Half-year Report

RNS Number : 4976I

Aberdeen New India Invest Trust PLC

05 December 2022

 

Aberdeen New India Investment Trust PLC

Half Yearly Report 30 September 2022

Seeking world-class, well governed companies at the heart of India's growth

Performance Highlights

Performance (total return in Sterling terms)

	Six months ended	Year ended
	30 September 2022	31 March 2022
	%	%
Share price A	+2.8	+3.7
Net asset value per Ordinary Share A	+5.9	+11.2
Adjusted net asset value per Ordinary Share A	+6.0	N/A
MSCI India Index (Sterling adjusted)	+8.9	+23.9
A Considered to be an Alternative Performance Measure.
Source: abrdn, Morningstar & Factset

Performance (total return in Sterling terms) for year(s) ended 30 September 2022

	1 year	3 year	5 year	10 year
	% return	% return	% return	% return
Share priceA	-12.2	+17.0	+30.0	+163.3
Net asset value per Ordinary ShareA	-1.0	+30.8	+50.4	+193.2
MSCI India Index (Sterling adjusted)	+9.3	+54.7	+78.3	+195.0
A Considered to be an Alternative Performance Measure.
Source: abrdn, Morningstar & Factset

Financial Highlights and Financial Calendar

Financial Highlights

	30 September 2022	31 March 2022	% change
Total shareholders' funds (£'000)	423,478	403,995	+ 4.8
Share price (mid-market)	578.00p	562.00p	+ 2.8
Net asset value per share	738.57p	697.30p	+ 5.9
Adjusted net asset value per shareA	738.87p	697.30p	+ 6.0
Discount to net asset valueA	21.7%	19.4%
Net gearingA	5.7%	5.5%
Ongoing charges ratioA	1.07%	1.06%
Rupee to Sterling exchange rate	90.8	99.8	+ 9.0
A Considered to be an Alternative Performance Measure.

Financial Calendar

Financial year end	March 2023
Expected announcement of annual results for the year ending 31 March 2023	June 2023
Annual General Meeting (London)	September 2023

Chairman's Statement

Dear Shareholder

This is my first statement as Chairman of the Company following Hasan Askari's retirement at the Annual General Meeting on 28 September 2022. I should like to thank him for his leadership over ten years, together with Stephen White, who also stepped down, for their valuable contributions to the Company.

Stephen's successor as Chairman of the Audit Committee is Andrew Robson, who was appointed as a Director of the Company on 1 August 2022, while David Simpson succeeded me as Senior Independent Director. Rebecca Donaldson has been appointed Chairman of the Management Engagement Committee.

Performance

In a turbulent six months ended 30 September 2022, your Company's net asset value ("NAV") increased by 5.9% in total return terms. By comparison the MSCI India Index, the Company's Benchmark, generated 8.9% in sterling total returns terms. The Company's share price total return was 2.8% over the period as the Company's share price discount to NAV widened as investors took a risk-off attitude.

The Investment Manager's Report provides details on the portfolio's performance and how the Investment Manager is adapting to changing market trends, including finding opportunities where valuations of stocks appear overly low.

It is worth stating that, over the six months, one corporate group has had a sizable impact on the Company's relative underperformance. The Adani Group of companies has dominated market returns in 2022, but the Company avoids holding Adani stocks as they fail to meet your Investment Manager's stringent quality criteria. Performance was also held back by the exposure to Azure Power Global, which saw its value decline due to a series of events which severely undermined market confidence. Delays in filing financial statements, a whistle-blower report and the subsequent resignation of the (still new) CEO, led the Investment Manager to sell the stock. This was an unfortunate and unexpected outcome considering the comprehensive due diligence undertaken prior to purchase. On a positive note, your Investment Manager's decision to avoid industry bellwether Reliance Industries proved rewarding, while your Company's defensive quality stocks in sectors such as consumer staples performed well against a volatile market backdrop.

Environmental, Social and Governance

I am pleased to note that the Company's portfolio was recently rated "A" under the MSCI ESG Rating. This reflects well on your Investment Manager's consistent efforts to engage with the companies held within your Company's portfolio and efforts to drive improvements on various issues. More details on your Investment Manager's ESG process can be found in the Investment Manager's Report and Case Studies, as well as in the latest Annual Report. A Sustainable Investment Report is also published every six months and is available at www.aberdeen-newindia.co.uk.

Gearing

The Company announced on 5 August 2022 that it had entered into a new £30 million three-year bank loan facility (the "Facility") with The Royal Bank of Scotland International Limited (London Branch), which expires in August 2025. At 30 September 2022, the Facility was fully drawn down (31 March 2022 - £30 million drawn down), which resulted in net gearing of 5.7% (31 March 2022 - 5.5%). The ability to gear is one of the advantages of the closed ended company structure and your Investment Manager continues to make use of this Facility in seeking to add value.

Conditional tender offer

On 24 March 2022 the Board announced the introduction of a five-yearly performance-related conditional tender offer. The Board was concerned about the relative underperformance of the Company's NAV, as compared to its Benchmark. Following discussions with the Investment Manager, the Board decided that, should the Company's NAV total return underperform the Company's Benchmark over the five year period from 1 April 2022, then shareholders should be offered the opportunity to realise up to 25 per cent of their investment for cash at a level close to NAV. For these purposes, the Company's NAV per share will be adjusted for Indian capital gains tax (the "Adjusted NAV" - for further information see the Alternative Performance Measures) to enable a like for like comparison with the Benchmark. The Board monitors closely the performance of the Company's portfolio and over this short period since 1 April 2022 to 30 September 2022 the Adjusted NAV has increased by 6.0% versus the Benchmark's increase of 8.9% (further information, see the Alternative Performance Measures).

Shareholder Engagement

The Board encourages shareholders to visit the Company's website (www.aberdeen-newindia.co.uk) or other social media channels for the latest information and access to podcasts, thought-leadership articles and monthly factsheets. The Board is seeking to improve the information available to shareholders and to encourage greater interaction. Further to this, the Board has supported the enhancement of the website, alongside more frequent updates by the Investment Manager.

Discount and Share Buybacks

The Board continues to monitor actively the discount of the Ordinary share price to the NAV per Ordinary share  and pursues a policy of selective buybacks of shares where to do so, in the opinion of the Board, is in the best interests of shareholders, whilst also having regard to the overall size of the Company.

Over the six months under review, the discount to NAV widened from 19.4% to 21.7%. The Company bought back into treasury 559,372 Ordinary shares (year ended 31 March 2022 - 448,201 shares), resulting in issued share capital of 57,337,755 Ordinary shares with voting rights and an additional 1,732,385 shares in treasury. Between the period end and the date of this Report a further 575,672 shares were bought back into treasury resulting in 56,762,083 shares in issue with voting shares and 2,308,057 shares held in treasury.

