TIDMAAS

RNS Number : 0099D

abrdn Asia Focus plc

17 October 2022

ABRDN ASIA FOCUS PLC

Legal Entity Identifier (LEI): 5493000FBZP1J92OQY70

ANNUAL FINANCIAL REPORT FOR THE YEARED 31 JULY 2022

STRATEGIC REPORT - COMPANY SUMMARY AND FINANCIAL HIGHLIGHTS

Performance Highlights

 
Net asset value total return (diluted)(AB)      Net asset value per share (diluted) 
                   -2.0%                                       295.3p 
2021                                  +41.9%    2021                          309.02p 
 
Share price total return(A)                     Share price 
                   -1.7%                                       254.0p 
2021                                  +38.2%    2021                          266.00p 
 
MSCI AC Asia ex Japan Small Cap                 Discount to net asset value(AB) 
 Index total return(C) 
              -5.1%                                     14.0% 
2021                                  +39.6%    2021                            13.9% 
 
Ongoing charges ratio(A)                        Dividend increase/(decrease)(D) 
                   0.88%                                       150.0% 
2021                                   1.10%    2021                           -15.8% 
(A) Alternative Performance Measure (see below). 
(B) Presented on a diluted basis as the Convertible Unsecured Loan 
 Stock ("CULS") is "in the money" (2021 - same). 
(C) Currency adjusted, capital gains basis. 
(D) Dividends include special dividends of 1.6p for 2022 (2021 - 0.2p). 
(E) Figures for 2021 have been restated to reflect the 5:1 sub-division 
 as disclosed in note 14. 
 

Financial Calendar, Dividends and Highlights

 
 Financial year end                        31 July 
========================================  ================== 
 Announcement of results for year          17 October 2022 
  ended 31 July 2022 
========================================  ================== 
 Online Shareholder Presentation           16 November 2022 
========================================  ================== 
 Annual General Meeting                    30 November 2022 
========================================  ================== 
 CULS Conversion Date                      30 November 2022 
========================================  ================== 
 Payment date of first interim for         20 December 2022 
  2022/2023 and special dividend for 
  2021/2022 
========================================  ================== 
 Payment date of second interim dividend   21 March 2023 
  for 2022/2023 
========================================  ================== 
 CULS Conversion Date                      31 May 2023 
========================================  ================== 
 Payment date of third interim dividend    23 June 2023 
  for 2022/2023 
========================================  ================== 
 Payment date of fourth interim dividend   20 September 2023 
  for 2022/2023 
========================================  ================== 
 

Dividends

 
                 Rate       xd date         Record date      Payment date 
===============  =====  ================  ================  =============== 
Interim 2022     3.20p  24 February 2022  25 February 2022   21 March 2022 
===============  =====  ================  ================  =============== 
Interim 2022     1.60p    26 May 2022       27 May 2022      17 June 2022 
===============  =====  ================  ================  =============== 
Interim 2022     1.60p   25 August 2022    26 August 2022    16 September 
                                                                  2022 
---------------  -----  ----------------  ----------------  --------------- 
Special 2022     1.60p  24 November 2022  25 November 2022    20 December 
                                                                  2022 
---------------  -----  ----------------  ----------------  --------------- 
                 8.00p 
---------------  -----  ----------------  ----------------  --------------- 
Final 2021(A)    3.00p   6 January 2022    7 January 2022   2 February 2022 
===============  =====  ================  ================  =============== 
Special 2021(A)  0.20p   6 January 2022    7 January 2022   2 February 2022 
---------------  -----  ----------------  ----------------  --------------- 
                 3.20p 
---------------  -----  ----------------  ----------------  --------------- 
(A) Figures have been restated to reflect the 5:1 sub-division as 
 disclosed in note 14. 
 
 
                                                    31/07/2022      31/07/2021    % change 
================================================  ==============  ==============  ======== 
Total assets                                      GBP532,912,000  GBP557,183,000    -4.4 
================================================  ==============  ==============  ======== 
Total equity shareholders' funds (net assets)     GBP464,396,000  GBP487,958,000    -4.8 
================================================  ==============  ==============  ======== 
Net asset value per share (basic)(A)                 295.88p         310.90p        -4.8 
================================================  ==============  ==============  ======== 
Net asset value per share (diluted)(A)               295.25p         309.02p 
================================================  ==============  ==============  ======== 
Share price (mid market)(A)                          254.00p         266.00p        -4.5 
================================================  ==============  ==============  ======== 
Market capitalisation                             GBP398,662,000  GBP417,483,000    -4.5 
================================================  ==============  ==============  ======== 
Discount to net asset value (basic)(B)                14.2%           14.4% 
================================================  ==============  ==============  ======== 
Discount to net asset value (diluted)(B)              14.0%           13.9% 
================================================  ==============  ==============  ======== 
MSCI AC Asia ex Japan Small Cap Index (currency 
 adjusted, capital gains basis)                      1,888.43        2,052.64       -8.0 
================================================  ==============  ==============  ======== 
Net gearing(B)                                        12.1%           10.0% 
================================================  ==============  ==============  ======== 
 
Dividends and earnings 
================================================  ==============  ==============  ======== 
Total return per share (basic)(AC)                   (7.02)p          92.34p 
================================================  ==============  ==============  ======== 
Revenue return per share (basic)(AD)                  9.34p           1.66p        +462.7 
================================================  ==============  ==============  ======== 
Dividends per share(AE)                               8.00p           3.20p        +150.0 
================================================  ==============  ==============  ======== 
Dividend cover(B)                                      1.17            0.52 
================================================  ==============  ==============  ======== 
Revenue reserves(DF)                              GBP14,964,000   GBP12,868,000    +16.3 
================================================  ==============  ==============  ======== 
 
Operating costs 
================================================  ==============  ==============  ======== 
Ongoing charges ratio(B)                              0.88%           1.10% 
------------------------------------------------  --------------  --------------  -------- 
(A) Figures for 2021 have been restated 
 to reflect the 5:1 sub-division as disclosed 
 in note 14. 
(B) Considered to be an Alternative Performance 
 Measure. See below. 
(C) Measures the total earnings for the year divided by the weighted 
 average number of Ordinary shares in issue (see note 9). 
(D) Prior year restatement as disclosed 
 in note 22. 
(E) The figures for dividends per share 
 reflect the dividends for the year in which 
 they were earned. 
(F) Prior to payment of final and special 
 dividends. 
 

Strategic Report

Chairman's Statement

Results

The past year has been difficult for financial markets as the world emerges unevenly from the pandemic, with global stock markets suffering from bouts of weakness as investors digest the implications of a European war while facing inflation and the rising prospects of a global recession. But amidst this, some of the stock markets of Asia, in particular those not under the direct influence of China, have been relatively resilient; India being an example where headline indices remain relatively unchanged.

In addition, inflation in most parts of Asia has been mild compared with elsewhere in the world with Asian Central Banks being more accommodating; commodity prices, with the exception of coal, have retreated from the highs of earlier in the year and wage inflationary pressures in Asia are not as great as those anticipated in Europe. However, Asia has not been immune to the fallout from Covid, with parts of the Chinese economy still suffering from lockdowns and there remain pressures in global supply-chains.

During the period, there was also a significant rotation from growth to value stocks in Asian markets, as tightening US monetary policy drove a de-rating in expensive growth stocks with longer-dated cash-flows. The market volatility was evident in both smaller companies and their larger counterparts, with, over the period, the MSCI Asia ex Japan Small Cap index broadly tracking the larger capitalisation MSCI Asia ex Japan index.

In this environment, your Company's net asset value (NAV) total return declined 2.0% over the 12 months to 31 July 2022. While this was a drop in absolute terms, it was ahead of the MSCI Asia ex Japan Small Cap Index which fell 5.1%. It is also important to point out that the performance has also benefitted from the weakness of sterling relative to many Asian currencies and particularly the US dollar. The share price ended the period at 254p, with the discount to NAV per share to 14.0%.

One of the advantages of serving as Chairman for over a quarter of a century, is to see how these periodical seismic events might affect the future prospects of this company- I believe this is the sixth during my tenure. In this regard, I think the following points are worth making:

- As we have identified in previous statements and the reports we published to celebrate our 20th and 25th anniversaries (available on the website), Asia is the great engine of growth over the next 25 years and these events will, over time, only be a blip in that cycle;

- From an Asian perspective, a war in Europe is a long way off and while it will affect global trade, its impact on domestic markets and in particularly small companies where we invest, will have a more limited impact; and

- In times like these, opportunities to rotate out of mature, well managed businesses into ones where opportunities exist to make investments with higher growth potential at more attractive valuations occur and again this time, it is no different. The greater flexibility we granted the Managers with the lifting of market cap limit last year has widened the opportunity.

Since Hugh Young, Martin Gilbert and myself started, in 1995, as the first Directors of the Company with abrdn as the Manager, it has been immensely rewarding and satisfying to see the Company capitalise on the growth and dynamism of the Far East's diverse small-cap companies and economies, growing assets under management (AUM) from GBP34.0 million at the time of launch in 1995 to GBP532.9 million (as at 31 July 2022). We have seen the dividends grow during that period from a low of 0.11p in 1998 to 8.0p, after the share split, in the year on which we are reporting. I believe this record on both investment performance and dividend growth is amongst the best for investment companies quoted on the London Stock Exchange.

This, in particular, is thanks to Hugh Young. As the inspired Manager of the Trust since its inception, he has been the key to shaping the abrdn Far Eastern investment team into one of Asia's leading on-the-ground investors with exceptional access to companies, business leaders and policymakers across the region. In the last few years, he has been ably assisted by Gabriel Sacks and since last year, with the addition of Flavia Cheong and Neil Sun, this has further bolstered an already-impressive team.

As I have said, more often than not, in the fifty-three Chairman's Statements made to shareholders, the key to our success has been to only invest in companies with strong balance sheets, good management and excellent prospects. To identify these companies needs dedication from the Managers to seek out these investment nuggets; and the performance of the Company bears out the hard work they have done and continue to do.

It is also easy to forget the multitude of administrative matters that need attending to on a daily basis to ensure the smooth running of the Company. Over the years, the staff at abrdn have provided a seamless and efficient service and I would like to thank Charles Mearns, who has acted as Company Secretary for over 20 years and William Hemmings, who as head of Investment Trusts for 18 years has been a source of valuable advice together with my thanks to all the support staff in London, Aberdeen and Singapore both past and present.

In my last Annual Report as Chairman before stepping down in November, I am pleased to see the Trust has in place the necessary measures to take it to even greater strengths in the next 25 years and beyond.

Overview

Volatility was already creeping into global markets even before the onset of Russia's war in Ukraine. In 2022, central banks have been preoccupied with the prospect of recession and fending off inflation caused by rising commodity prices. Asian markets have proved more resilient during this unsettling period compared with other emerging markets. Inflation has been more moderate and, with post-Covid restrictions lifting, returning tourists and increased consumer spending from pent-up demand have led to a notable recovery in Southeast Asia, for example.

China was an exception. The country's 'zero-Covid' policy meant lockdowns continued to be imposed as authorities tried to contain new virus outbreaks. This dampened domestic activity and put further pressure on an economy that was already slowing as a result of a weak property market and tight regulatory conditions. As a result, China was among the region's worst performing markets during the period. It will be interesting to see if the much heralded 20th Communist Party Congress at the end of this month, besides extending the term of office of President Xi, signals any significant changes in policy; there have been hints of Central Bank easing of policy which the team in Singapore will be monitoring closely.

The Company's relatively light exposure to China buoyed performance relative to the index, but we believe the country remains a great opportunity for diligent stock pickers. With an indiscriminate sell-off in the market, your Manager added two new holdings, capitalising on more attractive valuations and reflecting a desire to gradually increase the Company's exposure to China (you can read more about this in the Investment Manager's Review section of this report).

Two changes implemented to your Company this year will help in this regard. The first is the removal of the US$1.5 billion market cap limit (at the time of initiation), which was agreed at the General Meeting in January 2022. This limit was proving a little restrictive in larger markets - especially China - and the Board believes that the removal of the cap will give your Manager greater flexibility to invest in the most compelling smaller companies in the region.

Secondly, and as referred to above, we have strengthened the investment team. During the period, we welcomed Flavia Cheong, abrdn's Head of Equities - Asia Pacific, as joint Manager alongside Hugh Young and Gabriel Sacks, and Neil Sun, who joins as an investment manager. These additions add depth and experience to your Company and will be beneficial as the team considers a potential increase in allocation to North Asia, leveraging off abrdn's deeper insights on Chinese small caps built over the past few years.

Looking elsewhere across the portfolio, there was strong share-price performance from commodity-related businesses or markets, such as those in Indonesia, or those more positively impacted by rising inflation, such as the shipping industry. Nevertheless, more export-oriented markets fared poorly, especially those associated with the tech supply-chain, such as Taiwan. Despite the marked correction in a few of the Trust's holdings, your Manager remains convinced of the structural growth for these businesses and would argue that the sell-off has thrown up opportunities to buy high-quality companies in this space.

We have also benefitted from a low exposure to Chinese domestic companies. While these have suffered in the pull back of markets, there will be considerable opportunities in the growing Chinese markets and this current reduction in values will present opportunities which will bear fruit in future years.

For a more detailed report of the Company's performance and portfolio changes, please read the Investment Manager's Review.

Dividend

In accordance with the enhanced dividend policy approved by shareholders, the Board has achieved the target dividend of 6.4p per Ordinary Share for the financial year ended 31 July 2022 (adjusted for the five for one share split that occurred on 4 February 2022) (2021 equivalent full-year dividend 3.2p after adjustment for the five for one share split) representing a 100% increase on the level of dividend paid in 2021. Dividends of 3.2p, 1.6p and 1.6p were paid in March, June and September 2022. Furthermore, I am very pleased to report that the strength of dividend generation from the portfolio has allowed the Company to declare a further special interim dividend in respect of the year ended 31 July 2022 of 1.6p per Ordinary share which will be paid on 20 December 2022 to shareholders on the register on the record date of 25 November 2022 (ex dividend 24 November 2022).

I believe that, in difficult times, this total dividend of 8.0p per share will be welcomed by shareholders especially as it is 25% higher than the annual target dividend.

The Board's policy is to maintain the progressive dividend policy of the last 25 years (including with the flexibility to pay dividends out of capital reserves where merited in the future) in order to provide shareholders with a regular level of income alongside capital growth prospects.

Share Capital and Gearing

A five for one Share split was approved by shareholders on 27 January 2022 and, with effect from 4 February 2022, each Ordinary share of 25p was sub-divided into five Ordinary shares of 5p each.

During the period we have not bought back any Ordinary shares in the market. The Board will continue to consider the use of share buy backs to both reduce the volatility of any discount and to modestly enhance the NAV for shareholders.

The Company's net gearing at 31 July 2022 was 12.1% with the majority of the debt provided by the Loan Notes. Gearing is also provided by the Convertible Unsecured Loan Stock redeemable in 2025, of which approximately GBP36.6m million remains outstanding. As at 14 October 2022, the latest practicable date, the net gearing stood at 14.0%.

Directorate

One of the important duties of the Board is to see that the members have the necessary skills to ensure that it is able to both monitor the existing mandate, but also make any necessary changes to that mandate to reflect the demands of a constantly shifting investment world. It is therefore my great pleasure to recommend the finalisation of the following appointments to the Board. Mr Lindsay Cooper joined on 15 June 2022 and Mr Alex Finn joined on 13 July 2022.

Mr Cooper brings a significant amount of Asian investment and small cap expertise to the Board and, being based in Singapore, is perfectly placed to assist in overseeing the execution of the Company's expanded investment mandate that was approved by shareholders in January 2022. After working in corporate finance in Hong Kong in the early 1990s, Lindsay co-founded Arisaig Partners in 1996, an independent Investment Management business where he had investment responsibility for the Arisaig Asia Consumer Fund. Since stepping down from day to day investment responsibility at Arisaig, Lindsay founded Chic & Unique Pte Ltd, a boutique hotels and hospitality business with operations in Asia and Europe and, more recently, founded Chi Tree Health, a preventative healthcare enterprise in Singapore.

Mr Finn brings significant accounting expertise and international business experience to the Board. He has been appointed Chairman of the Audit Committee and was a partner for twenty seven years in PwC's global financial services practice, retiring on 30 June 2022. During his career at PwC Mr Finn was responsible for the services that PwC provided internationally to a number of its largest global clients, all of which had extensive operations in Asia. He was also responsible for supporting clients in large scale accounting and financial change programmes, was PwC's EMEA insurance leader, sat on its EMEA FS leadership team and led a number of PwC's largest global audit engagements. The Board has reviewed the independence of Mr Finn and is satisfied that, following his retirement from PwC where he had no involvement in any direct or indirect work for the Company or the Management Company, Mr Finn is fully independent.

The appointment process for both new Directors was conducted using the services and expertise of Fletcher Jones, an independent recruitment consultant.

I would also like to thank Debby Guthrie who resigned from the Board on 13 April 2022, for her contribution to not only the Board but also as Chairman of the Audit Committee.

As previously indicated, I will retire from the Board at the conclusion of the AGM on 30 November 2022. I am pleased to advise that Krishna Shanmuganathan has accepted an invitation from the other Directors to succeed me as independent Chairman from the conclusion of the AGM in November. Krishna's deep ties to Asia and his experience at the Foreign and Commonwealth Office, Fidelity International and then subsequently as Managing Partner of Hakluyt Asia, based in Singapore, will bring considerable knowledge and benefit to the Board deliberation and I wish him personally, and on your behalf, every success in his new role.

The Board succession planning will continue in 2023.

Annual General Meeting

The Company's Annual General Meeting is scheduled for 12:30 p.m. on 30 November 2022 and the intention is for it to be held in person in London. The AGM will be preceded by a short presentation from the management team and following the formal business there will be a shareholder buffet lunch and the opportunity to meet the Directors. In addition to the usual ordinary business being proposed at the AGM, as special business the Board is seeking to renew the authority to issue new shares and sell treasury shares for cash at a premium without pre-emption rules applying and to renew the authority to buy back shares and either hold them in treasury for future resale (at a premium to the prevailing NAV per share) or cancel them. I would encourage all shareholders to support the Company and lodge proxy voting forms in advance of the meeting, regardless of whether they intend to attend in person.

In light of the significant take up from shareholders at the online presentation held in January 2022, in advance of the AGM, the Board has decided to hold another interactive Online Shareholder Presentation which will be held at 11:00 a.m. on 16 November 2022. At the presentation, shareholders will receive updates from the Chairman and Manager and there will be the opportunity for an interactive question and answer session. Following the online presentation, shareholders will still have time to submit their proxy votes prior to the AGM and I would encourage all shareholders to lodge their votes in advance in this manner. Full registration details can be found at: https://www.workcast.com/register?cpak=4646856687011531.

Outlook

As we look forward, investing in Asia has advantages over both the short and long term. The region is proving to be less vulnerable to the current environment than other emerging markets - inflation is less of an issue, while current account and fiscal discipline has been more resilient to the deep downturns. In the longer term, there are several strong trends that should support economic growth, notably rising affluence, increased urbanisation, growing infrastructure demand and commitment from policymakers to a greener and lower-carbon future. Geopolitics, on the other hand, remain a thorny issue, but diversification might be investors' best hedge against a polarising world.

Valuations currently appear attractive, with the MSCI AC Asia ex Japan trading at a forward price-to-earnings ratio of 12.4x (below its five-year average), with the portfolio trading at similar multiples. At these levels, your Manager believes many of the prevailing risks, such as slower growth and higher inflation, could be largely priced in.

Looking specifically at the Trust's niche, we believe that Asia's rapidly developing economies continue to provide fertile ground for quality smaller companies. Asia is home to a wealth of under-researched yet high-performing companies which are often family-run, conservative businesses with low debt levels. For the most part, these companies are leaders in their field, and have growth rates that can be divorced from global macro conditions. Over the years, your Manager's strength has been the ability to select quality companies at a reasonable price; with a focus on balance sheet resilience and sustainable earnings prospects. I believe this positions it well to continue delivering healthy returns for shareholders in these challenging times.

On a personal note, I would like to say what an honour and delight it has been to serve as your Chairman over so long a period. It has been a source of great inspiration to not only see the developments in Asia during this period but also to see the enormous achievements that this Company has enjoyed. GBP1,000 invested in 1995 is now worth GBP21,052 with dividends reinvested. I can only wish everyone associated with the Company many thanks for the huge support they have given me and great success in the future.

Nigel Cayzer

Chairman

14 October 2022

Overview of Strategy

Business Model

The business of the Company is that of an investment company which seeks to qualify as an investment trust for UK capital gains tax purposes.

Investment Objective

From 27 January 2022:

On 27 January 2022 shareholders approved an amended investment objective. The Company aims to maximise total return to shareholders over the long term from a portfolio made up predominantly of quoted smaller companies in the economies of Asia excluding Japan.

Up to 27 January 2022:

The Company aimed to maximise total return to shareholders over the long term from a portfolio made up predominantly of smaller quoted companies (with a market capitalisation of up to approximately US$1.5 billion at the time of investment) in the economies of Asia and Australasia, excluding Japan, by following the investment policy. When it was in shareholders' interests to do so, the Company reserved the right to participate in the rights issue of an investee company notwithstanding that the market capitalisation of that investee may exceed the stated ceiling.

Investment Policy

On 27 January 2022 shareholders approved an amended investment policy. The Company may invest in a diversified portfolio of securities (including equity shares, preference shares, convertible securities, warrants and other equity-related securities) predominantly issued by quoted smaller companies spread across a range of industries and economies in the Investment Region. The Investment Region includes Bangladesh, Cambodia, China, Hong Kong, India, Indonesia, Korea, Laos, Malaysia, Myanmar, Pakistan, The Philippines, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam, together with such other economies in Asia as approved by the Board.

The Company may invest up to 10% of its net assets in collective investment schemes, and up to 10% of its net assets in unquoted companies, calculated at the time of investment.

The Company may also invest in companies traded on stock markets outside the Investment Region provided over 75% of each company's consolidated revenue, operating income or pre-tax profit is earned from trading in the Investment Region or the company holds more than 75% of their consolidated net assets in the Investment Region.

When the Board considers it in shareholders' interests, the Company reserves the right to participate in rights issues by an investee company.

Risk Diversification

The Company will invest no more than 15% of its gross assets in any single holding including listed investment companies at the time of investment.

Gearing

The Board is responsible for determining the gearing strategy for the Company. Gearing is used selectively to leverage the Company's portfolio in order to enhance returns where and to the extent this is considered appropriate to do so. Gearing is subject to a maximum gearing level of 25% of NAV at the time of draw down.

Delivering the Investment Policy

The Directors are responsible for determining the investment policy and the investment objective of the Company. Day to day management of the Company's assets has been delegated, via the AIFM, to the Investment Manager, abrdn Asia. abrdn Asia invests in a diversified range of companies throughout the Investment Region in accordance with the investment policy. abrdn Asia follows a bottom-up investment process based on a disciplined evaluation of companies through direct visits by its fund managers. Stock selection is the major source of added value. No stock is bought without the fund managers having first met management. abrdn Asia estimates a company's worth in two stages, quality then price. Quality is defined by reference to management, business focus, the balance sheet and corporate governance. Price is calculated by reference to key financial ratios, the market, the peer group and business prospects. Top-down investment factors are secondary in the abrdn Asia's portfolio construction, with diversification rather than formal controls guiding stock and sector weights.

A detailed description of the investment process and risk controls employed by abrdn Asia is disclosed on pages 106 to 108 of the published Annual Report and financial statements for the year ended 31 July 2022. A comprehensive analysis of the Company's portfolio is disclosed on pages 30 to 37 of the published Annual Report and financial statements for the year ended 31 July 2022 including a description of the ten largest investments, the portfolio investments by value, sector/geographical analysis and currency/market performance. At the year end the Company's portfolio consisted of 62 holdings.

Investment Manager and Alternate Investment Fund Manager

The Company's Alternative Investment Fund Manager, appointed as required by EU Directive 2011/61/EU, is abrdn Fund Managers Limited ("aFML") (previously known as Aberdeen Standard Fund Managers Limited) which is authorised and regulated by the Financial Conduct Authority. Day to day management of the portfolio is delegated to abrdn Asia Limited ("abrdn Asia", the "Manager" or the "Investment Manager"). aFML and abrdn Asia are wholly owned subsidiaries of abrdn plc.

