LEGAL
ENTITY IDENTIFIER: 549300YM9USHRKIET173
INVESCO
ASIA TRUST PLC
Half-Yearly
Financial Report for the Six Months to 31
October 2023
The
following text is extracted from the Half-Yearly Financial Report
for the Six Months to 31 October
2023. All page numbers below refer to the Half-Yearly
Financial Report which will be made available on the Company's
website.
Investment Objective
The Company’s objective is to provide long-term capital growth and
income by investing in a diversified portfolio of
Asian and
Australasian companies. The Company aims to achieve growth in its
net asset value (NAV) total return in excess
of the Benchmark Index, the MSCI AC Asia ex Japan Index
(total return,
net of withholding tax, in sterling terms).
Financial Information and Performance
Statistics
The benchmark index of the Company is the MSCI AC Asia
ex Japan
Index (total return, net of withholding tax, in sterling
terms)
|
Six
Months to
|
Year
ended
|
|
31
October
|
30
April
|
Total
Return Statistics(1)
(dividends
reinvested)
|
2023
|
2023
|
Net asset
value (NAV) total return(2)
|
–5.9%
|
1.3%
|
Share price
total return(2)
|
–7.8%
|
1.2%
|
Benchmark
index total return(3)
|
–2.9%
|
–6.0%
|
Capital Statistics
|
At
|
At
|
|
|
31
October
|
30
April
|
|
|
2023
|
2023
|
change
%
|
Net assets
(£’000)
|
230,572
|
245,004
|
–5.9
|
NAV per
share
|
344.89p
|
366.48p
|
–5.9
|
Share
price(1)
|
296.00p
|
321.00p
|
–7.8
|
Benchmark
index (capital)
|
895.70
|
938.42
|
–4.6
|
Discount(2)
per
ordinary share
|
(14.2)%
|
(12.4)%
|
|
Average
discount over the six months/year(1)(2)
|
(10.8)%
|
(11.6)%
|
|
Gearing(2):
|
|
|
|
–
gross
|
1.3%
|
5.9%
|
|
–
net
|
0.7%
|
5.3%
|
|
(1) Source:
LSEG Data & Analytics.
(2) Alternative
Performance Measures (APM), see pages 19 to 21 for the explanation
and reconciliations of APMs. Further details are provided in the
Glossary of Terms and Alternative Performance Measures in the
Company’s 2023 Annual Financial Report.
(3) Index
returns are shown on a total return basis, with dividends
reinvested net of withholding taxes.
Chairman’s
Statement
Highlights:
• NAV
total return of –5.9% and share price total return of –7.8% both
underperformed the benchmark index total return of
–2.9%.
• Not
only are the valuations of the underlying investments at unusually
attractive levels but you have the double discount of the share
price relative to the net asset value.
• On
top of this comes a 5% annual dividend yield based on the share
price as at 31 October 2023,
approximately half of which is effectively a return of capital at
net asset value.
After a
strong run of outperformance the Company’s NAV total return over
the six months to 31 October 2023 of
–5.9% was below our benchmark (MSCI AC Asia ex Japan Index) total
return of –2.9%. The share price total return was –7.8% with the
discount widening from 12.4% to 14.2% over the period. Despite the
short term underperformance, the NAV and share price performance
remains superior to that of the benchmark index over one year,
three years, five years
and ten years as the table below demonstrates.
Cumulative
Total Return (dividends reinvested) to 31
October 2023(1)
|
One
|
Three
|
Five
|
Ten
|
|
Year
|
Years
|
Years
|
Years
|
Net asset
value (NAV)
|
9.7%
|
12.1%
|
40.5%
|
136.4%
|
Share
price
|
10.4%
|
11.0%
|
42.4%
|
136.5%
|
Benchmark
index(2)
|
7.7%
|
–9.9%
|
16.8%
|
64.5%
|
(1) Source:
LSEG Data & Analytics.
(2) The
benchmark index of the Company was changed on 1 May 2015 to the MSCI AC Asia ex Japan Index
from the MSCI AC Asia Pacific ex Japan Index (both indices total
return, net of withholding tax, in sterling terms).
A
half-yearly dividend of 7.20p was paid on 23 November
2023 in accordance with our policy of paying two dividends
over a year amounting to approximately 4.0% of NAV. This puts the
annual dividend yield on the share price at 5.0%, based on the
share price of 296.00p at 31 October
2023.
In
August 2020, the Board undertook to
effect a tender offer for up to 25% of the Company’s issued share
capital at a discount of 2.0% to the prevailing NAV per share
(after deduction of tender costs) in the event that the Company’s
NAV cum-income total return performance over the five year period
to 30 April 2025 fails to exceed the
Company’s comparator index, the MSCI AC Asia ex Japan Index (net of
withholding tax, total return in sterling terms) by 0.5% per annum
over the five years on a cumulative basis. Shareholders already
have the opportunity to vote on the continuation of the Company
every three years, but the Board believes that also providing
shareholders with the option to tender a proportion of their shares
for a cash price close to NAV if the Company underperforms,
constitutes a pragmatic and attractive initiative, particularly if
the shares were to be trading at a material discount at the
time.
As at the
date of this report, we now have 15 months to run of the five-year
period over which the performance of the Company will be assessed.
As at 31 October 2023, the Company’s
NAV was up by 39.0% over the 3.5 years while the index was up by
7.1%. On an annualised basis, NAV was up by 9.9% p.a. while the
index was up by 2.0% p.a.
Shareholders
will know that we believe that the discount is determined by a
combination of demand for Asian equity investment vehicles, the
Investment Case for Invesco Asia Trust and the Corporate
Proposition that we offer. In order to stimulate more demand for
the Company’s shares, we aim to provide a strong investment case
and a strong corporate proposition at the same time.
The
Investment Case rests on accessing the attractive opportunities of
Asian equity markets through the institutional expertise of
Ian Hargreaves and Fiona Yang’s team
at Invesco. The Co-Portfolio Managers’ investment process can be
summarised as ‘valuation not value’ and has been very successful in
attracting institutional investors such as pension funds and
sovereign wealth investors. In times like these of
great change,
we would argue that this forward-looking active approach (as
opposed to a backward-looking index or passive style) is exactly
what is needed. Invesco Asia Trust is the only way for individual
investors to access Ian and Fiona’s expertise. We are delighted to
announce that from 1 May 2024, our
two Co-Portfolio Managers will swap roles with Fiona Yang taking the lead from Ian Hargreaves but will both continue to work
very closely together on the Company’s portfolio. The Directors
have been impressed by Fiona’s contribution over the past five
years and are pleased to support her promotion.
