aberdeenequityincome.com
Aberdeen Equity
Income Trust plc
Annual Report 30 September 2025
Equity income using an index-agnostic approach focusing
on our best ideas from the full UK market cap spectrum.
Aberdeen Equity Income Trust plc is an “AIC Dividend Hero” –
it has increased its dividend for 25 years in a row.
Aberdeen Equity Income Trust plc 1
“The Portfolio Manager’s ability to navigate
these conditions, balancing income generation
with capital growth, has been key to delivering
strong results.”
Sarika Patel, Chair
“Our strong performance relative to the reference
index can be attributed to both positive sector
allocation and successful stock selection.”
Thomas Moore,
Senior Investment Director, UK Equities
Scan the QR Code above to register for
email alerts relating to the Company.
2 Aberdeen Equity Income Trust plc
THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE
ATTENTION. If you are in any doubt about the action you should
take, you are recommended to seek your own independent
financial advice from your stockbroker, bank manager, solicitor,
accountant or other financial adviser authorised under the
Financial Services and Markets Act 2000 if you are in the United
Kingdom or, if not, from another appropriately authorised
financial adviser.
If you have sold or otherwise transferred all your Ordinary shares
in Aberdeen Equity Income Trust plc, please forward this
document, together with the accompanying documents
immediately to the purchaser or transferee, or to the stockbroker,
bank or agent through whom the sale or transfer was effected for
transmission to the purchaser or transferee.
To find out more about Aberdeen Equity Income Trust plc, please
visit aberdeenequityincome.com
Overview
Performance Highlights 3
Financial Calendar 4
Strategic Report
Chair’s Statement 6
Portfolio Manager’s Review 9
Overview of Strategy 15
Promoting the Success of the Company 26
Results 30
Portfolio
Ten Largest Investments 34
Investment Portfolio 35
Sector Distribution 37
Investment Case Studies 38
Governance
Board of Directors 42
Directors’ Report 45
Directors’ Remuneration Report 54
Audit and Risk Committee’s Report 59
Financial Statements
Statement of Directors’ Responsibilities 64
Independent Auditor’s Report to the Members of
Aberdeen Equity Income Trust plc 65
Statement of Comprehensive Income 73
Statement of Financial Position 74
Statement of Changes in Equity 75
Notes to the Financial Statements 76
Alternative Performance Measures 91
Corporate Information
Information about the Investment Manager 95
Investor Information 96
Glossary of Terms 99
AIFMD Disclosures (Unaudited) 102
General
Notice of Annual General Meeting 104
Contact Addresses 109
Contents
Aberdeen Equity Income Trust plc 3
Net asset value total return per
Ordinary share
A
Share price total return per
Ordinary share
A
Year ended 30 September 2025 Year ended 30 September 2025
+21.8% +25.7%
Year ended 30 September 2024 +13.3% Year ended 30 September 2024 +10.4%
Revenue return per Ordinary share Premium/(discount) to net asset value
A
Year ended 30 September 2025 As at 30 September 2025
23.43
p
0.0%
Year ended 30 September 2024 23.05p As at 30 September 2024 (3.0)%
Dividend per Ordinary share Ongoing charges ratio
A
Year ended 30 September 2025 Year ended 30 September 2025
23.00
p
0.84%
Year ended 30 September 2024 22.90p Year ended 30 September 2024 0.86%
A
Considered to be an Alternative Performance Measure. Further details can be found on pages 91 to 93.
Net asset value per
Ordinary share
Dividends per share Share price
At 30 September– pence For the year to 30 September - pence At 30 September– pence
380.8
331.8
314.6
331.5
377.8
21 22 23 24 25
21.20
22.70
22.80
22.90
23.00
21 22 23 24 25
349.0
302.5
314.0
321.5
378.0
21 22 23 24 25
Performance Hi
g
hli
g
hts
4 Aberdeen Equity Income Trust plc
Pre-Annual General Meeting (“AGM “) Online Investor Event
27 January 2026
Annual General Meeting (London)
17 February 2026
Expected payment dates of interim dividends for year
ending 30 September 2026
March 2026
June 2026
September 2026
January 2027
Half year end
31 March 2026
Expected announcement of results for the
six months ending 31 March 2026
May 2026
Financial year end
30 September 2026
Expected announcement of results for
year ending 30 September 2026
December 2026
Financial Calendar
Aberdeen Equity Income Trust plc 5
Strategic
Report
The Company’s objective is to provide
shareholders with an above average income
from their equity investment, while also providing
real growth in capital and income.
The Company offers an actively managed
portfolio of UK listed companies. The investment
approach is index-agnostic, and the aim is to
Focus on Change by evaluating changing
corporate situations and identifying insights that
are not fully recognised by the market.
6 Aberdeen Equity Income Trust plc
It is with great pleasure that I can report your Company
has delivered a year of strong performance. The share
price total return was 25.7%, and the net asset value
(NAV) total return was 21.8%, both significantly ahead
of the FTSE All-Share Index return of 16.2%. These
results reflect the strength of the portfolio management
approach and the benefits of our flexible
investment mandate.
Despite a backdrop of geopolitical uncertainty and fiscal
challenges, equity markets performed strongly. The
Portfolio Manager’s ability to navigate these conditions,
balancing income generation with capital growth has
been key to delivering strong results. The Board is
particularly pleased with the Portfolio Manager’s
disciplined “Focus on Change” investment philosophy,
which has delivered positive outcomes across a range of
holdings. Further detail on market conditions and portfolio
performance can be found in the Manager’s Review.
Earnings and Dividends
Net revenue earnings rose by 2.1% to £11.24 million,
supporting a 1.6% increase in earnings per share to
23.43 pence.
The Board is pleased to report another increase in the
annual dividend, marking the 25
th
consecutive year of
growth, by declaring a fourth interim dividend of 5.9 pence
per share, taking the total dividend for the year to 23.0
pence per share. The dividend yield of the Company has
averaged 6.8% over the year but it has reduced to around
6.1% at the year-end as a consequence of the share price
performance. The yield remains among the highest in the
AIC UK Equity Income sector.
We remain committed to sustaining and growing our
dividend track record. In the absence of adverse
circumstances, we expect to pay a dividend of at least
23.1 pence per share in the coming financial year.
While we encourage the Manager to fund dividends from
portfolio earnings, we retain revenue reserves of 15.68
pence per share and distributable capital reserves of
171.25 pence per share to support this objective if needed.
Performance
The Company delivered a strong set of results this year,
underpinned by the Portfolio Manager’s disciplined
approach to stock selection and strategic positioning. His
focus on identifying undervalued opportunities and
anticipating market shifts has generated robust returns
across a diverse range of holdings. Further details on the
key drivers of performance can be found in the Manager’s
Review, along with a summary of the Company’s progress
against its Key Performance Indicators on page 18.
Premium and Share Issuance
For much of the year, the Company’s shares traded at a
premium to NAV, reflecting strong investor demand and
confidence in our strategy. This is much better than the
unweighted average of the trusts in the sector, where the
average discount for the sector has been between 4%
and 6% over the last six months.
Aberdeen Equity Income Trust and unweighted sector
average discounts/premiums from 30 September 2024 to
30 September 2025
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
Sep
24
Oct
24
Nov
24
Dec
24
Jan
25
Feb
25
Mar
25
Apr
25
May
25
Jun
25
Jul
25
Aug
25
Sep
25
(Discount) / Premium (%)
Aberdeen Equity Income discount
Unweighted sector average discount
Source: LSEG Datastream
As a result of the shares trading at a premium we were
able to issue 1,005,000 shares from Treasury, enhancing
NAV per share and raising over £3.6 million. The Board
continues to monitor the premium/discount level closely
and will act in shareholders’ best interests as needed.
Chair’s Statement
Aberdeen Equity Income Trust plc 7
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Borrowing facility
At the year end, the Company had drawn down £22.5
million of its £30 million Revolving Credit Facility,
unchanged from the prior year. The Facility remains in
place until June 2026. The Board’s intention is to negotiate
a new facility ahead of this date.
We continue to carefully weigh the cost of borrowing,
which has risen significantly in recent years, against the
potential benefits of using gearing to enhance portfolio
returns. Despite the higher interest rate environment, the
Board remains confident in the long-term advantages of
gearing. As a structural feature of our closed-end model, it
supports a long-term investment approach and
potentially boosts shareholder returns.
Board Changes
Caroline Hitch will retire from the Board at the AGM in
February 2026 after nine years of dedicated service. On
behalf of the Board, I extend our sincere thanks for her
wise counsel and contribution to Board deliberations over
the years and wish her well for the future.
Following a comprehensive recruitment process, we are
delighted to welcome Alice Ryder, who joined the Board
on 1 October 2025. Alice’s biographical details are
contained on page 43, and she will stand for election at
the AGM. Alice brings extensive experience in investment
management and investment trusts. We look forward to
working with her.
Awards
During the year we were delighted that the Company was
named “Best Overall Investment Trust for Income” while
Aberdeen received the accolade of “Best Overall
Investment Trust Group” at the Online Money Awards
2025. These awards celebrate the standout platforms,
services and individuals shaping the future of trading,
investing, and wealth management.
With over 200 nominated businesses across 23 different
categories, these wins are especially meaningful as they
were voted for by private investors and traders, with more
than 9,000 votes cast. We are sincerely grateful to
everyone who supported us.
Online Investor Presentation
In order to encourage as much interaction as possible with
our shareholders, we will be hosting an Online Shareholder
Presentation, which will be held at 11: 00 am on Tuesday,
27 January 2026. At this event there will be a presentation
from the Portfolio Manager followed by an opportunity to
ask live questions to the Portfolio Manager and me. The
online presentation is being held ahead of the AGM to
allow shareholders sufficient time to submit their proxy
votes after the presentation but prior to the AGM should
they so wish. Full details on how to register for the online
event can be found on the Company’s website at
Aberdeenequityincome.com.
Annual General Meeting
This year’s Annual General Meeting (“AGM”) will be held at
Aberdeen’s office, 18 Bishops Square, London, E1 6EG on
Tuesday, 17 February 2026 at 11:30 am. The meeting will
include a presentation by the Portfolio Manager and will
be followed by lunch. This is a good opportunity for
shareholders to meet the Board and the Manager, and the
Board warmly encourages attendance. The Notice of the
Meeting is contained on pages 104 to 108.
Outlook
The UK equity market has defied expectations, with
investors increasingly focused on the underlying strengths
of UK corporates, rather than the uncertainties of global
geopolitics or domestic fiscal pressures. The Portfolio
Manager has positioned the portfolio to navigate these
shifting conditions effectively, demonstrating resilience
during a period of significant market change.
The geopolitical backdrop remains complex. The war in
Ukraine continues, US trade policy remains unpredictable,
and global bond markets are under growing pressure
from elevated government borrowing. In the UK, this
became evident ahead of the late-November Budget,
when investors focused less on the political noise around
pre-budget leaks and more on the underlying fiscal
substance, namely the scale of prospective tax measures
and spending commitments. It underscored that the key
point of vulnerability in the current environment is the
strength and sustainability of Government finances, rather
than the household of corporate sectors which have
reduced overall debt levels.
8 Aberdeen Equity Income Trust plc
Looking ahead, we continue to see value in UK equities.
The Portfolio Manager’s flexible, valuation-led approach,
focused on identifying opportunities and positioning for
change, gives us confidence in the potential for further
upside. Fiscal uncertainty may present attractive entry
points among well-managed companies that are
temporarily mispriced. The Manager’s Review provides a
detailed outlook and insight into how the portfolio is
navigating change in a turbulent environment.
The portfolio maintains a balanced allocation to
internationally focused large-cap companies and
domestically oriented mid and small-cap businesses. This
diversified positioning supports our confidence in
generating further positive outcomes for shareholders in
the year ahead.
While we recognise the concerns surrounding a potential
AI-related market bubble, we remain confident that our
Portfolio Manager’s disciplined bottom-up approach is
well positioned to navigate these dynamics. The Board
remains fully supportive of this strategy with an aim of
delivering strong returns alongside continued dividend
growth.
On behalf of the Board, I thank shareholders for their
continued support.
Sarika Patel
Chair
8 December 2025
Chair’s Statement
Continued
Aberdeen Equity Income Trust plc 9
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Market Review
UK equities rose strongly over the year to 30 September
2025 in response to signs of global economic resilience, a
de-escalation in global trade tensions and a series of Bank
of England base rate cuts.
After performing strongly in the first six months of the
period, global equity markets reacted badly to President
Trump’s initial tariff announcement in April 2025 before
staging a dramatic rebound when a 90-day pause and
various sector exemptions were announced. This swift
policy moderation led investors to reassess the
permanence of trade disruption, boosting risk appetite.
Global economic growth remained resilient throughout
the period, allaying fears of recession.
Sentiment towards UK equities remained positive,
supported by four Bank of England rate cuts during the 12
months. Despite the Government’s attempts to revive
economic growth, the data remained disappointing, with
stubbornly high inflation and the threat of further tax hikes
causing individuals and businesses to hoard cash. This in
turn caused disappointing tax revenues, compounding
bond market fears over the UK’s fiscal situation.
80
85
90
95
100
105
110
115
120
Sep
24
Oct
24
Nov
24
Dec
24
Jan
25
Feb
25
Mar
25
Apr
25
May
25
Jun
25
Jul
25
Aug
25
Sep
25
FTSE 100 FTSE 250
FTSE Small Cos FTSE All-Share
Despite these headwinds, investors remained unfazed,
with the FTSE 100 Index reaching successive record highs
towards the end of the review period and posting a total
return of 17.0% over the 12 months. Large-cap sectors
such as Banks and Aerospace & Defence were supported
by strong earnings growth thanks to benign conditions. In
contrast, gains among mid and small-cap shares were
more muted, as subdued consumer and business
confidence strained the earnings of domestically
orientated companies, with the FTSE 250 and FTSE
small-cap indices posting total returns of 8.9% and
9.1% respectively.
0%
20%
40%
60%
80%
100%
FTSE 100
Index
FTSE 250
Index
FTSE Small
Cap Index
FTSE AIM
Index
Other
Portfolio and Reference Index weights by market cap at
30 September 2025
Portfolio Reference Index
Revenue Account
Key Highlights
Metric Value Change/Context
Total Income £12.5 million
↓ from £12.6m
(lower gross revenue)
Net Revenue Earnings £11.2 million ↑ 2.1% YoY
Revenue EPS 23.43p ↑ 1.6% from 23.05p
Full Year Dividend 23.00p ↑ 0.4% from 22.90p
Revenue available for ordinary shareholders
Revenue available for ordinary shareholders grew by 2.1%
to £11.24 million, driving a 1.6% increase in revenue return
per ordinary share. This was the result of lower withholding
tax charge offsetting marginally lower gross revenue.
Special dividends
The contribution from special dividends increased to 7.5%
of the total cash dividend income (from 5.0% in FY24) as
the holdings in Petershill Partners, Ithaca Energy and
Sabre Insurance all paid special dividends. Across the
wider market, special dividends have generally been
supplanted by share buybacks. These have become
management teams’ preferred method of returning
capital. We note that 31 of the portfolio’s holdings,
representing 57% of the portfolio, undertook a share
buyback in the financial year.
Portfolio Mana
g
er’s Review
10 Aberdeen Equity Income Trust plc
Attractive dividend yield
The portfolio delivered a gross dividend yield of 6.1%,
before costs, based on the portfolio value at period end.
This compares favourably to the yield of the FTSE All-
Share index (the Company’s “reference index”) of 3.3% as
at 30 September 2025
Benefit of lower base rates
During the period, the Bank of England cut the base rate
by 0.25% on four occasions, bringing the rate down to
4.0%. This has helped to restore a cushion between the
rate the Company pays on its bank loan facility (used to
finance gearing) and the dividend yield earned on the
portfolio. This is a positive development for the revenue
account. Looking ahead, money markets are currently
pricing in a further two rate cuts by Spring 2026.
Dividend outlook
The dividend outlook for the broader UK equity market will
depend on several factors. These include the preference
of management teams for share buybacks over
dividends, trends in UK and global economic growth and
movements in the US dollar/sterling exchange rate. At a
sector level, we continue to find plenty of attractive
opportunities, most notably in the Financial sector.
Extending the Company’s track record of dividend growth
Against an uncertain macro backdrop, we have continued
to build a diversified portfolio of companies offering high
dividend yield, dividend growth, and capital growth
potential. This has supported the Board’s decision to
extend the Company’s track record of dividend per share
growth to 25 years. We are also convinced that our focus
on income does not come at the cost of capital growth, as
we demonstrate that UK companies generating sufficient
cash flow to pay attractive dividends and buy back their
own shares can also deliver good capital growth for
shareholders. This reinforces our belief that the income
and capital aspects of the investment objective can be
achieved in tandem.
Portfolio Performance
The Company’s net asset value (“NAV”) total return was
21.8% for the period, significantly outperforming the total
return of 16.2% for the Company’s reference index. The
share price total return was 25.7%.
Our strong performance relative to the reference index
can be attributed to both positive sector allocation and
successful stock selection. Approximately two thirds of the
outperformance came from sector allocation, with the
remaining third driven by stock selection. As we note in the
Market Review section, the period under review saw the
FTSE 100 Index significantly outperform the rest of the
market, as investors favoured internationally-orientated
large-cap shares over domestically orientated mid and
small-cap shares. We were well prepared for this market
backdrop, remaining highly selective on domestically-
orientated companies given our concern that rising taxes
and stubborn inflation would continue to constrain
consumer and business confidence.
Our index-agnostic investment approach means that we
size our positions according to our conviction in the idea,
rather than anchoring off index weightings. While we are
fully prepared for larger cap shares to continue
outperforming while domestic macro conditions remain
tough, we would typically expect a broadening out in
share price performance to represent a more benign
backdrop for our index-agnostic approach.
Turning to the sector and stock-specific drivers of
performance, the largest contributors were:
· Consumer Staples: Our Top 10 holdings in Imperial
Brands and British American Tobacco each surged over
50% as the market recognised their success in
generating cash flow from their core businesses,
underpinning attractive dividends, share buybacks and
investment in new categories. We also benefited from
not owning Diageo and Unilever whose share prices fell
in response to weak trading announcements.
· Construction: Galliford Try was the single biggest
contributor to performance at a stock level in response
to stronger than expected results, highlighting a growing
order book and continued progress towards their 4%
operating margin target.
· Energy: The Ithaca Energy share price more than
doubled in response to stronger than expected
production, supporting one of the largest dividends in
the market. The stock was also supported by
speculation that the Government may reform the
Energy Profit Levy in support North Sea employment
and energy security.
Portfolio Mana
g
er’s Review
Continued
Aberdeen Equity Income Trust plc 11
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
· Financials: The Company’s holding in Petershill Partners
moved sharply upwards after a bid from Goldman
Sachs at a 34% premium (see the Case Study on page
40). International Personal Finance also rose on the
announcement of a bid offer from private equity. OSB
responded well to a series of positive trading updates
and a plan to diversify into adjacent lending niches.
· Healthcare: We avoided the sector completely during a
period of significant regulatory and political upheaval,
seeing better opportunities elsewhere.