Comparative Indices

From 1 August 2021 the Manager has utilised the MSCI AC Asia ex Japan Small Cap Index (currency adjusted) as well as peer group comparisons for Board reporting. For periods prior to 1 August 2021, a composite index is used comprising the MSCI AC Asia Pacific ex Japan Small Cap Index (currency adjusted) up to 31 July 2021 and the MSCI AC Asia ex Japan Small Cap Index (currency adjusted) thereafter. It is likely that performance will diverge, possibly quite dramatically in either direction, from the comparative index. The Manager seeks to minimise risk by using in-depth research and does not see divergence from an index as risk.

Promoting the Company's Success

In accordance with corporate governance best practice, the Board is now required to describe to the Company's shareholders how the Directors have discharged their duties and responsibilities over the course of the financial year following the guidelines set out under section 172 (1) of the Companies Act 2006 (the "s172 Statement"). This Statement, from 'Promoting the Success of the Company' to "Long Term Investment", provides an explanation of how the Directors have promoted the success of the Company for the benefit of its members as a whole, taking into account the likely long term consequences of decisions, the need to foster relationships with all stakeholders and the impact of the Company's operations on the environment.

The purpose of the Company is to act as a vehicle to provide, over time, financial returns to its shareholders. The Company's Investment Objective is disclosed on page 12 of the published Annual Report and financial statements for the year ended 31 July 2022. The activities of the Company are overseen by the Board of Directors of the Company.

The Board's philosophy is that the Company should operate in a transparent culture where all parties are treated with respect and provided with the opportunity to offer practical challenge and participate in positive debate which is focused on the aim of achieving the expectations of shareholders and other stakeholders alike. The Board reviews the culture and manner in which the Manager operates at its regular meetings and receives regular reporting and feedback from the other key service providers.

Investment trusts, such as the Company, are long-term investment vehicles, with a recommended holding period of five or more years. Typically, investment trusts are externally managed, have no employees, and are overseen by an independent non-executive board of directors. Your Company's Board of Directors sets the investment mandate, monitors the performance of all service providers (including the Manager) and is responsible for reviewing strategy on a regular basis. All this is done with the aim of preserving and, indeed, enhancing shareholder value over the longer term.

Stakeholders

The Company's main stakeholders have been identified as its shareholders, the Manager (and Investment Manager), service providers, investee companies and debt providers. More broadly, the environment and community at large are also stakeholders in the Company. The Board is responsible for managing the competing interests of these stakeholders. Ensuring that the Manager delivers out performance for Ordinary shareholders over the longer term without adversely affecting the risk profile of the Company which is known and understood by the loan note holders and CULS holders. This is achieved by ensuring that the Manager stays within the agreed investment policy.

Shareholders

Shareholders are key stakeholders in the Company - they look to the Manager to achieve the investment objective over time. The following table describes some of the ways we engage with our shareholders:

 
 AGM                     The AGM normally provides an opportunity for the 
                          Directors to engage with shareholders, answer 
                          their questions and meet them informally. The 
                          next AGM will take place on 30 November 2022 in 
                          London. We encourage shareholders to lodge their 
                          vote by proxy on all the resolutions put forward. 
======================  =========================================================== 
 Online Shareholder      In January 2022 the Board held an online shareholder 
  Presentation            presentation which was attended by over 250 shareholders 
                          and prospective investors. 
======================  =========================================================== 
 Annual Report           We publish a full annual report each year that 
                          contains a strategic report, governance section, 
                          financial statements and additional information. 
                          The report is available online and in paper format. 
======================  =========================================================== 
 Company Announcements   We issue announcements for all substantive news 
                          relating to the Company. You can find these announcements 
                          on the website. 
======================  =========================================================== 
 Results Announcements   We release a full set of financial results at 
                          the half year and full year stage. Updated net 
                          asset value figures are announced on a daily basis. 
======================  =========================================================== 
 Monthly Factsheets      The Manager publishes monthly factsheets on the 
                          Company's website including commentary on portfolio 
                          and market performance. 
======================  =========================================================== 
 Website                 Our website contains a range of information on 
                          the Company and includes a full monthly portfolio 
                          listing of our investments as well as podcasts 
                          by the Investment Manager. Details of financial 
                          results, the investment process and Investment 
                          asia-focus.co.uk 
======================  =========================================================== 
 Investor Relations      The Company subscribes to the Manager's Investor 
                          Relations programme (further details are provided 
                          under 'Promoting the Company' below). 
======================  =========================================================== 
 

The Manager

The key service provider for the Company is the Alternative Investment Fund Manager and the performance of the Manager is reviewed in detail at each Board meeting. The Manager's investment process is outlined on pages 106 to 108 and further information about the Manager is given on page 105 of the published Annual Report and financial statements for the year ended 31 July 2022. Shareholders are key stakeholders in the Company - they are looking to the Manager to achieve the investment objective over time and to deliver a regular growing income together with some capital growth. The Board is available to meet at least annually with shareholders at the Annual General Meeting and this includes informal meetings with them over lunch following the formal business of the AGM. This is seen as a very useful opportunity to understand the needs and views of the shareholders. In between AGMs, the Directors and Manager also conduct programmes of investor meetings with larger institutional, private wealth and other shareholders to ensure that the Company is meeting their needs. Such regular meetings may take the form of joint presentations with the Investment Manager or meetings directly with a Director where any matters of concern may be raised directly.

Other Service Providers

The other key stakeholder group is that of the Company's third party service providers. The Board is responsible for selecting the most appropriate outsourced service providers and monitoring the relationships with these suppliers regularly in order to ensure a constructive working relationship. Our service providers look to the Company to provide them with a clear understanding of the Company's needs in order that those requirements can be delivered efficiently and fairly. The Board, via the Management Engagement Committee, ensures that the arrangements with service providers are reviewed at least annually in detail. The aim is to ensure that contractual arrangements remain in line with best practice, services being offered meet the requirements and needs of the Company and performance is in line with the expectations of the Board, Manager, Investment Manager and other relevant stakeholders. Reviews include those of the Company's depositary and custodian, share registrar, broker and auditors.

Principal Decisions

Pursuant to the Board's aim of promoting the long term success of the Company, the following principal decisions have been taken during the year:

Portfolio The Investment Manager's Review details the key investment decisions taken during the year and subsequently. The Investment Manager has continued to monitor the investment portfolio throughout the year under the supervision of the Board. A list of the key portfolio changes can be found in the Investment Manager's Report.

Board Investment Review During the year the Board concluded its comprehensive investment review which culminated in the following changes which were all approved by shareholders at the General Meeting held on 27 January 2022:

   1.    amend the Company's Investment Policy; 
   2.    adopt the Company's enhanced New Dividend Policy; 

3. amend the Company's Articles in order to provide flexibility to pay dividends out of capital profits in the future, and refresh the Articles more generally, including in connection with the running of Shareholder meetings following the recent pandemic;

   4.    enact a five for one Share split; and 
   5.    introduce a new five year performance-linked tender. 

Long Term Investment

The Investment Manager's investment process seeks to outperform over the longer term. The Board has in place the necessary procedures and processes to continue to promote the long term success of the Company. The Board will continue to monitor, evaluate and seek to improve these processes as the Company continues to grow over time, to ensure that the investment proposition is delivered to shareholders and other stakeholders in line with their expectations.

Key Performance Indicators (KPIs)

The Board uses a number of financial performance measures to assess the Company's success in achieving its objective and to determine the progress of the Company in pursuing its investment policy. The main KPIs identified by the Board in relation to the Company, which are considered at each Board meeting, are as follows:

 
 KPI                    Description 
=====================  ============================================================ 
 NAV Return (per        The Board considers the Company's NAV total return 
  share)                 figures to be the best indicator of performance over 
                         time and is therefore the main indicator of performance 
                         used by the Board. The figures for this year and 
                         for the past 1, 3, 5, 10 years and since inception 
                         are set out on page 24 of the published Annual Report 
                         and financial statements for the year ended 31 July 
                         2022. 
=====================  ============================================================ 
 Performance against    The Board also measures performance against the MSCI 
  comparative indices    AC Asia ex Japan Small Cap Index (currency adjusted) 
                         as well as peer group comparisons for Board reporting. 
                         For periods prior to 1 August 2021, a composite index 
                         is used comprising the MSCI AC Asia Pacific ex Japan 
                         Small Cap Index (currency adjusted) up to 31 July 
                         2021 and the MSCI AC Asia ex Japan Small Cap Index 
                         (currency adjusted) thereafter. Graphs showing performance 
                         are shown on pages 26 and 27 of the published Annual 
                         Report and financial statements for the year ended 
                         31 July 2022. At its regular Board meetings the Board 
                         also monitors share price performance relative to 
                         competitor investment trusts over a range of time 
                         periods, taking into consideration the differing 
                         investment policies and objectives employed by those 
                         companies. 
=====================  ============================================================ 
 Share price            The Board also monitors the price at which the Company's 
  (on a total return     shares trade relative to the MSCI Asia ex Japan Small 
  basis)                 Cap Index (sterling adjusted) on a total return basis 
                         over time. A graph showing the total NAV return and 
                         the share price performance against the comparative 
                         index is shown on pages 26 and 27 of the published 
                         Annual Report and financial statements for the year 
                         ended 31 July 2022. 
=====================  ============================================================ 
 Discount/Premium       The discount/premium relative to the NAV per share 
  to NAV                 represented by the share price is closely monitored 
                         by the Board. The objective is to avoid large fluctuations 
                         in the discount relative to similar investment companies 
                         investing in the region by the use of share buy backs 
                         subject to market conditions. A graph showing the 
                         share price premium/(discount) relative to the NAV 
                         is also shown on page 25 of the published Annual 
                         Report and financial statements for the year ended 
                         31 July 2022. 
=====================  ============================================================ 
 Dividend               The Board has set a target dividend of 6.4p per share 
                         and the aim is to maintain or increase the Ordinary 
                         dividend so that shareholders can rely on a consistent 
                         stream of income. Dividends paid over the past 10 
                         years are set out on page 24 of the published Annual 
                         Report and financial statements for the year ended 
                         31 July 2022. 
=====================  ============================================================ 
 

Principal Risks and Uncertainties

There are a number of risks which, if realised, could have a material adverse effect on the Company and its financial condition, performance and prospects. Risks are identified and documented through a risk management framework and further details on the risk matrix are provided in the Directors' Report. The Board has undertaken a robust review of the principal risks and uncertainties facing the Company including those that would threaten its business model, future performance, solvency or liquidity. Those principal risks are disclosed in the table below together with a description of the mitigating actions taken by the Board. The principal risks associated with an investment in the Company's Shares are published monthly on the Company's factsheet or they can be found in the pre-investment disclosure document published by the Manager, both of which are available on the Company's website.

The Board also has a process to review longer term risks and consider emerging risks and if any of these are deemed to be significant these risks are categorised, rated and added to the risk matrix.

The Board notes that there are a number of contingent risks stemming from the Covid-19 pandemic and the conflict in Ukraine that may impact the operation of the Company. These include investment risks surrounding the companies in the portfolio such as employee absence, reduced demand, reduced turnover and global supply chain breakdowns. The Investment Manager will continue to review carefully the composition of the Company's portfolio and to be pro-active in taking investment decisions where necessary. Operationally, third party services have continued to be supplied seamlessly to the Company throughout the Covid-19 pandemic and the Board will continue to monitor arrangements in the form of periodic updates from the Manager and Investment Manager.

In addition to the risks listed below, the Board is also very conscious of the risks emanating from increased environmental, social and governance challenges. The recent scrutiny by western governments of human rights violations in Xinjiang is an example of the need for continued vigilance regarding the supply chain exposure of investee companies and the fair and humane treatment of workers. Likewise, as climate change pressures mount, the Board continues to monitor, through its Manager, the potential risk that investee companies may fail to keep pace with the appropriate rates of change and adaption.

In all other respects, the Company's principal risks and uncertainties have not changed materially since the date of this Annual Report and are not expected to change materially for the current financial year.

 
 Description                                 Mitigating Action 
==========================================  =========================================== 
 Investment strategy and objectives          The Board keeps the level of discount 
  - the setting of an unattractive            at which the Company's shares trade 
  strategic proposition to the market         as well as the investment objective 
  and the failure to adapt to changes         and policy under review and in particular 
  in investor demand may lead to the          holds an annual strategy meeting 
  Company becoming unattractive to            where the Board reviews updates 
  investors, a decreased demand for           from the Investment Manager, investor 
  shares and a widening discount.             relations reports and the Broker 
                                              on the market. In particular, the 
  Risk Unchanged during Year                  Board is updated at each Board meeting 
                                              on the make-up of and any movements 
                                              in the shareholder register. 
==========================================  =========================================== 
 Investment portfolio and investment         The Board sets, and monitors, its 
  management : investing outside of           investment restrictions and guidelines, 
  the investment restrictions and             and receives regular board reports 
  guidelines set by the Board could           which include performance reporting 
  result in poor performance and inability    on the implementation of the investment 
  to meet the Company's objectives,           policy, the investment process and 
  as well as a weakening discount.            application of the guidelines. The 
                                              Investment Manager is in attendance 
  Risk Unchanged during Year                  at all Board meetings. The Board 
                                              also monitors the Company's share 
                                              price relative to the NAV. 
==========================================  =========================================== 
 Financial obligations (Gearing):            The Board sets a gearing limit and 
  the requirement for the Company             receives regular updates on the 
  to meet its financial obligations,          actual gearing levels the Company 
  or increasing the level of gearing,         has reached from the Investment 
  could result in the Company becoming        Manager together with the assets 
  over-geared or unable to take advantage     and liabilities of the Company and 
  of potential opportunities and result       reviews these at each Board meeting. 
  in a loss of value to the Company's         In addition, abrdn Fund Managers 
  shares. It could also result in             Limited, as alternative investment 
  the Company being unable to meet            fund manager, has set an overall 
  the interest repayments due on the          leverage limit of 2x on a commitment 
  CULS and Loan Note holders.                 basis (2.5x on a gross notional 
                                              basis) and includes updates in its 
  Risk Unchanged during Year                  reports to the Board. 
==========================================  =========================================== 
 Financial and regulatory: the financial     The financial risks associated with 
  risks associated with the portfolio         the Company include market risk, 
  could result in losses to the Company.      liquidity risk and credit risk, 
  In addition, failure to comply with         all of which are mitigated by the 
  relevant regulation (including the          Investment Manager. Further details 
  Companies Act, the Financial Services       of the steps taken to mitigate the 
  and Markets Act, the Alternative            financial risks associated with 
  Investment Fund Managers Directive,         the portfolio are set out in note 
  Accounting Standards and the listing        19 to the financial statements. 
  rules, disclosure and prospectus            The Board relies upon the abrdn 
  rules) may have an impact on the            Group to ensure the Company's compliance 
  Company.                                    with applicable regulations and 
                                              from time to time employs external 
  Risk Unchanged during Year                  advisors to advise on specific concerns. 
==========================================  =========================================== 
 Operational: the Company is dependent       The Board receives reports from 
  on third parties for the provision          the Manager on internal controls 
  of all systems and services (in             and risk management at each Board 
  particular, those of abrdn) and             meeting. It receives assurances 
  any control failures and gaps in            from all its significant service 
  these systems and services could            providers, as well as back to back 
  result in a loss or damage to the           assurances where activities are 
  Company.                                    themselves sub-delegated to other 
                                              third party providers with which 
  Disruption, including that caused           the Company has no direct contractual 
  by information technology breakdown         relationship. The assurance reports 
  or another cyber-related issue,             include an independent assessment 
  could prevent, for example, the             of the effectiveness of risks and 
  functioning of the Company; accurate        internal controls at the service 
  reporting to the Board or shareholders;     providers including their planning 
  or payment of dividends in accordance       for business continuity and disaster 
  with the announced timetable                recovery scenarios, together with 
                                              their policies and procedures designed 
  Risk Unchanged during Year                  to address the risks posed to the 
                                              Company's operations by cyber-crime. 
                                              Further details of the internal 
                                              controls which are in place are 
                                              set out in the Directors' Report. 
==========================================  =========================================== 
 Investing in unlisted securities:           The Board recognises that investing 
  the Company has the ability to invest       in unlisted securities carries a 
  in unlisted securities, although            higher risk/reward profile. Accordingly 
  no such investments have been made          it seeks to mitigate this risk by 
  to date. Unquoted investments are           limiting investment into such securities 
  long-term in nature and they may            to 10% of the Company's net assets 
  take a considerable period to be            (calculated at the time of investment). 
  realised. Unquoted investments are          For the year ended 31 July 2022 
  less readily realisable than quoted         no unlisted investments were made. 
  securities. Such investments may 
  therefore carry a higher degree 
  of risk than quoted securities. 
  In valuing investments the Company 
  may rely to a significant extent 
  on the accuracy of financial and 
  other information provided to the 
  Manager as well as the performance 
  of listed peer multiples which may 
  impact unquoted valuations negatively. 
 
  Risk Unchanged during Year 
==========================================  =========================================== 
 Market and F/X: insufficient oversight      The Manager's risk department reviews 
  or controls over financial risks,           investment risk and a review of 
  including market risk, foreign currency     credit worthiness of counterparties 
  risk, liquidity risk and credit             is undertaken by its Counterparty 
  risk could result in a loss to the          Credit Risk team. The Company does 
  Company.                                    not hedge foreign currency exposure 
                                              but it may, from time to time, partially 
  Risk Increased during Year                  mitigate it by borrowing in foreign 
                                              currencies. 
==========================================  =========================================== 
 Major market event or geo-political         External risks over which the Company 
  risk - The Company is exposed to            has no control are always a risk. 
  stockmarket volatility or illiquidity       The Manager monitors the Company's 
  as a result of a major market shock         portfolio and is in close communication 
  due to a national or global crisis.         with the underlying investee companies 
  The impact of such risks, associated        in order to navigate and guide the 
  with the portfolio or the Company           Company through macroeconomic and 
  itself, could result in disruption          geopolitical risks. The Manager 
  to the operations of the Company            continues to assess and review the 
  and losses.                                 investment risks arising from the 
                                              resurgence of Covid-19 and the impact 
  Risk Increased during Year                  of events in Ukraine on companies 
                                              in the portfolio and takes the necessary 
                                              investment decisions. The Manager 
                                              monitors the potential for increased 
                                              military tensions in East Asia, 
                                              and other potential regional conflict. 
==========================================  =========================================== 
 

Promoting the Company

The Board recognises the importance of promoting the Company to prospective investors both for improving liquidity and enhancing the value and rating of the Company's shares. The Board believes an effective way to achieve this is through subscription to and participation in the promotional programme run by the Manager on behalf of a number of investment trusts under its management. The Company's financial contribution to the programme is matched by the Manager. The Manager reports quarterly to the Board giving analysis of the promotional activities as well as updates on the shareholder register and any changes in the make-up of that register.

The purpose of the programme is both to communicate effectively with existing shareholders and to gain new shareholders with the aim of improving liquidity and enhancing the value and rating of the Company's shares. Communicating the long-term attractions of your Company is key and therefore the Company also supports the Manager's investor relations programme which involves regional roadshows, promotional and public relations campaigns.

Board Diversity

The Board recognises the importance of having a range of skilled, experienced individuals with the right knowledge represented on the Board in order to allow the Board to fulfil its obligations. The Board also recognises the benefits and is supportive of the principle of diversity in its recruitment of new Board members. The Board will not display any bias for age, gender, race, sexual orientation, religion, ethnic or national origins, or disability in considering the appointment of its Directors. Although the Board does not set diversity targets, it is mindful of best practice in this area, and the Board will continue to evolve in 2023, with the stated aim of improving its diversity. At 31 July 2022, there were five male Directors and one female Director on the Board.

Environmental, Social and Governance ("ESG") Engagement

Whilst the management of the Company's investments is not undertaken with any specific instructions to exclude certain asset types or classes, the Investment Manager embeds ESG into the research of each asset class as part of the investment process. ESG investment is about active engagement, with the goal of improving the performance of assets held around the world.

The Investment Manager aims to make the best possible investments for the Company, by understanding the whole picture of the investments - before, during and after an investment is made. That includes understanding the environmental, social and governance risks and opportunities they present - and how these could affect longer-term performance. Environmental, social and governance considerations underpin all investment activities. With 1,000+ investment professionals, the Investment Manager is able to take account of ESG factors in its company research, stock selection and portfolio construction - supported by more than 40 ESG specialists around the world. Please refer to pages 109 to 111 of the published Annual Report and financial statements for the year ended 31 July 2022 for further detail on the Investment Manager's ESG policies applicable to the Company.

The Company has no employees as the Board has delegated day to day management and administrative functions to abrdn Fund Managers Limited. There are therefore no disclosures to be made in respect of employees. The Company's socially responsible investment policy is outlined above.

Due to the nature of the Company's business, being a company that does not offer goods and services to customers, the Board considers that it is not within the scope of the Modern Slavery Act 2015 because it has no turnover. The Company is therefore not required to make a slavery and human trafficking statement. The Board considers the Company's supply chains, dealing predominantly with professional advisors and service providers in the financial services industry, to be low risk in relation to this matter.

The Company has no greenhouse gas emissions to report from the operations of its business, nor does it have responsibility for any other emissions producing sources under the Companies Act 2006 (Strategic Report and Directors' Reports) Regulations 2013.

Viability Statement

The Company does not have a formal fixed period strategic plan but the Board formally considers risks and strategy at least annually. The Board considers the Company, with no fixed life, to be a long term investment vehicle, but for the purposes of this viability statement has decided that a period of three years is an appropriate period over which to report. The Board considers that this period reflects a balance between looking out over a long term horizon and the inherent uncertainties of looking out further than three years.

In assessing the viability of the Company over the review period the Directors have conducted a robust review of the principal risks, focusing upon the following factors:

   -      The principal risks detailed in the Strategic Report; 
   -      The ongoing relevance of the Company's investment objective in the current environment; 

- The demand for the Company's Shares evidenced by the historical level of premium and or discount;

   -      The level of income generated by the Company; 
   -      The level of gearing and flexibility of the Company's Loan Stock and Loan Notes; and 

- The liquidity of the Company's portfolio including the results of stress test analysis performed by the Manager under a wide number of market scenarios.

In making this assessment, the Board has examined scenario analysis showing the impact of historic large economic shocks on the value and level of liquidity of the portfolio. This included modelling a further global pandemic and the global financial crisis of 2008 and how these factors might affect the Company's prospects and viability in the future.

Accordingly, taking into account the Company's current position, the fact that the Company's investments are mostly liquid and the potential impact of its principal risks and uncertainties, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due for a period of three years from the date of this Report. In making this assessment, the Board has considered that matters such as significant economic or stock market volatility, a substantial reduction in the liquidity of the portfolio or changes in investor sentiment could have an impact on its assessment of the Company's prospects and viability in the future.

Future

The Board's view on the general outlook for the Company can be found in the Chairman's Statement whilst the Investment Manager's views on the outlook for the portfolio are included in the Investment Manager's Review.

The Strategic Report has been approved by the Board and signed on its behalf by:

Nigel Cayzer,

Chairman

14 October 2022

Investment Manager's Review

Performance review

Asian equities fared well during the first half of the period as vaccine programmes led to an easing of lockdown restrictions and an economic recovery. However, there has been a pronounced risk-off trade in place since the turn of the year, with investors rattled by disruption to global supply chains, soaring inflation, rising interest rates and Russia's invasion of Ukraine. This has manifested itself in investors rotating away from more expensive areas of the market - such as high-growth companies - towards value. When market conditions are as volatile and the macroeconomic backdrop as uncertain as they are currently, sticking to our investment process becomes even more important. The rigour that is central to our process has stood us in good stead this year, enabling us to deliver solid outperformance for shareholders.

Your Company benefitted from being overweight Indonesia, as the market was among the strongest in the Asian region. The Indonesian economy rebounded as the country emerged from Covid-related restrictions and commodity prices surged. Further, stock selection was good, with AKR Corporindo among the standouts after announcing consecutive record quarters for earnings. This was thanks to lower expenses and sustained strength in margins in its transmission and distribution division. The company is a beneficiary of a commodity upcycle, as it provides a boost to fuel sales and chemical-price inflation improves profitability as the company has fixed-percentage distribution margins. Medikaloka Hermina's share price also fared well. The company is rapidly increasing its network of hospitals to meet growing demand for medical services across the country, and profits more than doubled in 2021. The stock was also supported in the latter part of the period by major Indonesian conglomerate Astra International raising its stake in the company.

