Annual Financial Report

ABERDEEN ASIAN INCOME FUND LIMITED

Legal Entity Identifier (LEI):  549300U76MLZF5F8MN87

ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2025

 

HIGHLIGHTS

 

·      Share price total return for the year of 30.0% and NAV total return of 22.2%.

·      Dividend yield at the year end of 6.2%.

 

PERFORMANCE HIGHLIGHTS

 

Ordinary share price total return AB			Net asset value total return AB
2025	+30.0%		2025	+22.2%
2024	+12.0%		2024	+10.8%
MSCI AC Asia Pacific ex Japan Index total return (currency adjusted) B			Dividend yield ACD
2025	+21.3%		2025	6.2%
2024	+12.6%		2024	6.6%
Dividend per Ordinary share			Earnings per Ordinary share - basic (revenue)
2025	16.24p		2025	14.73p
2024	14.43p		2024	11.35p
Discount to net asset value per Ordinary share AC			Ongoing charges AE
2025	7.6%		2025	0.92%
2024	12.5%		2024	0.85%
Net gearingAC
2025	4.7%
2024	7.2%
A Alternative Performance Measure.
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.

 

 

For further information, please contact:

Ben Heatley

Head of Closed End Fund Sales

Aberdeen Group plc

07796 564562

 

SUMMARY OF RESULTS

 

Financial Highlights

 

	31 December 2025	31 December 2024	% change
Net asset value total return A	+22.2%	+10.8%
Share price (Ordinary) total return A	+30.0%	+12.0%
MSCI AC Asia Pacific ex Japan Index total return (currency adjusted)	+21.3%	+12.6%
Market capitalisation (£million)	£376.2	£330.7	+13.8
Discount to net asset value per Ordinary share A	7.6%	12.5%
Ongoing charges ratio A	0.92%	0.85%
Dividend and earnings
Total return per Ordinary share B	50.95p	21.49p	n/a
Earnings per Ordinary share - basic (revenue) B	14.73p	11.35p	+29.8
Dividends per Ordinary share C	16.24p	14.43p	+12.5
Dividend cover per Ordinary share A	0.91	0.79	-
Revenue reserves (£million) D	£1.5	£3.5
Dividend yield A	6.2%	6.6%
A Considered to be an Alternative Performance Measure.
B Measures the relevant earnings for the year divided by the weighted average number of Ordinary shares in issue (see note 10).
C The figure for dividends reflects the years in which they were earned (see note 9).
D The revenue reserves figure takes account of the fourth interim dividend amounting to £6,356,000 (2024 - fourth interim amounting to £10,148,000).

 

Capital Performance to 31 December 2025

 

	31 December 2025	31 December 2024	% change
Total assets (£million)	£438.4	£410.3	+6.8
Total equity shareholders' funds (net assets) (£million)	£407.0	£377.9	+7.7
Net asset value per Ordinary share	285.56p	251.42p	+13.6
Ordinary share price	264.00p	220.00p	+20.0

 

Long Term Total Return Performance to 31 December 2025

 

	1 year	3 year	5 year	Since launch B
	% return	% return	% return	% return
Net asset value A	+22.2	+38.8	+48.5	+563.1
Share price (Ordinary) A	+30.0	+48.4	+51.9	+531.2
MSCI AC Asia Pacific ex Japan Index (currency adjusted)	+21.3	+38.7	+27.1	+458.0
A      Considered to be an Alternative Performance Measure.
B      Launch date being 20 December 2005.

 

CHAIRMAN'S STATEMENT

 

Highlights

●    Significant Outperformance: a share price total return of 30% and NAV total return of 22.2%, both surpassing the Index return of 21.3%.

●    Strong Yield: Year-end dividend yield of 6.2% following the introduction of the enhanced dividend policy to broaden the Company's appeal.

●    Shareholder Value: Discount narrowed significantly to 7.6% from 12.5% at the start of the year.

●    Consistent Growth: Achieved the 17th consecutive year of dividend increases, cementing the Company's status as an AIC 'Next Generation Hero'.

 

Introduction

Aberdeen Asian Income Fund was launched in December 2005, and this report marks the Company's 20th anniversary. Looking back over this period, it is highly satisfying to observe the returns generated for shareholders, which demonstrate the compelling opportunities for both income and capital growth within the Asia Pacific region. The annualised net asset value ("NAV") total return from launch until 31 December 2025 was 9.9% and the annualised share price total return was 9.6%. These returns compare favourably with an annualised total return of 9.0% from the MSCI AC Asia Pacific ex Japan Index (the "Index").

 

In relation to dividend growth provided to shareholders, the Board is pleased to note that the increase for the year just past, which is set out below, represents the seventeenth 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.

 

Performance for the Year

For the year under review, I am pleased to report another year of strong returns for shareholders. The share price total return was 30.0% and the NAV total return was 22.2%. These returns compare favourably with a total return of 21.3% from the Index.

 

In addition to the outperformance for the year, the Company continues to outperform the Index over the longer three and five year periods, in both NAV and share price total return terms.

 

The total dividend for the year was 16.24p per share, which equates to a dividend yield of 6.2% at the year end. The dividend increased by 12.5% compared to the previous year following the introduction of the enhanced dividend policy at the start of the year, which is set out in more detail below.

 

It is also pleasing to report a narrowing of the discount to 7.6% at the year end, from 12.5% at the start of the year.

 

Throughout the year, the Investment Manager's focus on high quality, income generating companies across Asia provided resilience against a backdrop of heightened macroeconomic volatility and political uncertainty. 2025 was a tough year for Quality and High Yield investing, with both styles lagging the broader market. Against that headwind, the Company's outperformance was a function of deliberate portfolio positioning. Careful stock selection, valuation discipline and prudent risk management ensured that capital was allocated to businesses with durable cash flows and balance sheet strength, enabling the portfolio to outperform the Index despite a less favourable environment.

 

A more detailed review of market developments and the portfolio's performance over the year can be found in the Investment Manager's Review.

 

Revenue and Dividends

In January 2025, as part of efforts to broaden the appeal of the Company's shares to a wider range of investors and to reflect the sustained investor appetite for yield in the current interest rate environment, the Board introduced an enhanced dividend policy such that the Company's dividend is now set at 1.5625% per quarter of the NAV, equating to approximately 6.25% of NAV per annum. The dividend is 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).

 

Consequently, four dividends were declared in respect of the year amounting to 16.24p per share, resulting in a yield of 6.2% based on the year end share price.

 

Revenue earnings per share for the year were 14.73p, an increase of 29.8% compared to 2024. Income generation from the portfolio continues to be strong, with the Company benefitting from the Investment Manager's focus on high-yielding companies with strong fundamentals.

 

Introduction of Continuation Vote

Alongside the introduction of 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.

 

Share Capital Management

The Company bought back £17.7 million worth of shares during the year to be held in treasury, representing 5.2% of the shares in issue at the start of the year, at an average discount of 10.3% and providing an estimated enhancement of 0.5% to the NAV per share.

 

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, £31.4 million of which was drawn down, resulting in gearing (net of cash) of 4.7% (2024: 7.2%).

 

The loan facility matured in February 2026 and has been replaced with a evergreen 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 12 noon on Tuesday 12 May 2026 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 a buffet lunch. 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.

 

Online Shareholder Presentation

In order to encourage as much interaction as possible with our shareholders, and especially for those who are unable to attend the AGM, we will also be hosting an Online Shareholder Presentation, which will be held at 10:30 a.m. on Wednesday 6 May 2026. At this event you will receive a presentation from the Investment Manager and have the opportunity to ask questions of the Chairman and the Investment Manager.

 

Full details on how to register for the online event can be found on the Company's website. Questions can be registered in advance and a recording of the event will be available on the Company's website for anyone who was unable to join.

 

Dividend Re-Investment

Shareholders who hold their shares on the main register are reminded that the Company's Registrar, Computershare, operates a dividend re-investment plan. This can be a good way of building up a shareholding in the Company through 'pound cost averaging', whereby quarterly dividends are re-invested automatically in new shares.

 

Shareholders who hold their shares through a stockbroker or online dealing platform should be able to request for their dividends to be re-invested in a similar way, by contacting their stockbroker or selecting this option through their online dealing account.

 

Board Composition

As previously announced, having served as a Director since May 2016, I will retire from the Board at the AGM. It has been a privilege to serve, particularly as Chairman since 2022, and I have thoroughly enjoyed working with a team so committed to enhancing shareholder value. I would like to thank my Board colleagues for their unwavering support.

 

Jane Routledge will succeed me as Chair upon my retirement. Jane has been an excellent Director since her appointment in May 2024 and I am confident that she and the other Directors will lead the Company successfully through its next chapter.

