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Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
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abrdn Asian Income Fund Limited Annual Report 31 December 2024
abrdn Asian Income Fund Limited
Annual Report 31 December 2024
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Performance Highlights 2
Summary of Results 4
Strategic Report
Chairman’s Statement 7
Investment Manager’s Review 11
Overview of Strategy 17
Dividends and Ten Year Financial
Record 26
Performance 27
Geographic/Sector Analysis 29
Portfolio
Ten Largest Investments 31
List of Investments 33
Investment Case Studies 35
Governance
Board of Directors 38
Directors’ Report 40
Audit Committee’s Report 48
Directors’ Remuneration Report 50
Statement of Directors’
Responsibilities 53
Independent Auditor’s Report 54
Financial Statements
Statement of Comprehensive
Income 59
Balance Sheet 60
Cash Flow Statement 61
Statement of Changes in Equity 62
Notes to the Financial Statements 63
Securities Financing Transactions
Disclosure (Unaudited) 88
Corporate Information
Information about the Investment
Manager 91
The Investment Process 92
Investor Information 95
Glossary of Terms 97
Share Capital History 99
AIFMD Disclosures (Unaudited) 100
Alternative Performance Measures 101
General
Notice of Annual General Meeting 105
Corporate Information 108
Contents
Find out more
www.asian-income.co.uk
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authorised financial adviser. If you have sold or otherwise transferred all your Ordinary shares in abrdn
Asian Income Fund Limited, please forward this document, together with the accompanying documents
immediately to the purchaser or transferee, or to the stockbroker, bank or agent through whom the sale or
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The investment approach
Through intensive, first-hand research, our Investment Manager actively manages
the portfolio to deliver long-term returns.
About the Company
A bottom-up, unconstrained
strategy focused on delivering
rising income and capital
growth by investing in quality
Asia Pacific companies at
sensible valuations.
Our Investment Manager’s teams
are on the ground in Asia, seeking
cash-generative companies with
strong balance sheets that pay
attractive dividends to their
shareholders.
abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Identifying and investing in quality assets
01
Our Investment Manager rates every investment against
strict quality criteria designed for each asset class.
Intensive first-hand research, supported by its global
presence and proprietary tools, means it can often identify
investments whose quality is not yet fully recognised by
the market.
Being forward focused
03
Achieving superior results by being forward-focused.
Our Investment Manager focuses on what is changing in
companies, industries and markets but is not being priced
in or is being mispriced. It analyses the dynamic factors
shaping opportunities and identifies the corporate leaders
of the future.
Team-based, high-conviction thinking
02
Instead of star managers, our Investment Manager uses
the insight and analysis of its whole team to rate and select
investments. This in turn gives them the conviction to focus
on their best ideas – and build a portfolio that may be very
different from the Index and competitor funds.
Encouraging positive change
04
Our Investment Manager believes that investing
sustainably has the ability to create a fairer, healthier
world. It is also critical to managing risk and generating
better returns. Analysis of ESG factors is part of the
investment process.
Once invested, our Investment Manager actively engages with companies to continue raising standards
across their activities and operations.
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10.8%
NAV total return
£410.3m
Net Assets
6.6%
Dividend yield
14.43p
Dividend per Ordinary share
The Company at a Glance
abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
12.0%
Share price total return
Section 1 l Performance Highlights 1
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Targeting income and capital growth
from a fund invested in some of
Asia’s most successful and promising
companies, expertly managed by
teams on the ground.
We get Asia because
we’re here.
We speak the language and
live the culture of where we
invest; gaining first-hand market
insights and enriching data with a
deep understanding of the local
landscape.
Relationships to rely on.
Our connections breed consistency. We
build and maintain partnerships with
companies and their management
teams to unlock their business growth
and your income potential.
Diversification, delivered.
From established brands to growth
industries, we extend beyond
boundaries and sectors to diversify
income opportunities from the
strongest-performing and fastest-
growing businesses across Asia.
The Company in detail
See under the foldout detailed
information on the make-up of the Company.
The Engine of Global Growth: Asia is set to power more than half of the world’s GDP, solidifying its role as a
leading force in global economic expansion.
Dividends Driving Returns: More than half of the total returns in Asian equities now come from dividends,
making them a key driver of market performance.
Asia’s Dividend Revolution: Corporates and governments across Asia are increasingly prioritising
dividends, with 50% of the MSCI AC Asia Pacific ex Japan Index now offering yields above 2.5%.
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2 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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Performance Highlights
Dividend per Ordinary share
14.43p
2024
2023
11.75p
14.43p
The share price total return for the year ended 31 December 2024 was 12.0%
and the NAV total return was 10.8%.
Dividend yield of 6.6%.
Dividend yield
ACD
6.6%
2024
2023
5.6%
6.6%
Net asset value total return
AB
+10.8%
2.5%
10.8%
2024
2023
Ordinary share price total return
AB
+12.0%
1.9%
12.0%
2024
2023
MSCI AC Asia Pacific ex Japan Index total return
(currency adjusted)
B
+12.6%
1.6%
12.6%
2024
2023
Earnings per Ordinary share – basic (revenue)
11.35p
11.97p
11.35p
2024
2023
Discount to net asset value per Ordinary share
AC
12.5%
12.8%
12.5%
2024
2023
Ongoing charges
AE
0.85%
1.00%
0.85%
2024
2023
Net gearing
AC
7.2%
7.5%
7.2%
2024
2023
A
Alternative Performance Measure (see pages 101 to 103).
B
Total return represents the capital return plus dividends reinvested.
C
As at 31 December.
D
Yield is calculated as the dividend per Ordinary share divided by the share price per Ordinary share expressed as a percentage.
E
Calculated in accordance with the latest AIC guidance issued in October 2020 to increase the scope of reporting the look-through costs of holdings in
investment companies.
Section 1 l Performance Highlights 3
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Net asset value total return
A
To 31 December – percentage
2021
2020
2023
2022
2024
-3.6
11.0
10.8
12.9
2.5
6.6%
Dividend yield
1 2.0%
Share price total return
10.8 %
NAV total return
Ordinary share price total return
A
To 31 December – percentage
2021
2020
2023
2022
2024
-2.7
5.2
12.1
12.0
1.9
MSCI AC Asia Pacific ex Japan Index total return
(currency adjusted)
To 31 December – percentage
2021
2020
2023
2022
2024
-6.8
19.0
12.6
-1.8
1.6
A
Alternative Performance Measure (see pages 101 to 103).
Dividends per Ordinary share
To 31 December – pence
2021
2020
2023
2022
2024
10.0
9.50
9.30
11.75
14.43
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4 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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Summary of Results
Financial Highlights
31 December
2024
31 December
2023 % change
Net asset value total return
A
+10.8% +2.5%
Share price (Ordinary) total return
A
+12.0% +1.9%
MSCI AC Asia Pacific ex Japan Index total return (currency adjusted) +12.6% +1.6%
Market capitalisation (£million) £330.7 £347.7 -4.9
Discount to net asset value per Ordinary share
A
12.5% 12.8%
Ongoing charges ratio
A
0.85% 1.00%
Dividends and earnings
Total return per Ordinary share
B
21.49p 5.18p n/a
Earnings per Ordinary share – basic (revenue)
B
11.35p 11.97p -5.2
Dividends per Ordinary share
C
14.43p 11.75p +22.8
Dividend cover per Ordinary share
A
0.79 1.02 -
Revenue reserves (£million)
D
£3.5 £7.7
Dividend yield
A
6.6% 5.6%
A
Considered to be an Alternative Performance Measure as defined on pages 101 to 103.
B
Measures the relevant earnings for the year divided by the weighted average number of Ordinary shares in issue (see note 10 on page 72).
C
The figure for dividends reflects the years in which they were earned (see note 9 on page 71).
D
The revenue reserves figure takes account of the fourth interim dividend amounting to £10,148,000 (2023 - fourth interim amounting to £7,100,000).
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Section 1 l Summary of Results 5
Capital Performance to 31 December 2024
31 December
2024
31 December
2023 % change
Total assets (see definition on page 98) (£million) £410.3 £431.0 -4.8
Total equity shareholders’ funds (net assets) (£million) £377.9 £398.9m -5.3
Net asset value per Ordinary share 251.42p 238.59p +5.4
Ordinary share price 220.00p 208.00p +5.8
Long-Term Total Return Performance to 31 December 2024
1 year
% return
3 year
% return
5 year
% return
Since launch
B
% return
Net asset value
A
+10.8 +9.5 +37.2 +442.6
Share price (Ordinary)
A
+12.0 +11.0 +31.0 +385.4
MSCI AC Asia Pacific ex Japan Index (currency adjusted) +12.6 +6.7 +24.7 +360.2
A
Considered to be an Alternative Performance Measure (see pages 101 to 103 for more details).
B
Launch date being 20 December 2005.
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The Company aims to attract long-term
private and institutional investors wanting to
benefit from the income and growth potential
of Asia’s most compelling companies.
Strategic Report
Section 2 l Strategic Report 7
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Chairman’s Statement
Performance
It is pleasing to report a strong year of returns for shareholders.
The share price total return was 12.0% and the net asset value
(“NAV”) total return was 10.8%. These returns compare to a total
return of 12.6% from the MSCI AC Asia Pacific ex Japan Index
(the “Index”). The Company continues to have a strong longer
term record, outperforming the Index for both NAV and share
price total return over three and five years as set out in more
detail on page 27.
It is also pleasing to report an increase of 22.8% in the dividend
for the year, providing a yield of 6.6%, and a significant reduction
in our ongoing charges ratio following a renegotiation of the
management fee at the beginning of the year.
The discount at the year end was 12.5%, although at the
time of writing it has reduced to around 10.5% following the
introduction of the new enhanced dividend policy outlined
below.
Throughout the year, our Investment Manager’s focus on
quality high-yielding stocks in Asia provided a good buffer
against the impact of the various macroeconomic and political
headwinds. A more detailed summary of market developments
and performance for the year can be found in the Investment
Manager’s Review on pages 11 to 16.
Revenue and Dividends
Four quarterly dividends were declared in respect of the year.
The first three dividends were paid at a rate of 2.55p with a
fourth interim dividend of 6.78p, resulting in total dividends for
the year of 14.43p per share. This represents a 22.8% increase
(compared to last year’s dividends of 11.75p per share),
providing a yield of 6.6% based on the year end share price.
The Board is pleased to note that this represents the sixteenth
consecutive year of annual dividend increases and means that
the Company continues to be a “next generation dividend hero”
as recognised by the Association of Investment Companies.
Revenue earnings per share for the year were 11.35p (2023:
11.97p). Income generation from the portfolio continues to be
strong, with the Company benefitting from our Investment
Manager’s focus on high-yielding companies with strong
fundamentals.
Highlights
● Dividend yield of 6.6% (total dividend for the year of 14.43p, an increase of 22.8%).
● Share price total return of 12.0%.
● Ongoing charges decreased from 1.0% to 0.85%.
● Enhanced annual dividend policy introduced from the start of the 2025 financial year
(notional annual dividend yield of 7.1%).
● Continuation vote to be held every three years.
8 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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Ongoing Charges
As set out in detail in the 2023 Annual Report, with effect from 1
January 2024, the Company has benefited from a negotiated
reduction in the management fee, with the annual fee now
calculated on the lower of market capitalisation and net assets,
at 0.75% up to £300 million and 0.60% over £300 million. It is
pleasing to note that this has contributed to a reduction in the
ongoing charges ratio, which was 0.85% for the year compared
to 1.0% in 2023, a reduction of 15%.
Enhanced Dividend Policy and Introduction of
Continuation Vote
The Board has consistently prioritised delivering meaningful
dividends to shareholders alongside capital growth in the Asian
region, and we recognise investors’ continued appetite for yield
in the current interest rate environment. Accordingly, since the
year end we have announced that the Company’s dividend will
in the future be set at 1.5625% per quarter of the NAV, equating
to approximately 6.25% of NAV per annum. The dividend will be
calculated using the Company’s NAV on the last business day
of the preceding financial quarter (i.e. the end of March, June,
September and December).
Based on the Company’s NAV as at 31 December 2024 and
closing year end share price, this enhanced dividend policy
would equate to a notional annual dividend yield of 7.1%
based on share price. This approach ensures a consistent and
attractive income stream for shareholders while broadening
the appeal of the Company’s shares and, over time, aiming to
narrow the discount.
The first dividend payment to be made under the enhanced
policy will be in May 2025, for the quarter ended 31 March 2025.
We believe that this measure will enhance shareholder returns
and make the Company’s shares more attractive to a wider
range of investors. Importantly, there will be no change to the
investment process nor to the Company’s strategy as a result of
the new policy. The Investment Manager will continue to seek
quality, cash-generative businesses with strong management
teams, at sensible valuations, that have the potential to deliver
reliable income and capital growth for our investors.
The enhanced dividend policy reflects the Board’s confidence
in the long term robust opportunities in Asian markets, where
dividend yields and growth have outpaced those of Europe
10 years of annual dividend growth
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
2024202320222021202020192018201720162015
Pence
Chairman’s Statement continued
“ It is pleasing to report a strong year of returns for shareholders. The share price
total return was 12.0% and the net asset value (“NAV”) total return was 10.8%.”
Section 2 l Strategic Report 9
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9.50p
Dividend per Ordinary share
14.43p
Dividend per share
and the US. With over 50% of total returns in Asian equities
now driven by dividends, and with companies in the region
demonstrating stronger balance sheets and increasing free
cash flow coverage for dividends, the potential for rising payout
ratios is compelling.
The new policy means that dividends paid will reflect the
Company’s net assets at each quarter end. Dividends will
therefore be subject to market and performance fluctuations
and will vary from quarter to quarter, in line with underlying
earnings, currency movements and changes in the portfolio
value. As is currently the case, in years when the net revenues
fall below the level required for a fully covered dividend,
dividends will be funded from a combination of revenue and
capital reserves thus using one of the key benefits of the
investment company structure.
Alongside the enhanced dividend policy, to further align
with shareholder interests, the Board also announced the
introduction of a continuation vote so that shareholders can
decide whether they wish the Company to continue in its
current form at regular intervals. A continuation vote will first
be tabled at the Company’s Annual General Meeting in 2028,
and every three years thereafter. Shareholders will be asked
by simple majority vote if they wish the Company to continue
in its current form. In the event that the vote should fail, further
proposals will be brought to shareholders regarding the future
of the Company.
The Board believes that these actions, alongside the strong
investment performance of the Company and reduced
charges associated with the recent switch to a market cap-
based management fee, should create a positive outlook for
shareholder returns.
Share Capital Management
The Company bought back £36 million worth of shares during
the year to be held in treasury, representing 10.1% of the shares
in issue at the start of the period, at an average discount of
12.4% and providing an estimated enhancement of 1.2% to the
NAV per share. Subsequent to the year end the Company has
bought back a further £8.7 million worth of shares.
The Company will continue to selectively buy back shares in the
market, in normal market conditions and at the discretion of the
Board.
Gearing
At the year end, the Company had a £50 million revolving credit
facility, £32.4 million of which was drawn down, resulting in
gearing (net of cash) of 7.2% (2023: 7.5%).
The loan facility matured in February and has been replaced
with a new one year facility with the existing lender, Bank of
Nova Scotia, London Branch. Under the terms of the facility,
the Company has the option to increase the level of the
commitment from £50 million to £70 million at any time, subject
to the Lender’s credit approval.
Annual General Meeting (“AGM”)
The AGM will be held at 10:30am on 8 May 2025 at the offices
of the Aberdeen Group, 18 Bishops Square, London E1 6EG.
There will be a short presentation from the Investment Manager
followed by tea and coffee. We very much look forward to
meeting and engaging with as many shareholders as possible.
We encourage all shareholders to complete and return the
Proxy Form enclosed with the Annual Report so as to ensure
that your votes are represented at the meeting. If you hold
your shares in the Company via a share plan or a platform and
would like to attend and/or vote at the AGM, then please make
arrangements with the administrator of your share plan or
platform.
Investment Management Team
We are pleased to announce that Isaac Thong is to be
appointed lead manager of the Company working alongside
Eric Chan. Isaac will be joining Aberdeen’s Asia Pacific Equities
team as Senior Investment Director, based in Singapore, and
will be responsible for the day-to-day portfolio management
of the Company. He will also lead the Asian Income portfolio
construction group within Aberdeen which includes
responsibility for the Company’s portfolio.
“ Total dividends of 14.43p per share, representing a 22.8% increase from last year
and providing a yield of 6.6% based on the year end share price.”
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Isaac replaces Yoojeong Oh who is leaving Aberdeen to pursue
other interests. The Board is extremely grateful to Yoojeong for
her careful stewardship of the Company over the last decade
and as we look forward to celebrating our 20th anniversary
later this year.
With over 15 years’ experience in the financial services industry
and over a decade of experience investing in Asia equities,
Isaac brings with him a wealth of knowledge and expertise that
will enable the investment team to continue finding companies
that will deliver sustainable growth, consistent income and
attractive returns for our shareholders.
Board Composition
During the year, the Board was pleased to announce the
appointment of Jane Routledge as an independent non-
executive Director of the Company, with effect from 8 May
2024. Jane has significant marketing experience with a long
career in the investment management sector, and has already
provided significant benefit to the Board.
As previously announced, Krystyna Nowak, who was appointed
as a Director in May 2015, will retire at the AGM on 8 May 2025.
On behalf of the Board I would like to thank Krystyna for her
significant contribution to the Company over this period. We will
miss her wise counsel.
My own appointment to the Board was on 11 May 2016. Given
the recent introduction of the enhanced dividend policy and the
changes to the management team, the other Directors have
agreed that I will continue as Chairman until the AGM in 2026.
This will help oversee the implementation of these changes
which are important developments for the Company and it is
the view of all the Directors that it is in shareholders’ interests for
continuity in the Board at this time. It is the Board’s intention that
Jane Routledge will succeed me as Chair upon my retirement.
It is the current intention of the Board to appoint a new
independent non-executive Director later this year.
Change of Name of the Company
In order to align the Company’s name with the name of the
Investment Manager’s business, which has recently changed
from abrdn plc to Aberdeen Group plc, the Board is proposing,
with effect from 1 June 2025, to change the Company’s name
to Aberdeen Asian Income Fund Limited. A resolution to this
effect will be proposed at the AGM.
Outlook
Trade tariffs imposed by the new US Administration create an
uncertain outlook for Asia in 2025. Furthermore, US deregulation
and tax cuts could strengthen the US Dollar, which is
unfavourable for Asia. On the other hand, attractive valuations
in Asia offer the potential for upside surprises underpinned by
structural tailwinds. As a region, Asia offers exciting investment
opportunities in innovation, globalisation and new consumption,
and it is also home to some of the highest-quality and most
dynamic companies globally.
Our Investment Manager is confident of leveraging on
the immense potential of Asia by investing in high-quality
companies with strong balance sheets and consistent earnings
growth that are committed to delivering shareholder returns
through dividends and buybacks. The Board believes that a
strategic focus on quality is key to delivering sustainable growth
and attractive returns for our shareholders and, taken together
with the new enhanced dividend policy, we are excited about
the future prospects for your company.
Ian Cadby
Chairman
25 March 2025
Chairman’s Statement continued
“Ongoing charges for the year were 0.85%, compared to 1.0% in 2023,
a reduction of 15%.”
Section 2 l Strategic Report 11
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How did abrdn Asian Income Fund perform in 2024?
01
We are pleased to report strong returns for the year, with a share price total return of 12.0% and a net
asset value (“NAV”) total return of 10.8%. These returns compare with a total return of 12.6% from the
MSCI AC Asia Pacific ex Japan Index (the “Index”). We are also pleased to report a 22.8% increase in
the total dividend for 2024. This marks the sixteenth consecutive year of annual dividend increases.
The dividend yield at the year end was 6.6%, around double that of the Index.
The Company continues to have a good longer-term performance record, outperforming the Index
over three and five years.
Throughout 2024, geopolitical events, including tariff risk from Donald Trump’s return as US President,
and US interest rate changes, induced volatility, but our focus on quality stocks in Asia provided
stability and we took advantage of growth opportunities during better market phases.
The US Federal Reserve reduced interest rates three times during the year. Some Asian central banks
followed suit, creating an environment conducive to investing in high-yielding equities. Singapore,
which is one of the largest markets in the portfolio, was among the best performers, driven by solid
earnings from local banks.
Asia was among the beneficiaries of buoyed investor optimism around artificial intelligence and
related applications given that the region lies at the heart of various technology supply chains. The
Taiwanese market, which has a heavy technology tilt and is the largest country weighting in the
portfolio, was the top performer in the region.
China and India both posted gains that beat the regional index. China’s performance was thanks to
monetary and fiscal stimulus measures which signalled a clear shift towards growth and resulted in
a late-year rally. The key event in India was Prime Minister Narendra Modi’s election victory earlier in
the year, but the market lost some momentum towards the year end due to concerns over slowing
domestic growth and as China’s stimulus measures led to a rotation out of India.
Elsewhere in the region, there was political turmoil in South Korea with the short-lived imposition
of martial law which led to significant market underperformance, making it the worst performing
country in the region over the year.
Investment Manager’s Review
10.8%
NAV total return
12.0%
Share price
total return
12.6%
Index total return
6.6%
Dividend yield
11 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Source: Haver, abrdn global macro research, June 2023, Jefferies, March 2024
Why Asia?
Huge consumption potential
Asia moving UP! Global GDP is also increasingly driven by Asia
We believe Asia is poised to drive global economic growth and is
set to account for more than half of the world’s GDP growth
We believe there are major demographic dividends in Asia yet
to be fully realised, led by giants like China and India, while
dynamic South East Asian economies such as Indonesia and
Thailand are also growing rapidly.
Focus on dividends is increasing across corporate Asia, where
50% of the APXJ region are now yielding more than 2.5%.
We believe the risk of dividend cuts is low in Asia due to robust
earnings and strong balance sheets, which provide good
support for growing dividends.
0
40,000
80,000
120,000
160,000
1970 1980 1990 2000 2010 2020 2030 2040 2050
GDP ($bn, 2015 constant prices)
La tAm, E ast er n Eur ope , Mid dl e E as t, A fri ca
Eu ro pe , N o rdi cs
Nor th Ame rica
Asia Pacific Incl. J apan
4
.
12 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 19 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
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02
What’s going on in China?
China continues to demand investor focus during a prolonged
period of volatility and uncertainty. 2024 was a case of “a weak
economy but strong markets” for the country. Weak demand,
a prolonged property downturn, and softer investor sentiment
meant that consumption has been slow to recover. However,
in September, China introduced several stimulus measures,
sparking a turnaround in sentiment and a market rally.
Looking ahead to 2025, the government is expected to continue
its supportive policies. More fiscal stimulus is anticipated during
the upcoming Two Sessions meeting in March, where the
country’s leaders will gather to shape domestic, economic and
social goals for the year ahead, including measures to respond
to future tariffs on Chinese imports to the US. If there is no major
stimulus, we expect a gradual earnings recovery as mainland
companies benefit from the existing loose monetary and fiscal
policies.
As for our positioning in China, the portfolio has long held a
smaller weighting to China versus the Index. This is because the
market does not yet prioritise dividends and shareholder return,
as much as higher yielding markets in Asia, such as Australia
and Singapore. Nonetheless, we regard China as a key part of
our strategy, with investments in companies that offer growth
potential and strong cash flow generation, and we maintain an
active pipeline of good quality stocks with good cash flows so
that we can act when dividend policies are put in place.
A good example is e-commerce group Tencent, which we
first bought in 2022 after it formalised its dividend policy,
linking payouts to free cash flow generation. This move made
Tencent an attractive investment, enhancing the portfolio’s
overall yield and growth strategy. Another example is Midea
Group, a leading home appliance company with strong free
cash flow generation and a long-running dividend policy.
These investments highlight our approach to finding quality
businesses in China that can provide both growth and income.
03
How will Trump 2.0 and US rates affect the Company?
The Trump presidency is likely to impact the US interest rate
outlook as, whilst current rate expectations are low, the speed
and extent of any changes remain uncertain. This uncertainty
can influence US inflation, and the likelihood of interest rate
increases or cuts throughout the year. Despite this volatility, the
Company has historically performed well in such environments,
delivering good returns even in the face of fluctuating interest
rates, given our investment process focuses on quality
businesses that can perform well across business cycles.
President Trump’s rapid pace of executive actions, especially
on trade, has led to an updating of our house views. We now
see the US weighted average tariff rate going higher, to 9.1%.
We assume a reciprocal tariff to be implemented, albeit with
various carve-outs; higher blanket tariffs on China; and more
sector-specific tariffs, including on the EU, Canada and Mexico.
Specifically, our base case ‘Trump 2.0’ scenario now includes a
global reciprocal tariff, likely to be introduced when the current
trade review is concluded in April. US-China tariffs will move
meaningfully higher. The additional 20% tariff already applied is
likely to be permanent, because China may struggle to deliver
initiatives to assuage the administration’s fentanyl concerns.
We are incorporating another 10% increase in tariffs on China,
owing to a mix of reasons: fentanyl-related concerns; the
bilateral deficit; and broader economic decoupling.
Given the above, we would note that the Company is invested
in companies that generally are market leaders that should
be able to share the cost increase with the supply chain and
consumers. Some of them might even be relative winners as
they will be well placed with a more globally flexible supply
chain and more efficient operations.
In the portfolio, for instance, we hold SITC, a Hong Kong-
listed intra-Asia focused shipping company. The trade war
uncertainty has worked in its favour in recent years, and it
has paid bumper dividends. The company has been very
disciplined about returning excess cash to shareholders as
special dividends when the freight cycle works in its favour.
Investment Manager’s Review continued
Section 2 l Strategic Report 13
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3 | abrdn.com
Source: Bloomberg, November 2024. For illustrative purposes only. No assumptions regarding
future performance should be made
Source: MSCI, abrdn, October 2024
How Asia performed during President Trump’s first term
History suggests some volatility ahead but strong potential for rebound from current levels
Asia kept pace at the start before diverging due to China
50
70
90
110
130
150
170
190
2016 2017 2018 2019 2020
Last price (USD), Normalised as of 31 Oct 2016
MSCI Asia Pacific ex-Japan S&P 500
Today, the region is a lot more diversified
0
5
10
15
20
25
30
35
40
Australia
China
Hong Kong
India
Indonesia
Korea
Malaysia
New Zealand
Philippines
Singapore
Taiwan
Thailand
end-2020 2024 (as of end-Sep)
Start of
trade war
Start of
Covid
%
04
How are we investing in the future of AI?
The Company is actively investing in the future of Artificial
Intelligence (“AI”) by identifying companies that are well-
positioned to benefit from advancements in this field. We
see real winners in the Asian technology hardware and
semiconductor supply chain companies.
The largest holding in the portfolio is Taiwan Semiconductor
Manufacturing Company (“TSMC”), a global leader in producing
semiconductors that are key building blocks to drive and
support AI use across end uses. Through its sizeable production
moat built up over several decades, TSMC has a market leading
share globally with strategic customer relationships. The
strong end-market demand and the barriers to entry from the
sizeable capital requirements to replicate its production eco-
system has enabled TSMC to generate strong free cash flows
that support a growing dividend per share to shareholders.
The dividend yield is low at below 2%, but this is driven by the
share price, which has increased threefold in the past five years.
Shareholders in TSMC have enjoyed good capital and dividend
growth.
At the other end of the market capitalisation spectrum, the
portfolio also holds Sunonwealth Electric Machine, a Taiwanese
company that makes cooling fans for data centres. It supplies
to customers in industries such as IT, automotive electronics
and network communication. Sunonwealth is recognised as a
niche player and a preferred partner for customised cooling
solutions, which strengthens its market position. Moreover, it has
developed the first-ever MagLev motor fan, the world’s smallest
and thinnest magnetic levitation motor fan, showcasing its
innovative capabilities. As AI technology becomes more
complex, the need for advanced cooling solutions grows,
making Sunonwealth an essential part of the AI supply chain.
Additionally, Sunonwealth’s strong balance sheet and cash
flows support a healthy dividend payout and attractive yield.
These investments demonstrate our strategy of finding quality
businesses of all sizes that are exposed to growth opportunities
in AI, while also contributing to the Company’s income
objectives.
14 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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TSMC
World’s largest pure-play semiconductor player with good cash flow generation
Continued steady earnings and dividends through the years
Source: Bloomberg, February 2025. *Year-to-date figure with 4Q 2024 still to be announced
05
Where are we finding dividends?
We are finding dividends in various markets across Asia, across
a wide variety of countries and sectors that offer attractive
yields. Taiwan, Singapore, and Australia are the top three
yielding countries within the region and are heavily represented
in the portfolio. We have also been able to invest at attractive
levels during market downturns, that offer income and growth.
In Singapore, we hold DBS, a bank with operations across
Southeast Asia that supports earnings growth and offers close
to a 5% dividend yield. The bank’s commitment to paying
dividends highlights its robust financial health and ability
to generate consistent cash flow. This focus on dividends is
particularly appealing to income-focused investors seeking
stable returns. The country’s strong regulatory environment
fosters investor confidence and supports the bank’s growth
and income potential. Overall, DBS’s strategic expansion,
strong financial health, and commitment to dividends make it
a compelling investment choice in the Asia region. Meanwhile,
we are also invested in CapitaLand India Trust, which is listed in
Singapore but derives all its revenue from rental income in India.
