abrdn Asian Income Fund Limited (the
"Company")
Legal Entity Identifier (LEI):
549300U76MLZF5F8MN87
16
January 2025
Enhanced Dividend Policy, Introduction of Continuation Vote
and Declaration of Fourth Interim Dividend
The board of abrdn Asian Income Fund
Limited (the "Board") announces:
·
An enhanced annual dividend policy of 6.25% of
average net asset value ("NAV"), equating to a notional dividend
yield of 7.1% based on share price (applies from the start of the
2025 financial year);
·
Introduction of a continuation vote every three
years; and
·
A dividend for the fourth quarter of 2024 of 6.78
pence per Ordinary share, resulting in a full year dividend of
14.43 pence per share, an increase of 22.8% compared to the
previous year.
Enhanced Dividend Policy
The Board has consistently
prioritised delivering meaningful dividends to shareholders
alongside capital growth in the Asian region. Recognising
investors' continued appetite for yield in the current interest
rate environment, the Board has sought to further enhance
shareholder returns and hence to make the Company's shares even
more attractive to a wider range of
investors.
Accordingly, the Company's dividend
will be set at 1.5625% per quarter of the Company's NAV, equating
to approximately 6.25% of NAV per annum. The dividend will be
calculated using the Company's NAV on the last business day of the
preceding financial quarter (i.e. the end of March, June, September
and December).
Based on the Company's NAV as at 31
December 2024 and closing share price of 222 pence on 15 January
2025, this enhanced dividend policy would equate to a notional
annual dividend yield of 7.1% based on share price. This approach
ensures a consistent and attractive income stream for shareholders
while broadening the appeal of the Company's shares and, over time,
aiming to narrow the discount.
The first dividend payment to be
made under the enhanced policy will be in May 2025, for the quarter
ended 31 March 2025.
Importantly, there will be no change
to the investment process nor to the Company's strategy as a result
of the new policy. The Investment Manager will continue to
seek quality, cash-generative businesses with strong management
teams, at sensible valuations, that have the potential to deliver
reliable income and capital growth for our investors.
The enhanced dividend policy
reflects the Board's confidence in the long term robust
opportunities in Asian markets, where dividend yields and growth
have outpaced those of Europe and the US. With over 50% of total
returns in Asian equities now driven by dividends, and with
companies in the region demonstrating stronger balance sheets and
increasing free cash flow coverage for dividends, the potential for
rising payout ratios is compelling.
The new policy means that dividends
paid will reflect the Company's assets at each quarter end.
Dividends will therefore be subject to market and performance
fluctuations and will vary from quarter to quarter, in line
with underlying earnings, currency movements and changes in the
portfolio value. As is currently the case, in years
when the net revenues fall below the level required for a fully
covered dividend, dividends will be funded from a combination of
revenue and capital reserves thus using one of the key benefits of
the investment company structure.
Continuation Vote
Alongside the enhanced dividend
policy, to further align with shareholder interests, the Board is
also introducing a continuation vote so that shareholders can
decide whether they wish the Company to continue in its current
form at regular intervals. A continuation vote will first be tabled
at the Company's annual general meeting in 2028, and every three
years thereafter. Shareholders will be asked by simple majority
vote if they wish the Company to continue in its current form. In
the event that the vote should fail, further proposals will be
brought to shareholders regarding the future of the
Company.
This initiative underscores the
Board's commitment to transparency and to ensuring shareholders
have a direct say in the Company's direction.
The Board believes that these
actions, alongside the strong investment performance of the Company
and reduced charges associated with the recent switch to a market
cap-based management fee, should ensure a positive outlook for
shareholder returns.
Declaration of Fourth Interim Dividend
The Directors of the Company have
today also declared an increased fourth interim dividend for the
year ending 31 December 2024 of 6.78 pence per Ordinary
share (fourth interim for 2023: 4.25
pence). The dividend will be payable on 21
February 2025 to Ordinary shareholders on the register on 24
January 2025, with the ex-dividend date being 23 January
2025.
The total dividend for 2024 is
therefore 14.43 pence, an increase of 22.8% compared to the
previous year (2023: 11.75 pence). Additionally, the Board is
pleased to note that this represents the sixteenth consecutive year
of annual dividend increases.
Ian Cadby, Chairman of the Company
comments:
"The Board is delighted to deliver another year of increased
dividends for our shareholders, reflecting our commitment to
providing a meaningful and sustainable income. The Asia Pacific
region continues to emerge as one of the most dynamic sources of
dividends globally, offering a compelling blend of growth and
income potential. With our enhanced dividend policy, we are poised
to capitalise on these robust opportunities while adapting to
shareholders' needs in today's high-interest rate environment. The
introduction of a continuation vote further underscores our
dedication to transparency and shareholder empowerment. We are
confident in the long-term resilience and growth of the asset
class, and staying true to our disciplined investment strategy
should ensure strong and consistent returns for our
investors."
abrdn Investments Limited
Administrator
www.abrdn.com/en-gb/aaif
We
get Asia because we're here.
We speak the language and live the
culture of where we invest; gaining first-hand market insights and
enriching data with a deep understanding of the local
landscape.
Relationships to rely on.
Our connections breed consistency.
We build and maintain partnerships with companies and their
management teams to unlock their business growth and your income
potential.
Diversification, delivered.
From established brands to growth
industries, our fund extends beyond boundaries and sectors to
diversify income opportunities from the strongest-performing and
fastest-growing businesses across Asia.
For further information, please
contact:
abrdn (Investment
Manager):
Ben Heatley
Head of Closed End Fund
Sales
07796 564562
Maria Allen
Client Director, Closed End
Funds
07768 475219
Peel Hunt LLP (Corporate
Broker):
Luke Simpson, Huw Jeremy (Investment
Banking)
Alex Howe, Richard Harris
(Sales)
020 7418 8900
