Dividends are subject to shareholder approval at the Annual General Meeting.
STRATEGIC REPORT - CHAIRMAN'S STATEMENT
I am pleased to report that your Company's net asset value (NAV) increased by 15.4% on a total return basis, which is ahead of the MSCI Asia Pacific ex Japan Small Cap Index's return of 14.3%. For UK-based investors the weakness in sterling following the UK's referendum to leave the European Union boosted investment returns. The share price rose by 16.2% to 1062.0p, while the discount narrowed to 10.9% as at 31 July 2017, from 13.1% reported in the Interim Board Report, reflecting investors' renewed interest in smaller companies.
During the year under review strong global economic news and an improved outlook in earnings has driven asset prices across all markets. The Company's focus on smaller companies in Asia benefited the portfolio as many of these domestically-focused businesses are rooted within the region's higher-growth economies.
In China, the government's moderate but sustained credit and monetary policy tightening appear to have yielded the economic stability that the leadership desired ahead of the key October party congress. Concerns over a sharp slowdown in the mainland, which were prevalent last year, have eased. Economic growth of 6.9% in the first-half was better than expected and the currency has strengthened steadily against the US dollar. A combination of improved trade and economic performance, as well as tighter capital controls, has meant money and investment are returning to the mainland. In addition, the structure of the economy has continued to improve, with the economy rebalancing towards more consumer-led growth. While China is an exciting growth story, your Manager remains circumspect when investing in the mainland, owing to concerns over corporate governance and quality of smaller companies there.
In contrast, India remains the place where your Manager sees good opportunities. Since Prime Minister Narendra Modi took office three years ago, he has not only ushered in an acceleration in economic growth but also pushed through stalled reforms, including the nationwide sales tax. While the effects of the levy are still unfolding, the economy is expected to benefit in the long run as it will simplify the tax regime, boost tax revenues and make it easier to do business. Modi is expected to push even harder on reforms after the ruling party's victory in recent key state elections consolidated his position. Meanwhile, the pain from the surprise demonetisation in November receded, as the effects were less damaging than initially feared.
Consumption in Asia is another bright spot. It is a long-term structural driver, and the portfolio is well positioned in this aspect. A growing middle class and relatively youthful population, particularly within South-East Asia and India, offer tremendous potential. A new generation of younger consumers, who are increasingly affluent and digitally sophisticated, are not only fuelling consumption growth but also transforming traditional consumption patterns. The Company's bias towards these economies makes it well placed to benefit from these trends, alongside the broader based economic recovery.
As advised in previous years and subject to market conditions, it is your Company's aim to maintain or increase the Ordinary dividend so that shareholders can rely on a consistent stream of income. Since its launch in 1995, with the exception of the 1997 and 1998 years when the Asian Crisis gripped much of Asia, the Company has maintained or increased level of final dividend every year.
In the current year, we have seen a significant increase in both the ordinary income and the income that we receive as special dividends. In view of this, the Board is recommending a final dividend of 12.0p per share, an increase of 14.3% from 2016 and a special dividend of 4.0p per share (2016 no special dividend). The payments will allow for a small surplus to be transferred to the brought forward revenue reserves which can be used in future years in the event of any temporary shortfalls in revenue. If approved by shareholders at the Annual General Meeting of the Company on 1 December 2017, the final dividend will be paid on 7 December 2017 to shareholders on the register on 3 November 2017.
Gearing and Share Capital Management
The Company's year-end net gearing was 8.8%. The majority of the gearing is provided by the Convertible Unsecured Loan Stock of which approximately £32.9 million remains outstanding. On 9 June 2017 the Company agreed a new three year multicurrency revolving loan facility and a term loan facility in an aggregate amount of $25 million with The Royal Bank of Scotland plc. Under the term loan facility $12.5 million was drawn down and fixed for three years at an all-in rate of 2.506%. On the same date a maturing loan of $9 million was repaid to State Street. Up to $12.5 million remains available for drawing in the future under the new revolving loan facility. At the year end $12.5 million had been drawn down under the Company's $25m million multi currency loan facility.
During the year the Company purchased for treasury 1,091,750 Ordinary shares at a discount to the prevailing NAV (exclusive of income). Subsequent to the period end a further 390.500 Ordinary shares have been purchased into treasury. Share buy backs can reduce the volatility of any discount as well as modestly enhancing the NAV for shareholders.