This provides access to the high-growth Indian market while
offering a 6% dividend yield.
Elsewhere in China, we have invested in PICC Property &
Casualty, a leading property and casualty insurer in the
country. One of three mainland non-life insurance groups
which dominate the market, we see PICC strengthening its
competitive edge through economies of scale, superior risk
pricing ability and solid capital position over the long term. The
stock is relatively defensive in a weak market environment,
providing stability for investors. Management has also indicated
a focus on providing stable dividend payments, making it an
attractive option for income-focused investors. Overall, PICC’s
strong market position, defensive nature, and commitment
to dividends make it a valuable investment in the Chinese
insurance sector.
Investment Manager’s Review continued
Section 2 l Strategic Report 15
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06
How do we pick stocks for the portfolio?
We look for companies that are simple to understand, operate
in growing industries, and have trustworthy management with
strong balance sheets. This means that we conduct thorough
due diligence and prioritise high-quality, dividend-paying
stocks.
In Asia, on the ground presence gives us a key competitive
edge. Our team of over 40 in-house analysts and fund
managers across the region conducts in-depth research and
meets companies regularly. This local presence and extensive
network provide valuable insights and help identify quality
companies that may not be widely covered, especially small
and mid-cap companies.
When evaluating companies, we invest in those which meet
three key criteria at an attractive price and support the
consistent delivery of dividend. We choose companies that
have a strong business model with a sustainable competitive
advantage in an industry that is growing.
They would also have financial strength with good margins,
return on capital and a robust balance sheet; management
with pedigree and a strong track record of execution; and
Environmental, Social and Governance (“ESG”) factors. We view
all these as key to sustainable dividends with reliable earnings.
Regarding ESG, we believe that a comprehensive assessment
of ESG factors, combined with constructive engagement
with companies, leads to better outcomes for our clients.
ESG factors are financially material, and impact corporate
performance.
Understanding ESG risks and opportunities alongside other
financial metrics allows us to make better investment decisions.
Engaging with companies helps foster better practices,
protecting and enhancing the value of our clients’ investments.
Stock
identification
Identifying
companies that tick
all three boxes at
attractive valuations
and supports
continued delivery of
the dividend
Sustainable
dividends
with reliable
earnings
In a
structural
growth area
Quality
businesses
with strong
balance
sheets
16 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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07
How will Asia fare in 2025?
We are cautiously optimistic about the outlook for Asia. While
macroeconomic and geopolitical uncertainties persist,
the region’s prospects are underpinned by solid economic
fundamentals and structural growth trends. Asia’s GDP growth
is forecast to remain above 5% on average, making it the largest
contributor to global GDP for many more years to come. Asia
also boasts a demographic dividend. Many countries are
seeing increases in their working-age populations, leading
to higher productivity and economic growth. This ensures
sustained demand for products and services from quality
companies.
The focus on dividends in the region is also growing. Policy
is another tailwind. Governments across the region are
increasingly focusing on shareholder returns and implementing
policies that support dividend growth, such as the Value Up
programme in South Korea. This is coupled with a strong
emphasis on improving corporate governance, which
ensures that companies are managed more effectively and
transparently.
All the above factors contribute to a more stable and attractive
investment environment, making dividend stocks a compelling
choice for investors seeking reliable income and long-term
growth opportunities.
Importantly, as income investors in Asia, we don’t have to
sacrifice growth. High-quality growth companies such as TSMC,
Tencent, and Power Grid are all paying growing dividends to their
shareholders, with the portfolio’s highest sector weighting in
technology. As mentioned earlier, we are also finding dividend
opportunities in growing sectors such as green energy (Power
Grid), AI (Sunonwealth and Accton Technology) and consumer
products, including retail banking (DBS).
Finally, we believe that our strategy of investing in high-quality,
dividend-paying companies is likely to continue generating
positive results, even in a volatile market environment. The
portfolio is positioned well to capitalise on the income and
growth opportunities in Asia, with its diversified portfolio and
long-term investment approach providing resilience against
market volatility and helping capture growth during strong
market phases.
abrdn Asia Limited
25 March 2025
Investment Manager’s Review continued
Section 2 l Strategic Report 17
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Launched in December 2005, abrdn Asian Income Fund
Limited (the “Company”) is registered with limited liability
in Jersey as a closed-end investment company under the
Companies (Jersey) Law 1991 with registered number 91671.
The Company’s Ordinary shares are listed on the Main Market
of the London Stock Exchange.
Tax Residency
With effect from 1 January 2022 the Company migrated its
tax residency to the UK from Jersey and elected to join the UK’s
investment trust regime.
Investment Objective
To provide investors with a total return primarily through investing
in Asia Pacific securities, including those with an above average
yield. Within its overall investment objective, the Company aims
to grow its dividends over time.
Business Model
The Company aims to attract long-term private and
institutional investors wanting to benefit from the income and
growth potential of Asia’s most compelling companies.
The business of the Company is that of an investment company
and the Directors do not envisage any change in this activity in
the foreseeable future.
Investment Policy
Asset Allocation
The Company invests primarily in the Asia Pacific region
through investment in:
● companies listed on stock exchanges in the Asia Pacific
region;
● Asia Pacific securities, such as global depositary receipts
(GDRs), listed on other international stock exchanges;
● companies listed on other international exchanges that
derive significant revenues or profits from the Asia Pacific
region; and
● debt issued by governments or companies in the Asia
Pacific region or denominated in Asia Pacific currencies.
The Company’s investment policy is flexible, enabling it to invest
in all types of securities, including equity shares, preference
shares, debt, convertible securities, warrants and other equity-
related securities. The Company is free to invest in any market
segments or any countries in the Asia Pacific region. The
Company may use derivatives to enhance income generation.
The Company invests in small, mid and large capitalisation
companies. The Company’s policy is not to acquire securities
that are unquoted or unlisted at the time of investment (with
the exception of securities which are about to be listed or
traded on a stock exchange). However, the Company may
continue to hold securities that cease to be quoted or listed if
the Investment Manager considers this to be appropriate. The
Company may also enter into stock lending contracts for the
purpose of enhancing income returns.
Typically, the portfolio will comprise of between 40 and 70
holdings (but without restricting the Company from holding a
more or less concentrated portfolio in the future).
Risk Diversification
The Company will not invest more than 10%, in aggregate, of
the value of its total assets in investment trusts or investment
companies admitted to the Official List, provided that this
restriction does not apply to investments in any such investment
trusts or investment companies which themselves have stated
investment policies to invest no more than 15% of their total
assets in other investment trusts or investment companies
admitted to the Official List. In any event, the Company will not
invest more than 15% of its total assets in other investment trusts
or investment companies admitted to the Official List.
In addition, the Company will not:
● invest, either directly or indirectly, or lend more than 20% of
its total assets to any single underlying issuer (including the
underlying issuer’s subsidiaries or affiliates), provided that
this restriction does not apply to cash deposits awaiting
investment;
● invest more than 20% of its total assets in other collective
investment undertakings (open-ended or closed-ended);
● expose more than 20% of its total assets to the
creditworthiness or solvency of any one counterparty
(including the counterparty’s subsidiaries or affiliates);
● invest in physical commodities;
● take legal or management control of any of its investee
companies; or
● conduct any significant trading activity.
The Company may invest in derivatives, financial instruments,
money market instruments and currencies for investment
purposes (including the writing of put and call options for
non-speculative purposes to enhance investment returns)
as well as for the purpose of efficient portfolio management
(i.e. for the purpose of reducing, transferring or eliminating
investment risk in the Company’s investments, including any
technique or instrument used to provide protection against
foreign exchange and credit risks). For the avoidance of doubt,
in line with the risk parameters outlined above, any investment
in derivative securities will be covered.
The Investment Manager expects the Company’s assets will
normally be fully invested. However, during periods in which
changes in economic conditions or other factors so warrant,
the Company may reduce its exposure to securities and
increase its position in cash and money market instruments.
Overview of Strategy
18 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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Gearing Policy
The Board is responsible for determining the gearing strategy
for the Company. The Board has restricted the maximum level
of gearing to 25% of net assets although, in normal market
conditions, the Company is unlikely to take out gearing in
excess of 15% of net assets. Gearing is used selectively to
leverage the Company’s portfolio in order to enhance returns
where this is considered appropriate. Borrowings are generally
shorter-term, but the Board may from time to time take
out longer-term borrowings where it is believed to be in the
Company’s best interests to do so. Particular care is taken to
ensure that any bank covenants permit maximum flexibility of
investment policy.
The percentage investment and gearing limits set out under
this sub-heading “Investment Policy” are only applied at the
time that the relevant investment is made or borrowing is
incurred.
In the event of any breach of the Company’s investment policy,
shareholders will be informed of the actions to be taken by the
Investment Manager by an announcement issued through a
Regulatory Information Service or a notice sent to shareholders
at their registered addresses.
The Company may only make material changes to its
investment policy (including the level of gearing set by the
Board) with the approval of shareholders (in the form of an
ordinary resolution). In addition, any changes to the Company’s
investment objective or policy will require the prior approval of
the Financial Conduct Authority as well as prior consent of the
Jersey Financial Services Commission (“JFSC”) to the extent
that the changes materially affect the import of the information
previously supplied in connection with its approval under Jersey
Funds Law or are contrary to the terms of the Jersey Collective
Investment Funds laws.
Duration and Continuation Vote
The Company does not have a fixed life. However, as explained
in the Chairman’s Statement, since the year end the Board has
introduced a continuation vote so that shareholders can decide
whether they wish the Company to continue in its current form
at regular intervals. A continuation vote will first be tabled at the
Company’s Annual General Meeting in 2028, and every three
years thereafter. Shareholders will be asked by simple majority
vote if they wish the Company to continue in its current form.
In the event that the vote should fail, further proposals will be
brought to shareholders regarding the future of the Company.
Comparative Indices
The Company’s portfolio is constructed without reference to
any stock market index. It is likely, therefore, that there will be
periods when the Company’s performance will be quite unlike
that of any index and there can be no assurance that such
divergence will be wholly or even primarily to the Company’s
advantage. The Company compares its performance against
the currency-adjusted MSCI AC Asia Pacific ex Japan Index.
Promoting the Success of the Company
In accordance with corporate governance best practice,
the Board is 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 in the UK under section 172 (1)
of the Companies Act 2006 (the “s172 Statement”) which the
Company has adopted on a voluntary basis. This Statement,
from “Promoting the Success of the Company” to “Board
Composition” on page 20 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, among
other things, 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 (both income and capital) to its
shareholders. The Company’s investment objective is disclosed
on page 17. 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. At its
regular meetings, the Board reviews the culture and manner in
which the Investment Manager operates and receives regular
reporting and feedback from the other key service providers.
Investment companies, such as the Company, are long-term
investment vehicles, with a recommended holding period
of five or more years. Typically, investment companies are
externally managed, have no employees, and are overseen
by an independent non-executive board of directors. The
Company’s Board of Directors sets the investment mandate,
monitors the performance of all service providers (including the
Investment 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.
Overview of Strategy continued
Section 2 l Strategic Report 19
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Shareholder Engagement
The following table describes some of the ways the Board engages with the Company’s shareholders:
Annual General Meeting (“AGM”) The AGM provides an opportunity for the Directors to engage with shareholders,
answer their questions and meet them informally. The next AGM will take place at
10:30 a.m. on 8 May 2025 in London. Shareholders who are unable to attend are
encouraged to lodge their votes by proxy on all the resolutions put forward.
Annual Report The Company publishes 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 The Company issues announcements for all substantive news relating to it. These can
be found on the Company’s website and the London Stock Exchange’s website.
Results Announcements The Company releases 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 Investment Manager publishes monthly factsheets on the Company’s website
including commentary on the portfolio and market performance.
Website The Company’s website contains a range of information and includes a full monthly
portfolio listing of the Company’s investments as well as podcasts by the Investment
Manager. Details of financial results, the investment process and Investment Manager
together with Company announcements and contact details can be found here:
asian-income.co.uk.
Investor Relations The Company subscribes to the Investment Manager’s Promotional and Investor
Relations programme (further details are on page 24).
The Investment Manager
The key service provider for the Company is the Investment
Manager, abrdn Asia Limited. The performance of abrdn
Asia Limited is reviewed in detail at each Board meeting. The
Investment Process is outlined on pages 92 to 94 and further
information about the Investment Manager is given on page 91.
Key Stakeholders - Shareholders
Shareholders are key stakeholders in the Company – they are
looking to the Investment 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 with shareholders at 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 Investment
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 Stakeholders - 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. The
service providers look to the Company to provide them
with a clear understanding of its 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 in
detail at least annually. The aim is to ensure that contractual
arrangements remain competitively priced 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, Investment Manager and other
relevant stakeholders. Reviews include those of the Company’s
Custodian, Company Secretary, Registrar, Broker and Auditor.
Principal Decisions
Pursuant to the Board’s aim of promoting the long-term
success of the Company, the following principal decisions were
taken during the year:
Portfolio/Investment Performance
The Investment Manager’s Review on pages 11 to 16 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.
20 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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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 continues
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.
As disclosed on page 43, during the year, the Board confirmed
that the continuing appointment of the Investment Manager,
on the terms agreed, is in the interests of the shareholders as
a whole.
Gearing
The Company utilises gearing in the form of bank debt with
the aim of enhancing shareholder returns over the longer
term. Since the year end, the Board has renewed the £50
million revolving credit facility that existed during the year. The
loan, with the Bank of Nova Scotia, London Branch, has been
renewed for one year, to February 2026. Under the terms of
the revolving credit facility, the Company has the option to
increase the level of the commitment from £50 million to £70
million at any time, subject to the Lender’s credit approval. The
Board reviews the level of gearing at each Board meeting.
Share Buybacks
During the year, the Company continued to buy back Ordinary
shares opportunistically in order to provide liquidity to the
market and to provide an enhancement to the Company’s net
asset value and benefit all shareholders. 16.9 million Ordinary
shares were bought back during the year to be held in treasury,
representing 10.1% of the shares in issue at the start of the year.
The average discount to NAV of the shares bought back was
12.4% and the buybacks provided an estimated enhancement
of 1.2% to the NAV per share.
Corporate Broker
Following a review of its corporate broking arrangements
during the year, the Board announced the appointment of
Peel Hunt LLP to act as the Company’s sole corporate broker.
The Board considers that it is in shareholders’ interests for
the Company to have a pro-active Broker to manage any
imbalance of supply and demand in the Company’s shares
and to work closely with the Investment Manager in respect
of marketing activities and arranging meetings with the
Company’s larger shareholders.
PR Agent
Recognising the importance of communicating with
shareholders and potential shareholders as a means to
improving demand for the Company’s shares, during the year
the Board appointed an external PR agent to work alongside
the Investment Manager in seeking to raise the profile of the
Company. The Board considers that it is in shareholders’
interests for the Company to engage external parties to help
promote the Company to investors with the aim of this helping
to narrow the discount at which the Company’s shares trade.
Board Composition
During the year, and in accordance with its succession plans,
the Board was pleased to announce the appointment of
Jane Routledge as an independent non-executive Director
of the Company, with effect from 8 May 2024. Ms Routledge
has significant marketing experience which has already
brought benefit to the Board’s deliberations. Ms Routledge’s
biographical details are included on page 39 and she will stand
for election at the forthcoming AGM.
Overview of Strategy continued
Section 2 l Strategic Report 21
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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
Dividend Payments per Ordinary share The Board aims to grow the Company’s dividends over time. Dividends paid over the past 10
years are set out on page 26.
Performance Absolute Performance: The Board monitors the Company’s NAV total return performance in
absolute terms.
Relative Performance: The Board also measures performance against the MSCI AC Asia Pacific
ex Japan Index (currency adjusted) and performance relative to other investment companies
within the Company’s peer group over a range of time periods, taking into consideration the
differing investment policies and objectives employed by those companies.
Share Price Performance: The Board also monitors the price at which the Company’s shares
trade relative to the MSCI AC Asia Pacific ex Japan Index (currency adjusted) on a total
return basis over time.
The Board measures performance over a time horizon of at least five years. The
absolute and relative performance is shown on page 27 and further commentary on the
performance of the Company is contained in the Chairman’s Statement and Investment
Manager’s Review.
Discount/Premium to NAV The discount/premium relative to the NAV per share represented by the share price is closely
monitored by the Board. The Directors aim to operate an active share buyback policy should
the price at which the Ordinary shares trade relative to the NAV per share (including income)
be at a discount of more than 5% in normal market conditions. A graph showing the share
price discount/premium relative to the NAV is shown on page 28.
Ongoing Charges Ratio The Board monitors the Company’s operating costs carefully. Ongoing charges for the year
and previous year are disclosed on page 2.
Gearing The Board ensures that gearing is kept within the Board’s guidelines to the Investment
Manager.
Risk Management
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. The Board has
undertaken a robust review of the principal and emerging
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 Investment Manager, both of which are available on the
Company’s website.
The Board reviews the risks and uncertainties faced by the
Company in the form of a risk matrix and heat map at its Audit
Committee meetings. The Board also has a process to consider
emerging risks and if any of these are deemed to be significant
they are categorised, rated and added to the risk matrix for
closer monitoring.
The Board considers that there are a number of other risks
which, if realised, could have a material adverse effect on
the Company and its financial condition, performance and
prospects. These include the impacts of the conflicts in Ukraine
and the Middle East, as well as continuing tensions between
the US and China. The Board is also conscious of the impact of
higher-than-forecast inflation in the UK and its potential impact
on interest rate expectations, and also the potential impact
on economic growth globally of recently announced US trade
tariffs.
22 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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Risk Management Mitigating Action
Investment strategy & objectives – the setting of an unattractive
strategic proposition to the market and the failure to adapt
to changes in investor demand could lead to the Company
becoming unattractive to investors, a decreased demand for its
shares and a widening discount.
The Board keeps the investment objective and policy as well as
the level of discount and/or premium at which the Company’s
shares trade under review. In particular, there are periodic
strategy discussions where the Board reviews the Investment
Manager’s investment processes, analyses the work of the
Investment Manager’s Promotional and Investor Relations
teams and receives reports on the market from the Broker. In
addition, the Directors are updated at each Board meeting on
the make-up of and any movements in the shareholder register.
As set out in more detail in the Chairman’s Statement on
pages 8 and 9, since the year end the Board has introduced an
enhanced dividend policy which will apply from the start of the
2025 financial year.
Investment portfolio & investment management – the appointment
or continuing appointment of an investment manager with
inadequate resources, skills or experience or which makes
poor investment decisions could result in poor investment
performance, a loss of value for shareholders and a widening
discount.
The Board sets the investment restrictions and guidelines in
which the Investment Manager may operate, and reviews the
Investment Manager’s adherence with these, as well as detailed
performance reports, at each Board meeting. The Investment
Manager is represented at all Board meetings.
The Management Engagement Committee formally reviews
the performance and contractual arrangements with the
Investment Manager on an annual basis.
The financial risks associated with the Company include market
risk, liquidity risk and credit risk, all of which are mitigated in
conjunction with the Investment Manager. Further details are
contained in note 18 to the financial statements.
Marketing & Shareholder Communication - the setting of an
inappropriate marketing strategy or a failure to address
shareholder concerns could result in the Company becoming
unattractive to investors and a widening of the discount.
In addition to marketing activities conducted by the Investment
Manager, the Board has engaged a PR agent to help raise the
Company’s profile.
The Board annually agrees marketing and communications
programmes and budgets with the Investment Manager and
PR agent, and receives updates regularly on these activities.
The Directors are updated at each Board meeting on the
composition of, and any movements in, the shareholder
register. The Chairman responds directly to shareholder
correspondence as required and copies of shareholder letters
are included in Board papers.
Discount Management - failure to manage the discount effectively
could lead to a fall in the share price relative to the NAV per share,
a wider discount compared to the Company’s peers and a loss of
shareholder confidence.
The Board keeps the level of discount and/or premium at which
the Company’s shares trade under review. The Directors aim
to operate an active share buyback policy should the price at
which the Ordinary shares trade relative to the NAV per share
(including income) be at a discount of more than 5% in normal
market conditions.
The Company bought back 16.9 million Ordinary shares during
the year to be held in treasury, representing 10.1% of the shares
in issue at the start of the period, at an average discount of
12.4% and providing an estimated enhancement of 1.2% to the
NAV per share.
Overview of Strategy continued
Section 2 l Strategic Report 23
Job No: 53664 Proof Event: 19 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
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Risk Management Mitigating Action
Regulatory – a failure to comply with relevant laws and regulations
(including those in Jersey and the UK) could result in the
Company being subject to fines, censures or lawsuits or the loss
of investment trust status, causing a fall in investor confidence and
loss of shareholder value.
The Board-appointed Compliance Officer, together with the
Investment Manager’s compliance team, perform compliance
monitoring to ensure the Company’s compliance with
applicable laws and regulatory obligations, and from time to
time the Board employs external advisers to advise on specific
issues.
The Board reviews the Compliance Officer’s and Investment
Manager’s compliance reports at each Board meeting.
Cyber - control failures or the absence of adequate IT security
systems of third party service providers (including the Investment
Manager) could result in losses or damage to the Company.
The Board receives reports from the Investment Manager on
its internal controls and risk management processes, including
on matters relating to cyber security, and receives a bi-annual
presentation from the Investment Manager’s cyber security
team.
The Investment Manager monitors closely the IT security
controls of its outsourced service providers, including those of
the Custodian.
The Management Engagement Committee formally reviews
the performance and contractual arrangements with the
Company’s third party providers on an annual basis.
Operational - control failures and gaps in the systems and
services of third party service providers (including the Investment
Manager) could result in losses or damage to the Company.
The Board receives reports from the Investment Manager on its
internal controls and risk management processes, including on
matters relating to operational resilience.
Written agreements are in place with all third party service
providers. The Investment Manager monitors closely the
control environments and quality of services provided by its
outsourced service providers, including those of the Custodian,
through service level agreements, regular meetings and key
performance indicators.
The Management Engagement Committee formally reviews
the performance and contractual arrangements with the
Company’s third party providers on an annual basis.
Further details of the internal controls which are in place are set
out in the Directors’ Report on pages 45 and 46.
Geo-Political - the impact of current and future geo-political
events could result in losses to the Company.
The Board discusses geo-political developments with the
Investment Manager at each Board meeting. The diversified
nature of the portfolio and a managed level of gearing both
serve to provide a degree of protection in times of market
volatility.
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24 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 19 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
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Promoting the Company
The Board recognises the importance of communicating the
long-term attractions of 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 abrdn Group
on behalf of a number of investment companies under its
management. The Company also supports the abrdn investor
relations programme which involves regional roadshows and
promotional and public relations campaigns. The purpose of
these initiatives 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. The Company’s financial contribution to the
programmes is matched by the abrdn Group.
The Company, through the Investment Manager, has also
commissioned independent paid-for research which has
been undertaken by Edison Investment Research Limited and
a copy of the latest research is available for download from the
Company’s website.
In addition, during the year the Board appointed an external PR
agent to work alongside the Investment Manager in seeking to
raise the profile of the Company.
Environmental, Social and Human Rights Issues
The Company has no employees as management of the assets
is delegated to the Investment Manager. There are therefore no
disclosures to be made in respect of employees.
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 UK’s Modern
Slavery Act 2015 because it has no turnover. The Company is
therefore not required to make a slavery and human trafficking
statement.
Global Greenhouse Gas Emissions
Under Listing Rule 11.4.22(R), the Company, as a closed ended
investment company, is exempt from complying with the Task
Force on Climate-related Financial Disclosures (“TCFD”).
Socially Responsible Investment Policy
The Company supports the UK’s Stewardship Code, and seeks
to play its role in supporting good stewardship of the companies
in which it invests. While the delivery of stewardship activities
has been delegated to the Investment Manager, the Board
acknowledges its role in setting the tone for the effective
delivery of stewardship on the Company’s behalf.
Sustainability Disclosure Requirements (“SDR”)
In November 2023, the Financial Conduct Authority (“FCA”)
published its sustainability disclosure requirements and
investment labels regime (“SDR”) to address concerns
about misleading sustainability claims. SDR includes an
opt-in labelling regime for sustainable investment products,
additional disclosure requirements and restrictions on the use
of sustainability terms. It also establishes anti-greenwashing
(“AGW”) rules. Investment trusts and their managers are in
scope of the SDR. Although investment trusts are not directly
in scope of the AGW requirements, the rules apply indirectly to
them, mostly via obligations imposed on their managers.
Although Environmental, Social and Governance (“ESG”)
factors are taken into consideration by the Investment Manager
as part of its investment analysis, the Company itself does not
have an explicit sustainability objective and so under SDR is
categorised as “Non-labelled” rather than “Labelled” or “Other”.
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
focused upon the following factors:
● the principal risks detailed in the Strategic Report on pages
21 to 23;
● 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 liquidity of the Company’s portfolio;
● the flexibility provided by the £50 million revolving credit
facility that has been renewed since the year end and
which matures in February 2026; and
● the announcement by the Board since the year end of the
introduction of a continuation vote, which will first be tabled
at the Company’s Annual General Meeting in 2028, and
every three years thereafter.
Accordingly, taking into account the Company’s current
position, the fact that its 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 its assessment, the Board is also aware that there are
other matters that could have an impact on the Company’s
prospects or viability in the future, including significant
stock market volatility, and changes in regulation or investor
sentiment.
Overview of Strategy continued
Section 2 l Strategic Report 25
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Future
Many of the non-performance related trends likely to affect
the Company in the future are common across all closed-
end investment companies, such as the attractiveness of
investment companies as investment vehicles, the increased
focus on ESG factors when making investment decisions, the
impact of regulatory changes and the effects of changes to
the pensions and savings market in the UK in recent years.
These factors need to be viewed alongside the outlook for
the Company, both generally and specifically, in relation to
the portfolio. The Board’s view on the general outlook for
the Company can be found in the Chairman’s Statement on
page10 whilst the Investment Manager’s views on the outlook
for the portfolio are included on page 16.
Ian Cadby
Chairman
25 March 2025
28 Esplanade
St Helier
Jersey JE2 3QA
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26 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 19 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
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Dividends and Ten Year Financial Record
Dividends
Rate Ex-dividend date Record date Payment date
First interim 2024 2.55p 25 April 2024 26 April 2024 24 May 2024
Second interim 2024 2.55p 25 July 2024 26 July 2024 23 August 2024
Third interim 2024 2.55p 24 October 2024 25 October 2024 22 November 2024
Fourth interim 2024 6.78p 23 January 2025 24 January 2025 21 February 2025
2024 14.43p
First interim 2023 2.50p 27 April 2023 28 April 2023 23 May 2023
Second interim 2023 2.50p 27 July 2023 28 July 2023 25 August 2023
Third interim 2023 2.50p 26 October 2023 27 October 2023 24 November 2023
Fourth interim 2023 4.25p 25 January 2024 26 January 2024 23 February 2024
2023 11.75p
Ten Year Financial Record
Year to 31 December 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Total revenue (£’000) 21,216 20,947 21,758 21,056 20,996 16,942 20,198 21,841 24,021 22,286
Per Ordinary share (p)
Revenue return 9.11 9.15 9.58 9.25 9.42 7.41 8.95 10.23 11.97 11.35
Total return (18.86) 49.12 33.14 (13.17) 22.29 27.10 25.88 (10.01) 5.18 21.49
Dividends payable 8.50 8.75 9.00 9.15 9.25 9.30 9.50 10.00 11.75 14.43
Net asset value per Ordinary
share (p) 170.58 211.82 235.63 213.96 227.15 245.40 262.76 243.44 238.59 251.42
Share price per
Ordinary share (p) 159.00 194.25 218.00 195.75 214.00 228.50 231.00 215.00 208.00 220.00
Equity shareholders’ funds
(£’000) 329,432 396,028 431,869 382,199 403,403 431,476 450,790 413,447 398,868 377,895
Section 2 l Strategic Report 27
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Total Return over 1, 3 and 5 years (%)
0
5
10
15
20
25
30
35
40
45
Share Price
Net Asset Value
Index
1 Year ended
31 December 2024
3 Years ended
31 December 2024
5 Years ended
31 December 2024
12.0
10.8
12.6
11.0
9.5
6.7
31.0
37.2
24.7
Total Return since launch (%)
250
290
330
370
410
450
Share Price
Net Asset Value
Index
Launch 20 December 2005 to 31 December 2024
385.4
360.2
442.6
+442.6%
NAV Total Return
since Launch
+385.4%
Share Price Total
Return since launch
Performance
The NAV and share price total returns have outperformed the Index over 3 and 5 years,
and since launch in December 2005.