The
Company’s Corporate Proposition was first introduced in 2018. Since
then, the Board has continued to review and adopt measures intended
to create additional demand for the Company’s shares, both from
existing and new shareholders, and to reduce the discount. We have
been careful to ensure that the measures chosen are in the best
interests of all shareholders and combined will make the Corporate
Proposition as compelling as the investment case.
The
multiple elements to our Corporate Proposition are detailed in the
2023 Annual Financial Report’s Chairman’s Statement and include: a
three-yearly continuation vote (the next one being due in
September 2025); an enhanced dividend
policy; a performance conditional tender; a strong integrated
Environmental, Social and Governance (‘ESG’) approach;
engaging more individual shareholders; the ability for shareholders
to meet both the Co-Portfolio Managers and the Directors; close
management of ongoing charges and fees; the active use of gearing;
the ‘skin in the game’ of Directors’ and Managers’ shareholdings;
and the authority to buy back shares.
The average
discount over the 6 months to 31 October
2023 has been 10.8%, which is above our 10% tolerance.
Discounts across the investment trust industry have risen markedly
in the last two years. Our relative discount has improved over the
period but the true test will be what happens to our absolute
discount when either the investment trust industry discount
recovers or Asian markets enter a bull phase. Our buyback policy
will be fine-tuned accordingly and, while we do not reveal details,
we can say that it is more likely to be active if performance
disappoints.
Ratings
Your
Company has recently been awarded several accolades
including:
• The
Citywire Winners award at the publication’s Investment Trust Awards
2023, for best risk-adjusted performance for the Asia Pacific
Equities Sector.
• Awarded
by Kepler Partners the “Kepler Income & Growth Rating
2024”.
• Square
Mile Investment Consulting & Research have awarded your Company
an A-rating.
Please
refer to the respective Company website for further information and
methodology.
Intention
to Conduct Audit Tender
While the
Company is required to carry out a tender at least every ten years
and no later than 30 April 2026, in
view of increases in audit fees, the Company is commencing a tender
process for the role of external auditor for the financial year
ending 30 April
2025.
The audit
tender process will be overseen by the Audit Committee and is
expected to conclude in the coming months.
This is no
reflection on the quality of the existing auditor’s work or any
issue other than cost.
Update
From
31 October 2023 to 23 January 2024, the NAV total return has been
-4.2%, underperforming the index total return of -0.2%. The share
price total return has been 0.8%, with the discount narrowing to
10.0%.
Outlook
Headwinds
remain: China’s recovery is being hampered most notably by property
oversupply and bad debts. Persistent inflation in the United States has led to American interest
rates being higher for longer, which puts pressure on Asian
currencies. Monetary tightening in the US and Europe will depress economic activity at some
point soon, even if recession is avoided. This will
further negatively reduce demand for Asian exports, which have
already been affected by the protectionist parts of President
Biden’s Inflation Reduction Act. The 2024 US Presidential
election will provide lots of noise and perhaps further reason to
avoid risk assets. At best, you could only argue that the headwinds
are not becoming stronger.
The
surprising thing is that favourable tailwinds have not yet
appeared. There is the possibility of a rapprochement between the
US and China: China’s economic
needs plus the US stance against Russia would suggest a more favourable
relationship would help the US and China. Dollar interest rates and US bond
yields are close to peaking, even if they do not fall as much as
some are expecting. Asian corporate governance is much stronger
these days, so many companies can prosper even through harsh times.
Asian economies are more resilient than in previous cycles with
larger domestic consumption meaning they are less dependent on
exports.
If we are
becalmed for a time, the dilemma becomes should you invest now or
buy after things improve? If invested in Invesco Asia Trust, we
would argue that you are paid to wait. Not only are the valuations
of the underlying investments at unusually attractive levels but
you have the double discount of the share price relative to the net
asset value. On top of this comes a 5% annual dividend yield based
on the share price as at 31 October
2023, approximately half of which is effectively a return of
capital at net asset value.
Neil Rogan
Chairman
24 January 2024
Portfolio
Managers’ Report
Q How
has the Company performed in the period under
review?
A The
Company’s net asset value decreased by –5.9% (total return, in
sterling terms) over the six months to
31 October 2023, which compares to
the benchmark MSCI AC Asia ex Japan index total return of –2.9%.
The
reporting period was a tough one for the portfolio in both absolute
and relative terms, as markets had to contend with pressure from
rising US interest rates and disappointment over the strength of
China’s post-Covid recovery. China’s economic woes, both cyclical
and structural, have been well publicised, but the macro situation
is not as bad as presented by the media in the UK. However,
China has remained out of favour
and any signs of stabilisation in the economy have been
overshadowed by general risk-aversion. Over the period, the yield
on US 10-year government bonds climbed by 150 basis points to
around 5.0%, with the dominant narrative being that rates would
need to stay “higher for longer”, although this is no longer the
case.
Against
this backdrop, the portfolio’s exposure to Hong Kong/China was a drag on performance,
with the biggest detractors coming from these markets. The
portfolio’s underweight position in India has also detracted, as this was the
region’s best performing
market, although a positive impact from stock selection partially
offset this
in terms of relative performance. Stock selection elsewhere was
generally positive, particularly in Korea and Taiwanese tech names,
with strong contributions from holdings in Thailand and Singapore as well.
Q What
have been the biggest detractors?
A Chinese
consumer confidence has been
very weak, so it is no surprise
that stocks with exposure to this area
of the market underperformed, as reopening recovery momentum
faded. China
MeiDong Auto was the
biggest single detractor, with weak demand and increased
competition from the electric
vehicle (‘EV’) segment being headwinds for the luxury auto
dealership, although business operations appear to be faring better
than feared. Beijing
Capital International Airport has
struggled as international routes have been slow to re-start,
especially from the US, while restaurant operator
Jiumaojiu
has not
been immune from the slower-than-expected recovery.
ENN
Energy underperformed
after first half earnings showed a sharp decline in volume to
gas-fired power plants and weaker demand from real estate related
sectors (building materials), although the company’s growth drivers
remain intact with underappreciated recovery potential.
In
Korea, LG
Household & Health Care detracted
as the cosmetics manufacturer saw declining revenues from its
beauty business given the delayed turnaround in China.
Meanwhile, LG
Chemical was
impacted by weaker EV sales in the EU and weakening chemical
spreads. We believe that structural growth from EVs will outweigh
the negative impact of lower raw material prices on earnings, with
the shares attractively valued.
Q And
contributors?
A The
two biggest contributors were both from India. Aurobindo
Pharma benefitted
from a pickup in US sales while reports that Revlimid (cancer drug)
had received approval in India
were also supportive for the generics manufacturer.