Annual General Meeting
The Annual General Meeting is scheduled to be held on 1 December 2017 at 11.30 a.m. In addition to the usual ordinary business, as special business the Board is seeking to renew the authority to issue new shares and sell treasury shares for cash at a premium without pre-emption rules applying and to renew the authority to buy back shares and either hold them in treasury for future resale (at a premium to the prevailing NAV per share) or cancel them.
The Board is happy to take general questions on the Annual Report and financial statements at the meeting but would advise that questions of a technical nature should be addressed in writing to the Company Secretary, in advance.
We look forward to seeing as many shareholders as possible and very much hope that any, who wish, will stay for lunch afterwards.
Aberdeen Merger Update
The Board notes the completion of the merger between Aberdeen and Standard Life. The Board observes that the merger process to date has not created any issues for the Company but we shall continue to ensure that the management team remain focussed upon looking after the interests of the Company and its shareholders during the integration of the two businesses.
Asian equity markets have been resilient so far, but could face a pullback amid the still uncertain environment. Geopolitical tensions are simmering in the Korean peninsula. China's high debt level remains a risk. In the US Donald Trump's election as president has been tempered by concerns over his policy unpredictability and the administration's ability to deliver the agenda. All that market noise does not dim the appeal of smaller companies in Asia, however. Rising affluence, healthy consumption, as well as structural reforms and economic liberalisation create opportunities, and the smaller businesses stand to benefit. Many of them are nimble and can evolve their strategy to exploit niches unexplored by their larger counterparts. In addition, your Company's greater exposure to domestic market growth makes them less vulnerable to global macroeconomic developments. These factors, along with your Manager's focus on seeking out holdings with solid fundamentals, should underpin returns for long term investors.
24 October 2017
STRATEGIC REPORT - OVERVIEW OF STRATEGY
The business of the Company is that of an investment company which seeks to qualify as an investment trust for UK capital gains tax purposes.
The Company's revised Investment Objective and Investment Policy was approved by shareholders at the Annual General Meeting held on 29 November 2016.
The Company aims to maximise total return to shareholders over the long term from a portfolio made up predominantly of smaller quoted companies (with a market capitalisation of up to approximately US$1 billion at the time of investment) in the economies of Asia and Australasia, excluding Japan by following the investment policy described below. When it is in shareholders' interests to do so, the Company reserves the right to participate in the rights issue of an investee company notwithstanding that the market capitalisation of that investee may exceed the stated ceiling. The Directors do not envisage any change in this activity in the foreseeable future.
The Company's assets are invested in a diversified portfolio of securities (including equity shares, preference shares, convertible securities, warrants and other equity-related securities) predominantly in quoted smaller companies spread across a range of industries and economies in the investment region including Australia, Bangladesh, Cambodia, China, Hong Kong, India, Indonesia, Korea, Laos, Malaysia, Myanmar, New Zealand, Pakistan, The Philippines, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam, together with such other countries in Asia as the Directors may from time to time determine, (collectively, the ''Investment Region''). Investments may also be made through collective investment schemes, in unquoted equities (up to 10% of the net assets of the Company, calculated at the time of investment) and in companies traded on stock markets outside the Investment Region provided that over 75% of their consolidated revenue, operating income or pre-tax profit is earned from trading in the Investment Region or they hold more than 75% of their consolidated net assets in the Investment Region. In order to provide further flexibility to the Manager, the revenue qualification outlined above has been modified to include 'operating income or pre-tax profit' with effect from 1 August 2017.
The Company does not invest more than 15% of its gross assets at the time of investment either in other listed investment companies (including listed investment trusts), or in the shares of any one company. The Manager is authorised to invest up to 15% of the Company's gross assets in any single stock.
The Board is responsible for determining the gearing strategy for the Company. Gearing is used selectively to leverage the Company's portfolio in order to enhance returns where and to the extent this is considered appropriate to do so. Gearing is subject to a maximum gearing level of up to 25% of adjusted NAV at the time of draw down.
