Half Yearly Report

RNS Number : 0327Y

Aberdeen New Dawn Invest Trust PLC

15 December 2010

 



ABERDEEN NEW DAWN INVESTMENT TRUST PLC

HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 OCTOBER 2010

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 2010.

Results

During the six months to 31 October 2010, the net asset value per share of your Company rose by 12.0% to 907.8p, significantly outperforming the benchmark MSCI AC Asia Pacific ex-Japan Index, which gained 2.7%. The share price rose by 20.9% to 875.0p, reflecting a narrowing of the discount from 10.8% to 3.6%.

Since the period end, the net asset value has risen by 3.6% to 940.36p, the share price has increased by 2.5% to 896.50p and the discount has widened to 4.9%. In line with normal practice, there will be no interim dividend and we shall recommend a final dividend at our financial year-end.

Directorate

As shareholders will be aware from the Chairman's Statement in the last Annual Report, Nicholas George and John Lorimer were elected Directors of the Company at the Annual General Meeting held on 25 August 2010, having been appointed on 1 January 2010. Richard Bradley, who retired from the Board at the conclusion of the AGM, was succeeded in his role as Chairman of the Nomination Committee by Nicholas George.

Overview

Asian equities posted solid gains during the six months under review. Improving economic fundamentals boosted sentiment, while loose monetary conditions worldwide provided further fuel. Ongoing fears of the European debt crisis initially weighed on share prices, while China's policy tightening measures in response to overheating asset classes also depressed stockmarkets. Towards the end of the review period, however, expectations that the US Federal Reserve would launch a second round of quantitative easing to revitalise the weak US economy calmed market jitters. The Federal Reserve has since confirmed that it will support the economy via the purchase of US$600 billion-worth of Treasuries. 

Looking at the region as a whole, growth remained generally healthy: China's economy continued to perform strongly. Chinese demand has driven intra-regional trade and appears to have compensated for the slowdown in Asia's exports to developed economies. But the brisk pace of expansion had also been accompanied by simmering risks: rising inflationary pressures in the fast-growing economies and frothy property markets in China, Hong Kong and Singapore. In addition, the region saw a leap in foreign inflows over the period, which led most regional currencies to appreciate.

Policymakers across the region have reacted swiftly, implementing a raft of necessary measures to address these risks. China unexpectedly raised interest rates for the first time in nearly three years, while other central banks in India, Australia, Malaysia, South Korea, Taiwan and Thailand have responded with interest rate increase at least once. To curb the flood of hot money, Thailand restored a 15% withholding tax on foreign ownership of domestic bonds, while South Korea also reintroduced a similar tax at the time of writing. Currency intervention also took centre stage, with China indicating its openness to the internationalisation of the yuan, although it remains to be seen how substantive this will be.

Portfolio

During the review period, your Company's financial holdings, which include banks and real estate developers, benefited most from the stockmarket rally, as soaring property prices helped developers and lenders alike.

The underweight to Australia contributed positively to relative performance, as the Reserve Bank of Australia's decision to increase interest rates hurt sentiment, while the overweight to Hong Kong and India also helped, thanks to solid corporate earnings and robust economic data. Your Company's exposure to the Aberdeen Asian Smaller Companies Fund contributed as well, as the asset class generally outperformed its large cap counterpart during the period.

At the stock level, Jardine Strategic was the main contributor to relative return, having posted solid first-half results that were driven by all its underlying businesses, including Hong Kong Land, Dairy Farm and Indonesia's Astra International. Despite its robust performance, the conglomerate remains reasonably valued. In Australia, Rio Tinto gained from expectations of higher iron ore prices, amid rising steel demand in China and the shift away from long-term contract pricing. The Australian government's watered down version of the proposed 40% resources tax with a lower levy also helped sentiment. Meanwhile, our holdings in Sri Lanka rose in line with the domestic market, which continued its post-civil war rebound.

On the other hand, holdings that disappointed included QBE Insurance, whose share price fell after the insurer lowered its profit forecast because of rising claim liabilities and a fall in investment returns. Your Manager does not think these issues impact the long-term attractiveness of the company. Holdings in the electronics sector, which include ASM Pacific, TSMC, Venture Corp and Samsung Electronics, were affected by an anticipated correction in the inventory cycle.

