Source - RNS
RNS Number : 0774M
Aberdeen New Thai Inv Trust PLC
10 October 2016
 

ABERDEEN NEW THAI INVESTMENT TRUST PLC

 

HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 31 AUGUST 2016

 

The following is the unaudited Interim Board Report for the Six months ended 31 August 2016.

 

INTERIM BOARD REPORT

 

Performance (capital return plus dividends reinvested)

 

 

 

Six months ended

31 August 2016

Year ended

28 February 2016

 

 

 

Ordinary share price total return

19.7%

-9.2%

Net asset value total return

19.4%

-9.5%

Stock Exchange of Thailand Index (Sterling adjusted, total return)

29.0%

-11.6%

 

 

 

Source: Aberdeen Asset Management PLC/Morningstar 

 

 

 

 

 

 

 

Financial Highlights

31 August 2016

28 February 2016

% change

  Total assets (£'000)

113,280

98,582

+14.9

  Equity shareholders' funds (net assets) (£'000)

110,630

95,932

+15.3

  Ordinary share price (mid-market)

477.75p

408.00p

+17.1

  Net asset value per Ordinary share {A}

566.35p

483.03p

+17.2

  Net asset value per Ordinary share {B}

556.87p

473.99p

+17.5

  Discount to net asset value {B}

14.2%

13.9%

 

  Stock Exchange of Thailand Index (Sterling adjusted)

34.15

27.17

+25.7

  Net gearing

1.30%

2.20%

 

 

  {A} Calculated including undistributed net revenue for the period.

 

 

 

  {B} Calculated excluding undistributed net income for the period.

 

 

 

 

Interim Board Report

 

Investment Objective

The investment objective of the Company is to provide shareholders with a high level of long-term, above average capital growth through investment in Thailand.

 

Investment Process

Longer term shareholders will know that our Manager's investment process, which has served us well over the years, is designed to ensure that investments are made in companies with solid balance sheets, healthy revenue accounts with strong cash flows, and where management have experience of business cycles and treat their shareholders fairly. The portfolio is positioned with our holdings either in market leaders in their respective industries or well managed small cap companies. The recent market strength has been driven by gains in more speculative securities (which are now trading on exceptionally high multiples) and we have therefore lagged the Stock Exchange of Thailand Index ("SET Index") over the last six months. However, we remain confident that the portfolio remains positioned for the longer term with an eye to any political risk.

 

Performance

Thai equities rose markedly during the period under review despite bouts of volatility. The Company's benchmark, the SET Index, rose by 29.0% (sterling total return) in a liquidity driven market as predominantly passive foreign fund inflows drove larger capitalisation stocks higher. This compared to a 19.4% increase in the Company's net asset value total return which, whilst a solid increase, reflected our Manager's defensive portfolio positioning and our small cap holdings' relative underperformance. Meanwhile, the Ordinary shares reached 477.75p, representing a total return of 19.7%, assuming dividends are reinvested. Notably, sterling weakness caused by the Brexit vote pushed the baht up more than 9%, magnifying the returns for UK investors. More encouragingly, over the last five years, your Company's gross portfolio total return has been 14.4% per annum, compared with the SET Index total return of 13.0% per annum, again in sterling terms.

 

Overview

A solid rally in Thai equities that began at the start of 2016 extended into the reporting period. The market was among the world's best performers during an eventful six months. Prices, however, of many stocks became somewhat unshackled from the realities of their business operations, as well as earnings. For instance, Thai Airways (not held in the portfolio) posted returns of almost 200% during the review period, despite having a weak balance sheet and it requiring significant operational restructuring to improve efficiencies. Not holding certain stocks such as PTT, CP All or CP Foods also detracted from overall returns.

 

On the external front, the US Federal Reserve's decision to keep interest rates on hold and projections for fewer rate rises emboldened investors. China's policy attempts at stabilisation and efforts to avoid further market shocks also helped quell market jitters. Although Thailand was not immune to the global sell-off that ensued following Britain's historic vote to leave the EU, the market rebounded swiftly, as investors, leery of European markets, favoured emerging ones instead. Expectations of more monetary easing from major central banks further supported sentiment. At home, a series of bomb attacks at several popular tourist destinations provided cause for concern, but did not appear to dent risk appetite or cripple the vital tourism industry.