The largest detractors to performance were:
· Consumer Discretionary: The Company’s holdings in
Berkeley Group and Barratt Redrow detracted from
performance as the market responded badly to
evidence of slowing volumes due to the sluggish macro
backdrop and the slow pace of regulatory and planning
reform.
· Aerospace & Defence: Performance suffered from being
underweight this sector at a time of severe geopolitical
tensions. Not owning Rolls Royce hit relative
performance by nearly 2 percentage points.
· Non-life insurance: The positive contribution from
Financials was partially offset by Conduit which fell on
news of larger than expected losses, in particular those
relating to the Californian wildfires.
Activity
During the period we found a range of new investment
opportunities that we expect to help deliver on each
aspect of the investment objective – dividend yield,
dividend growth, and valuation re-rating.
These opportunities span a variety of sectors and themes,
reflecting our flexible and forward-looking investment
approach. The following section outlines the most
significant purchases made during the period, grouped by
strategic rationale.
The largest purchases during the period can be
categorised into the following groupings:
1. UK domestic companies whose low valuations do not
capture their potential:
· MONY: Price comparison platform MONY is pursuing a
strategy of shifting its customer base from transactional
users to active members by launching SuperSaveClub.
This has increased customer loyalty and reduced
customer acquisition costs by curbing the need for
marketing, which has historically dragged on margins.
We see the P/E ratio of 10x and dividend yield of 7% as
excellent value for this market-leading platform
business.
· easyJet: Low-cost airline easyJet is progressing towards
its medium-term targets, aiming to double its profit per
seat through a combination of easyJet holidays, fleet
upgrades (increasing the size and efficiency of their
aircraft) and route optimisation (pushing into more
lucrative longer haul routes). The stock trades at a P/E
ratio of 7x and also trades at a discount to the value of its
fleet despite having a very strong balance sheet and
strong growth prospects.
12 Aberdeen Equity Income Trust plc
2. Change situations where the potential for improvement
has been ignored:
· Balfour Beatty: Construction business Balfour Beatty has
strong earnings prospects, being exposed to growing
infrastructure demand in the UK and US. We saw the
potential for a valuation re-rating, with balance sheet
support from its net cash position and its portfolio of
infrastructure assets.
· Coats: Apparel and footwear components
manufacturer Coats announced a placing that raised
funds to acquire Ortholite, a global leader in insole
technology. We took part in this placing, seeing the
acquisition as helpful in accelerating growth and
improving margins. We see the valuation of 10x PE as
attractive for a global market leader.
· DCC: Distribution business DCC has conducted a
strategic review, concluding that the group should break
up, disposing of its Healthcare and Technology divisions,
focusing on its Energy division which generates higher
and less variable returns. With the shares trading at a
P/E ratio of just 11x, we expect this action to drive a
gradual valuation re-rating.
· Victrex: Speciality chemicals business Victrex has
struggled due to a prolonged downturn in demand
causing a build-up in inventory which is taking time to
unwind. The key to its turnaround is its Medical division,
which is the highest margin part of the business thanks
to very high barriers to entry. We expect the stock to
recover once evidence of a trough in earnings starts
to emerge.
3. Defensive shares whose low valuations fail to price
in their resilience:
· Endeavour Mining: We re-established a weighting in the
precious metals sector, having previously owned
Centamin which was taken over by Anglogold in 2024.
Endeavour operates in West Africa, an area of
significant exploration potential, with rich and relatively
undeveloped geology. The mines are high quality, with a
low cost of production. On a macro level, gold is a
defensive asset, being a hedge against geopolitical
chaos. The stock offers consistent dividend payouts
and share buybacks, underlining the cash generative
nature of the business, while it continues to invest in
new projects.
· Pennon: With the publication of the latest water industry
regulatory framework (AMP 8), Pennon now has clarity
on its returns outlook, allowing it to proceed with a rights
issue. Trading at around 1x its regulatory asset base, the
stock now looks attractively valued relative to the
returns it is expected to make.
The largest sales during the period can be categorised
into the following groupings:
1. Reducing exposure to Mining sector:
· BHP/Glencore: We reported in the FY24 report that
we had reduced the portfolio’s weighting in the
Resources sector, and we continued this reduction in
FY25. We observed the impact of a slower Chinese
economy on commodity demand, as well as a
general shift in capital allocation priorities towards
M&A, away from distributions. Towards the end of
the period, we started to rebuild the portfolio’s
weighting in the sector, adding to our favoured
holding, Rio Tinto, where we see potential to grow the
proportion of earnings it generates from copper and
aluminium, reducing its dependence on the iron
ore price.
2. Moderating some of the portfolio’s largest positions in
Tobacco and Utilities:
· Imperial Brands: After a blistering rally that saw the
shares double since 2021, the portfolio’s weighting in
Imperial Brands was almost 6% by the end of April
2025 and so we took some profits to provide the
funds to diversify the portfolio.
· National Grid: We reduced the holding in National
Grid, using it as a source of funds for new
investments, having become a very large holding
following its rights issue.
· SSE: We sold the Company’s holding in SSE where we
saw growing operational and political risk in their
renewables business, shifting our preference
towards other defensive shares.
3. Exiting shares that received M&A bids:
· Assura: This was another busy year of M&A for the
portfolio, with bid announcements for 3 of the
portfolio’s holdings. We sold the holding in Assura
after it received offers from two bidders, KKR and
Primary Healthcare Properties. With the shares
trading close to its net asset value, we exited the
stock, switching into Segro at nearly 30% discount to
net asset value. We see this M&A activity as a sign of
the intrinsic value in this portfolio.
Portfolio Mana
g
er’s Review
Continued
Aberdeen Equity Income Trust plc 13
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Outlook
How we are navigating change in a turbulent environment
Political and economic turbulence is creating a backdrop
of constant change. Our investment philosophy, Focus on
Change, has helped us to thrive in this environment,
delivering strong capital growth as well as an above-
average dividend yield and a growing income stream. We
relish the opportunities that change creates.
Market conditions during this financial year were far from
optimal for active investors, as reflected in performance
data across the wider fund management industry,
showing that only a small percentage of fund managers
are managing to beat their benchmarks. The most
obvious explanation for this is that a small number of very
large companies are generating the highest returns. This is
most apparent in the US equity market where the
“Magnificent 7” technology shares continue to leave the
rest of the market in the shade. The same phenomenon is
occurring in many other equity markets around the world,
including the UK where the FTSE 100 significantly
outperformed the FTSE 250 and FTSE Smaller Companies
indices during the period under review.
This raises an important question: how are we able to
navigate these market conditions successfully? First, our
differentiated investment process allows us to go
anywhere, across all sectors, as well as up and down the
market cap spectrum. This gives us the flexibility to adapt
and respond to change. Second, the emphasis we place
on scrutinising a company’s valuation is a key aspect of
our investment process. The importance of valuation
comes to life when managing an income portfolio, as a
company’s share price must be assessed in relation to the
stream of cash flows it generates and the dividends it pays
out. This can shed light on what is being priced in, allowing
a judgement to be made on whether the stock is
attractively valued.
Many of the Company’s most successful investments
have been situations where the share price implies a fade
in dividends that was far too pessimistic given the strength
of the underlying franchise. If that makes us contrarian to
own higher yield shares, then so be it. We do not
immediately write off cheaply valued shares as value
traps. At a time when many investors have confined
themselves to quality/growth shares, we believe this
open-mindedness gives us an edge over the Company’s
peers. Examples of sectors which we have embraced, and
others have eschewed include Financials, Tobacco, and
Energy, all of which were key contributors to the
Company’s performance during the financial year. We will
keep scouring the market for shares whose share prices
appear to be out of kilter with their cash flow and
dividend prospects.
Valuation Context
The UK equity market remains amongst the cheapest in
the world, trading at 13x compared to the US equity
market at 23x, Japan at 17x and Europe at 15x. Within the
UK equity market, the more domestically orientated FTSE
250 index trades at 12x, one multiple point lower than the
FTSE 100. This reflects investor concerns over the
prospects for the UK economy.
While the Chancellor of the Exchequer, Rachel Reeves,
may have inherited a bad hand, it has not helped her
cause that she has abandoned spending cuts and has
instead pursued growth-damaging tax hikes. We are
currently cautiously positioned in relation to UK consumer
discretionary shares given this challenging conjuncture,
reflected in the rise in precautionary savings by
consumers and households as they batten down the
hatches. Our decision to exercise caution has served the
portfolio well at a gloomy time for the UK economy.
However, we recognise the low valuations on offer among
UK domestic shares, and we will keep sifting through this
part of the market in pursuit of compelling investment
opportunities. Our experience is that it is often out of these
moments of macro turmoil that provide the raw material
for future outperformance.
14 Aberdeen Equity Income Trust plc
Portfolio of undervalued shares with catalysts to perform
The Company’s portfolio remains significantly cheaper
than the wider market. At the time of writing, the portfolio
has a median P/E ratio of 10.0x, a median Free Cash Flow
yield of 9.9% and a median Price/Book ratio of 1.4x which
compares favourably with 12.2x, 5.3% and 1.7x
respectively for the FTSE All-Share (ex-Investment Trusts)
Index. We recognise that low valuations, in isolation, are
not always enough to drive share prices. Therefore, we
aim to identify catalysts that can unlock this latent value.
Later in this report we provide two examples of our
investment process in action – Johnson Matthey and
Petershill Partners. Both are examples of shares where
M&A activity provided the catalyst for their share prices.
The portfolio also benefited from bids for two other
companies – Assura and International Personal Finance.
At the same time, share buybacks continue apace, with 31
out of 54 holdings undertaking share buybacks during the
financial year. We also see earnings upgrades as a
catalyst for share price performance, and we therefore
use our in-house quant model to monitor the earnings
revisions of the Company’s holdings and the wider market.
Taken together, we see low valuations, M&A activity, share
buybacks and earnings upgrades as a very powerful
combination for the portfolio in the years ahead.
Delivering for Shareholders
We remain focused on what matters to the Company’s
shareholders – dividend yield, dividend growth, and capital
growth. We have demonstrated that our focus on high
yield is entirely consistent with our determination to deliver
strong capital growth for shareholders. We have covered
the dividend, as we have done in 11 of the last 13 years,
and have added to the Company’s reserves and delivered
a 25th consecutive year of dividend per share growth. We
are also delighted the Company has been able to issue
new shares, as the share price has regularly traded above
its net asset value. The portfolio is differentiated and
diversified, with an investment process that is designed to
uncover shares trading at low valuations with specific
catalysts for outperformance. With these strong
foundations in place, we see the portfolio as well placed to
deliver again for shareholders in the year ahead.
Thomas Moore
Portfolio Manager
8 December 2025
Portfolio Mana
g
er’s Review
Continued
Aberdeen Equity Income Trust plc 15
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Business Model
The Company is an investment trust, and its Ordinary
shares are listed on the London Stock Exchange.
Benefits of the Company’s Business Model
The Company’s business model offers a number of
advantages to shareholders:
Provides investors with access to a
professionally and actively managed
portfolio of assets.
Enables investors to spread the risk of
investing through a diversified portfolio.
25-year history of dividend growth
and payment of four interim dividends
each year.
No capital gains tax paid by the
Company on the realisation of the
investments held in the portfolio.
Closed end structure enables the
Portfolio Manager to take a longer-term
view on investments and remain
fully invested.
If required, Company has ability to draw
on revenue and capital reserves to
support the payment of dividends.
Ability to use leverage to increase
potential returns to investors; and
Oversight by an independent Board
of Directors who represent
shareholders’ interests.
Investment Objective
The Company’s objective is to provide shareholders with
an above average income from their equity investment,
while also providing real growth in capital and income.
Investment Policy
Diversification and Asset Allocation Parameters
The Directors set the investment policy, which is to invest in
a diversified portfolio consisting mainly of quoted UK
equities which will normally comprise between 50 and 70
individual equity holdings.
In order to reduce risk in the Company without
compromising flexibility:
· no holding within the portfolio should exceed 10% of
total assets at the time of acquisition; and
· the top ten holdings within the portfolio will not exceed
50% of net assets.
The Company may invest in convertible preference
shares, convertible loan stocks, gilts, and corporate bonds.
Gearing
The Directors set the gearing policy within which the
portfolio is managed. The parameters are that the
portfolio should operate between holding 5% net cash and
15% net gearing. The Directors have delegated
responsibility to the Manager for the operation of the
gearing level within the above parameters.
Delivering the Investment Objective
The Board delegates investment management services to
Aberdeen. The team within Aberdeen managing the
Company’s portfolio of investments has been headed up
by Thomas Moore since 2011.
The portfolio is invested on an index-agnostic basis. The
process is based on a bottom-up stock-picking approach
where sector allocations are a function of the sum of the
stock selection decisions, constrained only by appropriate
risk control parameters. The aim is to Focus on Change by
evaluating changing corporate situations and identifying
insights that are not fully recognised by the market.
Overview of Strate
g
y
16 Aberdeen Equity Income Trust plc
Idea Generation and Research
The vast majority of the investment insights are generated
from information and analysis from one-on-one company
meetings. Collectively, more than 3,000 company
meetings are conducted annually across Aberdeen.
These meetings are used to ascertain the company’s own
views and expectations of its future prospects and the
markets in which it operates. Through actively questioning
the senior management and key decision makers of
companies, the portfolio managers and analysts look to
uncover the key changes affecting the business and the
materiality of their impact on company fundamentals
within the targeted investment time horizon.
Investment Process in Practice
The index-agnostic approach ensures that the weightings
of holdings reflect the conviction levels of the investment
team, based on an assessment of the management team,
the strategy, the prospects, and the valuation metrics. The
process recognises that some of the best investment
opportunities come from under-researched parts of the
market, where the breadth and depth of the analyst
coverage that the Portfolio Manager can access provides
the scope to identify a range of investment opportunities.
The consequence of this is that the Company’s portfolio
often looks very different from other investment vehicles
providing their investors with access to UK equity income.
This is because the process focuses on conviction levels
rather than index weightings. This means that the
Company may provide a complementary portfolio to the
existing portfolios of investors who prefer to make their
own decisions and manage their ISAs, SIPPs, and personal
dealing accounts themselves. As at 30 September 2025,
54.8% (2024: 51.1%) of the Company’s portfolio is invested
in companies outside the FTSE 100 Index.
The index-agnostic approach further differentiates the
portfolio because it allows the Portfolio Manager to take a
view at a thematic level, concentrate the portfolio’s
holdings in certain areas and avoid others completely. The
effect of this approach is that the weightings of the
portfolio can be expected to differ significantly from that
of any index, and the returns generated by the portfolio
may reflect this divergence, particularly in the short term.
The Manager’s Approach to ESG
There is a broad understanding on the Board that a full and
thorough assessment of environmental, social and
governance (“ESG”) factors will allow for better investment
decisions to be made. ESG factors are always considered
alongside financial and other fundamental factors in order to
make the best possible investment decisions at a stock
picking and at a portfolio construction level. It should be noted
that the Company does not have a sustainability objective
and does not promote any sustainability characteristics, nor
does it specifically exclude any sectors from its investment
universe.
By considering ESG factors, the Board believes that the
Portfolio Manager has a more complete view of a
company, including its risks and opportunities. The
analysts supporting the Portfolio Manager seek to
determine which ESG factors are financially material to
form a forward-looking view of how a business will
manage risks and capture opportunities. The analysts
focus on what they deem to be the most material ESG
factors to understand their impact on a company’s
future business performance, financial position, and/or
market perception.
To advance this analysis on behalf of the Company’s
shareholders, the Portfolio Manager has a very close
relationship with the ESG specialists within Aberdeen and
there is an on-desk ESG analyst to assist in the research
process and ESG engagements with companies. Through
the utilisation of third party provided research, including
MSCI and Aberdeen’s in-house ESG rating tools, the team
is able to identify, where appropriate, leaders and
laggards, areas of weakness and areas of strength.
During the reporting period the Portfolio Manager
conducted a review of the physical climate risks faced by
companies held within the portfolio. This assessment drew
insights from company reporting, Aberdeen’s climate
scenario analysis tool, and third-party climate risk
assessments.
Based on this analysis, the Portfolio Manager identified
companies and industries potentially most at risk from
physical climate impacts. As part of ongoing monitoring of
these risks, the Portfolio Manager intends to engage with
specific portfolio companies to enhance understanding of
their resilience to such impacts.
Overview of Strate
g
y
Continued
Aberdeen Equity Income Trust plc 17
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
It should be noted that as part of the investment process
to identify attractive investment opportunities, the
Portfolio Manager must consider a diverse range of
companies, spanning a broad-spectrum of practices. An
important feature of the investment process is therefore
active and meaningful engagement to generate insights
into underlying performance, with the Company’s
approach to engagement set out below.
Proactive Company Engagement
The Manager believes that proactive company
engagement ensures the holdings in the portfolio remain
or become better companies.
See the Case Studies on pages 38 to 40 for specific
examples of the Company’s engagement with
investee companies.
The Manager’s Approach to Engagement
Engagement is an important part of the Manager’s
investment process, the Manager sees engagement not
only as a right but as an obligation of investors, in its role as
owners of companies. The Manager engages actively and
regularly with companies in which it is or may become
an investor.
The Manager believes that informed and constructive
engagement helps to foster better companies, enhancing
the value of the Company’s investments.
There are generally two core reasons for engagement:
to understand more about a company’s strategy and
performance or encourage best practice and
drive change.
Active engagement involves regular, candid
communication with management teams (or boards of
directors) of portfolio companies to discuss a broad range
of issues that are material to sustain long-term returns,
either positively or negatively, including both risks and
opportunities. The Manager’s focus is on the factors which
it believes to have the greatest potential to enhance or
undermine the Company’s investment case. Sometimes
the Manager seeks more information, exchanges views on
specific issues, encourages better disclosure: and at other
times, encourages change (including either corporate
strategy, capital allocation, or climate change strategy).
On the Company’s behalf, the Manager’s engagements
cover a range of issues, including but not limited to board
composition, remuneration, audit, climate change, labour
issues, human rights, bribery, and corruption.
Promoting the Success of the Company
The Board’s statement on pages 26 to 29 describes how
the Directors have discharged their duties and
responsibilities over the course of the financial year under
section 172 (1) of the Companies Act 2006 and how they
have promoted the success of the Company. That
statement forms part of the Strategic Report.
18 Aberdeen Equity Income Trust plc
Key Performance Indicators (“KPIs”)
The Board assesses the performance of the Company against the range of KPIs shown below over a variety of time
periods, but has particular focus on the long term, which the Board considers to be at least five years.
KPI Description
Net Asset Value (“NAV”) Total Return
relative to the FTSE All-Share Index
While the Manager does not manage the portfolio with direct reference to any
particular index, the Board does review the performance against that of the FTSE All-
Share Index to provide context for the performance delivered.
The Company’s NAV Total Return relative to the FTSE All Share Index since 2014, is set
out on page 31.
Premium or discount to the NAV compared to
the unweighted average of the discount of
the peer group
The Board compares the premium or discount of the Company’s share price to its
NAV when compared to the unweighted average discount of the other investment
trusts in the UK Equity Income sector.