The interim period saw the introduction of two stocks, both listed in Hong Kong - Li & Fung, a well-run trading company with sound financials and good corporate governance, as well as life insurer AIA, the market leading Asian arm of American International Group, which should benefit from rising demand for life insurance in the region.

Gearing

At the beginning of the six-month period ended 31 October 2010, the Company had gearing of HKD128.5 million (equivalent to GBP10.4 million) drawn under its multicurrency credit facility with Royal Bank of Scotland. During that period, it drew an additional GBP1.5 million (equivalent to HKD18.6 million). At the end of the period, and at the time of writing, these amounts remain drawn under the facility (representing approximately £11.9 million, or 5.2% of the net assets).  At the end of the period, the Company held a cash balance equivalent to GBP3.178 million, resulting in net gearing of 3.8%.

Outlook

Capital is expected to continue to flow eastwards in the short term, given the Fed's second round of quantitative easing and generally low interest rates in the developed economies, which will reinforce Asia's appeal to investors. However, your Manager remains cautious with regard to the repercussions this may have on the region's economic growth in the medium term. The flood of money could intensify the upward pressure on Asian currencies and hurt export competitiveness. Central banks, especially those in countries that are directly competing with China, may be compelled to intervene to keep their currencies weak in order to compete with China's artificially cheap yuan. A damaging round of beggar-thy-neighbour currency interventions cannot be ruled out. Compounding policymakers' dilemma is the challenge of taming accelerating inflation without choking economic growth. 

While valuations in Asian stockmarkets as a whole are now "reasonable" as opposed to "cheap", the extremely healthy returns over the course of 2009 and 2010 are simply a reflection of the improving prospects of Asian companies. On that note, more merger and acquisition (M&A) activity can be expected in the near term, judging from the rising trend in intra-Asia M&A deals that reflect a greater confidence in Asia's macroeconomic growth and stability.

On the whole, Asian economies are generally in good health, in contrast to some Western developed nations, as evidenced by Ireland's recent debt crisis. Notably, lending activity is growing and domestic consumer demand is strong, unburdened by high levels of debt, although recent signs have pointed to a slowdown in regional expansion. In such an environment, the Board believes your Manager's conservative approach of investing in high-quality companies should continue to benefit investors 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 Company may purchase investments that may be subject to exchange controls or withholding taxes in various jurisdictions. In the event that exchange controls or withholding taxes are imposed with respect to any of the Company's investments, the effect will generally be to reduce the income received by the Company on its investments and the capital value of the affected investments.

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

Directors' Responsibilities

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

-      the condensed set of Financial Statements within the Half-Yearly Financial Report has been prepared in accordance with the statement "Half- Yearly Financial Reports" issued by the UK Accounting Standards Board;

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

The Half-Yearly Financial Report for the six months to 31 October 2010 comprises the Interim Board Report, the Directors' Responsibility Statement and a condensed set of Financial Statements.

Alan Henderson

Chairman

15 December 2010

INCOME STATEMENT

		Six months ended			Six months ended
		31 October 2010			31 October 2009
		(unaudited)			(unaudited)
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Gains on investments		-	24,137	24,137	-	41,039	41,039
Income	2	3,371	-	3,371	2,500	-	2,500
Investment management fee		(368)	(368)	(736)	(314)	(314)	(628)
Administrative expenses		(359)	-	(359)	(294)	-	(294)
Exchange gains		-	467	467	-	1,216	1,216
		_______	_______	_______	_______	_______	_______
Net return before finance costs and taxation		2,644	24,236	26,880	1,892	41,941	43,833
Interest payable and similar charges		(27)	(27)	(54)	(37)	(37)	(74)
		_______	_______	_______	_______	_______	_______
Net return on ordinary activities before taxation		2,617	24,209	26,826	1,855	41,904	43,759
Taxation on ordinary activities		(183)	-	(183)	(148)	98	(50)
		_______	_______	_______	_______	_______	_______
Return on ordinary activities after taxation		2,434	24,209	26,643	1,707	42,002	43,709
		_______	_______	_______	_______	_______	_______
Return per Ordinary share (pence)	4	9.77	97.19	106.96	6.85	168.62	175.47
		_______	_______	_______	_______	_______	_______