 

The Thai economy started to bear the fruit of last year's fiscal stimulus. Although both the central bank and finance ministry downgraded their full-year growth forecasts, GDP growth advanced at a better-than-expected pace in the first half. Tourism continued to be the shining star that underpinned the economy. Consumer confidence rose towards the period-end after the country's worst drought in decades began to ease. Automotive production and domestic vehicle sales showed signs of improvement, but failed to fully mitigate stubbornly sluggish exports.

 

To stimulate consumption further, the government introduced a scheme that allows for tax deductions on purchases of specific community-based products, such as handicrafts, garments and pottery. In addition, cabinet approved changes to the personal income-tax system from next year, including greater deductions and widening taxable income brackets to benefit middle-income earners. Meanwhile, the Bank of Thailand kept rates on hold throughout the period, deeming the policy rate sufficiently accommodative. Separately, it launched a new payment platform to reduce bank transfer fees.

 

In politics, investors cheered the results of a referendum that saw most voters approve the constitution drafted by the junta. This paves the way for a 2017 general election and potential return to political normalcy.

 

Portfolio

The Company performed well in absolute terms on the back of market optimism. This was despite underperforming the SET Index.

 

From a fundamental business point of view, the portfolio of companies performed much in-line with your Manager's expectations. The share prices of the underlying holdings tended to lag the rally, largely because they are more defensive in nature than the speculative names that led the run-up.

 

Among the portfolio's holdings, Homepro was the largest contributor, as the retailer bucked the industry trend to bounce back with decent sales and margins. In particular, the unusually hot summer boosted sales of air conditioners and fans. Homepro's extensive network, wide range of products and adroit working capital management continued to hold the company in good stead.

 

Banpu also rebounded, in tandem with recovering coal prices, after a prolonged rout. The company is looking to repay debt by spinning off its power division in an initial public offering. Another holding with good profit margins is the tube and can manufacturer Alucon. Healthy demand for its end-products continued to drive income. Coca-Cola bottler Haad Thip was also boosted by high profits and good sales volumes.

 

In the banking sector, Tisco Financial Group was among the portfolio's best-performing holdings. Although the sector remained weak, smaller lenders like Tisco were more resilient, as reflected by an improvement in non-performing loans. Tisco's main automotive loans business benefited from increasing second hand vehicles prices and a revival in sales of cars and trucks.

 

Conversely, Big C Supercenter ("Big C") was the top detractor, as its operating environment remained challenging in the context of ongoing weakness in domestic consumption, which only showed signs of a pick-up towards the period-end. Your Manager chose not to participate in Berli Jucker's tender offer for the retailer, taking the view that the price was not attractive enough. Your Manager believes Big C has the potential to unlock some of the constraints imposed by its former owner, Casino Group, and capitalise on synergies with Berli Jucker parent, TCC Group. Big C's profits remained resilient on the back of rental and service income, as well as lower interest expenses.

 

BEC World continued to face stiff competition in its digital TV division, and suffered from lower advertising revenues. This was in line with the broader industry trend. TV remains the dominant platform for advertisers, and BEC's high-quality content has helped the company retain a sizeable market share. Your Manager is confident of its ability to weather the economic downturn.

 

Bangkok Insurance lagged the broader market rally, but reported resilient results and paid out higher dividends. Another holding in this sector, Thai Reinsurance, was weighed down by poor headline numbers, but it was able to pay its first dividend in five years. Much of its losses were incurred from reclassifying its investment in Thaire Life Assurance, a portfolio holding that enjoyed healthy bottom-line growth.