 

The Board is in the process of recruiting a new Director and hopes to announce an appointment soon.

 

Outlook

Asia is one of the few regions where income and growth continue to move in tandem. Companies are strengthening their balance sheets and improving how they allocate and manage capital. Crucially, they are increasingly acknowledging that dividends play a key role in enhancing shareholder returns, which in turn boosts share prices.

 

China is now incrementally more of an income market than it was a few years ago. The same is true in South Korea, where rising distribution ratios are tied to better governance. These governance changes matter for long-term returns.

 

AI continues to dominate investor sentiment. Valuations have climbed and 'froth' is appearing in some segments. In addition, the discount to AI peers in developed markets has narrowed. As a result, the Investment Manager has become more cautious and, hence, more selective in this sector. A positive factor for Asia is that its presence in the AI ecosystem is more rooted in hardware, infrastructure and components, which are the tangible backbone of the global building-out of AI capabilities. At the same time, the Investment Manager's focus on dependable yield also means that it is looking more closely at non-AI quality companies and areas where growth and dividends can compound without unnecessary distractions.

 

The overall investment backdrop continues to present a number of headwinds, including geopolitical risk and macroeconomic uncertainty, not least developments in the Middle East since the end of the year. Over the course of the year, the Investment Manager made a number of significant portfolio adjustments, resulting in a robust portfolio that is better positioned to navigate potential volatility in the months ahead. Modest country tilts also help to ensure that geopolitical developments do not overly influence portfolio outcomes.

 

Looking ahead, the Board is cautiously positive. The earnings base across the portfolio is resilient, dividend cuts appear unlikely, and any period of US Dollar softness or policy easing by the Federal Reserve would be supportive for equities and fund flows in Asia. We consider that the case for investing in the Company remains ever compelling.

 

Ian Cadby

Chairman

17 March 2026

 

 

INVESTMENT MANAGER'S REVIEW

 

01           How did Aberdeen Asian Income Fund perform in 2025?

2025 marked another year of good returns for the Company. The share price rose 30% on a total return basis, and the net asset value ("NAV") returned 22.2%, outperforming a total return of 21.3% for the MSCI AC Asia Pacific ex Japan Index (the "Index").

 

Aside from the strong capital returns, we are also pleased to report that the total dividend rose for the 17th consecutive year, by 12.5% to 16.24p per share, providing a yield of 6.2% at the year end.

 

In addition, the discount of the share price to the NAV narrowed steadily through the year, to 7.6% at the year end, from 12.5% at the start of the year.

 

The Company continues to outperform the Index over the longer three and five-year periods.

 

02           What drove performance?

Performance during the year was mainly driven by stock selection. This was a pleasing outcome, given that we invest in high-quality dividend franchises with reliable free cash flow and disciplined distribution policies. The portfolio's performance was achieved despite style headwinds in a market that favoured value and cyclical stocks over quality and yield.

 

Overall, Asian equities proved resilient, as subsiding trade tensions, hopes of interest rate cuts and excitement over artificial intelligence ("AI") outweighed worries over US tariffs, the US Federal Reserve's policy track, and the global economy.

 

South Korea and Taiwan led the way thanks to huge demand for AI-related chips and hardware. The AI-related exposures in the portfolio were positive contributors. Taiwanese companies Accton Technology, ASE Technology and Taiwan Union Technology benefited from AI-driven hardware demand. South Korea's Samsung Electronics boosted performance, as semiconductor prices rose on rising memory needs, although this was pared by the lighter positioning in SK Hynix.

 

The Chinese market rallied on the launch of the low-cost DeepSeek AI model, which boosted AI-related companies. Across the portfolio, we saw mixed contributions. Insurers such as PICC Property and Casualty and Ping An Insurance re-rated from low bases and restructuring progress. Structural weakness, however, persisted in property and consumer companies, weighing on dairy producer Inner Mongolia Yili Industrial and Hangzhou Robam Appliances, while being underweight Alibaba was a drag on performance, given its AI exposure.

 

In contrast, Indian markets fell on tariff headwinds, slowing growth and earnings downgrades. Their exposure to global AI trades was also low. Our lighter positioning in India thus worked to the Company's favour. However, this was overshadowed by stock weakness. Power Grid Corporation disappointed on guidance, while Tata Consultancy Services and Infosys fell amid the soft patch in the information technology ("IT") services sector.

 

03           China has rallied sharply. Are you still seeing opportunities?

Yes, but selectively. We are seeing opportunities in areas that are recovering from a low base and low valuations caused by four years of policy tightening.

 

A good example is Ping An Insurance. The insurer has navigated through tightening regulations, falling interest rates and a shrinking agency force, which combined to compress valuations across the sector.

 

The good thing is that Ping An has moved beyond this "repair" stage and is now on the recovery path. Asset yields are improving as long-term rates stabilise, and insurance capital is returning to equities.

 

Ping An's latest results show that new business value margins are recovering and are significantly higher than its peers. Growth in contractual services has returned, and bancassurance is recovering under tighter distribution rules.

 

As a result, Ping An is back in the reckoning and poised to grow from a low case, with yields, profits and return on equity ("ROE") rebounding steadily.

 

04           AI has also seen a strong rally. What's your view now?

AI remains a structural growth theme, but last year's rally has pushed expectations and valuations sharply higher across parts of the supply chain. From here, returns over the shorter term are likely to be more sensitive to delivery on earnings.

 

That said, the longer-term story remains intact. AI is moving beyond hype to real earnings, as AI applications and chips proliferate. Capital expenditure ("capex") is high; on servers, memory, advanced packaging, power and cooling, where supply is tight and demand visibility is improving.

 

Our AI exposure is in Taiwan's technology sector. We prefer semiconductors and technology hardware, where earnings visibility is better and the capex runway is strong, over the downstream segments such as consumer electronics and smartphone and PC makers, where demand is more cyclical and pricing power is weaker.

 

For instance, a core holding in the portfolio is technology giant Taiwan Semiconductor Manufacturing Company ("TSMC"), which is still expanding capacity as AI demand grows. We also like the key "picks and shovels" enablers, including ASE Technology, which is benefiting from the rising need for advanced chip packaging and testing.

 

As an income strategy, we find limited opportunities in new growth sectors. We have therefore started rotating part of the portfolio towards quality compounders outside the AI theme. These are businesses with predictable cash flows, sensible balance sheets, and valuations that have not been caught up in the thematic AI optimism. It also helps buffer the portfolio from over-concentration in one narrative, as concentration and valuation risks tend to rise in tandem.

 

A recent example would be Medibank Private, the best quality company in the Australian private health insurance sector. Whilst growth is not exciting in an Asian context, the business has steady cash generation, a healthy dividend and defensive characteristics. Its strong franchise and capable management team support market-leading profitability and return through cycles. Medibank bears the hallmarks of a classic long-term compounder and, at the current level, we view the valuation as relatively undemanding.

 

We still like AI but prefer to be more selective, valuation-conscious and disciplined, as we aim to balance structural growth with dependable income and resilience.

 

05           How are you positioning the portfolio for the year ahead?

We are comfortable with how the portfolio is shaping up for 2026. As the Chairman noted in the Half-Yearly Report, we have largely completed the refinement of our strategy. This balances growth and income across key Asian markets more deliberately, with the tightening of country weights and lifting of stock-specific risk, thereby expressing our convictions more cleanly. We have avoided making big directional calls; instead, we are backing companies whose earnings and dividends look clearer than the macro noise.

 

Quality remains the key element in our stock picks. Although quality struggled last year, our stock selection still delivered outperformance. The portfolio is well placed if the market starts rewarding fundamentals again. Even if the conditions remain challenging, the holdings should continue to generate steady earnings and cash flow despite the macro and market sentiment.

 

On country positioning, we have avoided big bets. We remain underweight India while we wait for signs of a stabilising domestic recovery and easing tariff risks. China's recovery remains patchy, but we are finding opportunities where the base is low and operational changes can unlock value, such as life insurance. In addition, governance-driven improvements in both China and South Korea support the income side of the portfolio.

 

Our refined total return approach combines yield and earnings growth, while maintaining a quality income focus. Throughout the year, we initiated positions in companies that are strong dividend franchises at various stages of their life cycles. Some of these companies could be lower yielding, but based on their high-quality business models, dividend policies, and growth potential, are strong dividend payers.

 

Some of the more recent initiations included China Resources Mixc Lifestyle Services, which operates premium malls and mixed-use developments. It is a proxy for urban consumption and has a strong pipeline of assets in tier-one cities (e.g. Beijing, Shanghai).