A five-year chart showing the premium or discount of the Company and for the UK
Equity Income sector is shown on page 31.
Dividend growth compared to the
Retail Price Index (“RPI”)
The Company’s objective is to provide shareholders with an above average income,
while also providing real growth in capital and income. Between 2012, the first full
year after Thomas Moore took over the role of Portfolio Manager, and the outbreak
of the Covid-19 pandemic, the annual dividend growth of the portfolio exceeded
inflation, as measured by the RPI, indicating that shareholders had received real
growth in the dividends paid by the Company.
However, the income generated by the portfolio was significantly affected by
dividend cuts made by investee companies during 2020. While dividend payments
to shareholders have increased over the last three years, they have not kept pace
with RPI.
In setting the level of the dividend for the current financial year, the Board has
balanced the need to deliver an increase to shareholders and its desire to continue
rebuilding the revenue reserves. After payment of the fourth interim dividend, and
based on current shares in issue, 0.29 pence per share will be transferred to revenue
reserves.
A breakdown of the Company’s dividend growth compared with RPI since 2015 is set
out on page 32.
Ongoing charges ratio relative to
comparator investment vehicles
The Board monitors the Company’s ongoing charges ratio against prior years and
other similar sized companies in the peer group.
The Ongoing Charges Ratio for the year decreased moderately to 0.84% based on
average net assets over the year (2024: 0.86%).
Continued
Overview of Strate
g
y
Aberdeen Equity Income Trust plc 19
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Principal Risks and Uncertainties
The Board and the Audit and Risk Committee carry out a
regular review of the risk environment in which the
Company operates, to identify changes in the operating
environment and assess individual risks.
Risk Management Framework
There are a number of principal risks and uncertainties
which, if realised, could materially impact the
Company’s business model, performance, solvency,
liquidity, or reputation.
The Board, through the Audit and Risk Committee, has
implemented a risk management framework to identify,
robustly assess and monitor the principal and emerging
risks facing the Company. These risks, and the controls to
manage these risks, are captured in a risk register and
heat map.
Principal Risks
The principal risks facing the Company, as determined by
the Board, are outlined in the table below. The Board
considers its risk appetite in relation to each principal risk
and monitors this on an ongoing basis. Where a risk is
approaching or is outside the tolerance level, the Board
will consider taking action to manage the risk. Currently,
the Board considers the risks to be managed within
acceptable levels.
Emerging Risks
Emerging risks are typified by having a high degree of
uncertainty and may arise from sudden events, emerging
trends, or evolving risks where the impact and likelihood
are difficult to determine. As the assessment becomes
clearer, the risk may become a ‘known’ risk.
During the year under review, the Board did not identify
any new emerging risks which are not already
encompassed within the existing principal risks.
Review of risk management framework
The effectiveness of the risk management framework is
monitored and reviewed throughout the year, as
explained in the Audit and Risk Committee Report on
pages 59 to 62.
Other disclosures
The principal risks associated with an investment in the
Company’s shares are also published in the monthly
Company factsheet and they can be found in the pre-
investment disclosure document (“PIDD”) published by
the Manager, both of which are available on the
Company’s website.
Principal Risk Trend Mitigating Action
Strategy –
Demand for the Company’s
shares may decline if its
objectives become
misaligned with investor
expectations, or if the
investment trust sector as a
whole - or the equity income
sub-sector – loses appeal
among investors.
The Board monitors the Company’s strategy and market positioning through regular
updates from the Manager, analysis of share price movements and investor sentiment.
It also reviews the share price premium or discount at which the Company’s shares
trade relative to the net asset value and its peers. Working with the broker, the Board
has undertaken several share issuances during the year to meet investor demand.
An annual strategy meeting is held to assess the Company’s positioning, during which
the Board receives feedback from the broker on the broader investment trust sector,
the UK Equity Income sub-sector, and the Company’s relative performance.
To further understand investor sentiment, the Board receives regular updates from the
Manager’s investor relations team regarding market perceptions of the Company and
its strategy.
20 Aberdeen Equity Income Trust plc
Overview of Strate
g
y
Continued
Principal Risk Trend Mitigating Action
Market Risk-
Absolute portfolio losses
arising from economic or
market factors – such as
interest rates, exchange rates,
inflation – global political
developments and other
exogenous factors.
The Board recognises that market risk plays a critical role in delivering performance
and regularly reviews the investment restrictions and guidelines it has set to ensure
that they remain appropriate.
It meets with the Manager frequently and regularly receives reports to assess portfolio
diversification, asset allocation, stock selection, and gearing levels. These discussions
also consider the impact of geopolitical instability and broader market developments
on risk exposure.
The Manager maintains ongoing dialogue with investee companies, economists, and
market participants to evaluate the effects of global economic and political conditions
on the portfolio and shares these insights with the Board.
Although elevated market risk remains, and the Company is limited in its ability to
mitigate the effect of external factors, the Board and Manager recognise that such
conditions can also create attractive investment opportunities for the Portfolio
Manager.
Investment Performance -
Persistent underperformance
relative to benchmarks and
peers may reduce the
Company’s appeal as an
investment proposition.
The Board reviews the Company’s investment performance against its stated
objectives, reference benchmark, and the AIC UK Equity Income sector peer group on
a monthly basis. Performance is challenged where appropriate at each Board
meeting.
At every meeting, the Board assesses the level of gearing and its contribution to
performance, the share price premium or discount, revenue forecasts, and the
Company’s operating expenses. The Board also monitors physical climate risks
affecting portfolio companies through quarterly reports provided by the Manager.
It determines the Company’s dividend policy and approves the level of dividends
payable to shareholders.
The Remuneration & Management Engagement Committee conducts a formal
annual appraisal of the Manager’s performance.
Given the recent performance of the NAV and the share price, the Board concluded
that the risk of the impact of a short-term drop off in performance (should it arise) has
diminished.
Discount/Premium to NAV –
Volatility in the level of
discount increases levels of
uncertainty for shareholders.
The Board actively monitors the Company’s share price premium or discount relative
to net asset value. Over the final six months of the financial year, the Company
predominantly traded at a premium, enabling the issuance of 1,005,000 shares from
Treasury to meet investor demand.
At 30 September 2024, the share price traded at a discount of 3.0% to NAV, while at 30
September 2025, it was trading at par. If necessary, the Board retains the authority to
buy back shares. The most recent buyback occurred in November 2022.
The Board has assessed the discount/premium control risk as decreased due to the
Company sharing price trading at a premium or narrow discount.
Aberdeen Equity Income Trust plc 21
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Principal Risk Trend Mitigating Action
Operational Risk –
All of the Company’s
operations are outsourced to
third-party service providers.
Any failure in their operational
controls, poor service delivery,
or disruption of technology
systems—such as through
cyber-attacks, failed software
updates, or data breaches—
could result in operational
disruption, inaccurate
financial reporting, regulatory
breaches, reputational
damage, or financial loss to
the Company.
The Audit and Risk Committee closely monitor the control environment and quality of
services provided by third-party providers through service level agreements, regular
meetings, and key performance indicators. It receives and reviews regular reports—
including ISAE assurance reports—from the Manager and other significant service
providers covering operational controls, risk management, business continuity, and
cyber security strategies.
Written agreements are in place with all third-party service providers.
The Remuneration & Management Engagement Committee conducts a formal
appraisal of the Company’s key service providers annually. No material issues were
identified during the 2025 evaluation.
Governance Risk –
An inexperienced or an
ineffective Board—unable to
engage in discussion, review
matters, or make decisions—
could adversely impact the
Company’s governance,
strategic direction, and
shareholder value.
The Board recognises the importance of effective leadership and appropriate board
composition and experience. It regularly reviews its structure and tenure to ensure
continued independence and diversity of thought. All Directors are subject to annual
shareholder re-election.
The Board has agreed that Ms Hitch will retire in January 2026, having served nine
years. In preparation, a search and selection process was undertaken with the support
of Fletcher Jones, resulting in the appointment of Ms Ryder as an independent non-
executive director on 1 October 2025.
Board, Committee, Chair, and individual Director performance is formally evaluated
annually through an externally facilitated process led by Cyclico. No material issues
were identified in the 2025 evaluation.
Financial obligations –
Inadequate controls over
financial record-keeping and
forecasting, the
implementation of an
inappropriate gearing
strategy, or a breach of loan
covenants could result in the
Company being unable to
meet its financial obligations.
This may lead to financial
losses and could impact the
Company’s ability to continue
operating as a going concern.
At each Board meeting, the Directors review management accounts, revenue
forecasts, and the coverage of the forecasted dividend for the current financial year,
alongside the Company’s long-term dividend growth strategy.
As at 30 September 2025, the Company held revenue reserves of £10.6 million (prior to
payment of the fourth interim dividend) and distributable capital reserves of £83.8
million.
The Board sets the gearing policy, which permits the portfolio to operate within a range
of 5% net cash to 15% net gearing. Responsibility for managing gearing within these
parameters is delegated to the Manager, who provides quarterly reports on gearing
performance and covenant compliance.
These matters are considered in greater depth as part of the Board’s annual strategy
review.
The Company’s annual financial statements are independently audited.
22 Aberdeen Equity Income Trust plc
Overview of Strate
g
y
Continued
Principal Risk Trend Mitigating Action
Legal and Regulatory Risks –
The Company operates
within a complex legal and
regulatory framework. Failure
to comply with applicable
laws and regulations—or to
identify and implement
necessary regulatory
changes—could result in
financial or legal penalties,
reputational damage, and the
potential loss of investment
trust status or suspension of
the Company’s shares.
The Board has formal agreements in place with its key service providers, including the
Investment Manager, to support ongoing legal and regulatory compliance. It receives
quarterly reports from each provider to monitor adherence to relevant requirements.
The Company complied with all legal and regulatory obligations during the reporting
period to 30 September 2025.
The Board also receives and reviews monthly reports on compliance with s.1158/9 of
the Corporation Tax Act 2010, which governs investment trust status.
The Board responds to relevant FCA consultations and monitors legislative and
regulatory changes.
The Board has adopted the AIC Code of Corporate Governance (2024) and
associated guidance, which will be implemented in the financial year commencing 1
October 2025.
Where necessary, the Board may instruct additional external professional support on
behalf of the Company or individual Directors.
Financial and Non-Financial
Reporting
Material misstatements in the
Company’s financial or non-
financial reporting—whether
due to inaccurate or
incomplete disclosures—could
result in a loss of investor and
public trust, regulatory fines,
reputational damage, and
potential legal consequences.
The Manager oversees the delegated accountant to ensure that all financial and non-
financial reporting is accurate and complete.
The Board receives regular reports from key service providers detailing internal
controls, as well as any breaches or errors identified.
The Company Secretary supports the Board in ensuring that all required legal and
regulatory disclosures are made to the market and relevant authorities in a timely
manner.
The Board engages with the external auditor and reviews the annual report, including
the financial statements and accounting policies.
The auditor conducts an independent annual audit to obtain reasonable assurance
that the financial statements are free from material misstatement and provide their
opinion in the Independent Auditor’s Report to shareholders.
A Corporate Governance checklist is completed against the annual report and
published on the Company’s website.
Aberdeen Equity Income Trust plc 23
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Promotional Activities
The Board recognises the importance of promoting the
Company to both current and prospective investors, with
the aim of improving liquidity and enhancing the value and
rating of the Company’s shares.
To support this, the Board subscribes to and participates in
the promotional programme run by Aberdeen, which
covers a number of investment trusts under its
management. The Company’s financial contribution to
the programme is matched by Aberdeen. In addition, the
Company supports Aberdeen’s investor relations
programme, which involves regional roadshows,
promotional campaigns, and public relations activity.
Aberdeen’s promotional and investor relations teams
report to the Board on a quarterly basis, providing analysis
of the promotional activity, updates on shareholder
engagement, and changes in the composition of the
share register.
The purpose of these programmes is to communicate
effectively with existing shareholders and attract new
investors, thereby supporting share liquidity and valuation.
A key element of this, independent paid-for research is
commissioned – most recently from Kepler Trust
Intelligence Research Limited. The latest research note
is available in the Key Documents section of the
Company’s website.
During the year, the Board hosted two shareholder
engagement events. On 28 January 2025, an online
investor presentation was held, during which the Portfolio
Manager provided a portfolio update and, alongside the
Chair, responded to live questions from attendees. On 28
August 2025, the Board hosted an in-person meeting for
large shareholders, where the Portfolio Manager again
presented an update. Both events provided valuable
opportunities for the Directors to hear shareholder
views directly.
Values and Culture
The Board is committed to maintaining high standards of
governance, underpinned by a culture of openness,
mutual respect, integrity, constructive challenge, and trust.
It seeks to act at all times in the best interests of
shareholders, making effective use of the diverse skills and
experience of its Directors.
This culture of openness and constructive challenge
extends to the Board’s engagement with the Manager
and other service providers.
To support good governance, the Company has
established a range of policies and procedures, including
those relating to Directors’ conflicts of interest, dealings in
the Company’s shares, anti-bribery (including the
acceptance of gifts and hospitality) and the prevention of
tax evasion. The Board regularly assesses and monitors
compliance with these policies regularly through Board
meetings and the annual review process.
Board Diversity
The Board’s statement on diversity is set out in the
Directors’ Report on pages 47 to 48.
At 30 September 2025, the Board comprised two male
and two female Directors on the Board. Both the Chair
and the Senior Independent Director roles are held
by women.
Modern Slavery Act
Due to the nature of its business – as a company that does
not offer goods and services to customers - the Board
considers the Company to be outside the scope of the
Modern Slavery Act 2015, as it has no turnover.
Accordingly, the Company is not required to publish a
slavery and human trafficking statement.
Nonetheless, the Board considers the Company’s supply
chains, which primarily involve professional advisers and
service providers within the financial services industry, to
present a low risk in relation to modern slavery and
human trafficking.
Environmental, Social and Human
Rights Issues
The Company has no employees. Day-to-day
management and administrative functions are delegated
to the Manager. As a result, no employee related
disclosures are required.
The Company’s socially responsible investment policy is
set out below.
Active Engagement
Through active engagement and the exercise of voting
rights, the Manager works with investee companies to
promote higher standards of corporate standards,
transparency, and accountability.
The Manager’s primary objective is to deliver strong
long-term outcomes for the Company, in line with its
fiduciary responsibilities to shareholders. This approach
aligns with one of the Manager’s core principles in
evaluating investments.
24 Aberdeen Equity Income Trust plc
Responsible Investment
The Board is mindful of its duty to act in the interests of the
Company and its shareholders. It recognises the risks
associated with investment in companies that do not
operate in a socially responsible manner and has noted
the Manager’s policy on responsible investment.
As part of its investment process, the Manager considers
social, environmental, and ethical factors that may affect
the performance of the Company’s investments. In
particular, the Manager encourages investee companies
to adopt best practice in ESG stewardship. This is primarily
achieved through constructive engagement with
company management, aimed at improving policies
where necessary.
The Company’s objective is to provide shareholders with
an above-average income from their equity investment,
alongside real growth in capital and income. The Board
and Manager believe this can be achieved sustainably by
investing in companies that adhere to high standards of
corporate responsibility. Accordingly, the Manager seeks
to favour companies that demonstrate a commitment to
best practice.
Stewardship
The Company is committed to the UK’s Stewardship Code
and seeks to play its role in supporting responsible
stewardship of the companies in which it invests.
Responsibility for monitoring the activities of portfolio
companies has been delegated by the Board to the
Manager, which has sub-delegated that authority to the
Investment Manager. Aberdeen Group plc is a signatory of
the UK Stewardship Code which aims to enhance the
quality of investor engagement with investee companies
to improve their socially responsible performance and
deliver long-term value to shareholders.
While stewardship activities are delegated to the
Manager and its group, the Board acknowledges its role in
setting the tone for the effective stewardship on behalf of
the Company.
The Board has granted discretionary authority to the
Manager to exercise voting rights on resolutions proposed
by the investee companies. The Manager reports to the
Board on a quarterly basis on stewardship matters,
including voting activity.
Global Greenhouse Gas Emissions
All of the Company’s activities are outsourced to third
parties. As a result, the Company does not generate
greenhouse gas emissions from its own operations, nor
does it have responsibility for any other emissions-
producing sources under the Companies Act 2006
(Strategic Report and Directors’ Reports)
Regulations 2013.
For the same reason, the Company qualifies as a low
energy user under the Streamlined Energy and Carbon
Reporting (SECR) regulations and is therefore not required
to disclose energy and carbon information.
Task Force for Climate-related Financial
Disclosures (“TCFD”)
Under UK Listing Rules, the Company, as a closed ended
investment company, is exempt from the requirement to
comply with the Task Force on Climate-related Financial
Disclosures (“TCFD”).
Whilst TCFD does not currently apply to the Company
itself, the Manager, as the delegated Alternative
Investment Fund Manager (“AIFM”) is required to produce
a product level climate-related financial disclosure report
on the Company. This is in accordance with the Financial
Conduct Authority’s (FCA) ESG Sourcebook, and its rules
and guidance aligned with TCFD Recommendations and
Recommended Disclosures.
These disclosures are designed to meet the information
needs of institutional clients and other market participants,
regarding the climate-related risks and impacts
associated with the Manager’s TCFD in-scope business.
The product level report on the Company is available on
the Manager’s website at: invtrusts.co.uk.
Overview of Strate
g
y
Continued
Aberdeen Equity Income Trust plc 25
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Viability Statement
The Board considers that the Company is a long-term
investment vehicle and, for the purposes of this statement,
has decided that three years is an appropriate time period
over which to consider its viability. The Board considers this
to be an appropriate period for an investment trust
company with a portfolio of equity investments, and the
financial position of the Company.
Taking into account the Company’s current financial
position 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 assessing the viability of the Company over the
review period, the Directors have focused upon the
following factors:
· The principal risks and uncertainties detailed on pages
19 to 22 and the steps taken to mitigate these risks.
· All of the Company’s investments are traded on
major stock exchanges and there is a spread of
investments held.
· The Company is closed ended in nature and therefore it
is not required to sell investments when shareholders
wish to sell their shares.
· The Company’s share price and NAV both delivered
total returns in excess of 20%, outperforming the
Company’ reference index which delivered a total
return of around 16%.
· The Company’s median share price discount to NAV
during the year was 0.88% and has traded at a premium
for most of the last five months of the financial year.
· The Company has issued 1.005m shares (2.1% of the
opening share capital) raising over £3.6m
· The Company’s main liability is its bank loan of £22.5
million (2024: £22.5 million), which represents 11.2%
(2024: 13.0%) of the Company’s investment portfolio.
This is a £30 million (2024: £30 million) revolving credit
facility with The Royal Bank of Scotland International
Limited, London Branch, which was refinanced June
2023 and is due to expire in June 2026. The Board is
exploring alternative funding options but notes that the
Company could continue to operate/be viable without
any debt funding.
· The Company’s cash balance, and money market
funds, at 30 September 2025 amounted to £1.8 million
(2024: £1.9 million).