Elsewhere in Southeast Asia, stock selection in Malaysia and our exposure to Vietnam further contributed to performance. In Vietnam, IT-services business FPT Corp benefitted from the continued need for corporates to transition to the cloud and adapt their systems to newer technologies. Property developer Nam Long benefitted from a period of relatively loose monetary policy as well as from a housing recovery - although inflation pressure in recent months has turned Vietnam's central bank more cautious. Turning to North Asia, the fund's underweight to China served us well, given the raft of headwinds facing companies there, including macro and regulatory challenges, Beijing's zero-Covid policy and accumulated stress in the property sector. Chinese equities sold-off further this year in response to China's temporary lockdown of major cities like Shanghai to curb the spread of Covid-19.

Hong Kong-listed dry-bulk shipper Pacific Basin , on the other hand, was among the top contributors to performance. The company continues to enjoy a period of higher profits and better earnings visibility, given tight industry supply, resulting in large dividend payouts that have significantly enhanced shareholder returns. Elsewhere, shares in M.P. Evans , which operates plantations in Indonesia, traded higher due to the sharp rise in palm-oil prices, while Indian digital-advertising business Affle rose as revenue growth continues to exceed expectations. In addition, the firm is well positioned to increase profitability in other emerging markets, as underlined by its recent acquisition in Latin America.

Your Company's exposure elsewhere in India dragged on performance. Elevated energy and commodity prices earlier this year contributed to inflation pressure that prompted the Reserve Bank of India to embark on raising interest rates. Higher prices combined with wavering outlook for global growth weighed on shares. Towards the end of the review period, Indian equities rebounded sharply, but the fund's underweight position relative to the comparative index proved costly. The Trust's holding in Vijaya Diagnostic Centre sold off amid growing concerns over competition in the diagnostics sector. In our view, the market has overestimated the importance of price and underappreciated more important business drivers such as branding, trust and service quality. Godrej Agrovet also lagged and we decided to divest the position to pursue other investments with greater earnings visibility

Further, the rotation away from technology stocks impacted the Trust's performance, with holdings in the tech-heavy markets of Taiwan and South Korea not immune from the broader sell-off in the sector globally. This included the likes of Taiwan Union Technology, Park Systems, Koh Young Technology and Douzone Bizon . Also in Taiwan, momo.com underperformed after a strong period of outperformance, as investors gravitated away from high-growth companies, despite the company reporting strong quarterly results.

Your Company's exposure to Sri Lanka, through its holding in conglomerate John Keells, hurt performance given the country's turbulent economic and political backdrop. This manifested itself primarily via a devaluation of the currency, as the company's operations continue to recover from Covid-induced challenges and the share price in local currency terms has been relatively stable. Despite the undoubted challenges Sri Lanka faces, we believe there is value in John Keell's shares and feel the company is in a comfortable enough position to continue investing in its businesses, which is likely to strengthen its competitive moat over the long-term.

Portfolio activity

We think market volatility has created a price disconnect that is best exploited through a focus on company fundamentals. In line with this view, we took the opportunity to introduce some quality businesses that are well placed to ride on structurally growing themes, such as health care and technology. This should also help us mitigate the downside risks to growth from inflation. In a similar vein, we sold-out of some companies where we were less convinced of their long-term prospects, either due to disappointing execution or as a result of a rapidly changing macroeconomic environment.

As referenced in the Chairman's statement, we decided to increase the Trust's exposure to China following a sharp pullback in valuations This included introducing Sinoma Science and Technology , one of the largest wind-turbine blade producers in China and the third largest battery separator maker. Sinoma operates with the entrepreneurial culture of a private enterprise but, as a state-owned enterprise, has better access to resources, capital and research and development capabilities. We view the stock as a proxy for rising demand for renewable energy, including both wind and lithium batteries. Therefore, as well as being a high-quality operator, it has strong ESG credentials. We also added Joinn Laboratories, which offers drug safety assessment services on the mainland. Being an early mover in innovative drugs, Joinn has a solid track record, while its services cover the discovery, pre-clinical and clinical trial stages, underpinned by research excellence and experienced management.

We also purchased shares in South Korea's Leeno Industrial , which designs and manufactures equipment that is vital in the testing process of most electronic products. It is the global market leader in an industry where barriers to entry are high due to the considerable upfront investment required. Leeno supplies the largest semiconductor manufacturers globally and has a well-diversified customer base, spanning over a thousand clients. We are also positive about its longer-term prospects thanks to strong growth in end markets driven by 5G, artificial intelligence, medical devices and autonomous driving and electric vehicles. This is all backed by excellent financials. Its healthy free cash flow and net-cash balance sheet enables it to fund its capex and working capital internally and it consistently generates a return on equity in the high teens. Other additions to the Trust during the period include Andes Technology, MapmyIndia, IPH and Vijaya Diagnostic Centre.

Meanwhile, we divested the position in Singapore's Raffles Medical Group. Despite the firm announcing a good full-year result in February, we were concerned about the sustainability of Covid-related revenue and expect the business to see earnings recede for a period of time. Other exits include Aeon Credit Service Asia, Aeon Thana Sinsap, Goodyear, Orix Leasing, Ujjivan Financial Services, Yantai China Pet Foods and YNH Property.

Outlook

We expect Asian markets to remain volatile as the prevailing stress points of rising inflation - aggravated by the Ukraine conflict - and monetary policy normalisation continue to raise the probability of a global economic recession. China's economy also remains weak and although Beijing has adopted a more pro-growth stance of late, continued monetary and fiscal support will be required to revive economic activity and much will depend on the extent to which the government decides to loosen its 'zero-Covid' measures. Elsewhere across the region, the recovery in Southeast Asia is gathering pace amid further progress in the reopening of economies.

Despite serious macroeconomic and geopolitical pressures, we have yet to see significant deterioration in company fundamentals across the region, and the operating performance of the Trust's holdings has proven to be resilient. Corporate Asia will continue to battle the twin challenges of higher input costs and rising interest rates, but we remain encouraged about your companies' pricing power and debt-free balance sheets.

Despite the more uncertain near-term outlook, our confidence in the long-term growth prospects for the Asian region remains undimmed. The opportunities for growth are plentiful, especially within the smaller companies' space, and we remain positioned around structural growth themes like domestic consumption, technology and green energy. Indeed, the turbulence in markets has resulted in more palatable valuations, creating enticing opportunities for investors like us who are here for the long run.

Flavia Cheong, Gabriel Sacks, Neil Sun & Hugh Young

abrdn Asia Limited

14 October 2022

Results

Performance (total return)

 
                                         1 year    3 year    5 year   10 year     Since 
                                        % return  % return  % return  % return  inception 
======================================  ========  ========  ========  ========  ========= 
Share price(A)                            -1.7     +18.0     +31.9     +102.8    +2005.2 
======================================  ========  ========  ========  ========  ========= 
Net asset value per Ordinary share 
 - diluted(AB)                            -2.0     +20.2     +34.8     +130.6    +2115.6 
======================================  ========  ========  ========  ========  ========= 
MSCI AC Asia ex Japan Small Cap Index 
 (currency adjusted)                      -5.1     +31.9     +32.6     +125.3      n/a 
======================================  ========  ========  ========  ========  ========= 
(A) Considered to be an Alternative Performance Measure (see below 
 for more information). 
(B) 1 year return calculated on a diluted basis as CULS is "in the 
 money". All other returns are calculated on a diluted basis. 
Source: abrdn, Morningstar, Lipper & MSCI 
 

Ten Year Financial Record

 
Year to 31 July            2013     2014     2015     2016     2017     2018     2019     2020     2021     2022 
========================  =======  =======  =======  =======  =======  =======  =======  =======  =======  ======= 
Total revenue (GBP'000)   11,512   11,427   14,746   10,992   13,896   14,673   14,632   13,595    9,624   18,071 
------------------------  -------  -------  -------  -------  -------  -------  -------  -------  -------  ------- 
Per share (p)(A) 
========================  =======  =======  =======  =======  =======  =======  =======  =======  =======  ======= 
Net revenue return(B)      2.77     2.29     3.64     1.84     3.86     3.85     4.33     4.29     1.66     9.34 
========================  =======  =======  =======  =======  =======  =======  =======  =======  =======  ======= 
Total return               55.09   (6.29)   (10.03)   33.08    34.46    7.36     15.64   (36.51)   92.34   (7.02) 
========================  =======  =======  =======  =======  =======  =======  =======  =======  =======  ======= 
Net ordinary dividends 
 paid/proposed             2.00     2.00     2.10     2.10     2.40     2.60     2.80     2.90     3.00     6.40 
========================  =======  =======  =======  =======  =======  =======  =======  =======  =======  ======= 
Net special dividends 
 paid/proposed             0.60     0.60     0.90       -      0.80     0.80     1.00     0.90     0.20     1.60 
------------------------  -------  -------  -------  -------  -------  -------  -------  -------  -------  ------- 
Net asset value per 
 share (p)(A) 
========================  =======  =======  =======  =======  =======  =======  =======  =======  =======  ======= 
Basic                     202.76   193.78   181.23   213.78   247.09   246.37   260.11   221.29   310.90   295.88 
========================  =======  =======  =======  =======  =======  =======  =======  =======  =======  ======= 
Diluted                   198.56   190.50   179.26   208.60   238.50     n/a      n/a      n/a    309.02   295.25 
------------------------  -------  -------  -------  -------  -------  -------  -------  -------  -------  ------- 
Shareholders' funds 
 (GBP'000)                382,932  369,118  343,967  383,735  430,105  433,706  441,010  358,956  487,958  464,396 
------------------------  -------  -------  -------  -------  -------  -------  -------  -------  -------  ------- 
(A) Figures for 2013-2021 have been restated to reflect the 5:1 sub-division 
 as disclosed in note 14. 
(B) Figure for 2021 adjusted as disclosed in note 22. 
 

Ten Largest Investments

As at 31 July 2022

 
 3.5%             Affle India                       3.5%             AKR Corporindo 
   Total assets                                       Total assets 
                  A consumer technology                              AKR is one of the main 
                   business operating a                               players in industrial 
                   data platform that helps                           fuel in Indonesia, which 
                   direct digital advertising.                        has a high entry barrier. 
                   It is dominant in India                            Its key strength is 
                   where digitalisation                               its extensive infrastructure 
                   has reached an inflection                          and logistic facilities 
                   point. This should support                         throughout the country. 
                   growth for several years. 
 
---------------  ------------------------------    ---------------  -------------------------------- 
 3.3%                                               3.2%             Park Systems Corporation 
   Total assets   AEM Holdings                        Total assets 
                  A Singapore-based provider                         The Korean company is 
                   of advanced semiconductor                          the leading developer 
                   chip testing services                              of atomic force microscopes, 
                   that has embedded itself                           a nascent technology 
                   in chipmaker Intel's                               that could have broad 
                   global supply chain.                               industrial application 
                                                                      in sectors such as chip-making 
                                                                      and biotechnology. The 
                                                                      company's financials 
                                                                      are sound, despite significant 
                                                                      upfront sales and distribution 
                                                                      costs. This provides 
                                                                      a solid base for earnings 
                                                                      to grow when orders 
                                                                      return. 
 
---------------  ------------------------------    ---------------  -------------------------------- 
 3.2%             Pacific Basin Shipping            3.0%             MOMO.com 
   Total assets                                       Total assets 
                  Pacific Basin is a Hong                            Momo, the largest online 
                   Kong-based dry bulk shipping                       retailer in Taiwan, 
                   group with a favourable                            serves as a nice proxy 
                   demand outlook, supported                          for consumer growth 
                   by an improving global                             in the country, as it 
                   economy and reopening                              is benefiting from the 
                   prospects.                                         shift to online from 
                                                                      both consumers and vendors. 
 
---------------  ------------------------------    ---------------  -------------------------------- 
 3.0%             Sinoma Science & Technology       2.9%             FPT Corporation 
   Total assets    - A                                Total assets 
                  One of the largest wind                            FPT is a diversified 
                   turbine blade producers                            technology group with 
                   in China and the third                             a fast-growing software 
                   largest battery separator                          outsourcing business. 
                   maker, which is backed                             It also owns a telecoms 
                   by strong R&D capability                           unit, an electronics 
                   and support from its                               retailing company, and 
                   parent group. We view                              has interests in other 
                   the stock as a proxy                               sectors, such as education. 
                   for the growth of wind                             We are upbeat about 
                   energy.                                            the profitability prospects 
                                                                      of the various segments, 
                                                                      given its entrepreneurial 
                                                                      management. 
 
---------------  ------------------------------    ---------------  -------------------------------- 
 2.8%                                               2.8%             Medikaloka Hermina 
   Total assets   Nam Long Invst Corporation          Total assets 
                  A reputable Vietnamese                             Medikaloka Hermina is 
                   developer in Ho Chi Minh                           the leading hospital 
                   City that focuses on                               chain in Indonesia built 
                   the affordable housing                             for the mass market, 
                   segment, with decent                               being the lowest cost 
                   land bank and promising                            operator that has been 
                   project pipeline.                                  able to make decent 
                                                                      margins at lower charges. 
                                                                      It is well positioned 
                                                                      for the growing penetration 
                                                                      and awareness of health 
                                                                      care in the country. 
 

Portfolio

 
As at 31 July 2022 
=========================================================================================================== 
                                                                               Valuation  Total   Valuation 
                                                                                 2022     assets    2021 
Company                       Industry                        Country           GBP'000     %      GBP'000 
============================  ==============================  ===============  =========  ======  ========= 
Affle India                   Media                           India             18,847     3.5     17,554 
============================  ==============================  ===============  =========  ======  ========= 
                              Oil, Gas & Consumable 
AKR Corporindo                 Fuels                          Indonesia         18,389     3.5      9,589 
============================  ==============================  ===============  =========  ======  ========= 
                              Semiconductors & 
AEM Holdings                   Semiconductor Equipment        Singapore         17,802     3.3     14,267 
============================  ==============================  ===============  =========  ======  ========= 
                              Electronic Equipment, 
Park Systems Corporation       Instruments & Components       South Korea       17,120     3.2     21,736 
============================  ==============================  ===============  =========  ======  ========= 
Pacific Basin Shipping        Marine                          Hong Kong         17,104     3.2     24,170 
============================  ==============================  ===============  =========  ======  ========= 
                              Internet & Direct 
MOMO.com                       Marketing Retail               Taiwan            16,160     3.0     33,767 
============================  ==============================  ===============  =========  ======  ========= 
Sinoma Science & Technology 
 - A                          Chemicals                       China             15,756     3.0        - 
============================  ==============================  ===============  =========  ======  ========= 
FPT Corporation               IT Services                     Vietnam           15,444     2.9     12,894 
============================  ==============================  ===============  =========  ======  ========= 
                              Real Estate Management 
Nam Long Invest Corporation    & Development                  Vietnam           15,030     2.8     15,279 
============================  ==============================  ===============  =========  ======  ========= 
                              Health Care Providers 
Medikaloka Hermina             & Services                     Indonesia         14,656     2.8     11,704 
----------------------------  ------------------------------  ---------------  ---------  ------  --------- 
Top ten investments                                                             166,308    31.2 
----------------------------  ------------------------------  ---------------  ---------  ------  --------- 
Cyient                        Software                        India             14,016     2.6     17,445 
============================  ==============================  ===============  =========  ======  ========= 
M.P. Evans Group              Food Products                   United Kingdom    13,857     2.6     11,660 
============================  ==============================  ===============  =========  ======  ========= 
                              Oil, Gas & Consumable 
Aegis Logistics                Fuels                          India             13,716     2.6     13,799 
============================  ==============================  ===============  =========  ======  ========= 
Dah Sing Financial 
 Holdings                     Banks                           Hong Kong         13,682     2.6     11,709 
============================  ==============================  ===============  =========  ======  ========= 
Mega Lifesciences (Foreign)   Pharmaceuticals                 Thailand          13,524     2.6     10,578 
============================  ==============================  ===============  =========  ======  ========= 
Bank OCBC NISP                Banks                           Indonesia         13,356     2.5     13,593 
============================  ==============================  ===============  =========  ======  ========= 
Joinn Laboratories            Life Sciences Tools 
 China                         & Services                     China             12,745     2.4        - 
============================  ==============================  ===============  =========  ======  ========= 
UIE                           Food Products                   Denmark           12,352     2.3     10,157 
============================  ==============================  ===============  =========  ======  ========= 
Oriental Holdings             Automobiles                     Malaysia          12,281     2.3      8,792 
============================  ==============================  ===============  =========  ======  ========= 
Precision Tsugami China 
 Corporation                  Machinery                       China             11,973     2.2     12,403 
----------------------------  ------------------------------  ---------------  ---------  ------  --------- 
Top twenty investments                                                          297,810    55.9 
----------------------------  ------------------------------  ---------------  ---------  ------  --------- 
Sunonwealth Electric 
 Machinery Industry           Machinery                       Taiwan            11,071     2.1     10,423 
============================  ==============================  ===============  =========  ======  ========= 
Asian Terminals               Transportation Infrastructure   Philippines       10,161     1.9      9,852 
============================  ==============================  ===============  =========  ======  ========= 
Millennium & Copthorne        Hotels, Restaurants 
 Hotels New Zealand(A)         & Leisure                      New Zealand        9,808     1.8     10,626 
============================  ==============================  ===============  =========  ======  ========= 
AEON Credit Service 
 (M)                          Consumer Finance                Malaysia           9,701     1.8      7,553 
============================  ==============================  ===============  =========  ======  ========= 
                              Real Estate Management 
Cebu Holdings                  & Development                  Philippines        9,664     1.8     12,069 
============================  ==============================  ===============  =========  ======  ========= 
                              Real Estate Management 
Bukit Sembawang Estates        & Development                  Singapore          9,322     1.7      9,186 
============================  ==============================  ===============  =========  ======  ========= 
Sporton International         Professional Services           Taiwan             9,123     1.7      9,619 
============================  ==============================  ===============  =========  ======  ========= 
Ultrajaya Milk Industry 
 & Trading                    Food Products                   Indonesia          9,030     1.7      8,525 
============================  ==============================  ===============  =========  ======  ========= 
Hana Microelectronics         Electronic Equipment, 
 (Foreign)                     Instruments & Components       Thailand           8,736     1.7     14,304 
============================  ==============================  ===============  =========  ======  ========= 
IPH                           Professional Services           Australia          7,940     1.5        - 
----------------------------  ------------------------------  ---------------  ---------  ------  --------- 
Top thirty investments                                                          392,366    73.6 
----------------------------  ------------------------------  ---------------  ---------  ------  --------- 
John Keells Holdings          Industrial Conglomerates        Sri Lanka          7,640     1.4     13,941 
============================  ==============================  ===============  =========  ======  ========= 
                              Real Estate Management 
Prestige Estates Projects      & Development                  India              7,162     1.3      5,521 
============================  ==============================  ===============  =========  ======  ========= 
Sanofi India                  Pharmaceuticals                 India              6,770     1.3      9,243 
============================  ==============================  ===============  =========  ======  ========= 
                              Life Sciences Tools 
Syngene International          & Services                     India              6,521     1.2      3,976 
============================  ==============================  ===============  =========  ======  ========= 
                              Semiconductors & 
LEENO Industrial               Semiconductor Equipment        South Korea        6,322     1.2        - 
============================  ==============================  ===============  =========  ======  ========= 
                              Real Estate Management 
Yoma Strategic Holdings        & Development                  Myanmar            5,943     1.1      5,392 
============================  ==============================  ===============  =========  ======  ========= 
                              Hotels, Restaurants 
Shangri-La Hotels Malaysia     & Leisure                      Malaysia           5,867     1.1      5,740 
============================  ==============================  ===============  =========  ======  ========= 
United Plantations            Food Products                   Malaysia           5,815     1.1      5,097 
============================  ==============================  ===============  =========  ======  ========= 
                              Electronic Equipment, 
Taiwan Union                   Instruments & Components       Taiwan             5,778     1.1     10,693 
============================  ==============================  ===============  =========  ======  ========= 
                              Health Care Providers 
Vijaya Diagnostic Centre       & Services                     India              5,645     1.1        - 
----------------------------  ------------------------------  ---------------  ---------  ------  --------- 
Top forty investments                                                           455,829    85.5 
----------------------------  ------------------------------  ---------------  ---------  ------  --------- 
                              Independent Power 
Absolute Clean Energy          and Renewable Electricity 
 (Foreign)                     Producers                      Thailand           5,115     1.0      7,313 
============================  ==============================  ===============  =========  ======  ========= 
                              Semiconductors & 
Koh Young Technology           Semiconductor Equipment        South Korea        4,879     0.9      8,347 
============================  ==============================  ===============  =========  ======  ========= 
Nanofilm Technologies 
 International                Chemicals                       Singapore          4,856     0.9     13,347 
============================  ==============================  ===============  =========  ======  ========= 
                              Semiconductors & 
Pentamaster International      Semiconductor Equipment        Malaysia           4,850     0.9      4,271 
============================  ==============================  ===============  =========  ======  ========= 
Tisco Financial Group 
 (Foreign)                    Banks                           Thailand           4,827     0.9      5,154 
============================  ==============================  ===============  =========  ======  ========= 
KMC Kuei Meng International   Leisure Products                Taiwan             4,560     0.9      3,315 
============================  ==============================  ===============  =========  ======  ========= 
Convenience Retail 
 Asia                         Food & Staples Retailing        Hong Kong          4,314     0.8      3,467 
============================  ==============================  ===============  =========  ======  ========= 
NZX                           Capital Markets                 New Zealand        4,253     0.8      6,427 
============================  ==============================  ===============  =========  ======  ========= 
                              Semiconductors & 
Aspeed Technology              Semiconductor Equipment        Taiwan             3,652     0.7      5,543 
============================  ==============================  ===============  =========  ======  ========= 
Tatva Chintan Pharma          Chemicals                       India              3,565     0.7      2,132 
----------------------------  ------------------------------  ---------------  ---------  ------  --------- 
Top fifty investments                                                           500,700    94.0 
----------------------------  ------------------------------  ---------------  ---------  ------  --------- 
                              Semiconductors & 
Andes Technology               Semiconductor Equipment        Taiwan             3,470     0.6        - 
============================  ==============================  ===============  =========  ======  ========= 
Nazara Technologies           Entertainment                   India              3,434     0.6      5,583 
============================  ==============================  ===============  =========  ======  ========= 
Credit Bureau Asia            Professional Services           Singapore          3,228     0.6      3,778 
============================  ==============================  ===============  =========  ======  ========= 
Ecloudvalley Digital 
 Technology                   IT Services                     Taiwan             3,180     0.6      5,142 
============================  ==============================  ===============  =========  ======  ========= 
Douzone Bizon                 Software                        South Korea        3,108     0.6      4,157 
============================  ==============================  ===============  =========  ======  ========= 
Thai Stanley Electric 
 (Foreign)                    Auto Components                 Thailand           2,912     0.5      4,680 
============================  ==============================  ===============  =========  ======  ========= 
CE Info Systems               Software                        India              2,421     0.5        - 
============================  ==============================  ===============  =========  ======  ========= 
Manulife Holdings             Insurance                       Malaysia           1,675     0.3      1,561 
============================  ==============================  ===============  =========  ======  ========= 
AEON Stores Hong Kong         Multiline Retail                Hong Kong           279      0.1       473 
============================  ==============================  ===============  =========  ======  ========= 
First Sponsor Group           Real Estate Management 
 (Warrants 21/03/2029)         & Development                  Singapore           276      0.1       303 
----------------------------  ------------------------------  ---------------  ---------  ------  --------- 
Top sixty investments                                                           524,683    98.5 
----------------------------  ------------------------------  ---------------  ---------  ------  --------- 
First Sponsor Group           Real Estate Management 
 (Warrants 30/05/2024)         & Development                  Singapore           158       -        32 
============================  ==============================  ===============  =========  ======  ========= 
G3 Exploration                Oil, Gas & Consumable           China                -        -         - 
                               Fuels 
----------------------------  ------------------------------  ---------------  ---------  ------  --------- 
Total investments                                                               524,841    98.5 
----------------------------  ------------------------------  ---------------  ---------  ------  --------- 
Net current assets                                                               8,071     1.5 
----------------------------  ------------------------------  ---------------  ---------  ------  --------- 
Total assets(B)                                                                 532,912   100.0 
----------------------------  ------------------------------  ---------------  ---------  ------  --------- 
(A) Holding includes investment in both common and preference lines. 
(B) Total assets less current liabilities. 
 