The Board believes that a combination of stronger long-term performance and effective marketing communication should increase demand for the Company's shares and reduce the discount to NAV at which they trade, over time.

Outlook

A relatively high pool of foreign currency reserves and low levels of public debt leave India's central bank and its government in a good position to withstand any further macroeconomic shocks. Over the longer term, India's attractiveness remains intact. As one of the largest consumer markets outside the US and China, India has a predominantly young population. The middle class is expanding, accumulating more wealth and enjoying higher levels of disposable income. Business-friendly policies facilitate opportunities for domestic corporations and multinational companies alike. After performing below its potential over the last decade, due to a multitude of painful but necessary reforms, together with the effect of the pandemic, India is poised for a cyclical rebound.

A promising development is the relocation of manufacturing operations to India by an increasing number of multinational corporations. The country's desire to become a global manufacturing hub is well-known. This has been promoted by the 'Make in India' campaign to incentivise companies to relocate through business-friendly polices such as production-linked incentive schemes, favourable corporate tax rates and the repealing of a controversial retrospective tax law. For example, Apple has decided to manufacture its new iPhone 14 at Foxconn's Sriperumbudur factory just outside Chennai. Such investments demonstrate important steps along India's path towards becoming the third-largest economy and stock market in the world by the end of the decade. Insulated more than other countries from prevailing geopolitical complications, this all points to India being on a healthier footing versus other emerging markets. 

The Board appreciates the Investment Manager's ability to identify quality companies that will benefit from favourable long term trends but is also keen to ensure that new opportunities within the Indian market are not overlooked. The Board is very conscious that the Company's recent performance has not matched its longer-term record and we are engaging actively with the Investment Manager on the issue.

Michael Hughes
Chairman
2 December 2022

Investment Manager's Report

Market review

Indian equities proved resilient over the six months under review, with the market being one of the few global bourses outside of the Middle East to remain in positive territory. The size of the domestic economy, moreover, provided a buffer against any weakness in global demand. However, against a backdrop of post-pandemic economic recovery, spurred on by growing consumer appetite for goods, services and travel, rising prices became a cause for concern. It was exacerbated by the ongoing conflict in Ukraine that sent oil and commodity prices soaring. Despite being a net importer of oil and certain commodities, India has been able to withstand the impact of inflation aided by supportive measures from the government and the central bank. With high frequency data showing signs of steady improvement over the period, India's relatively stable position in an increasingly tense geopolitical landscape has further provided relief to investors.

Portfolio overview

While the portfolio delivered a positive absolute return, it lagged the Benchmark as positive allocation did not fully offset negative stock selection.

Principally, we believe in investing in businesses that are backed by reputable promoter groups, with a track record of delivering value to all shareholders. Hence, the Company's portfolio does not hold positions in any of the Adani Group companies, which has held back relative performance. We view the Adani entities as lower quality stocks, given their weak financial track records, highly over-leveraged balance sheets and major ESG concerns, which make them extremely risky bets in our view, and ones that we are not prepared to expose the portfolio to. These entities, unfortunately, have contributed to over half of the portfolio's relative underperformance of the Benchmark over the six months. Shares of Adani Enterprises, Adani Transmission, Adani Total Gas and Adani Green Energy - most of which are classified under the utilities sector - outperformed the Benchmark as the group announced a series of aggressive expansion plans and corporate actions spanning multiple industries.

Drilling into the attribution, additional underperformance was due to several factors that we outline below.

Weak stock selection in utilities also negatively impacted through the portfolio's holding in Azure Power Global. A series of increasingly concerning events through August relating to late filing of the annual financials, an abrupt resignation of the recently-appointed CEO and a whistle blower led to our rapid exit in the stock. While this was a small position in the portfolio, it has been disappointing, not least because the company had high quality investors on the register, and we had undertaken significant due diligence on the company ourselves and viewed it as a high-quality exposure to the Indian renewables sector. Following this episode, ReNew Energy Global will be our sole renewables exposure. We have had a preference for ReNew given its operational execution, scale and funding status and this has been reflected in our relative positioning. After our detailed discussion with the company and others in the industry, there are reasons to believe what happened with Azure Power Global is an isolated case that surprised many. ReNew has strong checks and balances in its internal controls and there are few levers for manipulation in operating assets, which makes up the bulk of its portfolio. Fundamentally, ReNew has been executing in line with our expectations since initiation. We have also been encouraged by the Central Government releasing new rules to address the receivables issues in the sector, which is incrementally positive for the cashflows of ReNew.

Another contributing factor to the relative underperformance has been the growing fears of a global recession that would likely have an impact on technology spending. While we had taken some profits from our IT services holdings, our overall overweight exposure to the sector detracted from performance during the period. Despite near-term challenges, India's technology sector remains attractive, owing to robust demand for knowledge-based IT services both at home and abroad and we judge our core IT services holdings Infosys, Tata Consultancy Services and Mphasis to be high quality names, with clearly articulated sources of competitive advantage, healthy balance sheets, impressive management teams and excellent corporate governance standards.

As India continues to re-open in a post-pandemic world and as the global supply chain disruptions ease, cyclical discretionary stocks, such as those in the automobiles sector, have rallied as new car sales rose steadily in response to pent-up demand. Your Company holds Maruti Suzuki, which outperformed on the back of a strong orderbook and new model launches, including a next generation of compact SUV, the Vitara Brezza. However, not holding Mahindra & Mahindra in the early part of the review period proved costly as its share price rose following a set of robust results. We had favoured Maruti Suzuki as the undisputed market leader in the passenger vehicle market with strong support from its parent company.  Through the period, we had been adding to our position in the company that should benefit from the cyclical recovery. With our positive view on the sector's long-term outlook, we added Mahindra & Mahindra as a complement to our holding in Maruti Suzuki. Mahindra & Mahindra has a stronger position in SUVs, a new line-up of electric vehicles and has demonstrated better capital allocation that should drive an increase in its valuation. 

Finally, your Company's allocation to the financials sector did not fully offset stock selection as the portfolio's exposure to Piramal Enterprises weighed on performance. Piramal disappointed on a weak set of results though, in more positive developments, the group has now de-merged its pharma business to create a cleaner corporate structure, with two listed companies, a financial services business and a healthcare business. The portfolio now holds shares in both entities. Notwithstanding the near-term weakness in both businesses, we believe this structure will provide greater clarity and transparency to investors, and pave the way for a re-rating in both stocks over the medium term. Elsewhere, PB Fintech, which operates the online insurance platform Policybazaar, sold off on negative sentiment towards pre-profit companies in India, and across the region.

