparency Rules ("the DTR") of the UK's Financial Services Authority ("the UK FSA"). Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached.

Directors' Responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FSA.  

As disclosed in note 1, the annual financial statements of the Company are prepared in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice). The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with the Statement 'Half-Yearly Financial Reports' as issued by the UK Accounting Standards Board.

Our Responsibility

Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.  

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Review Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 31 October 2009 is not prepared, in all material respects, in accordance with the Statement 'Half-Yearly Financial Reports' as issued by the UK Accounting Standards Board and the DTR of the UK FSA.  

Gareth Horner 

For and on behalf of KPMG Audit Plc 

Chartered Accountants 

Edinburgh 

16 December 2009

 

END

 

 

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