Meanwhile, Shriram
Transport Finance made strong
gains after the expected sale of large blocks of stock removed a
significant overhang for the share price, with the company also
reporting resilient margins, low credit costs and strong growth in
key cross-sell products, using its extensive branch network to good
effect.
Elsewhere,
Samsung
Fire & Marine continued
to outperform thanks to a positive earnings outlook driven by
continued underwriting margin improvement. Tech stocks with
exposure to the AI server supply-chain rallied after Nvidia’s
raised guidance pointed to an acceleration in demand sooner and
greater than people had expected, with Chroma
ATE in
Taiwan and Korean memory chip
stocks adding significant value. Chinese chip designer
Will
Semiconductor outperformed,
thanks to strong
momentum in sales of chips for smartphones and autos. Finally,
stock selection in the Association of Southeast Asian Nations
(‘ASEAN’) was a positive, with contributions from the recently
introduced Sea,
Kasikornbank and
Vietnamese steel manufacturer
Hoa Phat.
Q Where
have you been finding new opportunities?
A Over
the last few years, we have benefitted from avoiding fallen angels
and interest rate sensitives. Rising interest rates and the
reversal of Covid tailwinds have seen the market’s focus shift from
revenue growth to profitability. Previously well-loved stocks have
endured peak-to-trough share price declines of 60-90%, which caught
our attention as we seek out new contrarian ideas.
Recent
introductions included: Sea, the largest ASEAN ecommerce company
that also owns the gaming studio behind Free Fire (developer of one
of the most downloaded mobile games in the world);
Grab,
the largest
ride hailing and food delivery company in ASEAN; and
Full
Truck Alliance, one of
the largest digital freight platforms in China. These types of business are not
normally associated with investors that take a valuation-driven
approach. However, in these instances we have found evidence of
bearish consensus narratives, compelling long-term fundamentals,
strong balance sheets and underappreciated hidden value, all key
attributes of our valuation-driven process.
We also
introduced Link
REIT, a
Hong Kong real estate investment
trust with exposure to retail (focus on consumer staples) and
offices. Link REIT is another new idea that feels very contrarian
in the current environment with valuations at record low levels,
but the balance sheet is in good shape and the dividend yield is
6%, while a pick-up in the Hong
Kong economy and falling interest rates offer potential
tailwinds to earnings.
Q How
else has portfolio positioning changed, are you more underweight in
India?
A We
have increased the portfolio’s underweight position in India by around 2 percentage points, and the
portfolio now has around 7% less than the benchmark MSCI Asia ex
Japan index, although we retain
around 11% in Indian companies. Over the period, we have
sold Mahindra
& Mahindra and started
to take profits from outperformers Larsen
& Toubro and
Aurobindo Pharma. The outlook for India remains positive from a top-down
perspective, but that is reflected in the market’s valuation which
remains elevated relative to its history. More than one third of
the companies in the MSCI India index currently trade on a
valuation multiple higher than 40 times expected
earnings for the fiscal year ending March
2025.
One
attractively valued opportunity that we have identified is
Power
Grid, the
central transmission utility of India. The company has a solid track record,
enjoying a positive earnings trend over the last few years, with a
robust balance sheet, long-term growth potential and an attractive
dividend yield.
Meanwhile,
we have continued to take profits from outperformers, where share
prices are closer to our estimate of fair value. For example, we
sold Newcrest
Mining, after US
gold giant Newmont’s takeover appeared set for completion;
and POSCO,
as the market’s valuation of the Korean steel manufacturer’s
lithium operations appeared increasingly stretched relative to
peers.
Q What
is your outlook for China?
A China’s
reopening has disappointed, with the strength of the recovery being
overestimated by the market as well as by ourselves. After a
short-lived, organic recovery, consumer caution quickly returned,
likely linked to property market concerns. However, a crescendo of
negativity has built-up around China’s longer-term structural
challenges and near-term cyclical issues that now appear to be
fully priced in.
The
property market poses important structural concerns, but a positive
outlook is not required for investors to make money. Macroeconomic
data in China is starting to
improve, suggesting we may have reached the bottom of the cycle.
The direction of policy is also clear, with greater urgency in
coordinated monetary and fiscal measures, the authorities’
priorities being to stabilise the property market, reduce financial
risk particularly at local government financing vehicles (‘LGFV’)
and reinvigorate capital markets. If the property market does not
deteriorate further it is reasonable to anticipate a rebound in
consumer confidence.
The
strength of any market rebound is likely to be contingent on
further signs of improvement in the macro data, reflecting a degree
of capitulation by weary global investors. Herd mentality has
shifted market sentiment out to extreme levels. Our experience of
investing in China suggests that
these periods often present the greatest opportunity. In recent
quarters, we have seen decent earnings growth among certain
consumer-facing and internet companies. Valuations are deeply
discounted, and Chinese equities could prove to be quite sensitive
to signs that corporate fundamentals are improving in a steady,
sustainable fashion. We do not look for catalysts, preferring to
focus on the fundamentals of the companies we are invested in,
trying to establish what is a reasonable price to pay for the
growth that we expect. We believe that the upside risk is now
greater than the downside risk.
Q Final
thoughts?
A Since
peaking in early 2021, Asian equity markets have struggled amidst a
liquidity tightening cycle and a crescendo of negativity
surrounding China. Valuations for
regional indices trade below long-term historic averages, at around
1.6x price/book, in terms of price/book, and at a significant
discount to developed markets (as can be seen in table below),
particularly the US. We believe there is scope for this to
narrow.
|
|
Forward
P/E,
x
|
Forward
Dividend
Yield,
%
|
Free
Cash
Flow
Yield, %
|
3yr
EPS
Growth,
%
|
Net
Debt
to
Equity, %
|
|
Current
P/B,
x
|
|
Invesco
Asia
Trust
plc
|
1.4
|
10.5
|
2.8
|
4.7
|
17.3
|
–8%
|
MSCI Asia
ex Japan
|
1.6
|
11.5
|
2.6
|
5.2
|
10.4
|
2%
|
MSCI
World
|
3.0
|
15.4
|
2.1
|
4.8
|
17.9
|
44%
|
S&P
500
|
4.1
|
17.2
|
1.6
|
4.0
|
18.9
|
47%
|
Asian
equities are well placed to benefit from an improvement in
liquidity conditions, as we approach the peak in rate expectations,
with US dollar strength likely to cease being a headwind.
Furthermore, compared to previous tightening cycles, Asian
economies enjoy relatively solid fundamentals, suggesting greater
monetary policy flexibility should growth headwinds start to
build.