The portfolio's core, well-capitalised holdings in ICICI Bank and Kotak Mahindra Bank outperformed in a rising interest rate environment and amid expectations of an improving credit cycle. Both lenders delivered good results that were underpinned by healthy loan and fee-income growth. Among insurance names, SBI Life Insurance also outperformed after posting strong quarterly results that demonstrated insurance premium growth and margin uplift, driven by improvements in the company's product mix and through good execution from management.

On a positive note, your Company's underweight to the energy sector was also the biggest contributor to relative returns. Global energy prices came under pressure as even a relatively strong US dollar could not compensate for investors' mounting fears over a global recession and its impact on energy demand. Not holding industry bellwether Reliance Industries was beneficial as its share price pulled back following recent outperformance. We do not hold Reliance for similar reasons as the Adani group (see above). Your Company's exposure to oil and gas logistics company, Aegis Logistics staged a strong share price rebound during the period on robust gas distribution sales. Meanwhile, the portfolio's more defensive holdings, particularly in the consumption sectors, fared well despite increasing volatility in the market. The share price of Hindustan Unilever, the largest, fast-moving consumer goods company in India, recovered from its March lows with resilient margins, thanks to a strong balance sheet, wide distribution channels and its ability to pass on costs. A benign monsoon and the festival season further supported solid demand growth. Likewise, Crompton Greaves Consumer Electricals also saw its share price rise on resilient demand, which added to your Company's relative gains.

Portfolio Activity

We have taken steps to reposition and refresh the portfolio to keep up with changing market trends in the near-term, while staying true to our philosophy of investing in the highest quality companies that are fundamental to India's long-term growth. Aside from Mahindra & Mahindra, we introduced Delhivery, the largest, fastest-growing and fully integrated logistics player in India, with all verticals exhibiting very healthy growth. The company is disrupting the domestic logistics industry through its uniquely successful network design, tech and automation capabilities, business integration and significant time and data advantage.

We also initiated ABB India, the listed subsidiary of Zurich-based multinational corporation, ABB. It designs, manufactures and distributes industrial equipment to a diversified base of industries in India. ABB India has a strong management team and technology know-how and it is very familiar with the local market, which positions it well for the recovery in India's industrial capex as the economy recovers from two years of weakness related to Covid-19 (see the case study for further details).

To allocate funds to more compelling opportunities elsewhere we divested from Zomato and Star Health and Allied Insurance. At the same time, we took profit from our positions in ITC and Larsen & Toubro (L&T). Finally, we also sold Azure Power Global for reasons that we discussed above.

Environmental, Social and Governance

Over the six months, we continued our engagement with companies on various ESG matters. Holding discussions with Affle India on aspects of labour management, human rights and corporate governance. Further, we spoke with Godrej Properties about its green strategy for its residential development projects, firm-wide safety-management certification and various board issues. We encouraged both companies to take the necessary actions to improve their ESG credentials, and will follow up with them on progress. Lastly, in a meeting with UltraTech Cement, we noted improvements on the company's decarbonisation efforts. The company was planning to reduce its carbon (CO2) emissions from 580kg per tonne of cement to 462kg per tonne by 2032, with the main focus on using green energy as a fuel source.

Outlook

India remains one of the fastest-growing countries in the world, and is expected to deliver one of the highest earnings growth stories this year, supported by a pro-growth budget for the 2023 fiscal year. With the Covid-19 pandemic under control, India's economy is showing signs of recovery: credit growth is accelerating, the real estate market is seeing momentum, infrastructure is being built and consumer spending is gradually improving. Some of the domestic headwinds, including rising inflationary pressure, appear to have moderated slightly in recent months. That said, prices remain above the central bank's upper tolerance limit, and if interest rates continue to rise, it would eventually have the effect of weighing on the consumption recovery trend. Further, international developments, including the potential onset of a global recession, as well as geopolitical escalations would have an impact and test the resilience of the domestic economy.

We expect our core quality holdings to continue to deliver resilient compounding earnings growth over the medium term, come what may in terms of macro conditions. The consistency of earnings growth within the portfolio remains healthy and fundamentals, including pricing power, strong balance sheets and the ability to sustain margins, remain solid. We maintain confidence in the experienced management teams in place at these companies and in time expect these factors to once again be reflected in favourable share price performance.

Kristy Fong and James Thom
Investment Manager
2 December 2022

Investment Case Studies

ABB India - committed to sustainability by 2030

As the local listed subsidiary of Switzerland-based ABB Group, ABB India undertakes engineering and construction projects and manufactures heavy engineering and industrial equipment. It has four main business segments in motion, robotics and discrete automation, electrification and process automation.

The company's orderbook has been growing as activity levels in India are on the rise again. We like the company because it is prudent, well-managed and feeds into a wide variety of industrial and power sectors. Its strong balance sheet and ability to generate cash is likely to weather future economic disruptions, while the high quality of its product and technology portfolio will benefit from an increasing demand for energy efficiencies from customers and regulators. ABB India's solid reputation and technology support also mean that the company is able to charge a premium for its products and services in a niche market.

More broadly, we expect ABB India to be among the beneficiaries of rising government capital expenditure. This reflects the government's continued focus on improving infrastructure, evident in developments such as the launch of the National Infra Pipeline and National Monetization Pipeline to fund infrastructure projects.

On the ESG front, ABB India is not rated by MSCI but its parent - ABB - holds an AA rating. As part of its 2030 sustainability strategy, ABB India aims to support customers and suppliers to reduce greenhouse gas emissions while achieving carbon neutrality in its own operations. ABB's emissions reduction targets have been validated by the Science Based Targets initiative as being in line with the 1.5°C scenario of the Paris Agreement.

ABB India's involvement in industrial automation, robotics and motion also means that it is providing industry solutions to help boost productivity, which aligns it with UN sustainable development goals to achieve a more productive and sustainable future through technological upgrading and innovation.

Kotak Mahindra Bank - an unconventional road to becoming one of India's top lenders

As one of India's top private banks, Kotak Mahindra Bank has had an unconventional start.

Compared with established peers, it is a relatively new entrant into India's banking sector. In 2003, the Kotak Mahindra Group's flagship company, Kotak Mahindra Finance, received a banking licence from the Reserve Bank of India. It became the first non-banking finance company in the country to convert into a full-service private sector bank with good asset quality and a relatively low level of non-performing loans. Today, there are over 1,300 branches across India where Kotak provides a comprehensive portfolio of products and services such as working capital financing, transaction banking, debt capital markets, forex and treasury services.