Delivering the Investment Policy
The Directors are responsible for determining the investment policy and the investment objective of the Company. Day to day management of the Company's assets has been delegated, via the AIFM, to the Investment Manager, AAM Asia. AAM Asia invests in a diversified range of companies throughout the Investment Region in accordance with the investment policy. AAM Asia follows a bottom-up investment process based on a disciplined evaluation of companies through direct visits by its fund managers. Stock selection is the major source of added value. No stock is bought without the fund managers having first met management. The Investment Manager estimates a company's worth in two stages, quality then price. Quality is defined by reference to management, business focus, the balance sheet and corporate governance. Price is calculated by reference to key financial ratios, the market, the peer group and business prospects. Top-down investment factors are secondary in the Investment Manager's portfolio construction, with diversification rather than formal controls guiding stock and sector weights. Except for the maximum market capitalisation limit, little regard is paid to market capitalisation.
A detailed description of the investment process and risk controls employed by the Investment Manager is disclosed in the Annual Report. A comprehensive analysis of the Company's portfolio is disclosed below including a description of the ten largest investments, the portfolio investments by value, sector/geographical analysis and currency/market performance. At the year end the Company's portfolio consisted of 76 holdings.
The Company does not have a benchmark. The Investment Manager utilises two general regional indices, the MSCI AC Asia Pacific ex Japan Index (currency adjusted) and the MSCI AC Asia Pacific ex Japan Small Cap Index (currency adjusted), as well as peer group comparisons for Board reporting. It is likely that performance will diverge, possibly quite dramatically in either direction, from these or any other indices. The Investment Manager seeks to minimise risk by using in depth research and does not see divergence from an index as risk.
Key Performance Indicators (KPIs)
The Board uses a number of financial performance measures to assess the Company's success in achieving its objective and 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:
NAV Return (per share)
The Board considers the Company's NAV total return figures to be the best indicator of performance over time and is therefore the main indicator of performance used by the Board. The figures for this year and for the past 1, 3, 5, 10 years and since inception are set out in the Annual Report.
Performance against comparative indices
The Board also measures performance against a combination of two regional indices - the MSCI AC Asia Pacific ex Japan Index (currency adjusted) and the MSCI AC Asia Pacific ex Japan Small Cap Index (currency adjusted) together with comparison against its peers. Graphs showing performance are shown in the Annual Report. The Board also monitors share price performance relative to competitor investment trusts over a range of time periods, taking into consideration the differing investment policies and objectives employed by those companies.
Share price (on a total return basis)
The Board also monitors the price at which the Company's shares trade relative to the MSCI Asia Pacific ex Japan Index (sterling adjusted) on a total return basis over time. A graph showing the total NAV return and the share price performance against the comparative index is shown in the Annual Report.
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 objective is to avoid large fluctuations in the discount relative to similar investment companies investing in the region by the use of share buy backs subject to market conditions. A graph showing the share price premium/(discount) relative to the NAV is also shown in the Annual Report.
The Board's aim is to maintain or increase the Ordinary dividend so that shareholders can rely on a consistent stream of income. Dividends paid over the past 10 years are set out in the Annual Report.
Principal Risks and Uncertainties
There are a number of risks which, if realised, could have a material adverse effect on the Company and its financial condition, performance and prospects. The Board has carried out a robust assessment of these risks, in the table below together with a description of the mitigating actions taken by the Board. The principal risks associated with an investment in the Company's shares are published monthly on the Company's factsheet or they can be found in the pre-investment disclosure document published by the Manager, both of which are 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 annual Audit Committee and a summary of the principal risks are set out below.
Investment strategy and objectives - the setting of an unattractive strategic proposition to the market and the failure to adapt to changes in investor demand may lead to the Company becoming unattractive to investors, a decreased demand for shares and a widening discount.
The Board keeps the level of discount at which the Company's shares trade as well as the investment objective and policy under review and in particular holds an annual strategy meeting where the Board reviews updates from the Investment Manager, investor relations reports and the Broker on the market. In particular, the Board is updated at each board meeting on the make up of and any movements in the shareholder register.
Investment portfolio, investment management - investing outside of the investment restrictions and guidelines set by the Board could result in poor performance and inability to meet the Company's objectives, as well as a weakening discount.
The Board sets, and monitors, its investment restrictions and guidelines, and receives regular board reports which include performance reporting on the implementation of the investment policy, the investment process and application of the guidelines. The Investment Manager attends all Board meetings. The Board also monitors the Company's share price relative to the NAV.