· The levels of ongoing charges have reduced to 0.83%
(2024: 0.86%).
· Shareholders’ overwhelming voting in favour of the
continuation of the Company at the AGM in February
2022. The next continuation vote is due to take place at
the AGM to be held in 2027.
When considering the risks, the Board reviewed a three-
year revenue forecast and the impact of stress testing on
the portfolio, including the effects of any future falls in
investment values. The Board has also had regard to
matters such as a reduction in the income generated in
the portfolio, material increases in interest rates, a
reduction in the liquidity of the portfolio or changes in
investor sentiment, all of which could have an impact on
the Company’s prospects and viability in the future. The
results of the stress tests have given the Board comfort
over the viability of the Company.
Taking into account all of these factors, the Company’s
current position and the potential impact of the principal
risks and uncertainties faced by the Company, the Board
has concluded that it has a reasonable expectation that
the Company will be able to continue in operation and
meet its liabilities as they fall due over the three-year
period of this assessment to 30 September 2028.
In assessing the Company’s future viability, the Board has
assumed that investors will wish to continue to have
exposure to the Company’s activities, in the form of a
closed ended entity, the Company’s long-term
performance is satisfactory, and the Company will
continue to have access to sufficient capital.
Future Strategy
The Board intends to maintain the Company’s strategy set
out in the Strategic Report, for the year ending 30
September 2026, as it is believed that this is in the best
interests of shareholders.
On behalf of the Board
Sarika Patel
Chair
8 December 2025
26 Aberdeen Equity Income Trust plc
Section 172 Statement
The Board regards strong corporate governance as
essential to the successful delivery of the Company’s
investment proposition. In carrying out their duties under
Section 172 of the Companies Act 2006, the Directors act
in good faith to promote the success of the Company for
the benefit of its members as a whole. In doing so, they
have regard to a range of factors including:
· The likely long-term consequences of decisions.
· The interests of the Company’s wider stakeholders.
· The impact of the Company’s operations on the
community and the environment; and
· The importance of maintaining a reputation for high
standards of business conduct.
The Board retains overall responsibility for key strategic
and governance matters, including:
· Setting and overseeing corporate strategy.
· Monitoring investment performance and the
performance of the Company’s service providers.
· Assessing the risk and internal controls.
· Determining marketing budgets; and
· Setting the investment objective, policy, and portfolio
limits, including gearing parameters.
Engagement with Stakeholders
The Board recognises the importance of identifying and
understanding the Company’s key stakeholders and
fostering appropriate engagement with them. To support
this, the Board has mapped its stakeholders and
considered the most effective forms of interaction.
Engagement is facilitated through a variety of channels,
including face-to-face meetings, video conferencing,
seminars, presentations, publications, and the
Company’s website.
The table below sets out examples of how the Board and the Company engage with their stakeholders.
Stakeholder How We Engage
Shareholders and
potential investors
The Board places great importance on clear and effective communication with both existing shareholders
and potential new investors. It welcomes shareholders views and is committed to acting fairly and
transparently in its dealings with all shareholders.
The Company engages with shareholders through a variety of channels, including:
· Annual General Meeting (AGM): A formal and informal forum for shareholders to meet the Directors and the
Manager, ask questions, and provide feedback. The Board encourages broad shareholder participation.
· Online AGM Webinar: Featuring presentations from the Chair and the Portfolio Manager, this live forum
allows shareholders and prospective investors to ask questions and engage directly.
· Annual Shareholder Lunch: An opportunity for the Board to speak directly with large shareholders and
gather their views in a more informal setting.
· Regular Meetings: The Manager and the Company Broker meet with current and prospective shareholders
to discuss performance and gather feedback, which is reported to the Board.
· Ongoing Communications: Shareholders receive regular updates via the Annual Report, Half Yearly Report,
monthly factsheets, Company announcements, and the Company website.
· Portfolio Manager Presentations: Delivered at external events and online webinars to engage with
shareholders and potential investors.
· Aberdeen Investor Relations Programme: The Company participates in a broad engagement programme
that includes industry press and social media outreach.
· Mailing List: Shareholders and potential investors can sign up via the QR code which is located on the inside
cover of this Annual Report.
· Direct Communication Channels: Shareholders may contact the Chair at the registered office or via e-mail
at Equity.Income@aberdeenplc.com. The Senior Independent Director is also available for concerns not
addressed through these channels. All correspondence is shared with the Chair immediately and with the
Board at each meeting.
Promotin
g
the Success of the Company
Aberdeen Equity Income Trust plc 27
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Stakeholder How We Engage
Manager (and
Investment
Manager)
The Company has appointed abrdn Fund Managers Limited (“AFML”) as its Manager and Alternative
Investment Fund Manager (AIFM). AFML has sub-delegated investment management responsibilities to
abrdn Investment Management Limited, referred to as the Investment Manager.
The Board meets with the Manager and Investment Manager on a quarterly basis and receive presentations
to support effective oversight of the Company’s strategy and performance.
The Portfolio Manager’s Review on pages 9 to 14 outlines the key investment decisions taken during
the year.
The Manager continues to manage the Company’s assets in accordance with the mandate provided by
shareholders, with oversight provided by the Board.
The Board regularly reviews the Company’s performance against its investment objective and holds an
annual strategy review meeting to ensure that the Company remains well-positioned to deliver long-term
value for stakeholders.
The Board receives presentations from the Manager at each Board meeting, covering market outlook,
portfolio activity, and performance.
The Remuneration & Management Engagement Committee formally reviews the performance of the
Manager at least annually. More details are provided on page 50.
Service Providers As an investment company, all of the Company’s operational services are outsourced to third-party
service providers.
The Board recognises the importance of developing and maintaining strong relationships with these
providers. This is achieved through a combination of direct engagement and regular communication via the
Manager.
Oversight of service providers is structured as follows:
· The Audit and Risk Committee monitor the internal control systems of the third-party providers and meet
with representatives at least annually.
· The Remuneration & Management Engagement Committee conducts an annual review of the performance,
terms, and conditions of the Company’s principal service providers to ensure they are meeting
expectations, fulfilling their responsibilities, and delivering value for money.
Investee
Companies
· The Board sets the Company’s investment objective and engages with the Portfolio Manager at each
meeting to discuss stock selection, asset allocation, and engagement with investee companies.
· Stewardship is a fundamental part of the Manager’s long-term, active investment approach. Engagement
with company management and boards is undertaken to protect and enhance long-term shareholder
value.
· The Board has delegated discretionary authority to the Manager to exercise voting rights on resolutions
proposed by the investee companies within the Company’s portfolio.
· The Manager provides quarterly reports to the Board on stewardship activities including voting decisions,
engagement outcomes, and ESG related developments.
· Through active engagement and voting, the Manager works with investee companies to improve
corporate standards, transparency, and accountability.
· The Board monitors investment decisions, including acquisitions and disposals, and regularly questions the
rationale behind both investment and voting decisions to ensure alignment with the Company’s strategy
and values.
28 Aberdeen Equity Income Trust plc
Stakeholder How We Engage
Debt Providers · On behalf of the Board, the Manager maintains a positive working relationship with The Royal Bank of
Scotland International Limited, London Branch, the provider of the Company’s loan facility.
· The Manager provides regular updates to the lender on business activity, compliance with loan covenants,
and any material developments relevant to the facility.
· The Board receives updates from the Manager and monitors the Company’s gearing levels and covenant
compliance as part of its regular oversight responsibilities.
Environment and
Community
· The Board and the Manager are committed to investing in a responsible manner. The Manager includes
Environmental, Social and Governance (“ESG”) considerations into the research and analysis as part of the
investment decision-making process.
· Through the Investment Manager, the Board encourages improvements in ESG practices and disclosures
among investee companies. Further details are provided on page 16.
Specific Examples of Stakeholder
Consideration during the Year
The importance of giving consideration to the Company’s
stakeholders is not a new requirement and is embedded in
the Board’s decision-making process.
Stakeholder interests are considered at every Board
meeting, and the Directors receive regular feedback on
the Investment Manager’s interactions with key
stakeholder groups.
During the year ended 30 September 2025, the Board was
particularly mindful of stakeholder considerations when
reviewing and approving the following matters:
Portfolio
The Portfolio Manager’s Review on pages 9 to 14 outlines
the key investment decisions made during the year. The
overall shape and structure of the investment portfolio is a
critical factor in delivering the Company’s stated
investment objective and is reviewed at every Board
Meeting. The Board also engages regularly with the
Portfolio Manager to discuss the portfolio performance in
detail, ensuring that investment decisions remain aligned
with the Company’s strategy and long-term goals.
Dividend
The Board has determined the payment of a fourth interim
dividend for the year of 5.9 pence per Ordinary share.
Following payment of this dividend, total dividends for the
year will amount to 23.0 pence per Ordinary share,
representing a modest increase compared to the
previous year.
In determining the dividend level, the Board carefully
balanced the objective of delivering an increase to
shareholders with the ongoing process of rebuilding the
Company’s revenue reserve, which was depleted during
the height of the Covid-19 pandemic.
Based on the current number of shares in issue, 0.29
pence per share will be transferred to revenue reserves
following payment of the fourth interim dividend.
Board Succession
As part of the Board’s ongoing succession planning and
following a search and selection process initiated during
the financial year, Alice Ryder was appointed as an
independent non-executive Director on 1 October 2025.
(Further details are provided in the Chair’s Statement on
page 7 and the Director’s Report on page 46.)
Caroline Hitch, who joined the Board on 1 January 2017,
will retire from the Board at the Annual General Meeting.
The Board is committed to ensuring that new
appointments achieve a balanced mix of
· Skills and experience.
· Gender and ethnicity; and
· Independence and industry knowledge.
The Board believes that shareholders’ interests are best
served by ensuring a smooth and orderly refreshment
process, which supports continuity and maintains the
Board’s open and collegiate style.
Promotin
g
the Success of the Company
Continued
Aberdeen Equity Income Trust plc 29
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Promoting the Company
On 28 January 2025, the Board hosted an online investor
presentation where the Portfolio Manager provided an
update on the portfolio. The Chair and Portfolio Manager
also answered questions from the audience.
Over 250 investors signed up to the event demonstrating
strong interest and engagement.
On 28 August 2025, the Company hosted a meeting
for large shareholders, attended by members of the
Board. The Portfolio Manager provided a detailed
portfolio update.
Both events provided valuable opportunities for the
Directors to hear shareholder views first-hand, reinforcing
the Board’s commitment to transparent and open
communication.
During the year, the Portfolio Manager undertook a range
of activities to promote the Company and its investment
strategy to a broad audience. These included
· Podcasts discussing market outlook and portfolio
positioning.
· Webinars featuring live Q&A sessions.
· Panel sessions at industry events.
· Press releases highlighting investment insights; and
· Retail investor events aimed at increasing awareness
and engagement.
These activities support the Company’s commitment to
transparency and help ensure that both existing and
potential investors are well-informed about the
Company’s strategy and performance.
Pre-AGM Online Investor Event
The Board will host an Online Investor Presentation, which
will be held at 11:00am on Tuesday, 27 January 2026.
The event will feature:
· Presentations from the Chair and the Portfolio Manager;
and
· A live Q&A session with both the Chair and the Portfolio
Manager.
The presentation is scheduled ahead of the Annual
General Meeting, allowing shareholders time to submit
their proxy votes after the event but prior to the AGM,
should they wish to do so.
Registration details for the online event are available on
the Company’s website at aberdeenequityincome.com.
Issuance and Buyback of Shares
During the year, the Company issued 1,005,000 Ordinary
shares from treasury to meet investor demand. These
shares were issued at a premium to the prevailing net
asset value.
The Company did not undertake any share buybacks
during the year.
The Board believes that the selective use of share
issuance and buybacks from treasury, when market
conditions warrant, is in the best interests of all
shareholders. This approach helps manage supply and
demand, supports the share price, and protects long-term
shareholder value.
Online Annual and Half Yearly Report
During the year, the Company undertook a successful
initiative with the Registrar to encourage shareholders to
receive their annual and half yearly reports online,
supporting a more environmentally sustainable approach
to reporting. As a result of this initiative, the number of
printed and posted reports has been significantly reduced.
Shareholders can elect to receive online communications
by e-mailing the Company Secretary
CoSec@aberdeenplc.com or calling Computershare on
0370 707 1150
Company Name Change
Following the name change of Aberdeen Group plc, the
Board agreed to update the Company’s name to
Aberdeen Equity Income Trust plc. The Board believes that
aligning the Company’s name with the wider Aberdeen
brand enhances recognition and reinforces its association
with the broader Aberdeen Investor Relations Programme
from which the Company continues to benefit. The name
change supports clear brand identity and strengthens
marketing and communication efforts with both existing
and prospective investors.
On behalf of the Board
Sarika Patel
Chair
8 December 2025
30 Aberdeen Equity Income Trust plc
Highlights
30 September 2025 30 September 2024 % change
Capital
Net asset value per Ordinary share 377.8p 331.5p 14.0%
Ordinary share price 378.0p 321.5p 17.6%
Reference Index capital return
C
5,061.7 4,511.0 12.2%
Premium/(discount) of Ordinary share price to net asset
value
A
0.0% (3.0)%
Total assets (as defined on page 101) £206.8m £180.9m 14.3%
Shareholders’ funds £184.3m £158.4m 16.4%
Gearing
Net gearing
A
11.2% 13.0%
Earnings and Dividends
Revenue return per Ordinary share 23.43p 23.05p 1.6%
Total dividends for the year 23.00p 22.90p 0.4%
Dividend yield
A
6.1% 7.1%
Expenses
Ongoing charges ratio
AB
0.84% 0.86%
A
Considered to be an Alternative Performance Measure. Further details can be found on pages 91 and 92.
B
Calculated in accordance with AIC guidance issued in October 2020 to include the Company’s share of costs of holdings in investment companies on a look-through basis.
C
FTSE All-Share Index
Performance (total return)
1 year 3 years 5 years 10 years
30 September 2025 % % % %
Net asset value
A
21.8 40.3 81.4 47.8
Share price
A
25.7 54.5 109.6 51.7
Reference Index
B
16.2 50.0 84.1 118.3
A
Considered to be an Alternative Performance Measure. Further details can be found on page 93.
B
FTSE All-Share Index.
Source: Aberdeen/Morningstar/FactSet
Results
Aberdeen Equity Income Trust plc 31
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Annual total returns of Aberdeen Equity Income Trust NAV and FTSE All-Share
Index September 2015– 2025
-30%
-20%
-10%
0%
10%
20%
30%
40%
Sep 15 Sep 16 Sep 17 Sep 18 Sep 19 Sep 20 Sep 21 Sep 22 Sep 23 Sep 24 Sep 25
Aberdeen Equity Income Trust NAV Total Return FTSE All-Share Index Total Return
Aberdeen Equity Income Trust Premium/(Discount) relative to the UK Equity Income
unweighted sector average since 30 September 2020
-15
-10
-5
0
5
10
30/09/2020 30/09/2021 30/09/2022 30/09/2023 30/09/2024 30/09/2025
Aberdeen Equity Income Trust PLC Unweighted Sector Average
32 Aberdeen Equity Income Trust plc
Annual Dividend Growth versus Retail Price Index since 2015
0%
2%
4%
6%
8%
10%
12%
14%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Dividend growth RPI
Ten Year Financial Record
Revenue
available Net Equity
Gross for Ordinary Revenue Ordinary Net asset Share Premium/ Ongoing gearing / shareholders’ Revenue
Year ended revenue shareholders return dividends value
A
price (discount)
AB
charges
BC
(cash)
B
funds reserves
D
30 September £’000 £’000 p p p p % % % £m (£m)
2016 7,084 6,214 17.92 15.40 431.5 412.4 (4.4) 0.96 7.5 199.7 8.15
2017 7,957 7,044 19.23 17.10 478.6
E
459.6 (4.8) 0.87 9.9 235.3
E
9.41
2018 11,893 10,846 22.06 19.20 485.0 473.0 (2.5) 0.87 12.1 238.4 10.82
2019 11,791 10,687 21.74 20.50 411.8 381.5 (7.4) 0.91 13.7 201.5 11.58
2020 8,730 7,614 15.61 20.60 288.0 252.0 (12.5) 0.92 13.3 139.2 8.75
2021 10,642 9,693 20.06 21.20 380.8 349.0 (8.4) 0.93 13.5 182.9 8.49
2022 13,517 12,244 25.51 22.70 331.8 302.5 (8.8) 0.91 15.0 157.5 10.27
2023 12,598 11,109 23.43 22.80 314.6 314.0 (0.2) 0.94 11.3 149.9 10.18
2024 12,735 11,010 23.05 22.90 331.5 321.5 (3.0) 0.86 13.0 158.4 10.30
2025 12,499 11,242 23.43 23.00 377.8 378.0 0.0 0.84 11.2 184.3 10.56
A
Diluted for the effect of Subscription shares in issue for the year ended 30 September 2016.
B
Considered to be an Alternative Performance Measure. Further details can be found on pages 91 and 92.
C
Calculated in accordance with AIC guidance issued in October 2020 to include the Company’s share of costs of holdings in investment companies on a look-through basis where
applicable. The figure for 30 September 2020 was restated in accordance with this guidance.
D
Revenue reserves are reported prior to paying the final dividend or fourth interim dividend in each year. For 2017 only, reserves are reported after having deducted the third
interim dividend.
E
The 2017 Net Asset Value is calculated under Financial Reporting Standards, but includes an adjustment for the third interim dividend which had been declared, but not paid, at
the year end.
Results
Continued
Aberdeen Equity Income Trust plc 33
Portfolio
The portfolio is invested on an index-
agnostic basis. The process is based on
bottom-up stock picking approach where
sector allocations are a function of the
sum of the stock selection decisions,
constrained only by appropriate risk
control parameters.
34 Aberdeen Equity Income Trust plc
As at 30 September 2025
HSBC
British American Tobacco
HSBC is a banking and financial services
company. The Company’s segments
include Wealth and Personal Banking,
Commercial Banking and Global
Banking and Markets.
British American Tobacco sells
combustible tobacco products in more
than 50 countries around the world, as
well as a growing portfolio of non-
combustible products such as vapour
and tobacco heating products.
BP
Galliford Try
BP is an oil and petrochemicals
company. The Company explores for
and produces oil and natural gas,
refines, markets, and supplies
petroleum products, generates
renewable energy, and manufactures
and markets chemicals.
Galliford Try is a leading UK
construction business focused on three
areas – Building, Infrastructure and
Specialist Services.
Petershill Partners
Imperial Brands
Petershill Partners is an investment
company that owns stakes in around 20
private markets partner firms, providing
UK investors with access to this fast-
growing and profitable sector.
Imperial Brands is a global consumer
goods company that manufactures,
markets, and distributes tobacco
products across approximately
120 markets.
Rio Tinto
M&G
Rio Tinto is a leading global mining group
that focuses on finding, mining, and
processing mineral resources, with a
focus on iron ore and aluminium.
M&G is a savings and investment
business serving almost five million retail
clients and more than 800 institutional
clients. M&G uses its investment
management operations to design
investment solutions for its With-Profits
funds, as well as third party clients.