Directors' Report

The Directors present their Report and the audited financial statements for the year ended 31 July 2022.

Change of Name

On 4 April 2022 the Company changed its name from Aberdeen Standard Asia Focus PLC to abrdn Asia Focus plc.

Results and Dividends

Details of the Company's results and proposed dividends are shown above.

Investment Trust Status

The Company (registered in England & Wales No. 03106339) has been accepted by HM Revenue & Customs as an investment trust subject to the Company continuing to meet the relevant eligibility conditions of Section 1158 of the Corporation Tax Act 2010 and the ongoing requirements of Part 2 Chapter 3 Statutory Instrument 2011/2999 for all financial years commencing on or after 1 August 2012. The Directors are of the opinion that the Company has conducted its affairs for the year ended 31 July 2022 so as to enable it to comply with the ongoing requirements for investment trust status.

Individual Savings Accounts

The Company has conducted its affairs so as to satisfy the requirements as a qualifying security for Individual Savings Accounts. The Directors intend that the Company will continue to conduct its affairs in this manner.

Capital Structure, Buybacks and Issuance

The Company's capital structure is summarised in note 14 to the financial statements. On 4 February 2022 the Company completed a five for one share split and shareholders received five New Ordinary Shares of 5p each in exchange for each existing Ordinary Share of 25p held as at the close of business on 3 February 2022. The new Ordinary shares of 5p each retained the Stock Exchange ticker (AAS) but were assigned a new ISIN and SEDOL as follows:

New ISIN: GB00BMF19B58

New SEDOL: BMF19B5

At 31 July 2022, there were 156,953,631 fully paid Ordinary shares of 5p each (2021 - 31,189,684 Ordinary shares of 25p each) in issue with a further 51,744,590 Ordinary shares of 5p held in treasury (2021 - 10,348,918 Ordinary shares of 25p each held in treasury). During the year no Ordinary shares were purchased in the market for treasury (2021 - 1,055,000 Ordinary shares of 25p each purchased for treasury). During the period and up to the date of this report no new Ordinary shares were issued for cash and no shares were sold from or purchased into treasury.

On 14 December 2021, 13,764 units of Convertible Unsecured Loan Stock 2025 were converted into 935 new Ordinary shares of 25p each. On 14 June 2022 1,579 units of Convertible Unsecured Loan Stock 2025 were converted into 536 new Ordinary shares of 5p each. In accordance with the terms of the CULS Issue, (subsequently adjusted to reflect the share split in February 2022), the conversion price of the CULS for the December conversion was determined at 1465.0p nominal of CULS for one Ordinary share of 25p and the conversion price for the June conversion was determined at 293.0p nominal of CULS for one Ordinary share of 5p.

Voting Rights

Ordinary shareholders are entitled to vote on all resolutions which are proposed at general meetings of the Company. The Ordinary shares carry a right to receive dividends. On a winding up, after meeting the liabilities of the Company, the surplus assets will be paid to Ordinary shareholders in proportion to their shareholdings.

CULS holders have the right to attend but not vote at general meetings of the Company. A separate resolution of CULS holders would be required to be passed before any modification or compromise of the rights attaching to the CULS can be made.

Gearing

On 1 December 2020 the Company issued a GBP30 million 15 year Senior Unsecured Loan Note (the "Loan Note") at an annualised interest rate of 3.05%. The Loan Note is unsecured, unlisted and denominated in sterling. The Loan Note ranks pari passu with the Company's other unsecured and unsubordinated financial indebtedness. The Company used the proceeds of the Loan Note issue to repay, and cancel in full, the Company's loan facility with RBS and the remainder was invested in the portfolio by the Investment Manager.

Management Agreement

The Company has appointed abrdn Fund Managers Limited ("aFML"), a wholly owned subsidiary of abrdn plc, as its alternative investment fund manager. aFML has been appointed to provide investment management, risk management, administration and company secretarial services and promotional activities to the Company. The Company's portfolio is managed by abrdn Asia Limited ("abrdn Asia") by way of a group delegation agreement in place between aFML and abrdn Asia. In addition, aFML has sub-delegated administrative and secretarial services to Aberdeen Asset Management PLC and promotional activities to Aberdeen Asset Managers Limited ("AAML").

Management Fee

With effect from 1 August 2021 the annual management fee has been charged at 0.85% for the first GBP250,000,000, 0.60% for the next GBP500,000,000 and 0.50% over GBP750,000,000 . Previously, the monthly management fee was charged at 0.08%. Investment management fees are charged 25% to revenue and 75% to capital.

The management agreement may be terminated by either the Company or the Manager on the expiry of three months' written notice (reduced from 12 months). On termination, the Manager would be entitled to receive fees which would otherwise have been due to that date.

The Management Engagement Committee reviews the terms of the management agreement on a regular basis and have confirmed that, due to the long-term relative performance, investment skills, experience and commitment of the investment management team, in their opinion the continuing appointment of aFML and abrdn Asia is in the interests of shareholders as a whole.

Political and Charitable Donations

The Company does not make political donations (2021 - nil) and has not made any charitable donations during the year (2021 - nil).

Risk Management

Details of the financial risk management policies and objectives relative to the use of financial instruments by the Company are set out in note 19 to the financial statements.

The Board

The current Directors, N K Cayzer, Randal Dunluce (The Earl of Antrim), C Black, K Shanmuganathan, L Cooper (appointed 15 June 2022) and A Finn (appointed 13 July 2022), together with D Guthrie who resigned on 13 April 2022, were the only Directors who served during the year. During the period Viscount Dunluce succeeded to the title Earl of Antrim following the death of his father. Pursuant to Principle 23 of the AIC's Code of Corporate Governance which recommends that all directors should be subject to annual re-election by shareholders, all the members of the Board will retire at the AGM scheduled for 30 November 2022 and will offer themselves for re-election. Details of each Director's contribution to the long term success of the Company are provided on page 50 of the published Annual Report and financial statements for the year ended 31 July 2022.

The Board considers that there is a balance of skills and experience within the Board relevant to the leadership and direction of the Company and that all the Directors contribute effectively.

In common with most investment trusts, the Company has no employees. Directors' & Officers' liability insurance cover has been maintained throughout the year at the expense of the Company.

The Role of the Chairman

The Chairman is responsible for providing effective leadership to the Board, by setting the tone of the Company, demonstrating objective judgement and promoting a culture of openness and debate. The Chairman facilitates the effective contribution, and encourages active engagement, by each Director. In conjunction with the Company Secretary, the Chairman ensures that Directors receive accurate, timely and clear information to assist them with effective decision-making. The Chairman leads the evaluation of the Board and individual Directors, and acts upon the results of the evaluation process by recognising strengths and addressing any weaknesses. The Chairman also engages with major shareholders and ensures that all Directors understand shareholder views.

The Company has not appointed a senior independent director. Accordingly the Audit Committee Chairman in combination with the other independent Directors fulfils the duties of the senior independent director, acting as a sounding board for the Chairman and acting as an intermediary for other directors as applicable. The Audit Committee Chairman is also available to shareholders to discuss any concerns they may have.

Corporate Governance

The Company is committed to high standards of corporate governance. The Board is accountable to the Company's shareholders for good governance and this statement describes how the Company has applied the principles identified in the UK Corporate Governance Code as published in July 2018 (the "UK Code"), which is available on the Financial Reporting Council's (the "FRC") website: frc.org.uk.

The Board has also considered the principles and provisions of the AIC Code of Corporate Governance as published in February 2019 (the "AIC Code"). The AIC Code addresses the principles and provisions set out in the UK Code, as well as setting out additional provisions on issues that are of specific relevance to the Company. The AIC Code is available on the AIC's website: theaic.co.uk.

The Board considers that reporting against the principles and provisions of the AIC Code, which has been endorsed by the FRC provides more relevant information to shareholders.

The Board confirms that, during the year, the Company complied with the principles and provisions of the AIC Code and the relevant provisions of the UK Code, except as set out below.

   1.     Interaction with the workforce (provisions 2, 5 and 6); 
   2.     the role and responsibility of the chief executive (provisions 9 and 14); 
   3.     previous experience of the chairman of a remuneration committee (provision 32); 
   4.     executive directors' remuneration (provisions 33 and 36 to 40); 
   5.     senior independent director (provision 12); and 
   6.     tenure of the Chairman (provision 19). 

For the reasons set out in the AIC Code, and as explained in the UK Corporate Governance Code, the Board considers that provisions 1 to 4 above are not relevant to the position of the Company, being an externally-managed investment company. In particular, all of the Company's day-to-day management and administrative functions are outsourced to third parties. As a result, the Company has no executive directors, employees or internal operations. The Company has therefore not reported further in respect of provisions 1 to 4 above. The tenure of the Chairman is discussed further under 'Policy on Tenure', below. The full text of the Company's Corporate Governance Statement can be found on the Company's website: asia-focus.co.uk.

During the year ended 31 July 2022, the Board had six scheduled meetings. In addition, the Audit Committee met twice and the Management Engagement Committee met once and there has been a number of ad hoc Board meetings to discuss investment strategy. Between meetings the Board maintains regular contact with the Manager. Directors have attended the following scheduled Board meetings and Committee meetings during the year ended 31 July 2022 (with their eligibility to attend the relevant meeting in brackets):

 
Director           Board  Audit  Nomination  Management 
                           Com       Com      Engagement 
                                                 Com 
=================  =====  =====  ==========  =========== 
N Cayzer 
 (A)               6 (6)  n/a    3 (3)       1 (1) 
=================  =====  =====  ==========  =========== 
C Black            6 (6)  2 (2)  3 (3)       1 (1) 
=================  =====  =====  ==========  =========== 
Earl of Antrim     6 (6)  2 (2)  3 (3)       1 (1) 
=================  =====  =====  ==========  =========== 
D Guthrie 
 (B)               4 (4)  2 (2)  2 (2)       1 (1) 
=================  =====  =====  ==========  =========== 
K Shanmuganathan   5 (5)  2 (2)  3 (3)       1 (1) 
=================  =====  =====  ==========  =========== 
L. Cooper 
 (C)               1 (1)  0 (0)  1 (1)       0 (0) 
=================  =====  =====  ==========  =========== 
A Finn (D)         1 (1)  0 (0)  0 (0)       0 (0) 
=================  =====  =====  ==========  =========== 
(A) Mr Cayzer is not a member of 
 the Audit Committee 
(B) Ms Guthrie resigned from the 
 Board on 13 April 2022 
(C) Mr Cooper was appointed to 
 the Board on 15 June 2022 
 (D) Mr Finn was appointed to the 
 Board on 13 July 2022 
 

Policy on Tenure - Chairman

The Company's policy, which is kept under very regular review, is in line with the Listing Rules, the Chairman must remain independent of the Manager and the Company. The independent Directors believe that the independence of the Chairman should be judged by the degree to which the interests of the shareholders and stakeholders as a whole are being served. The Directors note that Mr Cayzer will be retiring from the Board at the conclusion of the Annual General Meeting on 30 November 2022 and Mr Shanmuganathan has accepted the Board's invitation to become Chairman from that date.

Policy on Tenure - Directors

The Board's policy on tenure is that Directors need not serve on the Board for a limited period of time only. The Board does not consider that the length of service of a Director is as important as the contribution he or she has to make, and therefore the length of service will be determined on a case-by-case basis. In accordance with corporate governance best practice, all Directors, including those who have served for more than nine years or who are non-independent, voluntarily offer themselves for re-election on an annual basis.

Board Committees

Audit Committee

The Audit Committee Report is on pages 61 to 63 of of the published Annual Report and financial statements for the year ended 31 July 2022.

Nomination Committee

All appointments to the Board of Directors are considered by the Nomination Committee which comprises all of the Directors. The Board's overriding priority in appointing new Directors to the Board is to identify the candidate with the best range of skills and experience to complement existing Directors. The Board also recognises the benefits of diversity and its policy on diversity is referred to in the Strategic Report.

During the year the Nomination Committee conducted a search for two new non executive Directors using the services of Fletcher Jones Limited, an independent recruitment consultant. As part of the search a specification of desired attributes and qualities was prepared and the recruitment process culminated in the appointment of Mr Lindsay Cooper on 15 June 2022 and the appointment of Mr Alex Finn on 13 July 2022.

The Board undertakes an annual evaluation of the Board, Directors, the Chairman and the Audit Committee which is conducted by questionnaires. The 2022 evaluation highlighted certain areas of further focus such as continuing professional development which will be addressed with input where necessary from the Company's advisors. Overall, the Committee has concluded that the Board has an excellent balance of experience, knowledge of investment markets, legal regulation and financial accounting and continues to work in a collegiate and effective manner.

The Nomination Committee has reviewed the contributions of each Director ahead of their proposed election and re-elections at the AGM on 30 November 2022. Notwithstanding that Mr Cayzer intends to retire from the Board at the AGM on 30 November 2022, the Committee wishes to reiterate its belief that Mr Cayzer remains independent of the Manager. Ms Black has brought significant financial promotion and marketing expertise to the Board and has been closely involved in the redevelopment of the Company's website during the year; the Earl of Antrim has continued to bring detailed wealth management investment experience and insight to the Board; and Mr Shanmuganathan has continued to bring his deep experience of Asia as well as significant strategic and financial vision to the Board. Although Mr Cooper and Mr Finn were appointed to the Board immediately prior to the Company's year end they have already settled into their roles seamlessly and, respectively, are bringing excellent regional/investment experience and expert relevant and recent accounting and financial experience to the Board. For the foregoing reasons, the independent members of the Nomination Committee have no hesitation in recommending the election/re-election of each Director who will be submitting themselves for re-election at the AGM on 30 November 2022.

Management Engagement Committee

The Management Engagement Committee comprises all of the Directors and was chaired by Ms Guthrie up to her resignation in April 2022 and subsequently by the Chairman. The Committee is now chaired by Mr Finn following his appointment to the Board on 13 July 2022. The Committee is responsible for reviewing the performance of the Investment Manager and its compliance with the terms of the management and secretarial agreement. The terms and conditions of the Investment Manager's appointment, including an evaluation of fees, are reviewed by the Committee on an annual basis. The Committee believes that the continuing appointment of the Manager on the terms agreed is in the interests of shareholders as a whole.

Remuneration Committee

Under the UK Listing Authority rules, where an investment trust has only non-executive directors, the Code principles relating to directors' remuneration do not apply. Accordingly, matters relating to remuneration are dealt with by the full Board, which acts as the Remuneration Committee, and is chaired by the Chairman.

The Company's remuneration policy is to set remuneration at a level to attract individuals of a calibre appropriate to the Company's future development. Further information on remuneration is disclosed in the Directors' Remuneration Report on pages 56 to 59 of the published Annual Report and financial statements for the year ended 31 July 2022.

Terms of Reference

The terms of reference of all the Board Committees may be found on the Company's website asia-focus.co.uk and copies are available from the Company Secretary upon request. The terms of reference are reviewed and re-assessed by the Board for their adequacy on an annual basis.

Internal Control

In accordance with the Disclosure and Transparency Rules (DTR 7.2.5), the Board is ultimately responsible for the Company's system of internal control and for reviewing its effectiveness and confirms that there is an ongoing process for identifying, evaluating and managing the significant risks faced by the Company. This process has been in place for the year under review and up to the date of approval of this Annual Report and Financial Statements. It is regularly reviewed by the Board and accords with the FRC Guidance.

The Board has reviewed the effectiveness of the system of internal control. In particular, it has reviewed and updated the process for identifying and evaluating the significant risks affecting the Company and policies by which these risks are managed.

The Directors have delegated the investment management of the Company's assets to the abrdn Group within overall guidelines, and this embraces implementation of the system of internal control, including financial, operational and compliance controls and risk management. Internal control systems are monitored and supported by the abrdn Group's internal audit function which undertakes periodic examination of business processes, including compliance with the terms of the management agreement, and ensures that recommendations to improve controls are implemented.

Risks are identified and documented through a risk management framework by each function within the abrdn Group's activities. Risk includes financial, regulatory, market, operational and reputational risk. This helps the internal audit risk assessment model identify those functions for review. Any weaknesses identified are reported to the Board, and timetables are agreed for implementing improvements to systems. The implementation of any remedial action required is monitored and feedback provided to the Board.

The significant risks faced by the Company have been identified as being financial; operational; and compliance-related.

The key components of the process designed by the Directors to provide effective internal control are outlined below:

- the Manager prepares forecasts and management accounts which allow the Board to assess the Company's activities and review its performance;

- the Board and Manager have agreed clearly defined investment criteria, specified levels of authority and exposure limits. Reports on these issues, including performance statistics and investment valuations, are regularly submitted to the Board and there are meetings with the Manager and Investment Manager as appropriate;

- as a matter of course the Manager's compliance department continually reviews abrdn's operations and reports to the Board on a six monthly basis;

- written agreements are in place which specifically define the roles and responsibilities of the Manager and other third party service providers and, where relevant, ISAE3402 Reports, a global assurance standard for reporting on internal controls for service organisations, or their equivalents are reviewed;

- the Board has considered the need for an internal audit function but, because of the compliance and internal control systems in place within abrdn, has decided to place reliance on the Manager's systems and internal audit procedures; and

- at its September 2022 meeting, the Audit Committee carried out an annual assessment of internal controls for the year ended 31 July 2022 by considering documentation from the Manager, Investment Manager and the Depositary, including the internal audit and compliance functions and taking account of events since 31 July 2022. The results of the assessment, that internal controls are satisfactory, were then reported to the Board at the next Board meeting.

Internal control systems are designed to meet the Company's particular needs and the risks to which it is exposed. Accordingly, the internal control systems are designed to manage rather than eliminate the risk of failure to achieve business objectives and by their nature can only provide reasonable and not absolute assurance against mis-statement and loss.

Going Concern

In accordance with the Financial Reporting Council's guidance the Directors have undertaken a rigorous review of the Company's ability to continue as a going concern. The Company's assets consist of equity shares in companies listed on recognised stock exchanges and are considered by the Board to be realisable within a relatively short timescale under normal market conditions. The Board has set overall limits for borrowing and reviews regularly the Company's level of gearing, cash flow projections and compliance with banking covenants. The Board has also reviewed stress testing and liquidity analysis covering the impact of significant historical market events such as the 1997 Asian Crisis and 2008 Global Financial Crisis on the liquidity of the portfolio to ensure that even in significant negative markets the Company would still be able to raise sufficient capital to repay its liabilities.

The Directors are mindful of the Principal Risks and Uncertainties disclosed in the Strategic Report and they believe that the Company has adequate financial resources to continue its operational existence for a period of not less than 12 months from the date of approval of this Annual Report. They have arrived at this conclusion having confirmed that the Company's diversified portfolio of realisable securities is sufficiently liquid and could be used to meet short-term funding requirements were they to arise, including in current market conditions caused by the Covid-19 pandemic and the conflict in Ukraine. The Directors have also reviewed the revenue and ongoing expenses forecasts for the coming year. Accordingly, the Directors believe that it is appropriate to continue to adopt the going concern basis in preparing the financial statements.

Management of Conflicts of Interest

The Board has a procedure in place to deal with a situation where a Director has a conflict of interest. As part of this process, the Directors prepare a list of other positions held and all other conflict situations that may need to be authorised either in relation to the Director concerned or his connected persons. The Board considers each Director's situation and decides whether to approve any conflict, taking into consideration what is in the best interests of the Company and whether the Director's ability to act in accordance with his or her wider duties is affected. Each Director is required to notify the Company Secretary of any potential, or actual, conflict situations that will need authorising by the Board. Authorisations given by the Board are reviewed at each Board meeting.

No Director has a service contract with the Company although Directors are issued with letters of appointment upon appointment. The Directors' interests in contractual arrangements with the Company are as shown in note 18 to the financial statements. No other Directors had any interest in contracts with the Company during the period or subsequently.

The Board has adopted appropriate procedures designed to prevent bribery. The Company receives periodic reports from its service providers on the anti-bribery policies of these third parties. It also receives regular compliance reports from the Manager.

The Criminal Finances Act 2017 introduced a new corporate criminal offence of "failing to take reasonable steps to prevent the facilitation of tax evasion". The Board has confirmed that it is the Company's policy to conduct all of its business in an honest and ethical manner. The Board takes a zero-tolerance approach to facilitation of tax evasion, whether under UK law or under the law of any foreign country.

Accountability and Audit

The respective responsibilities of the Directors and the auditors in connection with the financial statements are set out on pages 60 and 71 of the published Annual Report and financial statements for the year ended 31 July 2022, respectively.

Each Director confirms that:

- so far as he or she is aware, there is no relevant audit information of which the Company's auditors are unaware; and,

- each Director has taken all the steps that they could reasonably be expected to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Additionally there have been no important events since the year end that impact this Annual Report.

The Directors have reviewed the independent auditors' procedures in connection with the provision of non-audit services. No non audit services were provided by the independent auditors during the year and the Directors remain satisfied that the auditors' objectivity and independence has been safeguarded.

Independent Auditors

At the January 2022 AGM shareholders approved the re-appointment of PricewaterhouseCoopers LLP ("PwC") as independent auditors to the Company. PwC has expressed its willingness to continue to be the Company's auditors and a Resolution to re-appoint PwC as the Company's auditors and to authorise the Directors to fix the auditors' remuneration will be put to the forthcoming Annual General Meeting.

Substantial Interests

The Board has been advised that the following shareholders owned 3% or more of the issued Ordinary share capital of the Company at 31 July 2022:

 
Shareholder                      No. of    % held 
                                Ordinary 
                                 shares 
                                  held 
=============================  ==========  ====== 
City of London Investment 
 Management Company            35,545,725  22.7 
=============================  ==========  ====== 
Allspring Global Investments   17,499,145  11.2 
=============================  ==========  ====== 
Interactive Investor 
 (non-beneficial)              12,730,109  8.1 
=============================  ==========  ====== 
abrdn Savings Scheme 
 (non-beneficial)              12,603,327  8.0 
=============================  ==========  ====== 
Hargreaves Lansdown 
 (non-beneficial)              11,495,052  7.3 
=============================  ==========  ====== 
Funds managed by abrdn         6,506,327   4.2 
=============================  ==========  ====== 
Charles Stanley                5,643,336   3.6 
=============================  ==========  ====== 
1607 Capital Partners          5,139,291   3.3 
=============================  ==========  ====== 
 

On 16 September 2022 the Company received notice that City of London Investment Management Company had increased its interest to 36,113,225 Ordinary shares, representing 23.0% of the issued capital. There have been no other significant changes notified in respect of the above holdings between 31 July 2022 and 14 October 2022.

The UK Stewardship Code and Proxy Voting

Responsibility for actively monitoring the activities of portfolio companies has been delegated by the Board to the AIFM which has sub-delegated that authority to the Manager.

The Manager is a tier 1 signatory of the UK Stewardship Code which aims to enhance the quality of engagement by investors with investee companies in order to improve their socially responsible performance.

Relations with Shareholders

The Directors place a great deal of importance on communication with shareholders. The Annual Report is widely distributed to other parties who have an interest in the Company's performance. Shareholders and investors may obtain up to date information on the Company through the Manager's freephone information service and the Company's website asia-focus.co.uk. The Company responds to letters from shareholders on a wide range

of issues.

The Board's policy is to communicate directly with shareholders and their representative bodies without the involvement of the abrdn Group (either the Company Secretary or the Manager) in situations where direct communication is required and usually a representative from the Board meets with major shareholders on an annual basis in order to gauge their views.

The Notice of the Annual General Meeting, included within the Annual Report and financial statements, is sent out at least 20 working days in advance of the meeting. All shareholders have the opportunity to put questions to the Board or the Manager, either formally at the Company's Annual General Meeting or, where possible, at the subsequent buffet luncheon for shareholders. The Company Secretary is available to answer general shareholder queries at any time throughout the year.

Special Business at the Annual

General Meeting

Directors' Authority to Allot Relevant Securities

Approval is sought in Resolution 10, an ordinary resolution, to renew the Directors' existing general power to allot securities but will also, provide a further authority (subject to certain limits), to allot shares under a fully pre-emptive rights issue. The effect of Resolution 10 is to authorise the Directors to allot up to a maximum of 104,635,754 shares in total (representing approximately 2/3 of the existing issued capital of the Company), of which a maximum of 52,317,877 shares (approximately 1/3 of the existing issued share capital) may only be applied to fully pre-emptive rights issues. This authority is renewable annually and will expire at the conclusion of the next Annual General Meeting. The Board has no present intention to utilise this authority.