 

In Taiwan, we added a new holding in Sino-American Silicon Products ("SAS"). The group owns a large stake in GlobalWafers, one of the world's leading silicon wafer suppliers, alongside businesses in related areas such as compound semiconductors and automotive power electronics. It is a critical supplier to the semiconductor industry. Its core products - high-purity silicon ingots and wafers - are key inputs for making integrated circuits ("IC"s), memory chips, power devices, and other components.

 

Among the exits, we sold the holding in Insurance Australia on waning near-term conviction due to concerns over the pricing cycle and mergers and acquisitions.

 

06           What does the portfolio look like?

We divide the portfolio into three groups to shape position sizes, valuation focus and holding periods.

 

First, compounders are high-quality businesses with sustainable earnings and cash-flow growth, which are held patiently for long-term returns. Here, we hold Tencent Holdings, a high-quality China internet franchise with resilient cash-generating core businesses and disciplined AI investment. Tencent is strengthening its ecosystem, with long-run monetisation potential across its social media and payment platforms.

 

Second, consistent holdings in reliable and less cyclical companies that provide reliable income but limited growth, helping support the Company's yield. In this section of the portfolio is Region Group, a real estate investment trust with resilient income from convenience-based Australian retail assets. As interest rates ease, transaction activity is picking up, supporting property values and potential acquisitions. Strong capital access and a decent yield underpin distributions, with potential for medium-term growth.

 

Finally, cyclical companies are more sensitive to the economic, credit or interest-rate cycle and are used more tactically, based on fundamentals and valuation. An example would be China Construction Bank, one of China's largest state-owned banks with a large and stable retail deposit base that keeps funding costs low. Its loan book is concentrated in lower-risk mortgages, with some exposure to infrastructure lending.

 

This "3C" framework (Compounders, Consistent Holdings and Cyclical Companies) helps balance sustainable income with targeted growth opportunities.

 

07           How is the corporate reform drive across Asia impacting the portfolio?

For years, Asian corporate reform was mostly talk but now there is tangible policy change and progress, albeit at an uneven pace across markets. We are seeing higher distribution ratios, more consistent share buybacks, and a clearer recognition of minority shareholder interests.

 

This shift is especially apparent in South Korea. The government has promised sweeping capital market reforms to narrow the so-called South Korea discount, where local shares trade below their fundamental value. Corporate share buybacks or cancellations have more than doubled over the past two years since the introduction of the government's corporate 'value-up' initiative in 2024. Valuation metrics have also improved. At the end of 2025, the MSCI Korea Index recorded a price-to-book ratio ("PBR") of 1.6 and a price-to-earnings ratio ("PER") of 17.5, both exceeding their 10-year averages. Similarly, China is pushing state-owned enterprises to raise their dividends.

 

These reforms benefit the portfolio in two main ways. Firstly, more dependable income. With the reform drive, more companies are moving towards sustainable dividends rather than one-off or opportunistic distributions such as special dividends. South Korea is a good example: companies that have historically hoarded cash are now signalling discipline through higher dividends. The market tends to reward those with higher multiples, that is, higher prices because of expectations of better returns.

 

Secondly, the potential of a re-rating. When governance improves, the cost of capital falls and the market starts to reward companies that commit to cash returns and governance. As reforms become embedded in the corporate sector, there is room for a valuation catch-up for companies that had been priced as if governance change was unlikely to arrive. Life insurers in China illustrate this dynamic: after years of weakness and restructuring, the low base plus better operational discipline has created space for both earnings recovery and multiple expansion.

 

These trends broaden the opportunity set for the portfolio. We are no longer confined to traditional dividend markets such as Australia and Singapore, and we can now source for income and growth in markets where that was not available in the past.

 

08           Will income investing in Asia still pay off in 2026?

Yes, we believe so. The income story in Asia still has a long way to go.

 

Asia is still the world's growth engine, driving over half of global economic growth. This is important for income investors because higher nominal GDP growth tends to support stronger total shareholder returns, especially in markets where cash generation is improving and capital discipline is tightening.

 

We have seen the clearest shift in the technology sector. Several Asian technology leaders, such as TSMC and Samsung Electronics which are held in the portfolio, now resemble global compounders rather than cyclical manufacturers. They have net-cash balance sheets, generate high margins and follow clear distribution policies.

 

Policy is reinforcing this trend. Japan's 'value up' programme momentum has spread to South Korea, and to China and Singapore. What was once a confined opportunity set has broadened into a deeper, more reliable income universe. The phrase "technology doesn't yield" is less applicable to Asia now.

 

Our investing approach leans into this change. We favour companies where balance sheet strength, shareholder return discipline and cash flow visibility support both dividends and capital growth. We believe that quality with growth remains the most durable combination. Businesses that can fund dividends without compromising future expansion tend to hold up in both good times and bad times. Asia continues to provide that mix in sectors from financials to semiconductors to consumer platforms.

 

We expect Asia to remain a rewarding region for income investors in 2026, not only because of high yields but also strengthening fundamentals behind the companies. We will continue to use market volatility to opportunistically take positions in high-quality companies with good yield potential at sensible valuations.

 

 

Isaac Thong and Eric Chan

abrdn Asia Limited

17 March 2026

 

 

OVERVIEW OF STRATEGY

 

Launched in December 2005, Aberdeen 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.

 

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.

 

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.

 

Dividend Policy

The Company's dividend policy is to set the dividend at 1.5625% per quarter of the Company's net asset value ("NAV"), equating to approximately 6.25% of NAV per annum. The dividend is 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).

 

Duration and Continuation Vote

The Company does not have a fixed life. However, during the year, the Board 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 Index

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 (the "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 "Online Shareholder Presentation" 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 above. 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.

 

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 12 May 2026 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 NAV 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.

 

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.

 

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 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.

 

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.

 

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 Company has renewed its secured, £50 million multi-currency revolving credit facility with Bank of Nova Scotia, London Branch on an evergreen basis. 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. 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 NAV and benefit all shareholders. 7.8 million Ordinary shares were bought back during the year to be held in treasury, representing 5.2% of the shares in issue at the start of the year. The average discount to NAV of the shares bought back was 10.2% and the buybacks provided an estimated enhancement of 0.5% to the NAV per share.

 

Enhanced Dividend Policy and Introduction of Continuation Vote

In January 2025, as part of efforts to broaden the appeal of the Company's shares to a wider range of investors and to reflect the sustained investor appetite for yield in the current interest rate environment, the Board introduced an enhanced dividend policy such that the Company's dividend is now set at 1.5625% per quarter of the NAV, equating to approximately 6.25% of NAV per annum.

 

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 AGM 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 other recent initiatives, should help ensure a positive outlook for shareholder returns.

 

Online Shareholder Presentation

In order to encourage as much interaction as possible with shareholders, and especially for those who are unable to attend the AGM, the Board will be hosting an Online Shareholder Presentation, which will be held at 10:30 a.m. on Wednesday 6 May 2026. At this event shareholders will receive a presentation from the Investment Manager and have the opportunity to ask questions of the Chairman and the Investment Manager.

 

Full details on how to register for the online event can be found on the Company's website.

 

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.
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. 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.
Ongoing Charges Ratio	The Board monitors the Company's operating costs carefully.
Gearing	The Board ensures that gearing is kept within the Board's guidelines to the Investment Manager.

 

Principal and Emerging Risks

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 various geopolitical tensions.

 

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, during the year the Board introduced an enhanced dividend policy as part of efforts to broaden the appeal of the Company's shares to a wider range of investors and to reflect the sustained investor appetite for yield in the current interest rate environment. 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 AGM in 2028, and every three years thereafter.
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.
Income & Dividend - the dividend becomes significantly uncovered or unsustainable, or the dividend policy fails to meet investor demand, leading to a decreased demand for the Company's shares and a widening discount.	The Directors review revenue forecasts at each Board meeting and receive shareholder feedback from the Investment Manager and Broker on the attractiveness of the dividend.   In the event of an uncovered dividend, the Company has the ability to find dividends from a combination of revenue and capital reserves.
Marketing & Shareholder Communication - the setting of an inappropriate marketing strategy or a failure to address shareholder concerns could result in the Company not growing its audience of income seeking investors leading to a decline in demand for its shares and a widening of the discount.	The Board recognises the importance of an effective marketing strategy to help support liquidity in the Company's shares and reduce the discount.   In addition to marketing activities conducted by the Investment Manager, the Board has engaged an external 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 Board receives shareholder feedback from the Investment Manager and Broker and 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 7.8 million Ordinary shares during the year to be held in treasury, representing 5.2% of the shares in issue at the start of the year, at an average discount of 10.2% and providing an estimated enhancement of 0.5% to the NAV per share.
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.
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 and other third party service providers on their 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 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 service providers on an annual basis.   Further details of the internal controls which are in place are set out in the Directors' Report.
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 and other third party service providers on their internal controls and risk management processes, including on matters relating to cyber security.   The Board 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.
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.