Finally,
consensus earnings growth expectations for 2024 are around 20% and
we believe that Asian companies may see less earnings vulnerability
from a global slowdown relative to expectations and to what is
being implied in valuations. In our view, the continued divergence
in performance and valuations between different countries and
sectors within the emerging world is providing interesting
investment opportunities.
Ian Hargreaves & Fiona
Yang
Portfolio
Managers
24 January 2024
Principal
Risks and Uncertainties
The Board
has carried out a robust assessment of the principal and emerging
risks facing the Company. These include those that would threaten
its business model, future performance, solvency and liquidity. In
carrying out this assessment the Board together with the Manager
have considered emerging risks such as geopolitical risks, evolving
cyber threats and climate related risks. These risks also form part
of the principal risks identified and the mitigating actions are
detailed below. In the view of the Board, these principal risks and
uncertainties are as much applicable to the remaining six months of
the financial year as they were to the six months under
review.
Category
and Principal Risk Description
|
Mitigating
Procedures and Controls
|
Risk
trend
during
the
period
|
Strategic
Risk
|
|
|
Market
Risk
The
Company’s investments are mainly traded on Asian and Australasian
stock markets as well as the UK. The principal risk for investors
in the Company is a significant fall and/or a prolonged period of
decline in these markets. This could be triggered by unfavourable
developments within the region or events outside it.
|
The Company
has a diversified investment portfolio by country, sector and
stock. Due to its investment trust structure, no forced sales need
to take place and investments can be held over a longer term
horizon. However, there are few ways to mitigate absolute market
risk because it is engendered by factors which are outside the
control of the Board and the Manager. These factors include the
general health of the world economy, interest rates, inflation,
government policies, industry conditions, and changing investor
demand and sentiment. Such factors may give rise to high levels of
volatility in the prices of investments held by the
Company.
|
Increased
|
Geopolitical
Risk
Political
risk has always been a feature of investing in stock markets and it
is particularly so in Asia. Wider political developments in
geographies beyond Asia, such as the US, Ukraine, Israel and
Palestine can create risks to the value of the Company’s assets.
Asia encompasses a variety of political systems. There are many
examples of diplomatic skirmishes and military tensions and
sometimes these resort to military engagement. Moreover, the
involvement in Asian politics of the US and European countries can
reduce or raise tensions.
|
The Manager
evaluates and assesses political risk as part of the stock
selection and asset allocation policy which is monitored at every
Board meeting. This includes political, military and diplomatic
events and changes to legislation. Balancing political risk and
reward is an essential part of the active management
process.
|
Increased
|
Investment
Objectives and Strategy
The
Company’s investment objectives and strategy are no longer meeting
investors’ demands.
|
The Board
receives regular reports reviewing the Company’s investment
performance against its stated objectives and peer group, and
reports from discussions with its brokers and major shareholders.
The Board also has a separate annual strategy meeting.
|
Unchanged
|
Widening
Discount
A lack of
liquidity and/or lack of investor interest in the Company’s shares
leads to a depressed share price and a widening discount to its
NAV.
A
persistently high discount may lead to buybacks of the Company’s
shares and result in the shrinkage of the Company.
|
The Board
receives regular reports from both the Manager and the Company’s
broker on the Company’s share price performance, level of share
price discount to NAV and recent trading activity in the Company’s
shares. The Board has introduced initiatives to help address the
Company’s share rating including a performance conditional tender
in 2025 and the enhanced dividend policy. It may seek to reduce the
volatility and absolute level of the share price discount to NAV
for shareholders through buying back shares within the stated
limit. The Board also receives regular reports on investor relation
meetings with shareholders and prospective investors and works to
ensure that the Company’s investment proposition is actively
marketed through relevant messaging across many distribution
channels.
|
Increased
|
Investment
Management Risk
|
|
|
Performance
That the
Portfolio Managers consistently underperform the benchmark and/or
peer group over 3-5 years.
|
The Board
regularly compares the Company’s NAV performance over both the
short and long term to that of the benchmark and peer group as well
as reviewing the portfolio’s performance against benchmark
(attribution) and risk adjusted performance (volatility, beta,
tracking error, Sharpe ratio) of the Company and its
peers.
|
Unchanged
|
ESG
including climate risk
Risks
associated with climate change and ESG considerations could affect
the valuation of the Company’s holdings.
|
ESG
considerations are integrated as part of the investment
decision-making in constructing the portfolio. Such investment
decisions include the transactions undertaken in the period, the
review of active portfolio positions and consideration of the
gearing position and, if applicable, hedging. The process around
ESG is described in the ESG Monitoring and Engagement section on
pages 6
and 7.
|
Unchanged
|
Key
Person Dependency
Either or
both of the Portfolio Managers (Ian Hargreaves and
Fiona Yang)
ceases to be Portfolio Manager or are incapacitated or otherwise
unavailable.
|
The
adoption of a Co-Portfolio Manager model has mitigated the risk of
key person dependency. The Co-Portfolio Managers work within and
are supported by the wider Invesco Asian and Emerging Markets
Equities team, with Ian Hargreaves and William Lam as Co-Heads of
this team.
|
Unchanged
|
Currency
Fluctuation Risk
Exposure to
currency fluctuation risk negatively impacts the Company’s NAV. The
movement of exchange rates may have an unfavourable or favourable
impact on returns as nearly all of the Company’s assets are
non-sterling denominated.
|
With the
exception of borrowings in foreign currency, the Company does not
normally hedge its currency positions but may do so should the
Portfolio Managers or the Board feel this to be appropriate.
Contracts are limited to currencies and amounts commensurate with
the asset exposure. The foreign currency exposure of the Company is
reviewed at Board meetings.
|
Unchanged
|
Third-Party
Service Providers Risk
|
|
|
Unsatisfactory
Performance of Third-Party Service Providers
Failure by
any Third Party Service Providers (‘TPP’) to carry out its
obligations to the Company in accordance with the terms of its
appointment could have a materially detrimental impact on the
operations of the Company and could affect the ability of the
Company to successfully pursue its investment policy and expose the
Company to reputational risk. Disruption to the accounting, payment
systems or custody records could prevent the accurate reporting and
monitoring of the Company’s financial position.
|
The Audit
Committee closely monitors the services provided by the Manager and
other TPPs. The details of how effective internal control is
assured are set out in the internal control and risk management
section on page 41 of the 2023 Annual Financial Report.
|
Unchanged
|
Information
Technology Resilience and Security
The
Company’s operational structure means that all cyber risk
(information and physical security) arises at its TPP. This cyber
risk includes fraud, sabotage or crime perpetrated against the
Company or any of its TPPs.
|
The Audit
Committee receives regular updates on the Manager’s information and
cyber security. This includes updates on the cyber security
framework, staff resource and training, and the testing of its
security systems designed to protect against a cyber security
attack.