Disapplication of Pre-emption Rights

Resolution 11 is a special resolution that seeks to renew the Directors' existing authority until the conclusion of the next Annual General Meeting to make limited allotments of shares for cash of up to 10% of the issued share capital other than according to the statutory pre-emption rights which require all shares issued for cash to be offered first to all existing shareholders. This authority includes the ability to sell shares that have been held in treasury (if any), having previously been bought back by the Company. The Board has established guidelines for treasury shares and will only consider buying in shares for treasury at a discount to their prevailing NAV and selling them from treasury at or above the then prevailing NAV.

New shares issued in accordance with Resolution 11 and subject to the authority to be conferred by Resolution 10 will always be issued at a premium to the NAV per Ordinary share at the time of issue. The Board will issue new Ordinary shares or sell Ordinary shares from treasury for cash when it is appropriate to do so, in accordance with its current policy. It is therefore possible that the issued share capital of the Company may change between the date of this document and the Annual General Meeting and therefore the authority sought will be in respect of 10% of the issued share capital as at the date of the Annual General Meeting rather than the date of this document.

Purchase of the Company's Shares

Resolution 12 is a special resolution proposing to renew the Directors' authority to make market purchases of the Company's shares in accordance with the provisions contained in the Companies Act 2006 and the Listing Rules of the Financial Conduct Authority. The minimum price to be paid per Ordinary share by the Company will not be less than 5p per share (being the nominal value) and the maximum price should not be more than the higher of (i) 5% above the average of the middle market quotations for the shares for the preceding five business days; and (ii) the higher of the last independent trade and the current highest independent bid on the trading venue where the purchase is carried out.

The Directors do not intend to use this authority to purchase the Company's Ordinary shares unless to do so would result in an increase in NAV per share and would be in the interests of shareholders generally. The authority sought will be in respect of 14.99% of the issued share capital as at the date of the Annual General Meeting rather than the date of this document.

The authority being sought in Resolution 12 will expire at the conclusion of the next Annual General Meeting unless it is renewed before that date. Any Ordinary shares purchased in this way will either be cancelled and the number of Ordinary shares will be reduced accordingly or under the authority granted in Resolution 11 above, may be held in treasury. During the year the Company has not bought back any Ordinary shares for Treasury.

If Resolutions 10 to 12 are passed then an announcement will be made on the date of the Annual General Meeting which will detail the exact number of Ordinary shares to which each of these authorities relate.

These powers will give the Directors additional flexibility going forward and the Board considers that it will be in the interests of the Company that such powers be available. Such powers will only be implemented when, in the view of the Directors, to do so will be to the benefit of shareholders as a whole.

Notice of Meetings

Resolution 13 is a special resolution seeking to authorise the Directors to call general meetings of the Company (other than Annual General Meetings) on 14 days' notice. This approval will be effective until the Company's next Annual General Meeting in 2023. In order to utilise this shorter notice period, the Company is required to ensure that shareholders are able to vote electronically at the general meeting called on such short notice. The Directors confirm that, in the event that a general meeting is called, they will give as much notice as practicable and will only utilise the authority granted by Resolution 13 in limited and time sensitive circumstances.

Dividend Policy

As a result of the timing of the payment of the Company's quarterly dividends, the Company's Shareholders are unable to approve a final dividend each year. In line with good corporate governance, the Board therefore proposes to put the Company's dividend policy to Shareholders for approval at the Annual General Meeting and on an annual basis thereafter.

The Company's dividend policy shall be that dividends on the Ordinary Shares are payable quarterly in relation to periods ending October, January, April and July. It is intended that the Company will pay quarterly dividends consistent with the expected annual underlying portfolio yield. The Company has the flexibility in accordance with its Articles to make distributions from capital. Resolution 3, an ordinary resolution, will seek shareholder approval for the dividend policy.

Recommendation

Your Board considers Resolutions 10 to 13 to be in the best interests of the Company and its members as a whole and most likely to promote the success of the Company for the benefit of its members as a whole. Accordingly, your Board unanimously recommends that shareholders should vote in favour of Resolutions 10 to 13 to be proposed at the AGM, as they intend to do in respect of their own beneficial shareholdings amounting to 14,060 Ordinary shares.

By order of the Board

Aberdeen Asset Management PLC -Secretaries

Bow Bells House, 1 Bread Street

London EC4M 9HH

14 October 2022

Statement of Comprehensive Income

 
                                           Year ended 31 July              Year ended 31 July 
                                                   2022                            2021 
==============================  =====  ===========================  ================================= 
                                                                    (*Restated)  (*Restated) 
                                       Revenue  Capital    Total      Revenue      Capital     Total 
                                Notes  GBP'000  GBP'000   GBP'000     GBP'000      GBP'000    GBP'000 
==============================  =====  =======  ========  ========  ===========  ===========  ======= 
(Losses)/gains on investments    10       -     (22,324)  (22,324)       -         148,078    148,078 
==============================  =====  =======  ========  ========  ===========  ===========  ======= 
Income                            3    18,071      -       18,071      9,624          -        9,624 
==============================  =====  =======  ========  ========  ===========  ===========  ======= 
Exchange gains/(losses)                   -        72        72          -          (425)      (425) 
==============================  =====  =======  ========  ========  ===========  ===========  ======= 
Investment management 
 fees                             4     (801)   (2,403)   (3,204)     (3,570)         -       (3,570) 
==============================  =====  =======  ========  ========  ===========  ===========  ======= 
Administrative expenses(A)      5,22   (1,163)   (398)    (1,561)     (1,136)       (250)     (1,386) 
------------------------------  -----  -------  --------  --------  -----------  -----------  ------- 
Net return before finance 
 costs and taxation                    16,107   (25,053)  (8,946)      4,918       147,403    152,321 
==============================  =====  =======  ========  ========  ===========  ===========  ======= 
Finance costs                     6     (499)   (1,497)   (1,996)     (1,732)         -       (1,732) 
------------------------------  -----  -------  --------  --------  -----------  -----------  ------- 
Net return before taxation             15,608   (26,550)  (10,942)     3,186       147,403    150,589 
==============================  =====  =======  ========  ========  ===========  ===========  ======= 
Taxation                          7     (956)     876       (80)       (550)       (3,556)    (4,106) 
------------------------------  -----  -------  --------  --------  -----------  -----------  ------- 
Net return after taxation              14,652   (25,674)  (11,022)     2,636       143,847    146,483 
------------------------------  -----  -------  --------  --------  -----------  -----------  ------- 
 
Return per share (pence)(B)       9 
 : 
------------------------------  -----  -------  --------  --------  -----------  -----------  ------- 
Basic                                   9.34    (16.36)    (7.02)      1.66         90.68      92.34 
------------------------------  -----  -------  --------  --------  -----------  -----------  ------- 
Diluted                                 8.75      n/a       n/a         n/a         84.04      85.95 
------------------------------  -----  -------  --------  --------  -----------  -----------  ------- 
(A) Further details of the restatement can be found in note 22. 
(B) Figures for 2021 have been restated to reflect the 5:1 sub-division 
 as disclosed in note 14. 
For the year ended 31 July 2022 the conversion option for potential 
 Ordinary shares within the Convertible Unsecured Loan Stock was dilutive 
 to the revenue return per Ordinary share but non-dilutive to the capital 
 return per Ordinary share (2021 - non-dilutive to revenue but dilutive 
 to capital). 
The total column of this statement represents the profit and loss account 
 of the Company. There is no other comprehensive income and therefore 
 the net return after taxation is also the total comprehensive income 
 for the year. 
All revenue and capital items in the above statement derive from continuing 
 operations. 
The accompanying notes are an integral part of the financial statements. 
 

Statement of Financial Position

 
                                                                      As at 
                                                        As at      31 July 2021 
                                                     31 July 2022  (*Restated) 
                                             Notes     GBP'000       GBP'000 
===========================================  ======  ============  ============ 
Fixed assets 
===========================================  ======  ============  ============ 
Investments at fair value through profit 
 or loss                                       10      524,841       540,921 
-------------------------------------------  ------  ------------  ------------ 
 
Current assets 
===========================================  ======  ============  ============ 
Debtors and prepayments                        11       1,464         5,107 
===========================================  ======  ============  ============ 
Cash and short term deposits                            9,471         14,577 
-------------------------------------------  ------  ------------  ------------ 
                                                        10,935        19,684 
-------------------------------------------  ------  ------------  ------------ 
 
Creditors: amounts falling due within 
 one year 
===========================================  ======  ============  ============ 
Other creditors                                12      (2,864)       (3,422) 
-------------------------------------------  ------  ------------  ------------ 
Net current assets                                      8,071         16,262 
-------------------------------------------  ------  ------------  ------------ 
Total assets less current liabilities                  532,912       557,183 
===========================================  ======  ============  ============ 
 
Non-current liabilities 
===========================================  ======  ============  ============ 
2.25% Convertible Unsecured Loan Stock 
 2025                                          13      (35,940)      (35,708) 
===========================================  ======  ============  ============ 
3.05% Senior Unsecured Loan Note 2035          13      (29,892)      (29,886) 
===========================================  ======  ============  ============ 
Deferred tax liability on Indian capital 
 gains                                         13      (2,684)       (3,631) 
-------------------------------------------  ------  ------------  ------------ 
                                                       (68,516)      (69,225) 
-------------------------------------------  ------  ------------  ------------ 
Net assets                                             464,396       487,958 
-------------------------------------------  ------  ------------  ------------ 
 
Capital and reserves 
===========================================  ======  ============  ============ 
Called up share capital                        14       10,435        10,435 
===========================================  ======  ============  ============ 
Capital redemption reserve                              2,062         2,062 
===========================================  ======  ============  ============ 
Share premium account                                   60,428        60,412 
===========================================  ======  ============  ============ 
Equity component of 2.25% Convertible 
 Unsecured Loan Stock 2025                     13       1,057         1,057 
===========================================  ======  ============  ============ 
Capital reserve (*restated)(A)               15,22     375,450       401,124 
===========================================  ======  ============  ============ 
Revenue reserve (*restated)(A)                 22       14,964        12,868 
-------------------------------------------  ------  ------------  ------------ 
Total shareholders' funds                              464,396       487,958 
-------------------------------------------  ------  ------------  ------------ 
 
Net asset value per share (pence)(B) 
 : 
-------------------------------------------  ------  ------------  ------------ 
Basic                                          16       295.88        310.90 
-------------------------------------------  ------  ------------  ------------ 
Diluted                                        16       295.25        309.02 
-------------------------------------------  ------  ------------  ------------ 
(A) Further details of the restatement can be found in note 22. 
(B) Figures for 2021 have been restated to reflect the 5:1 sub-division 
 as disclosed in note 14. 
The financial statements were approved by the Board of Directors and 
 authorised for issue on 14 October 2022 and were signed on behalf of 
 the Board by: 
Nigel Cayzer 
Chairman 
The accompanying notes are an integral part of the financial statements. 
 

Statement of Changes in Equity

 
For the year ended 31 July 2022 
========================================================================================================== 
                                         Capital     Share    Equity      Capital      Revenue 
                                Share   redemption  premium  Component    reserve      reserve 
                               capital   reserve    account  CULS 2025  (*Restated)  (*Restated)   Total 
                         Note  GBP'000   GBP'000    GBP'000   GBP'000     GBP'000      GBP'000    GBP'000 
=======================  ====  =======  ==========  =======  =========  ===========  ===========  ======== 
Balance at 1 August 
 2021 (*restated)         22   10,435     2,062     60,412     1,057      401,124      12,868     487,958 
=======================  ====  =======  ==========  =======  =========  ===========  ===========  ======== 
Conversion of 2.25% 
 CULS 2025                13      -         -         16         -           -            -          16 
=======================  ====  =======  ==========  =======  =========  ===========  ===========  ======== 
Return after taxation             -         -          -         -       (25,674)      14,652     (11,022) 
=======================  ====  =======  ==========  =======  =========  ===========  ===========  ======== 
Dividends paid            8       -         -          -         -           -        (12,556)    (12,556) 
-----------------------  ----  -------  ----------  -------  ---------  -----------  -----------  -------- 
Balance at 31 July 
 2022                          10,435     2,062     60,428     1,057      375,450      14,964     464,396 
-----------------------  ----  -------  ----------  -------  ---------  -----------  -----------  -------- 
 
 
For the year ended 31 July 2021 
========================================================================================================== 
                                         Capital     Share    Equity      Capital      Revenue 
                                Share   redemption  premium  Component    reserve      reserve 
                               capital   reserve    account  CULS 2025  (*Restated)  (*Restated)   Total 
                         Note  GBP'000   GBP'000    GBP'000   GBP'000     GBP'000      GBP'000    GBP'000 
=======================  ====  =======  ==========  =======  =========  ===========  ===========  ======== 
Balance at 1 August 
 2020                          10,434     2,062     60,377     1,057      268,750      16,276     358,956 
=======================  ====  =======  ==========  =======  =========  ===========  ===========  ======== 
Conversion of 2.25% 
 CULS 2025                13      1         -         35         -           -            -          36 
=======================  ====  =======  ==========  =======  =========  ===========  ===========  ======== 
Purchase of own shares 
 to treasury              14      -         -          -         -       (11,473)         -       (11,473) 
=======================  ====  =======  ==========  =======  =========  ===========  ===========  ======== 
Return after taxation 
 (*restated)(A)           22      -         -          -         -        143,847       2,636     146,483 
=======================  ====  =======  ==========  =======  =========  ===========  ===========  ======== 
Dividends paid            8       -         -          -         -           -         (6,044)    (6,044) 
-----------------------  ----  -------  ----------  -------  ---------  -----------  -----------  -------- 
Balance at 31 July 
 2021                          10,435     2,062     60,412     1,057      401,124      12,868     487,958 
-----------------------  ----  -------  ----------  -------  ---------  -----------  -----------  -------- 
(A) Further details of the restatement can be found in note 22. 
The accompanying notes are an integral part of the financial statements. 
 

Statement of Cash Flows

 
                                                      Year ended    Year ended 
                                                     31 July 2022  31 July 2021 
                                              Notes    GBP'000       GBP'000 
============================================  =====  ============  ============ 
Cash flows from operating activities 
============================================  =====  ============  ============ 
Return before finance costs and tax                    (8,946)       152,321 
============================================  =====  ============  ============ 
Adjustments for: 
============================================  =====  ============  ============ 
Dividend income                                 3      (18,057)      (9,620) 
============================================  =====  ============  ============ 
Interest income                                 3        (14)           - 
============================================  =====  ============  ============ 
Dividends received                                      18,307        9,880 
============================================  =====  ============  ============ 
Interest received                                         10            - 
============================================  =====  ============  ============ 
Interest paid                                          (1,742)       (1,346) 
============================================  =====  ============  ============ 
Losses/(gains) on investments                  10       22,324      (148,078) 
============================================  =====  ============  ============ 
Foreign exchange movements                               (72)          425 
============================================  =====  ============  ============ 
Decrease/(increase) in prepayments                        18           (20) 
============================================  =====  ============  ============ 
Decrease in other debtors                                 11            5 
============================================  =====  ============  ============ 
Increase in other creditors                             1,439          113 
============================================  =====  ============  ============ 
Stock dividends included in investment 
 income                                                 (174)         (233) 
============================================  =====  ============  ============ 
Overseas withholding tax suffered               7      (1,439)        (690) 
--------------------------------------------  -----  ------------  ------------ 
Net cash inflow from operating activities               11,665        2,757 
============================================  =====  ============  ============ 
 
Cash flows from investing activities 
============================================  =====  ============  ============ 
Purchase of investments                                (81,319)      (81,406) 
============================================  =====  ============  ============ 
Sales of investments                                    77,032        81,562 
============================================  =====  ============  ============ 
Indian capital gains tax rebate on 
 sales                                                    -            101 
--------------------------------------------  -----  ------------  ------------ 
Net cash (outflow)/inflow from investing 
 activities                                            (4,287)         257 
============================================  =====  ============  ============ 
 
Cash flows from financing activities 
============================================  =====  ============  ============ 
Purchase of own shares for treasury                       -          (11,570) 
============================================  =====  ============  ============ 
Repayment of loan                                         -          (11,200) 
============================================  =====  ============  ============ 
Drawdown of 3.05% Senior Unsecured 
 Loan Note 2035                                13         -           29,882 
============================================  =====  ============  ============ 
Equity dividends paid                           8      (12,556)      (6,043) 
--------------------------------------------  -----  ------------  ------------ 
Net cash (outflow)/inflow from financing 
 activities                                            (12,556)       1,069 
--------------------------------------------  -----  ------------  ------------ 
(Decrease)/increase in cash and cash 
 equivalents                                           (5,178)        4,083 
--------------------------------------------  -----  ------------  ------------ 
 
Analysis of changes in cash and short 
 term deposits 
============================================  =====  ============  ============ 
Opening balance                                         14,577        10,919 
============================================  =====  ============  ============ 
(Decrease)/increase in cash and short 
 term deposits                                         (5,178)        4,083 
============================================  =====  ============  ============ 
Foreign exchange movements                                72          (425) 
--------------------------------------------  -----  ------------  ------------ 
Closing balance                                         9,471         14,577 
--------------------------------------------  -----  ------------  ------------ 
 
The accompanying notes are an integral part of the financial statements. 
 

Notes to the Financial Statements

For the year ended 31 July 2022

 
1.    Principal activity 
      The Company is a closed-end investment company, registered in 
       England & Wales No 03106339, with its Ordinary shares being listed 
       on the London Stock Exchange. 
 
 
2.    Accounting policies 
      (a)  Basis of preparation and going concern . The financial statements 
            have been prepared in accordance with Financial Reporting 
            Standard 102, the Companies Act 2006 and the AIC's Statement 
            of Recommended Practice 'Financial Statements of Investment 
            Trust Companies and Venture Capital Trusts' issued in April 
            2021. The financial statements are prepared in Sterling which 
            is the functional currency of the Company and rounded to the 
            nearest GBP'000. They have also been prepared on a going concern 
            basis and on the assumption that approval as an investment 
            trust will continue to be granted by HMRC. 
           In accordance with the Financial Reporting Council's guidance 
            the Directors have undertaken a rigorous review of the Company's 
            ability to continue as a going concern. The Company's assets 
            consist of equity shares in companies listed on recognised 
            stock exchanges and are considered by the Board to be realisable 
            within a relatively short timescale under normal market conditions. 
            The Board has set overall limits for borrowing and reviews 
            regularly the Company's level of gearing, cash flow projections 
            and compliance with banking covenants. The Board has also 
            reviewed stress testing and liquidity analysis covering the 
            impact of significant historical market events such as the 
            1997 Asian Crisis and 2008 Global Financial Crisis on the 
            liquidity of the portfolio to ensure that even in significant 
            negative markets the Company would still be able to raise 
            sufficient capital to repay its liabilities. 
           The Directors are mindful of the Principal Risks and Uncertainties 
            disclosed in the Strategic Report and they believe that the 
            Company has adequate financial resources to continue its operational 
            existence for a period of not less than 12 months from the 
            date of approval of this Annual Report. They have arrived 
            at this conclusion having confirmed that the Company's diversified 
            portfolio of realisable securities is sufficiently liquid 
            and could be used to meet short-term funding requirements 
            were they to arise, including in current market conditions 
            caused by the Covid-19 pandemic and the conflict in Ukraine. 
            The Directors have also reviewed the revenue and ongoing expenses 
            forecasts for the coming year. Accordingly, the Directors 
            believe that it is appropriate to continue to adopt the going 
            concern basis in preparing the financial statements. 
           Significant accounting judgements, estimates and assumptions 
            . The preparation of financial statements requires the use 
            of certain significant accounting judgements, estimates and 
            assumptions which requires management to exercise its judgement 
            in the process of applying the accounting policies and are 
            continually evaluated. Special dividends are assessed and 
            credited to capital or revenue according to their circumstances 
            and are considered to require significant judgement. The Directors 
            do not consider there to be any significant estimates within 
            the financial statements. 
 
 
      (b)  Valuation of investments . The Company has chosen to apply 
            the recognition and measurement provisions of IAS 39 Financial 
            Instruments: Recognition and Measurement and investments have 
            been designated upon initial recognition at fair value through 
            profit or loss. Investments are recognised and de-recognised 
            at trade date where a purchase or sale is under a contract 
            whose terms require delivery within the time frame established 
            by the market concerned, and are initially measured at fair 
            value. Subsequent to initial recognition, investments are 
            measured at fair value. For listed investments, this is deemed 
            to be bid market prices. Gains and losses arising from changes 
            in fair value and disposals are included as a capital item 
            in the Statement of Comprehensive Income and are ultimately 
            recognised in the capital reserve. 
      (c)  Borrowings . Bank loans are initially recognised at cost, 
            being the fair value of the consideration received, net of 
            any issue expenses. Subsequently, they are measured at amortised 
            cost using the effective interest method. Finance charges 
            are accounted for on an accruals basis using the effective 
            interest rate method. With effect from 1 August 2021, the 
            Company charges 25% of finance charges to revenue and 75% 
            to capital (previously 100% to revenue). 
      (d)  Income . Dividends, including taxes deducted at source, are 
            included in revenue by reference to the date on which the 
            investment is quoted ex-dividend. Special dividends are reviewed 
            on a case-by-case basis and may be credited to capital, if 
            circumstances dictate. Dividends receivable on equity shares 
            where no ex-dividend date is quoted are brought into account 
            when the Company's right to receive payment is established. 
            Fixed returns on non-equity shares are recognised on a time 
            apportioned basis so as to reflect the effective yield on 
            shares. Other returns on non-equity shares are recognised 
            when the right to return is established. Where the Company 
            has elected to receive its dividends in the form of additional 
            shares rather than cash, the amount of the cash dividend is 
            recognised as income. Any excess in the value of the shares 
            received over the amount of the cash dividend is recognised 
            in capital reserves. Interest receivable on bank balances 
            is dealt with on an accruals basis. 
      (e)  Expenses . Expenses are accounted for on an accruals basis. 
            Expenses are charged through the revenue column of the Statement 
            of Comprehensive Income except as follows: 
           - expenses directly relating to the acquisition or disposal 
            of an investment, which are charged to the capital column 
            of the Statement of Comprehensive Income and are separately 
            identified and disclosed in note 10; and 
           - with effect from 1 August 2021, the Company charges 25% 
            of investment management fees and finance costs to the revenue 
            column and 75% to the capital column of the Statement of Comprehensive 
            Income, in accordance with the Board's expected long term 
            return in the form of revenue and capital gains respectively 
            from the investment portfolio of the Company. Previously the 
            allocation was 100% to revenue. 
 
 
      (f)  Taxation . The tax expense represents the sum of tax currently 
            payable and deferred tax. Any tax payable is based on the 
            taxable profit for the year. Taxable profit differs from net 
            profit as reported in the Statement of Comprehensive Income 
            because it excludes items of income or expense that are taxable 
            or deductible in other years and it further excludes items 
            that are never taxable or deductible. The Company's liability 
            for current tax is calculated using tax rates that were applicable 
            at the Statement of Financial Position date. 
           Deferred taxation is recognised in respect of all timing differences 
            that have originated but not reversed at the Statement of 
            Financial Position date, where transactions or events that 
            result in an obligation to pay more tax in the future or right 
            to pay less tax in the future have occurred at the Statement 
            of Financial Position date. This is subject to deferred tax 
            assets only being recognised if it is considered more likely 
            than not that there will be suitable profits from which the 
            future reversal of the underlying timing differences can be 
            deducted. Timing differences are differences arising between 
            the Company's taxable profits and its results as stated in 
            the financial statements which are capable of reversal in 
            one or more subsequent periods. Deferred tax is measured on 
            a non-discounted basis at the tax rates that are expected 
            to apply in the periods in which timing differences are expected 
            to reverse, based on tax rates and laws enacted or substantively 
            enacted at the Statement of Financial Position date. 
           The tax effect of different items of income/gain and expenditure/loss 
            is allocated between capital and revenue within the Statement 
            of Comprehensive Income on the same basis as the particular 
            item to which it relates using the Company's effective rate 
            of tax for the year, based on the marginal basis. 
      (g)  Foreign currency . Assets and liabilities in foreign currencies 
            are translated at the rates of exchange ruling on the Statement 
            of Financial Position date. Transactions involving foreign 
            currencies are converted at the rate ruling on the date of 
            the transaction. Gains and losses on dividends receivable 
            are recognised in the Statement of Comprehensive Income and 
            are reflected in the revenue reserve. Gains and losses on 
            the realisation of investments in foreign currencies and unrealised 
            gains and losses on investments in foreign currencies are 
            recognised in the Statement of Comprehensive Income and are 
            then transferred to the capital reserve. 
      (h)  Convertible Unsecured Loan Stock . Convertible Unsecured Loan 
            Stock ("CULS") issued by the Company is regarded as a compound 
            instrument, comprising of a liability component and an equity 
            component. At the date of issue, the fair value of the liability 
            component of the 2.25% CULS 2025 was estimated by assuming 
            that an equivalent non-convertible obligation of the Company 
            would have an effective interest rate of 3.063%. The fair 
            value of the equity component, representing the option to 
            convert liability into equity, is derived from the difference 
            between the issue proceeds of the CULS and the fair value 
            assigned to the liability. The liability component is subsequently 
            measured at amortised cost using the effective interest rate 
            and the equity component remains unchanged. 
           Direct expenses associated with the CULS issue are allocated 
            to the liability and equity components in proportion to the 
            split of the proceeds of the issue. Expenses allocated to 
            the liability component are amortised over the life of the 
            instrument using the effective interest rate. 
      (i)  Cash and cash equivalents . Cash comprises cash in hand and 
            short term deposits. Cash equivalents includes bank overdrafts 
            repayable on demand and short term, highly liquid investments, 
            that are readily convertible to known amounts of cash and 
            that are subject to an insignificant risk of change in value. 
 