 

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 Aberdeen Group on behalf of a number of investment companies under its management. The Company also supports the Aberdeen 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 Aberdeen Group.

 

The Company, through the Investment Manager, has also commissioned independent paid-for research which is available to download from the Company's website.

 

In addition, the Board has 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.

 

UK Stewardship Code and Proxy Voting

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.

 

Aberdeen Group 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.

 

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;

-        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 Company's £50 million revolving credit facility; and

-        the announcement by the Board during the year of the introduction of a continuation vote which will first be tabled at the Company's AGM 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.

 

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 whilst the Investment Manager's views on the outlook for the portfolio are included in its statement.

 

Ian Cadby

Chairman

17 March 2026

 

28 Esplanade

St Helier

Jersey JE2 3QA

 

 

DIVIDENDS AND TEN YEAR FINANCIAL RECORD

 

Dividends

	Rate	Ex-dividend date	Record date	Payment date
First interim 2025	3.65p	24 April 2025	25 April 2025	23 May 2025
Second interim 2025	3.84p	24 July 2025	25 July 2025	22 August 2025
Third interim 2025	4.29p	23 October 2025	24 October 2025	21 November 2025
Fourth interim 2025	4.46p	22 January 2026	23 January 2026	20 February 2026
2025	16.24p
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

 

Ten Year Financial Record

 

Year to 31 December	2016	2017	2018	2019	2020	2021	2022	2023	2024	2025
Total revenue (£'000)	20,947	21,758	21,056	20,996	16,942	20,198	21,841	24,021	22,286	25,989
Per Ordinary share (p)
Revenue return	9.15	9.58	9.25	9.42	7.41	8.95	10.23	11.97	11.35	14.73
Total return	49.12	33.14	(13.17)	22.29	27.10	25.88	(10.01)	5.18	21.49	50.95
Dividends payable	8.75	9.00	9.15	9.25	9.30	9.50	10.00	11.75	14.43	16.24
Net asset value per Ordinary share (p)	211.82	235.63	213.96	227.15	245.40	262.76	243.44	238.59	251.42	285.56
Share price per Ordinary share (p)	194.25	218.00	195.75	214.00	228.50	231.00	215.00	208.00	220.00	264.00
Equity shareholders' funds (£'000)	396,028	431,869	382,199	403,403	431,476	450,790	413,447	398,868	377,895	406,964

 

 

INVESTMENT PORTFOLIO

 

List of Investments
As at 31 December 2025
		Valuation	Total	Valuation
		2025	assets A	2024 B
Company	Country	£'000	%	£'000
Taiwan Semiconductor Manufacturing Company	Taiwan	50,837	11.6	56,804
Samsung Electronics (Pref)	South Korea	28,753	6.6	12,650
Tencent Holdings	Hong Kong	26,337	6.0	9,460
SITC International Holdings	Hong Kong	14,053	3.2	6,130
DBS Group	Singapore	13,806	3.2	14,512
Alibaba	China	13,105	3.0	-
HDFC Bank	India	12,655	2.9	-
Ping An Insurance	China	10,691	2.4	-
Region RE	Australia	9,567	2.2	5,582
ASE Technology	Taiwan	9,395	2.1	-
Top ten investments		189,199	43.2
Samsung Fire & Marine Insurance	South Korea	8,898	2.0	-
Tata Consultancy Services	India	8,886	2.0	6,647
China Resources Mixc Lifestyle Services	China	8,453	1.9	-
MediaTek	Taiwan	8,188	1.9	10,097
SK Hynix	South Korea	7,939	1.8	1,575
Hang Lung Properties	Hong Kong	7,654	1.8	2,630
China Construction Bank	China	7,012	1.6	9,970
SCB X	Thailand	6,958	1.6	-
Sino-American Silicon Products	Taiwan	6,776	1.5	-
NetEase	Hong Kong	6,605	1.5	-
Top twenty investments		266,568	60.8
Capitaland India Trust	Singapore	6,509	1.5	6,077
BHP Group	Australia	6,463	1.5	10,580
Charter Hall Long Wale REIT	Australia	6,091	1.4	6,995
Yutong	China	5,970	1.4	-
Centurion Accommodation	Singapore	5,951	1.4	-
Rio Tinto C	Australia	5,847	1.3	7,250
Quanta Computer	Taiwan	5,711	1.3	-
China Merchants Bank 'H'	China	5,480	1.3	-
Fuyao Glass Industry 'A'	China	5,475	1.2	3,393
Infosys	India	5,414	1.2	5,884
Top thirty investments		325,479	74.3
Bank Mandiri	Indonesia	5,364	1.2	6,631
Amcor	Australia	5,037	1.1	-
Telekomunikasi Indonesia Persero	Indonesia	4,894	1.1	-
Metcash	Australia	4,749	1.1	-
Shinhan Financial	South Korea	4,636	1.1	-
PTT Exploration & Production (Alien)	Thailand	4,624	1.1	-
Accton Technology	Taiwan	4,551	1.0	8,593
Inner Mongolia Yili Industrial 'A'	China	4,385	1.0	4,398
Bank Rakyat	Indonesia	4,348	1.0	-
Australia & New Zealand Banking	Australia	4,344	1.0	-
Top forty investments		372,411	85.0
Power Grid Corporation	India	4,204	1.0	14,688
Mirvac Group	Australia	4,195	1.0	12,012
Shenzhou International	Hong Kong	4,104	0.9	-
Midea Group 'A'	China	4,103	0.9	7,140
DB Insurance	South Korea	4,017	0.9	-
Commonwealth Bank of Australia	Australia	3,787	0.9	8,120
Midea Group 'H'	China	3,738	0.8	1,794
China Resources Land	China	3,505	0.8	4,761
Medibank Private	Australia	3,214	0.7	-
Tisco Financial Group Foreign	Thailand	2,944	0.7	6,661
Top fifty investments		410,222	93.6
IndiGrid	India	2,782	0.6	-
Osotspa	Thailand	2,737	0.6	-
Taiwan Union Technology	Taiwan	2,630	0.6	4,165
PICC Property and Casualty 'H'	China	2,344	0.5	5,564
Centuria Industrial REIT	Australia	2,026	0.5	5,133
Bajaj Auto	India	1,926	0.5	-
Top fifty-six investments		424,667	96.9
Total value of investments		424,667	96.9
Net current assetsD		13,697	3.1
Total assets A		438,364	100.0
A     Net assets excluding borrowings.
B     Purchases and/or sales effected during the year may result in 2025 and 2024 values not being directly comparable.
C     Incorporated in and listing held in United Kingdom.
D     Excludes bank loans of £31,400,000

 

 

DIRECTORS' REPORT (EXTRACT)

 

Introduction

The Directors present their Report and the audited financial statements for the year ended 31 December 2025.

 

Results and Dividends

The financial statements for the year ended 31 December 2025 are contained below. The Company's dividend policy is to pay interim dividends on a quarterly basis and for the year to 31 December 2025 dividends were paid on 23 May, 22 August and 21 November 2025 and 20 February 2026.

 

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 1 January 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 2025, there were 142,515,862 fully paid Ordinary shares of no par value (2024 - 150,306,492) in issue. At the year end there were 52,417,527 Ordinary shares held in treasury (2024 - 44,626,897).

 

During the year 7,790,630 Ordinary shares were purchased in the market for treasury (2024 - 16,872,215) and no Ordinary shares were issued or sold from treasury.

 

There have been no share buy backs since the end of the year.

 

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 Company has renewed the facility on an evergreen basis. 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.

 

Management and Company Secretarial Arrangements

abrdn Asia Limited (a Singapore-based wholly-owned subsidiary of Aberdeen Group 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 Aberdeen Group 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 Aberdeen 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.

 

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 2025.

 

	No of Shares	%
Shareholder	Held	Held
Interactive Investor	22,026,398	15.5
Hargreaves Lansdown	17,116,751	12.0
Rathbones	10,489,614	7.4
City of London Investment Management	9,266,084	6.5
AJ Bell	6,935,832	4.9
Charles Stanley	5,894,852	4.1
Raymond James Investment Services	4,509,027	3.2

 

Since the year end, City of London Investment Management has notified the Company of a reduced holding of 6,925,439 Ordinary shares (4.9%). There have been no other changes notified to the Company since the year end.

 

Directors

The Board consists of five non-executive Directors, Robert Kirkby, Mark Florance, Ian Cadby, Nicky McCabe and Jane Routledge, each of whom held office throughout the year. Krystyna Nowak retired as a Director on 8 May 2025.

 

The AIC Corporate Governance Code recommends that all Directors should be subject to annual re-election by shareholders. Accordingly, all members of the Board, other than Ian Cadby, 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, Ian Cadby will retire from the Board at the AGM.