28 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 19 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
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MSCI Country Index Total Returns (in sterling terms) to 31 December 2024
-30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80%
South Korea
Indonesia
New Zealand
Philippines
Hong Kong
Australia
Thailand
Japan
India
China
Malaysia
Singapore
Taiwan
Sri Lanka
Source: Factset
Share Price Premium/(Discount) to Diluted NAV
Five years to 31 December 2024
Source: Morningstar
-15%
-12%
-9%
-6%
-3%
0%
31/12/19 31/12/20 31/12/21 31/12/22 31/12/23 31/12/24
Performance continued
Section 2 l Strategic Report 29
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Geographic breakdown of portfolio as at 31 December 2024
0% 5% 10% 15% 20% 25% 30%
Japan
New Zealand
Indonesia
South Korea
Thailand
India
China
Hong Kong
Singapore
Australia
Taiwan
● 2024
● 2023
Sector breakdown of portfolio as at 31 December 2024
0% 5% 10% 15% 20% 25% 30%
Energy
Consumer Staples
Consumer Discretionary
Utilities
Basic Materials
Industrials
Telecommunications
Real Estate
Financials
Technology
● 2024
● 2023
Geographic/Sector Analysis
30 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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Portfolio
In the Investment Manager’s view, company
fundamentals ultimately drive share prices but are often
valued inefficiently in the shorter term. The Investment
Manager believes that fundamental research is
the key to delivering insights that allows it to exploit
these inefficiencies and identify the best investment
opportunities for the portfolio.
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13.8%
Taiwan Semiconductor
Manufacturing Company (“TSMC”)
The world’s largest pure-play
semiconductor manufacturer, TSMC
provides integrated foundry services
along with a robust balance sheet and
good cash generation that enables
it to keep investing in cutting-edge
technology and innovation.
Analysis of top ten investments
Total assets
40.5%
2024 valuation
£166.2m
Ten Largest Investments
As at 31 December 2024
3.6% 3.1%
Power Grid Corp
The company plans and manages the
national power grid network in India and
is poised to play a key role in the growth
of renewable energy delivery in future as
part of the country’s drive towards green
energy.
*
3.5%
Samsung Electronics
One of the global leaders in the memory
chips segment, and also a major
player in smartphones and display
panels. It has a vertically-integrated
business model and robust balance
sheet, alongside good free cash flow
generation.
DBS Group
The largest Singapore bank by assets, it
is also one of the best managed with a
clear strategy. It is backed by good digital
infrastructure, and operates with focus
on efficiency of returns, as shown in the
distinctively better return on equity than
local peers.
Section 3 l Portfolio 31
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2.6% 2.5%
Media Tek
A semiconductor provider for digital
telecommunications and multimedia
solutions, supported by structural
growth in areas like 5G, AI and advanced
computing, and with management
committing to special dividends over the
next few years.
2.7%
Taiwan Mobile
The second largest telecoms company
by size in Taiwan, Taiwan Mobile has
a dominant mobile business and a
significant stake in Momo, the largest
e-commerce platform in the country.
Ten Largest Investments continued
BHP Group
The Anglo-Australian miner is a proxy for
China and emerging markets’ secular
growth. It offers higher relative returns,
a better social responsibility culture
than its peers and an asset mix that is
better leveraged to the energy sector’s
recovery.
3.0%
2.9%
2.8%
Oversea-Chinese Banking
Corporation
A well-managed Singapore bank with
a strong capital base and impressive
cost-to-income ratio. In addition to its
core banking activities it has sizeable
wealth management and life assurance
divisions.
United Overseas Bank
Singapore’s second-largest bank has
positioned itself as a commercial bank
with a South East Asian franchise, with its
core market in Singapore and a regional
network that is more concentrated in
Malaysia and Thailand.
Mirvac Holding
A diversified property developer that
holds an investment portfolio of income-
yielding Australian assets and a fund
management business managing third
party AUM. The company not only has a
portfolio of high-quality office assets but
also a pipeline of residential projects that
is well suited to address the undersupply
of housing in Australia.
32 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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List of Investments
As at 31 December 2024
Company Country
Valuation 2024
£’000
Total assets
A
%
Valuation 2023
B
£’000
Taiwan Semiconductor Manufacturing Company Taiwan 56,804 13.8 35,371
Power Grid Corp India 14,688 3.6 12,056
DBS Group Singapore 14,512 3.5 15,260
Samsung Electronics (Pref) South Korea 12,650 3.1 28,170
Oversea-Chinese Banking Corporation Singapore 12,399 3.0 14,088
Mirvac Group Australia 12,012 2.9 -
United Overseas Bank Singapore 11,523 2.8 10,807
Taiwan Mobile Taiwan 10,940 2.7 9,963
BHP Group Australia 10,580 2.6 19,340
MediaTek Taiwan 10,097 2.5 13,062
Top ten investments 166,205 40.5
China Construction Bank
China
9,970 2.4 -
Tencent Holdings Hong Kong 9,460 2.3 4,088
Accton Technology Taiwan 8,593 2.1 7,365
Commonwealth Bank of Australia Australia 8,120 2.0 6,396
Telstra Corporation Australia 8,100 2.0 4,207
Hon Hai Precision Industry Taiwan 7,488 1.8 4,442
AIA Group Hong Kong 7,390 1.8 8,730
Rio Tinto
C
Australia 7,250 1.8 10,516
Midea Group ‘A’
D
China 7,140 1.7 5,252
Charter Hall Long Wale REIT Australia 6,995 1.7 7,153
Top twenty investments 246,711 60.1
Sunonwealth Electric Machine Taiwan 6,931 1.7 7,603
Tisco Financial Group Foreign Thailand 6,661 1.6 7,055
Tata Consultancy Services India 6,647 1.6 4,979
Bank Mandiri Indonesia 6,631 1.6 4,251
Singapore Technologies Engineering Singapore 6,399 1.6 6,582
SITC International Holdings Hong Kong 6,130 1.5 4,662
Capitaland India Trust Singapore 6,077 1.5 6,129
Hong Kong Exchanges & Clearing Hong Kong 6,042 1.5 5,465
Singapore Telecommunications Singapore 5,935 1.5 4,333
Infosys India 5,884 1.4 6,442
Top thirty investments 310,048 75.6
Section 3 l Portfolio 33
34 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
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As at 31 December 2024
Company Country
Valuation 2024
£’000
Total assets
A
%
Valuation 2023
B
£’000
Venture Corporation Singapore 5,819 1.4 11,147
Dah Sing Financial Holding Hong Kong 5,632 1.4 3,134
Region RE Australia 5,582 1.4 6,569
PICC Property & Casualty ‘H’ China 5,564 1.4 -
National Australia Bank Australia 5,492 1.3 4,903
Centuria Industries REIT Australia 5,133 1.3 9,219
China Resources Land China 4,761 1.2 8,704
Inner Mongolia Yili Industrial ‘A’ China 4,398 1.1 -
NZX New Zealand 4,241 1.0 4,278
Taiwan Union Technology Taiwan 4,165 1.0 3,768
Top forty investments 360,835 88.1
Transurban Group Australia 4,134 1.0 -
Capitaland Investment Singapore 4,049 1.0 4,947
Amada Co Japan 4,014 1.0 4,197
Axtra Future City Thailand 3,849 0.9 -
Fuyao Glass Industry ‘A’ China 3,393 0.8 -
Autohome Inc - ADR Hong Kong 3,393 0.8 3,609
AKR Corporindo Indonesia 3,283 0.8 4,119
GlobalWafers Taiwan 3,229 0.8 5,221
Hang Lung Properties Hong Kong 2,630 0.6 4,479
Advanced Info Service Thailand 2,212 0.5 -
Top fifty investments 395,021 96.3
Land & Houses Foreign Thailand 2,053 0.5 3,263
China Resources Gas China 2,004 0.5 1,627
Spark New Zealand New Zealand 1,900 0.5 8,188
Midea Group
E
China 1,794 0.4 -
Convenience Retail Asia Hong Kong 1,694 0.4 2,746
SK Hynix South Korea 1,575 0.4 -
Top fifty-six investments 406,041 99.0
G3 Exploration
F
China - 0.0 –
Total value of investments 406,041 99.0
Net current assets
G
4,276 1.00
Total assets
A
410,317 100.0
A
Net assets excluding borrowings.
B
Purchases and/or sales effected during the year may result in 2024 and 2023 values not being directly comparable.
C
Incorporated in and listing held in United Kingdom.
D
Shares denominated in Chinese Renminbi.
E
Shares denominated in Hong Kong Dollars.
F
Corporate bonds.
G
Excludes bank loans of £32,422,000 and includes deferred tax liability on Indian capital gains of £1,706,000.
List of Investments continued
Section 3 l Portfolio 35
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Investment Case Studies
DBS Group
With the help of Artificial Intelligence (“AI”), a customer of
Singapore bank DBS will receive an alert from the bank if an
unusual card transaction is made at a Point-of-Sale (“POS”)
terminal and he/she is not near the POS terminal.
This example illustrates how DBS, which started its Digital
Transformation (“DX”) a decade ago, is leading its peers in
innovative first-in-market use cases such as location data to
safeguard the assets of its customers.
DBS has created more than 100 AI and machine learning
algorithms that analyse 15,000 customer data points to
generate seven types of “nudges” (or hyper-personalised and
actionable insights converted from data), such as the location
nudge mentioned above. Other nudges include offering
personalised product recommendations and celebrating its
customers’ milestones.
Today, over 3.5 million retail and wealth customers of DBS are
engaging with 30 million nudges every month in Singapore
alone.
This DX journey has involved a complete overhaul of its
technology stack towards the cloud across its front-end all the
way to its back-end operations. As a result, over 90% of DBS’s
applications now operate in a cloud-ready environment and
nearly 99% of its applications are hosted on the cloud rather
than physical servers.
When did we first
invest?
Where is the
company head
office?
Holding at
year end:
2013 Singapore 3.5%
Supported by good digital infrastructure, DBS’s financial
performance has been consistently strong. The bank’s Return
on Equity (“ROE”) remains superior to its domestic peers. DBS
also enjoys a low cost of funding owing to its strong deposit
franchise in Singapore, with high Current Account and Savings
Account (“CASA”) ratios.
Meanwhile, DBS’s management is paying more heed towards
shareholder returns. It has announced a S$3 billion (£1.8 billion)
share buyback programme that will stretch over the next one
to two years. DBS is also raising its dividends, committing to an
annual dividend increase of 24 Cents per share over the next
three to five years. Its current dividend yield is around 5%.
The bank also boasts solid ESG credentials, with an ESG rating
of AA (the second highest) from index provider MSCI, an
endorsement of its efforts in sustainability and governance.
Among its efforts, it aims to have net zero financed emissions
by 2050 and has committed to allocating up to S$1 billion to
improve the lives of the low income and underprivileged over
the next 10 years.
36 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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Midea Group
In 1968, He Xiangjian led 23 farmers in the city of Shunde in
Foshan, Guangdong to start a business producing plastic
bottle caps with only CNY 5,000. This small set-up was the
predecessor of Midea Group, which started selling home
appliances in 1980 under its house brand “美的”, translated as
“Midea”.
Subsequently in 2021, Midea streamlined itself into a 1+3+N
structure with five high-growth pillars: Smart Home (1), Electro-
Mechanical, Building Technologies, Robotics & Automation (3,
encompassing the core tech units) and Digital Innovation (N for
innovative businesses).
Today, Midea is one of the world’s largest home appliance
manufacturing companies, generating an annual revenue of
CNY 373.7 billion (£42 billion) in 2023.
With an eye on expanding its global footprint, Midea recently
completed its listing in Hong Kong in September 2024. This
means that it has achieved a key milestone of being listed in
both the onshore China and offshore Hong Kong markets.
Midea’s overseas business is growing faster than its domestic
segment, supported by its Original Equipment Manufacturer
(“OEM”) business as well as bolt-on acquisitions abroad, such as
that of leading German industrial robot maker Kuka and Italian
air conditioner maker Clivet, in 2015 and 2016 respectively.
At home in China, Midea is the biggest white goods maker,
with a good reputation and track record. More recently, it
is benefiting from the government’s efforts to support the
economy, such as a scheme encouraging consumers to trade
in old appliances for new ones.
All this is underpinned by a strong commitment to innovation,
with Midea investing 3.5% of its profits in Research and
Development (“R&D”). The group has over 30 R&D facilities
worldwide. Its R&D staff numbers are over 10,000, out of a global
workforce exceeding 190,000 employees. It has secured over
35,000 patents and filed 80,000 granted patents to date.
Aside from its growth prospects, Midea also offers an appealing
dividend income story. Its management has committed to
returning capital to shareholders via dividends, reflecting its
confidence in the company’s financial health and prospects.
This also reflects the quality of Midea’s management, who
have steered the company well and executed its strategy
consistently.
On the ESG front, Midea is also making strides. It has invested
over RMB 132 million in energy saving and emission reduction,
promoting 1,875 energy-saving projects. Among its factories
in China, 28 have been awarded the National Green Factory
Certification. The company has joined the United Nations
Global Compact, committing to fulfilling the 10 principles of the
Global Compact based on the United Nations Convention.
Investment Case Studies continued
When did we first
invest?
Where is their head
office?
Holding at
year end:
2020 Guangdong,
China
2.1%*
* comprising shares denominated in Chinese Renminbi (1.7%) and shares
denominated in Hong Kong Dollars (0.4%).
Section 4 l Governance 37
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The Board is committed to high standards
of corporate governance and applies the
principles identified in the UK Corporate
Governance Code and the AIC Code of
Corporate Governance.
Governance
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38 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 18 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
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Board of Directors
Ian Cadby is a Jersey resident. He was formerly an investment
manager, with over 35 years’ experience within the asset
management industry, including six years in Asia where he ran
multi asset portfolios. Ian was the Founder and Group CEO
of Ermitage Limited, an investment management group, and
has extensive experience in derivative trading, board strategy,
corporate governance and risk management. He is a Chartered
Fellow of the Chartered Institute of Securities and Investments
(“CISI”) and a Fellow and Chartered Director of the Institute of
Directors (“IoD”). He is also Senior Independent Director of CQS
New City High Yield Fund Limited.
Appointed a Director on 11 May 2016
and Chairman on 1 January 2022
Ian Cadby
Independent
Non-Executive Chairman
Mark Florance is a Singapore Permanent Resident with over 30
years’ experience in corporate finance advisory, mergers and
acquisitions, equity capital markets, debt capital markets and
debt restructuring in Asia, primarily at NM Rothschild & Sons
where he was the vice-chairman for South East Asia and Co-
head of Asia. Mark is Chairman of Butterfield Trust (Asia) Limited
and is an independent member of the investment committee
of renewable energy fund, Climate Investor One and water
fund, Climate Investor Two. He has a Bachelor of Commerce
(Accounting) and a Bachelor of Laws from the University of New
South Wales. He also has a Diploma from the Securities Institute
of Australia.
Appointed a Director on 10 May 2017
Mark Florance
Senior Independent
Non-Executive Director and
Audit Committee Chairman
Robert Kirkby is a former advisory partner at KPMG Channel
Islands and a fellow of the Institute of Chartered Accountants
with a background as a business leader. He is a Jersey resident
but has particular experience of, and a continued interest
in, China and Hong Kong. Robert has a number of non-
executive appointments including being Chairman of the audit
committees of Digital Jersey Limited and Stonehage Fleming
Family & Partners Limited. He is also Chairman of CVC Income
& Growth Limited.
Appointed a Director on 1 November 2021
Robert Kirkby
Independent
Non-Executive Director
Nicky McCabe was formerly Head of Product and Investment
Trusts at Fidelity International, with experience across the full
spectrum of asset management in back office operations,
the investment team, proprietary investment, distribution and
product management. Nicky is currently a non-executive
director of CT UK Capital and Income Investment Trust PLC,
Artemis Investment Management Limited and EFG Asset
Management (UK) Limited.
Appointed a Director on 16 May 2018
Nicky McCabe
Independent
Non-Executive Director
Section 4 l Governance 39
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Board of Directors continued
Krystyna Nowak’s previous roles have included being a Senior
Managing Director of Teneo’s People Advisory team, a former
partner of Ridgeway Partners and former Managing Director
of the Board Practice at Norman Broadbent. Krystyna studied
at Oxford University, before joining Citibank, originally in London
followed by nine years in Hong Kong and Singapore. She is also a
director of Record PLC.
Appointed a Director on 7 May 2015
Krystyna Nowak
Independent
Non-Executive Director
Jane Routledge has significant marketing experience with a
long career in the investment management sector. She has held
a number of senior marketing positions including at Schroders,
Invesco, Hermes and Seven Investment Management. Jane
is currently a non-executive director of M&G Credit Income
Investment Trust plc and Brown Advisory US Smaller Companies
plc.
Appointed a Director on 8 May 2024
Jane Routledge
Independent
Non-Executive Director
40 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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Introduction
The Directors present their Report and the audited financial
statements for the year ended 31 December 2024.
Results and Dividends
The financial statements for the year ended 31 December
2024 are contained on pages 59 to 87. The Company’s dividend
policy is to pay interim dividends on a quarterly basis and for the
year to 31 December 2024 dividends were paid on 24 May, 23
August and 22 November 2024 and 21 February 2025.
Status
The Company is registered with limited liability in Jersey as
a closed-end investment company under the Companies
(Jersey) Law 1991 with registered number 91671 and regulated
as an Alternative Investment Fund by the Jersey Financial
Services Commission. In addition, the Company constitutes and
is regulated as a collective investment fund under the Collective
Investment Funds (Jersey) Law 1988 and is an Alternative
Investment Fund (within the meaning of Regulation 3 of the
Alternative Investment Fund Regulations). The Company has
no employees and makes no political donations. The Ordinary
shares are admitted to the Official List and are traded on the
London Stock Exchange’s Main Market.
With effect from 1 January 2022 the Company applied to HM
Revenue & Customs to become 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 January 2022. The Directors are of the opinion that
the Company has conducted its affairs for the period from
1January 2022 so as to enable it to comply with the ongoing
requirements for investment trust status.
The Company is a member of the Association of Investment
Companies (“AIC”).
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, Issuance and Buybacks
The Company’s capital structure is summarised in note 15
to the financial statements. At 31 December 2024, there
were 150,306,492 fully paid Ordinary shares of no par value
(2023– 167,178,707) Ordinary shares in issue. At the year
end there were 44,626,897 Ordinary shares held in treasury
(2023–27,754,682).
During the year 16,872,215 Ordinary shares were purchased
in the market for treasury (2023 - 2,653,694) and no Ordinary
shares were issued or sold from treasury.
Subsequent to the year end 3,927, 318 Ordinary shares have
been purchased in the market at a discount for treasury.
Voting Rights
Each Ordinary share holds one voting right and shareholders
are entitled to vote on all resolutions which are proposed at
general meetings of the Company. The Ordinary shares,
excluding treasury shares, carry a right to receive dividends.
On a winding up or other return of capital, after meeting the
liabilities of the Company, the surplus assets will be paid to
Ordinary shareholders in proportion to their shareholdings.
There are no restrictions on the transfer of Ordinary shares in
the Company other than certain restrictions which may be
applied from time to time by law.
Borrowings
At the year end the Company had a £50 million loan with the
Bank of Nova Scotia, London Branch. Since the year end, the
facility has been renewed for a year, to February 2026. Under
the terms of the revolving credit facility, the Company has
the option to increase the level of the commitment from £50
million to £70 million at any time, subject to the Lender’s credit
approval.
Management and Company Secretarial Arrangements
abrdn Asia Limited (a Singapore-based wholly-owned
subsidiary of abrdn plc) has been appointed by the Company
to provide portfolio and risk management services and to
act as the Company’s non-EU ‘alternative investment fund
manager’ for the purposes of the Alternative Investment Fund
Managers Directive 2011/61/EU. abrdn Investments Limited
(a UK-based wholly owned subsidiary of abrdn plc), which is
authorised and regulated by the Financial Conduct Authority,
has been appointed to provide general administrative and
advisory services, fund accounting, secretarial, marketing and
promotional activities as well as group risk and compliance
reporting to the Company.
In addition, the Company has appointed JTC Fund Solutions
(Jersey) Limited (“JTC”) under an administration agreement
between JTC and the Company to provide certain
Jersey based services including, but not limited to, Jersey
administration services and compliance with applicable
Jersey codes (including provision of a compliance officer,
money laundering reporting officer and money laundering
compliance officer). JTC also provides a registered office and
company secretarial services. The administration fee charged
by JTC is met by the abrdn Group.
Termination of the management agreement is subject to
six months’ notice. Further details of the management fee
arrangements are contained in notes 5 and 20 to the financial
statements.
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 18 to the financial statements.
Directors’ Report
Section 4 l Governance 41
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Substantial Interests
Information provided to the Company by major shareholders
pursuant to the FCA’s Disclosure Guidance and Transparency
Rules are published by the Company via a Regulatory
Information Service.
The table below sets out the interests in 3% or more of the
issued share capital of the Company, of which the Board was
aware as of 31 December 2024.
Shareholder
No of Shares
Held
%
Held
Interactive Investor 16,909,912 11.2
City of London Investment
Management 14,599,937 9.7
Hargreaves Lansdown 13,444,247 8.9
Rathbones 11,143,622 7.4
1607 Capital Partners 10,103,531 6.7
AJ Bell 5,674,139 3.8
Charles Stanley 5,563,029 3.7
Allspring Global Investments 5,293,555 3.5
Since the year end, 1607 Capital Partners has notified the
Company of a reduced holding of 7,211,181 Ordinary shares
(4.9%). There have been no other changes notified to the
Company since the year end.
Directors
The Board currently consists of six non-executive Directors,
Robert Kirkby, Mark Florance, Ian Cadby, Nicky McCabe,
Jane Routledge and Krystyna Nowak. Jane Routledge was
appointed on 8 May 2024. The other Directors each held office
throughout the year.
Governance
The names and biographies of each of the Directors are
disclosed on pages 38 and 39 indicating their range of
experience. The AIC’s Code of Corporate Governance
recommends that all Directors should be subject to annual
re-election by shareholders. Accordingly, all members of the
Board, other than Krystyna Nowak, will retire at the Annual
General Meeting (“AGM”) and will offer themselves for election/
re-election. Having served as a Director for more than nine
years, Krystyna Nowakwill retire from the Board at the AGM.
Details of each continuing Director’s contribution to the
long-term success of the Company are provided on page 44.
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. The Board has reviewed each of the proposed
elections/re-elections and concluded that each of the
Directors has the requisite high level and range of business
and financial experience and recommends their election/re-
election at the forthcoming AGM.
In common with most investment companies, the Company
has no employees. Directors’ & Officers’ liability insurance cover
has been maintained throughout the year at the expense of the
Company.
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 it 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, including diversity of thought, location and
background. 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.
In view of its size, the Board will continue to ensure that all
appointments are made on the basis of merit against the
specification prepared for each appointment. In doing so, the
Board will take account of the targets set out in the FCA’s Listing
Rules, which are set out below.
The Board has resolved that the Company’s year-end date is
the most appropriate date for disclosure purposes. In addition
to the information contained below, of the six Directors at
31December 2024, one is based in Singapore, two are based in
Jersey and three are based in the UK.
Directors’ Report continued
42 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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Directors’ Report continued
Table for reporting on gender as at 31 December 2024
Number of Board
members
Percentage of the
Board
Number of senior
positions on the Board
(note 1)
Men 3 50% 5
Women 3 50% –
Not specified/prefer not to say – – –
Table for reporting on ethnic background as at 31 December 2024
Number of Board
members
Percentage of the
Board
Number of senior
positions on the Board
(note 1)
White British or other White
(including minority-white groups) 6 100% 5
Minority ethnic - - –
Not specified/prefer not to say – – –
Notes:
1.
The Company is externally managed and does not have any executive staff. Specifically, it does not have either a CEO or CFO. The Board considers that the
roles of Chairman of the Board, Senior Independent Director, and the chairs of the Audit Committee, Management Engagement Committee and Nomination
and Remuneration Committee are Senior Board Positions.
As shown in the above table, the Company has not met the target set out in LR 6.6.6R (9)(a)(iii) that at least one Director is from
a minority ethnic background. The Board short listed and interviewed ethnically diverse candidates as part of its most recent
recruitment process and will continue to take ethnic diversity into account for future appointments. At the year end the Company
also did not meet the target set out in LR 6.6.6R (9)(a)(ii) that at least one Senior Board Position is held by a woman. However, since
the year end, Ms Routledge has been appointed as Chair of the Nomination and Remuneration Committee and the Company now
meets the Listing Rule target that at least one Senior Board Position is held by a woman.
Policy on Tenure
In normal circumstances, it is the Board’s expectation that
Directors will not serve beyond the Annual General Meeting
following the ninth anniversary of their appointment. However,
the Board takes the view that independence of individual
Directors is not necessarily compromised by length of tenure
on the Board and that continuity and experience can add
significantly to the Board’s strength. The Board believes that
recommendation for re-election should be on an individual
basis following a rigorous review which assesses the
contribution made by the Director concerned, but also taking
into account the need for managed succession and diversity.
It is the Board’s policy that the Chairman of the Board will
not serve as a Director beyond the Annual General Meeting
following the ninth anniversary of his or her appointment to
the Board. However, this may be extended in exceptional
circumstances or to facilitate effective succession planning
and the development of a diverse Board. In such a situation
thereasons for the extension will be fully explained to
shareholders and a timetable for the departure of the
Chairman clearly set out.
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.
Section 4 l Governance 43
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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.
The UK Code includes provisions relating to:
● interaction with the workforce (provisions 2, 5 and 6);
● the role and responsibility of the chief executive (provisions
9 and 14);
● previous experience of the chairman of a remuneration
committee (provision 32); and
● executive directors’ remuneration (provisions 33 and 36 to
40).
The Board considers that these provisions 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 these
provisions.
Full details of the Company’s compliance with the AIC Code of
Corporate Governance can be found on its website.
Directors attended the following scheduled Board and
Committee meetings during the year ended 31 December
2024 (with their eligibility to attend the relevant meeting in
brackets):
Board Audit MEC Nom
Total Meetings 4 2 1 1
I Cadby
A
4 (4) 2 (2) 1 (1) 1 (1)
M Florance 4 (4) 2 (2) 1 (1) 1 (1)
R Kirkby 4 (4) 2 (2) 1 (1) 1 (1)
N McCabe 4 (4) 2 (2) 1 (1) 1 (1)
K Nowak 4 (4) 2 (2) 1 (1) 1 (1)
J Routledge
B
3 (3) 1 (1) – (–) – (–)
A
Mr Cadby is not a member of the Audit Committee but attended both
meetings by invitation.
B
Appointed a Director on 8 May 2024.
In addition to the above meetings there were a number of ad
hoc Board Meetings held during the year to review and approve
dividends and other operational matters.
The Board has a schedule of matters reserved to it for decision
and the requirement for Board approval on these matters is
communicated directly to the senior staff of the Investment
Manager. Such matters include strategy, gearing, treasury
and dividend policy. Full and timely information is provided to
the Board to enable the Directors to function effectively and
to discharge their responsibilities. The Board also reviews the
financial statements, performance and revenue budgets.
The Board is conscious of the FRC’s updates to the UK
Corporate Governance Code, and the corresponding updates
to the AIC Code, some of which will apply to the Company’s
financial year beginning on 1 January 2025. It is the Board’s
intention that the Company will comply with all relevant
provisions of the new codes.
Board Committees
The Directors have appointed a number of Committees as set
out below. Copies of their terms of reference, which clearly
define the responsibilities and duties of each Committee, are
available on the Company’s website. The terms of reference of
each of the Committees are reviewed and re-assessed by the
Board for their adequacy on an ongoing basis.
Audit Committee
The Audit Committee’s Report is included on pages 48 and 49
of this Annual Report.
Management Engagement Committee
The Management Engagement Committee comprises all
of the Directors. The Chairman of the Company serves as
Chairman of the Management Engagement Committee.
The Committee reviews the performance of the Investment
Manager and its compliance with the terms of the
management and secretarial agreement. The Committee also
reviews the performance and contractual arrangements with
the Company’s other main third party providers. The terms
and conditions of the Investment Manager and Investment
Manager’s appointment, including an evaluation of fees, are
reviewed by the Committee on an annual basis.
Through the work of the Management Engagement
Committee, the Board remains satisfied with the investment
skills of the abrdn Group, that its investment screening
processes are thorough and robust and that it employs a well-
resourced team of skilled and experienced fund managers.
In addition, the Board is satisfied that the abrdn Group has the
administrative and promotional skills required for the effective
operation and administration of the Company. Accordingly,
the Board believes that the continuing appointment of the
Investment Manager on the terms agreed is in the interests of
shareholders as a whole.
Nomination and Remuneration Committee
All appointments to the Board of Directors are considered
by the Nomination and Remuneration Committee which
comprises the entire Board. During the year, the Committee
was chaired by Mr Cadby, but Ms Routledge has been
appointed as Chair of the Committee since the year end. The
Committee reviews the effectiveness of the Board, succession
planning, Board appointments, appraisals and training, and
determines the Directors’ remuneration policy and level of
remuneration, including for the Chairman. The Committee
also considers the need to appoint an external remuneration
consultant. The Company’s policy on Directors’ remuneration,
44 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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Directors’ Report continued
together with details of the remuneration of each Director, is set
out in the Directors’ Remuneration Report on pages 50 to 52.