 
      (j)  Nature and purpose of reserves 
           Capital redemption reserve. The capital redemption reserve 
            arose when Ordinary shares were redeemed and cancelled, at 
            which point an amount equal to the par value of the Ordinary 
            share capital was transferred from the share capital account 
            to the capital redemption reserve. This is not a distributable 
            reserve. 
           Share premium account. The balance classified as share premium 
            includes the premium above nominal value from the proceeds 
            on issue of any equity share capital comprising Ordinary shares 
            of 5p (2021 - 25p). This is not a distributable reserve. 
           Capital reserve. This reserve reflects any gains or losses 
            on investments realised in the period along with any movement 
            in the fair value of investments held that have been recognised 
            in the Statement of Comprehensive Income. These include gains 
            and losses from foreign currency exchange differences arising 
            on monetary assets and liabilities except for dividend income 
            receivable. Share buybacks to be held in treasury, which is 
            considered to be a distribution to shareholders, is also deducted 
            from this reserve. The realised gains part of this reserve 
            is also distributable for the purpose of funding dividends. 
           Revenue reserve. This reserve reflects all income and costs 
            which are recognised in the revenue column of the Statement 
            of Comprehensive Income. The revenue reserve is distributable 
            by way of dividend. The amount of the revenue reserve as at 
            31 July 2022 may not be available at the time of any future 
            distribution due to movements between 31 July 2022 and the 
            date of distribution. 
      (k)  Treasury shares. When the Company purchases the Company's 
            equity share capital as treasury shares, the amount of the 
            consideration paid, which includes directly attributable costs 
            is recognised as a deduction from equity. When these shares 
            are sold or reissued subsequently, the amount received is 
            recognised as an increase in equity, and the resulting surplus 
            or deficit on the transaction is transferred to or from the 
            capital reserve. 
      (l)  Dividends payable. Final dividends are recognised in the 
            financial statements in the period in which Shareholders approve 
            them. 
      (m)  Segmental reporting. The Directors are of the opinion that 
            the Company is engaged in a single segment of business activity, 
            being investment business. Consequently, no business segmental 
            analysis is provided however an analysis of the geographic 
            exposure of the Company's investments is provided on page 
            36 of the published Annual Report and financial statements 
            for the year ended 31 July 2022 . 
 
 
3.     Income 
       =======================================  ===========  =========== 
                                                   2022         2021 
                                                  GBP'000      GBP'000 
       =======================================  ===========  =========== 
       Income from investments 
       =======================================  ===========  =========== 
       Overseas dividends                         17,292        9,015 
       =======================================  ===========  =========== 
       UK dividend income                           591          372 
       =======================================  ===========  =========== 
       Stock dividends                              174          233 
       ---------------------------------------  -----------  ----------- 
                                                  18,057        9,620 
       ---------------------------------------  -----------  ----------- 
 
       =======================================  ===========  =========== 
       Other income 
       =======================================  ===========  =========== 
       Deposit interest                             14            - 
       =======================================  ===========  =========== 
       Other income                                  -            4 
       ---------------------------------------  -----------  ----------- 
                                                    14            4 
       ---------------------------------------  -----------  ----------- 
       Total income                               18,071        9,624 
       ---------------------------------------  -----------  ----------- 
 
 
4.     Investment management fees 
       ====================================================================================== 
                                                  2022                        2021 
       =============================  ============================  ========================= 
                                      Revenue   Capital    Total    Revenue  Capital   Total 
                                      GBP'000   GBP'000   GBP'000   GBP'000  GBP'000  GBP'000 
       =============================  ========  ========  ========  =======  =======  ======= 
       Investment management fees       801      2,403     3,204     3,570      -      3,570 
       -----------------------------  --------  --------  --------  -------  -------  ------- 
 
       The Company has an agreement with abrdn Fund Managers Limited 
        ("aFML") for the provision of management services, under which 
        investment management services have been delegated to abrdn Asia 
        Limited ("abrdn Asia"). 
       With effect from 1 August 2021, the management fee has been payable 
        monthly in arrears, on a tiered basis, exclusive of VAT where 
        applicable, based on market capitalisation at an annual rate of 
        0.85% for the first GBP250 million, 0.6% for the next GBP500 million 
        and 0.5% thereafter. It was previously set at 0.96% per annum 
        of market capitalisation. Market capitalisation is defined as 
        the Company's closing Ordinary share price quoted on the London 
        Stock Exchange multiplied by the number of Ordinary shares in 
        issue (excluding those held in Treasury), as determined on the 
        last business day of the calendar month to which the remuneration 
        relates. The balance due to the Manager at the year end was GBP2,138,000 
        (2021 - GBP663,000) which represents nine months' fees (2021 - 
        two months). 
       The management agreement may be terminated by either the Company 
        or the Manager on the expiry of three months' written notice. 
        On termination, the Manager would be entitled to receive fees 
        which would otherwise have been due to that date. 
       With effect from 1 August 2021, management fees are charged 25% 
        to revenue and 75% to capital (previously 100% to revenue). 
 
 
5.     Administrative expenses 
       ===========================================  =====  =============  ============= 
                                                               2022           2021 
                                                              GBP'000        GBP'000 
       ===========================================  =====  =============  ============= 
       Administration fees(A)                                   103            99 
       ===========================================  =====  =============  ============= 
       Directors' fees(B)                                       144            157 
       ===========================================  =====  =============  ============= 
       Promotional activities(C)                                219            219 
       ===========================================  =====  =============  ============= 
       Auditors' remuneration: 
       ===========================================  =====  =============  ============= 
       - fees payable to the auditors for 
        the audit of the annual financial 
        statements                                              42             44 
       ===========================================  =====  =============  ============= 
       Custodian charges                                        293            276 
       ===========================================  =====  =============  ============= 
       Depositary fees                                          49             47 
       ===========================================  =====  =============  ============= 
       Registrar fees                                           51             44 
       ===========================================  =====  =============  ============= 
       Legal and professional fees (D)                          87             331 
       ===========================================  =====  =============  ============= 
       Other expenses                                           175            169 
       -------------------------------------------  -----  -------------  ------------- 
                                                               1,163          1,386 
       -------------------------------------------  -----  -------------  ------------- 
       (A) The Company has an agreement with aFML for the provision 
        of administration services. The administration fee is payable 
        quarterly in advance and is adjusted annually to reflect the movement 
        in the Retail Prices Index. The balance due to aFML at the year 
        end was GBP52,000 (2021 - GBP25,000). The agreement is terminable 
        on six months' notice. 
       (B) No pension contributions were made in respect of any of the 
        Directors. 
       (C) Under the management agreement, the Company has also appointed 
        aFML to provide promotional activities to the Company by way of 
        its participation in the abrdn Investment Trust Share Plan and 
        ISA. aFML has delegated this role to abrdn plc. The total fee 
        paid and payable under the agreement in relation to promotional 
        activities was GBP219,000 (2021 - GBP219,000). There was a GBP73,000 
        (2021 - GBP73,000) balance due to abrdn plc at the year end. 
       (D) As per note 22, the Statement of Comprehensive Income, the 
        Statement of Financial Position and the Statement of Changes in 
        Equity for the year ended 31 July 2021 have been restated to reallocate 
        costs of GBP250,000 incurred during that period in relation to 
        the long-term investment strategy review from revenue to capital. 
        There has been no change to the overall charge for the year ended 
        31 July 2021 of GBP331,000. 
 
 
6.     Finance costs 
       ========================================================================================= 
                                                      2022                       2021 
       ===================================  =========================  ========================= 
                                            Revenue  Capital   Total   Revenue  Capital   Total 
                                            GBP'000  GBP'000  GBP'000  GBP'000  GBP'000  GBP'000 
       ===================================  =======  =======  =======  =======  =======  ======= 
       Loans repayable in less than 
        one year                               -        -        -       50        -       50 
       ===================================  =======  =======  =======  =======  =======  ======= 
       Interest on 3.05% Senior Unsecured 
        Loan Note 2035                        230      691      921      611       -       611 
       ===================================  =======  =======  =======  =======  =======  ======= 
       Interest on 2.25% CULS 2025            207      620      827      824       -       824 
       ===================================  =======  =======  =======  =======  =======  ======= 
       Notional interest on 2.25% CULS 
        2025                                  39       115      154      153       -       153 
       ===================================  =======  =======  =======  =======  =======  ======= 
       Amortisation of 2.25% CULS 2025 
        issue expenses                        23       71       94       94        -       94 
       -----------------------------------  -------  -------  -------  -------  -------  ------- 
                                              499     1,497    1,996    1,732      -      1,732 
       -----------------------------------  -------  -------  -------  -------  -------  ------- 
 
       With effect from 1 August 2021, finance costs have been charged 
        25% to revenue and 75% to capital (previously 100% to revenue). 
 
 
7.     Taxation 
                                                            2022                              2021 
             ==================================  =======  ========  ========  ===========  ===========  ======== 
                                                 Revenue  Capital    Total      Revenue      Capital     Total 
                                                 GBP'000  GBP'000   GBP'000     GBP'000      GBP'000    GBP'000 
             ==================================  =======  ========  ========  ===========  ===========  ======== 
       (a)   Analysis of charge for the 
              year 
             ==================================  =======  ========  ========  ===========  ===========  ======== 
             Indian capital gains tax 
              rebate on sales                       -        -         -           -          (101)      (101) 
             ==================================  =======  ========  ========  ===========  ===========  ======== 
             Overseas taxation                     956       71      1,027        550          26         576 
             ----------------------------------  -------  --------  --------  -----------  -----------  -------- 
             Total current tax charge 
              for the year                         956       71      1,027        550         (75)        475 
             ==================================  =======  ========  ========  ===========  ===========  ======== 
             Deferred tax charge on Indian 
              capital gains                         -      (947)     (947)         -          3,631      3,631 
             ----------------------------------  -------  --------  --------  -----------  -----------  -------- 
             Total tax charge for the 
              year                                 956     (876)       80         550         3,556      4,106 
             ----------------------------------  -------  --------  --------  -----------  -----------  -------- 
 
             The Company has recognised a deferred tax liability of GBP2,684,000 
              (2021 - GBP3,631,000) on capital gains which may arise if Indian 
              investments are sold. 
             At 31 July 2022 the Company had surplus management expenses 
              and loan relationship deficits of GBP70,420,000 (2021 - GBP64,205,000) 
              in respect of which a deferred tax asset has not been recognised. 
              This is due to the Company having sufficient excess management 
              expenses available to cover the potential liability and the 
              Company is not expected to generate taxable income in the future 
              in excess of deductible expenses. The Finance Act 2021 received 
              Royal Assent on 10 June 2021 and the rate of Corporation Tax 
              of 25% effective from 1 April 2023 has been used to calculate 
              the potential deferred tax asset of GBP17,605,000 (2021 - GBP16,051,000). 
       (b)   Factors affecting the tax charge for the year. The tax assessed 
              for the year is higher (2021 - lower) than the current standard 
              rate of corporation tax in the UK for a large company of 19% 
              (2021 - 19%). The differences are explained below: 
 
             ==================================  =======  ========  ========  ===========  ===========  ======== 
                                                            2022                              2021 
             ==================================  =======  ========  ========  ===========  ===========  ======== 
                                                                              (*Restated)  (*Restated) 
                                                 Revenue  Capital    Total      Revenue      Capital     Total 
                                                 GBP'000  GBP'000   GBP'000     GBP'000      GBP'000    GBP'000 
             ==================================  =======  ========  ========  ===========  ===========  ======== 
             Return before taxation(A)           15,608   (26,550)  (10,942)     3,186       147,403    150,589 
             ==================================  =======  ========  ========  ===========  ===========  ======== 
 
             ==================================  =======  ========  ========  ===========  ===========  ======== 
             Return multiplied by the 
              standard tax rate of corporation 
              tax of 19%(A)                       2,966   (5,045)   (2,079)       605        28,007      28,612 
             ==================================  =======  ========  ========  ===========  ===========  ======== 
             Effects of: 
             ==================================  =======  ========  ========  ===========  ===========  ======== 
             Losses/(gains) on investments 
              not taxable                           -      4,242     4,242         -        (28,135)    (28,135) 
             ==================================  =======  ========  ========  ===========  ===========  ======== 
             Exchange (gains)/losses                -       (14)      (14)         -           81          81 
             ==================================  =======  ========  ========  ===========  ===========  ======== 
             Overseas tax                          956       71      1,027        550          26         576 
             ==================================  =======  ========  ========  ===========  ===========  ======== 
             Indian capital gains tax 
              rebate on sales                       -        -         -           -          (101)      (101) 
             ==================================  =======  ========  ========  ===========  ===========  ======== 
             Movement in deferred tax 
              liability on Indian capital 
              gains                                 -      (947)     (947)         -          3,631      3,631 
             ==================================  =======  ========  ========  ===========  ===========  ======== 
             UK dividend income                   (112)      -       (112)       (71)           -         (71) 
             ==================================  =======  ========  ========  ===========  ===========  ======== 
             Non-taxable dividend income         (3,319)     -      (3,319)     (1,757)         -       (1,757) 
             ==================================  =======  ========  ========  ===========  ===========  ======== 
             Expenses not deductible 
              for tax purposes                     25        76       101         25            -          25 
             ==================================  =======  ========  ========  ===========  ===========  ======== 
             Movement in unutilised management 
              expenses(A)                          345      457       802         869          47         916 
             ==================================  =======  ========  ========  ===========  ===========  ======== 
             Movement in unutilised loan 
              relationship deficits                95       284       379         329           -         329 
             ----------------------------------  -------  --------  --------  -----------  -----------  -------- 
             Total tax charge for the 
              year                                 956     (876)       80         550         3,556      4,106 
             ----------------------------------  -------  --------  --------  -----------  -----------  -------- 
             (A) Further details of the restatement can be found in note 
              22. 
 
 
8.     Dividends 
       ===============================================  =============  ============= 
                                                            2022           2021 
                                                           GBP'000        GBP'000 
       ===============================================  =============  ============= 
       Final dividend for 2021 - 3.0p (2020 
        - 2.9p)                                             4,708          4,612 
       ===============================================  =============  ============= 
       Special dividend for 2021 - 0.2p (2020 
        - 0.9p)                                              314           1,431 
       ===============================================  =============  ============= 
       Interim dividend for 2022 - 3.2p (2021 
        - nil)                                              5,023            - 
       ===============================================  =============  ============= 
       Interim dividend for 2022 - 1.6p (2021 
        - nil)                                              2,511            - 
       ===============================================  =============  ============= 
       Write off 2018 dividend debtor                         -              1 
       -----------------------------------------------  -------------  ------------- 
                                                           12,556          6,044 
       -----------------------------------------------  -------------  ------------- 
 
       Proposed final and special dividends are subject to approval 
        by shareholders at the Annual General Meeting and are not included 
        as a liability in the financial statements. 
       We set out below the total dividends paid and proposed in respect 
        of the financial year, which is the basis on which the requirements 
        of Sections 1158 - 1159 of the Corporation Tax Act 2010 are considered. 
        The revenue available for distribution by way of dividend for 
        the current year is GBP14,652,000 (2021 (*restated- GBP2,636,000). 
 
       ===============================================  =============  ============= 
                                                            2022           2021 
                                                           GBP'000        GBP'000 
       ===============================================  =============  ============= 
       Interim dividend for 2022 - 3.2p (2021 
        - nil)                                              5023             - 
       ===============================================  =============  ============= 
       Interim dividend for 2022 - 1.6p (2021 
        - nil)                                              2511             - 
       ===============================================  =============  ============= 
       Interim dividend for 2022 - 1.6p (2021 
        - nil)                                              2511             - 
       ===============================================  =============  ============= 
       Proposed final dividend for 2022 - nil 
        (2021 - 3.0p)                                         -            4,708 
       ===============================================  =============  ============= 
       Proposed special dividend for 2022 - 
        1.6p (2021 - 0.2p)                                  2,511           314 
       -----------------------------------------------  -------------  ------------- 
                                                           12,556          5,022 
       -----------------------------------------------  -------------  ------------- 
 
       The amount reflected above for the cost of the proposed final 
        and special dividend for 2022 is based on 156,953,631 Ordinary 
        shares, being the number of Ordinary shares in issue excluding 
        shares held in treasury at the date of this Report. 
       The rates disclosed for prior year has been restated to reflect 
        the 5:1 sub-division as disclosed in note 14. 
 
 
9.     Return per share 
       =============================================================================================== 
                                            2022                                 2021 
       ========================  =======  ========  ===========  ===========  ===========  =========== 
                                                                 (*Restated)  (*Restated) 
                                 Revenue  Capital      Total       Revenue      Capital       Total 
       ========================  =======  ========  ===========  ===========  ===========  =========== 
       Basic 
       ========================  =======  ========  ===========  ===========  ===========  =========== 
       Return after taxation 
        (GBP'000)                14,652   (25,674)   (11,022)       2,636       143,847      146,483 
       ========================  =======  ========  ===========  ===========  ===========  =========== 
       Weighted average number 
        of shares in issue(A)                       156,951,436                            158,635,715 
       ========================  =======  ========  ===========  ===========  ===========  =========== 
       Return per share (p)       9.34    (16.36)     (7.02)        1.66         90.68        92.34 
       ------------------------  -------  --------  -----------  -----------  -----------  ----------- 
 
       ========================  =======  ========  ===========  ===========  ===========  =========== 
                                            2022                                 2021 
       ========================  =======  ========  ===========  ===========  ===========  =========== 
       Diluted                   Revenue  Capital      Total       Revenue      Capital       Total 
       ========================  =======  ========  ===========  ===========  ===========  =========== 
       Return after taxation 
        (GBP'000)                14,831   (25,139)   (10,308)       3,253       143,847      147,100 
       ========================  =======  ========  ===========  ===========  ===========  =========== 
       Weighted average number 
        of shares in issue(AB)                      169,459,584                            171,154,920 
       ========================  =======  ========  ===========  ===========  ===========  =========== 
       Return per share (p)       8.75      n/a         n/a          n/a         84.04        85.95 
       ------------------------  -------  --------  -----------  -----------  -----------  ----------- 
       (A) Calculated excluding shares held in treasury. 
       (B) The calculation of the diluted total, revenue and capital 
        returns per Ordinary share is carried out in accordance with 
        IAS 33, "Earnings per Share". For the purpose of calculating 
        total, revenue and capital returns per Ordinary share, the number 
        of Ordinary shares used is the weighted average number used in 
        the basic calculation plus the number of Ordinary shares deemed 
        to be issued for no consideration on exercise of all 2.25% Convertible 
        Unsecured Loan Stock 2025 ("CULS"). The calculations indicate 
        that the exercise of CULS would result in an increase in the 
        weighted average number of Ordinary shares of 12,508,148 (2021 
        (*restated) - 12,519,205) to 169,459,584 (2021 (*restated) - 
        171,154,920) Ordinary shares. 
       For the year ended 31 July 2022 the assumed conversion for potential 
        Ordinary shares was dilutive to the revenue return per Ordinary 
        share but non-dilutive to the capital return per Ordinary share 
        (2021 - non-dilutive to the revenue return but dilutive to the 
        capital return). Where dilution occurs, the net returns are adjusted 
        for interest charges and issue expenses relating to the CULS 
        (2022 - GBP714,000; 2021 - GBP617,000). Total earnings for the 
        period are tested for dilution. Once dilution has been determined 
        individual revenue and capital earnings are adjusted. 
       The returns per share figures for 2021 have been restated to 
        reflect the 5:1 sub-division as disclosed in note 14. 
 
 
10.    Investments at fair value through profit or loss 
       ========================================================================= 
                                                           2022         2021 
                                                          GBP'000      GBP'000 
       ===============================================  ===========  =========== 
       Opening book cost                                  346,431      314,306 
       ===============================================  ===========  =========== 
       Opening investment holding gains                   194,490      80,161 
       -----------------------------------------------  -----------  ----------- 
       Opening fair value                                 540,921      394,467 
       ===============================================  ===========  =========== 
       Analysis of transactions made during 
        the year 
       ===============================================  ===========  =========== 
       Purchases at cost                                  79,496       83,636 
       ===============================================  ===========  =========== 
       Sales proceeds received                           (73,252)     (85,260) 
       ===============================================  ===========  =========== 
       (Losses)/gains on investments                     (22,324)      148,078 
       -----------------------------------------------  -----------  ----------- 
       Closing fair value                                 524,841      540,921 
       -----------------------------------------------  -----------  ----------- 
 
       ===============================================  ===========  =========== 
       Closing book cost                                  377,733      346,431 
       ===============================================  ===========  =========== 
       Closing investment gains                           147,108      194,490 
       -----------------------------------------------  -----------  ----------- 
       Closing fair value                                 524,841      540,921 
       -----------------------------------------------  -----------  ----------- 
 
       ===============================================  ===========  =========== 
                                                           2022         2021 
                                                          GBP'000      GBP'000 
       ===============================================  ===========  =========== 
       Investments listed on an overseas investment 
        exchange                                          510,984      529,261 
       ===============================================  ===========  =========== 
       Investments listed on the UK investment 
        exchange                                          13,857       11,660 
       -----------------------------------------------  -----------  ----------- 
                                                          524,841      540,921 
       -----------------------------------------------  -----------  ----------- 
 
       The Company received GBP73,252,000 (2021 - GBP85,260,000) from 
        investments sold in the period. The book cost of these investments 
        when they were purchased was GBP48,194,000 (2021 - GBP51,511,000). 
        These investments have been revalued over time and until they 
        were sold any unrealised gains/losses were included in the fair 
        value of the investments. 
       Transaction costs . During the year expenses were incurred in 
        acquiring or disposing of investments classified as fair value 
        through profit or loss. These have been expensed through capital 
        and are included within (losses)/gains on investments in the 
        Statement of Comprehensive Income. The total costs were as follows: 
                                                           2022         2021 
                                                          GBP'000      GBP'000 
       ===============================================  ===========  =========== 
       Purchases                                            91           173 
       ===============================================  ===========  =========== 
       Sales                                                147          152 
       -----------------------------------------------  -----------  ----------- 
                                                            238          325 
       -----------------------------------------------  -----------  ----------- 
 
       The above transaction costs are calculated in line with the AIC 
        SORP. The transaction costs in the Company's Key Information 
        Document are calculated on a different basis and in line with 
        the PRIIPs regulations. 
 
 
11.    Debtors: amounts falling due within one 
        year 
       ========================================  ===========  =========== 
                                                    2022         2021 
                                                   GBP'000      GBP'000 
       ========================================  ===========  =========== 
       Amounts due from brokers                      280         4,060 
       ========================================  ===========  =========== 
       Other debtors                                 766          418 
       ========================================  ===========  =========== 
       Prepayments and accrued income                418          629 
       ----------------------------------------  -----------  ----------- 
                                                    1,464        5,107 
       ----------------------------------------  -----------  ----------- 
 
       None of the above amounts is past their due date or impaired 
        (2021 - same). 
 