As well as
conducting a regular review of TPPs audited service organisation
control reports, the Audit Committee monitors TPPs’ business
continuity plans and testing including the TPPs’ and Manager’s
regular ‘live’ testing of workplace recovery arrangements should a
cyber event occur.
|
Unchanged
|
Operational
Resilience
The
Company’s operational capability relies upon the ability of its
TPPs to continue working throughout the disruption caused by a
major event such as the Covid-19 pandemic.
|
The
Manager’s business continuity plans are reviewed on an ongoing
basis and the Directors are satisfied that the Manager has in place
robust plans and infrastructure to minimise the impact on its
operations so that the Company can continue to trade, meet
regulatory obligations, report and meet shareholder
requirements.
The Manager
has arrangements and prioritises between work deemed necessary to
be carried out on business premises and work from home arrangements
should it be necessary, for instance due to government
restrictions. Any meetings are held in person, virtually or via
conference calls. Similar working arrangements are in place for the
Company’s TPPs. The Audit Committee receives regular update reports
from the Manager and TPPs on business continuity
processes.
|
Unchanged
|
Twenty-five
Largest Holdings
AT
31 OCTOBER 2023
Ordinary
shares unless stated otherwise
† The
sector group is based on MSCI and Standard & Poor’s Global
Industry Classification Standard.
|
|
|
At
Market
|
|
|
|
|
Value
|
%
of
|
Company
|
Sector†
|
Country
|
£’000
|
Portfolio
|
Taiwan
Semiconductor Manufacturing
|
Semiconductors
and Semiconductor Equipment
|
Taiwan
|
22,861
|
9.8
|
Samsung
Electronics – ordinary
share
|
Technology
Hardware and Equipment
|
South
Korea
|
12,238}
5,252}
|
7.5
|
–
preference shares
|
|
|
TencentR
|
Media and
Entertainment
|
China
|
13,591
|
5.8
|
AlibabaR
|
Consumer
Discretionary Distribution and Retail
|
China
|
11,738
|
5.0
|
HDFC
Bank
|
Banks
|
India
|
10,463
|
4.5
|
AIA
|
Insurance
|
Hong
Kong
|
7,786
|
3.3
|
KasikornbankF
|
Banks
|
Thailand
|
7,494
|
3.2
|
Shriram
Transport Finance
|
Financial
Services
|
India
|
6,138
|
2.6
|
Samsung
Fire & Marine
|
Insurance
|
South
Korea
|
5,472
|
2.3
|
SK
Hynix
|
Semiconductors
and Semiconductor Equipment
|
South
Korea
|
4,872
|
2.1
|
YiliA
|
Food,
Beverage and Tobacco
|
China
|
4,638
|
2.0
|
Gree
Electrical AppliancesA
|
Consumer
Durables and Apparel
|
China
|
4,584
|
2.0
|
Will
SemiconductorA
|
Semiconductors
and Semiconductor Equipment
|
China
|
4,460
|
1.9
|
LG
Chemical
|
Materials
|
South
Korea
|
4,351
|
1.9
|
Ping An
InsuranceH
|
Insurance
|
China
|
4,290
|
1.8
|
Largan
Precision
|
Technology
Hardware and Equipment
|
Taiwan
|
4,155
|
1.8
|
JD.comR
|
Consumer
Discretionary Distribution and Retail
|
China
|
3,970
|
1.7
|
Link
REIT
|
Equity Real
Estate Investment Trusts (REITs)
|
Hong
Kong
|
3,793
|
1.6
|
Yageo
|
Technology
Hardware and Equipment
|
Taiwan
|
3,762
|
1.6
|
CK
Asset
|
Real Estate
Management and Development
|
Hong
Kong
|
3,757
|
1.6
|
Astra
International
|
Capital
Goods
|
Indonesia
|
3,738
|
1.6
|
Hansoh
PharmaceuticalR
|
Pharmaceuticals,
Biotechnology and Life Sciences
|
China
|
3,460
|
1.5
|
Anglo
American
|
Materials
|
United
Kingdom
|
3,318
|
1.4
|
MINTH
|
Automobiles
and Components
|
Hong
Kong
|
3,292
|
1.4
|
Vinamilk
|
Food,
Beverage and Tobacco
|
Vietnam
|
3,237
|
1.4
|
|
|
|
166,710
|
71.3
|
Other
Investments (34)
|
|
|
67,032
|
28.7
|
Total
Holdings (59)
|
|
|
233,742
|
100.0
|
H: H-Shares –
shares issued by companies incorporated in the People’s
Republic of China (‘PRC’) and
listed on the Hong Kong Stock
Exchange.
R: Red
Chip Holdings – holdings in companies incorporated outside the PRC,
listed on the Hong Kong Stock Exchange, and controlled by PRC
entities by way of direct or indirect shareholding and/or
representation on the board.
A: A-shares
– shares that denominated in Renminbi and traded on the
Shanghai and Shenzhen stock exchanges.
F: F-Shares
– shares issued by companies incorporated in Thailand that are available to foreign
investors only. Thai laws have imposed restrictions on foreign
ownership of Thai companies so there is a pre-determined limit of
these shares. Voting rights are retained with these
shares.
Governance
Going
Concern
The
financial statements have been prepared on a going concern
basis.
The
Directors have a reasonable expectation that the Company has
adequate resources to continue in operational existence for the
foreseeable future, being taken as at least 12 months after signing
the financial statements for the same reasons as set out in the
Viability Statement in the Company’s 2023 Annual Financial Report.
The Directors took into account the diversified portfolio of
readily realisable securities which can be used to meet the net
current liability position of the Company as at the balance sheet
date; and revenue forecasts for the forthcoming year.
Related
Party Transactions
Under
United Kingdom Generally Accepted Accounting Practice (UK
Accounting Standards and applicable law), the Company has
identified the Directors and their dependents as related parties.
No other related parties have been identified. No transactions with
related parties have taken place which have materially affected the
financial position or the performance of the Company.
Directors’
Responsibility Statement
In
respect of the preparation of the half-yearly financial
report
The
Directors are responsible for preparing the half-yearly financial
report using accounting policies consistent with applicable law and
UK Accounting
Standards.
The
Directors confirm that to the best of their knowledge:
— the
condensed set of financial statements contained within the
half-yearly financial report have been prepared in accordance with
the FRC’s FRS 104 Interim Financial Reporting;
— the
interim management report includes a fair review of the information
required by 4.2.7R and 4.2.8R of the FCA’s Disclosure Guidance and
Transparency Rules; and
— the
interim management report includes a fair review of the information
required on related party transactions.