Possible new Directors are identified against the requirements
of the Company’s business and the need to have a balanced
Board. Every Director is entitled to receive appropriate training
as deemed necessary. A Director appointed during the year
is required, under the provisions of the Company’s Articles
of Association, to retire and seek election by shareholders at
the next AGM. Notwithstanding the Articles of Association
requirement that one third of the Directors retire by rotation
at each AGM, each Director retires annually and submits
themselves for re-election at the AGM.
In relation to the appointment of Jane Routledge as an
independent non-executive Director on 8 May 2024, the
Committee engaged an independent firm of search
consultants, Nurole Limited.
During the year, the Nomination and Remuneration Committee
undertook an annual appraisal of the Chairman of the Board,
individual Directors and the performance of Committees and
the Board as a whole. This process involved the completion
of questionnaires by each Director and follow-on discussions
between the Chairman and each Director. The appraisal of the
Chairman was undertaken by the Senior Independent Director.
The results of the process were discussed by the Board with
appropriate action points made.
Following this process, the Board concluded that it continues to
operate well and effectively and is focussing on the right issues
in its work to promote the success of the Company and that
each Director makes a significant contribution to the Board.
In relation to the contributions by individual Directors standing
for election/re-election at the AGM, Mr Cadby was appointed
to the Board in 2016 and as Chairman on 1 January 2022.
He has provided the Company with expert insight into the
management of derivatives as well as the benefit of his
international fund management experience. Mr Florance
was appointed to the Board in 2017, assumed the role of
Audit Committee Chairman in 2018 and became the Senior
Independent Director on 8 May 2024. He has chaired the Audit
Committee expertly and being resident in Asia is able to bring
direct experience of the investment region to the Board. Ms
McCabe was appointed to the Board in 2018 and has brought
detailed investment trust insight to the Board from her previous
industry experience. Mr Kirkby was appointed to the Board
in 2021 and has brought significant business experience and
knowledge of Jersey regulations to the Board. Ms Routledge
was appointed to the Board on 8 May 2024 and has brought
significant marketing experience and knowledge of the
financial services industry to the Board.
Accordingly, the Board has no hesitation in recommending to
shareholders the election/re-election of each of the above
Directors at the forthcoming AGM.
The Role of the Chairman and Senior Independent
Director
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 Senior Independent Director acts as a sounding board for
the Chairman and acts as an intermediary for other Directors,
when necessary. Working closely with the Nomination and
Remuneration Committee, the Senior Independent Director
takes responsibility for an orderly succession process for the
Chairman, and leads the annual appraisal of the Chairman’s
performance. The Senior Independent Director is also available
to shareholders to discuss any concerns they may have.
Management of Conflicts of Interests
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 are required to disclose other positions
held and all other conflict situations that may need to be
authorised either in relation to the Director concerned or his or
her 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. No Directors had any interest in contracts with the
Company during the period or subsequently.
The Company has a policy of conducting its business in
an honest and ethical manner. The Company takes a zero
tolerance approach to bribery and corruption and has
procedures in place that are proportionate to the Company’s
circumstances to prevent them. The abrdn Group also adopts
a group-wide zero tolerance approach and has its own
detailed policy and procedures in place to prevent bribery
and corruption. Copies of the abrdn Group’s anti-bribery and
corruption policies are available on its website: abrdn.com.
Going Concern
The Directors have undertaken a robust review of the
Company’s viability (refer to statement on page 24) and
ability to continue as a going concern. The Company’s assets
Section 4 l Governance 45
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consist primarily of a diverse portfolio of listed equity shares
which in most circumstances are realisable within a very short
timescale.
The Directors have reviewed forecasts detailing revenue and
liabilities, have set limits for borrowing and reviewed compliance
with banking covenants, including the headroom available.
Since the year end, the Company has renewed its £50 million
revolving credit facility for one year with the Bank of Nova
Scotia, London Branch, its existing lender. In the event that it
is not possible to renew the loan in February 2026, the Board
considers that there is sufficient portfolio liquidity to enable the
loan to be repaid.
Having taken these factors into account, the Directors believe
that the Company has adequate financial resources to
continue in operational existence for the foreseeable future
and at least 12 months from the date of this Annual Report.
Accordingly, the Directors continue to adopt the going concern
basis in preparing these financial statements.
Accountability and Audit
Each Director confirms that, so far as he or she is aware, there is
no relevant audit information of which the Company’s Auditor is
unaware, and he or she has taken all the steps that they ought
to have taken as a Director in order to make themselves aware
of any relevant audit information and to establish that the
Company’s Auditor is aware of that information.
Independent Auditor
Shareholders approved the re-appointment of KPMG Channel
Islands Limited as independent Auditor at the AGM held on
8 May 2024 and a resolution to re-appoint KPMG Channel
Islands Limited as the Company’s Auditor and to authorise
the Directors to fix the Auditor’s remuneration will be put to
shareholders at the AGM to be held on 8 May 2025.
Principal Risks and Internal Control
The Principal Risks and Uncertainties facing the Company are
detailed on pages 21 to 23. The Board of Directors is ultimately
responsible for the Company’s system of internal control and
for reviewing its effectiveness.
Following the Financial Reporting Council’s publication of
“Guidance on Risk Management, Internal Controls and Related
Financial and Business Reporting” (the “FRC Guidance”),
the Directors confirm that there is an ongoing process for
identifying, evaluating and managing the principal risks faced
by the Company. This process has been in place for the full year
under review and up to the date of approval of the financial
statements, is regularly reviewed by the Board and accords
with the FRC Guidance.
The design, implementation and maintenance of controls
and procedures to safeguard the assets of the Company and
to manage its affairs properly extends to operational and
compliance controls and risk management. The Board has
prepared its own risk register which identifies potential risks as
summarised on page 21. The Board considers the potential
cause and possible impact of these risks as well as reviewing
the controls in place to mitigate these potential risks. A risk
is rated by having a likelihood and an impact rating and the
residual risk is plotted on a “heat map” and is reviewed regularly.
The Board has reviewed the effectiveness of the system of
internal control and, in particular, it has reviewed the process
for identifying and evaluating the principal risks faced by the
Company and the policies and procedures by which these risks
are managed.
The Directors have delegated the investment management
of the Company’s assets to the Investment Manager within
overall guidelines. 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 Investment
Manager’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
Investment Manager’s activities. Risk is considered in the
context of the FRC Guidance and includes financial, regulatory,
market, operational and reputational risk. This helps the internal
audit risk assessment model identify those functions for review.
Any relevant 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 key components designed to provide effective internal
control for the year under review and up to the date of this
Report are outlined below:
● the Investment Manager prepares forecasts and
management accounts which allow the Board to assess
the Company’s activities and review its investment
performance;
● the Board and Investment Manager have agreed clearly
defined investment criteria;
● there are specified levels of authority and exposure limits.
Reports on these issues, including performance statistics
and investment valuations, are regularly submitted to the
Board. The Investment Manager’s investment process and
financial analysis of the companies concerned include
detailed appraisal and due diligence;
● written agreements are in place which specifically define
the roles and responsibilities of the Investment Manager
and other third-party service providers and the Audit
Committee reviews, where relevant, ISAE3402 Reports,
a global assurance standard for reporting on internal
controls for service organisations. The Board has reviewed
the exceptions arising from abrdn Investments Limited’s
ISAE3402 for the year to 30 September 2024, none of which
were judged to be of direct relevance to the Company;
46 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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Directors’ Report continued
● the Board has considered the need for an internal audit
function but, because of the compliance and internal
control systems in place within the abrdn Group, has
decided to place reliance on the abrdn Group’s systems
and internal audit procedures; and
● twice a year, at its meetings, the Audit Committee carries
out an assessment of internal controls by considering
documentation from the Investment Manager, including
its internal audit and compliance functions and taking
account of events since the relevant period end.
In addition, the Investment Manager ensures that clearly
documented contractual arrangements exist in respect
of any activities that have been delegated to external
professional organisations. The Board meets periodically with
representatives from the Custodian, BNP Paribas SA, London
Branch, and receives control reports covering its activities.
Representatives from the Investment Manager’s internal audit
department report six monthly to the Audit Committee of the
Company and have direct access to the Directors at any time.
The 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 provide
reasonable but not absolute assurance against material
misstatement or loss.
The UK Stewardship Code and Proxy Voting
Responsibility for actively monitoring the activities of portfolio
companies has been delegated by the Board to the Investment
Manager.
abrdn plc is a 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 and the long-term investment return
to shareholders.
Relations with Shareholders
The Directors place a great deal of importance on
communication with shareholders. The Chairman welcomes
feedback from all shareholders and meets periodically
with the largest shareholders to discuss the Company. The
Annual Report and financial statements are available on
the Company’s website and are 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 its website.
The Notice of the AGM included within the Annual Report and
financial statements is ordinarily sent out at least 20 working
days in advance of the meeting. All shareholders have the
opportunity to put questions to the Board or Investment
Manager, either formally at the Company’s AGM or informally
following the meeting.
The Company Secretary is available to answer general
shareholder queries at any time throughout the year. The
Directors are keen to encourage dialogue with shareholders
and the Chairman welcomes direct contact from shareholders.
The Board’s policy is to communicate directly with shareholders
and their representative bodies without the involvement of the
management group (either the Company Secretary or the
Investment 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.
Alternative Investment Fund Managers Directive
(“AIFMD”)
In accordance with the Alternative Investment Funds (Jersey)
Regulations 2012, the Jersey Financial Services Commission
(“JFSC”) has granted its permission for the Company to be
marketed within any EU Member State or other EU State
to which the AIFMD applies. The Company’s registration
certificate with the JFSC mandates that the Company “must
comply with the applicable sections of the Codes of Practice for
Alternative Investment Funds and AIF Services Business”.
abrdn Asia Limited, as the Company’s non-EEA alternative
investment fund manager, has notified the UK Financial
Conduct Authority in accordance with the requirements of the
UK National Private Placement Regime of its intention to market
the Company (as a non-EEA AIF under the AIFMD) in the UK.
In addition, in accordance with Article 23 of the AIFMD and
Rule 3.2.2 of the Financial Conduct Authority (“FCA”) Fund
Sourcebook, abrdn Asia Limited is required to make available
certain disclosures for potential investors in the Company.
These disclosures, in the form of a Pre-Investment Disclosure
Document (“PIDD”), are available on the Company’s website.
Annual General Meeting
The AGM will be held at 10:30 a.m. on 8 May 2025 at 18 Bishops
Square, London E1 6EG.
Resolutions including the following business will be proposed at
the AGM:
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 practice, the Board therefore puts the Company’s
dividend policy to shareholders for approval at each AGM.
The Company’s dividend policy is that, subject to compliance
with applicable laws, dividends on the Ordinary shares are
payable quarterly in relation to periods ending March, June,
September and December. Resolution 3 will seek shareholder
approval for the dividend policy.
Section 4 l Governance 47
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Authority to Purchase the Company’s Shares
The Directors aim to operate an active share buyback policy
should the price at which the Ordinary shares trade relative to
the NAV per share (including income) be at a discount of more
than 5% in normal market conditions.
Purchases of Ordinary shares will only be made through the
market for cash at prices below the prevailing estimated NAV
per share (including income) where the Directors believe such
purchases will enhance shareholder value and are likely to
assist in narrowing any discount to NAV at which the Ordinary
shares may trade.
Resolution 10, a special resolution, will be proposed to renew
the Directors’ authority to make market purchases of the
Company’s Ordinary shares in accordance with the provisions
of the Listing Rules of the Financial Conduct Authority.
Accordingly, the Company will seek authority to purchase up
to a maximum of 21,942,238 Ordinary shares (or, if less, 14.99%
of the issued Ordinary share capital as at the date of passing
of the resolution). The authority being sought will expire on the
earlier of 18 months from the date of the resolution or at the
conclusion of the AGM to be held in 2026 unless such authority
is renewed prior to such time. Any Ordinary shares purchased
in this way will be cancelled and the number of Ordinary shares
will be reduced accordingly, or the Ordinary shares will be held
in treasury.
Under Jersey company law, Jersey companies can either
cancel shares or hold them in treasury following a buy-back of
shares. Repurchased shares will only be held in treasury if the
Board considers that it will be in the interest of the Company
and for the benefit of all shareholders.
Any future sales of Ordinary shares from treasury will only be
undertaken at a premium to the prevailing NAV.
Authority to Allot the Company’s Shares
There are no provisions under Jersey law which confer rights of
pre-emption upon the issue or sale of any class of shares in the
Company. However, the Company has a listing on the London
Stock Exchange and is required to offer pre-emption rights to its
shareholders.
Accordingly, the Articles of Association contain pre-emption
provisions similar to those found under UK law in satisfaction
of the Listing Rules requirements. Ordinary shares will only be
issued at a premium to the prevailing NAV and, therefore, will
not be disadvantageous to existing shareholders. Any future
issues of Ordinary shares will be carried out in accordance with
the Listing Rules.
Unless previously disapplied by special resolution, in accordance
with the Listing Rules, the Company is required to first offer any
new Ordinary shares or securities (or rights to subscribe for, or
to convert or exchange into, Ordinary shares) proposed to be
issued for cash to shareholders in proportion to their holdings
in the Company. In order to continue with such Ordinary share
issues, as in previous years, the Board is also proposing that its
annual disapplication of the pre-emption rights is renewed so
that the Company may continue to issue Ordinary shares as
and when appropriate. Accordingly, Resolution 11, a special
resolution, proposes a disapplication of the pre-emption rights in
respect of 10% of the Ordinary shares in issue at the date of the
passing of the resolution, set to expire on the earlier of 18 months
from the date of the resolution or at the conclusion of the AGM to
be held in 2026.
Change of Name of the Company
In order to align the Company’s name with the name of the
Investment Manager’s business, which has recently changed
from abrdn plc to Aberdeen Group plc, Resolution 12, which is a
special resolution, will propose that, with effect from 1 June 2025,
the Company’s name is changed to “Aberdeen Asian Income
Fund Limited”.
Recommendation
The Board considers the resolutions to be in the best interests
of the Company and its members as a whole. Accordingly, the
Board recommends that shareholders should vote in favour of
all resolutions to be proposed at the AGM, as they intend to do in
respect of their own beneficial shareholdings which amount to
87,128 Ordinary shares (0.06%).
Ian Cadby
Chairman
25 March 2025
28 Esplanade
St Helier
Jersey JE2 3QA
48 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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The Audit Committee presents its report for the year ended
31December 2024.
Committee Composition
The Audit Committee operates within clearly defined terms
of reference and comprises five independent Directors:
Mr Florance (Chairman), Mr Kirkby, Ms McCabe, Ms Nowak
and Ms Routledge. The members of the Audit Committee are
each independent and free from any relationship that would
interfere with their impartial judgement in carrying out their
responsibilities. The Board has satisfied itself that at least one
of its members has recent and relevant financial experience.
The Committee met twice during the year. The Directors’
biographies on pages 38 and 39 describe the wide range of
recent and relevant financial experience and the Committee’s
competence in the investment company sector.
The Audit Committee continues to believe that the Company
does not require an internal audit function of its own as it
delegates its day-to-day operations to third parties from whom
it receives internal controls reports.
Functions of the Audit Committee
The principal function of the Audit Committee is to assist the
Board in relation to the reporting of financial information, the
review of financial controls and the management of risk. The
Committee has defined terms of reference which are reviewed
and re-assessed for their adequacy on an annual basis. The
terms of reference are available on the Company’s website.
The Committee’s main audit review functions are listed below:
● to review and monitor the internal control systems and risk
management systems on which the Company is reliant;
● to consider annually whether there is a need for the
Company to have its own internal audit function;
● to monitor the integrity of the interim and annual financial
statements of the Company by reviewing, and challenging
where necessary, the actions and judgements of the
Investment Manager;
● to review, and report to the Board on, the significant
financial reporting issues and judgements made in
connection with the preparation of the Company’s financial
statements, half yearly reports, announcements and
related formal statements;
● to review the content of the Annual Report and financial
statements and advise the Board on whether, taken as a
whole, it is fair, balanced and understandable and provides
the information necessary for shareholders to assess the
Company’s position and performance, business model and
strategy;
● to meet with the external Auditor to review its proposed
audit programme of work and the findings of the Auditor.
The Committee uses this as an opportunity to assess the
effectiveness of the audit process;
● to develop and implement policy on the engagement of the
external Auditor to supply non-audit services. During the
period under review, no additional fees were paid to KPMG
Channel Islands Limited (2023: £nil). Any future non-audit
fees will be considered in the light of the requirement to
maintain the Auditor’s independence;
● to review an annual statement from the Investment
Manager detailing the arrangements in place within its
business whereby its staff may, in confidence, escalate
concerns about possible improprieties in matters of
financial reporting or other matters;
● to make recommendations in relation to the appointment
of the external Auditor and to approve the remuneration
and terms of engagement of the external Auditor; and
● to monitor and review annually the external Auditor’s
independence, objectivity, effectiveness, resources and
qualification.
Activities During the Year
The Audit Committee met twice during the year when it
considered the Annual Report and the Half-Yearly Report in
detail. Representatives of the abrdn Group’s internal audit, risk
and compliance departments, and the Company Secretary’s
compliance team, reported to the Committee at these
meetings on matters such as internal control systems, risk and
the conduct of the business in the context of its regulatory
environment.
Review of Internal Control Systems and Risk
The Audit Committee considers the internal control systems
and a matrix of risks at each of its meetings. There is more detail
on the process of these reviews in the Directors’ Report.
Financial Statements and Significant Issues
During its review of the Company’s financial statements for
the year ended 31 December 2024, the Audit Committee
considered the following significant issues, in particular those
communicated by the Auditor during its planning and reporting
of the year-end audit:
Valuation of Investments
The valuation of investments is undertaken in accordance
with the accounting policies, disclosed in notes 2(e) and 22 to
the financial statements on pages 65 and 86 to 87. The audit
includes independent confirmation of the existence of all
investments. 100% of the portfolio by value is considered liquid
and quoted in active markets and has been designated as Level
1 within the IFRS 13 fair value hierarchy and can be verified
against daily market prices. Further details are provided in
note 22 to the financial statements. The portfolio is reviewed
and verified by the Investment Manager on a regular basis
and management accounts including a full portfolio listing
are prepared each month and circulated to all Directors for
review. The work undertaken by the Auditor on the valuation of
investments is disclosed on page 54. The Company uses the
Audit Committee’s Report
Section 4 l Governance 49
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services of an independent custodian (BNP Paribas SA, London
Branch) to hold the assets of the Company. The investment
portfolio is reconciled regularly by the Investment Manager and
an independent confirmation is provided to the Auditor by the
Custodian. The foregoing procedures and processes provide
comfort to the Directors in respect of this risk.
Recognition of Investment Income
The recognition of investment income is undertaken in
accordance with accounting policy note 2(b) to the financial
statements on page 64. Special dividends are allocated to the
capital or revenue accounts according to the nature of the
payment and the intention of the underlying company. The
Investment Manager circulates monthly internal control reports
which are reviewed and analysed by the Board. The allocation
of material special dividends is also audited by the Auditor. The
foregoing procedures and processes provide comfort to the
Directors in respect of this risk.
Review of Auditor
The Company’s Annual Report and financial statements for
the year ended 31 December 2024 have been audited by
KPMG Channel Islands Limited at a cost of £59,900 (excluding
disbursements) (2023: £57,000). The Audit Committee has
reviewed the effectiveness of the Auditor including:
● independence – the Auditor discusses with the Audit
Committee, at least bi-annually, the steps it takes to
ensure its independence and objectivity and makes the
Committee aware of any potential issues, explaining all
relevant safeguards;
● quality of audit work including the ability to resolve issues
in a timely manner – identified issues are satisfactorily
and promptly resolved; its communications/presentation
of outputs including the explanation of the audit plan,
any deviations from it and the subsequent audit findings
are comprehensive and comprehensible; and working
relationship with management – the Auditor has a
constructive working relationship with the Board and the
Investment Manager; and
● quality of people and service including continuity and
succession plans – the audit team is made up of sufficient,
suitably experienced staff with provision made for retention
of knowledge of the investment company sector on rotation
of the partner.
Re-appointment of KPMG Channel Islands Limited as
Independent Auditor
KPMG Channel Islands Limited has expressed its willingness
to be re-appointed independent Auditor to the Company.
Resolution 9 which is to be put to shareholders at the
forthcoming AGM proposes the re-appointment of KPMG
Channel Islands Limited as independent Auditor for the
year ending 31 December 2025 and authorises Directors to
determine its remuneration.
Mark Florance
Audit Committee Chairman
25 March 2025
28 Esplanade
St Helier
Jersey JE2 3QA
Audit Committee’s Report continued
50 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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This Directors’ Remuneration Report comprises three parts:
1. a Remuneration Policy which is subject to a binding
shareholder vote every three years (or sooner if varied
during this interval) – most recently voted on at the AGM on
10 May 2023;
2. an Implementation Report which is subject to an advisory
vote on the level of remuneration paid during the year; and
3. an Annual Statement.
The Company’s Auditor has not audited any of the disclosures
provided in this Directors’ Remuneration Report.
The Director’s Remuneration Policy and level of Directors’
remuneration are determined by the Nomination and
Remuneration Committee, which is chaired the Chairman of
the Company and comprises all of the Directors.
The Directors’ Remuneration Policy takes into consideration
the principles of UK corporate governance and the AIC’s
recommendations regarding the application of those principles.
No shareholder views were sought in setting the Remuneration
Policy (approved by shareholders at the 2023 AGM) although
any comments received from shareholders are considered.
Remuneration Policy
Subject to the fee limit set within the Company’s Articles
of Association (see below), the Board’s policy is that the
remuneration of non-executive Directors should reflect the
nature of their duties, responsibilities and the value of their time
spent and be fair and comparable to that of other investment
companies that are similar in size, have a similar capital
structure and have a similar investment objective. Fees are
reviewed annually against the Company’s peer group and, if
considered appropriate, increased accordingly.
Appointment
● The Company only appoints non-executive Directors.
● All the Directors are non-executive appointed under the
terms of letters of appointment.
● Directors must retire and be subject to election at the first
AGM after their appointment, and annual re-election
thereafter.
● New appointments to the Board will be placed on the
fee applicable to all Directors at the time of appointment
(currently £35,500).
● No incentive or introductory fees will be paid to encourage
a directorship.
● Directors are entitled to be reimbursed for out-of- pocket
expenses incurred in connection with the performance of
their duties, including travel expenses.
● The Directors are not eligible for bonuses, pension benefits,
share options, long-term incentive schemes or other
benefits.
● The Company indemnifies its Directors for all costs,
charges, losses, expenses and liabilities which may be
incurred in the discharge of duties, as a Director of the
Company.
Performance, Service Contracts, Compensation and Loss of Office
● The Directors’ remuneration is not subject to any
performance related fee.
● No Director has a service contract.
● No Director was interested in contracts with the Company
during the period or subsequently.
● The terms of appointment provide that a Director may be
removed upon the giving of three months’ notice.
● Compensation will not be due upon leaving office.
● No Director is entitled to any other monetary payment or
any assets of the Company.
Directors’ & Officers’ liability insurance cover is maintained by
the Company on behalf of the Directors.
There have been no changes to the Remuneration Policy during
the period of this Report nor are there any proposals for change
in the foreseeable future.
Approval of Remuneration Policy and Statement of Voting at AGM
The Remuneration Policy was last approved by shareholders at
the AGM on 10 May 2023. The Remuneration Policy is reviewed
by the Board on an annual basis and it is the Board’s intention
that this Remuneration Policy will remain in force for the three
year period ending on 31December 2025.
At the Annual General Meeting held on 10 May 2023,
shareholders approved the Directors’ Remuneration Policy.
99.7% of proxy votes were in favour of the resolution and 0.3%
were against. There were abstentions in respect of 128,133
shares.
Implementation Report
Limit on Directors’ Fees
The Directors are non-executive and their fees are set within
the limits of the Company’s Articles of Association which
limit the aggregate fees payable to the Board of Directors to
£300,000 per annum. The level of cap may be increased by
shareholder resolution from time to time.
Review of Directors’ Fees
The Nomination and Remuneration Committee carried out
an annual review of the level of Directors’ fees during the year
which included a review of the fees payable to peer group
and other similar investment companies. The Committee
concluded that the level of fees would be increased from 1
January 2025 to £51,000 for the Chairman, £41,500 for the
Audit Committee Chairman and £35,500 for other Directors.
An additional fee of £2,000 is paid to the Senior Independent
Director.
Directors’ Remuneration Report
Section 4 l Governance 51
Job No: 53664 Proof Event: 18 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
The fees were last raised with effect from 1 January 2024.
There are no further fees to disclose as the Company has no
employees, Chief Executive or executive Directors.
Company Performance
The following graph illustrates the total shareholder return for a
holding in the Company’s Ordinary shares as compared to the
MSCI AC Asia Pacific ex Japan Index (currency adjusted) for the
period since the inception of the Company (figures rebased to
100 at inception). Given the Company’s investment objective,
these are considered the most appropriate indices against
which to measure the Company’s performance. Shareholders
should note that the Company’s portfolio is constructed without
reference to any stock market index. It is likely, therefore, that
there will be periods when the Company’s performance will be
quite unlike that of any index and there can be no assurance
that such divergence will be to the Company’s advantage.
50
100
150
200
250
300
350
400
450
500
05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22
Share price MSCI Index
23
24
Statement of Voting at AGM
At the Company’s last Annual General Meeting, held on 8 May
2024, shareholders approved the Directors’ Remuneration
Report (excluding the Directors’ Remuneration Policy) in respect
of the year ended 31 December 2023. 99.9% of proxy votes
were in favour of the resolution and 0.1% were against. There
were abstentions in respect of 66,438 shares.
A resolution to approve the Directors’ Remuneration Report
(excluding the Directors’ Remuneration Policy) in respect of the
year ended 31 December 2024 will be proposed at the AGM on
8 May 2025.
Spend on Pay
As the Company has no employees, the Directors do not
consider it appropriate to present a table comparing
remuneration paid to employees with distributions to
shareholders. The total fees paid to Directors are shown below.
Fees Payable
The Directors who served in the year received the following
fees:
Director
2024
£
2023
£
I Cadby
(Chairman and highest paid Director)
49,000 45,000
M Florance
A
41,296 36,500
R Kirkby 34,000 31,000
N McCabe 34,000 31,000
K Nowak
B
34,704 32,000
J Routledge
C
22,027 n/a
Tot a l 215,027 175,500
A
Chairman of the Audit Committee and Senior Independent Director from
8May 2024.
B
Senior Independent Director until 8 May 2024.
C
Appointed as a Director on 8 May 2024.
Fees are pro-rated where a change takes place during a
financial year. None of the above fees (2023 - nil) were payable
to third parties in respect of making available the services of
Directors.
Annual Percentage Change in Directors’ Remuneration
The table below sets out the annual percentage change in
Directors’ fees for the past year.
Director
Year
ended
31 Dec
2024
%
Year
ended
31 Dec
2023
%
Year
ended
31 Dec
2022
%
Year
ended
31 Dec
2021
%
Year
ended
31 Dec
2020
%
I Cadby
A
8.9 7.1 50.0 3.7 0.0
M Florance
B
13.1 7.4 3.0 4.7 0.0
R Kirkby
C
9.7 6.9 n/a n/a n/a
N McCabe 9.7 6.9 3.6 3.7 0.0
K Nowak
D
8.5 6.7 3.4 3.6 0.0
J Routledge
E
n/a n/a n/a n/a n/a
A
Appointed Chairman on 1 January 2022.
B
Appointed Senior Independent Director on 8 May 2024.
C
Appointed as a Director on 1 November 2021.
D
Senior Independent Director until 8 May 2024.
E
Appointed as a Director on 8 May 2024.
52 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Directors’ Interests in the Company
The Directors are not required to have a shareholding in the
Company. The Directors (including connected persons) at
31 December 2024 and 1 January 2024 had no interest in
the Ordinary share capital of the Company other than those
interests, all of which are beneficial interests, shown in the table
below.
Director
31 December
2024
Ordinary
shares
1 January
2024
Ordinary
shares
I Cadby 20,000 12,000
M Florance 18,746 18,746
R Kirkby 16,937 16,937
N McCabe 5,121 5,121
K Nowak 17,797 17,797
J Routledge
A
8,527 –
A
Appointed as a Director on 8 May 2024.
The Directors’ holdings were unchanged at 25 March 2025,
being the nearest practicable date prior to the signing of this
Annual Report.
Annual Statement
The Board confirms that the Report on Remuneration Policy
and the above Remuneration Implementation Report
summarises, as applicable, for the year to 31 December 2024:
● the major decisions on Directors’ remuneration;
● any substantial changes relating to Directors’ remuneration
made during the year; and
● the context in which the changes occurred and decisions
have been taken.
The Directors’ Remuneration Report was approved by the
Board of Directors and signed on its behalf by:
Ian Cadby
Chairman
25 March 2025
28 Esplanade
St Helier
Jersey JE2 3QA
Directors’ Remuneration Report continued
Section 4 l Governance 53
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
The Directors are responsible for preparing the Annual Report
and financial statements in accordance with applicable law
and regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law they are
required to prepare the financial statements in accordance
with International Financial Reporting Standards as issued by
the IASB and applicable law.