Kotak is well-positioned in an industry that offers higher growth potential than most markets in Asia, given the low levels of financial penetration in India. For its part, the Indian banking sector had for years been saddled with bad debt that needed to be tackled to spur lending in a growing economy - the RBI and the government in recent years have taken various measures to clean up balance sheets of lenders and consolidate the weaker public sector banks. That has allowed top private lenders like Kotak, with strong fundamentals, to step up provisioning and collectively gain a greater share of corporate loans from the state-owned banks.

We like Kotak because of its strong current account savings account (CASA) franchise, credit quality, capital and core fees, and exceptional risk management capabilities. The lender has solid financials, superior cash generation ability, and it is led by a capable and experienced management team that is exceptionally disciplined. For example, at the onset of the Covid-19 pandemic, Kotak was early in pulling back on lending as it saw potential credit risks due to the widespread economic disruption. Having stayed away from riskier lending and shored up its balance sheet, the management is now more confident to start lending again as green shoots of recovery have emerged. Kotak also plans to grow its customer franchise in non-credit risk areas such as advisory, insurance, securities and wealth management.

Furthermore, Kotak has excellent environmental, social and governance (ESG) credentials. In April, MSCI upgraded the lender's rating from A to AA, driven largely by an assessment of the bank's loan portfolio where exposure to environmentally sensitive industries was only about 10%. MSCI noted that Kotak leads industry peers on consumer protection and superior governance practices due to the presence of a majority independent board as well as separate CEO and chairman roles.

Kotak has also instituted an ESG policy framework to evaluate credit and portfolio composition and align its business strategy, processes and disclosures with national and international standards. It has also demonstrated strong efforts to mitigate risks associated with potential unethical corporate behaviour, with regular audits of its ethic controls and robust policies against money laundering.

Ten Largest Investments

As at 30 September 2022

	Housing Development Finance Corporation			Infosys One of India's best software developers, it continues to impress with its strong management, solid balance sheet and sustainable business model.
	A steady, well-managed financial services conglomerate with leading positions in mortgage finance, retail banking, life insurance and asset management, supported by a broad distribution network, efficient cost structure and balance sheet quality.
	ICICI Bank			Hindustan Unilever
	Delivering superior growth and returns improvement without compromising on asset quality. It has leveraged on its scale as well as retail and digital franchises to increase its mortgage book and also growing off a low base in business banking and SMEs.			The largest fast-moving consumer goods company (FMCG) in India, with an unrivalled portfolio of brands, an extensive nationwide distribution network, and a long and successful operational track record in the country.
	Bharti Airtel			Tata Consultancy Services
	The leading telecom service provider with a pan-India reach and sophisticated customer base with higher average mobile spending.			A top-class Indian IT services provider with the most consistent execution and lowest attrition rates. It is a long-term compounder with a decent outlook for revenue growth and order wins over the medium term.
	Power Grid Corporation of India			Kotak Mahindra Bank
	Forming the backbone of India's electricity infrastructure. It plans and manages the national grid network, along with several regional ones, and transmits about half of the electricity that is used domestically.			A full-service private-sector bank in India that has good asset quality and a relatively low level of non-performing loans compared to many of its peers. It is well positioned in an industry that offers higher growth than most markets in Asia, given the low level of financial penetration.
	UltraTech Cement			Maruti Suzuki India
	A clear industry leader in India's cement industry, backed by strong brand recognition, a good distribution and sales network and solid product quality. Its focus on cost efficiency and an improving energy mix have given UltraTech a cost advantage.			India's largest passenger vehicle company is a subsidiary of Japan's Suzuki and boasts a dominant market share in the four-wheeler market in India. Its distribution network and business scale are unparalleled in the market, supported by strong research and development capabilities.

Portfolio

As at 30 September 2022
		2022
		Valuation	Total assets
Company	Sector	£'000	%
Housing Development Finance Corporation	Financials	38,372	8.4
Infosys	Information Technology	38,200	8.4
ICICI Bank	Financials	38,009	8.4
Hindustan Unilever	Consumer Staples	31,600	7.0
Bharti Airtel	Communications Services	24,403	5.4
Tata Consultancy Services	Information Technology	24,368	5.3
Power Grid Corporation of India	Utilities	18,969	4.2
Kotak Mahindra Bank	Financials	16,216	3.6
UltraTech Cement	Materials	15,358	3.4
Maruti Suzuki India	Consumer Discretionary	15,355	3.4
Top ten investments		260,850	57.5
SBI Life Insurance	Financials	14,913	3.2
Asian Paints	Materials	14,404	3.2
HDFC Bank	Financials	14,152	3.1
Container Corporation of India	Industrials	14,032	3.1
Crompton Greaves Consumer Electricals	Consumer Discretionary	11,191	2.5
Fortis Healthcare	Healthcare	11,117	2.5
Aegis Logistics	Energy	9,577	2.1
Nestlé India	Consumer Staples	9,032	2.0
Affle India	Communications Services	8,820	1.9
MphasiS	Information Technology	8,692	1.9
Top twenty investments		376,780	83.0
Prestige Estates Projects	Real Estate	8,064	1.8
Vijaya Diagnostic Centre	Healthcare	7,606	1.7
Syngene International	Healthcare	7,486	1.7
Hindalco Industries	Materials	7,270	1.6
ReNew Energy Global	Utilities	6,787	1.5
Delhivery	Industrials	6,179	1.4
ABB India	Industrials	5,688	1.3
Godrej Properties	Real Estate	5,369	1.2
Fsn E-Commerce Ventures	Consumer Discretionary	5,332	1.1
PB Fintech	Financials	4,493	1.0
Top thirty investments		441,054	97.3
Info Edge India	Communication Services	4,107	0.9
Piramal Pharma	Healthcare	3,868	0.9
Piramal Enterprises	Financials	3,820	0.8
Sanofi India	Healthcare	3,760	0.8
Mahindra & Mahindra Ltd	Consumer Discretionary	3,239	0.7
Aptus Value Housing Finance	Financials	2,313	0.5
Total portfolio investments		462,161	101.9
Net current assets (before deducting prior charges)A		(8,782)	(1.9)
Total assetsA		453,379	100.0
A Excluding loan balances.

Other Matters

Investment Objective

The investment objective of the Company is to provide shareholders with long term capital appreciation by investment in companies which are incorporated in India, or which derive significant revenue or profit from India, with dividend yield from the Company being of secondary importance.

Investment Policy

The Company primarily invests in Indian equity securities.