The
half-yearly financial report has not been audited nor reviewed by
the Company’s auditor.
Signed on
behalf of the Board of Directors.
Neil Rogan
Chairman
24 January 2024
Condensed
Income Statement
|
For
the six months ended
|
For
the six months ended
|
|
|
31
October 2023
|
31
October 2022
|
|
|
|
Revenue
|
Capital
|
Total
|
Revenue
|
Capital
|
Total
|
|
|
|
return
|
return
|
return
|
return
|
return
|
return
|
|
|
|
£’000
|
£’000
|
£’000
|
£’000
|
£’000
|
£’000
|
|
Losses on
investments held at fair value
|
–
|
(16,696)
|
(16,696)
|
—
|
(36,228)
|
(36,228)
|
Losses on
foreign exchange
|
–
|
(141)
|
(141)
|
—
|
(316)
|
(316)
|
Income –
note 2
|
4,617
|
42
|
4,659
|
5,285
|
51
|
5,336
|
Investment
management fee – note 3
|
(228)
|
(685)
|
(913)
|
(222)
|
(666)
|
(888)
|
Other
expenses
|
(346)
|
(3)
|
(349)
|
(332)
|
(2)
|
(334)
|
Net return
before finance costs and
|
|
|
|
|
|
|
taxation
|
4,043
|
(17,483)
|
(13,440)
|
4,731
|
(37,161)
|
(32,430)
|
Finance
costs – note 3
|
(66)
|
(198)
|
(264)
|
(24)
|
(72)
|
(96)
|
Return on
ordinary activities
|
|
|
|
|
|
|
before
taxation
|
3,977
|
(17,681)
|
(13,704)
|
4,707
|
(37,233)
|
(32,526)
|
Tax on
ordinary activities – note 4
|
(420)
|
(308)
|
(728)
|
(450)
|
(179)
|
(629)
|
Return on
ordinary activities after
|
|
|
|
|
|
|
taxation
for the financial period
|
3,557
|
(17,989)
|
(14,432)
|
4,257
|
(37,412)
|
(33,155)
|
Return per
ordinary share
|
|
|
|
|
|
|
Basic
|
5.32p
|
(26.91)p
|
(21.59)p
|
6.37p
|
(55.96)p
|
(49.59)p
|
Weighted
average number of ordinary shares
|
|
|
|
|
|
|
in
issue during the period
|
|
|
66,853,287
|
|
|
66,853,287
|
|
|
|
|
|
|
|
|
|
The total
columns of this statement represent the Company’s profit and loss
account, prepared in accordance with UK Accounting Standards. The
return on ordinary activities after taxation is the total
comprehensive income and therefore no additional statement of other
comprehensive income is presented. The supplementary revenue and
capital columns are presented for information purposes in
accordance with the Statement of Recommended Practice issued by the
Association of Investment Companies. All items in the above
statement derive from continuing operations of the Company. No
operations were acquired or discontinued in the period.
Condensed
Statement of Changes in Equity
|
|
Capital
|
|
|
|
|
|
Share
|
Redemption
|
Special
|
Capital
|
Revenue
|
|
|
Capital
|
Reserve
|
Reserve
|
Reserve
|
Reserve
|
Total
|
|
£’000
|
£’000
|
£’000
|
£’000
|
£’000
|
£’000
|
|
|
|
|
|
|
|
For the six
months ended 31 October 2023
|
|
|
|
|
|
|
At 30 April
2023
|
7,500
|
5,624
|
34,827
|
195,713
|
1,340
|
245,004
|
Return on
ordinary activities
|
–
|
–
|
–
|
(17,989)
|
3,557
|
(14,432)
|
At 31
October 2023
|
7,500
|
5,624
|
34,827
|
177,724
|
4,897
|
230,572
|
For the six
months ended 31 October 2022
|
|
|
|
|
|
|
At 30 April
2022
|
7,500
|
5,624
|
34,827
|
202,814
|
1,411
|
252,176
|
Return on
ordinary activities
|
–
|
–
|
–
|
(37,412)
|
4,257
|
(33,155)
|
At 31
October 2022
|
7,500
|
5,624
|
34,827
|
165,402
|
5,668
|
219,021
|
Condensed
Balance Sheet
Registered
Number 3011768
|
At
31 October
2023
£’000
|
At
30 April
2023
£’000
|
|
|
Fixed
assets
|
|
|
Investments
held at fair value through profit or loss – note 7
|
233,742
|
258,962
|
Current
assets
|
|
|
Overseas
withholding tax recoverable
|
213
|
145
|
VAT
recoverable
|
19
|
19
|
Prepayments
and accrued income
|
140
|
358
|
Cash and
cash equivalents
|
863
|
1,337
|
|
1,235
|
1,859
|
Creditors:
amounts falling due within one year
|
|
|
Bank
facility
|
(3,091)
|
(13,593)
|
Bank
overdraft
|
–
|
(740)
|
Accruals
|
(592)
|
(668)
|
|
(3,683)
|
(15,001)
|
Net current
liabilities
|
(2,448)
|
(13,142)
|
Total
assets less current liabilities
|
231,294
|
245,820
|
Creditors:
amounts falling due after more than one year
|
|
|
Provision
for deferred Indian capital gains tax
|
(722)
|
(816)
|
Net
assets
|
230,572
|
245,004
|
Capital and
reserves
|
|
|
Share
capital
|
7,500
|
7,500
|
Other
reserves:
|
|
|
Capital
redemption reserve
|
5,624
|
5,624
|
Special
reserve
|
34,827
|
34,827
|
Capital
reserve
|
177,724
|
195,713
|
Revenue
reserve
|
4,897
|
1,340
|
Total
shareholders’ funds
|
230,572
|
245,004
|
Net asset
value per ordinary share
|
|
|
Basic
|
344.89p
|
366.48p
|
Number of
10p ordinary shares in issue at the period end – note 6
|
66,853,287
|
66,853,287
|
Signed on
behalf of the Board of Directors.
Neil Rogan
Chairman
24 January 2024
Notes
to the Condensed Financial Statements
1. Accounting
Policies
The
condensed financial statements have been prepared in accordance
with applicable United Kingdom Accounting Standards and applicable
law (UK Generally Accepted Accounting Practice), including FRS 102
The Financial Reporting Standard applicable in the UK and
Republic of Ireland, FRS 104
Interim Financial Reporting and the Statement of Recommended
Practice Financial Statements of Investment Trust Companies and
Venture Capital Trusts, updated by the Association of Investment
Companies in July 2022. The financial
statements are issued on a going concern basis.
The
accounting policies applied to these condensed financial statements
are consistent with those applied in the Company’s 2023 Annual
Financial Report.