 

Cyclical factors were responsible for some holdings' underperformance. For Hana Microelectronics, this was driven by inventory cycles and soft notebook sales. However, its operations are diversified and stable, and its balance sheet remains robust. LPN Development reported lacklustre pre-sales of new condominium projects. Its core customer base was hampered by lower purchasing power among those in the lower-to-middle income brackets, and the banks' clampdown on mortgage approvals. Despite the challenges, the company reported good earnings with healthy margins. Meanwhile, the unusually dry weather detracted from Eastern Water Resources' performance, but the company continues to post steady growth driven by sales volumes on the eastern seaboard.

 

Elsewhere, Siam City Cement's share price was depressed since the change in major shareholder in 2015, from Holcim to Jardine Cycle & Carriage. However, there has been no change in its fundamentals. The company recently made a number of significant acquisitions across high growth markets in Asia.

 

Portfolio activity was minimal during the review period, in keeping with your Manager's long-term buy-and-hold approach. Your Manager took profits on names that performed well, including Kasikornbank, Siam Commercial Bank, Homepro and PTT Exploration and Production, and used the proceeds to top up Hana Microelectronics and Siam City Cement.

 

Outlook

Ample liquidity from low interest rates at home and abroad should continue to propel Thai equities. Analysts' predictions of central bank policy divergence made late last year have not panned out. Instead, the US Federal Reserve's reluctance to hike rates has brought it in line with the 'lower for longer' monetary policy stance of other major central bankers. Meanwhile, Thailand, because of its reliance on exports, continues to reckon with moderating Chinese demand.

 

Domestically, the macroeconomic situation remains mixed, with some sectors showing green shoots and others struggling to gain a solid foothold. The government's attempts at stimulating expansion have reaped some rewards, but the full extent of its efforts remains to be seen. Still, there remain risks on the political front. Although investors have overlooked the bombings, the violence points to underlying problems that may need to be addressed some time in the future.

 

Much of the Thai market's spectacular run this year has come from foreign inflows on the back of renewed interest in emerging markets, and from the growth of ETFs or indexed funds, rather than from actively-managed portfolios. In many cases, valuations appear somewhat untethered from fundamentals. The upswing may not last. This means that there remains great value in a bottom-up stockpicking approach to investment. I am confident that the well-managed robust businesses in your portfolio have the means and resources to get through tough times, and can outperform in the longer term.

 

Share Buybacks

The Board continues to monitor the share price discount to NAV and will continue to pursue a policy of selective buybacks of shares where to do so would be in the best interests of shareholders.

 

During the 6 months ended 31 August 2016 the Company bought back and cancelled 326,300 Ordinary shares (2015 - 658,123). As at 31 August 2016, the Company's issued share capital consisted of 19,533,982 Ordinary shares with voting rights. Between 1 September 2016 and the date of approval of this Report, the Company bought back for cancellation a further 229,700 Ordinary shares leaving 19,304,282 shares with voting rights in issue.

 

Principal Risks and Uncertainties

Management of Risk

Investment in Thai equities involves a greater degree of risk than that usually associated with investment in major securities markets. The securities which the Company owns may be considered speculative because of the higher degree of risk.

 

The principal risks and uncertainties associated with the Company are set out in detail on pages 8 to 10 of the Annual Report for the year ended 28 February 2016, which is published on the Company's website, and which are applicable for the remaining 6 months of the Company's financial year ended 28 February 2017 as they have been for the period under review.

 

The risks may be summarised under the following headings:

 

-     Discount volatility

-     Dividends

-     Financial and Regulatory

-     Foreign Exchange risks

-     Gearing

-     Investment objective

-     Liquidity risk

-     Market risk

-     Operational

-     Political risk and Exchange Controls

 

Additionally, the Company faces new uncertainties further to the 'Leave' decision of the EU Referendum held in June 2016 and the outcome of the US Presidential election due in November 2016.

 

Transactions with Manager

Mr Hugh Young, a Director of the Company, is also a director of Aberdeen Asset Management PLC and of its subsidiary, Aberdeen Asset Management Asia Limited, the Company's Investment Manager.

 

Going Concern

The Directors have undertaken a rigorous review and consider both that there are no material uncertainties and that the adoption of the going concern basis of accounting is appropriate. The Company's assets consist entirely of equity shares in companies listed on the Stock Exchange of Thailand which are, in most circumstances, realisable within a short timescale.