Chesnara
Balfour Beatty
Chesnara is a life insurance company
founded in 2004, specialising in the
consolidation of closed life insurance
books in the UK, the Netherlands and
Sweden. Chesnara’s strategy involves
buying businesses that are in run-off, at
discounts to their intrinsic value, then
managing them efficiently to create
value for the shareholders.
Balfour Beatty is an international
engineering and construction group
that operates across 3 divisions –
construction services, support services,
and infrastructure investments. Balfour
Beatty works on a range of project types
including transport, utilities, schools,
hospitals, and defence.
© owned by each of the corporate entities in the respective logos
Ten Lar
g
est Investments
Aberdeen Equity Income Trust plc 35
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
As at 30 September 2025
Valuation as at Valuation as at
30 September 2025 Weight 30 September 2024
Stock Key Sector £’000 % £’000
HSBC Banks 10,620 5.2 4,347
British American Tobacco Tobacco 8,745 4.3 6,900
BP Oil, Gas and Coal 8,402 4.1 6,515
Galliford Try Construction and Materials 8,077 3.9 3,823
Petershill Partners Investment Banking and Brokerage Services 7,528 3.7 5,125
Imperial Brands Tobacco 7,286 3.6 8,462
Rio Tinto Industrial Metals and Mining 7,214 3.5 6,136
M&G Investment Banking and Brokerage Services 6,130 3.0 5,022
Chesnara Life Insurance 5,764 2.8 3,490
Balfour Beatty Construction and Materials 5,757 2.8 –
Top ten investments 75,523 36.9
OSB Group Finance and Credit Services 5,519 2.7 4,128
TP ICAP Investment Banking and Brokerage Services 5,262 2.6 3,975
Ithaca Energy Oil, Gas and Coal 5,176 2.5 2,947
Legal & General Life Insurance 4,989 2.4 5,551
Barclays Banks 4,689 2.3 4,430
International Personal Finance Finance and Credit Services 4,632 2.3 2,801
Johnson Matthey Chemicals 4,517 2.2 2,210
Drax Electricity 4,434 2.2 2,986
Conduit Holdings Non-life Insurance 3,993 1.9 5,778
Sabre Insurance Non-life Insurance 3,844 1.9 2,194
Top twenty investments 122,578 59.9
Shell Oil, Gas and Coal 3,681 1.8 4,056
Mony Software and Computer Services 3,631 1.8 –
CMC Markets Investment Banking and Brokerage Services 3,603 1.8 4,852
Diversified Energy Oil, Gas and Coal 3,447 1.7 2,811
easyJet Travel and Leisure 3,340 1.6 –
Close Brothers Banks 3,332 1.6 2,448
Endeavour Mining Precious Metals and Mining 3,258 1.6 –
Coats General Industrials 3,243 1.6 –
National Grid Gas, Water and Multi-utilities 3,232 1.5 7,376
DCC Industrial Support Services 3,181 1.5 –
Top thirty investments 156,526 76.4
Investment Portfolio
36 Aberdeen Equity Income Trust plc
As at 30 September 2025
Valuation as at Valuation as at
30 September 2025 Weight 30 September 2024
Stock Key Sector £’000 % £’000
Barratt Redrow Household Goods and Home Construction 3,171 1.6 2,380
Quilter Investment Banking and Brokerage Services 3,130 1.5 2,940
DFS Furniture Retailers 3,091 1.5 2,248
Pennon Gas, Water and Multi-utilities 2,857 1.4 –
Inchcape Industrial Support Services 2,805 1.4 2,021
Victrex Chemicals 2,646 1.3 –
Ashmore Investment Banking and Brokerage Services 2,576 1.3 1,338
Real Estate Investors Real Estate Investment Trusts 2,319 1.1 2,394
Energean Oil, Gas and Coal 2,182 1.1 2,375
Standard Chartered Banks 2,104 1.0 1,922
Top forty investments 183,407 89.6
BAE Systems Aerospace and Defence 2,051 1.0 2,702
Phoenix Life Insurance 1,963 1.0 1,705
Harbour Energy Oil, Gas and Coal 1,915 0.9 2,459
Lloyds Banking Group Banks 1,832 0.9 –
Speedy Hire Industrial Transportation 1,767 0.9 2,388
Segro Real Estate Investment Trusts 1,715 0.8 –
NatWest Group Banks 1,705 0.8 2,450
LondonMetric Real Estate Investment Trusts 1,678 0.8 1,889
Berkeley Group Household Goods and Home Construction 1,645 0.8 6,812
Greggs Personal Care Drug and Grocery Stores 1,343 0.7 –
Top fifty investments 201,021 98.2
Bridgepoint Group Investment Banking and Brokerage Services 1,219 0.6 –
Sirius Real Estate Real Estate Investment Trusts 1,165 0.6 1,638
CLS Holdings Real Estate Investment and Services 901 0.4 1,391
Litigation Capital Investment Banking and Brokerage Services 493 0.2 1,844
Total Portfolio 204,799 100.0
All investments are equity investments.
Investment Portfolio
Continued
Aberdeen Equity Income Trust plc 37
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
As at 30 September 2025
41.5
13.1
12.1
8.6
8.6
5.5
5.1
3.7
1.8
Portfolio Weightings %
Financials
Industrials
Energy
Basic Materials
Consumer Staples
Consumer Discretionary
Utilities
Real Estate
Technology
As at 30 September 2024
37.9
13.4
10.4
8.9
8.7
7.5
6.8
6.4
Portfolio Weightings %
Financials
Energy
Basic Materials
Utilities
Consumer Staples
Consumer Discretionary
Industrials
Real Estate
Sector Distribution
38 Aberdeen Equity Income Trust plc
Johnson Matthey
Johnson Matthey is a leading chemicals business with a
strong heritage in advanced materials and catalysis. Its
core businesses are Clean Air (emission control catalysts)
and Platinum Group Metal Services (refining and
processing metals). It also has a smaller division called
Hydrogen Technologies (design and manufacture of
components used in fuel cells) and it recently agreed to
divest of its Catalyst Technologies (sustainable aviation
fuel) business to Honeywell. We initially purchased a
holding in June 2024 at 1764 pence when we became
convinced in the company’s commitment to acting
decisively to drive shareholder value. We subsequently
added to our position at a much lower-level of 1237 pence
in April 2025 when the stock was trading at only 6x EPS
due to negative sentiment around global auto demand.
With the share price now trading around 2000 pence, we
have generated attractive capital growth, in addition to
receiving 132 pence of dividends/share over the 18-
month period in which the portfolio has held the stock.
Johnson Matthey describes its purpose as to “catalyse the
net zero transition.” The company plays a pivotal role in
enabling cleaner air, decarbonising industry and
supporting the hydrogen economy. In its annual report,
the Company acknowledges that it is not enough to be
purpose-led, and it recognises that it also needs to be
performance-driven. This is a reference to a long period of
drift in its operating profits, in part due to heavy investment
in new technologies with mixed results.
In response to shareholder pressure, under the leadership
of CEO Liam Condon, Johnson Matthey undertook a
significant strategic transformation aimed at improving
capital discipline, enhancing cash returns, and focusing on
core strengths. A key element of the strategic review was
the decision to rationalise the portfolio, resulting in the sale
of its Catalyst Technologies business to Honeywell for £1.8
billion. This news caused the shares to surge by 30% as the
market noted that the proceeds of £1.8 billion represented
nearly 80% of the market cap even though this division
only generated around 20% of the earnings. Honeywell
was willing to pay a very high valuation multiple, in effect
allowing Johnson Matthey shareholders to be paid up
front for the future growth potential of this division. This
capital will be returned to shareholders in the form of £700
million special dividend (treated as capital) and another
£700 million+ to be returned over two years in the form of
buybacks. This move was welcomed by investors, not only
because the valuation appears attractive for the seller, but
also because it is a pivotal step in unlocking value and
sharpening Johnson Matthey’s strategic focus.
Investment Case Studies
Aberdeen Equity Income Trust plc 39
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Another key part of the strategic review was the decision
to restructure the Hydrogen Technologies division,
reflecting their view that the rapid boom, followed by
slowdown in the hydrogen sector was causing industry-
wide challenges. After investing over £385 million in its
hydrogen business, Johnson Matthey is now scaling back
growth capital expenditure in this segment, with capex
limited to maintenance levels (capped at £5 million
annually) in this division to accelerate a shift to operating
profit break-even. Longer term, Johnson Matthey is
exploring options to de-risk or potentially exit this business.
Johnson Matthey’s focus on improved capital allocation is
further supported by changes to the executive
remuneration scheme which place greater emphasis on
cash generation. The Company has committed to
increasing annual cash returns from £130 million in FY26 to
£200 million from FY27 onwards, supported by improved
free cash flow and reduced capex. We view the outlook
for Johnson Matthey as solid despite the challenging
macroeconomic environment. The two businesses that
are now Johnson Matthey’s core focus – Clean Air and
Platinum Group Metal Services – are already seeing
improving operating margins, with some ambitious targets
pointing to growing profitability in the next 3 years.
Johnson Matthey has strong market positions in these
businesses. While there is some concern about declining
catalytic converter demand for traditional combustion
engine cars, there are tailwinds for demand from growth
areas such as hybrid cars and heavy-duty diesel trucks,
alongside the helpful backdrop of tightening emissions
standards globally.
Johnson Matthey is an example of a stock that our
process identified as offering good risk/reward, as its low
valuation failed to price in the management team’s
decisive strategic action. The outlook has greatly
improved thanks to the pivot towards its core strengths,
backed by a disciplined capital allocation framework and
a commitment to enhancing cash generation, supporting
attractive dividends and share buybacks.
40 Aberdeen Equity Income Trust plc
Petershill Partners
We featured Petershill Partners as a case study of our
investment process in our interim results. On 25
th
September 2025, Petershill became the third AEI holding
this financial year to receive a bid. The bid came from its
parent company, Goldman Sachs, at a 34% premium to its
closing price. This had a very positive impact on the
portfolio’s performance, as this was one of the ten largest
holdings at over 3% of the portfolio.
We executed strongly, adding to the existing holding in Q1
2023 when the shares fell to a compelling valuation of
around 0.5x NAV due to short term macro worries. In
addition to ordinary and special dividends of around 73
pence per share paid to shareholders since it was first
listed (representing around 20 percentage points of
dividends), our decision to add to the holding at an
opportune time helped ensure that this holding added to
the portfolio’s performance, despite a difficult start
immediately after the IPO in 2021.
We see Petershill as a good example of our investment
process playing out to the benefit of shareholders. We
looked where other investors were not looking, identifying
a Private Markets business with strong growth and income
potential. The esoteric nature of the stock had made this a
connoisseur’s stock, resulting in a wide gap between the
share price and the intrinsic value.
The management team had clearly become frustrated
that the listed market did not bother to get to grips with
the investment case. Petershill was successful in its
strategy, raising funds to invest in their partner private
markets firms, managing these businesses efficiently and
then selling out at a premium to their carrying value. When
they sold their stakes in these firms, this had been at a
premium to NAV, and we received the cash back in the
form of special dividends. Yet this was far from a pure
income story, the compound annual growth rate of their
Assets Under Management was +22% since 2018,
outpacing the wider industry. It is surprising that the
growth rate was not recognised by the market, but this is
where the opportunity lay for AEI, as active investors, to
add to the existing holding.
Looking ahead, we expect this theme to recur given the
large number of shares with similar characteristics of
being mispriced. Having been on the receiving end of
three bids this financial year and seven bids in the past two
financial years, we are confident that our investment
process is proving its ability to identify mispriced
businesses with the potential for M&A to become
a catalyst.
Investment Case Studies
Continued
Aberdeen Equity Income Trust plc 41
Governance
The Board of Directors of the Company is a
highly experienced group of individuals with
deep insights into investment trusts and the
financial services industry. The Board works
closely with the Manager to deliver
shareholder value.
The Board is responsible for stewardship,
including overall strategy, investment
policy, borrowings, dividends, corporate
governance procedures, and risk
management.
42 Aberdeen Equity Income Trust plc
Sarika Patel
Independent Non-Executive Chair
Appointment
Appointed a Director on 1 November 2019 and as Chair
on 2 February 2023.
Experience:
Sarika Patel is a business leader with nearly 30 years'
experience. She is a Chartered Accountant and a
Chartered Marketer. Sarika is a non-executive director of
SDCL Energy Efficiency Income Trust plc, Templeton
Emerging Markets Investment Trust plc and Smithson
Investment Trust plc, where she is also Chair of the
Audit Committee.
Previously a partner at Zeus Caps, Sarika has been on a
host of public and private sector boards. She is currently
Chair of Action for Children, one of the UK's leading
charities for children.
Committee membership:
Audit and Risk Committee and Remuneration &
Management Engagement Committee.
Contribution:
The Board has reviewed the contribution of Sarika Patel in
light of her proposed re-election at the Annual General
Meeting and has concluded that she is a strong and
effective Chair. She is in full command of the governance
and technical issues and adept in bringing the Directors
together to develop a Board view.
Caroline Hitch
Senior Independent Non-Executive Director
Appointment
Appointed a Director on 1 January 2017 and Senior
Independent Director on 20 February 2024.
Experience:
Caroline Hitch is also Chair of CQS New City High Yield
Fund Ltd. Her career in financial services was mainly with
the HSBC Group and most recently she was Head of
Wealth Portfolio Management at HSBC’s asset
management arm with investment responsibility for its
flagship retail multi asset funds. She has worked in London,
Jersey, Monaco, and Hong Kong.
Committee membership:
Audit and Risk Committee and Remuneration &
Management Engagement Committee.
Contribution:
As set out in the Chair’s Statement, Caroline Hitch is due to
retire from the Board at the AGM on 17 February 2026.
The Board would like to thank Caroline for her
commitment to the Company and the Board during her
nine-year tenure. Caroline has contributed significantly to
Board discussions during this time.
Board of Directors
Aberdeen Equity Income Trust plc 43
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Mark Little
Independent Non-Executive Director and Chair of the
Audit and Risk Committee
Appointment
Appointed a Director on 1 August 2022 and as Chair of the
Audit and Risk Committee on 2 February 2023.
Experience:
Mark Little is a non-executive director and also chairs the
audit committees of BlackRock Smaller Companies Trust
plc, Majedie Investments Plc and Fidelity Emerging
Markets Limited.
Mark was previously Investment Director at Seven
Investment Management, and a non-executive director
(and audit committee chairman) of Sanditon Investment
Trust plc and Securities Trust of Scotland plc. He began his
career in the investment industry as a fund manager with
Scottish Widows Investment Management after qualifying
in 1991 as a Chartered Accountant with Price
Waterhouse. He subsequently worked as Global Head of
Automotive Research for Deutsche Bank and Managing
Director of Barclays Wealth (Scotland and Northern
Ireland), a position that he held for eight years until 2013.
Committee membership:
Audit and Risk Committee (Chair) and Remuneration &
Management Engagement Committee.
Contribution:
The Board has reviewed the contribution of Mark Little in
light of his proposed re-election at the Annual General
Meeting. The Board has concluded that he is an effective
Chair of the Audit and Risk Committee Chair and brings
investment trust experience and investment insights into
all Board discussions.
Alice Ryder
Independent Non-Executive Director
Appointment
Appointed a Director on 1 October 2025.
Experience:
Alice Ryder is a Senior Independent Director of J P Morgan
Small Cap Growth & Income plc and Chair of the
Remuneration Committee.
Alice is also a Partner of Stanhope Capital LLP and Head of
Stanhope Consulting.
Alice was previously Chair of BlackRock American Income
Trust before retiring in April 2025. Alice is also a member of
the Investment Committee of the Royal Academy Trust.
Committee membership:
Audit and Risk Committee and Remuneration &
Management Engagement Committee.
Contribution:
N/A as Alice was appointed to the Board on 1 October
2025.
44 Aberdeen Equity Income Trust plc
Nick Timberlake
Independent Non-Executive Director and Chair of the
Remuneration & Management Engagement Committee
Appointment
Appointed a Director on 1 August 2023 and as Chair of the
Remuneration & Management Engagement Committee
on 20 February 2024.
Experience:
Nick Timberlake is a non-executive director of India
Capital Growth Fund and CT Automative plc.
Nick has over 30 years’ experience in the asset
management industry as a portfolio manager. He was
with HSBC Global Asset Management between 2005 and
2020, initially as Global Head of Emerging Markets Equities
and then Head of Equities. Previously he was a Director of
F&C Investment Management and has spent the last 30
years investing in equities. He is a partner in Panorama
Property Investments LLP and is a member of the CFA
Institute and CFA Society of the UK.
Committee membership:
Audit and Risk Committee and Remuneration &
Management Engagement Committee (Chair).
Contribution:
The Board has reviewed the contribution of Nick
Timberlake in light of his proposed re-election at the
Annual General Meeting. The Board has concluded that
he is an effective Chair of the Remuneration &
Management Engagement Committee, brings investment
experience to the Board and contributes effectively to
Board discussions.
Board of Directors
Continued
Aberdeen Equity Income Trust plc 45
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Directors present their report and the audited
financial statements of the Company for the year ended
30 September 2025.
Results and Dividends
The financial statements for the year ended 30
September 2025 are contained on pages 73 to 90. Interim
dividends of 5.7 pence per share were paid in March, June,
and September 2025. The Board has declared that a
fourth interim dividend for the year to 30 September 2025
of 5.9 pence per share is payable on 16 January 2026 to
shareholders on the register on 12 December 2025. The
ex-dividend date is 11 December 2025. This takes the total
dividend for the year to 23.0 pence per share (2024: 22.9
pence), representing the 25
th
consecutive annual dividend
increase declared by the Company.
Principal Activity and Status
The Company is registered as a public limited company in
England and Wales under company number 2648152.
The Company is an investment company within the
meaning of Section 833 of the Companies Act 2006,
carries on business as an investment trust and is a
member of the Association of Investment Companies.
The Company has applied for and has been accepted as
an investment trust under Sections 1158 and 1159 of the
Corporation Tax Act 2010 and Part 2 Chapter 1 of
Statutory Instrument 2011/2999. This approval relates to
accounting periods commencing on or after 1 October
2012. The Directors are of the opinion that the Company
has conducted its affairs so as to be able to retain
such approval.
The Company intends to manage its affairs so that its
Ordinary shares continue to be a qualifying investment for
inclusion in the stocks and shares component of an
Individual Savings Account.
Capital Structure and Issuance
The Company’s capital structure is summarised in note 12
to the financial statements.
At 30 September 2025, there were 48,786,522 fully paid
Ordinary shares of 25 pence each (2024: 47,781,522
Ordinary shares of 25 pence each) in issue with a further
392,245 Ordinary shares of 25 pence each held in treasury
(2024: 1,397,245 Ordinary shares of 25 pence each held
in treasury).
During the year, the Company issued 1,005,000 Ordinary
shares of 25 pence each from treasury (2024: 135,000
Ordinary shares of 25 pence each were issued from
treasury).
The Company did not buy back any shares in the year
ended 30 September 2025 (2024: nil).