Financial obligations - the ability of the Company to meet its financial obligations, or increasing the level of gearing, could result in the Company becoming over-geared or unable to take advantage of potential opportunities and result in a loss of value to the Company's shares. It could also result in the Company being unable to meet the interest repayments due on the CULS.
The Board sets a gearing limit and receives regular updates on the actual gearing levels the Company has reached from the Investment Manager together with the assets and liabilities of the Company and reviews these at each Board meeting. In addition, Aberdeen Fund Managers Limited, as alternative investment fund manager, has set an overall leverage limit of 2x on a commitment basis (2.5x on a gross notional basis) and includes updates in its reports to the Board.
Financial and Regulatory - the financial risks associated with the portfolio could result in losses to the Company. In addition, failure to comply with relevant regulation (including the Companies Act, the Financial Services and Markets Act, the Alternative Investment Fund Managers Directive, Accounting Standards and the listing rules, disclosure and prospectus rules) may have an impact on the Company.
The financial risks associated with the Company include market risk, liquidity risk and credit risk, all of which are mitigated by the Investment Manager. Further details of the steps taken to mitigate the financial risks associated with the portfolio are set out in note 18 to the financial statements. The Board relies upon the Standard Life Aberdeen Group to ensure the Company's compliance with applicable regulations and from time to time employs external advisers to advise on specific concerns.
Operational - the Company is dependent on third parties for the provision of all systems and services (in particular, those of Aberdeen Asset Management) and any control failures and gaps in these systems and services could result in a loss or damage to the Company.
The Board receives reports from the Manager on internal controls and risk management at each board meeting. It receives assurances from all its significant service providers, as well as back to back assurances where activities are themselves sub-delegated to other third party providers with which the Company has no direct contractual relationship. Further details of the internal controls which are in place are set out in the Directors' Report.
Investing in unlisted securities - since shareholder approval at the 2016 AGM, the Company has had the ability to invest in unlisted securities, although no such investments have yet been made. Unquoted investments are long-term in nature and they may take a considerable period to be realised. Unquoted investments are less readily realisable than quoted securities. Such investments may therefore carry a higher degree of risk than quoted securities. In valuing investments the Company may rely to a significant extent on the accuracy of financial and other information provided to the Manager. Furthermore, unquoted valuations are subject to the economic performance of the countries that the companies are based in or trade with, wider global economic trends and the performance of listed peer multiples which may influence valuations significantly. If public markets decline or economic growth falters then this will impact negatively.
The Board recognises that investing in unlisted securities carries a higher risk/reward profile. Accordingly it seeks to mitigate this risk by limiting investment into such securities to 10% of the Company's net assets (calculated at the time of investment).
Promoting the Company
The Board recognises the importance of promoting the Company to prospective investors both for improving liquidity and enhancing the value and rating of the Company's shares. The Board believes an effective way to achieve this is through subscription to and participation in the promotional programme run by the Manager on behalf of a number of investment trusts under its management. The Company's financial contribution to the programme is matched by the Manager. The Manager reports quarterly to the Board giving analysis of the promotional activities as well as updates on the shareholder register and any changes in the make up of that register.
The purpose of the programme is both to communicate effectively with existing shareholders and to gain new shareholders with the aim of improving liquidity and enhancing the value and rating of the Company's shares. Communicating the long-term attractions of your Company is key and therefore the Company also supports the Manager's investor relations programme which involves regional roadshows, promotional and public relations campaigns.
The Board recognises the importance of having a range of skilled and experienced individuals with the right knowledge in order to allow the Board to fulfill its obligations and notes that gender is only one aspect of diversity. At 31 July 2017, there were five male Directors and one female Director on the Board.
Environmental, Social and Human Rights Issues
The Company has no employees as the Board has delegated day to day management and administrative functions to Aberdeen Fund Managers Limited. There are therefore no disclosures to be made in respect of employees. The Company's socially responsible investment policy is outlined below.