 

The Board has set limits for borrowing and regularly reviews the level of any gearing, cash flow projections and compliance with banking covenants. On 28 October 2015, the Company entered into a three-year multi-currency revolving loan facility ("the Facility") with Scotiabank (Ireland) Limited for £10.0m of which £2.65m had been drawn down as at 31 August 2016.

 

The Directors are mindful of the principal risks and uncertainties disclosed on pages 8 to 10 and in Note 15 to the financial statements of the Annual Report for the year ended 28 February 2016. After making enquiries, including a review of forecasts detailing revenue and liabilities, the Directors have a reasonable expectation that the Company possesses adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis of accounting in preparing the financial statements.

 

Duration

The Company does not have a fixed life. However, under the Articles of Association, if in the 12 weeks preceding the Company's financial year end (28 February) the Ordinary shares have been trading, on average, at a discount in excess of 15% to the underlying NAV over the same period, notice will be given of a special resolution to be proposed at the following Annual General Meeting that the Company be put into voluntary liquidation.  After consideration, the Directors have determined that, for these purposes, the relevant NAV will be calculated including undistributed net revenue for the period.

 

Statement of Directors' Responsibilities

The Directors are responsible for preparing the Half-Yearly Financial Report in accordance with applicable law and regulations. The Directors confirm that to the best of their knowledge:

 

-     the condensed set of Financial Statements has been prepared in accordance with Financial Reporting Standard 104 (Interim Financial Reporting);

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

-     the Half-Yearly Board Report includes a fair review of the information required by 4.2.8R (being related party transactions that have taken place during the first six months of the financial year and that have materially affected the financial position of the Company during that period; and any changes in the related party transactions described in the last Annual Report that could do so).

 

The Half-Yearly Financial Report for the six months ended 31 August 2016 comprises the Half-Yearly Board Report, the Directors' Responsibility Statement and a condensed set of Financial Statements.

 

Nicholas Smith

Chairman

 

10 October 2016

 

 

 

 

CONDENSED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

 

 

 

 

Six months ended

 

 

31 August 2016

 

 

Revenue

Capital

Total

 

Notes

£'000

£'000

£'000

Gains/(losses) on investments

 

-

16,034

16,034

 

 

 

 

 

Income

2

2,878

-

2,878

Management fee

 

(507)

-

(507)

Administrative expenses

 

(220)

-

(220)

 

 

_________

_________

_________

Currency losses

 

-

(42)

(42)

 

_________

_________

_________

Net return on ordinary activities before finance costs and taxation

2,151

15,992

18,143

 

 

 

 

 

Interest payable and similar charges

 

(32)

-

(32)

 

 

_________

_________

_________

Net return on ordinary activities before taxation

 

2,119

15,992

18,111

 

 

 

 

 

Taxation

3

(268)

-

(268)

 

 

_________

_________

_________

Return on ordinary activities after taxation

 

1,851

15,992

17,843

 

 

_________

_________

_________

Return per Ordinary share (pence)

4

9.36

80.91

90.27

 

 

_________

_________

_________

 

 

 

 

 

The total column of this statement represents the profit and loss account of the Company.

All revenue and capital items are derived from continuing operations.

 

 

 

CONDENSED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

 

 

 

Six months ended

 

 

31 August 2015

 

 

Revenue

Capital

Total

 

Notes

£'000

£'000

£'000

Gains/(losses) on investments

 

-

(24,015)

(24,015)

 

 

 

 

 

Income

2

2,786

-

2,786

Management fee

 

(499)

-

(499)

Administrative expenses

 

(224)

-

(224)

Currency losses

 

-

(106)

(106)

 

_________

_________

_________

Net return on ordinary activities before finance costs and taxation

2,063

(24,121)

(22,058)

 

 

 

 

 

Interest payable and similar charges

 

(33)

-

(33)

 

 

_________

_________

_________

Net return on ordinary activities before taxation

 

2,030

(24,121)

(22,091)

 

 

 

 

 

Taxation

3

(263)