2. Income
|
Six
months to
|
Six
months to
|
|
31
October
|
31
October
|
|
2023
|
2022
|
|
£’000
|
£’000
|
Income from
investments:
|
|
|
Overseas
dividends –
ordinary
|
4,547
|
4,956
|
–
special
|
51
|
327
|
Deposit
interest
|
19
|
2
|
Total
income
|
4,617
|
5,285
|
Special
dividends of £42,000 were recognised in capital during the period
(31 October 2022:
£51,000).
3. Management
Fee and Finance Costs
Investment
management fee and finance costs on any borrowings are charged 75%
to capital and 25% to revenue. A management fee is payable
quarterly in arrears and is equal to 0.75% per annum of the value
of the Company’s total assets less current liabilities (including
any short term borrowings) under management at the end of the
relevant quarter and 0.65% per annum for any net assets over
£250 million.
4. Taxation
and Investment Trust Status
It is the
intention of the Directors to conduct the affairs of the Company
such that the conditions for approval as an investment trust
company are satisfied. As such, the Company has not provided any UK
corporation tax on any realised or unrealised capital gains or
losses arising on investments. The Company’s tax charge represents
withholding tax suffered on overseas income and Indian capital
gains tax paid and provided for due to the holding of Indian equity
investments which are subject to Indian Capital Gains Tax
Regulations. Further details can be found in Note 6(d) of the
Company’s 2023 Annual Financial Report on page 62.
5. Dividends
paid on Ordinary Shares
As noted in
the Chairman’s Statement, a first interim dividend of 7.20p per
share was paid on 23 November 2023 to
shareholders on the register on 3 November
2023. Shares were marked ex-dividend on 2 November 2023.
In
accordance with accounting standards, dividends payable after the
period end have not been recognised as a liability.
6. Share
Capital, including Movements
Share
capital represents the total number of shares in issue, including
treasury shares.
(a) Ordinary
Shares of 10p each
|
Six
months to
|
Year
to
|
|
31
October
|
30
April
|
|
2023
|
2023
|
Number
of ordinary shares in issue:
|
|
|
Brought
forward
|
66,853,287
|
66,853,287
|
Shares
bought back into treasury
|
–
|
–
|
Carried
forward
|
66,853,287
|
66,853,287
|
(b) Treasury
Shares
|
Six
months to
|
Year
to
|
|
31
October
|
30
April
|
|
2023
|
2023
|
Number
of treasury shares held:
|
|
|
Brought
forward
|
8,146,594
|
8,146,594
|
Shares
bought back into treasury
|
–
|
–
|
Carried
forward
|
8,146,594
|
8,146,594
|
Total
ordinary shares
|
74,999,881
|
74,999,881
|
During the
period the Company has not bought back nor re-issued any shares
into or from treasury (30 April 2023:
nil).
Subsequent
to the period end 31 October 2023 no
ordinary shares were issued, bought back into treasury nor
cancelled.
7. Classification
Under Fair Value Hierarchy
FRS 102
sets out three fair value levels. These are:
Level 1 –
The unadjusted quoted price in an active market for identical
assets that the entity can access at the measurement
date.
Level 2 –
Inputs other than quoted prices included within Level 1 that are
observable (i.e. developed using market data) for the asset or
liability, either directly or indirectly.
Level 3 –
Inputs are unobservable (i.e. for which market data is unavailable)
for the asset or liability.
The fair
value hierarchy analysis for investments and related forward
currency contracts held at fair value at the period end is as
follows:
|
31
October
|
30
April
|
|
2023
|
2023
|
|
£’000
|
£’000
|
Financial
assets designated at fair value through profit or loss:
|
|
|
Level
1
|
225,614
|
252,244
|
Level
2
|
8,089
|
6,680
|
Level
3
|
39
|
38
|
Total for
financial assets
|
233,742
|
258,962
|
The Level 2
investment consists of two holdings: (i) Invesco Liquidity Funds –
US Dollar money market fund valued at £595,000 and
(ii) Kasikornbank
valued at £7,494,000 (30 April 2023:
one holding in Kasikornbank valued at £6,680,000).
The Level 3
investment consists of one holding in Lime Co. (30 April 2023: Lime Co.).
8. Status
of Half-Yearly Financial Report
The
financial information contained in this half-yearly report does not
constitute statutory accounts as defined in section 434 of the
Companies Act 2006. The financial information for the half years
ended 31 October 2023 and
31 October 2022 have not been
audited. The figures and financial information for the year ended
30 April 2023 are extracted and
abridged from the latest audited accounts and do not constitute the
statutory accounts for that year. Those accounts have been
delivered to the Registrar of Companies and included the Report of
the Independent Auditor, which was unqualified and did not include
a statement under section 498 of the Companies Act 2006.
The
Half-Yearly Financial Report
for the Six Months to 31 October 2023
will be available to shareholders, and copies may be obtained
during normal business hours from the Company’s Registered Office,
from its correspondence address, 43-45 Portman Square, London W1H 6LY, and via
www.invesco.co.uk/invescoasia.
A copy of the Half-Yearly Financial Report will be submitted
shortly to the National Storage Mechanism ("NSM") and will be
available for inspection at the NSM, which is situated at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
By order of
the Board
Invesco
Asset Management Limited
Corporate
Company Secretary
24 January 2024
Glossary
of Terms and Alternative Performance Measures
Glossary
of Terms
(Discount)/Premium
Discount is
a measure of the amount by which the mid-market price of an
investment company share is lower than the underlying net asset
value (NAV) of that share. Conversely, Premium is a measure of the
amount by which the mid-market price of an investment company share
is higher than the underlying net asset value of that share. In
this interim financial report the discount is expressed as a
percentage of the net asset value per share and is calculated
according to the formula set out below. If the shares are trading
at a premium the result of the below calculation will be positive
and if they are trading at a discount it will be
negative.
Gearing
The gearing
percentage reflects the amount of borrowings that a company has
invested. This figure indicates the extra amount by which net
assets, or shareholders’ funds, would be expected to move if the
value of a company’s investments were to rise or fall. A positive
percentage indicates the extent to which net assets are geared; a
nil gearing percentage, or ‘nil’, shows a company is ungeared. A
negative percentage indicates that a company is not fully invested
and is holding net cash as described in the Alternative Performance
Measures section below.
Leverage
Leverage,
for the purposes of the Alternative Investment Fund Managers
Directive (AIFMD), is not synonymous with gearing as defined above.