Principal Risks and Uncertainties

The principal risks and uncertainties associated with the Company are set out in detail on pages 16 to 18 of the Annual Report for the year ended 31 March 2022, which is published on the Company's website. The principal risks and uncertainties may be summarised under the following headings:

· Market risk

· Foreign Exchange risk

· Discount risk

· Depositary risk

· Financial and Regulatory risk

· Gearing risk

In addition the Board has identified, as an emerging risk which it considers is likely to become more relevant for the Company in the future, the implications for the Company's investment portfolio of a changing climate. The Board assesses this emerging risk as it develops, including how investor sentiment is evolving towards climate risk within investment portfolios and will consider how the Company may mitigate this risk, together with any other emerging risks, if and when they become material.

These principal risks and uncertainties, and emerging risk, are not expected to change materially for the remaining six months of the Company's financial year ending 31 March 2023, as they have not done for the period under review, other than the Board continues to assess the ongoing implications for the Company of the geopolitical instability associated with the Russian invasion of Ukraine and the threat posed by rising inflation and rising interest rates.

Going Concern

In accordance with the Financial Reporting Council's guidance on Going Concern and Liquidity Risk, the Directors have reviewed the Company's ability to continue as a going concern. The Company's assets consist of a diverse portfolio of listed equity shares which in most circumstances are realisable within a short timescale.

The Directors are conscious of the principal risks and uncertainties disclosed on pages 16 to 18 and in Note 17 to the financial statements for the year ended 31 March 2022.

In August 2022, the Company announced that it had entered a three year, £30 million revolving credit facility with The Royal Bank of Scotland International Limited (the "Facility") which was fully drawn down at 30 September 2022. The Board has set limits for borrowing and regularly reviews the level of any gearing and compliance with banking covenants.

In advance of expiry of the Facility in August 2025, the Company will enter into negotiations with its bankers. If acceptable terms are available from the existing bankers, or any alternative, the Company would expect to continue to access a facility. However, should these terms not be forthcoming, any outstanding borrowing would be repaid through the proceeds of equity sales.

After making enquiries, including a review of revenue forecasts, the Directors have a reasonable expectation that the Company possesses adequate resources to continue in operational existence for the foreseeable future and for at least 12 months from the date of this Report. Accordingly, they continue to adopt the going concern basis of accounting in preparing the financial statements.

Statement of 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 has been prepared in accordance with Financial Reporting Standard 104 (Interim Financial Reporting);

· the Half Yearly Board Report includes a fair review of the information required by rule 4.2.7R of the Disclosure Guidance and Transparency Rules (being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of Financial Statements and a description of the principal risks and uncertainties for the remaining six months of the financial year); and

· the Half Yearly Board Report includes a fair review of the information required by 4.2.8R of the Disclosure Guidance and Transparency Rules (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 do so).

The Half Yearly Financial Report for the six months ended 30 September 2022 comprises the Interim Board Report, including the Statement of Directors' Responsibilities, and a condensed set of Financial Statements.

For and on behalf of the Board
Michael Hughes
Chairman
2 December 2022

Condensed Statement of Comprehensive Income

				Six months ended							Six months ended							Year ended
				30 September 2022							30 September 2021							31 March 2022
				(unaudited)							(unaudited)							(audited)
				Revenue		Capital		Total			Revenue		Capital		Total			Revenue			Capital			Total
			Notes	'000		'000		'000			'000		'000		'000			'000			'000			'000
	Income
	Income from investments and other income		3	3,461		-		3,461			2,936		-		2,936			4,904			155			5,059
	Gains on investments held at fair value through profit or loss			-		22,570		22,570			-		78,990		78,990			-			45,078			45,078
	Currency gain/ (losses)			8		(15)		(7)			-		(64)		(64)			-			(342)			(342)
				3,469		22,555		26,024			2,936		78,926		81,862			4,904			44,891			49,795
	Expenses
	Investment management fees			(1,681)		-		(1,681)			(1,637)		-		(1,637)			(3,328)			-			(3,328)
	Administrative expenses			(529)		-		(529)			(441)		-		(441)			(927)			-			(927)
	Profit before finance costs and taxation			1,259		22,555		23,814			858		78,926		79,784			649			44,891			45,540
	Finance costs			(466)		-		(466)			(134)		-		(134)			(290)			-			(290)
	Profit before taxation			793		22,555		23,348			724		78,926		79,650			359			44,891			45,250
	Taxation		4	(310)		(176)		(486)			(303)		(9,966)		(10,269)			(525)			(4,140)			(4,665)
	Profit/(loss) for the period			483		22,379		22,862			421		68,960		69,381			(166)			40,751			40,585
	Return/(loss) per Ordinary share (pence)		5	0.84		38.84		39.68			0.72		118.13		118.85			(0.28)			69.92			69.64
	The Company does not have any income or expense that is not included in profit/(loss) for the period, and therefore the "Profit/(loss) for the period" is also the "Total comprehensive income for the period".
	The total columns of this statement represent the Condensed Statement of Comprehensive Income, prepared in accordance with IFRS. The revenue and capital columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies. All items in the above statement derive from continuing operations.
	All of the profit/(loss) and total comprehensive income is attributable to the equity holders of Aberdeen New India Investment Trust PLC. There are no non-controlling interests.   The accompanying notes are an integral part of these financial statements.
	Condensed Statement of Financial Position
												As at					As at					As at
												30 September					30 September					31 March
												2022					2021					2022
												(unaudited)					(unaudited)					(audited)
											Notes	£'000					£'000					£'000
		Non-current assets
		Investments held at fair value through profit or loss										462,161					482,119					439,881
		Current assets
		Cash at bank										5,927					5,655					9,772
		Receivables										1,218					1,297					2,160
		Total current assets										7,145					6,952					11,932
		Current liabilities
		Bank loan									7	(29,901)					(30,000)					(30,000)
		Other payables										(2,162)					(564)					(3,287)
		Total current liabilities										(32,063)					(30,564)					(33,287)
		Net current liabilities										(24,918)					(23,612)					(21,355)
		Non-current liabilities
		Deferred tax liability on Indian capital gains									4	(13,765)					(23,132)					(14,531)
		Net assets										423,478					435,375					403,995
		Share capital and reserves
		Ordinary share capital									8	14,768					14,768					14,768
		Share premium account										25,406					25,406					25,406
		Special reserve										6,553					12,516					9,932
		Capital redemption reserve										4,484					4,484					4,484
		Capital reserve										371,841					377,671					349,462
		Revenue reserve										426					530					(57)
		Equity shareholders' funds										423,478					435,375					403,995
		Net asset value per Ordinary share (pence)									10	738.57					745.95					697.30
		The accompanying notes are an integral part of these financial statements.
		Condensed Statement of Changes in Equity
Six months ended 30 September 2022 (unaudited)
							Share					Capital
					Share		premium			Special		redemption				Capital			Revenue
					capital		account			reserve		reserve				reserve			reserve				Total
					'000		'000			'000		'000				'000			'000				'000
Balance at 31 March 2022					14,768		25,406			9,932		4,484				349,462			(57)				403,995
Profit for the period					-		-			-		-				22,379			483				22,862
Buyback of share capital to treasury					-		-			(3,379)		-				-			-				(3,379)
Balance at 30 September 2022					14,768		25,406			6,553		4,484				371,841			426				423,478
Six months ended 30 September 2021 (unaudited)
							Share					Capital
					Share		premium			Special		redemption				Capital			Revenue
					capital		account			reserve		reserve				reserve			reserve				Total
					£'000		£'000			£'000		£'000				£'000			£'000				£'000
Balance at 31 March 2021					14,768		25,406			12,628		4,484				308,711			109				366,106
Profit for the period					-		-			-		-				68,960			421				69,381
Buyback of share capital to treasury					-		-			(112)		-				-			-				(112)
Balance at 30 September 2021					14,768		25,406			12,516		4,484				377,671			530				435,375
Year ended 31 March 2022 (audited)
							Share					Capital
					Share		premium			Special		redemption				Capital			Revenue
					capital		account			reserve		reserve				reserve			reserve				Total
					£'000		£'000			£'000		£'000				£'000			£'000				£'000
Balance at 31 March 2021					14,768		25,406			12,628		4,484				308,711			109				366,106
Profit/(loss) for the year					-		-			-		-				40,751			(166)				40,585
Buyback of share capital to treasury					-		-			(2,696)		-				-			-				(2,696)
Balance at 31 March 2022					14,768		25,406			9,932		4,484				349,462			(57)				403,995
The Special reserve and the Revenue reserve represent the amount of the Company's distributable reserves.
Condensed Cash Flows Statement
									Six months ended					Six months ended						Year ended
									30 September 2022					30 September 2021						31 March 2022
									(unaudited)					(unaudited)						(audited)
									£'000					£'000						£'000
		Cash flows from operating activities
		Dividend income received							3,398					2,515						3,983
		Interest income received							(4)					-						-
		Investment management fee paid							(1,350)					(2,119)						(3,573)
		Overseas withholding tax							631					(646)						-
		Other cash expenses							(421)					(420)						(921)
		Cash inflow/(outflow) from operations							2,254					(670)						(511)
		Interest paid							(262)					(149)						(283)
		Net cash inflow/(outflow)  from operating activities							1,992					(819)						(794)
		Cash flows from investing activities
		Purchase of investments							(49,401)					(35,968)						(130,909)
		Sales of investments							47,895					34,507						139,176
		Indian capital gains tax on sales							(910)					(477)						(3,251)
		Net cash (outflow)/inflow from investing activities							(2,416)					(1,938)						5,016
		Cash flows from financing activities
		Buyback of shares							(3,307)					(112)						(2,696)
		(Repayment)/ drawdown of loan							(99)					6,000						6,000
		Net cash (outflow)/inflow from financing activities							(3,406)					5,888						3,304
		Net (decrease)/increase in cash and cash equivalents							(3,830)					3,131						7,526
		Cash and cash equivalents at the start of the period							9,772					2,588						2,588
		Effect of foreign exchange rate changes							(15)					(64)						(342)
		Cash and cash equivalents at the end of the period							5,927					5,655						9,772