-

(263)

 

 

_________

_________

_________

Return on ordinary activities after taxation

 

1,767

(24,121)

(22,354)

 

 

_________

_________

_________

Return per Ordinary share (pence)

4

8.66

(118.27)

(109.61)

 

 

_________

_________

_________

 

 

 

CONDENSED STATEMENT OF FINANCIAL POSITION (UNAUDITED)

 

 

 

As at

As at

 

 

31 August 2016

28 February 2016

 

Notes

£'000

£'000

Non-current assets

 

 

 

Investments at fair value through profit or loss

 

111,991

98,079

 

 

_________

_________

Current assets

 

 

 

Loans and receivables

 

515

310

Money market funds

6

450

1

Cash at bank and in hand

 

757

432

 

 

_________

_________

 

 

1,722

743

 

 

_________

_________

Creditors: amounts falling due within one year

 

 

 

Bank loans

 

(2,650)

(2,650)

Other creditors

 

(433)

(240)

 

 

_________

_________

 

 

(3,083)

(2,890)

 

 

_________

_________

Net current liabilities

 

(1,361)

(2,147)

 

 

_________

_________

Net assets

 

110,630

95,932

 

 

_________

_________

 

 

 

 

Share capital and reserves

 

 

 

Called-up share capital

8

4,883

4,965

Share premium account

 

19,391

19,391

Capital redemption reserve

 

652

570

Capital reserve

9

81,830

67,304

Revenue reserve

 

3,874

3,702

 

 

_________

_________

Equity shareholders' funds

 

110,630

95,932

 

 

_________

_________

Net asset value per Ordinary share (pence)

10

566.35

483.03

 

 

_________

_________

 

 

 

CONDENSED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

 

Six months ended 31 August 2016

 

 

 

 

 

 

 

 

 

 

Share

Capital

 

 

 

 

 

Share

premium

redemption

Capital

Revenue

 

 

 

capital

account

reserve

reserve

reserve

Total

 

Notes

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 28 February 2016

 

4,965

19,391

570

67,304

3,702

95,932

Purchase of own shares for cancellation

8

(82)

-

82

(1,466)

-

(1,466)

Return on ordinary activities after taxation

 

-

-

-

15,992

1,851

17,843

Dividend paid

5

-

-

-

-

(1,679)

(1,679)

 

 

_____

______

______

______

______

______

Balance at 31 August 2016

 

4,883

19,391

652

81,830

3,874

110,630

 

 

_____

______

______

______

______

______

 

 

 

 

 

 

 

 

Six months ended 31 August 2015

 

 

 

 

 

 

 

 

 

 

Share

Capital

 

 

 

 

 

Share

premium

redemption

Capital

Revenue

 

 

 

capital

account

reserve

reserve

reserve

Total

 

Notes

£'000

£'000

£'000

£'000

£'000

£'000

Balance at 28 February 2015

 

5,191

19,391

344

84,139

3,575

112,640

Purchase of own shares for cancellation

8

(165)

-

165

(2,817)

-

(2,817)

Return on ordinary activities after taxation

 

-

-

-

(24,121)

1,767

(22,354)

Dividend paid

5

-

-

-

-

(1,669)

(1,669)

 

 

_____

______

______

______

______

______

Balance at 31 August 2015

 

5,026

19,391

509

57,201

3,673

85,800

 

 

_____

______

______

______

______

______

 

 

 

CONDENSED STATEMENT OF CASHFLOWS (UNAUDITED)

 

 

Six months ended

Six months ended

 

31 August 2016

31 August 2015

 

£'000

£'000

Operating activities

 

 

Net return on ordinary activities before finance costs and taxation

18,143

(22,058)

Adjustment for:

 

 

(Gains)/losses on investments

(16,034)

24,015

Currency losses

42

106

Increase in accrued dividend income

(187)

(73)

Decrease/(increase) in other debtors

14

(2)

Decrease in other creditors

(69)

(29)

Stock dividends included in investment income

-

(48)

Overseas withholding tax

(250)

(257)

 