Under company law the Directors must not approve the
financial statements unless they are satisfied that they give a
true and fair view of the state of affairs of the Company and
of its profit or loss for that period. In preparing these financial
statements, the Directors are required to:
● select suitable accounting policies and then apply them
consistently;
● make judgements and estimates that are reasonable,
relevant and reliable;
● state whether applicable accounting standards have been
followed, subject to any material departures disclosed and
explained in the financial statements;
● assess the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going
concern; and
● use the going concern basis of accounting unless they
either intend to liquidate the Company or to cease
operations or have no realistic alternative but to do so.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company’s
transactions and disclose with reasonable accuracy at
any time the financial position of the Company and enable
them to ensure that its financial statements comply with the
Companies (Jersey) Law 1991. They are responsible for such
internal controls as they determine are necessary to enable the
preparation of financial statements that are free from material
misstatement, whether due to fraud or error, and have general
responsibility for taking such steps as are reasonably open to
them to safeguard the assets of the Company and to prevent
and detect fraud and other irregularities.
The Directors are responsible for the maintenance and
integrity of the corporate and financial information included
on the Company’s website. Legislation in Jersey governing the
preparation and dissemination of financial statements may
differ from legislation in other jurisdictions.
The Directors confirm that, so far as they are aware, there is no
relevant audit information of which the Company’s Auditor is
unaware, and that each Director has taken all the steps he or
she ought to have taken as a Director to make himself or herself
aware of any relevant audit information and to establish that
the Company’s Auditor is aware of that information.
Responsibility Statement of the Directors in Respect of
the Annual Financial Report
The Directors confirm that to the best of their knowledge:
● the financial statements, prepared in accordance with the
applicable set of accounting standards, give a true and fair
view of the assets, liabilities, financial position and profit or
loss of the Company; and
● the Strategic Report and Directors’ Report includes a
fair review of the development and performance of the
business and the position of the Company, together with
a description of the principal risks and uncertainties that it
faces.
The Directors consider the Annual Report and financial
statements, taken as a whole, is fair, balanced and
understandable and provides the information necessary
for shareholders to assess the Company’s position and
performance, business model and strategy.
Ian Cadby
Chairman
25 March 2025
28 Esplanade
St Helier
Jersey JE2 3QA
The Directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
Company’s website, but not the content of any information
included on the website that has been prepared or issued by
third parties. Legislation in Jersey governing the preparation
and dissemination of financial statements may differ from
legislation in other jurisdictions.
Statement of Directors’ Responsibilities
Job No: 53664 Proof Event: 18 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
54 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Our opinion is unmodified
We have audited the financial statements of abrdn Asian
Income Fund Limited (the “Company”), which comprise the
Balance Sheet as at 31 December 2024, the Statements of
Comprehensive Income, Changes in Equity and Cash Flows
for the year then ended, and notes, comprising material
accounting policies and other explanatory information.
In our opinion, the accompanying financial statements:
● give a true and fair view of the financial position of the
Company as at 31 December 2024, and of the Company’s
financial performance and cash flows for the year then
ended;
● are prepared in accordance with International Financial
Reporting Standards; and
● have been properly prepared in accordance with the
Companies (Jersey) Law, 1991.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (“ISAs (UK)”) and applicable law.
Our responsibilities are described below. We have fulfilled
our ethical responsibilities under, and are independent of
the Company in accordance with, UK ethical requirements
including the FRC Ethical Standard as applied to listed entities.
We believe that the audit evidence we have obtained is a
sufficient and appropriate basis for our opinion.
Key audit matters: our assessment of the risks of material misstatement
Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the financial
statements and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by us,
including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the
efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole,
and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In arriving at our audit opinion
above, the key audit matter was as follows (unchanged from 2023):
The risk Our response
Valuation of Investments held at fair value
through profit or loss (the “Investments”).
Investments held at fair value through profit
or loss £406,041,000 (2023 : £429,636,000)
Refer Note 2(e) of the accounting policy
and note 11 and 18 of the financial
statements.
Basis:
The Company invests in a diversified
portfolio of investments comprising
listed equities, funds and bonds. These
investments are measured at fair value
through profit or loss.
The valuation of the Company’s
investments is the main driver of the net
asset value of the Company, and is a
significant area of our audit.
The valuation of the Company’s
investments is also key to the calculation
of gains/(losses) on investments held
at fair value through profit or loss, and
the calculation of total return, which is
an Alternative Performance Measure
disclosed in the Company’s Annual Report.
Risk:
Should the reported value of the
Company’s investments diverge from fair
value, the Company’s reported net asset
value, gains/(losses) on investments held
at fair value through profit or loss, and total
return would be misstated. The Company’s
net assets, is considered to be the area
which has the greatest effect on our overall
audit strategy and allocation of resources
in planning and completing our audit.
Our audit procedures included:
Internal controls:
We evaluated the design and
implementation of the controls over the
valuation of the investments.
Use of KPMG specialists:
We engaged our valuation specialists to:
Agree the price inputs into the fair value of
all investments in the Company’s portfolio
to quoted exchange prices as at 31
December 2024. Independent reference
prices were determined for all except one
security (a defaulted bond with a reported
fair value of £nil), for which insufficient
market data was available.
Assessing disclosures:
We assessed the Company’s disclosures
in relation to valuation of investments,
specifically the accounting policies
described in note 2(e), the judgements
and estimates made by management, and
fair value disclosures in notes 11 and 18 for
compliance with IFRS.
Independent Auditor’s Report to the Members
of abrdn Asian Income Fund Limited
Section 4 l Governance 55
Job No: 53664 Proof Event: 18 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Our application of materiality and an overview of the
scope of our audit
Materiality for the financial statements as a whole was set at
£4,310,000, determined with reference to a benchmark of total
assets of £416,811,000, of which it represents approximately
1.0% (2023: 1.0%).
In line with our audit methodology, our procedures on individual
account balances and disclosures were performed to a
lower threshold, performance materiality, so as to reduce
to an acceptable level the risk that individually immaterial
misstatements in individual account balances add up to
a material amount across the financial statements as a
whole. Performance materiality for the Company was set at
75% (2023: 75%) of materiality for the financial statements
as a whole, which equates to £3,230,000. We applied this
percentage in our determination of performance materiality
because we did not identify any factors indicating an elevated
level of risk.
We reported to the Audit Committee any corrected or
uncorrected identified misstatements exceeding £215,000,
in addition to other identified misstatements that warranted
reporting on qualitative grounds.
Our audit of the Company was undertaken to the materiality
level specified above, which has informed our identification of
significant risks of material misstatement and the associated
audit procedures performed in those areas as detailed above.
Going concern
The Directors have prepared the financial statements on
the going concern basis as they do not intend to liquidate
the Company or to cease its operations, and as they have
concluded that the Company’s financial position means that
this is realistic. They have also concluded that there are no
material uncertainties that could have cast significant doubt
over its ability to continue as a going concern for at least a
year from the date of approval of the financial statements (the
“going concern period”).
In our evaluation of the Directors’ conclusions, we considered
the inherent risks to the Company’s business model and
analysed how those risks might affect the Company’s financial
resources or ability to continue operations over the going
concern period. The risks that we considered most likely to
affect the Company’s financial resources or ability to continue
operations over this period were:
● availability of capital to meet operating costs and other
financial commitments;
● the ability to successfully refinance or repay debt which is
due to mature; and
● the ability of the Company to comply with debt covenants.
We considered whether these risks could plausibly affect the
liquidity in the going concern period by comparing severe,
but plausible downside scenarios that could arise from these
risks individually and collectively against the level of available
financial resources indicated by the Company’s financial
forecasts.
We considered whether the going concern disclosure in note
2 (a) to the financial statements gives a full and accurate
description of the Directors’ assessment of going concern.
Our conclusions based on this work:
● we consider that the Directors’ use of the going concern
basis of accounting in the preparation of the financial
statements is appropriate;
● we have not identified, and concur with the Directors’
assessment that there is not a material uncertainty related
to events or conditions that, individually or collectively, may
cast significant doubt on the Company’s ability to continue
as a going concern for the going concern period; and
● we have nothing material to add or draw attention to
in relation to the Directors’ statement in the notes to the
financial statements on the use of the going concern basis
of accounting with no material uncertainties that may cast
significant doubt over the Company’s use of that basis for
the going concern period.
However, as we cannot predict all future events or conditions
and as subsequent events may result in outcomes that are
inconsistent with judgements that were reasonable at the time
they were made, the above conclusions are not a guarantee
that the Company will continue in operation.
Fraud and breaches of laws and regulations – ability to
detect
Identifying and responding to risks of material misstatement due
to fraud
To identify risks of material misstatement due to fraud (“fraud
risks”) we assessed events or conditions that could indicate an
incentive or pressure to commit fraud or provide an opportunity
to commit fraud. Our risk assessment procedures included:
● enquiring of management as to the Company’s policies
and procedures to prevent and detect fraud as well as
enquiring whether management have knowledge of any
actual, suspected or alleged fraud;
● reading minutes of meetings of those charged with
governance; and
● using analytical procedures to identify any unusual or
unexpected relationships.
As required by auditing standards, we perform procedures
to address the risk of management override of controls, in
particular the risk that management may be in a position to
make inappropriate accounting entries. On this audit we do
not believe there is a fraud risk related to revenue recognition
because the Company’s revenue streams are simple in nature
with respect to accounting policy choice, and are easily
verifiable to external data sources or agreements with little or
Job No: 53664 Proof Event: 18 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
56 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
no requirement for estimation from management. We did not
identify any additional fraud risks.
We performed procedures including:
● identifying journal entries and other adjustments to test
based on risk criteria and comparing any identified entries
to supporting documentation; and
● incorporating an element of unpredictability in our audit
procedures.
Identifying and responding to risks of material
misstatement due to non-compliance with laws and
regulations
We identified areas of laws and regulations that could
reasonably be expected to have a material effect on the
financial statements from our sector experience and
through discussion with management (as required by
auditing standards), and from inspection of the Company’s
regulatory and legal correspondence, if any, and discussed
with management the policies and procedures regarding
compliance with laws and regulations. As the Company
is regulated, our assessment of risks involved gaining an
understanding of the control environment including the entity’s
procedures for complying with regulatory requirements.
The Company is subject to laws and regulations that directly
affect the financial statements including financial reporting
legislation and taxation legislation and we assessed the extent
of compliance with these laws and regulations as part of our
procedures on the related financial statement items.
The Company is subject to other laws and regulations where
the consequences of non-compliance could have a material
effect on amounts or disclosures in the financial statements, for
instance through the imposition of fines or litigation or impacts
on the Company’s ability to operate. We identified financial
services regulation as being the area most likely to have such
an effect, recognising the regulated nature of the Company’s
activities and its legal form. Auditing standards limit the required
audit procedures to identify non-compliance with these laws
and regulations to enquiry of management and inspection
of regulatory and legal correspondence, if any. Therefore if
a breach of operational regulations is not disclosed to us or
evident from relevant correspondence, an audit will not detect
that breach.
Context of the ability of the audit to detect fraud or
breaches of law or regulation
Owing to the inherent limitations of an audit, there is an
unavoidable risk that we may not have detected some material
misstatements in the financial statements, even though we
have properly planned and performed our audit in accordance
with auditing standards. For example, the further removed
non-compliance with laws and regulations is from the events
and transactions reflected in the financial statements, the less
likely the inherently limited procedures required by auditing
standards would identify it.
In addition, as with any audit, there remains a higher risk of
non-detection of fraud, as this may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of
internal controls. Our audit procedures are designed to detect
material misstatement. We are not responsible for preventing
non-compliance or fraud and cannot be expected to detect
non-compliance with all laws and regulations.
Other information
The Directors are responsible for the other information. The
other information comprises the information included in the
Annual Report but does not include the financial statements
and our auditor’s report thereon. Our opinion on the financial
statements does not cover the other information and we do not
express an audit opinion or any form of assurance conclusion
thereon.
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing
so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially
misstated. If, based on the work we have performed, we
conclude that there is a material misstatement of this other
information, we are required to report that fact. We have
nothing to report in this regard.
Disclosures of emerging and principal risks and
longer-term viability
We are required to perform procedures to identify whether
there is a material inconsistency between the Directors’
disclosures in respect of emerging and principal risks and the
viability statement, and the financial statements and our audit
knowledge. We have nothing material to add or draw attention
to in relation to:
● the Directors’ confirmation within the viability statement
(page 24) that they have carried out a robust assessment
of the emerging and principal risks facing the Company,
including those that would threaten its business model,
future performance, solvency or liquidity;
● the emerging and principal risks disclosures describing
these risks and explaining how they are being managed or
mitigated;
● the Directors’ explanation in the viability statement
(page24) as to how they have assessed the prospects of
the Company, over what period they have done so and
why they consider that period to be appropriate, and
their statement as to whether they have a reasonable
expectation that the Company will be able to continue
in operation and meet its liabilities as they fall due
over the period of their assessment, including any
related disclosures drawing attention to any necessary
qualifications or assumptions.
We are also required to review the viability statement, set
out on page 24 under the Listing Rules. Based on the above
procedures, we have concluded that the above disclosures
Independent Auditor’s Report to the Members
of abrdn Asian Income Fund Limited continued
Section 4 l Governance 57
Job No: 53664 Proof Event: 18 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
are materially consistent with the financial statements and our
audit knowledge.
Corporate governance disclosures
We are required to perform procedures to identify whether
there is a material inconsistency between the Directors’
corporate governance disclosures and the financial statements
and our audit knowledge.
Based on those procedures, we have concluded that each
of the following is materially consistent with the financial
statements and our audit knowledge:
● the Directors’ statement that they consider that the
Annual Report and financial statements taken as a whole
is fair, balanced and understandable, and provides the
information necessary for shareholders to assess the
Company’s position and performance, business model and
strategy;
● the section of the Annual Report describing the work of the
Audit Committee, including the significant issues that the
Audit Committee considered in relation to the financial
statements, and how these issues were addressed; and
● the section of the Annual Report that describes the review
of the effectiveness of the Company’s risk management
and internal control systems.
We are required to review the part of Corporate Governance
Statement relating to the Company’s compliance with the
provisions of the UK Corporate Governance Code specified by
the Listing Rules for our review. We have nothing to report in this
respect.
We have nothing to report on other matters on which
we are required to report by exception
We have nothing to report in respect of the following matters
where the Companies (Jersey) Law 1991 requires us to report to
you if, in our opinion:
● adequate accounting records have not been kept by the
Company; or
● the Company’s financial statements are not in agreement
with the accounting records; or
● we have not received all the information and explanations
we require for our audit.
Respective responsibilities
Directors’ responsibilities
As explained more fully in their statement set out on page53,
the Directors are responsible for: the preparation of the
financial statements including being satisfied that they give
a true and fair view; such internal control as they determine is
necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud
or error; assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going
concern; and using the going concern basis of accounting
unless they either intend to liquidate the Company or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue our opinion in an auditor’s report. Reasonable assurance
is a high level of assurance, but does not guarantee that an
audit conducted in accordance with ISAs (UK) will always
detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if,
individually or in aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis
of the financial statements.
A fuller description of our responsibilities is provided on the
FRC’s website at www.frc.org.uk/auditorsresponsibilities.
The purpose of this report and restrictions on its use by
persons other than the Company’s members as a body
This report is made solely to the Company’s members, as
a body, in accordance with Article 113A of the Companies
(Jersey) Law 1991. Our audit work has been undertaken so that
we might state to the Company’s members those matters we
are required to state to them in an auditor’s report and for no
other purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the
Company and the Company’s members, as a body, for our
audit work, for this report, or for the opinions we have formed.
Ben Seymour-Smith
For and on behalf of KPMG Channel Islands Limited
Chartered Accountants
Jersey
25 March 2025
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
58 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
The share price total return for the year ended
31 December 2024 was 12.0% and the NAV
total return was 10.8%.
Financial Statements
Section 5 l Financial Statements 59
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Year ended
31 December 2024
Year ended
31 December 2023
Notes
Revenue
£’000
Capital
£’000
Tot a l
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Investment income 4
Dividend income 21,918 – 21,918 23,558 32 23,590
Interest income 325 – 325 459 – 459
Stock lending income 43 – 43 4 – 4
Total revenue 3 22,286 – 22,286 24,021 32 24,053
Gains/(losses) on investments held at fair value
through profit or loss 11 – 20,372 20,372 – (8,457) (8,457)
Net currency (losses)/gains – (773) (773) – 701 701
22,286 19,599 41,885 24,021 (7,724) 16,297
Expenses
Investment management fee 5 (1,053) (1,315) (2,368) (1,216) (1,825) (3,041)
Other operating expenses 6 (1,049) – (1,049) (867) – (867)
Profit/(loss) before finance costs and tax 20,184 18,284 38,468 21,938 (9,549) 12,389
Finance costs 7 (780) (1,170) (1,950) (810) (1,215) (2,025)
Profit/(loss) before tax 19,404 17,114 36,518 21,128 (10,764) 10,364
Tax expense 2(d), 8 (1,338) (968) (2,306) (934) (686) (1,620)
Profit/(loss) for the year 18,066 16,146 34,212 20,194 (11,450) 8,744
Earnings per Ordinary share (pence) 10 11.35 10.14 21.49 11.97 (6.79) 5.18
The Company does not have any income or expense that is not included in profit/(loss) for the year, and therefore the “Profit/(loss)
for the year” is also the “Total comprehensive income for the year”.
All of the profit/(loss) and total comprehensive income is attributable to the equity holders of abrdn Asian Income Fund Limited.
There are no non-controlling interests.
The total column of this statement represents the Statement of Comprehensive Income of the Company, prepared in accordance
with IFRS. The revenue and capital columns are supplementary to this and are prepared under guidance published by the
Association of Investment Companies. All items in the above statement derive from continuing operations.
The accompanying notes are an integral part of the financial statements.
Statement of Comprehensive Income
60 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Notes
As at
31 December 2024
£’000
As at
31 December 2023
£’000
Non-current assets
Investments held at fair value through profit or loss 11 406,041 429,636
Current assets
Cash and cash equivalents 9,349 1,560
Other receivables 12 1,421 2,913
10,770 4,473
Creditors: amounts falling due within one year
Bank loans 13(a) (32,422) (32,123)
Other payables 13(b) (4,788) (1,503)
(37,210) (33,626)
Net current liabilities (26,440) (29,153)
Total assets less current liabilities 379,601 400,483
Creditors: amounts falling due after more than one year
Deferred tax liability on Indian capital gains 13(c) (1,706) (1,615)
(1,706) (1,615)
Net assets 377,895 398,868
Stated capital and reserves
Stated capital 15 194,933 194,933
Capital redemption reserve 1,560 1,560
Capital reserve 16 167,722 187,549
Revenue reserve 13,680 14,826
Equity shareholders’ funds 377,895 398,868
Net asset value per Ordinary share (pence) 17 251.42 238.59
The financial statements on pages 59 to 87 were approved by the Board of Directors and authorised for issue on 25 March 2025 and
were signed on its behalf by:
Ian Cadby
Chairman
The accompanying notes are an integral part of the financial statements.
Balance Sheet
Section 5 l Financial Statements 61
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Notes
Year ended
31 December 2024
£’000
Year ended
31 December 2023
£’000
Cash flows from operating activities
Dividend income received 22,084 23,293
Interest income received – 481
Investment management fee paid (3,090) (2,734)
Return of capital included in investment income – 32
Other cash expenses (1,827) (940)
Net cash generated from operating activities before interest paid and tax 17,167 20,132
Interest paid (1,529) (2,115)
Overseas taxation paid (655) (1,980)
Net cash inflows from operating activities 14,983 16,037
Cash flows from investing activities
Purchases of investments (204,628) (142,128)
Sales of investments 253,457 152,001
Indian capital gains tax on sales – (195)
Net cash inflow from investing activities 48,829 9,678
Cash flows from financing activities
Purchase of own shares for treasury 15 (35,973) (5,415)
Dividends paid 9 (19,212) (17,908)
Repayment of loans – (8,000)
Costs associated with loan (65) –
Net cash outflow from financing activities (55,250) (31,323)
Net increase/(decrease) in cash and cash equivalents 8,562 (5,608)
Cash and cash equivalents at the start of the year 1,560 7,328
Effect of foreign exchange on cash and cash equivalents (773) (160)
Cash and cash equivalents at the end of the year 2(f) 9,349 1,560
Non-cash transactions during the year comprised stock dividends of £nil (2023 - £390,000) (Note 4).
The accompanying notes are an integral part of the financial statements.
Cash Flow Statement
62 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
For the year ended 31 December 2024
Notes
Stated
capital
£’000
Capital
redemption
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Retained
earnings
£’000
Tot a l
£’000
Opening balance 194,933 1,560 187,549 14,826 - 398,868
Buyback of Ordinary shares for treasury 15 – - (35,973) - - (35,973)
Profit for the year – - - - 34,212 34,212
Transferred from retained earnings to
capital reserve
A
– – 16,146 – (16,146) –
Transferred from retained earnings to
revenue reserve – – – 18,066 (18,066) –
Dividends paid 9 – – – (19,212) – (19,212)
Balance at 31 December 2024 194,933 1,560 167,722 13,680 - 377,895
For the year ended 31 December 2023
Notes
Stated
capital
£’000
Capital
redemption
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Retained
earnings
£’000
Tot a l
£’000
Opening balance 194,933 1,560 204,414 12,540 – 413,447
Buyback of Ordinary shares for treasury 15 – – (5,415) – – (5,415)
Profit for the year – – – – 8,744 8,744
Transferred from retained earnings to
capital reserve
A
– – (11,450) – 11,450 –
Transferred from retained earnings to
revenue reserve – – – 20,194 (20,194) –
Dividends paid 9 – – – (17,908) – (17,908)
Balance at 31 December 2023 194,933 1,560 187,549 14,826 – 398,868
A
Represents the capital profit/(loss) attributable to equity shareholders per the Statement of Comprehensive Income.
The revenue reserve represents the amount of the Company’s reserves distributable by way of dividend.
The stated capital in accordance with Companies (Jersey) Law 1991 Article 39A is £260,822,000 (2023 - £260,822,000). These
amounts include proceeds arising from the issue of shares by the Company but exclude the cost of shares purchased for
cancellation or treasury by the Company.
The accompanying notes are an integral part of the financial statements.
Statement of Changes in Equity
Section 5 l Financial Statements 63
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
1. Principal activity
The Company is a closed-end investment company incorporated in Jersey, with its Ordinary shares being listed on the London
Stock Exchange. The Company’s principal activity is investing in securities in the Asia Pacific region.
2. Accounting policies
(a) Basis of preparation. The financial statements have been prepared in accordance with International Financial Reporting
Standards (“IFRS”), as adopted by the International Accounting Standards Board (“IASB”), and interpretations issued by the
International Reporting Committee of the IASB (“IFRIC”). The financial statements give a true and fair view and comply with the
Companies (Jersey) Law, 1991.
The financial statements have also been prepared in accordance with the Statement of Recommended Practice (SORP),
‘Financial Statements of Investment Trust Companies and Venture Capital Trusts’ issued in July 2022 to the extent they are
consistent with IFRS.
The Company had net current liabilities at the year end. The Directors have undertaken a robust review of the Company’s
viability (refer to statement on page 24) and ability to continue as a going concern. The Company’s assets consist primarily of a
diverse portfolio of listed equity shares which in most circumstances are realisable within a very short timescale. The Directors
have reviewed forecasts detailing revenue and liabilities, have set limits for borrowing and reviewed compliance with banking
covenants, including the headroom available. Having taken these factors into account, the Directors believe that the Company
has adequate financial resources to continue its operational existence for the foreseeable future and at least 12 months from
the date of this Annual Report. Accordingly, the Directors continue to adopt the going concern basis in preparing these financial
statements.
Significant accounting judgements and estimates.
The preparation of financial statements in conformity with IFRS requires the use of certain significant accounting judgements
and estimates which requires management to exercise its judgement in the process of applying the accounting policies
and are continually evaluated. These judgements include the assessment of the Company’s ability to continue as a going
concern. One area requiring significant judgement and assumption in the financial statements is the determination of the
fair value hierarchy classification of quoted bonds which have been assessed as being Level 2 due to not being considered
to trade in active markets. In addition, significant judgement is required to determine the fair value hierarchy classification
of Thai securities held on foreign markets whose pricing is based on the local market and have been assessed as Level 1 as
the local securities are considered to be identical assets in line with IFRS 13 guidance. Another area of judgement includes
the assessment of whether special dividends should be allocated to revenue or capital based on their individual merits.
Examples of where special dividends are allocated to capital include events such as the disposal of capital assets and capital
restructuring.
Furthermore, the Board of Directors has a policy to write down the value of investments in the financial statements where there
are concerns over liquidity, credit worthiness, exit opportunities and the timing of any potential receipts. The Directors believe
there are no significant estimates contained within the financial statements as all investments are valued at quoted bid price
and all other assets and liabilities are valued at amortised cost.
The financial statements are prepared on a historical cost basis, except for investments that have been measured at fair value
through profit or loss (“FVTPL”).
The accounting policies which follow set out those policies which apply in preparing the financial statements for the year
ended 31 December 2024.
The financial statements are presented in sterling and all values are rounded to the nearest thousand (£’000) except when
otherwise indicated.
New and amended accounting standards and interpretations.
There were no new and amended accounting standards and interpretations applied to the financial statements of the
Company during the year.
Notes to the Financial Statements
64 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
2. Accounting policies continued
At the date of authorisation of these financial statements, the following amendments to Standards and Interpretations were
assessed to be relevant and are all effective for annual periods beginning on or after 1 January 2024:
Standards Issued and effective
IAS 1 Amendments Classification of Liabilities as Current or Non-Current (effective 1 January 2024)
IAS 1 Amendments Non-current Liabilities with Covenants (effective 1 January 2024)
Future amendments to standards and interpretations.
Standards Issued but not yet effective
IAS 21 Amendments Lack of Exchangeability (effective 1 January 2025)
Annual Improvements 2023-24 Minor amendments to IFRS 1, 7, 9, 10, and IAS 7 (effective 1 January 2026)
IFRS 7 and 9 Amendments Classification and Measurement of Financial Instruments (effective 1 January 2026)
IFRS 18 Presentation and Disclosure in Financial Statements (effective 1 January 2027)
The Company intends to adopt the Standards and Interpretations in the reporting period when they become effective and
the Board does not anticipate that the adoption of these Standards and Interpretations in future periods will materially impact
the Company’s profit/(loss) for the year in the period of initial application although there may be revised presentations to the
Financial Statements and additional disclosures resulting from application of IFRS 18 when it becomes effective.
(b) Income. Dividend income receivable on equity shares is recognised on the ex-dividend date. Dividend income on equity shares
where no ex-dividend date is quoted is brought into account when the Company’s right to receive payment is established.
Where the Company has elected to receive dividends in the form of additional shares rather than in cash, the amount of the
cash dividend foregone is recognised as income. Special dividends are an area of significant accounting judgement and are
credited to capital or revenue according to their circumstances. Dividend income is presented gross of any non-recoverable
withholding taxes, which are disclosed separately in the Statement of Comprehensive Income.
Interest is recognised on a time-proportionate basis using the effective interest method. Interest income includes interest
from cash and cash equivalents. Interest from financial assets at fair value through profit or loss includes interest from debt
securities.
(c) Expenses. All expenses, with the exception of interest expenses, which are recognised using the effective interest method, are
accounted for on an accruals basis. Expenses are charged through the revenue column of the Statement of Comprehensive
Income except as follows:
● expenses which are incidental to the acquisition or disposal of an investment are treated as capital and separately identified
and disclosed in note 11;
● expenses (including share issue costs) are treated as capital where a connection with the maintenance or enhancement of
the value of the investments can be demonstrated; and
● the Company charges 60% of investment management fees and finance costs to capital, in accordance with the Board’s
expected long term return in the form of capital gains and income respectively from the investment portfolio of the
Company.
(d) Taxation. With effect from 1 January 2022 the Company migrated tax residency to the UK from Jersey and elected to join the
UK’s investment trust regime.
The tax expense for year ended 31 December 2024 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
Notes to the Financial Statements continued
Section 5 l Financial Statements 65
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
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 Balance Sheet date.
Deferred tax is recognised in respect of all temporary differences at the Balance Sheet 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 Balance Sheet
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 temporary differences can be deducted. Deferred tax assets and liabilities are
measured at the rates applicable to the legal jurisdictions in which they arise, using tax rates that are expected to apply at the
date the deferred tax position is unwound. Deferred tax is charged or credited in the Statement of Comprehensive Income,
except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
In some jurisdictions, investment income and capital gains are subject to withholding tax deducted at the source of the income.
The Company presents the withholding tax separately from the gross investment income in the Statement of Comprehensive
Income.
(e) Investments. The Company has adopted the classification and measurement provisions of IFRS 9 ‘Financial Instruments’.
The Company classifies its investments based on their contractual cash flow characteristics and the Company’s business
model for managing the assets. The business model, which is the determining feature for debt instruments, is such that the
portfolio of investments is managed, and performance is evaluated, on a fair value basis. The Investment Manager is also
compensated based on the fair value of the Company’s assets. Equity instruments are classified as FVTPL because cash flows
resulting from such instruments do not represent payments of principal and interest on the principal outstanding, and therefore
they fail the contractual cash flows test. Consequently, all investments are measured at FVTPL.