Since the year end the Company has issued a further
135,000 Ordinary shares of 25 pence each from Treasury.
Voting Rights
Ordinary shareholders are entitled to vote on all
resolutions which are proposed at general meetings of the
Company. Issued and fully paid-up Ordinary shares carry
a right to receive dividends.
Management Agreement
The Company has appointed abrdn Fund Managers
Limited (“AFML”), a wholly owned subsidiary of Aberdeen
Group plc, as its alternative investment fund manager (the
“Manager”). AFML has been appointed to provide
investment management, risk management,
administration and company secretarial services, and
promotional activities to the Company. The Company's
portfolio is managed by abrdn Investment Management
Limited (the “Investment Manager”) by way of a group
delegation agreement in place between AFML and the
Investment Manager.
In addition, AFML has sub-delegated administrative and
secretarial services to abrdn Holdings Limited.
With effect from 1 October 2023, the Company’s
management fee is calculated as 0.55% of net assets
(previously the Company’s management fee was
calculated as 0.65% per annum of net assets up to
£175 million and at a rate of 0.55% of net assets above
this threshold).
The Manager also receives a separate fee for the
provision of promotional activities to the Company.
Further details of the fees payable to the Manager are
shown in notes 3 and 4 to the financial statements.
The management agreement is terminable on not less
than six months’ notice. In the event of termination by the
Company on less than the agreed notice period,
compensation is payable to the Manager in lieu of the
unexpired notice period.
Directors’ Report
46 Aberdeen Equity Income Trust plc
External Agencies
The Board has contractually delegated to external
agencies, including the Manager and other service
providers, certain services including: the management of
the investment portfolio, the day-to-day accounting and
company secretarial requirements, the depositary
services (which include the custody and safeguarding of
the Company’s assets) and the share registration services.
Each of these contracts was entered into after full and
proper consideration by the Board of the quality and cost
of services offered in so far as they relate to the affairs of
the Company. In addition, ad hoc reports and information
are supplied to the Board as requested.
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 at 30 September 2025.
Shareholder
Number of Ordinary
shares % held
Hargreaves Lansdown 12,775,415 26.19
Interactive Investor 12,645,737 25.92
AJ Bell 3,535,947 7.25
HSDL 2,968,796 6.09
Charles Stanley 2,736,196 5.61
The Company has not been notified of any changes to
these holdings as at the date of this Report.
Directors
Biographies of the Directors of the Company are shown
on pages 42 to 44.
Sarika Patel is the Chair, Caroline Hitch is the Senior
Independent Director, Mark Little is Chair of the Audit and
Risk Committee and Nick Timberlake is Chair of the
Remuneration & Management Engagement Committee.
Alice Ryder was appointed as an Independent Non-
Executive Director on 1 October 2025 and will stand for
election at the Annual General Meeting. The Board
engaged Fletcher Jones, an independent search
consultant, to assist with the appointment process.
Under the terms of the Company’s Articles of Association,
Directors are subject to election at the first Annual General
Meeting after their appointment and are required to retire
and be subject to re-election at least every three years
thereafter. However, the Board has decided that all
directors will retire annually. Accordingly, Sarika Patel,
Mark Little and Nick Timberlake will retire at the Annual
General Meeting and being eligible, offer themselves for
re-election.
Having served as a Director for nine years, Caroline Hitch
will retire from the Board at the conclusion of the Annual
General Meeting.
The Roles of the Chair and Senior
Independent Director
The Chair 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 Chair facilitates
effective contribution from each Director and encourages
active engagement. In conjunction with the Company
Secretary, the Chair ensures that Directors receive
accurate, timely and clear information to assist them with
effective decision-making. The Chair acts upon the results
of the Board evaluation process by recognising strengths
and addressing any weaknesses and also ensures that the
Board engages with major shareholders and that all
Directors understand shareholder views.
The Senior Independent Director acts as a sounding board
for the Chair and acts as an intermediary for other
Directors, when necessary. Working closely with the
Remuneration & Management Engagement Committee,
the Senior Independent Director takes responsibility for an
orderly succession process for the Chair and leads the
annual appraisal of the Chair’s performance. The Senior
Independent Director is also available to shareholders to
discuss any concerns they may have.
Directors’ Report
Continued
Aberdeen Equity Income Trust plc 47
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Board and Committee Meeting Attendance
The Directors attended scheduled Board and Committee
meetings during the year ended 30 September 2025 as
follows (with their eligibility to attend the relevant
meetings in brackets):
Board and
Strategy
Meetings
Audit and
Risk
Committee
Meetings
Remuneration
& Management
Engagement
Committee
Meetings
Sarika Patel 5 (5) 2 (2) 1 (1)
Caroline Hitch 5 (5) 2 (2) 1 (1)
Mark Little
5 (5) 2 (2) 1 (1)
Nick Timberlake
5 (5) 2 (2) 1 (1)
The Board meets more frequently when business needs
require and met an additional ten times during the
financial year. Individual directors also had meetings with
the Manager and the Company Stockbroker.
Board Evaluation
The Board believes that all the Directors remain
independent of the Manager and free from any
relationship which could materially interfere with the
exercise of their judgement on issues of strategy,
performance, resources, and standards of conduct.
The biographies of each of the Directors shown on pages
42 to 44, set out their range of skills and experience and
their contribution to the Board during the year. The Board
believes that, collectively, it has the requisite high level and
range of business, investment, and financial experience to
enable it to provide clear and effective leadership and
proper governance of the Company.
During the year, the Board appointed Cyclico to facilitate
the annual Board evaluation process, which included the
Board, its Committees, the Chair, and individual directors.
Following formal performance evaluations, it was
concluded that each Director’s performance continues to
be effective and demonstrates commitment to the role,
and their individual performances contribute to the long-
term sustainable success of the Company. The Board
therefore recommends the re-election of each eligible
Director at the Annual General Meeting.
Board’s Policy on Tenure
In normal circumstances, it is the Board’s expectation that
Directors will not serve beyond the Annual General
Meeting following the ninth anniversary of their
appointment. However, the Board takes the view that
independence of individual Directors is not necessarily
compromised by length of tenure on the Board and that
continuity and experience can add significantly to the
Board’s strength. The Board believes that
recommendation for re-election should be on an
individual basis following a rigorous review which assesses
the contribution made by the Director concerned but also
taking into account the need for regular refreshment
and diversity.
Board Diversity Policy
The Board recognises the importance of having a range
of skilled and 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. The Board will not
display any bias for age, gender, race, sexual orientation,
socio-economic background, 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 in the tables below.
The Board has resolved that the Company’s year-end
date is the most appropriate date for disclosure purposes.
As a consequence, the tables do not reflect the
appointment of Alice Ryder on 1 October 2025.
The following information has been provided by each
Director through the completion of questionnaires.
48 Aberdeen Equity Income Trust plc
Board Gender as at 30 September 2025
Number of Board
members
Percentage of
the Board
Number of
senior positions
on the Board
Number in
executive
management
Percentage
of executive
management
Men 2 50%
n/a
(note 3)
n/a
(note 3)
n/a
(note 3)
Women 2
50%
(note 1)
Board Ethnic Background as at 30 September 2025
Number of Board
members
Percentage of
the Board
Number of
senior positions
on the Board
Number in
executive
management
Percentage
of executive
management
White British or other White
(including minority-white groups)
3 75%
n/a
(note 3)
n/a
(note 3)
n/a
(note 3)
Asian
1
(note 2)
25%
Notes:
1. Meets the target that at least 40% of Directors are women as set out in UKLR6.6.6(9)(a)(i)
2. Meets the target that at least one individual on the Board is from a minority ethnic background as set out in UKLR6.6.6(9)(a)(iii)
3. This column is not applicable as the Company is externally managed and does not have any Executive staff. Specifically, it does not have a CEO or CFO. The Company considers
that the roles of Chairman of the Board, Senior Independent Director and Chairs of the Audit and Risk Committee and Remuneration & Management Engagement Committee
are senior Board positions and, accordingly, that the Company meets the requirements that at least one of the senior Board positions is held by a woman as set out in
LR.6.6.6(9)(a)(ii)
4. Neither table accounts for Alice Ryder, who was appointed as a Non-Executive Director to the Board on 1 October 2025.
Directors’ Report
Continued
Aberdeen Equity Income Trust plc 49
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Directors’ and Officers’ Liability Insurance
The Company’s Articles of Association provide for each of
the Directors to be indemnified out of the assets of the
Company against any liabilities incurred by them as a
Director of the Company in defending proceedings, or in
connection with any application to the Court in which
relief is granted. Directors’ and Officers’ liability insurance
cover has been maintained throughout the year at the
expense of the Company.
Management of Conflicts of Interest
Conflicts of Interest Policy
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, each Director prepares a list of 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.
Service contracts with the Company
No Director has a service contract with the Company
although all Directors are issued with letters of
appointment. There were no contracts during, or at the
end of the year, in which any Director was interested.
Bribery and corruption
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 Manager
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 Manager’s
anti-bribery and corruption policies are available on
its website.
Tax evasion
In relation to the corporate offence of failing to prevent tax
evasion, it is the Company’s policy to conduct all business
in an honest and ethical manner. The Company takes a
zero-tolerance approach to facilitation of tax evasion
whether under UK law or under the law of any foreign
country and is committed to acting professionally, fairly
and with integrity in all its business dealings and
relationships.
Financial Instruments
The financial risk management objectives and policies
arising from its financial instruments and the exposure of
the Company to risk are disclosed in note 15 to the
financial statements.
Corporate Governance
The Company is committed to high standards of
corporate governance. The Board is accountable to the
Company’s shareholders for good governance, and this
statement describes how the Company has applied the
principles identified in the UK Corporate Governance
Code as published in July 2018 (the “UK Code”), which is
available on the Financial Reporting Council’s (the “FRC”)
website: frc.org.uk.
The Board has also considered the principles and
provisions of the AIC Code of Corporate Governance as
published in February 2019 (the “AIC Code”). The AIC
Code addresses the principles and provisions set out in the
UK Code, as well as setting out additional provisions on
issues that are of specific relevance to the Company. The
AIC Code is available on the AIC’s website: theaic.co.uk. 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 FRC, 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).
50 Aberdeen Equity Income Trust plc
· requirement to establish a nomination committee and
describe the work of the nomination committee
(provisions 17 and 23).
· the chair shall not be a member of the audit and risk
committee (provision 24).
· the need for an internal audit function (provision 25).
· previous experience of the chairman of a remuneration
committee (provision 32); and
· executive directors’ remuneration (provisions 33 and
36 to 40).
The Board considers that these provisions, with the
exception of the requirement to establish a nomination
committee and describe the work of the nomination
committee, 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 Board has determined that there is no need for the
Company to have a standalone Nomination Committee
given the number of Directors on the Board. The functions
traditionally undertaken by a nomination committee are
fulfilled by the Board.
The Company has therefore not reported further in
respect of these provisions.
Full details of the Company’s compliance with the
AIC Code of Corporate Governance can be found on
its website.
The Board is mindful of the recent updates to the UK
Corporate Governance Code issued by the FRC, as well as
the corresponding changes to the AIC Code. Certain
provisions of these revised codes will apply to the
Company’s financial year beginning on 1 October 2025.
The Board intends that the Company will comply with all
relevant requirements of the updated Codes.
Board Committees
The Board has appointed two committees, as set out
below. Copies of their terms of reference, which clearly
define the responsibilities and duties of each committee,
are available on the Company’s website, or upon request
from the Company. The terms of reference of each of the
committees are reviewed and reassessed by the Board
for their adequacy on an ongoing basis.
Audit and Risk Committee
The Audit and Risk Committee’s Report is contained on
pages 59 to 62.
Remuneration & Management Engagement Committee
The Remuneration & Management Engagement
Committee comprises the full Board and is chaired by
Nick Timberlake. The main responsibilities of the
Committee include:
· monitoring and evaluating the performance of the
Manager.
· reviewing at least annually the continued retention of
the Manager.
· reviewing at least annually the terms of appointment of
the Manager including, but not limited to, the level and
method of remuneration and the notice period of
the Manager.
· reviewing the performance and remuneration of the
other key service providers to the Company; and
· determining the Directors’ remuneration policy and level
of remuneration.
The Committee met once during the year to 30
September 2025. With the independent facilitation
support of Cyclico, the Committee undertook a review of
the management of the Company and its performance
and provided its recommendation to the Board.
The Board remains satisfied with the capability of the
Aberdeen Group to deliver satisfactory investment
performance. In additional the Board is satisfied that the
Aberdeen Group has the secretarial, administrative, and
promotional skills required for the effective operation and
administration of the Company.
Accordingly, the Board believes that the continuing
appointment of the Manager on the terms agreed is in the
best interests of the shareholders as a whole.
Going Concern
The Company’s assets consist mainly of equity shares in
companies listed on recognised stock exchanges and are
considered by the Board to be realisable within a short
timescale under normal market conditions.
The Board has set overall limits for borrowing and reviews
regularly the Company’s level of gearing, cash flow
projections, and compliance with banking covenants,
when applicable. The Board has also performed stress
testing and liquidity analysis.
Directors’ Report
Continued
Aberdeen Equity Income Trust plc 51
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
As at 30 September 2025, the Company had a £30 million
(2024: £30 million) revolving credit facility with The Royal
Bank of Scotland International Limited, London Branch.
£22.5 million was drawn at the end of the financial year
(2024: £22.5 million). The revolving credit facility matures
on 23 June 2026. The Board is exploring alternative
funding options but notes that the Company could
continue to operate/be viable without any debt funding.
The Company’s Articles of Association require that at
every fifth Annual General Meeting, the Directors shall
propose an ordinary resolution to effect that the
Company continues as an investment trust. An ordinary
resolution approving the continuation of the Company for
five years was passed at the Annual General Meeting on 4
February 2022. The next continuation vote will take place
at the Annual General Meeting to be held in 2027.
The Directors are mindful of the Principal Risks and
Uncertainties disclosed in the Strategic Report on pages
19 to 22 and they believe that the Company has adequate
financial resources to continue its operational existence
for a period of not less than 12 months from the date of
approval of this Report. They have arrived at this
conclusion having confirmed that the Company’s
diversified portfolio of realisable securities is sufficiently
liquid and could be used to meet short-term funding
requirements were they to arise. They have also reviewed
the revenue and ongoing expenses forecasts for the
coming year.
Having taken these matters into account, the Directors
believe that the Company has adequate financial
resources to continue in operational existence for the
foreseeable future and for at least twelve months from
the date of this Report. Accordingly, they continue to
adopt the going concern basis in preparing the financial
statements.
Accountability and Audit
The respective responsibilities of the Directors and the
Auditor in connection with the financial statements
appear on page 70.
The Directors who held office at the date of approval of
this Directors’ Report confirm that, so far as they are each
aware, there is no relevant audit information of which the
Company’s Auditor is unaware; and each Director has
taken all the steps that he/she ought to have taken as a
Director to make himself/herself aware of any relevant
audit information and to establish that the Company’s
Auditor is aware of that information.
Independent Auditor
Shareholders approved the re-appointment of Johnston
Carmichael LLP as the Company’s Auditor at the Annual
General Meeting on 18 February 2025, and resolutions to
approve the re-appointment for the year to 30
September 2026, and for the Directors to determine its
remuneration, will be proposed at the forthcoming Annual
General Meeting.
Relations with Shareholders
The Directors place a great deal of importance on
communications with shareholders. Shareholders and
investors may obtain up to date information on the
Company through its website and from the Manager by
emailing Equity.Income@aberdeenplc.com
The Board’s policy is to communicate directly with
shareholders and their representative bodies without the
involvement of the management group (including the
Company Secretary or the Manager) in situations where
direct communication is required, and representatives
from the Manager meet with major shareholders on at
least an annual basis in order to gauge their views, and
report back to the Board on these meetings.
In addition, the Company Secretary only acts on behalf of
the Board, not the Manager, and there is no filtering of
communication. At each Board meeting the Board
receives full details of any communication from
shareholders to which the Chair responds personally
as appropriate.
The Company’s Annual General Meeting provides a forum
for communication primarily with private shareholders
and is attended by the Board. The Manager makes a
presentation to the meeting, and all shareholders have the
opportunity to put questions to both the Board and the
Manager at the meeting.
The Board will also be hosting an Online Pre-AGM Investor
Session to engage directly with shareholders, regardless
of their location. Details on how to register for the event
are set out in the Chair’s Statement on page 7.
The notice of the Annual General Meeting is sent out at
least 20 working days in advance of the meeting. All
shareholders have the opportunity to put questions to the
Board and Manager at the meeting.
52 Aberdeen Equity Income Trust plc
Additional Information
Where not provided elsewhere in the Directors’ Report, the
following provides the additional information required to
be disclosed by Part 15 of the Companies Act 2006.
There are no restrictions on the transfer of Ordinary
shares in the Company issued by the Company other than
certain restrictions which may from time to time be
imposed by law (for example, the Market Abuse
Regulation). The Company is not aware of any
agreements between shareholders that may result in a
transfer of securities and/or voting rights.
The rules governing the appointment of Directors are set
out in the Directors’ Remuneration Report on pages 54
to 58.
The Company’s Articles of Association may only be
amended by a special resolution passed at a general
meeting of shareholders.
The Company is not aware of any significant agreements
to which it is a party that take effect, alter or terminate
upon a change of control of the Company following a
takeover. Other than the management agreement with
the Manager, further details of which are set out on page
45, the Company is not aware of any contractual or other
agreements which are essential to its business which
could reasonably be expected to be disclosed in the
Directors’ Report.
Annual General Meeting
The Annual General Meeting will be held at Aberdeen
Group plc, 18 Bishops Square, London, E1 6EG on Tuesday
17 February 2026 at 11:30am.
The Notice of the Annual General Meeting and related
notes may be found on pages 104 to 107. Resolutions
including the following business will be proposed.
Dividend Policy
As a result of the timing of the payment of the Company’s
quarterly dividends, the Company’s shareholders are
unable to approve a final dividend each year. In line with
good corporate governance, the Board therefore
proposes to put the Company’s dividend policy to
shareholders for approval at the Annual General Meeting
each year.
The Company’s dividend policy is that interim dividends on
the Ordinary shares are payable quarterly in March, June,
September, and January each year. Resolution 4 will seek
shareholder approval for the dividend policy.
Issue of Ordinary Shares
Resolution 11, which is an ordinary resolution, will, if passed,
renew the Directors’ authority to allot new Ordinary shares
up to an aggregate nominal amount of £1,223,038, being
10% of the issued share capital of the Company
(excluding treasury shares) as at 8 December 2025.
Resolution 12, which is a special resolution, will, if passed,
renew the Directors’ existing authority to allot new
Ordinary shares or sell treasury shares for cash without
the new Ordinary shares first being offered to existing
shareholders in proportion to their existing holdings. This
will give the Directors authority to allot Ordinary shares or
sell shares from treasury on a non-pre-emptive basis for
cash up to an aggregate nominal amount of £1,223,038
(representing 10% of the issued ordinary share capital of
the Company (excluding treasury shares) as at
8 December 2025).
New Ordinary shares, issued under this authority, will only
be issued at prices representing a premium to the last
published net asset value per share.