_________

_________

Net cash flow from operating activities

1,659

1,654

 

 

 

Investing activities

 

 

Purchases of investments

(3,595)

(6,071)

Sales of investments

5,810

8,181

 

_________

_________

Net cash from investing activities

2,215

2,110

 

 

 

Financing activities

 

 

Interest paid

(32)

(33)

Equity dividends paid

(1,679)

(1,669)

Buyback of Ordinary shares

(1,347)

(2,817)

 

_________

_________

Net cash used in financing activities

(3,058)

(4,519)

 

_________

_________

Increase/(decrease) in cash

816

(755)

 

_________

_________

Analysis of changes in cash during the period

 

 

Opening balance

433

1,562

Effect of exchange rate fluctuations on cash held

(42)

(106)

Increase/(decrease) in cash and cash equivalents as above

816

(755)

 

_________

_________

Closing balances

1,207

701

 

_________

_________

 

 

 

NOTES TO THE ACCOUNTS:

 

1.

Accounting policies

 

Basis of preparation

 

The condensed financial statements have been prepared in accordance with Financial Reporting Standard 104 (Interim Financial Reporting) and with the Statement of Recommended Practice for 'Financial Statements of Investment Trust Companies and Venture Capital Trusts'. They have also been prepared on a going concern basis and on the assumption that approval as an investment trust will continue to be granted.

 

 

 

The interim financial statements have been prepared using the same accounting policies as the preceding annual financial statements. The Company has early adopted Amendments to FRS 102 - Fair Value Hierarchy Disclosures, issued by the Financial Reporting Council in March 2016. 

 

 

 

Six months ended

Six months ended

 

 

31 August 2016

31 August 2015

2.

Income

£'000

£'000

 

Income from investments

 

 

 

Overseas dividends

2,876

2,737

 

Stock dividends

-

48

 

 

_________

_________

 

 

2,876

2,785

 

 

_________

_________

 

Other income

 

 

 

Interest from money market funds

2

1

 

 

_________

_________

 

Total income

2,878

2,786

 

 

_________

_________

 

3.

Taxation

 

The taxation charge for the period represents withholding tax suffered on overseas dividend income.

 

 

 

Six months ended

Six months ended

 

 

31 August 2016

31 August 2015

4.

Return per Ordinary share

p

p

 

Revenue return

9.36

8.66

 

Capital return

80.91

(118.27)

 

 

_________

_________

 

Total return

90.27

(109.61)

 

 

_________

_________

 

 

 

 

 

The return per share is based on the following figures:

 

 

 

 

 

 

 

 

Six months ended

Six months ended

 

 

31 August 2016

31 August 2015

 

 

£'000

£'000

 

Revenue return

1,851

1,767

 

Capital return

15,992

(24,121)

 

 

_________

_________

 

Total return

17,843

(22,354)

 

 

_________

_________

 

Weighted average number of Ordinary shares in issue

19,766,601

20,393,350

 

 

_________

_________

 

 

 

Six months ended

Six months ended

 

 

31 August 2016

31 August 2015

5.

Dividends

£'000

£'000

 

2015 final dividend - 8.20p

-

1,669

 

2016 final dividend - 8.50p

1,679

-

 

 

_________

_________

 

 

1,679

1,669

 

 

_________

_________

 

 

 

 

 

In accordance with stated policy no interim dividend has been declared for the period (2015 - nil).

 

6.

Money market funds

 

At the period end the Company had £450,000 (28 February 2016 - £1,000) invested in a zero-fee share class of the Aberdeen Liquidity Fund (Lux) - Sterling Fund.

 

7.

Transaction costs

 

During the six months ended 31 August 2016 expenses were incurred in acquiring or disposing of investments classified as fair value through profit or loss. These have been expensed through capital and are included within gains/(losses) on investments in the Condensed Statement of Comprehensive Income. The total costs were as follows:

 

 

 

 

 

 

Six months ended

Six months ended

 

 

31 August 2016

31 August 2015

 

 

£'000

£'000

 

Purchases

6

13

 

Sales

5

8

 

 

_________

_________

 

 

11

21

 

 

_________

_________

 

8.