Purchases and sales of investments are recognised on a trade date basis. Proceeds are measured at fair value, which is
regarded as the proceeds of sale less any transaction costs.
The fair value of the financial assets is based on their quoted bid price at the reporting date, without deduction for any estimated
future selling costs.
Changes in the value of investments held at fair value through profit or loss and gains and losses on disposal are recognised
in the Statement of Comprehensive Income as “(Losses)/gains on investments held at fair value through profit or loss” on an
average cost basis. Also included within this caption are transaction costs in relation to the purchase or sale of investments.
(f) Cash and cash equivalents. Cash comprises cash held at banks. Cash equivalents are short-term highly liquid investments that
are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in values.
For the purposes of the Cash Flow Statement, cash and cash equivalents comprise cash at bank net of any outstanding bank
overdrafts.
(g) Other receivables. Financial assets previously classified as loans and receivables are held to collect contractual cash flows and
give rise to cash flows representing solely payments of principal and interest. As such they are measured at amortised cost.
Other receivables do not carry any interest, therefore they have not been assessed for any expected credit losses over their
lifetime due to their short-term nature.
(h) Other payables. Other payables are non interest bearing and are stated at amortised cost.
(i) Dividends payable. Interim dividends payable to Shareholders are recognised in the financial statements in the period in which
they are declared and paid.
(j) Nature and purpose of reserves
Capital redemption reserve. The capital redemption reserve arose when Ordinary shares were redeemed, at which point an
amount equal to £1 per share of the Ordinary share capital was transferred from the Statement of Comprehensive Income to
the capital redemption reserve. Following a law amendment in 2008, the Company is no longer required to make a transfer.
Although the transfer from the Statement of Comprehensive Income is no longer required, the amount remaining in the capital
redemption reserve is not distributable in accordance with the undertaking provided by the Board in the launch Prospectus.
66 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
2. Accounting policies continued
Capital reserve. This reserve reflects any gains or losses on investments realised in the period along with any increases and
decreases in the fair value of investments held that have been recognised in the Statement of Comprehensive Income. This
reserve also reflects any gains realised when Ordinary shares are issued at a premium to £1 per share and any losses suffered
on the redemption of Ordinary shares for cancellation at a value higher than £1 per share.
When the Company purchases its Ordinary shares to be held in treasury, the amount of the consideration paid, which includes
directly attributable costs, is recognised as a deduction from the capital reserve. Should these shares be sold subsequently, the
amount received is recognised in the capital reserve and the resulting surplus or deficit on the transaction remains in the capital
reserve. The capital reserve is also available to fund dividend payments to shareholders.
Revenue reserve. This reserve reflects all income and costs which are recognised in the revenue column of the Statement of
Comprehensive Income and is utilised to fund dividend payments to shareholders.
(k) Foreign currency. Monetary assets and liabilities denominated in foreign currencies are converted into sterling at the rate of
exchange ruling at the reporting date. The financial statements are presented in sterling, which is the Company’s functional
and presentation currency. The Company’s performance is evaluated and its liquidity is managed in sterling. Therefore sterling
is considered as the currency that most faithfully represents the economic effects of the underlying transactions, events
and conditions. Transactions during the year involving foreign currencies are converted at the rate of exchange ruling at the
transaction date. Gains or losses arising from a change in exchange rates subsequent to the date of a transaction are included
as a currency gain or loss in revenue or capital in the Statement of Comprehensive Income, depending on whether the gain or
loss is of a revenue or capital nature.
(l) Bank loans. The Company has adopted the classification and measurement provisions of IFRS 9 ‘Financial Instruments’. Bank
loans are measured at amortised cost using the effective interest rate method.
Bank loans are stated at the amount of the net proceeds immediately after draw down plus cumulative finance costs less
cumulative payments. The finance cost of bank loans is allocated to years over the term of the debt at a constant rate on the
carrying amount and charged 40% to revenue and 60% to capital to reflect the Company’s investment policy and prospective
revenue and capital growth.
(m) Share capital. The Company’s Ordinary shares are classified as equity as the Company has full discretion on repurchasing the
Ordinary shares and on dividend distributions.
Issuance, acquisition and resale of Ordinary shares are accounted for as equity transactions. Upon issuance of Ordinary
shares, the consideration received is included in equity.
Transaction costs incurred by the Company in acquiring or selling its own equity instruments are accounted for as a deduction
from equity to the extent that they are incremental costs directly attributable to the equity transaction that otherwise would
have been avoided.
Own equity instruments which are acquired (treasury shares) are deducted from equity and accounted for at amounts equal
to the consideration paid, including any directly attributable incremental costs.
No gain or loss is recognised in the Statement of Comprehensive Income on the purchase, sale, issuance or cancellation of the
Company’s own instruments.
(n) Traded options. The Company may enter into certain derivative contracts (e.g. options) to gain exposure to the market. The
option contracts are classified as fair value through profit or loss and accounted for as separate derivative contracts and are
therefore shown in other assets or other liabilities at their fair value i.e. market value. The premium received on the open position
is recognised over the life of the option in the revenue column of the Statement of Comprehensive Income along with fair value
changes in the open position which occur due to the movement in underlying securities. Losses realised on the exercise of the
contracts are recorded in the capital column of the Statement of Comprehensive Income as they arise. Where the Company
enters into derivative contracts to manage market risk, gains or losses arising on such contracts are recorded in the capital
column of the Statement of Comprehensive Income.
Notes to the Financial Statements continued
Section 5 l Financial Statements 67
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
3. Segmental information
The Company is organised into one main operating segment, which invests in equity securities, debt instruments and derivatives.
All of the Company’s activities are interrelated, and each activity is dependent on the others. Accordingly, all significant operating
decisions are based upon analysis of the Company as one segment. The financial results from this segment are equivalent to the
financial statements of the Company as a whole.
The following table analyses the Company’s operating income by each geographical location. The basis for attributing the
operating income is the place of incorporation of the instrument’s counterparty.
Year ended
31 December 2024
£’000
Year ended
31 December 2023
£’000
Asia Pacific region 21,395 23,069
United Kingdom 891 952
22,286 24,021
4. Investment income
Year ended
31 December 2024
£’000
Year ended
31 December 2023
£’000
Income from investments
Overseas dividend income 21,184 22,398
UK dividend income 734 770
Stock dividend income - 390
21,918 23,558
Other income
Bond interest 168 277
Deposit interest 157 182
Stock lending income 43 4
368 463
Total revenue 22,286 24,021
68 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
5. Investment management fee
Year ended
31 December 2024
Year ended
31 December 2023
Revenue
£’000
Capital
£’000
Tot a l
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Investment management fee 1,053 1,315 2,368 1,216 1,825 3,041
With effect from 15 August 2023, investment management services have been provided by abrdn Asia Limited (“abrdn Asia”). Prior
to this management services were provided by abrdn Capital International Limited (“aCil”). Any stocklending activity has been sub-
delegated to abrdn Investments Limited.
With effect from 1 January 2024, the fee structure has been determined by the lower of the Company’s market capitalisation or net
asset value. The fee is calculated monthly at a rate of 0.75% per annum on market capitalisation (or net assets, whichever is lower)
up to £300 million, and 0.60% for amounts exceeding this threshold. From this fee, an annual amount of £130,000 is rebated to the
Company by abrdn Asia for the provision of marketing services. An additional amount of £129,000 is rebated to the Company by
abrdn Asia for the provision of secretarial services provided by JTC, although JTC’s fee is included as part of the management fee
cost. The balance due to abrdn Asia at the year end was £372,000 (2023 - £1,093,000).
6. Other operating expenses
Year ended
31 December 2024
£’000
Year ended
31 December 2023
£’000
Directors’ fees 215 175
Promotional activities
A
286 200
Auditor’s remuneration:
– statutory audit 60 57
- disbursements - 2
Custody fees 163 98
Printing & postage 23 36
Professional fees 132 56
Registrar’s fees 60 58
Other 110 185
1,049 867
A
Promotional activities are provided by abrdn Investments Limited. The total fees paid are based on an annual rate for Marketing of £193,000 (from 1 July 2023
- £193,000) and from 20 May 2024 an annual Marketing and PR fee of £130,000 (2023 - £nil). An amount of £38,000 (2023 - £48,000) was payable to abrdn
Investments Limited at the year end.
No fees have been paid to the Company’s Auditor during the period other than those listed here.
Notes to the Financial Statements continued
Section 5 l Financial Statements 69
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7. Finance costs
Year ended
31 December 2024
Year ended
31 December 2023
Revenue
£’000
Capital
£’000
Tot a l
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Interest on bank loans 779 1,168 1,947 804 1,205 2,009
Amortisation of loan arrangement expenses 1 2 3 6 10 16
780 1,170 1,950 810 1,215 2,025
Finance costs are charged 40% to revenue and 60% to capital as disclosed in the accounting policies.
8. Taxation
a) Analysis of tax charge in the year
2024 2023
Revenue
£’000
Capital
£’000
Tot a l
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Indian capital gains tax - 876 876 - 195 195
Overseas withholding tax 1,338 - 1,338 934 - 934
Total current tax charge for the year (note b) 1,338 876 2,214 934 195 1,129
Movement of deferred tax liability on Indian CGT - 92 92 - 491 491
Total deferred tax charge for the year (note c) - 92 92 - 491 491
Total tax charge for the year 1,338 968 2,306 934 686 1,620
70 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
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Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
8. Taxation continued
b) The UK corporation tax rate is 25% (2023 - 19% from 1 Janaury 2023 until 31 March 2023 and 25% from 1 April 2023, giving an
effective rate of 23.5%). The tax charge for the year differs from the corporation tax rate.
2024 2023
Revenue
£’000
Capital
£’000
Tot a l
£’000
Revenue
£’000
Capital
£’000
Total
£’000
Net profit before taxation 19,404 17,114 36,518 21,128 (10,764) 10,364
Corporation tax @ 25.0% (2023 - 23.5%) 4,851 4,279 9,130 4,965 (2,529) 2,436
Effects of:
UK dividends (184) - (184) (181) - (181)
Non-taxable overseas dividends (4,628) - (4,628) (4,700) - (4,700)
Other Non-taxable overseas dividends - - - - (8) (8)
Currency gains/losses - 193 193 - (805) (805)
Realised/unrealised gains/losses on investments - (5,093) (5,093) - 2,627 2,627
Expenses not deductible for tax purposes - - - 2 - 2
Excess management expenses 5 621 626 (53) 715 662
Tax effect of expensed double taxation relief (44) - (44) (33) - (33)
Irrecoverable overseas withholding tax 1,338 - 1,338 934 - 934
Indian capital gains tax - 876 876 - 195 195
Movement of deferred tax liability on Indian CGT - 92 92 - 491 491
Total current tax charge for the year (note a) 1,338 968 2,306 934 686 1,620
c) Factors that may affect future tax charges
At the year end, after offset against income taxable on receipt, there is a potential deferred tax asset of £1,903,000 (2023 -
£1,276,000) in relation to surplus management expenses. It is unlikely that the fund will generate sufficient taxable profits in the
future to utilise these amounts and therefore no deferred tax asset has been recognised.
Notes to the Financial Statements continued
Section 5 l Financial Statements 71
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9. Dividends on Ordinary shares
Year ended
31 December 2024
£’000
Year ended
31 December 2023
£’000
Amounts recognised as distributions to equity holders in the year:
Fourth interim dividend 2023 - 4.25p per Ordinary share (2022 - 3.10p) 7,100 5,263
First interim dividend 2024 - 2.55p per Ordinary share (2023 - 2.50p) 4,155 4,227
Second interim dividend 2024 - 2.55p per Ordinary share (2023 - 2.50p) 4,043 4,216
Third interim dividend 2024 - 2.55p per Ordinary share (2023 - 2.50p) 3,914 4,202
19,212 17,908
Following the change of tax residency on 1 January 2022, the Company needs to comply with the UK investment trust retention
test to satisfy s.1158 of the Corporation Tax Act 2010. The total dividends payable in respect of the financial year which form the
basis of s.1158 of the Corporation Tax Act 2010 are set out below. The revenue available for distribution by way of dividend for the
year is £18,066,000 (2023 - £20,194,000).
2024
£’000
2023
£’000
First interim dividend 2024 - 2.55p per Ordinary share (2023 - 2.50p) 4,155 4,227
Second interim dividend 2024 - 2.55p per Ordinary share (2023 - 2.50p) 4,043 4,216
Third interim dividend 2024 - 2.55p per Ordinary share (2023 - 2.50p) 3,914 4,202
Fourth interim dividend 2024 - 6.78p per Ordinary share (2023 - 4.25p) 10,148 7,100
22,260 19,745
The fourth interim dividend for 2024, amounting to £10,148,000 (2023 - fourth interim dividend of £7,100,000), is not recognised as a
liability in these financial statements as it was announced and paid after 31 December 2024.
72 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
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10. Earnings per share
Ordinary shares. The earnings per Ordinary share is based on the profit after taxation of £34,212,000 (2023 - £8,744,000) and on
159,233,450 (2023 - 168,693,861) Ordinary shares, being the weighted average number of Ordinary shares in issue during the year
excluding Ordinary shares held in treasury, which do not carry the rights to vote or to dividends.
The earnings per Ordinary share detailed above can be further analysed between revenue and capital as follows:
Year ended
31 December 2024
Year ended
31 December 2023
Revenue Capital Tota l Revenue Capital Total
Net profit/(loss) (£’000) 18,066 16,146 34,212 20,194 (11,450) 8,744
Weighted average number of Ordinary
shares in issue
A
159,233,450 168,693,861
Return per Ordinary share (pence) 11.35 10.14 21.49 11.97 (6.79) 5.18
A
Calculated excluding Ordinary shares held in treasury.
11. Investments held at fair value through profit or loss
Year ended
31 December 2024
£’000
Year ended
31 December 2023
£’000
Opening book cost 339,747 346,553
Opening investment holding gains 89,889 101,770
Opening fair value 429,636 448,323
Analysis of transactions made during the year
Purchases at cost 208,734 142,526
Sales proceeds received (252,701) (152,756)
Realised gains on investments 40,418 24,522
Realised losses on investments (19,804) (21,098)
Decrease in unrealised gains on investments (5,077) (10,412)
Decrease/(increase) in unrealised losses on investments 4,835 (1,469)
Closing fair value 406,041 429,636
£'000 £'000
Closing book cost 316,394 339,747
Closing investment gains 89,647 89,889
Closing fair value 406,041 429,636
Notes to the Financial Statements continued
Section 5 l Financial Statements 73
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
The Company generated £252,701,000 (2023 - £152,756,000) from investments sold in the year. The book cost of these investments
when they were purchased was £232,087,000 (2023 - £149,332,000). 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.
The portfolio valuation
Year ended
31 December 2024
£’000
Year ended
31 December 2023
£’000
Listed on recognised stock exchanges:
Equities - overseas 406,041 426,315
Bonds - overseas - 3,321
Tot a l 406,041 429,636
Transaction costs. During the year expenses were incurred in acquiring or disposing of investments held at fair value through profit
or loss. These have been expensed through capital and are included within gains/(losses) on financial investments held at fair value
through profit or loss in the Statement of Comprehensive Income. The total costs were as follows:
Year ended
31 December 2024
£’000
Year ended
31 December 2023
£’000
Purchases 166 120
Sales 301 209
467 329
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.
12. Debtors: amounts falling due within one year
Year ended
31 December 2024
£’000
Year ended
31 December 2023
£’000
Prepayments and accrued income 1,421 2,913
None of the above assets are past their due date or impaired.
74 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
13. Creditors: amounts falling due within one year
(a) Bank loans. At the year end, the Company had the following unsecured bank loans:
2024 2023
Interest
rate
%
Local
currency
principal
amount
Carrying
amount
£’000
Interest
rate
%
Local
currency
principal
amount
Carrying
amount
£’000
Unsecured bank loans repayable
Hong Kong Dollar 5.359 73,500,000 7,555 6.609 73,500,000 7,384
United States Dollar 5.580 8,850,000 7,067 6.634 8,850,000 6,942
Sterling 5.700 17,800,000 17,800 6.420 7,800,000 7,800
Sterling - - - 1.530 10,000,000 9,997
Tot a l 32,422 32,123
During the year, the Company had a £40 million multi currency revolving loan facility agreement with Bank of Nova Scotia,
London Branch. The Company also had a three year loan of £10 million with Bank of Nova Scotia, London Branch at a
fixed interest rate of 1.53%. Both facilities matured on 1 March 2024. Financial covenants contained within the relevant
loan agreements provided, inter alia, that the Company’s NAV shall at no time be less than £185 million and that adjusted
NAV coverage shall at no time be less than 4.0 to 1.0. At 31 December 2024 adjusted NAV coverage was 11.7 to 1.0 based
on borrowings of £32,422,000 and net assets were £377,895,000. The Company has complied with all financial covenants
throughout the year.
On 1 March 2024, the £10 million fixed rate loan was repaid in full and the Company renewed its £40 million multi currency
revolving credit facility with a £50 million loan for one year with Bank of Nova Scotia, London Branch, its existing lender. Under
the terms of the revolving credit facility, the Company also has the option to increase the level of the commitment from £50
million to £70 million at any time, subject to the Lender’s credit approval.
At the date of signing this report, loans of HKD73,500,000, US$8,850,000 and £17,8 00,000 were drawn down at variable interest
rates of 4.963%, 5.28% and 5.404% respectively.
(b) Other payables
2024
£’000
2023
£’000
Investment management fees 371 1,093
Amounts due to brokers 4,217 –
Other amounts due 200 410
4,788 1,503
Amounts falling due in more than one year:
2024
£’000
2023
£’000
(c) Deferred tax liability on Indian capital gains 1,706 1,615
Notes to the Financial Statements continued
Section 5 l Financial Statements 75
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
14. Analysis of changes in financing during the year
2024
£’000
2023
£’000
Opening balance at 1 January 32,123 40,967
Net decrease in loan drawdown - (8,000)
Amortisation of loan arrangement expenses 3 16
Foreign exchange movements 296 (860)
Closing balance at 31 December 32,422 32,123
15. Stated capital
Ordinary shares
(number)
Treasury shares
(number)
Total shares
(number) £’000
Authorised Ordinary shares of no par value Unlimited Unlimited Unlimited Unlimited
Issued and fully paid Ordinary shares of no par value
At 31 December 2023 167,178,707 27,754,682 194,933,389 194,933
Shares purchased for treasury (16,872,215) 16,872,215 - -
At 31 December 2024 150,306,492 44,626,897 194,933,389 194,933
During the year 16,872,215 (2023 - 2,653,694) Ordinary shares were bought back by the Company for holding in treasury at a total
cost of £35,973,000 (2023 - £5,415,000). At the year end 44,626,897 (2023 - 27,754,682) Ordinary shares were held in treasury, which
represents 22.89% (2023 - 14.24%) of the Company’s total issued share capital at 31 December 2024.
For each Ordinary share issued £1 is allocated to stated capital, with the balance taken to the capital reserve.
The Ordinary shares give shareholders the entitlement to all of the capital growth in the Company’s assets and to all the income
from the Company that is resolved to be distributed.
Since the year end a further 3,927,318 Ordinary shares have been bought back for holding in treasury at a cost of £8,717,000.
Voting and other rights. In accordance with the Articles of Association of the Company, on a show of hands, every member (or duly
appointed proxy) present at a general meeting of the Company has one vote; and, on a poll, every member present in person or by
proxy shall have one vote for each Ordinary share held, excluding shares held in treasury.
The Ordinary shares carry the right to receive all dividends declared by the Company or the Directors, excluding shares held in
treasury.
On a winding-up, provided the Company has satisfied all of its liabilities, holders of Ordinary shares are entitled to all of the surplus
assets of the Company, excluding shares held in treasury.
76 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
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Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
16. Capital reserve
2024
£’000
2023
£’000
At 1 January 187,549 204,414
Net currency (losses)/gains
A
(773) 701
Overseas dividend capital - 32
Movement in unrealised fair value (242) (11,881)
Profit on realisation of investments 20,614 3,424
Costs charged to capital (3,453) (3,726)
Buyback of Ordinary shares for treasury (35,973) (5,415)
At 31 December 167,722 187,549
A
Gains/(losses) arising during the year have principally arisen from a revaluation of the foreign currency bank loans offset by a revaluation of foreign currency
cash held.
17. Net asset value per share
Ordinary shares. The net asset value per Ordinary share and the net asset values attributable to Ordinary shareholders at the year
end calculated in accordance with the Articles of Association were as follows:
Net asset value
per share
2024
p
Net asset values
attributable
2024
£’000
Net asset value
per share
2023
p
Net asset values
attributable
2023
£’000
Ordinary shares 251.42 377,895 238.59 398,868
The net asset value per Ordinary share is based on 150,306,492 (2023 - 167,178,707) Ordinary shares, being the number of Ordinary
shares in issue at the year end excluding Ordinary shares held in treasury.
18. Financial instruments
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, other than derivatives, comprise securities and other investments,
cash balances, bank 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 abrdn Asia under the terms of its management agreement with abrdn
Asia (further details of which are included under note 5). The Board regularly reviews and agrees policies for managing each of
the key financial risks identified with the Investment 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, with the exception of short-term
borrowings.
Notes to the Financial Statements continued
Section 5 l Financial Statements 77
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
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Risk management framework. The directors of abrdn Asia collectively assume responsibility for the Manager’s obligations under the
AIFMD including reviewing investment performance and monitoring the Company’s risk profile during the year.
abrdn Asia is a fully integrated member of the abrdn plc Group (the “Group”), which provides a variety of services and support to
abrdn Asia in the conduct of its business activities, including in the oversight of the risk management framework for the Company.
abrdn Asia is responsible for the day to day administration of the investment policy and 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 Investment 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 Head of Risk, who reports to the Chief Executive
Officer 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 Internal Audit Department is independent of the Risk Division and reports directly to the Group Chief Executive Officer
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 Group’s corporate governance structure is supported by several committees to assist the board of directors of abrdn plc, 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 on the committees’ terms of reference.
Risk management. The main risks arising from the Company’s financial instruments are (i) market risk (comprising interest rate risk,
currency risk and equity price risk), (ii) liquidity risk, (iii) credit risk and (iv) gearing risk.
The Board regularly reviews and agrees policies for managing each of these risks. The Manager’s policies for managing each of
these risks are summarised below and have been applied throughout the year. The numerical disclosures exclude short-term
receivables and payables with the exception of the credit risk of short-term debtors.
(i) Market risk. The fair value or future cash flows of 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 equity price risk.
Interest rate risk. Interest rate risk is the risk that interest rate movements may affect:
● the fair value of the investments in fixed interest rate securities;
● the level of income receivable on cash deposits;
● the interest payable on the Company’s variable rate borrowings.
Management of the risk
Financial assets. Although the majority of the Company’s financial assets comprise equity shares which neither pay interest
nor have a stated maturity date, at the year end the Company had one (2023 - two) holdings in fixed rate overseas corporate
bonds, with G3 Exploration valued at £nil (2023 - £nil) and ICICI Bank not held at end of 2024 (2023 - £3,321,000). Bond prices
are determined by market perception as to the appropriate level of yields given the economic background. Key determinants
include economic growth prospects, inflation, the Government’s fiscal position, short-term interest rates and international market
comparisons. The Investment Manager takes all these factors into account when making any investment decisions as well as
considering the financial standing of the potential investee entity. G3 Exploration appointed joint liquidators during December 2019.
Using an adjusted net asset value model the Board of Directors decided to write down the value of G3 Exploration to £nil due to
concerns over liquidity, credit worthiness, exit opportunities and the timing of any potential receipts. There has been no change in
carrying value during the year under review or as at the date of this Report.
Returns from bonds are fixed at the time of purchase, as the fixed coupon payments are known, as are the final redemption
proceeds. This means that if a bond is held until its redemption date, the total return achieved is unaltered from its purchase date.
However, over the life of a bond the market price at any given time will depend on the market environment at that time. Therefore, a
bond sold before its redemption date is likely to have a different price to its purchase level and a profit or loss may be incurred.
78 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
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18. Financial instruments continued
Financial liabilities. The Company primarily finances its operations through use of equity, retained profits and bank borrowings.
Details of the terms and conditions of the bank borrowings are disclosed in note 13. Interest is due on the Bank of Nova Scotia,
London multi currency revolving loan facility on the maturity date, with the next interest payment being due on 6 January 2025 for
HKD loan, GBP loan and USD loans.
The Board actively monitors its bank borrowings. A decision on whether to roll over its existing borrowings is made prior to their
maturity dates, taking into account the Company’s ability to draw down fixed, long-term borrowings. The Company does not
employ any hedging against floating rate borrowings.
The interest rate profile of the Company (excluding short term debtors and creditors but including short term borrowings as stated
previously) was as follows:
At 31 December 2024
Weighted
average period
for which rate
is fixed
Ye a r s
Weighted
average
interest rate
%
Floating
rate
£’000
Fixed
rate
£’000
Assets
Cash at bank - Sterling - - 8,674 -
Cash at bank - Chinese Renminbi - - 3 -
Cash at bank -Taiwanese Dollar - - 670 -
Cash at bank - US Dollar - - 2 -
9,349 -
At 31 December 2024
Weighted
average period
for which rate
is fixed
Ye a r s
Weighted
average
interest rate
%
Floating
rate
£’000
Fixed
rate
£’000
Liabilities
Bank loan - Hong Kong Dollar 0.07 5.36 - (7,555)
Bank loan - US Dollar 0.07 5.58 - (7,067)
Bank loan - Sterling 0.07 5.70 - (17,800)
- (32,422)
Notes to the Financial Statements continued
Section 5 l Financial Statements 79
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
At 31 December 2023
Weighted
average period
for which rate
is fixed
Years
Weighted
average
interest rate
%
Floating
rate
£’000
Fixed
rate
£’000
Assets
Indian Overseas Corporate Bond 0.60 9.15 - 3,321
Cash at bank - Sterling - - 3,199 -
Cash at bank - Chinese Yuan - - (372) -
Cash at bank - Chinese CNY - - 373 -
Cash at bank - Hong Kong Dollar - - 2 -
Cash at bank - Indian Rupee - - (1,682) -
Cash at bank - Taiwan Dollar - - 40 -
1,560 3,321
At 31 December 2023
Weighted
average period
for which rate
is fixed
Years
Weighted
average
interest rate
%
Floating
rate
£’000
Fixed
rate
£’000
Liabilities
Bank loan - Hong Kong Dollar 0.05 6.61 - (7,384)
Bank loan - US Dollar 0.05 6.63 - (6,942)
Bank loans - Sterling 0.05 6.42 - (7,800)
Bank loans - Sterling 0.17 1.53 - (9,997)
- (32,123)
The weighted average interest rate is based on the current yield of each asset, weighted by its market value. The weighted average
interest rate on bank loans is based on the interest rate payable, weighted by the total value of the loans.
The floating rate assets consist of cash deposits on call earning interest at prevailing market rates.
All financial liabilities are measured at amortised cost using the effective interest rate method.
Interest rate sensitivity. The sensitivity analysis demonstrates the sensitivity of the Company’s profit for the year to a reasonably
possible change in interest rates, with all other variables held constant.
The sensitivity of the profit/(loss) for the year is the effect of the assumed change in interest rates on:
● the net interest income for one year, based on the floating rate financial assets held at the Balance Sheet date; and
● changes in fair value of investments for the year, based on revaluing fixed rate financial assets at the Balance Sheet date.
The Directors have considered the potential impact of a 100 basis point movement in interest rates and concluded that it would not
be material in the current year (2023 - not material). This consideration is based on the Company’s exposure to interest rates on its
floating rate cash balances, fixed interest securities and bank loans.
80 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
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18. Financial instruments continued
Foreign currency risk. A significant proportion of the Company’s investment portfolio is invested in overseas securities and the
Balance Sheet can be significantly affected by movements in foreign exchange rates. It is not the Company’s policy to hedge this
risk on a continuing basis. A significant proportion of the Company’s borrowings, as detailed in note 13, is in foreign currency as at
31December 2024.
Management of the risk. The revenue account is subject to currency fluctuation arising on overseas income. The Company does not
hedge this currency risk on a continuing basis but the Company may, from time to time, match specific overseas investment with
foreign currency borrowings.
The fair values of the Company’s monetary items that have foreign currency exposure at 31 December are shown below. Where
the Company’s equity investments (which are non-monetary items) are priced in a foreign currency, they have been included
within the equity price risk sensitivity analysis so as to show the overall level of exposure.