 

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.

 

Directors attended the following scheduled Board and Committee meetings during the year ended 31 December 2025 (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 B	1 (2)	-(1)	-(1)	-(1)
J Routledge	4 (4)	2 (2)	1 (1)	1 (1)

 

A Mr Cadby is not a member of the Audit Committee but attended both  meetings by invitation.

B Retired as a Director on 8 May 2025

 

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 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.

 

Policy on Tenure

In normal circumstances, it is the Board's expectation that Directors will not serve serve beyond the AGM 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 AGM 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 the reasons for the extension will be fully explained to shareholders and a timetable for the departure of the Chairman clearly set out.

 

Matters Reserved for the Board

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.

 

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 Aberdeen 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 Aberdeen Group's anti-bribery and corruption policies are available on its website.

 

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 five Directors at 31 December 2025, one is based in Singapore, two are based in Jersey and two are based in the UK.

 

Table for reporting on gender as at 31 December 2025
	Number of Board	Percentage of the	Number of senior positions on the Board
	members	Board	(note 1)
Men	3	60%	4
Women	2	40%	1
Not specified/prefer not to say	-	-	-
Table for reporting on ethnic background as at 31 December 2025
	Number of Board	Percentage of the	Number of senior positions on the Board
	members	Board	(note 1)
White British or other White (including minority-white groups)	5	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 will continue to take ethnic diversity into account for future appointments.

 

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 January 2024 (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 Corporate Governance Code as published in August 2024 (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 investment companies. The AIC Code is available on the AIC's website: theaic.co.uk. It includes an explanation of how the AIC Code adapts the principles and provisions set out in the UK Code to make them relevant for investment companies.

 

The Board considers that reporting against the principles and provisions of the AIC Code, which has been endorsed by the Financial Reporting Council ("FRC") and the Jersey Financial Services Commission ("JFSC"), provides more relevant information to shareholders.

 

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

 

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' and workforce remuneration (provisions 33 and 36 to 41).

 

These positions are not repeated in the AIC Code and the Board considers that they 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 provisions of the AIC Code can be found on its website.

 

The Board is conscious of the updated provisions in the UK Code (provision 29) and the AIC Code (provision 34), which are effective for accounting periods beginning on or after 1 January 2026. These provisions relate to the reporting on the Board's monitoring and review of the Company's internal control framework and a declaration by the Board of the effectiveness of the Company's material controls at the balance sheet date. The Board has established a process for identifying and monitoring the Company's material controls and it is the Board's intention that the Company will comply with these updated provisions during the current financial year and include the required disclosures in the Annual Report for the year ended 31 December 2026.

 

Going Concern

The Directors have undertaken a robust review of the Company's viability (refer to statement above) 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.

 

Since the year end, the Company has renewed its £50 million revolving credit facility on an evergreen basis with Bank of Nova Scotia, London Branch, its existing lender.

 

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

A resolution to re-appoint KPMG Audit Limited (previously 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 12 May 2026.

 

Internal Controls and Risk Management

The Board of Directors is ultimately responsible for the Company's system of internal control and for maintaining its effectiveness. Day-to-day measures have been delegated to the Investment Manager and Company Secretary with an effective process of reporting to the Board for supervision and control.

 

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 on internal controls.

 

The design, implementation and maintenance of controls and procedures to safeguard the assets of the Company and to manage its affairs properly extends to financial, operational and compliance controls and risk management. The Board has prepared its own risk register which identifies potential risks as summarised above. 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 Report for the year to 30 September 2025, none of which were judged to be of direct relevance to the Company;

-     the Board has considered the need for an internal audit function but, because of the compliance and internal control systems in place within the Aberdeen Group, has decided to place reliance on the Aberdeen 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 by it to external professional organisations.

 

Representatives from the Investment Manager's internal audit department report six monthly to the Audit Committee 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.

 

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 to shareholders 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 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 ("AGM")

The AGM will be held at 12 noon on 12 May 2026 at 18 Bishops Square, London E1 6EG.

 

 

Ian Cadby

Chairman

17 March 2026

 

28 Esplanade

St Helier

Jersey JE2 3QA

 

 

STATEMENT OF DIRECTORS' RESPONSIBILITIES

 

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 include 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

17 March 2026

 

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.

 

 

STATE MENT OF COMPREHENSIVE INCOME

 

		Year ended			Year ended
		31 December 2025			31 December 2024
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Investment income	4
Dividend income		25,722	-	25,722	21,918	-	21,918
Interest income		264	-	264	325	-	325
Stock lending income		3	-	3	43	-	43
Total revenue	3	25,989	-	25,989	22,286	-	22,286
Gains on investments held at fair value through profit or loss	11	-	54,231	54,231	-	20,372	20,372
Net currency gains/(losses)		-	122	122	-	(773)	(773)
		25,989	54,353	80,342	22,286	19,599	41,885
Expenses
Investment management fee	5	(1,015)	(1,324)	(2,339)	(1,053)	(1,315)	(2,368)
Other operating expenses	6	(1,124)	-	(1,124)	(1,049)	-	(1,049)
Profit before finance costs and tax		23,850	53,029	76,879	20,184	18,284	38,468
Finance costs	7	(665)	(998)	(1,663)	(780)	(1,170)	(1,950)
Profit before tax		23,185	52,031	75,216	19,404	17,114	36,518
Tax expense	2d, 8	(1,804)	552	(1,252)	(1,338)	(968)	(2,306)
Profit for the year		21,381	52,583	73,964	18,066	16,146	34,212
Earnings per Ordinary share (pence)	10	14.73	36.22	50.95	11.35	10.14	21.49
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 Aberdeen 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 Accounting Standards. 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 FINANCIAL POSITION

 

		As at	As at
		31 December 2025	31 December 2024
	Notes	£'000	£'000
Non-current assets
Investments held at fair value through profit or loss	11	424,667	406,041
Current assets
Cash and cash equivalents		8,531	9,349
Other receivables	12	13,212	1,421
		21,743	10,770
Current liabilities
Bank loans	13(a)	(31,400)	(32,422)
Other payables	13(b)	(8,046)	(4,788)
		(39,446)	(37,210)
Net current liabilities		(17,703)	(26,440)
Total assets less current liabilities		406,964	379,601
Non-current liabilities
Deferred tax liability on Indian capital gains	13(c)	-	(1,706)
		-	(1,706)
Net assets		406,964	377,895
Equity
Stated capital	15	194,933	194,933
Capital redemption reserve		1,560	1,560
Capital reserve	16	202,593	167,722
Revenue reserve		7,878	13,680
Equity shareholders' funds		406,964	377,895
Net asset value per Ordinary share (pence)	17	285.56	251.42

 

 

STATEMENT OF CHANGES IN EQUITY

 

For the year ended 31 December 2025
			Capital
		Stated	redemption	Capital	Revenue	Retained
		capital	reserve	reserve	reserve	earnings	Total
	Note	£'000	£'000	£'000	£'000	£'000	£'000
Opening balance		194,933	1,560	167,722	13,680	-	377,895
Buyback of Ordinary shares for treasury	15	-	-	(17,712)	-	-	(17,712)
Profit for the year		-	-	-	-	73,964	73,964
Transferred from retained earnings to capital reserve A		-	-	52,583	-	(52,583)	-
Transferred from retained earnings to revenue reserve		-	-	-	21,381	(21,381)	-
Dividends paid	9	-	-	-	(27,183)	-	(27,183)
Balance at 31 December 2025		194,933	1,560	202,593	7,878	-	406,964
For the year ended 31 December 2024
			Capital
		Stated	redemption	Capital	Revenue	Retained
		capital	reserve	reserve	reserve	earnings	Total
	Note	£'000	£'000	£'000	£'000	£'000	£'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
A Represents the capital profit/(loss) attributable to equity shareholders per the Statement of Comprehensive Income.
The stated capital in accordance with Companies (Jersey) Law 1991 Article 39A is £260,822,000 (2024 - £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 CASH FLOWS

 

		Year ended	Year ended
		31 December 2025	31 December 2024
	Notes	£'000	£'000
Cash flows from operating activities
Dividend income received		25,042	22,084
Investment management fee paid		(2,308)	(3,090)
Other cash expenses		(1,990)	(1,827)
Net cash generated from operating activities before interest paid and tax		20,744	17,167
Interest paid		(2,638)	(1,529)
Overseas taxation paid		(1,755)	(655)
Net cash inflows from operating activities		16,351	14,983
Cash flows from investing activities
Purchases of investments		(667,261)	(204,628)
Sales of investments		694,902	253,457
Indian capital gains tax on sales		23	-
Net cash inflow from investing activities		27,664	48,829
Cash flows from financing activities
Purchase of own shares for treasury	15	(17,712)	(35,973)
Dividends paid	9	(27,183)	(19,212)
Costs associated with loan		(60)	(65)
Net cash outflow from financing activities		(44,955)	(55,250)
Net (decrease)/increase in cash and cash equivalents		(940)	8,562
Cash and cash equivalents at the start of the year		9,349	1,560
Effect of foreign exchange on cash and cash equivalents		122	(773)
Cash and cash equivalents at the end of the year	2(f)	8,531	9,349