 
12.    Creditors 
       ======================================  ===========  =========== 
                                                  2022         2021 
       Amounts falling due within one year       GBP'000      GBP'000 
       ======================================  ===========  =========== 
       Amounts due to brokers                       -          1,997 
       ======================================  ===========  =========== 
       Other creditors                            2,864        1,425 
       --------------------------------------  -----------  ----------- 
                                                  2,864        3,422 
       --------------------------------------  -----------  ----------- 
 
 
13.     Non-current liabilities 
                                                    2022                            2021 
              =======================  ===============================  ============================= 
                                        Number    Liability   Equity    Number   Liability   Equity 
                                           of                              of 
                                         units    component  component   units   component  component 
        (a)   CULS                      GBP'000    GBP'000    GBP'000   GBP'000   GBP'000    GBP'000 
              =======================  =========  =========  =========  =======  =========  ========= 
              2.25% Convertible 
               Unsecured Loan Stock 
               2025 
              =======================  =====      =========  =========  =======  =========  ========= 
              Balance at beginning 
               of year                  36,658     35,708      1,057    36,694    35,497      1,057 
              =======================  =========  =========  =========  =======  =========  ========= 
              Conversion of 2.25% 
               CULS 2025                 (16)       (16)         -       (36)      (36)         - 
              =======================  =========  =========  =========  =======  =========  ========= 
              Notional interest 
               on CULS transferred 
               to revenue reserve          -         154         -         -        153         - 
              =======================  =========  =========  =========  =======  =========  ========= 
              Amortisation and issue 
               expenses                    -         94          -         -        94          - 
              -----------------------  ---------  ---------  ---------  -------  ---------  --------- 
              Balance at end of 
               year                     36,642     35,940      1,057    36,658    35,708      1,057 
              -----------------------  ---------  ---------  ---------  -------  ---------  --------- 
 
              The 2.25% Convertible Unsecured Loan Stock 2025 ("CULS") can 
               be converted at the election of holders into Ordinary shares 
               during the months of May and November each year throughout 
               their life, commencing 30 November 2018 to 31 May 2025 at 
               a rate of 1 Ordinary share for every 293.0p (2021 - 1,465.0p) 
               nominal of CULS. Interest is payable on the CULS on 31 May 
               and 30 November each year, commencing on 30 November 2018. 
               With effect from 1 August 2021, the interest will be charged 
               25% to revenue and 75% to capital (previously 100% to revenue), 
               in line with the Board's expected long-term split of returns 
               from the investment portfolio of the Company. 
              The CULS has been constituted as an unsecured subordinated 
               obligation of the Company by the Trust Deed between the Company 
               and the Trustee, the Law Debenture Trust Corporation p.l.c., 
               dated 23 May 2018. The Trust Deed details the 2025 CULS holders' 
               rights and the Company's obligations to the CULS holders and 
               the Trustee oversees the operation of the Trust Deed. In the 
               event of a winding-up of the Company the rights and claims 
               of the Trustee and CULS holders would be subordinate to the 
               claims of all creditors in respect of the Company's secured 
               and unsecured borrowings, under the terms of the Trust Deed. 
              In 2022 the Company received elections from CULS holders to 
               convert GBP15,343 (2021 - GBP36,476) nominal amount of CULS 
               into 5,211 (2021 - 2,475) Ordinary shares. 
              The fair value of the 2025 CULS at 31 July 2022 was GBP37,009,000 
               (2021 - GBP37,941,000). 
 
              =======================  =====      =========  =========  =======  =========  ========= 
                                                                                   2022       2021 
        (b)   Loan Note                                                           GBP'000    GBP'000 
              =======================  =====      =========  =========  =======  =========  ========= 
              3.05% Senior Unsecured 
               Loan Note 2035                                                     30,000     30,000 
              ==============================      =========  =========  =======  =========  ========= 
              Unamortised Loan Note 
               issue expenses                                                      (108)      (114) 
              ==============================      ---------  ---------  -------  ---------  --------- 
                                                                                  29,892     29,886 
              -----------------------  -----      ---------  ---------  -------  ---------  --------- 
 
              On 1 December 2020 the Company issued GBP30,000,000 of a 15 
               year loan note at a fixed rate of 3.05%. Interest is payable 
               in half yearly instalments in June and December and the Loan 
               Note is due to be redeemed at par on 1 December 2035. The 
               issue costs of GBP118,000 will be amortised over the life 
               of the loan note. The Company has complied with the Note Purchase 
               Agreement that the ratio of total borrowings to adjusted net 
               assets will not exceed 0.20 to 1.00, that the ratio of total 
               borrowings to adjusted net liquid assets will not exceed 0.60 
               to 1.00, that net tangible assets will not be less than GBP225,000,000 
               and that the minimum number of listed assets will not be less 
               than 40. 
              The fair value of the Senior Unsecured Loan Note as at 31 
               July 2022 was GBP28,804,000 (2021 - GBP30,713,000), the value 
               being based on a comparable quoted debt security. 
 
              =======================  =====      =========  =========  =======  =========  ========= 
                                                                                   2022       2021 
                                                                                  GBP'000    GBP'000 
              =======================  =====      ---------  ---------  -------  ---------  --------- 
              Deferred tax liability 
        (c)    on Indian capital gains                                             2,684      3,631 
              ------------------------------      ---------  ---------  -------  ---------  --------- 
 
 
 
14.    Called up share capital 
       ===========================  ===============  ==============  ============= 
                                                          2022           2021 
                                                        GBP'000         GBP'000 
       ===========================  ===============  ==============  ============= 
       Allotted, called-up and 
        fully paid 
       ===========================  ===============  ==============  ============= 
       Ordinary shares of 5p 
        (2021 - 25p)                                     7,848           7,848 
       ===========================  ===============  ==============  ============= 
       Treasury shares                                   2,587           2,587 
       ---------------------------  ---------------  --------------  ------------- 
                                                         10,435         10,435 
       ---------------------------  ---------------  --------------  ------------- 
 
       ===========================  ===============  ==============  ============= 
                                       Ordinary         Treasury         Total 
                                        shares           shares         shares 
                                        Number           Number         Number 
       ===========================  ===============  ==============  ============= 
       At 31 July 2021(A)             156,948,420      51,744,590     208,693,010 
       ===========================  ===============  ==============  ============= 
       Conversion of CULS                5,211             -             5,211 
       ---------------------------  ---------------  --------------  ------------- 
       At 31 July 2022                156,953,631      51,744,590     208,698,221 
       ---------------------------  ---------------  --------------  ------------- 
       (A) The prior year has been restated to reflect the 5:1 sub-division 
        as disclosed below. 
 
       On 7 February 2022 there was a sub-division of each existing 
        Ordinary 25p share into five Ordinary shares of 5p each. 
       During the year no Ordinary shares of 5p were purchased (2021 
        - 1,055,000 Ordinary shares of 25p purchased) by the Company 
        at a total cost of GBPnil (2021 - total cost of GBP11,473,000), 
        all of which were held in treasury. At the year end 51,744,590 
        (2021 (*restated) - 51,744,590) shares were held in treasury, 
        which represents 24.79% (2021 - 24.79%) of the Company's total 
        issued share capital at 31 July 2022. During the year there were 
        a further 5,211 (2021 - 2,475) Ordinary shares issued as a result 
        of CULS conversions. 
       Since the year end no further Ordinary shares of 5p have been 
        purchased by the Company. 
 
 
15.    Reserves 
       ===============================================  ===========  =========== 
                                                                        2021 
                                                           2022      (*Restated) 
                                                          GBP'000      GBP'000 
       ===============================================  ===========  =========== 
       Capital reserve 
       ===============================================  ===========  =========== 
       At 31 July 2021 (*restated - see note 
        22)                                               401,124      268,750 
       ===============================================  ===========  =========== 
       Movement in investment holdings fair 
        value                                            (47,382)      114,329 
       ===============================================  ===========  =========== 
       Gains on realisation of investments at 
        fair value                                        25,058       33,749 
       ===============================================  ===========  =========== 
       Purchase of own shares to treasury                    -        (11,473) 
       ===============================================  ===========  =========== 
       Indian capital gains tax rebate on sales              -           101 
       ===============================================  ===========  =========== 
       Movement in deferred liability on Indian 
        capital gains                                       947        (3,631) 
       ===============================================  ===========  =========== 
       Withholding tax charged on capital dividends        (71)         (26) 
       ===============================================  ===========  =========== 
       Foreign exchange movement                            72          (425) 
       ===============================================  ===========  =========== 
       Capital expenses (*restated - see note 
        22)                                               (4,298)       (250) 
       -----------------------------------------------  -----------  ----------- 
       At 31 July 2022                                    375,450      401,124 
       -----------------------------------------------  -----------  ----------- 
 
       The capital reserve includes investment holding gains amounting 
        to GBP147,108,000 (2021 - GBP194,490,000) as disclosed in note 
        10. The above split in capital reserve is shown in accordance 
        with provisions of the Statement of Recommended Practice 'Financial 
        Statements Of Investment Trust Companies and Venture Capital 
        Trusts'. 
 
 
16.    Net asset value per share 
       ==============================================  ==============  ============== 
                                                            2022            2021 
       ==============================================  ==============  ============== 
       Basic 
       ==============================================  ==============  ============== 
       Net assets attributable                         GBP464,396,000  GBP487,958,000 
       ==============================================  ==============  ============== 
       Number of shares in issue(AB)                    156,953,631     156,948,420 
       ==============================================  ==============  ============== 
       Net asset value per share(B)                       295.88p         310.90p 
       ----------------------------------------------  --------------  -------------- 
 
       ==============================================  ==============  ============== 
                                                            2022            2021 
       ==============================================  ==============  ============== 
       Diluted 
       ==============================================  ==============  ============== 
       Net assets attributable                         GBP500,336,000  GBP523,666,000 
       ==============================================  ==============  ============== 
       Number of shares in issue(AB)                    169,459,574     169,459,600 
       ==============================================  ==============  ============== 
       Net asset value per share(BC)                      295.25p         309.02p 
       ----------------------------------------------  --------------  -------------- 
       (A) Calculated excluding shares held 
        in treasury. 
       (B) Figures for 2021 have been restated 
        to reflect the 5:1 sub-division as disclosed 
        in note 14 . 
       (C) The diluted net asset value per share has been calculated 
        on the assumption that GBP36,642,412 (2021 - GBP36,657,755) 2.25% 
        Convertible Unsecured Loan Stock 2025 ("CULS") is converted at 
        293.0p (2021 - 1,465.0p) per share, giving a total of 169,459,574 
        (2021 (*restated) - 169,459,600) shares. Where dilution occurs, 
        the net assets are adjusted for items relating to the CULS. 
       Net asset value per share - debt converted . In accordance with 
        the Company's understanding of the current methodology adopted 
        by the AIC, convertible financial instruments are deemed to be 
        "in the money" if the cum income net asset value ("NAV") exceeds 
        the conversion price of 293.0p (2021 - 1,465.0p) per share. In 
        such circumstances a net asset value is produced and disclosed 
        assuming the convertible debt is fully converted. At 31 July 
        2022 the cum income NAV was 295.88p (2021 (*restated) - 310.90p) 
        and thus the CULS were 'in the money' (2021 - same). 
 
 
 17.     Analysis of changes in net debt 
       ====================================================================================== 
                                           At                                           At 
                                        31 July     Currency      Cash    Non-cash   31 July 
                                          2021     differences   flows    movements    2022 
                                         GBP'000     GBP'000     GBP'000   GBP'000    GBP'000 
       ===============================  ========  ============  ========  =========  ======== 
         Cash and short term deposits    14,577        72       (5,178)       -       9,471 
       ===============================  ========  ============  ========  =========  ======== 
         Debt due after more than 
          one year                      (69,225)       -           -         709     (68,516) 
       -------------------------------  --------  ------------  --------  ---------  -------- 
                                        (54,648)       72       (5,178)      709     (59,045) 
       -------------------------------  --------  ------------  --------  ---------  -------- 
 
       ===============================  ========  ============  ========  =========  ======== 
                                           At                                           At 
                                        31 July     Currency      Cash    Non-cash   31 July 
                                          2020     differences   flows    movements    2021 
                                         GBP'000     GBP'000     GBP'000   GBP'000    GBP'000 
       ===============================  ========  ============  ========  =========  ======== 
         Cash and short term deposits    10,919      (425)       4,083        -       14,577 
       ===============================  ========  ============  ========  =========  ======== 
         Debt due within one year       (11,200)       -         11,200       -         - 
       ===============================  ========  ============  ========  =========  ======== 
         Debt due after more than 
          one year                      (35,497)       -        (29,882)   (3,846)   (69,225) 
       -------------------------------  --------  ------------  --------  ---------  -------- 
                                        (35,778)     (425)      (14,599)   (3,846)   (54,648) 
       -------------------------------  --------  ------------  --------  ---------  -------- 
 
       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. 
 
 
18.   Related party transactions and transactions with the Manager 
      Fees payable during the year to the Directors and their interests 
       in shares of the Company are considered to be related party transactions 
       and are disclosed within the Directors' Remuneration Report on 
       pages 56 to 58 of the published Annual Report and financial statements 
       for the year ended 31 July 2022. The balance of fees due to Directors 
       at the year end was GBPnil (2021 - GBPnil). 
      The Company's Investment Manager, abrdn Asia, is a wholly-owned 
       subsidiary of abrdn plc, which has been delegated, under an agreement 
       with aFML, to provide management services to the Company, the 
       terms of which are outlined in notes 4 and 5 along with details 
       of transactions during the year and balances outstanding at the 
       year end. Up until 27 November 2020 Mr Young, a director of abrdn 
       Asia, was the Alternate Director for Mr Martin Gilbert. Up until 
       1 December 2020 Mr Yea was a Director of the Company as well 
       as being a director of the Company's registrar, Equiniti Limited. 
 
 
19.   Financial instruments 
      Risk management . The Company's investment activities expose 
       it to various types of financial risk associated with the financial 
       instruments and markets in which it invests. The Company's financial 
       instruments comprise equities and other investments, cash balances, 
       loans and debtors and creditors that arise directly from its 
       operations; for example, in respect of sales and purchases awaiting 
       settlement, and debtors for accrued income. 
      The Board has delegated the risk management function to aFML 
       under the terms of its management agreement with aFML (further 
       details of which are included under note 4 and in the Directors' 
       Report) however, it remains responsible for the risk and control 
       framework and operation of third parties. The Board regularly 
       reviews and agrees policies for managing each of the key financial 
       risks identified with the Manager. The types of risk and the 
       Manager's approach to the management of each type of risk, are 
       summarised below. Such approach has been applied throughout the 
       year and has not changed since the previous accounting period. 
       The numerical disclosures exclude short-term debtors and creditors. 
      Risk management framework . The directors of aFML collectively 
       assume responsibility for aFML's obligations under the AIFMD 
       including reviewing investment performance and monitoring the 
       Company's risk profile during the year. 
      aFML is a fully integrated member of the abrdn Group ("the Group"), 
       which provides a variety of services and support to aFML in the 
       conduct of its business activities, including in the oversight 
       of the risk management framework for the Company. The AIFM has 
       delegated the day to day administration of the investment policy 
       to abrdn Asia, which is responsible for ensuring that the Company 
       is managed within the terms of its investment guidelines and 
       the limits set out in its pre-investment disclosures to investors 
       (details of which can be found on the Company's website). The 
       AIFM has retained responsibility for monitoring and oversight 
       of investment performance, product risk and regulatory and operational 
       risk for the Company. 
      The Group's Internal Audit Department is independent of the Risk 
       Division and reports directly to the Group CEO and to the Audit 
       Committee of the Group's Board of Directors. The Internal Audit 
       Department is responsible for providing an independent assessment 
       of the Group's control environment. 
      The Manager conducts its risk oversight function through the 
       operation of the Group's risk management processes and systems 
       which are embedded within the Group's operations. The Group's 
       Risk Division supports management in the identification and mitigation 
       of risks and provides independent monitoring of the business. 
       The Division includes Compliance, Business Risk, Market Risk, 
       Risk Management and Legal. The team is headed up by the Group's 
       Chief Risk Officer, who reports to the CEO of the Group. The 
       Risk Division achieves its objective through embedding the Risk 
       Management Framework throughout the organisation using the Group's 
       operational risk management system ("SHIELD"). 
      The Group's corporate governance structure is supported by several 
       committees to assist the board of directors, its subsidiaries 
       and the Company to fulfil their roles and responsibilities. The 
       Group's Risk Division is represented on all committees, with 
       the exception of those committees that deal with investment recommendations. 
       The specific goals and guidelines on the functioning of those 
       committees are described in the committees' terms of reference. 
      Risk management . The main risks the Company faces from these 
       financial instruments are (i) market risk (comprising interest 
       rate, foreign currency and other price risk), (ii) liquidity 
       risk and (iii) credit risk. 
      Market risk. The fair value of or future cash flows from a financial 
       instrument held by the Company may fluctuate because of changes 
       in market prices. This market risk comprises three elements - 
       interest rate risk, currency risk and other price risk. 
      Interest rate risk . Interest rate movements may affect: 
      - the level of income receivable on cash deposits; 
      - valuation of debt securities in the portfolio. 
      Management of the risk . The possible effects on fair value and 
       cash flows that could arise as a result of changes in interest 
       rates are taken into account when making investment and borrowing 
       decisions. When drawn down, interest rates are fixed on borrowings. 
 
 
       Interest rate risk profile. The interest rate risk profile of 
        the Company's financial assets and liabilities, excluding equity 
        holdings which are all non-interest bearing, at the reporting 
        date was as follows: 
 
       ==============================  ==============  =========  =======  ======== 
                                          Weighted     Weighted 
                                           average 
                                         period for     average    Fixed   Floating 
                                            which 
                                       rate is fixed   interest    rate      rate 
                                                          rate 
       At 31 July 2022                     Years           %      GBP'000  GBP'000 
       ==============================  ==============  =========  =======  ======== 
       Assets 
       ==============================  ==============  =========  =======  ======== 
       Sterling                              -             -         -      8,585 
       ==============================  ==============  =========  =======  ======== 
       Taiwan Dollar                         -             -         -       458 
       ==============================  ==============  =========  =======  ======== 
       Vietnam Dong                          -             -         -       371 
       ==============================  ==============  =========  =======  ======== 
       Sri Lanka Rupee                       -             -         -        32 
       ==============================  ==============  =========  =======  ======== 
       Pakistan Rupee                        -             -         -        11 
       ==============================  ==============  =========  =======  ======== 
       Indian Rupee                          -             -         -        9 
       ==============================  ==============  =========  =======  ======== 
       Thailand Baht                         -             -         -        3 
       ==============================  ==============  =========  =======  ======== 
       Malaysian Ringgit                     -             -         -        2 
       ------------------------------  --------------  ---------  -------  -------- 
                                             -             -         -      9,471 
       ------------------------------  --------------  ---------  -------  -------- 
       Liabilities 
       ==============================  ==============  =========  =======  ======== 
       2.25% Convertible Unsecured 
        Loan Stock 2025                     2.83          2.3     35,940      - 
       ==============================  ==============  =========  =======  ======== 
       3.05% Senior Unsecured Loan 
        Note 2035                          13.35          3.1     29,892      - 
       ------------------------------  --------------  ---------  -------  -------- 
                                             -             -      65,832      - 
       ------------------------------  --------------  ---------  -------  -------- 
 
       ==============================  ==============  =========  =======  ======== 
                                          Weighted     Weighted 
                                           average 
                                         period for     average    Fixed   Floating 
                                            which 
                                       rate is fixed   interest    rate      rate 
                                                          rate 
       At 31 July 2021                     Years           %      GBP'000  GBP'000 
       ==============================  ==============  =========  =======  ======== 
       Assets 
       ==============================  ==============  =========  =======  ======== 
       Sterling                              -             -         -      13,712 
       ==============================  ==============  =========  =======  ======== 
       Indian Rupee                          -             -         -       476 
       ==============================  ==============  =========  =======  ======== 
       Pakistan Rupee                        -             -         -        14 
       ==============================  ==============  =========  =======  ======== 
       Thailand Baht                         -             -         -       141 
       ==============================  ==============  =========  =======  ======== 
       Vietnam Dong                          -             -         -        2 
       ==============================  ==============  =========  =======  ======== 
       Malaysian Ringgit                     -             -         -        2 
       ==============================  ==============  =========  =======  ======== 
       Taiwan Dollar                         -             -         -       230 
       ------------------------------  --------------  ---------  -------  -------- 
                                             -             -         -      14,577 
       ------------------------------  --------------  ---------  -------  -------- 
       Liabilities 
       ==============================  ==============  =========  =======  ======== 
       2.25% Convertible Unsecured 
        Loan Stock 2025                     3.83          3.1     35,708      - 
       ==============================  ==============  =========  =======  ======== 
       3.05% Senior Unsecured Loan 
        Note 2035                          14.35          3.1     29,886      - 
       ------------------------------  --------------  ---------  -------  -------- 
                                             -             -      65,594      - 
       ------------------------------  --------------  ---------  -------  -------- 
 
       The weighted average interest rate is based on the current yield 
        of each asset or liability, weighted by its market value. 
       The floating rate assets consist of cash deposits on call earning 
        interest at prevailing market rates. 
       The Company's equity portfolio and short term debtors and creditors 
        have been excluded from the above tables. 
 
 
      Interest rate sensitivity . Movements in interest rates would 
       not significantly affect net assets attributable to the Company's 
       shareholders and total return. 
      Foreign currency risk. Most of the Company's investment portfolio 
       is invested in overseas securities and the Statement of Financial 
       Position, therefore, can be significantly affected by movements 
       in foreign exchange rates. 
      Management of the risk . It is not the Company's policy to hedge 
       this risk on a continuing basis but the Company may, from time 
       to time, match specific overseas investment with foreign currency 
       borrowings. 
      The revenue account is subject to currency fluctuations arising 
       on dividends receivable in foreign currencies and, indirectly, 
       due to the impact of foreign exchange rates upon the profits 
       of investee companies. It is not the Company's policy to hedge 
       this currency risk but the Board keeps under review the currency 
       returns in both capital and income. 
 