31 December 2024 31 December 2023
Equity
investments
£’000
Net monetary
assets/
(liabilities)
£’000
Tot a l
currency
exposure
£’000
Equity
investments
£’000
Net monetary
assets/
(liabilities)
£’000
Total
currency
exposure
£’000
Australian Dollar 68,047 - 68,047 77,929 - 77,929
Chinese Renminbi 14,931 3 14,934 10,266 1 10,267
Hong Kong Dollar 63,072 (7,555) 55,517 43,636 (7,382) 36,254
Indian Rupee 27,219 - 27,219 23,477 1,639 25,116
Indonesian Rupiah 9,914 - 9,914 8,371 - 8,371
Japanese Yen 4,013 - 4,013 4,197 - 4,197
New Zealand Dollar 4,241 - 4,241 4,278 - 4,278
Singapore Dollar 66,713 - 66,713 83,310 - 83,310
South Korean Won 14,226 - 14,226 37,145 - 37,145
Taiwanese Dollar 108,248 670 108,918 91,657 40 91,697
Thailand Baht 14,774 - 14,774 25,059 - 25,059
US Dollar 3,393 (7,065) (3,672) 6,474 (6,942) (468)
Tot a l 398,791 (13,947) 384,844 415,799 (12,644) 403,155
Notes to the Financial Statements continued
Section 5 l Financial Statements 81
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Foreign currency sensitivity. The following table details the impact on the Company’s net assets to a 10% decrease (in the context of
a 10% increase the figures below should all be read as negative) in sterling against the foreign currencies in which the Company has
exposure. The sensitivity analysis includes foreign currency denominated monetary items and adjusts their translation at the period
end for a 10% change in foreign currency rates.
2024
£’000
2023
£’000
Australian Dollar 6,805 7,793
Chinese Renminbi 1,493 1,027
Hong Kong Dollar 5,552 3,625
Indian Rupee 2,722 2,512
Indonesian Rupiah 991 837
Japanese Yen 401 420
New Zealand Dollar 424 428
Singapore Dollar 6,671 8,331
South Korean Won 1,423 3,715
Taiwanese Dollar 10,892 9,170
Thailand Baht 1,477 2,506
US Dollar (367) (47)
Tot a l 38,484 40,317
Equity price risk. Equity price risk (i.e. changes in market prices other than those arising from interest rate or currency risk) may
affect the value of the Company’s quoted equity investments.
Management of the 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. The allocation of assets to international markets and the stock
selection process, as detailed on pages 92 to 94, both act to reduce market risk. The Investment 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 recognised stock exchanges.
Concentration of exposure to equity price risks. A geographic analysis of the Company’s investment portfolio is shown on page 29,
which shows that the majority of the investments’ value is in the Asia Pacific region. It should be recognised that an investment’s
country of domicile or of listing does not necessarily equate to its exposure to the economic conditions in that country.
82 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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18. Financial instruments continued
Equity price risk sensitivity. The following table illustrates the sensitivity of the profit after taxation for the year and the equity to an
increase or decrease of 10% (2023 - 10%) in the fair values of the Company’s equities. This level of change is considered to be
reasonably possible based on observation of current market conditions. The sensitivity analysis is based on the Company’s equities
at each Balance Sheet date, with all other variables held constant.
2024 2023
Increase in
fair value
£’000
Decrease in
fair value
£’000
Increase in
fair value
£’000
Decrease in
fair value
£’000
Statement of Comprehensive Income –
profit after taxation
Capital return – increase/(decrease) 40,604 (40,604) 42,632 (42,632)
Total profit after taxation – increase/(decrease) 40,604 (40,604) 42,632 (42,632)
Equity
Capital reserve 40,604 (40,604) 42,632 (42,632)
(ii) Liquidity risk. This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities,
which stood at £38,916,000 (2023 - £35,241,000).
Management of the risk. Liquidity risk is not considered to be significant as the Company’s assets comprise mainly cash and
readily realisable securities, which can be sold to meet funding commitments if necessary and these amounted to £9,349,000 and
£406,041,000 (2023 - £1,560,000 and £429,636,000) at the year end respectively. Short-term flexibility is achieved through the use of
loan facilities.
Maturity profile. The following table sets out the undiscounted gross cash flows, by maturity, of the Company’s significant financial
liabilities and cash at the Balance Sheet date:
At 31 December 2024
Within
1 year
£’000
Between
1-5 years
£’000
Tot a l
£’000
Fixed rate
Bank loans 32,422 - 32,422
Interest on bank loans 164 - 164
32,586 - 32,586
Floating rate
Cash 9,349 - 9,349
Notes to the Financial Statements continued
Section 5 l Financial Statements 83
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At 31 December 2023
Within
1 year
£’000
Between
1-5 years
£’000
Tot a l
£’000
Fixed rate 32,123 - 32,123
Bank loans 162 - 162
Interest on bank loans 32,285 - 32,285
Floating rate
Cash 1,560 - 1,560
Details of the Company’s borrowing arrangements are disclosed in note 13 on page 74.
(iii) Credit risk. This is failure of the counterparty to a transaction to discharge its obligations under that transaction that could result
in the Company suffering a loss. The Company is exposed to credit risk on debt instruments. These classes of financial assets
are not subject to IFRS 9’s impairment requirements as they are measured at FVTPL. The carrying value of these assets, under
IFRS 9 represents the Company’s maximum exposure to credit risk on financial instruments not subject to the IFRS 9 impairment
requirements on the respective reporting dates (see table below “Credit Risk Exposure”).
The Company’s only financial assets subject to the expected credit loss model within IFRS 9 are only short-term other
receivables. At 31 December 2024, the total of short-term other receivables was £1,421,000 (2023 - £2,913,000). Given the
balance is not material an assessment of credit risk is not performed. No other assets are considered impaired and no other
amounts have been written off during the year.
All other receivables are expected to be received within twelve months or less. An amount is considered to be in default if it has
not been received on the due date.
As only other receivables are impacted by the IFRS 9 model, the Company has adopted the simplified approach. The loss
allowance is therefore based on lifetime ECLs.
Management of the risk. Where the Investment Manager makes an investment in a bond, corporate or otherwise, where
available, the credit rating of the issuer is taken into account so as to minimise the risk to the Company of default. The Company
has the following holdings:
● a Chinese overseas corporate bond issued by G3 Exploration with a book cost of £4,611,000. G3 Exploration appointed joint
liquidators during December 2019. Therefore the Board of Directors decided to write down the value of G3 Exploration to
£nil due to the uncertainty over the repayment of the debt. No interest for G3 Exploration has been accrued since the joint
liquidator was appointed.
● an Indian overseas corporate bond issued by ICICI Bank has matured at December 2024 (2023 - £3,321,000).
Each of the above bonds are non-rated. The Investment Manager undertakes an ongoing review of their suitability for inclusion
within the portfolio.
Investment transactions are carried out with a large number of brokers, whose credit rating is taken into account so as to minimise
the risk to the Company of default.
84 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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18. Financial instruments continued
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 daily basis. In addition, both stock and cash reconciliations to the Custodian’s records are performed on a daily basis
to ensure discrepancies are investigated 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. 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.
Cash is held only with reputable banks with high quality external credit ratings.
None of the Company’s financial assets are secured by collateral or other credit enhancements.
Credit risk exposure. In summary, compared to the amounts included in the Balance Sheet, the maximum exposure to credit risk at
31 December was as follows:
2024 2023
Balance Sheet
£’000
Maximum
exposure
£’000
Balance Sheet
£’000
Maximum
exposure
£’000
Non-current assets
Investments held at fair value through profit or loss 406,041 - 429,636 3,321
Current assets
Cash at bank 9,349 9,349 1,560 1,560
Other receivables 1,421 1,421 2,913 2,913
416,811 10,770 434,109 7,794
(iv) Gearing risk. The Company’s policy is to increase its exposure to equity markets through the judicious use of borrowings.
When borrowings are invested in such markets, the effect is to magnify the impact on shareholders’ funds of changes, both
positive and negative, in the value of the portfolio. As noted in note 2(l) on page 66 financial liabilities are classified under IFRS
9. The Company has not designated any financial liabilities at FVPL. Therefore, this requirement has not had an impact on the
Company. The loans are carried at amortised cost, using the effective interest rate method in the financial statements.
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. Borrowings comprise fixed rate, revolving, and uncommitted facilities. The fixed rate facilities
are used to finance opportunities at low rates and, the revolving and uncommitted facilities to provide flexibility in the short-
term.
Notes to the Financial Statements continued
Section 5 l Financial Statements 85
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
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19. Capital management policies and procedures
The Company’s capital management objectives are:
● to ensure that the Company will be able to continue as a going concern; and
● to maximise the income and capital return to its equity shareholders through an appropriate balance of equity capital and debt.
The policy is that debt should not exceed 25% of net assets.
The Company’s capital at 31 December comprises:
2024
£’000
2023
£’000
Debt
Borrowings under the multi-currency loan facility 32,422 32,123
32,422 32,123
2024
£’000
2023
£’000
Equity
Equity share capital 194,933 194,933
Retained earnings and other reserves 182,962 203,935
377,895 398,868
Debt as a % of net assets
A
8.58 8.05
A
The calculation above differs from the AIC recommended methodology, where debt levels are shown net of cash and cash equivalents held.
The Board, with the assistance of the Investment Manager monitors and reviews the broad structure of the Company’s capital on
an ongoing basis. This review includes:
● the planned level of gearing, which takes account of the Investment Manager’s views on the market;
● the need to buy back equity shares for cancellation or for holding in treasury, which takes account of the difference between
the net asset value per Ordinary share and the Ordinary share price (i.e. the level of share price discount);
● the need for new issues of equity shares; and
● 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.
86 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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20. Related party transactions and transactions with the Investment Manager
Fees payable during the period to the Directors are disclosed in note 6 on page 68 and within the Directors’ Remuneration Report
(unaudited) on pages 50 to 52, along with their interests in shares of the Company, totalling 87,128 (2023 - 70,601).
Mr Hugh Young, who was a Director of the Company until his retirement at the Annual General Meeting held on 10 May 2023, was
employed by the Company’s Investment Manager, abrdn Asia, which is a wholly-owned subsidiary of abrdn plc.
Investment management, promotional activities and administration services are provided by the abrdn group with details of
transactions during the year and balances outstanding at the year end disclosed in notes 5 and 6.
The Company also has an agreement with JTC Fund Solutions (Jersey) Limited for the provision of company secretarial and
administration services at a cost of £129,000 per annum, which the abrdn group has agreed to rebate in full from the investment
management fee which it receives.
21. Controlling party
In the opinion of the Directors on the basis of shareholdings advised to them, the Company has no immediate or ultimate controlling
party.
22. Fair value hierarchy
IFRS 13 ‘Fair Value Measurement’ requires an entity to classify fair value measurements using a fair value hierarchy that reflects the
significance of the inputs used in making measurements. The fair value hierarchy has the following levels:
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices); and
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The financial assets and liabilities measured at fair value in the Balance Sheet are grouped into the fair value hierarchy as follows:
At 31 December 2024 Note
Level 1
£’000
Level 2
£’000
Level 3
£’000
Tot a l
£’000
Financial assets at fair value through profit or loss
Quoted equities a) 406,041 - - 406,041
Quoted bonds b) - - - -
Net fair value 406,041 - - 406,041
At 31 December 2023 Note
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Financial assets at fair value through profit or loss
Quoted equities a) 426,315 - - 426,315
Quoted bonds b) - 3,321 - 3,321
Net fair value 426,315 3,321 - 429,636
Notes to the Financial Statements continued
Section 5 l Financial Statements 87
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(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 bonds. The fair value of the Company’s investments in quoted bonds has been determined by reference to their quoted
bid prices at the reporting date. Investments in quoted bonds are not considered to trade in active markets. There are no
holdings in quoted bonds as at 31 December 2024.
In October 2019 the Board of Directors took the decision to write down the value of G3 Exploration by 50% in light of interest
payment default and concerns over ongoing trading. At this point the G3 Exploration bond was reclassified as Level 3. G3
Exploration appointed joint liquidators during December 2019. Using an adjusted net asset value model the Board of Directors
decided to write down the value of G3 Exploration to £nil due to concerns over liquidity, credit worthiness, exit opportunities and
the timing of any potential receipts. There has been no change in carrying value during the year under review or as at the date
of this Report.
Fair value of financial assets. The Directors are of the opinion that the fair value of other financial assets is equal to the carrying
amounts in the Balance Sheet.
Fair values of financial liabilities. There is no fair value attributed to the borrowings as at 31 December 2024 given their short-
term nature. Under the fair value hierarchy in accordance with IFRS 13, these borrowings can be classified as Level 2 due to the
use of a discount rate as an observable input in the calculation of fair value.
88 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
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Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
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The Company engages in Securities Financing Transactions (SFTs) (as defined in Article 3 of Regulation (EU) 2015/2365, SFTs
include repurchase transactions, securities or commodities lending and securities or commodities borrowing, buy-sell back
transactions or sell-buy back transactions and margin lending transactions). In accordance with Article 13 of the Regulation, the
Fund’s involvement in and exposures related to securities lending for the accounting period are detailed below:
Absolute value of assets engaged in SFTs £’000
% of
lendable assets
% of assets
under management
31 December 2024
Securities lending - - -
31 December 2023
Securities lending - - -
Top ten collateral issuers and collateral received
Based on market value of collateral received.
For all issuers, only equity securities with a main market listing were lent and the custodian was BNP Paribas SA, London Branch.
2024 2023
Collateral held per custodian
Market value
of collateral held
£’000
Proportion held
in segregated
accounts
%
Market value
of collateral held
£’000
Proportion held
in segregated
accounts
%
BNP Paribas SA, London Branch – n/a – n/a
One custodian is used to hold the collateral, which is in a segregated account.
Securities Financing Transactions
Disclosure (Unaudited)
Section 5 l Financial Statements 89
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Top ten collateral issuers and collateral received continued
Market value
of collateral received
Collateral analysed by currency
2024
£’000
2023
£’000
All currencies – –
Total collateral received – –
Securities lending
Top Ten Counterparties per type of SFT
A
Market value
of securities lending
£’000
Countries of
counterparty
establishment
Settlement
and clearing
31 December 2024
Total market value of securities lending – N/A N/A
31 December 2023
Total market value of securities lending – N/A N/A
A
All counterparties are shown
Maturity Tenor of SFTs (remaining period to maturity)
31 December 2024
Securities lending
The lending and collateral transactions are on an open basis and can be recalled on demand. As at 31 December 2024 and
31December 2023 there were no securities on loan.
The Company does not engage in any re-use of collateral.
2024 2023
Return and cost per type of SFT £’000 % £’000 %
Securities lending
Gross return 53 100 5 100
Direct operational costs (securities lending agent costs)
B
(11) (20) (1) (20)
Indirect operational costs
(Investment Adviser operational costs) – – – –
Total costs (11) (20) (1) (20)
Net return 42 80 4 80
B
The unrounded direct operational costs and fees incurred for securities lending for the 12 months to 31 December 2024 is £10,629 (2023 – £1,105)
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
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90 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
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The Company’s Investment Manager is abrdn
Asia Limited, a subsidiary of abrdn plc, whose
group companies as at 31 December 2024 had
£511 billion of assets under management and
administration.
Corporate Information
Section 6 l Corporate Information 91
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Information about the Investment Manager
abrdn Asia Limited
The Company’s Investment Manager is abrdn Asia Limited
(“abrdn Asia”). abrdn Asia is based in Singapore and is a wholly-
owned subsidiary, and the Asia Pacific headquarters of, abrdn
plc (the “abrdn Group”), a publicly-quoted company on the
London Stock Exchange.
Worldwide, the abrdn Group manages and administers a
combined £511 billion (as at 31 December 2024) in assets for a
range of clients, including individuals and institutions, through
mutual and segregated funds, and 14 UK-listed closed end
investment companies.
The abrdn Group has its headquarters in Edinburgh with
offices in London, Aberdeen, Singapore, Hong Hong, Shanghai,
Bangkok and Philadelphia.
The Investment Team Senior Managers
Isaac Thong will be joining Aberdeen as a Senior Investment
Director in the Asian Equities team. Isaac is joining Aberdeen
from JP Morgan where he was co-manager of JPMorgan
Global Emerging Markets Income Trust PLC and JPMorgan
Emerging Markets Income Fund. Isaac graduated with a
Bachelor of Commerce with joint honours in Finance and
Economics from McGill University, Quebec and is a CFA®
Charterholder.
Isaac Thong
Senior Investment
Director, Asian Equities
Eric Chan is an Investment Director in the Asian Equities team at
abrdn. He joined the company in May 2023 from Allianz Global
Investors where he was part of the team which managed Asia
ex Japan small and mid-cap equity portfolios. Eric graduated
with a MSc in Accounting and Finance from the London School
of Economics and a BA from Bowdoin College (USA) where he
studied physics and economics. He is a CFA® charterholder.
Eric Chan
Investment Director,
Asian Equities
92 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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The Investment Process
The Investment Manager’s approach to equity investing is
underpinned by three core investment beliefs.
Fundamental research delivers insights that can be used to
exploit market inefficiencies. In the Investment Manager’s view,
company fundamentals ultimately drive share prices but are
often valued inefficiently in the shorter term. The Investment
Manager believes that fundamental research is the key to
delivering insights that allows it to exploit these inefficiencies
and identify the best investment opportunities for client
portfolios.
ESG assessment and corporate engagement enhance returns. The
Investment Manager places constructive engagement and
environmental, social and governance (“ESG”) considerations
at the heart of company research, ensuring it is a responsible
steward of its clients’ assets. The Investment Manager believes
that this approach can mitigate risks and enhance returns for
its clients, as companies with robust ESG practices tend to enjoy
long-term financial benefits.
Disciplined, active investment can deliver superior outcomes for
clients. The Investment Manager aims to build high conviction
portfolios where its stock-specific insights drive performance,
giving its clients access to its best investment ideas.
Our research drives performance
Idea Generation
Universe c. 990 stocks
Broad Universe
● Wide & dynamic
opportunity set
● Quantitative tools refine
overage
● Oustanding corporate
access
● Deep sector expertise
Research
Extensive coverage c. 300
stocks
Deep analysis
● Common investment
language
● ESG considerations
● Clear non-concensus
insights
● Continuous review of
outputs
Peer Review
Buy Recommendation
c.200 stocks
Rigorous Team Debate
● Informed peer review of
insights
● Collaborations on sectors &
themes
● Cross asset class insights
Portfolio construction
40 - 70 stocks
Focused on Client
Outcomes
● Pods drive clear
accountability
● Bottom up, best idea led
● Quant and risk analytics
● Effective diverstification
Environmental, Social Governance considerations
Comprehensive independent oversight of investment process and client mandate parameters
Idea Generation
Research coverage is organised on a sector basis, with analysts
developing deep expertise which enables them to identify
investment opportunities through fundamental knowledge at
both the sector and stock level. The Investment Manager also
uses quantitative screening tools and risk tools to help it identify
interesting stock opportunities and the most appropriate
coverage universe.
Research
The Investment Manager has developed a proprietary research
platform used by all its equity, credit and ESG teams, giving
instant access to research globally. The research is focused on
four key areas:
● Foundations – the Investment Manager analyses how
a company makes money, the attractiveness and
characteristics of its industry, and the strength and
sustainability of the economic ‘moat’. This includes a
thorough evaluation of the ESG risks and opportunities of
the company. Face-to-face meetings anchor how the
Investment Manager understands and challenges the
key elements of a company’s fundamentals: the evolution
and growth of the business; the sustainable competitive
advantage; management’s track record of execution and
managing risk; past treatment of minority shareholders;
the balance sheet and financials; and ESG risks and
opportunities of the company in question.
● Dynamics – the shorter and longer-term dynamics of a
business that will be the key determinants of its corporate
value over time. Specifically, the Investment Manager looks
for changes in the factors driving the market price of a
stock, identifying the drivers that the wider market may not
be pricing in. Understanding the dynamics behind these
drivers allows the Investment Manager to focus on the
factors that will drive shareholder returns from a particular
company.
Section 6 l Corporate Information 93
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Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
● Financials and Valuation – the Investment Manager
examines the strengths and weaknesses of a company’s
financials including a thorough analysis of the balance
sheet, cash flow and accounting, the market’s perception
of the company’s future prospects and value, and its own
forecasts of future financials and how the shares should
be priced. This includes significant focus on the dividend
paying capability of each business, the potential for
dividend growth and the sustainability of the distribution.
● Investment insight and risk – the Investment Manager
articulates its investment thesis, explaining how it views a
company differently from the market consensus and how it
expects to crystallise value from the holding over time.
Peer Review
Having a common investment language facilitates effective
communication and comparison of investment ideas through
peer review which is a critical part of the process. All investment
ideas are subject to rigorous peer review, both at regular
meetings and on an ad hoc basis – and all team members
debate stocks, meet companies from all industries, and are
incentivised to fully participate in the entire process.
Portfolio Construction/Risk Controls
Portfolios are built from the bottom up, prioritising high
conviction stock ideas in a risk aware framework, giving clients
access to the best investment ideas. Portfolio risk budgets
are derived from clients’ investment objectives and required
outcomes. Peer review is an essential component of the
construction process with dedicated portfolio construction
pods (smaller dedicated groups of senior team members that
have clear accountability for the strategy) debating holdings,
portfolio structure and risk profiles.
As an active equity investor the Investment Manager has
adopted a principled portfolio construction process which
actively takes appropriate and intentional risk to drive returns.
The largest component of the active risk will be stock-specific
risk, along with appropriate levels of diversification. Risk
systems monitor and analyse risk exposures across multiple
perspectives, breaking down the risk within the portfolio by
industry and country factors, by currency and macro factors,
and by other fundamental factors (quality, momentum, etc.).
Consideration of risk starts at the stock level with the rigorous
company research helping the Investment Manager to avoid
stock specific errors. The Investment Manager ensures that
any sector or country risk is appropriately sized and managed
relative to the overall objectives of the Company.
Operational Risk and Independent Governance
Oversight
Risk management is an integral part of the Investment
Manager’s process and portfolios are formally reviewed
on a regular basis with the Investment Manager’s Global
Head of Equities, the portfolio managers, the Investment
Manager’s Investment Governance & Oversight Team (“IGO”)
and members of the Investment Risk Team. This third party
oversight both monitors portfolio risk and also oversees
operational risk to ensure client objectives are met.
Environmental, Social and Governance (“ESG”)
Considerations
The Investment Manager has been actively integrating ESG
into its investment decision-making process for over 30 years
and believes that the consideration of sustainability risks and
opportunities can have a material impact on long-term returns
for investors. The Company is managed using an investment
process that considers ESG factors but does not promote
ESG characteristics or have specific sustainable investment
objectives. This means that, whilst ESG factors and risks are
considered, they may or may not impact portfolio construction.
The Investment Manager believes that a company’s ability
to sustainably generate returns for investors includes the
management of its environmental impact, its consideration
of the interests of society and stakeholders, and on the way
it is governed. In particular, the Investment Manager believes
that ESG can benefit single-stock returns and portfolio risk and
return, and that ESG integration can lead to lower risk.
By considering ESG factors, the Investment Manager aims to
generate better performance outcomes for the Company’s
shareholders.
Engagement Activity
The Investment Manager is committed to regular, ongoing
engagement with the companies in which it invests, to help to
maintain and enhance their ESG standards.
As part of the investment process, the Investment Manager
undertakes a significant number of company meetings each
year on behalf of the Company. The team is supported by
on-desk ESG analysts, and a well-resourced specialist ESG
Investment team. These meetings provide an opportunity
to discuss various relevant ESG issues including board
composition, remuneration, audit, climate change, labour
issues, human rights, bribery and corruption. Companies are
strongly encouraged to set clear targets or key performance
indicators on all material ESG risks.
This engagement is not limited to a company’s management. It
can include many other stakeholders such as non-government
agencies, industry and regulatory bodies, as well as activists
and the company’s customers and clients.
The Investment Manager’s
Investment Process continued
94 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
The following chart shows the engagements that have
included ESG topics. Over the year to 31 December 2024 the
Investment Manager met with 19 portfolio companies with
ESG among the key issues discussed with them. These are the
themes that the Investment Manager has engaged on:
Climate (18%)
Environment (9%)
Labour Management (18%)
Human Rights &
Stakeholders (10%)
Corporate Behaviour (11%)
Corporate Governanc
e (34%)
Our Voting Activity
Voting Summary Total
How many meetings were you eligible to vote at? 60
How many meetings did you vote at? 60
How many resolutions were you eligible to vote on? 530
What % of resolutions did you vote on for which you
were eligible? 100%
Of the resolutions on which you voted, what % did
you vote with management? 94.7%
Of the resolutions on which you voted, what % did
you vote against management? 4.9%
Of the resolutions on which you voted, what % did
you abstain from voting? 0.4%
In what % of meetings, for which you did vote, did
you vote at least once against management? 26.7%
Whilst the Investment Manager focuses on investing in quality
companies, the investment team is aware that in some
cases Asian companies can lag those in Western Europe
in terms of ESG. This is perhaps more true of emerging Asia
than developed Asia. In investing across Asia, the Investment
Manager focuses on companies and management teams
exhibiting desirable behavioural traits and characteristics
(for example, a track record of fair treatment of minority
shareholders, thoughtful capital allocation and return) rather
than a strict focus on structures (for example, relating to board
composition). Subsequent to an investment, the Investment
Manager engages energetically with companies to improve
and enhance ESG, aiming to encourage companies to
implement processes and practises that will protect and
enhance shareholder value. The Investment Manager has a
long track record of such constructive engagement, drawing
on investment experiences globally to bring these insights to
the Company’s holdings.
How the Investment Manager Approaches ESG continued
The Investment Process continued
Section 6 l Corporate Information 95
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Alternative Investment Fund Managers Directive
(“Directive”)
In accordance with the Alternative Investment Funds (Jersey)
Regulations 2012, the Jersey Financial Services Commission
(“JFSC”) has granted permission for the Company to be
marketed within any EU Member State or other EU State to
which the Directive applies. The Company’s registration
certificate with the JFSC is conditioned such that the Company
“must comply with the applicable sections of the Codes of
Practice for Alternative Investment Funds and AIF Services
Business”.
abrdn Asia Limited, as the Company’s non-EEA alternative
investment fund manager, has notified the UK Financial
Conduct Authority (“FCA”) in accordance with the
requirements of the UK National Private Placement Regime of
its intention to market the Company (as a non-EEA AIF under
the Directive) in the UK.
In addition, in accordance with Article 23 of the Directive and
Rule 3.2.2 of the FCA’s Fund Sourcebook, abrdn Asia Limited
is required to make available certain disclosures for potential
investors in the Company. These disclosures, in the form of a
Pre-Investment Disclosure Document (“PIDD”), are available on
the Company’s website. The periodic disclosures required to be
made by the Investment Manager under the AIFMD are set out
on page 100.
Investor Warning
The Board has been made aware by abrdn that some investors
have received telephone calls from people purporting to
work for abrdn, or third parties, who have offered to buy their
investment company shares. These may be scams which
attempt to gain personal information with which to commit
identity fraud or could be ‘boiler room’ scams where a payment
from an investor is required to release the supposed payment
for their shares.
These callers do not work for abrdn and any third party making
such offers has no link with the abrdn Group. abrdn never
makes these types of offers and does not ‘cold-call’ investors in
this way. If investors have any doubt over the veracity of a caller,
they should not offer any personal information and end the call.
The Financial Conduct Authority provides advice with respect
to share fraud and boiler room scams at: fca.org.uk/consumers/
scams.
Shareholder Enquiries
Registered Shareholders
In the event of queries regarding their holdings of shares,
lost certificates, dividend payments, registered details, etc,
registered shareholders holding their shares in the Company
directly should contact the Registrar, Computershare Investor
Services (Jersey) Limited, 13 Castle Street, St Helier, Jersey
JE1 1ES (info@computershare.co.je) or Tel: 0370 707 4040.
Lines are open 8.30 a.m. to 5.30 p.m. Monday to Friday.
Changes of address must be notified to the Registrar in writing.
General Enquiries
Any general enquiries about the Company should be directed
to the Company Secretary, abrdn Asian Income Fund Limited,
c/o JTC Fund Solutions (Jersey) Limited, 28 Esplanade, St Helier,
Jersey JE2 3QA or by emailing asian.income@aberdeenplc.com.
How to Invest
Investors can buy and sell shares in the Company directly
through a stockbroker or indirectly through a lawyer,
accountant or other professional adviser.
Alternatively, for private investors, there are a number of online
dealing platforms that offer share dealing, ISAs and other
means to invest in the Company. Real-time execution-only
stockbroking services allow you to trade online, manage your
portfolio and buy UK listed shares. These sites do not give
advice. Some comparison websites also look at dealing rates
and terms.
Investors can, using certain platforms, arrange to have
dividends reinvested or establish regular savings to invest in
the shares of the Company. This can also be done under the
auspices of an ISA which provides tax efficiencies for private
investors in the treatment of income and capital gains.
Discretionary Private Client Stockbrokers
If you have a large sum to invest, you may wish to contact a
discretionary private client stockbroker. They can manage
your entire portfolio of shares and will advise you on your
investments. To find a private client stockbroker visit The
Personal Investment Management and Financial Advice
Association at pimfa.co.uk.
Financial Advisers
To find an adviser who recommends on investment companies,
visit unbiased.co.uk.
Regulation of Stockbrokers
Before approaching a stockbroker, always check that they are
regulated by the Financial Conduct Authority at: fca.org.uk/
firms/financial-services-register.