 

 

NOTES TO THE FINANCIAL STATEMENTS

 

FOR THE YEAR ENDED 31 DECEMBER 2025

 

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.	Material cccounting policies
	(a)	Basis of preparation. The financial statements have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards") and IFRIC Interpretations issued by the IFRS Interpretations Committee. 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 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 Accounting Standards 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. 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.
		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 2025.
		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.
		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 2025:
		Standards Issued and effective
		IAS 21 Amendments - Lack of Exchangeability (effective 1 January 2025)
		Future amendments to accounting standards and interpretations
		Standards Issued but  not yet effective
		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 7 and 9 Amendments - Contracts Referencing Nature-dependent Electricity (effective 1 January 2026)
		IFRS 18 - Presentation and Disclosure in Financial Statements (effective 1 January 2027)
		IAS 21 Amendments - Translation to a Hyperinflationary Presentation Currency (effective 1 January 2027)
		AIC SORP - 2025 Revision (effective 1 January 2026)
		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) 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 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.
	(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 2025 represents the sum of tax currently payable and deferred tax. Any tax payable is based on the taxable profit for the year. Taxable profit differs from net profit as reported in the Statement of Comprehensive Income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that were applicable at the Statement of Financial Position date.
		Deferred tax is recognised in respect of all temporary differences at the Statement of Financial Position date, where transactions or events that result in an obligation to pay more tax in the future or right to pay less tax in the future have occurred at the Statement of Financial Position date. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the 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.
		Owing to the Company's status as an investment trust company, and the intention to continue meeting the conditions required to obtain approval in the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments.
	(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 financial assets, 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. Consequently, all investments are measured at FVTPL.
		Regular way purchases and sales of investments are recognised on a trade date basis. On derecognition of investments, the difference between the carrying amount and the consideration received is recognised in profit or loss.
		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 "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. Other 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 paid. Interim dividends 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.
		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.
		Non-monetary assets and liabilities that are measure at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value is determined. The foreign currency differences on the equity investments are recognised in the Gains on investments held at fair value through profit or loss.
	(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.

 

3.	Segmental information
	The Company is organised into one main operating segment, which invests in equity securities. 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	Year ended
		31 December 2025	31 December 2024
		£'000	£'000
	Asia Pacific region	24,911	21,395
	United Kingdom	1,078	891
		25,989	22,286

 

4.	Investment income
		Year ended	Year ended
		31 December 2025	31 December 2024
		£'000	£'000
	Income from investments
	Overseas dividend income	24,908	21,184
	UK dividend income	814	734
		25,722	21,918
	Other income
	Bond interest	-	168
	Deposit interest	264	157
	Stock lending income	3	43
		267	368
	Total revenue	25,989	22,286

 

5.	Investment management fee
		Year ended			Year ended
		31 December 2025			31 December 2024
		Revenue	Capital	Total	Revenue	Capital	Total
		£'000	£'000	£'000	£'000	£'000	£'000
	Investment management fee	1,015	1,324	2,339	1,053	1,315	2,368
	The fee structure is 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 (2024: £130,000) is rebated to the Company by abrdn Asia for the provision of marketing services. An additional amount of £133,000 (2024: £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 £402,000 (2024 - £372,000).

 

6.	Other operating expenses
		Year ended	Year ended
		31 December 2025	31 December 2024
		£'000	£'000
	Directors' fees	215	215
	Promotional activities A	324	286
	Auditor's remuneration:
	- statutory audit	65	60
	Custody fees	147	163
	Printing & postage	19	23
	Professional fees	85	132
	Registrars fees	102	60
	Other	167	110
		1,124	1,049
	A Promotional activities are provided by abrdn Investments Limited. The total fees paid are based on an annual rate for Marketing of £194,000 (2024 - £193,000) and an annual Marketing and PR fee of £130,000 (2024 - £130,000). An amount of £102,000 (2024 - £38,000) 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.

 

7.	Finance costs
		Year ended			Year ended
		31 December 2025			31 December 2024
		Revenue	Capital	Total	Revenue	Capital	Total
		£'000	£'000	£'000	£'000	£'000	£'000
	Interest on bank loans	665	998	1,663	779	1,168	1,947
	Amortisation of loan arrangement expenses	-	-	-	1	2	3
		665	998	1,663	780	1,170	1,950
	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		2025					2024
				Revenue	Capital		Total		Revenue			Capital		Total
				£000	£000		£000		£000			£000		£000
		Indian capital gains tax		-	1,177		1,177		-			876		876
		Overseas withholding tax		1,804	-		1,804		1,338			-		1,338
		Total current tax charge for the year (note b)		1,804	1,177		2,981		1,338			876		2,214
		Movement of deferred tax liability on Indian CGT		-	(1,729)		(1,729)		-			92		92
		Total deferred tax charge for the year (note c)		-	(1,729)		(1,729)		-			92		92
		Total tax charge for the year		1,804	(552)		1,252		1,338			968		2,306
	b)	The UK corporation tax rate is 25%  (2024 - 25%). The tax charge for the year differs from the corporation tax rate.
			2025							2024
			Revenue			Capital		Total		Revenue	Capital		Total
			£000			£000		£000		£000	£000		£000
		Net profit before taxation	23,185			52,031		75,216		19,404	17,114		36,518
		Corporation tax @ 25.0% (2024 - 25.0%)	5,796			13,008		18,804		4,851	4,279		9,130
		Effects of:
		UK dividends	(204)			-		(204)		(184)	-		(184)
		Non-taxable overseas dividends	(5,666)			-		(5,666)		(4,628)	-		(4,628)
		Currency gains/(losses)	-			(31)		(31)		-	193		193
		Realised/unrealised gains/(losses) on investments	-			(13,557)		(13,557)		-	(5,093)		(5,093)
		Expenses not deductible for tax purposes	5			-		5		-	-		-
		Excess management expenses	103			580		683		5	621		626
		Tax effect of expensed double taxation relief	(34)			-		(34)		(44)	-		(44)
		Irrecoverable overseas withholding tax	1,804			-		1,804		1,338	-		1,338
		Indian capital gains tax	-			1,177		1,177		-	876		876
		Movement of deferred tax liability on Indian CGT	-			(1,729)		(1,729)		-	92		92
		Total current tax charge for the year (note a)	1,804			(552)		1,252		1,338	968		2,306
	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 £2,586,000 (2024 - £1,903,000) 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.

 

9.	Dividends on Ordinary shares
		Year ended	Year ended
		31 December 2025	31 December 2024
		£'000	£'000
	Amounts recognised as distributions to equity holders in the year:
	Fourth interim dividend 2024 - 6.78p per Ordinary share (2023 - 4.25p)	10,148	7,100
	First interim dividend 2025 - 3.65p per Ordinary share (2024 - 2.55p)	5,314	4,155
	Second interim dividend 2025 - 3.84p per Ordinary share (2024 - 2.55p)	5,549	4,043
	Third interim dividend 2025 - 4.29p per Ordinary share (2024 - 2.55p)	6,172	3,914
		27,183	19,212
	In order for the Company to satisfy s.1158 of the Corporation Tax Act 2010, the Company must meet the eligibility and approval conditions applicable to investment trusts, which include compliance with HMRC's income retention requirements.
	Under regulation 19 of The Investment Trust (Approved Company) (Tax) Regulations 2011, the maximum permitted retention is the greater of:
	-   15% of the Company's income, calculated under regulation 20; and
	-   Any amount the Company is required to retain due to restrictions imposed by law.
	The revenue available for distribution by way of dividend for the year is £21,381,000 (2024 - £18,066,000). Set out below is the total dividends payable in respect of the financial year.
	Accordingly, the Company confirms that its income retention practices for the period are fully compliant with Section 1158 CTA 2010 and the associated HMRC regulations applicable to investment trusts
		2025	2024
		£'000	£'000
	First interim dividend 2025 - 3.65p per Ordinary share (2024 - 2.55p)	5,314	4,155
	Second interim dividend 2025 - 3.84p per Ordinary share (2024 - 2.55p)	5,549	4,043
	Third interim dividend 2025 - 4.29p per Ordinary share (2024 - 2.55p)	6,172	3,914
	Fourth interim dividend 2025 - 4.46p per Ordinary share (2024 - 6.78p)	6,356	10,148
		23,391	22,260
	The fourth interim dividend for 2025, amounting to £6,356,000 (2024 - fourth interim dividend of £10,148,000), is not recognised as a liability in these financial statements as it was announced and paid after 31 December 2025.