There were no non-cash transactions during the period (six months ended 30 September 2021 - £nil; year ended 31 March 2022 - £nil).

	Notes to the Financial Statements For the six months ended 30 September 2022
1.		Principal activity
		The principal activity of the Company is that of an investment trust company within the meaning of Section 1158 of the Corporation Tax Act 2010.

2.	Accounting policies
	The Company's financial statements have been prepared in accordance with International Accounting Standard ('IAS') 34 - 'Interim Financial Reporting', as adopted by the International Accounting Standards Board (IASB), and interpretations issued by the International Reporting Interpretations Committee of the IASB (IFRIC). The Company's financial statements have been prepared using the same accounting policies applied for the year ended 31 March 2022 financial statements, which received an unqualified audit report.
	The financial statements have been prepared on a going concern basis. In accordance with the Financial Reporting Council's guidance on 'Going Concern and Liquidity Risk' the Directors have undertaken a review of the Company's assets which primarily consist of a diverse portfolio of listed equity shares which, in most circumstances, are realisable within a short timescale.

3.	Income
		Six months ended	Six months ended	Year ended
		30 September 2022	30 September 2021	31 March 2022
		'000	'000	'000
	Income from investments
	Overseas dividends	3,461	2,936	5,059
	Total income	3,461	2,936	5,059

4.	Taxation
			Six months ended			Six months ended			Year ended
			30 September 2022			30 September 2021			31 March 2022
			Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
			'000	'000	'000	'000	'000	'000	'000	'000	'000
	(a)	Analysis of charge for the period
		Indian capital gains tax charge on sales	-	942	942	-	477	477	-	3,251	3,251
		Overseas taxation	310	-	310	303	-	303	525	-	525
		Total current tax charge for the period	310	942	1,252	303	477	780	525	3,251	3,776
		Movement in deferred tax liability on Indian capital gains	-	(766)	(766)	-	9,489	9,489	-	889	889
		Total tax charge for the period	310	176	486	303	9,966	10,269	525	4,140	4,665
		The Company is liable to Indian capital gains tax under Section 115 AD of the Indian Income Taxes Act 1961.
		On 1 April 2018, the Indian Government withdrew an exemption from capital gains tax on investments held for twelve months or longer. The Company has recorded a deferred tax liability of £13,765,000 (30 September 2021 - £23,132,000; 31 March 2022 - £14,531,000 deferred tax liability) on capital gains which may arise if Indian investments are sold.
		On 1 April 2020, the Indian Government withdrew an exemption from withholding tax on dividend income. Dividends are received net of 20% withholding tax and an additional charge of 4%. A further surcharge of either 2% or 5% is applied if the receipt exceeds a certain threshold. Of this total charge, 10% of the withholding tax is irrecoverable with the remainder being shown in the Condensed Statement of Financial Position as an asset due for offset against Indian capital gains or reclaim.
	(b)	Factors affecting the tax charge for the year or period. The tax charged for the period can be reconciled to the profit per the Condensed Statement of Comprehensive Income as follows:
			Six months ended			Six months ended			Year ended
			30 September 2022			30 September 2021			31 March 2022
			Revenue	Capital	Total	Revenue	Capital	Total	Revenue	Capital	Total
			'000	'000	'000	'000	'000	'000	£'000	'000	'000
		Profit before tax	793	22,555	23,348	724	78,926	79,650	359	44,891	45,250
		UK corporation tax on profit at the standard rate of 19%	151	4,285	4,436	138	14,996	15,134	68	8,529	8,597
		Effects of:
		Gains on investments held at fair value through profit or loss not taxable	-	(4,288)	(4,288)	-	(15,008)	(15,008)	-	(8,594)	(8,594)
		Currency losses not taxable	-	3	3	-	12	12	-	65	65
		Deferred tax not recognised in respect of tax losses	501	-	501	419	-	419	857	-	857
		Expenses not deductible for tax purposes	5	-	5	1	-	1	6	-	6
		Indian capital gains tax charged on sales	-	942	942	-	477	477	-	3,251	3,251
		Movement in deferred tax liability on Indian capital gains	-	(766)	(766)	-	9,489	9,489	-	889	889
		Irrecoverable overseas withholding tax	310	-	310	303	-	303	525	-	525
		Non-taxable dividend income	(657)	-	(657)	(558)	-	(558)	(931)	-	(931)
		Total tax charge	310	176	486	303	9,966	10,269	525	4,140	4,665
		At 30 September 2022, the Company has surplus management expenses and loan relationship debits with a tax value of £7,608,000 (30 September 2021 - £6,375,000; 31 March 2022 - £6,949,000) based on enacted tax rates, in respect of which a deferred tax asset has not been recognised. No deferred tax asset has been recognised because the Company is not expected to generate taxable income in the future in excess of the deductible expenses of those future periods. Therefore, it is unlikely that the Company will generate future taxable revenue that would enable the existing tax losses to be utilised.