Closure of the abrdn Investment Trust Savings Plans
(the “Plans”)
In June 2023, abrdn notified investors in the abrdn Investment
Trust ISA, Share Plan and Investment Plan for Children that
these plans would be closing in December 2023. All investors
with a holding or cash balance at that time transferred to
Interactive Investor (“ii”). ii communicated with investors in
November 2023 to set up account security to ensure that
investors could continue to access their holdings via ii following
the closure of the Plans.
Please contact ii for any ongoing support with your account
on 0345 646 1366, or +44 113 346 2309 if you are calling from
outside the UK. Lines are open 8.00 a.m. to 5.00 p.m. Monday
to Friday. Alternatively you can access the ii website at:
ii.co.uk/abrdn-welcome.
Investor Information
96 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
How to Attend and Vote at Company Meetings
Investors who hold their shares through a platform or share
plan provider (for example Hargreaves Lansdown, Interactive
Investor or AJ Bell) and would like to attend and vote at
Company meetings (including AGMs) should contact their
platform or share plan provider directly to make arrangements.
Investors who hold their shares through platforms and
have their shares held through platform nominees may not
necessarily receive notification of general meetings and are
advised to keep themselves informed of Company business by
referring to its website. Where voting is required, and the Board
encourages shareholders to vote at all general meetings of the
Company, shareholders with their holdings in nominees will
need to instruct the nominee to vote on their behalf and should
do so in good time before the meetings.
Keeping You Informed
Information on the Company, including the share price,
performance information, stock exchange announcements,
current and historic Annual and Half-Yearly Reports, and
the latest monthly fact sheet is available from its website
(asian-income.co.uk). Investors can receive updates via email
by registering on the home page of the Company’s website.
Details are also available at: invtrusts.co.uk.
LinkedIn: aberdeen Investment Trusts
X: @aberdeenTrusts
Facebook: aberdeen Investment Trusts
YouTube: @aberdeenInvestmentTrusts
Key Information Document (“KID”)
The KID relating to the Company and published by the
Investment Manager can be found on the Company’s website.
Suitable for Retail/NMPI Status
The Company’s securities are intended for investors primarily in
the UK (including retail investors), professionally-advised private
clients and institutional investors who are wanting to benefit
from the income and growth potential of Asian companies by
investment in an investment company and who understand
and are willing to accept the risks of exposure to equities.
Investors should consider consulting a financial adviser who
specialises in advising on the acquisition of shares and other
securities before acquiring shares. Investors should be capable
of evaluating the risks and merits of such an investment and
should have sufficient resources to bear any loss that may
result.
The Company currently conducts its affairs so that its securities
can be recommended by a financial adviser to ordinary retail
investors in accordance with the FCA’s rules in relation to
non-mainstream pooled investments (“NMPIs”) and intends to
continue to do so for the foreseeable future.
The Company’s securities are excluded from the FCA’s
restrictions which apply to NMPIs because the Company
qualifies as an investment trust.
The above information on pages 95 and 96 has been approved
for the purposes of Section 21 of the Financial Services and
Markets Act 2000 (as amended by the Financial Services Act
2012) by abrdn Investments Limited which is authorised and
regulated by the Financial Conduct Authority in the United
Kingdom.
Investor Information continued
Section 6 l Corporate Information 97
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
abrdn Asia or Investment Manager
abrdn Asia Limited – the Company’s Investment Manager and
wholly-owned subsidiary of abrdn plc.
abrdn Group
The abrdn plc group of companies.
abrdn Investments
abrdn Investments Limited – the Company’s UK administrator
and wholly-owned subsidiary of abrdn plc.
AIC
The Association of Investment Companies – the AIC is the trade
body for closed-ended investment companies (theaic.co.uk).
AIFMD
The UK version of the Alternative Investment Fund Managers
Directive and all implementing and delegating legislation
thereunder, as it forms part of UK law following the UK’s
departure from the EU. The AIFMD was originally European
legislation which created a European-wide framework
for regulating managers of ‘alternative investment funds’
(AIFs). It is designed to regulate any fund which is not a UCITS
(Undertakings for Collective Investments in Transferable
Securities) fund and which is managed/marketed in the EU (and
now, separately, the UK). The Company has been designated
as an AIF.
Asset Cover
The value of a company’s net assets available to repay a
certain security. Asset cover is usually expressed as a multiple
and calculated by dividing the net assets available by the
amount required to repay the specific security.
Derivative
A derivative is a financial security with a value that is reliant
upon or derived from an underlying asset or group of assets.
The derivative itself is a contract between two or more parties
based upon the asset or assets. Its price is determined by
fluctuations in the underlying asset.
Disclosure Guidance and Transparency Rules or DTRs
The DTRs contain requirements for publishing and distributing
annual financial reports, half-yearly financial reports and
other regulatory statements, and are applicable to investment
companies which are listed on the main market of the London
Stock Exchange.
Discount
The amount by which the market price per share of an
investment company is lower than the NAV per share. The
discount is normally expressed as a percentage of the NAV per
share.
Dividend Cover
Earnings per share divided by dividends per share expressed as
a ratio.
Dividend Yield
The annual dividend expressed as a percentage of the share
price.
Financial Conduct Authority or FCA
The regulator of financial services firms and financial markets
in the UK.
Index
MSCI AC Asia Pacific ex Japan Index (currency adjusted).
JFSC
Jersey Financial Services Commission.
JTC
JTC Fund Solutions (Jersey) Limited – the Company’s Jersey-
based Administrator and Company Secretary.
Key Information Document or KID
UK regulation previously required the Investment Manager to
make a KID available to retail investors prior to them making
any investment decision. On 22 November 2024, new legislation
came into force in the UK which meant that manufacturers,
advisors and sellers of shares in a closed-ended investment
company that is UK-listed are no longer required to produce the
KID.
However, the Investment Manager continues to publish a
modified KID for the Company because a number of platforms/
market participants still require prospective investors to confirm
that they have read the KID prior to a buy order being placed.
The modified KID is available via the Company’s website. In
addition to the KID, the Investment Manager has developed
a Statement of Operating Expenses which is incorporated
into the Company’s factsheet and can also be found on the
Company’s website.
Net Asset Value or NAV
The value of total assets less liabilities. Liabilities for this purpose
include current and long-term liabilities. The NAV divided by the
number of shares in issue (excluding all shares held in treasury)
produces the NAV per share.
Net Gearing
Net gearing is calculated by dividing Total Assets (as defined
below) less cash or cash equivalents by shareholders’ funds
expressed as a percentage (the AIC basis).
Official List
The FCA’s Official List is the definitive record of whether a
company’s securities are officially listed in the UK.
Ongoing Charges Ratio
Ratio of expenses as a percentage of average daily
shareholders’ funds calculated as per the industry standard
method.
Glossary of Terms
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
98 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Ordinary Shares
The Company’s Ordinary shares give shareholders the
entitlement to all of the capital growth in the Company’s assets
and to all the income from the Company that is resolved to be
distributed. The Ordinary shares are in registered form and
traded on the London Stock Exchange’s Main Market. Subject to
the Articles of Association, on a show of hands every registered
holder of Ordinary shares (a shareholder) who is present in
person (or, being a corporation, by representative) shall have
one vote. On a poll every shareholder present in person (or,
being a corporation, by representative) or by proxy shall be
entitled to one vote in respect of each Ordinary share held. In
the case of joint holders, the vote of the senior who tenders a
vote, whether in person or by proxy, shall be accepted to the
exclusion of the votes of the other joint holders, and for this
purpose seniority shall be determined by the order in which the
names stand in the register of members.
PIDD
The pre-investment disclosure document. The disclosures
that are required to be made to investors by the Investment
Manager and the Company in accordance with the AIFMD.
Premium
The amount by which the market price per share of an
investment company exceeds the NAV per share. The premium
is normally expressed as a percentage of the NAV per share.
Price/Earnings Ratio
The ratio is calculated by dividing the price per share by the
earnings per share. The calculation assumes no change in
earnings but in practice the multiple reflects the stock market’s
view of a company’s prospects and profit growth potential.
Prior Charges
The name given to all borrowings including debentures, loan
and short-term loans and overdrafts that are to be used
for investment purposes, reciprocal foreign currency loans,
currency facilities to the extent that they are drawn down,
index-linked securities, and all types of preference or preferred
capital and the income shares of split capital trusts, irrespective
of the time until repayment.
Total Assets
Total Assets less current liabilities (before deducting prior
charges as defined above) and long-term liabilities relating to
deferred tax.
Total Return
Total Return involves reinvesting the net dividend in the month
that the share price goes ex-dividend. The NAV Total Return
involves investing the same net dividend in the NAV of the
Company on the date to which that dividend was earned, e.g.
quarter end, half year or year-end date.
Voting Rights
In accordance with the Articles of Association of the Company,
on a show of hands, every member (or duly appointed proxy)
present at a general meeting of the Company has one vote;
and, on a poll, every member present in person or by proxy shall
have one vote for every Ordinary share held.
Winding-Up Entitlements
On a winding up of the Company, any surplus assets available
after payment of all debts and satisfaction of all liabilities
of the Company shall be applied in repaying the Ordinary
shareholders the amounts paid up on such shares. Any
surplus shall be divided among the holders of Ordinary shares
pari passu according to the amount paid up on such shares
respectively.
Glossary of Terms continued
Section 6 l Corporate Information 99
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Issued Share Capital at 31 December 2024
150,306,492 Ordinary shares of no par value
44,626,897 Ordinary shares of no par value held in treasury
Capital History
20 December 2005
110,000,000 Ordinary shares placed at 100p per share and
22,000,000 Warrants issued at 10p per Warrant. Ordinary share
issue applicants were entitled to purchase Warrants on the
basis of one Warrant for every 10 Ordinary shares applied for
Year to 31 December 2007
800,000 Ordinary Shares purchased in the market for
cancellation
Year to 31 December 2008
760,000 Ordinary shares purchased in the market for
cancellation
Year to 31 December 2009
1,350,000 Ordinary shares issued for cash at a premium to the
prevailing NAV
Year to 31 December 2010
7,199,001 Ordinary shares issued for cash at a premium to
the prevailing NAV. 11 May 2010, 160,999 Warrants exercised
resulting in the issue of 160,999 new Ordinary shares. 13
October 2010, 885,062 Warrants exercised resulting in the issue
of 885,062 new Ordinary shares
Year to 31 December 2011
6,250,000 Ordinary shares issued for cash at a premium to the
prevailing NAV. 16 May 2011, 14,793,009 Warrants exercised
resulting in the issue of 14,793,009 new Ordinary shares. 5
October 2011, 5,800 Warrants exercised resulting in the issue of
5,800 new Ordinary shares
Year to 31 December 2012
9,517,388 Ordinary shares issued for cash at a premium to the
prevailing NAV. 24 May 2012, 1,766,974 Warrants exercised
resulting in the issue of 1,766,974 new Ordinary shares. 15
October 2012, 814,113 Warrants exercised resulting in the issue
of 814,113 new Ordinary shares. 16 November 2012, 60,000,000
C shares issued by way of a Placing and Offer for Subscription
Year to 31 December 2013
8,425,000 Ordinary shares issued for cash at a premium to the
prevailing NAV. 4 February 2013, 60,000,000 C shares converted
into 30,552,000 new Ordinary shares. 17 May 2013, 3,574,043
Warrants exercised resulting in the issue of 3,574,043 new
Ordinary shares. Following the exercise no Warrants remain
Year to 31 December 2014
800,000 Ordinary shares issued for cash at a premium to the
prevailing NAV
Year to 31 December 2015
500,000 Ordinary shares issued for cash at a premium to the
prevailing NAV. 1,907,000 Ordinary shares purchased in the
market (of which 1,807,000 were held in treasury and 100,000
were cancelled)
Year to 31 December 2016
6,158,000 Ordinary shares purchased in the market for treasury
Year to 31 December 2017
3,686,168 Ordinary shares purchased in the market for treasury
Year to 31 December 2018
4,651,533 Ordinary shares purchased in the market for treasury
Year to 31 December 2019
1,038,713 Ordinary shares purchased in the market for treasury
Year to 31 December 2020
1,767,492 Ordinary shares purchased in the market for treasury
Year to 31 December 2021
4,265,587 Ordinary shares purchased in the market for treasury
Year to 31 December 2022
1,726,495 Ordinary shares purchased in the market for treasury
Year to 31 December 2023
2,653,694 Ordinary shares purchased in the market for treasury
Year to 31 December 2024
16,872,215 Ordinary shares purchased in the market for
treasury.
Share Capital History
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
100 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
The Investment Manager, abrdn Asia Limited, and the Company, are required to make certain disclosures available to investors in
accordance with the Alternative Investment Fund Managers Directive (“AIFMD”).
Those disclosures that are required to be made pre-investment are included within a pre-investment disclosure document (“PIDD”)
which can be found on the Company’s website asian-income.co.uk. There have been no material changes to the disclosures
contained within the PIDD since the last publication in March 2024.
The periodic disclosures as required under the AIFMD to investors are made below:
● Information on the investment strategy, geographic and sector investment focus and principal stock exposures are included in
the Strategic Report.
● None of the Company’s assets are subject to special arrangements arising from their illiquid nature.
● The Strategic Report, note 18 to the Financial Statements and the PIDD together set out the risk profile and risk management
systems in place. There have been no changes to the risk management systems in place in the period under review and no
breaches of any of the risk limits set, with no breach expected.
● There are no new arrangements for managing the liquidity of the Company or any material changes to the liquidity
management systems and procedures employed by the Investment Manager.
● In accordance with the requirements of the AIFMD, the Investment Manager’s remuneration policy is available on request (see
contact details on page 108) and the remuneration disclosures in respect of the Investment Manager’s reporting period for the
year ended 31 December 2024 are available on the Company’s website.
The above information has been approved for the purposes of Section 21 of the Financial Services and Markets Act 2000 (as
amended by the Financial Services Act 2012) by abrdn Investments Limited which is authorised and regulated by the Financial
Conduct Authority.
AIFMD Disclosures (Unaudited)
Section 6 l Corporate Information 101
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Alternative performance measures are numerical measures of the Company’s current, historical or future performance, financial
position or cash flows, other than financial measures defined or specified in the applicable financial framework. The Company’s
applicable financial framework includes IFRS 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 discount is the amount by which the share price is lower than the net asset value per share, expressed as a percentage of the
net asset value.
2024 2023
NAV per Ordinary share (p) a 251.42 238.59
Share price (p) b 220.00 208.00
Discount (b-a)/a 12.5% 12.8%
Dividend cover
Dividend cover measures the revenue return per share divided by total dividends per share, expressed as a ratio.
2024 2023
Revenue return per share a 11.35p 11.97p
Dividends per share b 14.43p 11.75p
Dividend cover a/b 0.79 1.02
Dividend yield
The annual dividend per Ordinary share divided by the share price, expressed as a percentage.
2024 2023
Annual dividend per Ordinary share (p) a 14.43p 11.75p
Share price (p) b 220.00p 208.00p
Dividend yield (b-a)/a 6.6% 5.6%
Alternative Performance Measures
(Unaudited)
102 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Job No: 53664 Proof Event: 17 Black Line Level: 2 Park Communications Ltd Alpine Way London E6 6LA
Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Net gearing
Net gearing measures the total borrowings less cash and cash equivalents dividend by shareholders’ funds, expressed as a
percentage. Under AIC reporting guidance cash and cash equivalents includes amounts due to and from brokers at the year end
as well as cash and cash equivalents including amounts due to and from brokers.
2024 2023
Borrowings (£’000) a 32,422 32,123
Cash (£’000) b 9,349 1,560
Amounts due to brokers (£’000) c 4,127 21
Amounts due from brokers (£’000) d – 756
Shareholders’ funds (£’000) e 377,895 398,868
Net gearing (a-b+c-d)/e 7.2% 7.5%
Ongoing charges
The ongoing charges ratio has been calculated in accordance with guidance issued by the AIC, to include the look-through costs of
holding certain investment funds as well as the total of investment management fees and administrative expenses and expressed
as a percentage of the average daily net asset values with debt at fair value published throughout the year.
2024 2023
Investment management fees (£’000) 2,368 3,041
Administrative expenses (£’000) 1,049 867
Less: non-recurring charges
A
(£’000) (134) (18)
Ongoing charges (£’000) 3,283 3,890
Average net assets (£’000) 384,548 395,914
Ongoing charges ratio (excluding look-through costs) 0.85% 0.98%
Look-through costs
B
– 0.02%
Ongoing charges ratio (including look-through costs) 0.85% 1.00%
A
Professional services comprising advisory and legal fees considered unlikely to recur.
B
Calculated in accordance with AIC guidance issued in October 2020 to include the Company’s share of costs of holdings in investment companies on a look-
through basis.
Alternative Performance Measures (Unaudited) continued
Section 6 l Corporate Information 103
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Total return
NAV and share price total returns show how the NAV and share price has performed over a period of time in percentage terms,
taking into account both capital returns and dividends paid to shareholders. Share price and NAV total returns are monitored
against open-ended and closed-ended competitors, and the Reference Index, respectively.
Year ended 31 December 2024 N AV Share Price
Opening at 1 January 2024 a 238.59p 208.00p
Closing at 31 December 2024 b 251.42p 220.00p
Price movements c=(b/a)-1 5.4% 5.8%
Dividend reinvestment
A
d 5.4% 6.2%
Total return c+d 10.8% 12.0%
Year ended 31 December 2023 N AV Share Price
Opening at 1 January 2023 a 243.44p 215.00p
Closing at 31 December 2023 b 238.59p 208.00p
Price movements c=(b/a)-1 -2.0% -3.3%
Dividend reinvestment
A
d 4.5% 5.2%
Total return c+d 2.5% 1.9%
A
NAV total return involves investing the net dividend in the NAV of the Company with debt at par value on the date on which that dividend goes ex-dividend.
Share price total return involves reinvesting the net dividend in the share price of the Company on the date on which that dividend goes ex-dividend.
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104 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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The AGM will held at 10.30 a.m. on 8 May 2025
at 18 Bishops Square, London E1 6EG
General
Section 7 l General 105
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Customer: ABRDN Project Title: ANNUAL REPORT 2024 T: 0207 055 6500 F: 020 7055 6600
Notice is hereby given that the nineteenth Annual General
Meeting of abrdn Asian Income Fund Limited will be held at
18 Bishops Square, London E1 6EG at 10.30 a.m. on 8 May 2025
for the following purposes:
Ordinary Business
As ordinary business to consider and, if thought fit, pass the
following resolutions as ordinary resolutions:
1. To receive and approve the Directors’ Report and financial
statements for the year ended 31 December 2024, together
with the Auditor’s report thereon.
2. To receive and approve the Directors’ Remuneration Report
for the year ended 31 December 2024 (other than the
Directors’ Remuneration Policy).
3. To approve the Company’s dividend policy to continue to
pay four interim dividends per year.
4. To elect Ms J Routledge as a Director.
5. To re-elect Ms N McCabe as a Director.
6. To re-elect Mr I Cadby as a Director.
7. To re-elect Mr M Florance as a Director.
8. To re-elect Mr R Kirkby as a Director.
9. To re-appoint KPMG Channel Islands Limited as
independent Auditor and to authorise the Audit Committee
to agree its remuneration.
Special Business
To consider and, if thought fit, pass resolutions 10 and 11 which
will both be proposed as special resolutions:
10. THAT the Company be and is hereby generally and
unconditionally authorised in accordance with the Articles
of Association to make market purchases on a stock
exchange of, and to cancel or hold in treasury, ordinary
shares of no par value in the capital of the Company
(“Ordinary shares”), provided that:
(a) the maximum number of Ordinary Shares hereby
authorised to be purchased is 14.99% of the issued share
capital of the Company as at the date of the passing of
this resolution;
(b) the maximum price which may be paid for an Ordinary
share shall not be more than the higher of (i) an amount
equal to 105% of the average of the middle market
quotations for an Ordinary share taken from the Daily
Official List of the London Stock Exchange for the five
business days immediately preceding the day on which
the Ordinary share is purchased; 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;
(c) the minimum price which may be paid for an Ordinary
share is 1 pence;
(d) the Company be authorised to purchase Ordinary
shares out of its unrealised capital or revenue profits
less its capital or revenue losses, whether realised or
unrealised; and,
(e) the authority hereby conferred shall expire at the
conclusion of the Annual General Meeting of the
Company in 2026 or, if earlier, on the expiry of 18 months
from the passing of this resolution, unless such authority
is renewed prior to such time.
11. THAT the Directors be empowered to allot Ordinary shares
for cash (or sell Ordinary shares held as treasury shares)
up to a maximum amount of 14,637,917 Ordinary shares
(or 10% of the total number of Ordinary Shares in issue as
at the date of the passing of this resolution) as if Article 10
of the Company’s Articles of Association did not apply,
provided that such disapplication shall expire (unless and
to the extent previously revoked, varied or renewed by the
Company in general meeting by special resolution) at the
earlier of the conclusion of the Annual General Meeting of
the Company to be held in 2026 or 18 months from the date
of the passing of this resolution but so that this power shall
enable the Company to make offers or agreements before
such expiry which would or might require Ordinary shares
to be issued after such expiry and the Directors of the
Company may issue Ordinary shares in pursuance of any
such offer or agreement as if such expiry had not occurred.
12. THAT, with effect from 1 June 2025, the change of name of
the Company to “Aberdeen Asian Income Fund Limited” be
approved.
By order of the Board
JTC Fund Solutions (Jersey) Limited
Company Secretary
25 March 2025
Registered Office:
28 Esplanade
St Helier
Jersey JE2 3QA
Notice of Annual General Meeting
106 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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Notes
1. A member entitled to attend and vote is entitled to appoint
a proxy or proxies to attend and, on a poll, to vote instead of
him/her. A proxy need not be a member of the Company. A
form of proxy is enclosed.
2. Instruments of proxy and the power of attorney or other
authority, if any, under which they are signed or a notarially
certified copy of that power of attorney or authority should
be sent to The Registrar, abrdn Asian Income Fund Limited,
Computershare Investor Services (Jersey) Limited, c/o The
Pavilions, Bridgwater Road, Bristol BS99 6ZZ so as to arrive
not less than forty eight hours before the time fixed for the
meeting.
3. In accordance with Article 40 of the Companies
(Uncertificated Securities) (Jersey) Order 1999, to have the
right to attend and vote at the meeting referred to above
a member must first have his or her name entered in the
Company’s register of members by not later than forty
eight hours before the time fixed for the meeting (or, in
the event that the meeting be adjourned, on the register
of members 48 hours before the time of the adjourned
meeting). Changes to entries on that register after that
time (or, in the event that the meeting is adjourned, on the
register of members less than forty eight hours before the
time of any adjourned meeting) shall be disregarded in
determining the rights of any member to attend and vote at
the meeting referred to above.
You may submit your proxy electronically using
www.eproxyappointment.com. Shareholders can use this
service to vote or appoint a proxy online. The same voting
deadline of 48 hours (excluding non-working days) before
the time of the meeting applies as if you were using your
Personalised Voting Form to vote or appoint a proxy by post
to vote for you. Shareholders will need to use the unique
PIN which can be found on your personalised Proxy Form.
Shareholders should not show this information to anyone
unless they wish to give proxy instructions on their behalf.
4. Notes on CREST Voting.
CREST Members who wish to appoint a proxy or proxies by
utilising the CREST electronic proxy appointment service
may do so by utilising the procedures described in the
CREST Manual, which is available to download from the
Euroclear website (www.euroclear.com). CREST personal
members or other CREST sponsored members, and those
CREST members who have appointed voting service
provider(s), should contact their CREST sponsor or voting
service provider(s) who will be able to take the appropriate
action on their behalf.
5. In order for a proxy appointment or instruction made
using the CREST system to be valid, the appropriate
CREST message (a “CREST proxy instruction”) must be
properly authenticated in accordance with Euroclear’s
specifications and must contain the information required
for such instructions, as described in the CREST Manual.
To appoint a proxy or to give or amend an instruction to
a previously appointed proxy via the CREST system, the
CREST message must be received by the issuer’s agent
3RA50 by 10.30 a.m. on 6 May 2025. For this purpose, the
time of receipt will be taken to be the time (as determined
by the timestamp applied to the message by the CREST
applications Host) from which the issuer’s agent is able to
retrieve the message.
6. CREST members and, where applicable, their CREST
sponsors or voting service providers should note that
Euroclear does not make available special procedures
in CREST for any particular messages. Normal systems
timings and limitations will therefore apply in relation to
the input of CREST proxy instructions. It is the responsibility
of the CREST member concerned to take (or, if the CREST
member is a CREST personal member or CREST sponsored
member or has appointed a voting service provider(s), to
procure that his or her CREST sponsor or voting service
provider(s) takes(s)) such action as shall be necessary
to ensure that a message is transmitted by means of the
CREST system by a particular time. For further information
on CREST procedures, limitations and system timings
please refer to the CREST Manual.
7. The Company may treat as invalid a proxy appointment
sent by CREST in the circumstances set out in Regulation
35(5)(a) of the Uncertificated Securities Regulations 2001. In
any case, a proxy form must be received by the Company’s
Registrar no later than 10.30 a.m. on 6 May 2025.
Unless otherwise indicated on the Form of Proxy, CREST,
Proxymity or any other electronic voting instruction, the
proxy will vote as they think fit or, at their discretion, withhold
from voting.
8. If you are an institutional investor you may also be able to
appoint a proxy electronically via the Proxymity platform,
a process which has been agreed by the Company and
approved by the Registrar. For further information regarding
Proxymity, please go to www.proxymity.io. Your proxy
must be lodged by 10.30 a.m. on 6 May 2025 in order to be
considered valid or, if the meeting is adjourned, by the time
which is 48 hours before the time of the adjourned meeting.
Before you can appoint a proxy via this process you will
need to have agreed to Proxymity’s associated terms and
conditions. It is important that you read these carefully
as you will be bound by them and they will govern the
electronic appointment of your proxy. An electronic proxy
appointment via the Proxymity platform may be revoked
completely by sending an authenticated message via the
platform instructing the removal of your proxy vote.
9. Shareholders are advised that, unless otherwise provided,
the telephone numbers and website addresses which may
be set out in this Notice or the Form of Proxy are not to be
used for the purpose of serving information or documents
on the Company including the service of information or
documents relating to proceedings at the Company’s
Annual General Meeting. If the Chairman, as a result of any
proxy appointments, is given discretion as to how the votes
the subject of those proxies are cast and the voting rights in
respect of those discretionary proxies, when added to the
interests in the Company’s Ordinary shares already held by
the Chairman, result in the Chairman holding such number
of voting rights that he or she has a notifiable obligation
under the Disclosure Guidance and Transparency Rules,
Notice of Annual General Meeting continued
Section 7 l General 107
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the Chairman will make the necessary notifications to
the Company and the Financial Conduct Authority. As a
result any person holding 3% or more of the voting rights in
the Company who grants the Chairman a discretionary
proxy in respect of some or all of those voting rights and
so would otherwise have a notification obligation under
the Disclosure Guidance and Transparency Rules, need
not make a separate notification to the Company and the
Financial Conduct Authority.
10. No Director has a service contract with the Company.
11. The Register of Directors’ interests is kept by the Company
and is available for inspection.
12. As at 25 March 2025 (being the last business day prior to the
publication of this notice) the Company’s issued Ordinary
share capital comprised 146,379,174 Ordinary shares of no
par value and 48,554,215 treasury shares. Each Ordinary
share carries the right to one vote at a general meeting of
the Company and, therefore, the total number of voting
rights in the Company as at 25 March 2025 was 146,379,174.
108 abrdn Asian Income Fund Limited l Annual Report – 31 December 2024
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Directors
Ian Cadby (Chairman)
Mark Florance (Senior Independent Director and
Audit Committee Chairman)
Robert Kirkby
Nicky McCabe
Krystyna Nowak
Jane Routledge
Investment Manager
abrdn Asia Limited
7 Straits View
#23-04, Marina One East Tower
Singapore 018936
UK Administrator
abrdn Investments Limited
280 Bishopsgate
London EC2M 4AG
Email: asian.income@aberdeenplc.com
Company Secretary & Registered Office
JTC Fund Solutions (Jersey) Limited
28 Esplanade
St Helier
Jersey JE2 3QA
Tel: 01534 700 000
Registrar
Computershare Investor Services (Jersey) Limited
13 Castle Street
St Helier
Jersey JE1 1ES
Tel: 0370 707 4040
Email: info@computershare.co.je
www.investorcentre.co.uk/je
Website
asian-income.co.uk
Bankers
Bank of Nova Scotia, London Branch
6th Floor
201 Bishopsgate
London EC2M 3NS
Jersey Lawyers
Mourant Ozannes (Jersey) LLP
22 Grenville Street
St Helier
Jersey JE4 8PX
Corporate Broker
Peel Hunt LLP
100 Liverpool Street
London EC2M 2AT
Independent Auditor
KPMG Channel Islands Limited
37 Esplanade
St Helier
Jersey JE4 8WQ
Custodian
BNP Paribas SA, London Branch
Legal Entity Identifier (“LEI”)
549300U76MLZF5F8MN87
Company Number
91671 (Jersey)
Corporate Information
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For more information visit: asian-income.co.uk
aberdeeninvestments.com
abrdn Asian Income Fund Limited Annual Report 31 December 2024