The authorities being sought under Resolutions 11 and 12
shall expire at the conclusion of the Company’s next
Annual General Meeting or, if earlier, on the expiry of 15
months from the date of the passing of the resolutions,
unless such authorities are renewed, varied or extended
prior to such time. The Board will only rely upon these
authorities if it believes that to do so would be in the best
interests of shareholders as a whole.
Purchase of the Company’s Ordinary Shares
Resolution 13, which is a special resolution, seeks to renew
the Board’s authority to make market purchases of the
Company’s Ordinary shares in accordance with the
provisions contained in the Companies Act 2006 and the
FCA’s Listing Rules. Accordingly, the Company will seek
authority to purchase up to a maximum of 14.99% of the
issued share capital (excluding treasury shares) at the
date of passing of the resolution at a minimum price of 25
pence per share (being the nominal value). Under the
Listing Rules, the maximum price that may be paid on the
exercise of this authority must not exceed the higher of: (i)
105% of the average of the middle market quotations (as
derived from the Daily Official List of the London Stock
Exchange) for the shares over the five business days
immediately preceding the date of purchase; and (ii) the
higher of the last independent trade and the highest
current independent bid on the trading venue on which
the purchase is carried out.
Directors’ Report
Continued
Aberdeen Equity Income Trust plc 53
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Board does not intend to use this authority to
purchase the Company’s Ordinary shares, unless to do so
would result in an increase in the net asset value per
Ordinary share and would be in the best interests of
shareholders as a whole. Any Ordinary shares purchased
shall either be cancelled or held in treasury. The authority
being sought shall expire at the conclusion of the
Company’s next Annual General Meeting or, if earlier, on
the expiry of 15 months from the date of the passing of the
resolution unless such authority is renewed, varied, or
extended prior to such time.
Notice of General Meetings
Under the Companies Act 2006, the notice period for the
holding of general meetings of the Company is 21 clear
days unless shareholders agree to a shorter notice period
and certain other conditions are met. Resolution 14, which
is a special resolution, will seek to authorise the Directors to
call general meetings of the Company (other than Annual
General Meetings) on not less than 14 clear days’ notice,
as permitted by the Companies Act 2006 amended by the
Companies (Shareholders’ Rights) Regulations 2009.
It is currently intended that this flexibility to call general
meetings on shorter notice will only be used for non-
routine business and where it is considered to be in the
interests of all shareholders. If Resolution 14 is passed, the
authority to convene general meetings on not less than 14
clear days’ notice will remain effective until the conclusion
of the Company’s next Annual General Meeting or, if
earlier, on the expiry of 15 months from the date of the
passing of the resolution, unless renewed prior to
such time.
Recommendation
The Board considers that the resolutions to be proposed
at the Annual General Meeting are in the best interests of
the Company’s shareholders as a whole, and most likely to
promote the success of the Company for the benefit of its
members as a whole. Accordingly, the Board
recommends that shareholders vote in favour of the
resolutions as they intend to do in respect of their own
beneficial shareholdings, amounting to 65,052 Ordinary
shares, representing 0.13% of the issued share capital.
By order of the Board
abrdn Holdings Limited
Company Secretary
1 George Street
Edinburgh
EH2 2LL
8 December 2025
54 Aberdeen Equity Income Trust plc
This Directors’ Remuneration Report comprises
three parts:
1. a Remuneration Policy which is subject to a binding
shareholder vote every three years.
2. an Implementation Report which is subject to an
advisory vote on the level of remuneration paid during
the year; and
3. an Annual Statement.
The law requires the Company’s Auditor to audit certain of
the disclosures provided in the Directors’ Remuneration
Report. Where disclosures have been audited, they are
indicated as such. The Auditor’s report is included on
pages 65 to 72.
The Director’s Remuneration Policy and level of Directors’
remuneration are determined by the Remuneration &
Management Engagement Committee, which is chaired
by Nick Timberlake and comprises all of the Directors.
Remuneration Policy
The Directors’ Remuneration Policy takes into
consideration the principles of UK corporate governance
and the AIC’s recommendations regarding the application
of those principles to investment companies.
The Company’s policy is designed to ensure that the
remuneration of the Directors is set at a reasonable level
commensurate with the duties and responsibilities of each
Director and the time commitment required to carry out
their roles effectively. Remuneration will be such that the
Company is able to attract and retain Directors of
appropriate experience and quality. The fees paid to the
Directors will reflect the experience of the Board as a
whole, will be fair, and will take account of the
responsibilities attached to each role given the nature of
the Company’s interests, as well as the level of the fees
paid by investment trusts with a similar capital structure
and similar investment objectives.
Additional payments are made to Directors for chairing
committees or other additional responsibilities. Also, as set
out in the Company’s Articles of Association, additional
fees may be made to Directors who perform services that
go beyond the ordinary duties of a director or for more
time expended over and above that envisaged on
appointment. Any such fees and payments require
approval from the Board and are subject to
periodic review.
Directors will also be reimbursed for out-of-pocket
expenses incurred in connection with the performance of
their duties as Directors of the Company.
Directors are remunerated exclusively in the form of fees,
payable quarterly in arrears to the Director personally.
There is no performance-related remuneration scheme
and therefore the Directors do not receive bonuses,
pension benefits, share options, long-term incentive
schemes or other benefits, and the fees are specifically
related to the Directors’ performance, either individually or
collectively.
Aggregate Annual Fee Limit
The Remuneration Policy limits the aggregate of the fees
payable to the Directors to £300,000 per annum. This is an
increase on the £250,000 limit which approved at the
Company’s Annual General Meeting on 2 February 2023.
Annual Fees
The levels of fees at the year-end are set out in the table
below. Fees are reviewed annually and, if considered
appropriate, adjusted accordingly.
30
September
2025
£
30
September
2024
A
£
Chair 39,000 37,500
Senior Independent Director 29,000 28,000
Chair of Audit and Risk Committee 33,500 32,000
Chair of the Remuneration &
Management Engagement
Committee
29,000 28,000
Director 27,500 26,500
A
Directors fees were increased with effect from 1 October.
Directors’ Remuneration Report
Aberdeen Equity Income Trust plc 55
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Appointment
· The Company only intends to appoint Non-Executive
Directors.
· All the Directors are non-executive and are appointed
under the terms of letters of appointment.
· The terms of appointment provide that Directors should
retire and be subject to election at the first Annual
General Meeting after their appointment. The
Company’s Articles of Association require all Directors to
retire by rotation at least every three years. However,
notwithstanding the Articles of Association, the Board
has agreed that all Directors should retire annually and
seek re-election at the Annual General Meeting.
· Any Director newly appointed to the Board will receive
the fee applicable to each of the other Directors at the
time of appointment together with any other fee then
currently payable in respect of a specific role which the
new Director is to undertake for the Company.
· No incentive or introductory fees will be paid to
encourage a person to become a Director.
Performance, Service Contracts, Compensation
and Loss of Office
· Directors are not eligible for bonuses, pension
benefits, share options, long term incentive schemes
or other benefits.
· Directors are entitled to re-imbursement of out-of-
pocket expenses incurred in connection with the
performance of their duties.
· Directors’ remuneration is not subject to any
performance related fee.
· No Director has a service contract.
· No Director shall have an interest in contracts with the
Company during the period or subsequently.
· The terms of appointment provide that a Director may
be removed without notice.
· There are no notice period and no provision for
compensation upon early termination of appointment,
save for any arrears of fees which may be due.
· No Director is entitled to any other monetary payment
or any assets of the Company.
Company Indemnity
· The Company indemnifies its Directors for all costs,
charges, losses, expenses, and liabilities which may be
incurred in the discharge of duties as a Director of
the Company.
· Directors’ & Officers’ liability insurance cover is
maintained by the Company on behalf of the Directors.
Views of shareholders
Any views expressed by shareholders on the fees being
paid to Directors would be taken into consideration by the
Board when reviewing levels of remuneration.
Review of Remuneration Policy
The Remuneration Policy is reviewed by the Remuneration
& Management Engagement Committee on an annual
basis, and a recommendation is made to the Board.
Approval of Directors’ Remuneration Policy
The Company is required to obtain shareholder approval
for its remuneration policy every three years. It is the
Company’s intention that this Remuneration Policy will
apply for the three-year period ending 30 September
2028 unless renewed, varied, or revoked by
shareholders beforehand.
The Directors’ Remuneration Policy was last approved at
the Annual General Meeting held on 2 February 2023.
The results of the poll in respect of this resolution were
as follows:
Number %
Votes for 5,271,576 97.34
Votes against 143,809 2.66
Votes withheld 75,493 n/a
The remuneration policy will be submitted for approval at
this year’s Annual General Meeting on 17 February 2026.
56 Aberdeen Equity Income Trust plc
Implementation Report
Review of Directors’ Fees
During the year, the Remuneration & Management
Engagement Committee reviewed the level of fees, which
were last increased on 1 October 2024, to ensure that
they were fair and reasonable compared to those of
similar sized investment companies in the AIC UK Equity
Income sector (the Company’s peer group). The Board
also took into consideration the prevailing rate of inflation
as well as the increasing responsibilities and time
commitment required of Directors.
It was agreed that, with effect from 1 October 2025,
Directors’ fees would be increased as per the table below:
Role
1 October
2025
£
1 October
2024
£
Increase
£
Chair 43,000 39,000 4,000
Senior Independent
Director
31,500 29,000 2,500
Chair of Audit and Risk
Committee
37,500 33,500 4,000
Chair of Remuneration &
Management Engagement
Committee
31,500 29,000 2,500
Director 30,000 27,500 2,500
The Board believes these fees properly reflect the time
spent by the Directors on the Company’s business and are
at a level to ensure that candidates of a high calibre are
recruited to the Board and are reflective of the
Company’s size, relevant peer group, and recent
performance.
Company Performance
The graph below plots, in annual increments, the net asset
value total return and share price total return to
shareholders compared to the total return of the FTSE All-
Share Index, the Company’s reference index, which is
used for comparison purposes, for the ten-year period to
30 September 2025. Figures have been rebased to 100 at
30 September 2015.
60
80
100
120
140
160
180
200
220
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Share price total return NAV total return
Reference index total return
Spend on Pay
As the Company has no employees, the Directors do not
consider it appropriate to present a table comparing
remuneration paid to employees with distributions to
shareholders. However, for ease of reference, the total
fees paid to Directors are shown in the table below while
dividends paid to shareholders are set out in note 7 and
share buybacks and issuances are detailed in note 12
Directors’ Remuneration Report
Continued
Aberdeen Equity Income Trust plc 57
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Directors’ Remuneration
The Directors who served during the year received the
following emoluments in the form of fees:
Director
Year ended 30
September 2025
Year ended 30
September 2024
G
Sarika Patel
A
39,000 37,500
Caroline Hitch
B
29,000 28,000
Mark Little
C
33,500 32,000
Nick Timberlake
D
29,000 27,418
Jeremy Tigue
F
N/A 10,943
Total 130,500 135,861
A
Appointed as Chair on 2 February 2023
B
Appointed as Senior Independent Non-Executive Director on 20 February 2024
C
Appointed as Director on 1 August 2022 and as Chair of the Audit and Risk
Committee on 2 February 2023
D
Appointed as Director on 1 August 2023 and as Chair of the Remuneration &
Management Engagement Committee on 20 February 2024
E
Appointed to the Board on 1 October 2025
F
Retired from the Board on 20 February 2024
G
Directors fees were increased with effect from 1 October 2024.
These amounts exclude any employers’ national
insurance contributions, if applicable. All fees are at a fixed
rate and there is no variable remuneration. Fees are pro-
rated where a change takes place during a financial year.
There were no payments to third parties included in the
fees referred to in the table above. No other forms of
remuneration were received by the Directors and none of
the Directors has any taxable expenses, compensation for
loss of office or non-cash benefit for the year ended
30 September 2025 (2024: nil).
Annual Percentage Change in Directors’ Remuneration
The following table sets out the annual percentage change in Directors’ fees for the past five years from 1 October 2020
to 30 September 2025.
Year ended 30
September 2025
Year ended 30
September 2024
Year ended 30
September 2023
Year ended 30
September 2022
Year ended 30
September 2021
Fees
%
Fees
%
Fees
%
Fees
%
Fees
%
Sarika Patel
A
4.0% 13.7 25.6 5.0 14.2
Caroline Hitch
B
3.6% 7.7 13.0 7.1 4.8
Mark Little
C
4.7% 13.7 30.9 n/a n/a
Nick Timberlake
D
3.6% 14.3 n/a n/a n/a
A
Sarika Patel was appointed as a Director on 1 November 2019, as Chair of the Audit Committee on 23 February 2020 and as Board Chair on 2 February 2023. The % increase
reflects the change in role during the course of the year and the additional fee associated with this position.
B
Appointed as Chair of the Remuneration & Management Engagement Committee on 5 February 2021 and as Senior Independent Non-Executive Director on 20 February 2024.
C
Appointed as a Director on 1 August 2022 and as Chair of Audit Committee on 2 February 2023. The % increase compares the annual fee for a Director in the year ended 30
September 2022 to the annual fee for Mark’s new role as Chair of the Audit Committee in the year to 30 September 2023.
D
Appointed as a Director on 1 August 2023 and as Chair of the Remuneration & Management Engagement Committee (RMEC) on 20 February 2024. The % compares the annual
fee for a Director in the year to 30 September 2023 to the annual fee for Nick’s new role as Chair of RMEC in the year to 30 September 30 September 2024.
58 Aberdeen Equity Income Trust plc
Statement of Voting on the Directors’ Remuneration
Report at General Meeting
At the Company’s last Annual General Meeting, held on 18
February 2025, shareholders approved the Directors’
Remuneration Report in respect of the year ended 30
September 2024. The results of the poll in respect of this
resolution were as follows:
Number %
Votes for 5,234,445 95.73
Votes against 235,128 4.27
Votes withheld 130,468 n/a
A resolution to approve the Directors’ Remuneration
Report in respect of the year ended 30 September 2025
will be proposed at the Annual General Meeting on
17 February 2026.
Directors’ Interests in the Company
The Directors (including their connected persons) at 30
September 2025 and 30 September 2024 had no interest
in the share capital of the Company other than those
interests shown in the following table.
30 September 2025 30 September 2024
Ordinary shares Ordinary shares
Sarika Patel 11,454 10,000
Caroline Hitch 27,900 27,900
Mark Little 5,716 5,698
Nick Timberlake 20,000 20,000
Jeremy Tigue
A
N/A 25,886
A
As at 20 February 2024, the date Jeremy Tigue retired from the Board
There have been no changes to the Directors’ interests in
the share capital of the Company since the year end up to
the date of approval of this Report.
Annual Statement
On behalf of the Board and in accordance with Part 2 of
Schedule 8 of the Large and Medium-sized Companies
and Groups (Accounts and Reports) (Amendment)
Regulations 2013, it is confirmed that the above
Remuneration Report summarises, as applicable, for the
year to 30 September 2025:
· the major decisions on Directors’ remuneration.
· any substantial changes relating to Directors’
remuneration made during the year; and
· the context in which the changes occurred, and
decisions have been taken.
Nick Timberlake
Chair of the Remuneration &
Management Engagement Committee
8 December 2025
Directors’ Remuneration Report
Continued
Aberdeen Equity Income Trust plc 59
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Audit and Risk Committee present its Report for the
year ended 30 September 2025.
Committee Composition
During the financial year, the Audit and Risk Committee
was chaired by Mark Little, a Chartered Accountant with
recent and relevant financial experience.
The Committee comprises all Non-Executive Directors.
Given the size of the Board, and the skillset and continued
independence of Sarika Patel, the Board considers it
appropriate for all the independent Directors, including the
Chair of the Board, to serve on the Committee. The Board
is satisfied that the Committee as a whole possesses the
competence and experience relevant to the investment
trust sector, enabling it to fulfil its responsibilities effectively.
Functions of the Audit and Risk Committee
The principal role of the Audit and Risk Committee is to
assist the Board in overseeing the reporting of financial
information, the review of financial controls and the
management of risk.
The Committee operates under defined terms of
reference, which are reviewed and reassessed for
adequacy on at least annually. Copies of the terms of
reference are published on the Company’s website and
are available on request.
The Committee discharges its responsibilities through the
following key activities:
· Reviewing and monitoring the internal control and risk
management systems, including non-financial risks, on
which the Company is reliant. The Directors’ statement
on the Company’s internal controls and risk
management is set out below.
· Considering whether there is a need for the Company
to have its own internal audit function.
· Monitoring the integrity of the half-yearly and annual
financial statements of the Company and any formal
announcements relating to the Company’s financial
performance, by reviewing, and challenging where
necessary, the actions and judgements of the Manager.
· Reviewing and reporting to the Board on significant
financial reporting issues and judgements relating to the
Company’s financial statements and formal financial
announcements.
· Reviewing the content of the Annual Report and advising
the Board on whether, taken as a whole, it is fair,
balanced, and understandable, and provides the
information necessary for shareholders to assess the
Company’s position and performance, business model,
and strategy.
· Meeting with the Auditor to review the proposed audit
programme and findings and using this opportunity to
assess the effectiveness of the audit process.
· Developing and implementing policy on the
engagement of the Auditor to supply non-audit services.
Non-audit fees paid to the Auditor during the year under
review amounted to £nil (2024: £nil). All non-audit
services must be approved in advance by the
Committee and are reviewed in the light of relevant
guidance and statutory requirements regarding the
provision of non-audit services by the external audit firm,
and the need to maintain the Auditor’s independence.
· Reviewing a statement from the Manager detailing the
arrangements in place whereby staff may confidentially
escalate concerns about possible improprieties in
matters of financial reporting or other issues.
· Making recommendations to the Board regarding the
appointment of the Auditor and approving the
remuneration and terms of engagement; and
· Monitoring and reviewing the Auditor’s independence,
objectivity, effectiveness, resources, and qualifications,
taking into consideration relevant UK professional and
regulatory requirements.
Audit and Risk Committee’s Report
60 Aberdeen Equity Income Trust plc
Activities During the Year
The Audit and Risk Committee met twice during the year
when, amongst other matters, it considered the Annual
Report and the Half-Yearly Financial Report in detail.
Representatives from the Manager’s internal audit, risk and
compliance departments reported to the Committee at
these meetings on topics such as internal control systems,
risk management, and the conduct of the business in the
context of its regulatory environment. No significant
weaknesses in the control environment were identified. The
Committee, therefore, concluded that there were no
significant issues requiring report to the Board.
Internal Controls and Risk Management
Ongoing Risk Management Process
The Board confirms that there is an ongoing process for
identifying, evaluating, and managing the Company’s
significant business and operational risks. This process has
been in place for the year ended 30 September 2025 and
up to the date of approval of the Annual Report. It is
regularly reviewed by the Board and accords with
the Financial Reporting Council’s guidance on
internal controls.