In addition to borrowings, it encompasses anything that increases
the Company’s exposure, including foreign currency and exposure
gained through derivatives. Leverage expresses the Company’s
exposure as a ratio of the Company’s net asset value. Accordingly,
if a Company’s exposure was equal to its net assets it would have
leverage of 100%. Two methods of calculating such exposure are set
out in the AIFMD, gross and commitment. Under the gross method,
exposure represents the aggregate of all the Company’s exposures
other than cash balances held in base currency and without any
offsetting. The commitment method takes into account hedging and
other netting arrangements designed to limit risk, offsetting them
against the underlying exposure.
Net
Asset Value (‘NAV’)
Also
described as shareholders’ funds, the NAV is the value of total
assets less liabilities. The NAV per share is calculated by
dividing the net asset value by the number of ordinary shares in
issue. The number of ordinary shares for this purpose excludes
those ordinary shares held in treasury.
Portfolio
Beta
The
portfolio beta is a measure of the portfolio’s sensitivity to
market movements. The beta of the market is 1.00 by definition. A
beta of 1.10 shows that the portfolio would be expected to perform
10% better than its benchmark index in rising markets and 10% worse
in falling markets, assuming all other factors remain constant.
Conversely, a beta of 0.90 indicates that the portfolio would be
expected to perform to perform 10% worse than the benchmark index
during rising markets and 10% better during falling markets. The
beta of the Company’s portfolio was 1.09 as at 31 October 2023.
Return
The return
generated in a period from the investments including the increase
and decrease in the value of investments over time and the income
received.
Capital
Return
Reflects
the return on NAV, from the increase and decrease in the value of
investments, but excluding any dividends reinvested.
Total
Return
Total
return is the theoretical return to shareholders that measures the
combined effect of any dividends paid, together with the rise or
fall in the share price or NAV. In this half-yearly financial
report these return figures have been sourced from LSEG Data &
Analytics who calculate returns on an industry comparative basis.
The figures calculated below are six month and one year total
returns, however the same calculation would be used for three, five
and ten year total returns where quoted in this report, taking the
respective Net Asset Values and Share Prices period for the opening
and closing periods and adding the impact of dividend reinvestments
for the relevant periods.
NAV
Total Return
Total
return on net asset value per share, assuming dividends paid by the
Company were reinvested into the shares of the Company at the NAV
per share at the time the shares were quoted
ex-dividend.
Share
Price Total Return
Total
return to shareholders, on a mid-market price basis, assuming all
dividends received were reinvested, without transaction costs, into
the shares of the Company at the time the shares were quoted
ex-dividend.
Benchmark
Total Return
The
benchmark of the Company is the MSCI AC Asia ex Japan Index (total
return, net of withholding tax, in sterling terms). Total return on
the benchmark is on a mid-market value basis, assuming all
dividends received were reinvested, without transaction costs, into
the shares of the underlying companies at the time the shares were
quoted ex-dividend.
Alternative
Performance Measures
An APM is a
measure of performance or financial position that is not defined in
applicable accounting standards and cannot be directly derived from
the financial statements. The calculations shown in the
corresponding tables are for the six months ended 31 October 2023 and the year ended 30 April 2023. The APMs listed here are widely
used in reporting within the investment company sector and
consequently aid comparability.
(Discount)/Premium
(APM)
|
|
|
At
31 October
2023
|
At
30 April
2023
|
|
Page
|
|
Share
price
|
1
|
a
|
296.00p
|
321.00p
|
Net asset
value per share
|
15
|
b
|
344.89p
|
366.48p
|
Discount
|
|
c =
(a-b)/b
|
(14.2)%
|
(12.4)%
|
The average
discount for the period/year is the arithmetic average, over a
period/year, of the daily discount calculated on the same basis as
shown above.
Gross
Gearing (APM)
This
reflects the amount of gross borrowings in use by a company and
takes no account of any cash balances. It is based on gross
borrowings as a percentage of net assets. As at 31 October 2023 the Company had £3,091,000 gross
borrowings (30 April 2023:
£14,333,000).
|
|
|
At
31 October
2023
|
At
30 April
2023
|
|
|
|
|
Page
|
|
£’000
|
£’000
|
Bank
facility
|
15
|
|
3,091
|
13,593
|
Overdraft
|
15
|
|
–
|
740
|
Gross
borrowings
|
|
a
|
3,091
|
14,333
|
Net
assets
|
15
|
b
|
230,572
|
245,004
|
Gross
gearing
|
|
c =
a/b
|
1.3%
|
5.9%
|
Net
Gearing or Net Cash (APM)
Net gearing
reflects the amount of net borrowings invested, i.e. borrowings
less cash and cash equivalents (incl. investments in money market
funds). It is based on net borrowings as a percentage of net
assets. Net cash reflects the net exposure to cash and cash
equivalents, as a percentage of net assets, after any offset
against total borrowings.
|
|
|
At
31 October
2023
|
At
30 April
2023
|
|
|
|
|
Page
|
|
£’000
|
£’000
|
Bank
facility
|
15
|
|
3,091
|
13,593
|
Overdraft
|
15
|
|
–
|
740
|
Less: cash
and cash equivalents including margin
|
15
|
|
(863)
|
(1,337)
|
Less:
Invesco Liquidity Fund – US Dollar (money market fund)
|
|
|
(595)
|
—
|
Net
borrowings
|
|
a
|
1,633
|
12,996
|
Net
assets
|
15
|
b
|
230,572
|
245,004
|
Net
gearing
|
|
c =
a/b
|
0.7%
|
5.3%
|
Total
Return (APM)
|
|
|
Net
Asset
|
Share
|
Six
Months Ended 31 October 2023
|
Page
|
|
Value
|
Price
|
As at 31
October 2023
|
1
|
|
344.89p
|
296.00p
|
As at 30
April 2023
|
1
|
|
366.48p
|
321.00p
|
Change in
period
|
|
a
|
–5.9%
|
–7.8%
|
Impact of
dividend reinvestments(1)
|
|
b
|
0.0%
|
0.0%
|
Total
return for the period
|
|
c =
a+b
|
–5.9%
|
–7.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Asset
|
Share
|
Year
Ended at 30 April 2023
|
Page
|
|
Value
|
Price
|
As at 30
April 2023
|
1
|
|
366.48p
|
321.00p
|
As at 30
April 2022
|
|
|
377.21p
|
332.50p
|
Change in
year
|
|
a
|
–2.8%
|
–3.5%
|
Impact of
dividend reinvestments(1)
|
|
b
|
4.1%
|
4.7%
|
Total
return for the year
|
|
c =
a+b
|
1.3%
|
1.2%
|
(1) No
dividends have been paid during six months to 31 October 2023 (year to 30 April 2023: 14.80p). NAV or share price
movements subsequent to the reinvestment date further impact the
returns, rising if the NAV or share price rises and falling if the
NAV or share price falls.