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 2010
		(audited)
		Revenue	Capital	Total
	Notes	£'000	£'000	£'000
Gains on investments		-	80,079	80,079
Income	2	4,372	-	4,372
Investment management fee		(693)	(693)	(1,386)
Administrative expenses		(597)	-	(597)
Exchange gains		-	352	352
		________	________	________
Net return before finance costs and taxation		3,082	79,738	82,820
Interest payable and similar charges		(72)	(72)	(144)
		________	________	________
Net return on ordinary activities before taxation		3,010	79,666	82,676
Taxation on ordinary activities		(53)	-	(53)
		________	________	________
Return on ordinary activities after taxation		2,957	79,666	82,623
		________	________	________
Return per Ordinary share (pence)	4	11.87	319.82	331.69
		________	________	________

BALANCE SHEET

		As at	As at	As at
		31 October 2010	31 October 2009	30 April 2010
		(unaudited)	(unaudited)	(audited)
	Notes	£'000	£'000	£'000
Non-current assets
Investments at fair value through profit or loss		236,182	172,975	208,487
		________	________	________
Current assets
Debtors		749	178	965
Cash at bank and in hand		3,178	1,394	3,721
		________	________	________
		3,927	1,572	4,686
		________	________	________
Creditors: amounts falling due within one year
Multicurrency loans		(11,868)	(11,037)	(10,813)
Other creditors		(2,120)	(455)	(391)
		________	________	________
		(13,988)	(11,492)	(11,204)
		________	________	________
Net current liabilities		(10,061)	(9,920)	(6,518)
		________	________	________
Net assets		226,121	163,055	201,969
		________	________	________
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	171,917	110,044	147,708
Revenue reserve		8,078	6,885	8,135
		________	________	________
Equity shareholders' funds		226,121	163,055	201,969
		________	________	________
Net asset value per Ordinary share (pence)	6	907.77	654.59	810.81
		________	________	________

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

Six months ended 31 October 2009 (unaudited)

Six months ended 31 October 2010 (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 2010		6,347	17,955	11,617	10,207	147,708	8,135	201,969
Return on ordinary activities after taxation		-	-	-	-	24,209	2,434	26,643
Dividend paid (Final 2010 - 10.0p)	3	-	-	-	-	-	(2,491)	(2,491)
		______	_______	______	________	________	_______	______
Balance at 31 October 2010		6,347	17,955	11,617	10,207	171,917	8,078	226,121
		______	_______	______	________	________	_______	______
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
		______	_______	______	________	________	_______	______
Year ended 30 April 2010 (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 2009		6,347	17,955	11,617	10,207	68,042	7,171	121,339
Return on ordinary activities after taxation		-	-	-	-	79,666	2,957	82,623
Dividend paid (Final 2009 - 8.0p)	3	-	-	-	-	-	(1,993)	(1,993)
		______	_______	______	________	________	_______	______
Balance at 30 April 2010		6,347	17,955	11,617	10,207	147,708	8,135	201,969
		______	_______	______	________	________	_______	______