 

10.	Earnings per share
	Ordinary shares. The earnings per Ordinary share is based on the profit after taxation of £73,964,000 (2024 - £34,212,000) and on 145,160,512 (2024 - 159,233,450) 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			Year ended
		31 December 2025			31 December 2024
		Revenue	Capital	Total	Revenue	Capital	Total
	Net profit (£'000)	21,381	52,583	73,964	18,066	16,146	34,212
	Weighted average number of Ordinary shares in issue{A}			145,160,512			159,233,450
	Earnings per Ordinary share (pence)	14.73	36.22	50.95	11.35	10.14	21.49
	{A} Calculated excluding Ordinary shares held in treasury.

 

11.	Investments held at fair value through profit or loss
		Year ended	Year ended
		31 December 2025	31 December 2024
		£'000	£'000
	Opening book cost	316,394	339,747
	Opening investment holding gains	89,647	89,889
	Opening fair value	406,041	429,636
	Analysis of transactions made during the year
	Purchases at cost	670,435	208,734
	Sales proceeds received	(706,040)	(252,701)
	Realised gains on investments	85,467	40,418
	Realised losses on investments	(28,600)	(19,804)
	Decrease in unrealised gains on investments	(22,218)	(5,077)
	Decrease in unrealised losses on investments	19,582	4,835
	Closing fair value	424,667	406,041
		£'000	£'000
	Closing book cost	337,656	316,394
	Closing investment gains	87,011	89,647
	Closing fair value	424,667	406,041
	The Company generated £706,040,000 (2024 - £252,701,000) from investments sold in the year. The book cost of these investments when they were purchased was £622,638,000 (2024 - £232,087,000). 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.
		Year ended	Year ended
		31 December 2025	31 December 2024
	The portfolio valuation	£'000	£'000
	Listed on recognised stock exchanges:
	Equities - overseas	424,667	406,041
	Total	424,667	406,041
	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	Year ended
		31 December 2025	31 December 2024
		£'000	£'000
	Purchases	533	166
	Sales	677	301
		1,210	467
	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.	Other receivables
		2025	2024
		£'000	£'000
	Amounts due from brokers	11,138	-
	Prepayments and accrued income	2,074	1,421
		13,212	1,421
	None of the above assets are past their due date or impaired.

 

13.	Current and non-current liabilities
	(a)	Bank loans. At the year end, the Company had the following unsecured bank loans:
			2025				2024
				Local				Local
			Interest	currency	Carrying		Interest	currency		Carrying
			rate	principal	amount		rate	principal		amount
			%	amount	£'000		%	amount		£'000
		Unsecured bank loans repayable
		Hong Kong Dollar	4.150	73,500,000	7,020		5.359	73,500,000		7,555
		United States Dollar	4.960	8,850,000	6,580		5.580	8,850,000		7,067
		Sterling	4.920	17,800,000	17,800		5.700	17,800,000		17,800
		Total			31,400					32,422
		At the year end approximately  £17.8 million, USD 8.85 million and HKD 73.5 million, equivalent to  £31.4 million was drawn down from the £50 million multi-currency revolving facility with Bank of Nova Scotia, London Branch. The interest rates attributed to the GBP, USD and HKD loans at the period end were 4.92%, 4.96% and 4.15% respectively.
		On 27 February 2025, the Company renewed its secured, one year £50 million multi-currency revolving credit facility with Bank of Nova Scotia, London Branch. 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
		At the date of signing this report, loans of HKD 73,500,000, US$ 8,850,000 and £17,800,000 were drawn down at variable interest rates of 3.51%, 4.62% and 4.68% respectively.
						2025			2024
	(b)	Other payables				£'000			£'000
		Investment management fees				402			371
		Amounts due to brokers				7,301			4,217
		Other amounts due				343			200
						8,046			4,788
		Amounts falling due in more than one year:
						2025			2024
						£'000			£'000
	(c)	Deferred tax liability on Indian capital gains				-			1,706

 

14.	Analysis of changes in financing during the year
		2025	2024
		£'000	£'000
	Opening balance at 1 January	32,422	32,123
	Amortisation of loan arrangement expenses	-	3
	Foreign exchange movements	(1,022)	296
	Closing balance at 31 December	31,400	32,422

 

15.	Stated capital
		Ordinary	Treasury	Total
		shares	shares	shares
		(number)	(number)	(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 2024	150,306,492	44,626,897	194,933,389	194,933
	Shares purchased for treasury	(7,790,630)	7,790,630	-	-
	At 31 December 2025	142,515,862	52,417,527	194,933,389	194,933
	During the year 7,790,630 (2024 - 16,872,215) Ordinary shares were bought back by the Company for holding in treasury at a total cost of £17,712,000 (2024 - £35,973,000). At the year end 52,417,527 (2024 - 44,626,897) Ordinary shares were held in treasury, which represents  26.89% (2024 - 22.89%) of the Company's total issued share capital at 31 December 2025. Since the year end, no further Ordinary shares have been bought back.
	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.
	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.

 

16.	Capital reserve
		2025	2024
		£'000	£'000
	At 1 January	167,722	187,549
	Net currency gains/(losses){A}	122	(773)
	Movement in unrealised fair value	(2,636)	(242)
	Profit on realisation of investments	56,867	20,614
	Costs charged to capital	(1,770)	(3,453)
	Buyback of Ordinary shares for treasury	(17,712)	(35,973)
	At 31 December	202,593	167,722
	{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	Net asset values	Net asset value	Net asset values
		per share	attributable	per share	attributable
		2025	2025	2024	2024
		p	£'000	p	£'000
	Ordinary shares	285.56	406,964	251.42	377,895
	The net asset value per Ordinary share is based on 142,515,862 (2024 - 150,306,492) 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 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.
	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 Aberdeen Group plc (the "Group"), which provides a variety of services and support 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 Aberdeen Group 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.
	(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 no (2024 - one) holdings in fixed rate overseas corporate bonds, with G3 Exploration not held at year end (2024 - £nil). 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. This holding was liquidated on 12 June 2025.
	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 5th January 2026 for GBP loan and USD loans and 26th February 2026 for HKD loan.
	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 as these are non-interest bearing instruments but including short term borrowings) was as follows:
		Weighted average
		period for which	Weighted average	Floating	Fixed
		rate is fixed	interest rate	rate	rate
	At 31 December 2025	Years	%	£'000	£'000
	Assets
	Cash at bank - Sterling	-	-	8,340	-
	Cash at bank - Hong Kong Dollar	-	-	202	-
	Cash at bank - Korean Won	-	-	3	-
	Cash at bank - US Dollar	-	-	(14)	-
				8,531	-
		Weighted average
		period for which	Weighted average	Floating	Fixed
		rate is fixed	interest rate	rate	rate
	At 31 December 2025	Years	%	£'000	£'000
	Liabilities
	Bank loan - Hong Kong Dollar	0.09	4.15	-	(7,020)
	Bank loan - US Dollar	0.08	4.96	-	(6,580)
	Bank loan - Sterling	0.08	4.92	-	(17,800)
				-	(31,400)
		Weighted average
		period for which	Weighted average	Floating	Fixed
		rate is fixed	interest rate	rate	rate
	At 31 December 2024	Years	%	£'000	£'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	-
		Weighted average
		period for which	Weighted average	Floating	Fixed
		rate is fixed	interest rate	rate	rate
	At 31 December 2024	Years	%	£'000	£'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)
	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 Statement of Financial Position date; and
	-     changes in fair value of investments for the year, based on revaluing fixed rate financial assets at the Statement of Financial Position 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 (2024 - 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.
	Foreign currency risk. A significant proportion of the Company's investment portfolio is invested in overseas securities and the Statement of Financial Position 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 31 December 2025.
	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 2025			31 December 2024
			Net			Net
			monetary	Total		monetary	Total
		Equity	assets	currency	Equity	assets	currency
		investments	/(liabilities)	exposure	investments	/(liabilities)	exposure
		£'000	£'000	£'000	£'000	£'000	£'000
	Australian Dollar	49,472	-	49,472	68,047	-	68,047
	Chinese Renminbi	19,933	-	19,933	14,931	3	14,934
	Hong Kong Dollar	113,081	(6,818)	106,263	63,072	(7,555)	55,517
	Indian Rupee	23,213	-	23,213	27,219	-	27,219
	Indonesian Rupiah	14,606	-	14,606	9,914	-	9,914
	Japanese Yen	-	-	-	4,013	-	4,013
	New Zealand Dollar	-	-	-	4,241	-	4,241
	Singapore Dollar	26,266	-	26,266	66,713	-	66,713
	South Korean Won	54,243	3	54,246	14,226	-	14,226
	Taiwanese Dollar	88,089	-	88,089	108,248	670	108,918
	Thailand Baht	17,263	-	17,263	14,774	-	14,774
	US Dollar	12,655	(6,594)	6,061	3,393	(7,065)	(3,672)
	Total	418,821	(13,409)	405,412	398,791	(13,947)	384,844
	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.