5.	Return per Ordinary share
		Six months ended	Six months ended	Year ended
		30 September 2022	30 September 2021	31 March 2022
		£'000	£'000	£'000
	Based on the following figures:
	Revenue return	483	421	(166)
	Capital return	22,379	68,960	40,751
	Total return	22,862	69,381	40,585
	Weighted average number of Ordinary shares in issue	57,619,248	58,373,678	58,276,006

6.	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 the capital column of the Condensed Statement of Comprehensive Income, and are included within gains on investments at fair value through profit or loss in the Condensed Statement of Comprehensive Income. The total costs were as follows:
		Six months ended	Six months ended	Year ended
		30 September 2022	30 September 2021	31 March 2022
		£'000	£'000	£'000
	Purchases	68	41	167
	Sales	63	52	211
		131	93	378
	The above transaction costs are calculated in line with the AIC SORP. The transaction costs in the Company's Key Information Document, provided by the Manager, are calculated on a different basis and in line with the PRIIPs regulations.

7.	Bank loan
	In August 2022, the Company entered into a three year £30 million multi-currency revolving credit facility with The Royal Bank of Scotland International Limited (London Branch). At 30 September 2022 £30 million (30 September 2021 - £30 million; 31 March 2022 - £30 million) had been drawn down at an all-in interest rate of 5.321% with a maturity date of 3 November 2022. Subsequent to this the loan has been rolled over and at the date of this report the Company had drawn down £30 million at an all-in interest rate of 6.5632%.
	The bank loan recognised in the Condensed Statement of Financial Position is net of amortised costs.

8.	Ordinary share capital
	During the period 599,372 Ordinary shares were bought back by the Company for holding in treasury (period to 30 September 2021 - 20,000; year to 31 March 2022 - 448,201), at a cost of £3,379,000 (30 September 2021 - £112,000; 31 March 2022 - £2,696,000). As at 30 September 2022 there were 57,337,755 (30 September 2021 - 58,365,328; 31 March 2022 - 57,937,127) Ordinary shares in issue, excluding 1,732,385 (30 September 2021 - 704,812; 31 March 2022 - 1,133,013) Ordinary shares held in treasury.
	Following the period end a further 575,672 Ordinary shares were bought back for treasury by the Company at a cost of £3,262,000 resulting in there being 56,762,083 Ordinary shares in issue, excluding 2,308,057 Ordinary shares held in treasury at the date this Report was approved.

9.	Analysis of changes in net debt
		At			At
		31 March	Currency	Cash	30 September
		2022	differences	flows	2022
		£'000	£'000	£'000	£'000
	Cash and short term deposits	9,772	(15)	(3,830)	5,927
	Debt due within one year	(30,000)	-	99	(29,901)
		(20,228)	(15)	(3,731)	(23,974)
		At			At
		31 March	Currency	Cash	31 March
		2021	differences	flows	2022
		£'000	£'000	£'000	£'000
	Cash and short term deposits	2,588	(342)	7,526	9,772
	Debt due within one year	(24,000)	-	(6,000)	(30,000)
		(21,412)	(342)	1,526	(20,228)
	A statement reconciling the movement in net funds to the net cash flow has not been presented as there are no differences from the above analysis.

10.	Net asset value per Ordinary share
	The net asset value per Ordinary share is based on a net asset value of £423,478,000 (30 September 2021 - £435,375,000; 31 March 2022 - £403,995,000) and on 57,337,755 (30 September 2021 - 58,365,328; 31 March 2022 - 57,937,127) Ordinary shares, being the number of Ordinary shares in issue at the period end.

11.	Fair value hierarchy
	IFRS 13 'Fair Value Measurement' requires an entity to classify fair value measurements using a fair value hierarchy that reflects the subjectivity of the inputs used in making measurements. The fair value hierarchy has the following levels:
	Level 1: quoted (unadjusted) market prices in active markets for identical assets or liabilities;
	Level 2: valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and
	Level 3: valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
	The financial assets and liabilities measured at fair value in the Condensed Statement of Financial Position and are grouped into the fair value hierarchy at the Condensed Statement of Financial Position date are as follows:
					Level 1	Level 2	Level 3	Total
	As at 30 September 2022			Note	£'000	£'000	£'000	£'000
	Financial assets at fair value through profit or loss
	Quoted equities			a)	462,161	-	-	462,161
	Net fair value				462,161	-	-	462,161
					Level 1	Level 2	Level 3	Total
	As at 30 September 2021			Note	£'000	£'000	£'000	£'000
	Financial assets at fair value through profit or loss
	Quoted equities			a)	482,119	-	-	482,119
	Net fair value				482,119	-	-	482,119
					Level 1	Level 2	Level 3	Total
	As at 31 March 2022			Note	£'000	£'000	£'000	Total
	Financial assets at fair value through profit or loss
	Quoted equities			a)	439,881	-	-	439,881
	Net fair value				439,881	-	-	439,881
	a)	Quoted equities. The fair value of the Company's investments in quoted equities has been determined by reference to their quoted bid prices at the reporting date. Quoted equities included in Fair Value Level 1 are actively traded on recognised stock exchanges.