Called-up share capital

 

During the six months ended 31 August 2016 the Company purchased 326,300 Ordinary shares for cancellation at a cost of £1,466,000. During the six months ended 31 August 2015 the Company purchased 658,123 Ordinary shares for cancellation at a cost of £2,817,000. Between 1 September 2016 and the date of approval of this Report, the Company bought back for cancellation 229,700 Ordinary shares at a cost of £1.1m.

 

9.

Capital reserve

 

The capital reserve reflected in the Condensed Statement of Financial Position at 31 August 2016 includes gains of £49,533,000 (28 February 2016 - gains of £34,693,000) which relate to the revaluation of investments held at the reporting date.

 

 

 

As at

As at

10.

Net asset value per Ordinary share

31 August 2016

28 February 2016

 

Attributable net assets (£'000)

110,630

95,932

 

Number of Ordinary shares in issue

19,533,982

19,860,282

 

Net asset value per Ordinary share (p)

 

 

 

Including undistributed net revenue for period

566.35

483.03

 

Excluding undistributed net revenue for period

556.87

473.99

 

11.

Fair value hierarchy

 

FRS 102 requires an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The Company has early adopted Amendments to FRS 102 - Fair value hierarchy disclosures issued by the Financial Reporting Council in March 2016. This has not resulted in any reclassifications in levelling and the prior year comparative has been disclosed under the new hierarchy. The fair value hierarchy shall have the following classifications:

 

 

 

Level 1: unadjusted quoted prices in an active market for identical assets or liabilities that the entity can access at the measurement date.

 

Level 2: inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly.

 

Level 3: inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.

 

 

 

The financial assets and liabilities measured at fair value in the Condensed Statement of Financial Position at the reporting date have all been identified as Level 1 (28 February 2016 - same).

 

12.

Related party and transactions with Manager

 

Hugh Young is a director of Aberdeen Asset Management PLC, of which Aberdeen Fund Managers Limited ("AFML"), Aberdeen Asset Management Asia Limited and Aberdeen Asset Managers Limited are wholly-owned subsidiaries.

 

 

 

The Company has agreements with AFML for the provision of investment management, secretarial, accounting and administration and promotional activity services.

 

 

 

The management fee is payable monthly in arrears based on an annual amount of 1% of the net asset value of the Company valued monthly. The management agreement is terminable on one year's notice. During the period £507,000 (31 August 2015 - £499,000) of investment management fees were earned by the Manager, with a balance of £93,000 (31 August 2015 - £147,000) being payable to AFML at the period end.

 

 

 

The promotional activities fee is based on a current annual amount of £66,000, payable quarterly in arrears. During the period £30,000 (31 August 2015 - £43,000) of fees were paid, with a balance of £11,000 (31 August 2015 - £14,000) being payable to AFML at the period end.

 

 

 

During the course of the period, the Company has held an investment in another fund managed by the same Manager. Details of this holding are disclosed in note 6.

 

13.

Segmental information

 

The Company is engaged in a single segment of business, which is to invest in equity securities and debt instruments. All of the Company's activities are interrelated, and each activity is dependent on the others. Accordingly, all significant operating decisions are based on the Company as one segment.

 

14.

The financial information contained in this Half-Yearly Report does not constitute statutory accounts as defined in Sections 434 - 436 of the Companies Act 2006. The financial information for the six months ended 31 August 2016 and 31 August 2015 has not been reviewed or audited by the Company's external auditor.

 

 

 

The financial information for the year ended 28 February 2016 has been extracted from the latest published audited financial statements which have been filed with the Registrar of Companies. The report of the Independent Auditor on those accounts contained no qualification or statement under Section 498 (2), (3) or (4) of the Companies Act 2006.

 

15.

This Half-Yearly Report was approved by the Board on 10 October 2016.

 

Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise and may be affected by exchange rate movements.  Investors may not get back the amount they originally invested.

 

For Aberdeen New Thai Investment Trust plc

Aberdeen Asset Management PLC, Secretary

 

END


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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