Socially Responsible Investment Policy
The Board acknowledges that there are risks associated with investment in companies which fail to conduct business in a socially responsible manner and has noted the Manager's policy on social responsibility. The Investment Manager considers social, environmental and ethical factors which may affect the performance or value of the Company's investments as part of its investment process. In particular, the Investment Manager encourages companies in which investments are made to adhere to best practice in the area of Corporate Governance. They believe that this can best be achieved by entering into a dialogue with company management to encourage them, where necessary, to improve their policies in this area. The Company's ultimate objective, however, is to deliver superior investment return for its shareholders. Accordingly, whilst the Investment Manager will seek to favour companies which pursue best practice in the above areas, this must not be to the detriment of the return on the investment portfolio.
Modern Slavery Act
Due to the nature of the Company's business, being a company that does not offer goods and services to customers, the Board considers that it is not within the scope of the Modern Slavery Act 2015 because it has no turnover. The Company is therefore not required to make a slavery and human trafficking statement. In any event, the Board considers the Company's supply chains, dealing predominantly with professional advisers and service providers in the financial services industry, to be low risk in relation to this matter.
Global Greenhouse Gas Emissions
The Company has no greenhouse gas emissions to report from the operations of its business, nor does it have responsibility for any other emissions producing sources under the Companies Act 2006 (Strategic Report and Directors' Reports) Regulations 2013.
The Company does not have a formal fixed period strategic plan but the Board formally considers risks and strategy at least annually. The Board considers the Company, with no fixed life, to be a long term investment vehicle, but for the purposes of this viability statement has decided that a period of three years is an appropriate period over which to report. The Board considers that this period reflects a balance between looking out over a long term horizon and the inherent uncertainties of looking out further than three years.
In assessing the viability of the Company over the review period the Directors have conducted a robust review of the principal risks focussing upon the following factors:
- The principal risks detailed in the Strategic Report;
- The ongoing relevance of the Company's investment objective in the current environment;
- The demand for the Company's Shares evidenced by the historical level of premium and or discount;
- The level of income generated by the Company;
- The liquidity of the Company's portfolio; and,
- The flexibility of the Company's bank facilities.
Accordingly, taking into account the Company's current position, the fact that the Company's investments are mostly liquid and the potential impact of its principal risks and uncertainties, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due for a period of three years from the date of this Report. In making this assessment, the Board has considered that matters such as significant economic or stock market volatility, a substantial reduction in the liquidity of the portfolio, or changes in investor sentiment could have an impact on its assessment of the Company's prospects and viability in the future.
Many of the non-performance related trends likely to affect the Company in the future are common across all closed ended investment companies, such as the attractiveness of investment companies as investment vehicles, the impact of regulatory changes (including MiFID II and Packaged Retail Investment and Insurance Products) and the recent changes to the pensions and savings market in the UK. 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 my Chairman's statement whilst the Investment Manager's views on the outlook for the portfolio are included Investment Manager's Review.
24 October 2017
STRATEGIC REPORT - INVESTMENT MANAGER'S REVIEW
Asian markets maintained their upward trajectory in the year under review amid renewed interest in the region. Returns were further flattered by sterling's bouts of weakness, especially in the wake of the UK's surprise decision to leave the European Union and the subsequent aftershocks from the Conservative Party's political missteps, including the call for a snap election that ended in a hung parliament.
In Asia, risk appetite improved on the back of a recovery in commodity prices, aided by steadier oil prices, as well as better economic data from China. Leading the region higher were markets in India, Taiwan and China, while laggards included Indonesia, the Philippines and South Korea. The small-cap sector also benefited from liquidity inflows driven by investors' search for growth.
For the year under review, the portfolio did well both in absolute and relative terms, outperforming the MSCI AC Asia Pacific ex Japan Small Cap Index.
At the stock level, financial-sector holdings were at the forefront in contributing to relative performance. Making up the top-performing names were India's City Union Bank and Thailand's Tisco Financial. They were helped in part by prospects of higher interest rates that could result in better profit margins, but also driven by very local factors. For instance, City Union Bank benefited from Prime Minister Narendra Modi's demonetisation policy that drove consumers holding cash to place them in bank deposits instead; and Tisco Financial was lifted by improving asset quality that outpaced that of the larger lenders. Separately, Tisco bought Standard Chartered's Thai retail operations which will be integrated into the group. The move, which we view positively, is in line with its long-term strategy.