12.	Related party transactions
	The Company has an agreement with abrdn Fund Managers Limited (the "Manager") for the provision of management, secretarial, accounting and administration services and for carrying out promotional activity services in relation to the Company.
	During the period, the management fee was payable monthly in arrears and was based on 0.85% per annum up to £350m and 0.7% thereafter of the net assets of the Company (period ended 30 September 2021 and year ended 31 March 2022 the management fee payable was based on 0.85% per annum up to £350m and 0.7% per annum thereafter of the net assets of the Company). The management agreement is terminable by either the Company or the Manager on six months' notice. The amount payable in respect of the Company for the period was £1,681,000 (six months ended 30 September 2021 - £1,637,000; year ended 31 March 2022 - £3,328,000) and the balance due to the Manager at the period end was £863,000 (period end 30 September 2021 - £294,000; year end 31 March 2022 - £532,000). All investment management fees are charged 100% to the revenue column of the Statement of Comprehensive Income.
	The Company has an agreement with the Manager for the provision of promotional activities in relation to the Company's participation in the abrdn Investment Trust Share Plan and ISA. The total fees paid and payable under the agreement during the period were £83,000 (six months ended 30 September 2021 - £83,000; year ended 31 March 2022 - £166,000) and the balance due to the Manager at the period end was £42,000 (period ended 30 September 2021 - £83,000; year ended 31 March 2022 - £42,000).

13.

Segmental information

For management purposes, the Company is organised into one main operating segment, which invests in equity securities. All of the Company's activities are interrelated, and each activity is dependent on the others. Accordingly, all significant operating decisions are based upon analysis of the Company as one segment. The financial results from this segment are equivalent to the financial statements of the Company as a whole.

14.	Half-Yearly Report
	The financial information contained in this Half-Yearly Report does not constitute statutory accounts as defined in Sections 434 - 436 of the Companies Act 2006. The financial information for the six months ended 30 September 2022 and 30 September 2021 has not been audited.
	The information for the year ended 31 March 2022 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies. The report of the Independent Auditor on those accounts contained no qualification or statement under Section 237 (2), (3) or (4) of the Companies Act 2006.
	The Half-Yearly Report has not been reviewed or audited by the Company's Independent Auditor.

15.	Approval
	This Half-Yearly Report was approved by the Board on 2 December 2022.

Alternative Performance Measures

Alternative performance measures are numerical measures of the Company's current, historical or future performance, financial position or cash flows, other than financial measures defined or specified in the applicable financial framework. The Company's applicable financial framework includes International Financial Reporting Standards and the Statement of Recommended Practice issued by Association of Investment Companies. The Directors assess the Company's performance against a range of criteria which are viewed as particularly relevant for closed-end investment companies.
Adjusted net asset value per Ordinary shareA
This performance measure is used to provide a like for like comparison with the Company's Benchmark for the purposes of the potential five-yearly performance-related conditional tender offer announced on 24 March 2022. Further details may be found in the Chairman's Statement.
							30 September 2022		31 March 2022
Net assets attributable (£'000)							423,478		N/A
Indian CGT charge for the period (£'000)							176		N/A
Net assets attributable excluding Indian CGT charge (£'000)							423,654		N/A
Number of Ordinary shares in issue							57,337,755		N/A
Adjusted net asset value per Ordinary shareA							738.87p		N/A
A Adjusted NAV is the Company's NAV after adding back all Indian capital gains tax paid or accrued in respect of realised and unrealised gains made on investments.
Discount to net asset value per Ordinary share
The discount is the amount by which the share price is lower than the net asset value per share with debt at fair value, expressed as a percentage of the net asset value.
								30 September 2022		31 March 2022
NAV per Ordinary share						a		738.57p		697.30p
Share price						b		578.00p		562.00p
Discount						(a-b)/a		21.7%		19.4%
Net gearing
Net gearing measures the total borrowings less cash and cash equivalents divided by shareholders' funds, expressed as a percentage. Under AIC reporting guidance cash and cash equivalents includes amounts due to and from brokers at the period end.
								30 September 2022		31 March 2022
Borrowings (£'000)						a		29,901		30,000
Cash (£'000)						b		5,927		9,772
Amounts due to brokers (£'000)						c		116		2,019
Amounts due from brokers (£'000)						d		-		211
Shareholders' funds (£'000)						e		423,478		403,995
Net gearing						(a-b+c-d)/e		5.7%		5.5%
Ongoing charges
The ongoing charges ratio has been calculated in accordance with guidance issued by the AIC as the total of annualised investment management fees and administrative expenses and expressed as a percentage of the average daily net asset values with debt at fair value published throughout the year. The ratio for 30 September 2022 is based on forecast ongoing charges for the year ending 31 March 2023.
								30 September 2022		31 March 2022
Investment management fees (£'000)								3,421		3,328
Administrative expenses (£'000)								1,021		927
Less: non-recurring charges (£'000)A								(30)		(28)
Ongoing charges (£'000)								4,412		4,227
Average net assets (£'000)								412,380		399,442
Ongoing charges ratio								1.07%		1.06%
A Professional fees unlikely to recur.
The ongoing charges ratio provided in the Company's Key Information Document is calculated in line with the PRIIPs regulations which amongst other things, includes the cost of borrowings and transaction costs.
Total return
NAV and share price total returns show how the NAV and share price has performed over a period of time in percentage terms, taking into account both capital returns and dividends paid to shareholders. Share price and NAV total returns are monitored against open-ended and closed-ended competitors, and the Benchmark, respectively.
										Share
Six months ended 30 September 2022						NAV		Adjusted NAV		Price
Opening at 1 April 2022		a				697.30p		697.30p		562.00p
Closing at 30 September 2022		b				738.57p		738.87p		578.00p
Price movements		c=(b/a)-1				5.9%		6.0%		2.8%
Dividend reinvestmentA		d				N/A		N/A		N/A
Total return		c+d				+5.9%		+6.0%		+2.8%
										Share
Year ended 31 March 2022						NAV		Adjusted NAV		Price
Opening at 1 April 2021		a				627.05p		N/A		542.00p
Closing at 31 March 2022		b				697.30p		N/A		562.00p
Price movements		c=(b/a)-1				11.2%		N/A		3.7%
Dividend reinvestmentA		d				N/A		N/A		N/A
Total return		c+d				+11.2%		N/A		+3.7%
A NAV total return involves investing the net dividend in the NAV of the Company with debt at par value on the date on which that dividend goes ex-dividend. Share price total return involves reinvesting the net dividend in the share price of the Company on the date on which that dividend goes ex-dividend.

Stuart Reid

abrdn Holdings Limited

Secretaries

Tel. [phone]

2 December 2022

 

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