 

		2025	2024
		£'000	£'000
	Australian Dollar	4,947	6,805
	Chinese Renminbi	1,993	1,493
	Hong Kong Dollar	10,626	5,552
	Indian Rupee	2,321	2,722
	Indonesian Rupiah	1,461	991
	Japanese Yen	-	401
	New Zealand Dollar	-	424
	Singapore Dollar	2,627	6,671
	Korean Won	5,425	1,423
	Taiwanese Dollar	8,809	10,892
	Thailand Baht	1,726	1,477
	US Dollar	606	(367)
	Total	40,541	38,484
	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 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. 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.
	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% (2024 - 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 Statement of Financial Position date, with all other variables held constant.

 

			2025						2024
			Increase in			Decrease in			Increase in		Decrease in
			fair value			fair value			fair value		fair value
			£'000			£'000			£'000		£'000
	Statement of Comprehensive Income - profit after taxation
	Capital return - increase /(decrease)		42,467			(42,467)			40,604		(40,604)
	Total profit after taxation - increase /(decrease)		42,467			(42,467)			40,604		(40,604)
	Equity
	Capital reserve		42,467			(42,467)			40,604		(40,604)
	(ii) Liquidity risk. This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities, which stood at £39,446,000 (2024 - £38,916,000).
	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 £8,531,000 and £424,667,000 (2024 - £9,349,000 and £406,041,000) 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 financial liabilities and cash at the Statement of Financial Position date:
					Within			Between
					1 year			1-5 years		Total
	At 31 December 2025				£'000			£'000		£'000
	Bank loans				31,400			-		31,400
	Interest on bank loans				183			-		183
	Other payables				8,046			-		8,046
					39,629			-		39,629
	Cash				8,531			-		8,531
					Within			Between
					1 year			1-5 years		Total
	At 31 December 2024				£'000			£'000		£'000
	Bank loans				32,422			-		32,422
	Interest on bank loans				164			-		164
	Other payables				4,788			-		4,788
					37,374			-		37,374
	Cash				9,349			-		9,349
	Details of the Company's borrowing arrangements are disclosed in note 13.
	(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's financial assets subject to the expected credit loss model within IFRS 9 are cash and cash equivalents and short-term other receivables. At 31 December 2025, the total of short-term other receivables was £13,212,000 (2024 - £1,421,000). 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.
	The Company uses the same approach for assessment of ECLs for cash and cash equivalents to those used for other receivables. The impairment has been measured on a twelve months expected loss basis and reflects the short maturities of the exposures. The Company considers that its cash and cash equivalents have low credit risk.
	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 was acrued since the joint liquidator was appointed. This holding was liquidated on 12 June 2025.
	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.
	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 Statement of Financial Position, the maximum exposure to credit risk at 31 December was as follows:
		2025					2024
		Statement of		Maximum			Statement of				Maximum
		Financial Position		exposure			Financial Position				exposure
		£'000		£'000			£'000				£'000
	Current assets
	Cash at bank	8,531		8,531			9,349				9,349
	Other receivables	13,176		13,176			1,421				1,421
		21,707		21,707			10,770				10,770
	(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) financial liabilities are classified under IFRS 9. The Company has not designated any financial liabilities at FVPL. 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.

 

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:
		2025	2024
		£'000	£'000
	Debt
	Borrowings under the multi-currency loan facility	31,400	32,422
		31,400	32,422
		2025	2024
	Equity	£'000	£'000
	Equity share capital	194,933	194,933
	Retained earnings and other reserves	212,031	182,962
		406,964	377,895
	Debt as a % of net assets A	7.72	8.58
	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.

 

20.	Related party transactions and transactions with the Investment Manager
	Fees payable during the period to the Directors are disclosed in note 6 and within the Directors' Remuneration Report (unaudited), along with their interests in shares of the Company, totalling 71,972 (2024 - 87,128) ordinary shares.
	Investment management, promotional activities and administration services are provided by the Aberdeen Group plc 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 £133,000 (2024: £129,000) per annum, which Aberdeen Group plc 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 subjectivity of the inputs used in making measurements. The fair value hierarchy has the following levels:
	Level 1: quoted (unadjusted) market prices in active markets for identical assets or liabilities;
	Level 2: valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and
	Level 3: valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
	The financial assets and liabilities measured at fair value in the Statement of Financial Position are grouped into the fair value hierarchy at the Statement of Financial Position date are as follows:
			Level 1	Level 2	Level 3	Total
	At 31 December 2025	Note	£'000	£'000	£'000	£'000
	Financial assets at fair value through profit or loss
	Quoted equities	a)	424,667	-	-	424,667
			424,667	-	-	424,667
			Level 1	Level 2	Level 3	Total
	At 31 December 2024	Note	£'000	£'000	£'000	£'000
	Financial assets at fair value through profit or loss
	Quoted equities	a)	406,041	-	-	406,041
	Quoted bonds	b)	-	-	-	-
			406,041	-	-	406,041
	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 2025.
	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. The Company liquidated this holding on 12 June 2025.

 

23.	Subsequent events
	On 27 February 2026, the Company announced that it had renewed its secured £50 million multi-currency revolving credit facility ("revolving credit facility") with Bank of Nova Scotia, London Branch (the "Lender") on an evergreen basis.
	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 identification by the Investment Manager of suitable investment opportunities and the Lender's credit approval.

 

ALTERNATIVE PERFORMANCE MEASURES  (Unaudited)

 

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.
		2025	2024
NAV per Ordinary share (p)	a	285.56	251.42
Share price (p)	b	264.00	220.00
Discount	(b-a)/a	7.6%	12.5%
Dividend cover
Dividend cover measures the revenue return per share divided by total dividends per share, expressed as a ratio.
		2025	2024
Revenue return per share	a	14.73p	11.35p
Dividends per share	b	16.24p	14.43p
Dividend cover	a/b	0.91	0.79
Dividend yield
The annual dividend per Ordinary share divided by the share price, expressed as a percentage.
		2025	2024
Annual dividend per Ordinary share (p)	a	16.24p	14.43p
Share price (p)	b	264.00p	220.00p
Dividend yield	(b-a)/a	6.2%	6.6%
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.
		2025	2024
Borrowings (£'000)	a	31,400	32,422
Cash (£'000)	b	8,531	9,349
Amounts due to brokers (£'000)	c	7,301	4,127
Amounts due from brokers (£'000)	d	11,138	-
Shareholders' funds (£'000)	e	406,964	377,895
Net gearing	(a-b+c-d)/e	4.7%	7.2%
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.
		2025	2024
Investment management fees (£'000)		2,339	2,368
Administrative expenses (£'000)		1,124	1,049
Less: non-recurring charges A (£'000)		(54)	(134)
Ongoing charges (£'000)		3,409	3,283
Average net assets (£'000)		372,177	384,548
Ongoing charges ratio		0.92%	0.85%
A Professional services comprising advisory and legal fees considered unlikely to recur.
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.
			Share
Year ended 31 December 2025		NAV	Price
Opening at 1 January 2025	a	251.42p	220.00p
Closing at 31 December 2025	b	285.56p	264.00p
Price movements	c=(b/a)-1	13.6%	20.0%
Dividend reinvestment A	d	8.6%	10.0%
Total return	c+d	22.2%	30.0%
			Share
Year ended 31 December 2024		NAV	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%
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.

 

Additional Notes:

The Annual Financial Report Announcement is not the Company's statutory financial statements. The above results for the year ended 31 December 2025 are an abridged version of the Company's full financial statements, which have been approved and audited with an unqualified report. The 2024 and 2025 statutory financial statements received unqualified reports from the Company's Auditor and did not include any reference to matters to which the Auditor drew attention by way of emphasis without qualifying the reports.  The financial information for 2024 is derived from the statutory financial statements for 2025 which have been lodged with the JFSC. The 2025 financial statements will be filed with the JFSC in due course.

 

The Annual Report will be posted to Shareholders and further copies may be obtained from the registered office, 28 Esplanade, St Helier, Jersey JE2 3QA and on the Company's website* asian-income.co.uk.

 

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.

 

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

 

JTC Fund Solutions (Jersey) Limited

Company Secretary

17 March 2026