CASH FLOW STATEMENT

		Six months ended	Six months ended	Year ended
		31 October 2010	31 October 2009	30 April 2010
		(unaudited)	(unaudited)	(audited)
	Notes	£'000	£'000	£'000
Net return on ordinary activities before finance costs and taxation		26,880	43,833	82,820
Adjustment for:
Gains on investments held at fair value through profit or loss		(24,137)	(41,039)	(80,079)
Exchange gains charged to capital		(467)	(1,216)	(352)
Decrease in accrued income		282	667	178
Increase in other debtors		(38)	(10)	(11)
Increase in creditors		6	106	124
Overseas withholding tax suffered		(183)	(168)	(239)
Stock and Scrip dividends included in investment income		(565)	(148)	(271)
		__________	__________	__________
Net cash inflow from operating activities		1,778	2,025	2,170
Net cash outflow from servicing of finance		(66)	(69)	(149)
Corporation tax paid		-	(261)	(261)
Net cash (outflow)/inflow from financial investment		(1,286)	990	4,340
Equity dividends paid	3	(2,491)	(1,993)	(1,993)
		__________	__________	__________
Net cash (outflow)/inflow before use of liquid resources and financing		(2,065)	692	4,107
Net cash inflow/(outflow) from financing		1,500	(2,954)	(2,954)
		__________	__________	__________
(Decrease)/increase in cash		(565)	(2,262)	1,153
		__________	__________	__________
Reconciliation of net cash flow to movements in net debt
(Decrease)/increase in cash as above		(565)	(2,262)	1,153
(Drawdown)/repayment of loan		(1,500)	2,954	2,954
Exchange movements		467	1,216	352
		__________	__________	__________
Movement in net debt in the period		(1,598)	1,908	4,459
Opening net debt		(7,092)	(11,551)	(11,551)
		__________	__________	__________
Closing net debt		(8,690)	(9,643)	(7,092)
		__________	__________	__________
Represented by:
Cash at bank		3,178	1,394	3,721
Debt falling due within one year		(11,868)	(11,037)	(10,813)
		__________	__________	__________
		(8,690)	(9,643)	(7,092)
		__________	__________	__________

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. 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 2010	31 October 2009	30 April 2010
2.	Income	£'000	£'000	£'000
	Income from investments
	UK dividend income	331	134	378
	Overseas dividends	2,472	2,195	3,708
	Stock dividends	218	148	271
	Scrip dividends	347	-	-
		__________	__________	__________
		3,368	2,477	4,357
		__________	__________	__________
		Six months ended	Six months ended	Year ended
		31 October 2010	31 October 2009	30 April 2010
		£'000	£'000	£'000
	Other income
	Deposit interest	3	3	-
	Underwriting commission	-	20	15
		__________	__________	__________
		3	23	15
		__________	__________	__________
	Total income	3,371	2,500	4,372
		__________	__________	__________

3.	Dividends
	Ordinary dividends on equity shares deducted from reserves are analysed below:
		Six months ended	Six months ended	Year ended
		31 October 2010	31 October 2009	30 April 2010
		£'000	£'000	£'000
	2009 final dividend - 8.0p	-	1,993	1,993
	2010 final dividend - 10.0p	2,491	-	-
		__________	__________	__________
		2,491	1,993	1,993
		__________	__________	__________
	In accordance with stated policy no interim dividend has been declared for the period (2009 - nil).

			Six months ended	Six months ended	Year ended
			31 October 2010	31 October 2009	30 April 2010
4.	Return per Ordinary share		p	p	p
	Revenue return		9.77	6.85	11.87
	Capital return		97.19	168.62	319.82
			__________	__________	__________
	Total return		106.96	175.47	331.69
			__________	__________	__________
	The figures above are based on the following attributable assets:
		£'000		£'000	£'000
	Revenue return	2,434		1,707	2,957
	Capital return	24,209		42,002	79,666
		__________		__________	__________
	Total return	26,643		43,709	82,623
		__________		__________	__________
	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 2010 includes gains of £138,469,000 (31 October 2009 - gains of £83,454,000; 30 April 2010 - gains of £118,658,000) 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 2010	31 October 2009	30 April 2010
	Attributable net assets (£'000)	226,121	163,055	201,969
	Number of Ordinary shares in issue	24,909,402	24,909,402	24,909,402
	Net asset value per Ordinary share (p)	907.77	654.59	810.81

7.	Transaction costs
	During the six months ended 31 October 2010 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 on investments in the Income Statement. The total costs were as follows:
		Six months ended	Six months ended	Year ended
		31 October 2010	31 October 2009	30 April 2010
		£'000	£'000	£'000
	Purchases	37	18	30
	Sales	20	23	42
		__________	__________	__________
		57	41	72
		__________	__________	__________

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 £736,000 (2009 - £628,000) of management fees were paid and payable, with a balance of £265,000 (2009 - £228,000) being payable to AAM Asia at the period end.
	The investment management fees are charged 50% to revenue and 50% to capital.
	During the course of the period, the Company has held investments in three other funds managed by the same Manager. These holdings are disclosed in the Investment Portfolio table on page 5.
	The marketing fee is based on a current annual amount of £111,000, payable quarterly in arrears. During the period £53,000 (2009 - £43,000) of fees were paid and payable, with a balance of £19,000 being prepaid to AAM at the period end (2009 - £7,000 payable).