Several portfolio holdings saw their share prices rise because they were rumoured to be, or were actual targets of mergers and acquisitions. This included MP Evans, which faced a hostile takeover. The company successfully fought off the unsolicited bid from KL Kepong, which had undervalued its plantations portfolio. We had engaged with the Boards of both parties during the offer process and welcomed the outcome, as MP Evans has shown that it has a clear strategy for growth. In addition, management has since started divesting non-core assets to improve shareholders' returns, which have supported its share price. Indonesia's Bank OCBC Nisp was also buoyed by market rumours about a possible takeover, which fuelled a spike in its share price at the end of 2016. In Singapore, small-cap property companies were also the subject of speculation amid a flurry of deals. In particular, property developer Bukit Sembawang was bandied about as a possible target, given its valuable and highly sought-after land bank. It also enjoyed a re-rating after a moderate relaxation of government measures lifted stocks in the real estate sector.
Other underlying holdings that did well included Millennium and Copthorne Hotels, which was boosted by good fundamentals and New Zealand's upbeat tourism sector; as well as Pacific Basin Shipping, which is seeing a recovery in freight rates amid a rosier operating backdrop and is well positioned to capitalise on industry consolidation. We had supported its earlier rights issue that helped strengthen its balance sheet, which will allow it to pick up bargains from among distressed shipping assets.
Conversely, we missed out to an extent on the technology sector's strong performance. This was largely because of the portfolio's lack of exposure to the tech-heavy Taiwanese stockmarket, which did well as share prices of Apple suppliers rose ahead of the iPhone 8 launch. We remain cautious about investing in this export-oriented economy that offers a relatively narrow selection of companies, many of which lack market leadership, in terms of both technology and branding, and are subject to the pricing whims of their large global customers. However, we do have exposure to Hana Microelectronics, which benefited the portfolio as its shares gained from brighter sales prospects underpinned by a strengthening US economy.
Since the interim report, we continued to find attractive opportunities as we scoured the small-cap universe for potential additions to the portfolio. We initiated four new holdings: Taiwanese power-tools maker Basso, Korean contact-lens maker Interojo, attractively-valued Pakistani cement company Maple Leaf and Thailand's Mega Life Sciences.
We like Basso for its focus on maintaining profitability through vertical integration and investments in innovation. The company has a diversified clientele, including Hong Kong-listed Techtronic Industries, which also makes such tools.
Interojo's attractiveness lies in its high entry barriers, thanks to its manufacturing capability, distribution and products that are approved by regulators. It has a solid balance sheet and an operating margin of around 30%, with growth driven by an expanding product portfolio at home and a broadening distribution presence in China and Japan.
We found Maple Leaf appealing, given its solid niche in northern Pakistan, as well as a firm commitment to establishing a sound brand and a good distribution network that will allow it to improve its long-term profitability.
Finally, Mega Life Sciences manufactures and sells pharmaceutical and nutraceutical products domestically and across frontier markets. We like the company because its earnings continue to be resilient. It is also well positioned to benefit from its growing exposure to key frontier markets that are structurally attractive over the longer term.
Against this, we sold Hong Kong's casual-dining restaurant chain Café De Coral, which faces a tough operating environment. Holding this company over the long term has proven beneficial, as we made a tidy profit when we exited the position.
We are cautiously optimistic about Asian small-cap equities in the months ahead, with positive momentum in the global economy providing the underpinning for growth within the region. China's increased pragmatism, backed by Beijing's desire to keep the economy on a sustainable growth path, while holding in check its reform agenda ahead of leadership changes, should also bode well for market sentiment. As such, each economy within Asia is likely to maintain their current trajectories, backed by the broad recovery in exports, which will benefit smaller companies dependent on the domestic sector. In addition, inflation is expected to remain benign, with oil prices penned in by a significant oversupply and record US shale production.
However, risks to this global backdrop persist too, particularly with a combative Trump administration and its penchant for brinksmanship, uncertainties surrounding the Brexit negotiations, federal elections in Germany and the direction of monetary policy among the world's major central banks, as well as geopolitical developments on the Korean peninsula and the Middle East, all of which will play a part in shaping investor sentiment. However, we are confident that the portfolio's underlying holdings, backed by healthy balance sheets and helmed by experienced management, should be able to overcome these challenges and keep their businesses on course, achieving their strategic goals.
Aberdeen Asset Management Asia Limited
24 October 2017
STRATEGIC REPORT - RESULTS