 
       Foreign currency risk exposure by currency of denomination: 
 
       =================  ===========  =============  ========  ===========  =============  ======== 
                                      31 July 2022                          31 July 2021 
       =================  ====================================  ==================================== 
                                       Net monetary    Total                 Net monetary    Total 
                           Overseas       assets/     currency   Overseas       assets/     currency 
                          investments  (liabilities)  exposure  Investments  (liabilities)  exposure 
                            GBP'000       GBP'000     GBP'000     GBP'000       GBP'000     GBP'000 
       =================  ===========  =============  ========  ===========  =============  ======== 
       Australian 
        Dollar               7,940           -         7,940         -             -           - 
       =================  ===========  =============  ========  ===========  =============  ======== 
       Chinese Renminbi     15,756           -         15,756      4,619           -         4,619 
       =================  ===========  =============  ========  ===========  =============  ======== 
       Danish Krona         12,352           -         12,352     10,157           -         10,157 
       =================  ===========  =============  ========  ===========  =============  ======== 
       Hong Kong 
        Dollar              64,947           -         64,947     57,636           -         57,636 
       =================  ===========  =============  ========  ===========  =============  ======== 
       Indian Rupee         82,097           9         82,106     90,186          476        90,662 
       =================  ===========  =============  ========  ===========  =============  ======== 
       Indonesian 
        Rupiah              55,431           -         55,431     43,412           -         43,412 
       =================  ===========  =============  ========  ===========  =============  ======== 
       Korean Won           31,429           -         31,429     34,240           -         34,240 
       =================  ===========  =============  ========  ===========  =============  ======== 
       Malaysian 
        Ringgit             35,339           2         35,341     29,106           2         29,108 
       =================  ===========  =============  ========  ===========  =============  ======== 
       Taiwan Dollar        56,994          458        57,452     78,501          230        78,731 
       =================  ===========  =============  ========  ===========  =============  ======== 
       New Zealand 
        Dollar              14,061           -         14,061     17,054           -         17,054 
       =================  ===========  =============  ========  ===========  =============  ======== 
       Pakistan Rupee          -            11           11         927           14          941 
       =================  ===========  =============  ========  ===========  =============  ======== 
       Philippine 
        Peso                19,825           -         19,825     21,921           -         21,921 
       =================  ===========  =============  ========  ===========  =============  ======== 
       Singapore 
        Dollar              41,585           -         41,585     55,283           -         55,283 
       =================  ===========  =============  ========  ===========  =============  ======== 
       Sri Lankan 
        Rupee                7,640          32         7,672      13,942           -         13,942 
       =================  ===========  =============  ========  ===========  =============  ======== 
       Thailand Baht        35,114           3         35,117     44,104          141        44,245 
       =================  ===========  =============  ========  ===========  =============  ======== 
       Vietnamese 
        Dong                30,474          371        30,845     28,173           2         28,175 
       =================  ===========  =============  ========  ===========  =============  ======== 
                            510,984         886       511,870     529,261         865       530,126 
       =================  ===========  =============  ========  ===========  =============  ======== 
       Sterling             13,857       (57,247)     (43,390)    11,660       (51,882)     (40,222) 
       -----------------  -----------  -------------  --------  -----------  -------------  -------- 
       Total                524,841      (56,361)     468,480     540,921      (51,017)     489,904 
       -----------------  -----------  -------------  --------  -----------  -------------  -------- 
 
       Foreign currency sensitivity . The Company's foreign currency 
        financial instruments are in the form of equity investments, 
        fixed interest investments, cash and bank loans. The sensitivity 
        of the former has been included within other price risk sensitivity 
        analysis so as to show the overall level of exposure. Due consideration 
        is paid to foreign currency risk throughout the investment process. 
       Other price risk. Other price risks (ie changes in market prices 
        other than those arising from interest rate or currency risk) 
        may affect the value of the quoted investments. 
       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. It is the Board's policy to hold an appropriate 
        spread of investments in the portfolio in order to reduce the 
        risk arising from factors specific to a particular country or 
        sector. Both the allocation of assets and the stock selection 
        process, as detailed on pages 106 to 108 of the published Annual 
        Report and financial statements for the year ended 31 July 2022, 
        act to reduce market risk. The Manager actively monitors market 
        prices throughout the year and reports to the Board, which meets 
        regularly in order to review investment strategy. The investments 
        held by the Company are listed on various stock exchanges worldwide. 
       Other price risk sensitivity . If market prices at the reporting 
        date had been 20% (2021 - 20%) higher or lower while all other 
        variables remained constant, the return attributable to Ordinary 
        shareholders for the year ended 31 July 2022 would have increased/(decreased) 
        by GBP104,968,000 (2021 - increased/(decreased) by GBP108,184,000) 
        and equity reserves would have increased/(decreased) by the same 
        amount. 
       Liquidity risk . This is the risk that the Company will encounter 
        difficulty in meeting obligations associated with financial liabilities. 
       Management of the risk. The Board imposes borrowing limits to 
        ensure gearing levels are appropriate to market conditions and 
        reviews these on a regular basis. Gearing comprises both senior 
        unsecured loan notes and convertible unsecured loan stock. The 
        Board has imposed a maximum gearing level, measured on the most 
        stringent basis of calculation after netting off cash equivalents, 
        of 25%. Details of borrowings at the 31 July 2022 are shown in 
        note 13. 
       Liquidity risk is not considered to be significant as the Company's 
        assets comprise mainly readily realisable securities, which can 
        be sold to meet funding commitments if necessary. Details of 
        the Board's policy on gearing are shown in the investment policy 
        section on page 12 of the published Annual Report and financial 
        statements for the year ended 31 July 2022. 
 
 
       Liquidity risk exposure . At 31 July 2022 the Company had borrowings 
        in the form of the GBP36,642,000 (2021 - GBP36,658,000) nominal 
        of 2.25% Convertible Unsecured Loan Stock 2025 and GBP29,892,000 
        (2021 - GBP29,886,000) in the form of the 3.05% Senior Unsecured 
        Loan Note 2035. 
       At 31 July 2022 the amortised cost of the Company's 3.05% Senior 
        Unsecured Loan Note 2035 was GBP29,892,000 (2021 - GBP29,886,000). 
        The maximum exposure at 31 July 2022 was GBP29,892,000 (2021 
        - GBP29,886,000) and the minimum exposure at 31 July 2022 was 
        GBP29,886,000 (2021 - GBP29,886,000). 
       The maturity profile of the Company's existing borrowings is 
        set out below. 
 
       ================  =========  ========  ============  ========  ============  ========= 
                                                                          Due 
                                                              Due       between 
                                                Expected     within     3 months    Due after 
                                               cashflows    3 months   and 1 year    1 year 
       31 July 2022                             GBP'000     GBP'000     GBP'000      GBP'000 
       ================  =========  ========  ============  ========  ============  ========= 
       2.25% Convertible Unsecured 
        Loan Stock 2025                          38,282        -          827        37,455 
       =====================================  ============  ========  ============  ========= 
       3.05% Senior Unsecured Loan 
        Note 2035                                42,353        -          915        41,438 
       =====================================  ------------  --------  ------------  --------- 
                                                 80,635        -         1,742       78,893 
       ----------------  ---------  --------  ------------  --------  ------------  --------- 
 
       ================  =========  ========  ============  ========  ============  ========= 
                                                                          Due 
                                                              Due       between 
                                                Expected     within     3 months    Due after 
                                               cashflows    3 months   and 1 year    1 year 
       31 July 2021                             GBP'000     GBP'000     GBP'000      GBP'000 
       ================  =========  ========  ============  ========  ============  ========= 
       2.25% Convertible Unsecured 
        Loan Stock 2025                          39,692        -          826        38,866 
       =====================================  ============  ========  ============  ========= 
       3.05% Senior Unsecured Loan 
        Note 2035                                43,268        -          915        42,353 
       =====================================  ------------  --------  ------------  --------- 
                                                 82,960        -         1,741       81,219 
       ----------------  ---------  --------  ------------  --------  ------------  --------- 
 
       Credit risk . This is the risk of failure of the counterparty 
        to a transaction to discharge its obligations under that transaction 
        that could result in the Company suffering a loss. 
       Management of the risk. Investment transactions are carried out 
        with a large number of brokers, whose credit-standing is reviewed 
        periodically by the Investment Manager, and limits are set on 
        the amount that may be due from any one broker. Settlement of 
        investment transactions are also done on a delivery versus payment 
        basis; 
       - the risk of counterparty exposure due to failed trades causing 
        a loss to the Company is mitigated by the review of failed trade 
        reports on a monthly basis. In addition, the third party administrator 
        carries out a stock reconciliation to Custodian records on a 
        monthly basis to ensure discrepancies are picked up on a timely 
        basis. The Manager's compliance department carries out periodic 
        reviews of the Custodian's operations and reports its finding 
        to the Manager's risk management committee. This review will 
        also include checks on the maintenance and security of investments 
        held; and 
       - cash is held only with reputable banks with high quality external 
        credit ratings. 
       It is the Manager's policy to trade only with A- and above (Long 
        Term rated) and A-1/P-1 (Short Term rated) counterparties. 
       None of the Company's financial assets is secured by collateral 
        or other credit enhancements. 
       Credit risk exposure . In summary, compared to the amounts in 
        the Statement of Financial Position, the maximum exposure to 
        credit risk at 31 July was as follows: 
 
       ================  =========  ========  ============  ========  ============  ========= 
                                                       2022                    2021 
       ================  =========  ========  ======================  ======================= 
                                               Statement               Statement 
                                              of Financial  Maximum   of Financial   Maximum 
                                                Position    exposure    Position    exposure 
       Current assets                           GBP'000     GBP'000     GBP'000      GBP'000 
       ================  =========  ========  ============  ========  ============  ========= 
       Debtors and prepayments                   1,464       1,464       5,107        5,107 
       =====================================  ============  ========  ============  ========= 
       Cash and short term deposits              9,471       9,471       14,577      14,577 
       -------------------------------------  ------------  --------  ------------  --------- 
                                                 10,935      10,935      19,684      19,684 
       ----------------  ---------  --------  ------------  --------  ------------  --------- 
 
       None of the Company's financial assets is past due or impaired. 
       Fair values of financial assets and financial liabilities. The 
        fair value of the loan note has been calculated at GBP28,804,000 
        as at 31 July 2022 (2021 - GBP30,713,000) compared to a value 
        at amortised cost in the financial statements of GBP29,892,000 
        (2021 - GBP29,886,000) (note 13). The fair value of the loan 
        note is determined by aggregating the expected future cash flows 
        for that loan discounted at a rate comprising the borrower's 
        margin plus an average of market rates applicable to loans of 
        a similar period of time and currency. Investments held at fair 
        value through profit or loss are valued at their quoted bid prices 
        which equate to their fair values. The Directors are of the opinion 
        that the other financial assets and liabilities, excluding CULS 
        which are held at amortised cost, are stated at fair value in 
        the Statement of Financial Position and considered that this 
        approximates to the carrying amount. 
 
 
20.     Fair value hierarchy 
        FRS 102 requires an entity to classify fair value measurements 
         using a fair value hierarchy that reflects the significance of 
         the inputs used in making the measurements. 
        Level 1: unadjusted quoted prices in an active market for identical 
         assets or liabilities that the entity can access at the measurement 
         date. 
        Level 2: inputs other than quoted prices included within Level 
         1 that are observable (ie developed using market data) for the 
         asset or liability, either directly or indirectly. 
        Level 3: inputs are unobservable (ie for which market data is 
         unavailable) for the asset or liability. 
        The financial assets measured at fair value in the Statement 
         of Financial Position are grouped into the fair value hierarchy 
         at 31 July 2022 as follows: 
 
        =======================================  ======  ========  ===  ======  ====  ===  ======== 
                                                          Level       Level       Level     Total 
                                                             1          2           3 
        As at 31 July 2022                        Note   GBP'000     GBP'000     GBP'000   GBP'000 
        =======================================  ======  ========  ===========  =========  ======== 
        Financial assets and liabilities 
         at fair value through profit or 
         loss 
        =======================================  ======  ========  ===  ======  ====  ===  ======== 
        Quoted equities                            a)    511,540        -         9,664    521,204 
        =======================================  ======  ========  ===========  =========  ======== 
        Quoted preference shares                   b)       -         3,203         -       3,203 
        =======================================  ======  ========  ===========  =========  ======== 
        Quoted warrants                            b)       -          434          -        434 
        ---------------------------------------  ------  --------  -----------  ---------  -------- 
        Net fair value                                   511,540      3,637       9,664    524,841 
        ---------------------------------------  ------  --------  -----------  ---------  -------- 
 
        =======================================  ======  ========  ===  ======  ====  ===  ======== 
                                                          Level       Level       Level     Total 
                                                             1          2           3 
        As at 31 July 2021                        Note   GBP'000     GBP'000     GBP'000   GBP'000 
        =======================================  ======  ========  ===========  =========  ======== 
        Financial assets and liabilities 
         at fair value through profit or 
         loss 
        =======================================  ======  ========  ===  ======  ====  ===  ======== 
        Quoted equities                            a)    536,934        -           -      536,934 
        =======================================  ======  ========  ===========  =========  ======== 
        Quoted preference shares                   b)       -         3,652         -       3,652 
        =======================================  ======  ========  ===========  =========  ======== 
        Quoted warrants                            b)       -          335          -        335 
        ---------------------------------------  ------  --------  -----------  ---------  -------- 
        Net fair value                                   536,934      3,987         -      540,921 
        ---------------------------------------  ------  --------  -----------  ---------  -------- 
 
        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. 
        b) Quoted preference shares and quoted warrants. The fair value 
         of the Company's investments in quoted preference shares and 
         quoted warrants has been determined by reference to their quoted 
         bid prices at the reporting date. Investments categorised as 
         Level 2 are not considered to trade as actively as Level 1 assets. 
 
        =======================================  ======  ========  ===  ======  ====  ===  ======== 
                                                                         Year ended    Year ended 
                                                                          31 July        31 July 
                                                                            2022           2021 
        Level 3 Financial assets at fair                                  GBP'000        GBP'000 
         value through profit or loss 
        =======================================  ======  ========  ===  ============  ============= 
        Opening fair value                                                   -              - 
        =======================================  ======  ========  ===  ============  ============= 
        Transfers from level 1                                             9,664            - 
        =======================================  ======  ========  ===  ============  ============= 
        Total gains or losses included in losses on                                         - 
         investments in the Statement of Comprehensive 
         Income: 
        =========================================================  ===  ======  ====  ============= 
        - assets disposed of during the                                      -              - 
         year 
        =======================================  ======  ========  ===  ============  ============= 
        - assets held at the end of the                                      -              - 
         year 
        ---------------------------------------  ------  --------  ---  ------------  ------------- 
        Closing balance                                                    9,664            - 
        ---------------------------------------  ------  --------  ---  ------------  ------------- 
 
        During the year, the Company changed the basis for valuing its 
         holding in Cebu Holdings. The investee company has received regulatory 
         approval to merge with another company, Ayala Land, and new shares 
         will be issued in Ayala Land in the near future to satisfy the 
         transaction by a share conversion. The valuation methodology 
         employed is based on the underlying quoted price of Ayala Land 
         and the implied conversion ratio. 
 
 
 
21.    Capital management policies and procedures 
       The Company manages its capital to ensure that it will be able 
        to continue as a going concern while maximising the return to 
        shareholders through the optimisation of the debt (comprising 
        CULS and Loan Note) and equity balance. 
       The Company's capital comprises the following: 
       =================================================  ===========  =========== 
                                                             2022         2021 
                                                            GBP'000      GBP'000 
       =================================================  ===========  =========== 
       Equity 
       =================================================  ===========  =========== 
       Equity share capital                                 10,435       10,435 
       =================================================  ===========  =========== 
       Reserves                                             453,961      477,523 
       =================================================  ===========  =========== 
       Liabilities 
       =================================================  ===========  =========== 
       3.05% Senior Unsecured Loan Note 2035                29,892       29,886 
       =================================================  ===========  =========== 
       2.25% Convertible Unsecured Loan Stock 
        2025                                                35,940       35,708 
       -------------------------------------------------  -----------  ----------- 
                                                            530,228      553,552 
       -------------------------------------------------  -----------  ----------- 
 
       The Board's policy is to utilise gearing when the Manager believes 
        it appropriate to do so, up to a maximum of 25% geared at the 
        time of drawdown. Gearing for this purpose is defined as the 
        excess amount above shareholders' funds of total assets (including 
        net current assets/liabilities) less cash/cash equivalents, expressed 
        as a percentage of the shareholders' funds. If the amount so 
        calculated is negative, this is shown as a 'net cash' position. 
 
       =================================================  ===========  =========== 
                                                             2022         2021 
                                                            GBP'000      GBP'000 
       =================================================  ===========  =========== 
       Investments at fair value through profit 
        or loss                                             524,841      540,921 
       =================================================  ===========  =========== 
       Current assets excluding cash and cash 
        equivalents                                          1,184        1,047 
       =================================================  ===========  =========== 
       Current liabilities                                  (2,864)      (1,425) 
       =================================================  ===========  =========== 
       Deferred tax liability on Indian capital 
        gains                                               (2,684)      (3,631) 
       =================================================  ===========  =========== 
                                                            520,477      536,912 
       =================================================  ===========  =========== 
 
       Net assets                                           464,396      487,958 
       -------------------------------------------------  -----------  ----------- 
 
       Gearing (%)                                           12.1         10.0 
       -------------------------------------------------  -----------  ----------- 
 
       The Board monitors and reviews the broad structure of the Company's 
        capital on an ongoing basis. The review includes: 
       - the planned level of gearing which takes account of the Manager's 
        views on the market; 
       - the level of equity shares in issue; 
       - the extent to which revenue in excess of that which is required 
        to be distributed should be retained. 
       The Company's objectives, policies and processes for managing 
        capital are unchanged from the preceding accounting period. 
       The Company does not have any externally imposed capital requirements. 
 
 
22.   Prior year restatement 
      The Statement of Comprehensive Income, the Statement of Financial 
       Position and the Statement of Changes in Equity for the year 
       ended 31 July 2021 have been restated to reallocate costs of 
       GBP250,000 incurred during that period in relation to the long-term 
       investment strategy review from revenue to capital. This treatment 
       was changed to align to the presentation in accordance with guidance 
       provided by the AIC's SORP as disclosed in the 2021 annual report 
       as these costs were adjudged by the Board to have been incurred, 
       wholly or partly, in connection with the maintenance or enhancement 
       of the value of the investments in the portfolio. 
      Consequently, in the Statement of Comprehensive Income for the 
       year ended 31 July 2021, administrative expenses allocated to 
       revenue have decreased from GBP1,386,000 to GBP1,136,000 and 
       administrative expenses allocated to capital have increased from 
       GBPnil to GBP250,000. In the Statement of Financial Position 
       as at 31 July 2021 the capital reserve has decreased from GBP401,374,000 
       to GBP401,124,000 and the revenue reserve has increased from 
       GBP12,618,000 to GBP12,868,000. In the Statement of Changes in 
       Equity for the year ended 31 July 2021, the return after taxation 
       allocated to the capital reserve has decreased from a gain of 
       GBP144,097,000 to a gain of GBP143,847,000 and the return after 
       taxation allocated to the revenue reserve has increased from 
       GBP2,386,000 to GBP2,636,000. In note 7(b) (i) the revenue return 
       before taxation has increased from GBP2,936,000 to GBP3,186,000 
       and the capital return before taxation has decreased from GBP147,653,000 
       to GBP147,403,000 (ii) the revenue return multiplied by the standard 
       rate of corporation tax of 19% has increased from GBP558,000 
       to GBP605,000 and the capita return multiplied by the standard 
       rate of corporation tax of 19% has decreased from GBP28,054,000 
       to GBP28,007,000 and (iii) the movement in unutilised management 
       expenses allocated to revenue has decreased from GBP916,000 to 
       GBP869,000 and the movement in unutilised management expenses 
       allocated to capital has increased from GBPnil to GBP47,000. 
 

Alternative Performance Measures

 
Alternative Performance Measures ("APMs") 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 FRS 102 and the AIC SORP. The Directors assess the 
 Company's performance against a range of criteria which are viewed 
 as particularly relevant for closed-end investment companies. 
Discount to net asset value per Ordinary share 
The difference between the share price and the net asset value per 
 Ordinary share expressed as a percentage of the net asset value per 
 Ordinary share. 2022 has been presented on a diluted basis as the Convertible 
 Unsecured Loan Stock ("CULS") is "in the money" (2021 - same). 
 
============================================  =============  =============  ============ 
                                                                               As at 
                                                                 As at      31 July 2021 
                                                             31 July 2022   (*Restated) 
============================================  =============  =============  ============ 
NAV per Ordinary share (p)                          a           295.25         309.02 
============================================  =============  =============  ============ 
Share price (p)                                     b           254.00         266.00 
============================================  =============  =============  ============ 
Discount                                         (a-b)/a         14.0%         13.9% 
--------------------------------------------  -------------  -------------  ------------ 
* Rates for 2021 have been restated to reflect the 5:1 sub division 
 as disclosed in note14. 
Dividend cover 
Revenue return per Ordinary share divided by dividends declared for 
 the year per Ordinary share expressed as a ratio. 
 
============================================  =============  =============  ============ 
                                                                             Year ended 
                                                              Year ended    31 July 2021 
                                                             31 July 2022   (*Restated) 
============================================  =============  =============  ============ 
Revenue return per Ordinary share (p)               a            9.34           1.66 
============================================  =============  =============  ============ 
Dividends declared (p)                              b            8.00           3.20 
============================================  =============  =============  ============ 
Dividend cover                                     a/b           1.17           0.52 
--------------------------------------------  -------------  -------------  ------------ 
* Rates for 2021 have been restated to reflect the 5:1 sub division 
 as disclosed in note14. 
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 net amounts due 
 from and to brokers at the year end as well as cash and short term 
 deposits. 
 
============================================  =============  =============  ============ 
                                                              Year ended     Year ended 
                                                             31 July 2022   31 July 2021 
============================================  =============  =============  ============ 
Borrowings (GBP'000)                                a           65,832         65,594 
============================================  =============  =============  ============ 
Cash and short term deposits (GBP'000)              b            9,471         14,577 
============================================  =============  =============  ============ 
Amounts due to brokers (GBP'000)                    c              -           1,997 
============================================  =============  =============  ============ 
Amounts due from brokers (GBP'000)                  d             280          4,060 
============================================  =============  =============  ============ 
Shareholders' funds (GBP'000)                       e           464,396       487,958 
--------------------------------------------  -------------  -------------  ------------ 
Net gearing                                    (a-b+c-d)/e       12.1%         10.0% 
--------------------------------------------  -------------  -------------  ------------ 
 
Ongoing charges 
The ongoing charges ratio has been calculated in accordance with guidance 
 issued by the AIC as the total of investment management fees and administrative 
 expenses and expressed as a percentage of the average published daily 
 net asset values with debt at fair value throughout the year. 
 
============================================  =============  =============  ============ 
                                                                 2022           2021 
============================================  =============  =============  ============ 
Investment management fees (GBP'000)                             3,204         3,570 
============================================  =============  =============  ============ 
Administrative expenses (GBP'000)                                1,561         1,386 
============================================  =============  =============  ============ 
Less: non-recurring charges(A) (GBP'000)                         (428)         (297) 
--------------------------------------------  -------------  -------------  ------------ 
Ongoing charges (GBP'000)                                        4,337         4,659 
--------------------------------------------  -------------  -------------  ------------ 
Average net assets (GBP'000)                                    490,446       422,440 
--------------------------------------------  -------------  -------------  ------------ 
Ongoing charges ratio                                            0.88%         1.10% 
--------------------------------------------  -------------  -------------  ------------ 
(A) Professional fees comprising corporate and legal fees associated 
 with proposals approved by shareholders on 27 January 2022. 
 
The ongoing charges ratio provided in the Company's Key Information 
 Document is calculated in line with the PRIIPs regulations, which includes 
 finance costs and transaction charges. 
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. NAV 
 and share price total returns are monitored against open-ended and 
 closed-ended competitors, and the Reference Index, respectively. 
 
============================================  =============  =============  ============ 
                                                                               Share 
Year ended 31 July 2022                                           NAV          Price 
============================================  =============  =============  ============ 
Opening at 1 August 2021                            a           309.02p       266.00p 
============================================  =============  =============  ============ 
Closing at 31 July 2022                             b           295.25p       254.00p 
============================================  =============  =============  ============ 
Price movements                                 c=(b/a)-1        -4.5%         -4.5% 
============================================  =============  =============  ============ 
Dividend reinvestment(A)                            d            2.5%           2.8% 
--------------------------------------------  -------------  -------------  ------------ 
Total return                                       c+d           -2.0%         -1.7% 
--------------------------------------------  -------------  -------------  ------------ 
 
============================================  =============  =============  ============ 
                                                                               Share 
Year ended 31 July 2021 (*Restated)                               NAV          Price 
============================================  =============  =============  ============ 
Opening at 1 August 2020                            a           221.29p       196.00p 
============================================  =============  =============  ============ 
Closing at 31 July 2021                             b           309.02p       266.00p 
============================================  =============  =============  ============ 
Price movements                                 c=(b/a)-1        39.6%         35.7% 
============================================  =============  =============  ============ 
Dividend reinvestment(A)                            d            2.3%           2.5% 
--------------------------------------------  -------------  -------------  ------------ 
Total return                                       c+d          +41.9%         +38.2% 
--------------------------------------------  -------------  -------------  ------------ 
* Rates for 2021 have been restated to reflect the 5:1 sub division 
 as disclosed in note14. 
(A) NAV total return involves investing the net dividend in the NAV 
 of the Company with debt at fair 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. 
 

The Annual General Meeting will be held at 12:30 p.m. on 30 November 2022 at Bow Bells House, 1 Bread Street, London EC4M 9HH.

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.

The Annual Financial Report Announcement is not the Company's statutory accounts. The above results for the year ended 31 July 2022 are an abridged version of the Company's full financial statements, which have been approved and audited with an unqualified report. The 2021 and 2022 statutory accounts received unqualified reports from the Company's auditors and did not include any reference to matters to which the auditors drew attention by way of emphasis without qualifying the reports, and did not contain a statement under s.498(2) or 498(3) of the Companies Act 2006. The financial information for 2021 is derived from the statutory accounts for 2020 which have been delivered to the Registrar of Companies. The 2022 financial statements will be filed with the Registrar of Companies in due course.

The audited Annual Report and financial statements will be posted to shareholders in November. Copies may be obtained during normal business hours from the Company's Registered Office, Bow Bells House, 1 Bread Street, London EC4M 9HH or from the Company's website, asia-focus.co.uk*

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

By Order of the Board

Aberdeen Asset Management PLC

Secretary

14 October 2022

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