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 2010 and 31 October 2009 have not been audited.
	The information for the year ended 30 April 2010 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 Financial Report was approved by the Board on 15 December 2010. The Half-Yearly Report will be shortly be available from the Company's website (www.newdawn-trust.co.uk) and will be posted to shareholders in December 2010.

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

Secretary

15 December 2010

	Investment Portfolio
	By value at 31 October 2010
			Valuation	Total assets
Company		Country	£'000	%
Aberdeen Global - Indian Equity Fund{A}		India	33,381	14.0
Rio Tinto		Australia	9,540	4.0
Oversea-Chinese Banking Corporation		Singapore	9,290	3.9
Jardine Strategic Holdings		Singapore	9,265	3.9
Samsung Electronics Pref		South Korea	8,576	3.6
Standard Chartered		Hong Kong	8,335	3.5
Swire Pacific 'B'		Hong Kong	7,900	3.3
City Developments		Singapore	6,813	3.0
United Overseas Bank		Singapore	6,705	2.8
Singapore Telecommunication		Singapore	6,698	2.8
Top ten investments			106,503	44.8
QBE Insurance Group		Australia	6,678	2.8
Taiwan Semiconductor Manufacturing Company		Taiwan	6,621	2.8
Singapore Technologies Engineering		Singapore	6,398	2.7
PTT Exploration & Production		Thailand	6,225	2.6
Siam Cement		Thailand	5,806	2.4
Aberdeen Asian Smaller Companies Inv. Trust{A}		Other Asia	5,697	2.4
Petrochina		China	5,522	2.3
BHP Billiton		Australia	5,312	2.2
Ayala Land		Philippines	4,850	2.0
Aitken Spence & Co.		Sri Lanka	4,662	2.0
Top twenty investments			164,274	69.0
China Mobile		China	4,427	1.9
Sun Hung Kai Properties		Hong Kong	4,053	1.7
Public Bank Berhad		Malaysia	4,002	1.7
Unilever Indonesia		Indonesia	3,873	1.6
CIMB Group		Malaysia	3,733	1.6
Hang Lung Group		Hong Kong	3,625	1.5
Dairy Farm International		Hong Kong	3,593	1.5
Taiwan Mobile		Taiwan	3,466	1.5
Hang Lung Properties		Hong Kong	3,431	1.4
AIA Group		Hong Kong	3,383	1.4
Top thirty investments			201,860	84.8
Woolworths		Australia	3,294	1.4
Singapore Airlines		Singapore	3,210	1.3
Venture Corp		Singapore	3,045	1.3
ASM Pacific Technologies		Hong Kong	2,993	1.3
New India Inv. Trust {A}		India	2,984	1.3
Wing Hang Bank		Hong Kong	2,942	1.2
Shinsegae Company		South Korea	2,555	1.1
M.P. Evans Group		Indonesia	2,349	1.0
DFCC Bank		Sri Lanka	2,335	1.0
Busan Bank		South Korea	1,896	0.8
Top forty investments			229,463	96.5
Dah Sing Financial		Hong Kong	1,810	0.8
John Keells Holdings		Sri Lanka	1,525	0.6
Li & Fung		Hong Kong	1,134	0.5
Daegu Bank		South Korea	1,104	0.5
National Development Bank		Sri Lanka	921	0.4
BOC Pakistan		Pakistan	225	0.1
Total investments			236,182	99.4
Net current assets {B}			1,807	0.6
Total assets			237,989	100.0
{A} Managed by the Manager of the Company.
{B} Excluding bank loans of £11,868,000.
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 2010 which comprises the Income Statement, Balance Sheet, the Reconciliation of Movements in Shareholder's Funds, Cash Flow Statement and the related explanatory notes. We have read the other information contained in the Half-Yearly Financial Report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the Company in accordance with the terms of our engagement to assist the Company in meeting the requirements of the Disclosure and Transparency Rules ("the DTR") of the UK's Financial 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 2010 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

15 December 2010

 

END

 

 

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