Board Oversight and Delegation
The Board has overall responsibility for ensuring that a
system of internal controls and risk management is in
place, and for reviewing its effectiveness. Day-to-day
measures have been delegated to the Manager, with an
effective reporting process in place to enable supervision
and oversight by the Board. The system of internal
controls and risk management is tailored to the
Company’s specific needs and the risks to which it is
exposed. Accordingly, it is designed to manage, rather
than eliminate, the risk of failure to achieve business
objectives and, by its nature, can only provide reasonable
and not absolute assurance against material
misstatement or loss.
Control Framework
The design, implementation and maintenance of controls
and procedures to safeguard the assets of the Company
and to manage its affairs properly extend to operational
and compliance controls and risk management. The
Board, through the Audit and Risk Committee, has
prepared its own risk register which lists potential risks
including those set out in the Strategic Report on pages 19
to 22. The Board considers the potential causes and
possible effects of these risks as well as reviewing the
controls in place to mitigate them.
Reporting and Accountability
Clear lines of accountability have been established
between the Board and the Manager. The Board receives
regular reports covering key performance and risk
indicators and considers control and compliance issues
brought to its attention. In carrying out its review, the
Board has had regard to the activities of the Manager,
including its internal audit and compliance functions.
Review of Manager’s Control Systems
The Board has reviewed the Manager’s process for
identifying and evaluating the significant risks faced by the
Company and the policies and procedures by which these
risks are managed. It has also reviewed the effectiveness
of the Manager’s system of internal control including its
annual internal controls report prepared in accordance
with the International Auditing and Assurance Standards
Board’s International Standard on Assurances
Engagements (“ISAE”) 3402, “Assurance Reports on
Controls at a Service Organisation”. Any weaknesses
identified are reported to the Audit and Risk Committee
and timetables are agreed for implementing
improvements to systems. The implementation of any
remedial action required is monitored and feedback
provided to the Audit and Risk Committee.
Key Components of Internal Control
The key components designed to provide effective
internal control are outlined below:
· written agreements that clearly define the roles and
responsibilities of the Manager and other third-party
service providers. These agreements are reviewed
periodically by the Board.
· Clearly defined investment criteria specified levels of
authority and exposure limits agreed between the
Board and the Manager. Reports on these matters,
including performance statistics and investment
valuations, are regularly submitted to the Board.
· Forecasts and management accounts prepared by the
Manager, enabling the Board to assess the Company’s
activities and review its performance.
· Ongoing review of operations by the Manager’s internal
audit and compliance departments.
Audit and Risk Committee’s Report
Continued
Aberdeen Equity Income Trust plc 61
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Consideration of an Internal Audit Function
The Board has considered the need for the Company to
establish its own internal audit function. As the Company
has no employees, and the day-to-day management of
the Company’s assets has been delegated to Aberdeen
which has its own compliance and internal control
systems., the Board has decided to place reliance on
those systems and internal audit procedures. It has
therefore concluded that it is not necessary for the
Company to have its own internal audit function.
Financial Statements and Significant Issues
During its review of the Company’s financial statements
for the year ended 30 September 2025, the Audit and Risk
Committee considered the following significant issues,
particularly those communicated by the Auditor during its
planning and reporting of the year-end audit:
Valuation, Existence and Ownership of Investments
The Company uses the services of an independent
depositary, BNP Paribas S.A., London Branch (the
“Depositary”), to hold its assets. An annual internal control
report is received from the Depositary and reviewed by
the Audit and Risk Committee. This report provides details
of the Depositary’s control environment.
The investment portfolio is reconciled regularly by the
Manager and reviewed and verified on an ongoing basis.
Management accounts, including a full portfolio listing, are
prepared quarterly and considered at the quarterly
meetings of the Board. The valuation of investments is
undertaken in accordance with the accounting policies
disclosed in notes 1(b) and 1(c) to the financial
statements.
The Committee satisfied itself that there were no issues
associated with the valuation, existence, or ownership of
the investments which required further action.
Recognition of Dividend Income
The recognition of dividend income is undertaken in
accordance with accounting policy note 1(d) to the
financial statements. Special dividends are allocated to
either the capital or revenue account depending on the
nature of the payment and the specific circumstances.
Management accounts are reviewed by the Board on a
quarterly basis, and discussions take place with the
Manager regarding the allocation of any special dividends
received.
The Committee concluded that there were no issues
associated with the recognition of dividend income which
required further action.
Review of Financial Reporting
When considering the draft Annual Report and financial
statements for the year ended 30 September 2025, the
Audit and Risk Committee concluded that, taken as a
whole, the report is fair, balanced, and understandable. It
provides the information necessary for shareholders to
assess the Company’s position and performance,
business model, and strategy.
In reaching this conclusion, the Committee assumed that
the reader of the Annual Report and financial statements
would have a reasonable knowledge of the investment
industry in general, and of investment trusts in particular.
62 Aberdeen Equity Income Trust plc
Review of Independent Auditor
The Audit and Risk Committee has reviewed the
effectiveness of the independent Auditor, Johnston
Carmichael LLP (“Johnston Carmichael”), across the
following key areas:
· Independence - the Auditor discusses with the
Committee, at least annually, the steps it takes to ensure
its independence and objectivity. It also highlights any
potential issues and explains the safeguards in place to
address them.
· Quality of audit work -This includes the Auditor’s ability to
resolve issues in a timely manner (with identified issues
satisfactorily and promptly resolved), the clarity and
completeness of its communications (including the
audit plan, any deviations from it, and the subsequent
audit findings), and its working relationship with the
Manager, which is constructive and professional.
· Quality of people and service – The audit team
comprises sufficient, suitably experienced staff with
appropriate knowledge of the investment trust sector.
Continuity and succession planning are in place,
including retention on rotation of the senior statutory
auditor.
· Fees – The Committee considered the current audit fees
and reviewed proposals for future years to ensure they
remain appropriate and proportionate to the scope and
quality of the audit services provided.
The independent Auditor’s report is included on pages
65 to 72. The fees payable to Johnston Carmichael LLP
for audit services in respect of the year ended 30
September 2025 were £48,000 (2024: £44,400)
(inclusive of VAT).
Tenure of the Independent Auditor
Johnston Carmichael LLP was initially appointed as the
Company’s independent Auditor and approved by
shareholders at the Annual General Meeting on 20
February 2024. In accordance with present professional
guidelines the senior statutory auditor is rotated after no
more than five years. The year ended 30 September 2025
is the second year during which the present senior
statutory auditor has served.
The next compulsory audit tender of the Company is due
to take place by 2034 in compliance with the FRC
Guidance on audit tenders.
The Committee is satisfied with the quality of the work and
service provided by Johnston Carmichael LLP, as well as
the level of fees. It is also satisfied that Johnston
Carmichael LLP remains independent and therefore
supports the recommendation to the Board that the re-
appointment of Johnston Carmichael LLP be put to
shareholders for approval at the Annual General Meeting.
On behalf of the Audit and Risk Committee
Mark Little
Chair of the Audit and Risk Committee
8 December 2025
Audit and Risk Committee’s Report
Continued
Aberdeen Equity Income Trust plc 63
Financial
Statements
64 Aberdeen Equity Income Trust plc
The Directors are responsible for preparing the Annual
Report and the 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 the Directors are required to
prepare the financial statements in accordance with UK
Accounting Standards, including FRS 102 ‘The Financial
Reporting Standard Applicable in the UK and Republic
of Ireland’.
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 the profit or loss of the Company 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
and prudent.
· state whether applicable UK 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
· prepare the financial statements on the going concern
basis unless it is inappropriate to presume that the
Company will continue in business.
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 Act 2006. They
are responsible for such internal control as they determine
is necessary to enable the preparation of financial
statements that are free from material misstatement,
whether due to fraud or error, 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.
Under applicable law and regulations, the Directors are
also responsible for preparing a Strategic Report,
Directors’ Report, Directors’ Remuneration Report and
Statement of Corporate Governance that comply with
that law and those regulations.
The Directors are responsible for the maintenance and
integrity of the corporate and financial information
included on the Company’s website, but not for the
content of any information included on the website that
has been prepared or issued by third parties. Legislation in
the UK governing the preparation and dissemination of
financial statements may differ from legislation in
other jurisdictions.
The Directors confirm that to the best of their knowledge:
· the financial statements have been prepared in
accordance with applicable accounting standards and
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
the Company faces.
The Board considers the Annual Report and accounts,
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.
On behalf of the Board
Sarika Patel
Chair
8 December 2025
Statement of Directors’ Responsibilities
Aberdeen Equity Income Trust plc 65
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Opinion
We have audited the financial statements of Aberdeen Equity Income Trust plc (the “Company”) for the year ended 30
September 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement
of Changes in Equity, and notes to the financial statements, including significant accounting policies. The financial
reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting
Standards, including Financial Reporting Standard 102
The Financial Reporting Standard applicable in the UK and
Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
· Give a true and fair view of the state of the Company’s affairs as at 30 September 2025 and of its return for the year
then ended.
· Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
· Have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.
Our responsibilities under those standards are further described in the Auditor responsibilities for the audit of the financial
statements section of our report. We are independent of the Company in accordance with the ethical requirements that
are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, as applied to listed
public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Our approach to the audit
We planned our audit by first obtaining an understanding of the Company and its environment, including its key
activities delegated by the Board to relevant approved third-party service providers and the controls over provision of
those services.
We conducted our audit using information maintained and provided by abrdn Investment Management Limited (the
“Investment Manager”), abrdn Fund Managers Limited (the “Alternative Investment Fund Manager”), abrdn Holdings
Limited (the “Company Secretary”, and “Administrator”), BNP Paribas S.A., London Branch (the “Depositary” and
“Custodian”) and Computershare Investor Services PLC (the “Registrar”) to whom the Company has delegated the
provision of services.
We tailored the scope of our audit to reflect our risk assessment, taking into account such factors as the business model
and activities, the types of investments within the Company, the involvement of the Administrator, the accounting
processes and controls, and the industry and geography in which the Company operates.
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for
materiality. These together with qualitative considerations, helped us to determine the scope of our audit and the nature,
timing and extent of our audit procedures on the individual financial statement line items and disclosures and in the
evaluation of the effect of misstatements both individually and in aggregate on the financial statements as a whole.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial statements of the current period and include the most significant assessed risks of material misstatement
(whether or not due to fraud) that we identified. These matters included those which had the greatest effect on the
overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These
matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion
thereon, we do not provide a separate opinion on these matters.
We summarise below the key audit matters in arriving at our audit opinion above, together with how our audit addressed
these matters and the results of our audit work in relation to these matters.
Independent Auditor’s Report to the Members of
Aberdeen Equity Income Trust plc
66 Aberdeen Equity Income Trust plc
Independent Auditor’s Report to the Members of
Aberdeen Equity Income Trust plc
Continued
Key audit matters How our audit addressed the key audit matters and our conclusions
Valuation of investments
(as per page 61 in the Audit and Risk Committee’s Report,
pages 76 and 77 (Accounting Policies) and Note 9.)
The valuation of investments held at fair value through
profit or loss at 30 September 2025, which comprised
of wholly listed investments, was £204.8 million
(2024: £178 million).
As this is the largest component of the Company’s
Statement of Financial Position and a key driver of the
Company’s total return, valuation of the investments has
been designated as a key audit matter, being one of the
most significant assessed risks of material misstatement
due to error.
There is a further risk that listed investments held at fair
value may not be actively traded and the listed prices
may not be reflective of their fair value.
We obtained and assessed controls reports provided by BNP Paribas S.A.,
London Branch (as Depositary), and BNP Paribas S.A. (as Custodian) and
abrdn Holdings Limited (as sub-delegated administrator) to evaluate the
design of the process and implementation of key controls.
We compared market prices applied to all listed investments held at 30
September 2025 to an independent third-party source and recalculated
the investment valuations.
We obtained average trading volumes from an independent third-party
source for all listed equity investments held at year end and assessed
their liquidity. Where trading volumes indicated lower levels of liquidity, we
obtained management’s active market assessment to assess whether
the year-end fair value was appropriate.
From our completion of these procedures, we identified no material
misstatements in relation to the valuation of the investments.
Revenue recognition including allocation of special
dividends as revenue or capital returns.
(as per page 61 (Audit and Risk Committee’s Report),
page 77 (Accounting Policies) and Note 2.
Income from investments recognised for the year to 30
September 2025 was £12.4 million (2024: £12.9 million)
consisting primarily of dividends received from listed
investments.
Revenue-based performance metrics are often one of
the key performance indicators for stakeholders. The
investment income received by the Company during the
year directly impacts these metrics and the minimum
dividend required to be paid by the Company.
There is a risk that revenue, including that derived from
special cum-dividend and special ex-dividend trades, is
incomplete, did not occur or inaccurate through failure to
recognise income entitlements or failure to appropriately
account for their treatment as revenue or capital. It has
therefore been designated as a key audit matter being
one of the most significant assessed risks of material
misstatement due to error.
Additionally, judgement is required in determining the
allocation of special dividends as revenue or capital
returns in the Statement of Comprehensive Income, and
the process for allocation is manual. It has therefore been
designated a key audit matter, being one of the most
significant assessed risks of material misstatement due to
fraud or error.
We obtained and assessed control reports provided by BNP Paribas S.A.,
London Branch (as Depositary), and BNP Paribas S.A. (as Custodian) and
abrdn Holdings Limited (as sub-delegated administrator) to evaluate the
design of the process and implementation of key controls.
We assessed whether income was recognised and disclosed in
accordance with the AIC SORP by assessing the accounting policies.
We recalculated 100% of dividends due to the Company based on
investment holdings throughout the year and announcements made by
investee companies.
We agreed a sample of dividends received to bank statements.
We assessed the completeness of the special dividend population and
determined whether special dividends recognised were revenue or
capital in nature with reference to the underlying commercial
circumstances of the investee companies’ dividend payment.
We assessed the completeness of investment purchases made during
the year on a special cum-dividend basis, which had a material effect on
dividend income, as disclosed in Note 2. We tested 100% of these
purchases and the subsequent dividend receipts and confirmed that they
were accounted for in accordance with the accounting policy in Note 1.
From our completion of these procedures, we identified no material
misstatements in relation to revenue recognition, including allocation of
special dividends as revenue or capital returns.
Aberdeen Equity Income Trust plc 67
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Our application of materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the
economic decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality in
determining the nature and extent of our work and in evaluating the results of that work.
Materiality measure Value
Materiality for the financial statements as a whole
We have set materiality as 1% of net assets as we believe that net assets is the primary performance
measure used by investors and is the key driver of shareholder value. We determined the measurement
percentage to be commensurate with the risk and complexity of the audit and the Company’s listed status.
£1.84 million
(2024: £1.58 million)
Performance materiality
Performance materiality represents amounts set by the auditor at less than materiality for the financial
statements as a whole, to reduce to an appropriately low level the probability that the aggregate of
uncorrected and undetected misstatements exceeds materiality for the financial statements as a whole.
In setting this we consider the Company’s overall control environment, and our past experience of the audit
that indicates a lower risk of material misstatements. Based on our judgement of these factors, we have set
performance materiality at 75% (2024: 50%) of our overall financial statement materiality.
£1.38 million
(2024: £0.79 million)
Specific materiality
Recognising that there are transactions and balances of a lesser amount which could influence the
understanding of users of the financial statements we calculate a lower level of materiality for testing
such areas.
Specifically, given the importance of the distinction between revenue and capital for the Company, we also
applied a separate testing threshold for the revenue column of the Statement of Comprehensive Income set
at the higher of 5% of the net revenue return on ordinary activities before tax and our Audit and Risk
Committee Reporting Threshold.
We have set a specific materiality in respect of related party transactions and Directors’ remuneration.
We used our judgement in setting these thresholds and considered our past experience of the audit, the
history of misstatements and industry benchmarks for specific materiality.
£0.57 million
(2024: £0.58 million)
Audit and Risk Committee reporting threshold
We agreed with the Audit and Risk Committee that we would report to them all differences in excess of 5% of
overall materiality in addition to other identified misstatements that warranted reporting on qualitative
grounds, in our view. For example, an immaterial misstatement as a result of fraud.
£0.09 million
(2024: £0.08 million)
During the course of the audit, we reassessed initial materiality and found no reason to alter the basis of calculation used
at year-end.
68 Aberdeen Equity Income Trust plc
Independent Auditor’s Report to the Members of
Aberdeen Equity Income Trust plc
Continued
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting
in the preparation of the financial statements is appropriate. Our evaluation of the Directors’ assessment of the
Company’s ability to continue to adopt the going concern basis of accounting included:
· Evaluating management’s method of assessing going concern, including consideration of market conditions and
macro-economic uncertainties.
· Assessing and challenging the forecast cashflows and associated sensitivity modelling used by management in
support of their going concern assessment, by reference to supporting documentation, Board approved budgets, our
own understanding of the Company and the economic environment in which it operates, and the results of other audit
work.
· Assessing the plausibility of mitigating actions identified by management as available to them to continue as a going
concern if downside uncertainties were to crystallise.
· Assessing the accuracy of management’s forecasting by comparing the reliability of past forecasts to actual results.
· Performing arithmetical and consistency checks on management’s base forecast.
· Reviewing the adherence to loan covenants in place based on the forecasts and considered the likelihood of these
being breached in the future via the sensitivity analyses performed.
· Obtaining and recalculating management’s assessment of the Company’s ongoing maintenance of investment trust
status; and
· Assessing the adequacy of the Company’s going concern disclosures included in the Annual Report.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions
that, individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for a
period of at least twelve months from when the financial statements are authorised for issue.
In relation to the Company’s reporting on how it has applied the UK Corporate Governance Code, we have nothing
material to add or draw attention to in relation to the Directors’ statement in the financial statements about whether the
Directors considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant
sections of this report.
Other information
The other information comprises the information included in the Annual Report other than the financial statements and
our auditor’s report thereon. The Directors are responsible for the other information contained within the Annual Report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise
explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read
the other information and, in doing so, consider whether the other information is materially inconsistent with the financial
statements, or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we
identify such material inconsistencies or apparent material misstatements, we are required to determine whether this
gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Aberdeen Equity Income Trust plc 69
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance
with the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
· The information given in the Strategic Report and the Directors’ Report for the financial year for which the financial
statements are prepared is consistent with the financial statements; and
· The Strategic Report and the Directors’ Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit,
we have not identified material misstatements in the Strategic Report or the Directors’ Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to
report to you if, in our opinion:
· Adequate accounting records have not been kept by the Company, or returns adequate for our audit have not been
received from branches not visited by us; or
· The financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with
the accounting records and returns; or
· Certain disclosures of Directors’ remuneration specified by law are not made; or
· We have not received all the information and explanations we require for our audit; or
· A corporate governance statement has not been prepared by the Company.
Corporate governance statement
We have reviewed the Directors’ statement in relation to going concern, longer-term viability and that part of the
Corporate Governance Statement relating to the entity’s compliance with the provisions of the UK Corporate
Governance Code specified for our review by the Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the
Corporate Governance Statement is materially consistent with the financial statements, or our knowledge obtained
during the audit:
· The Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and
any material uncertainties identified set out on page 50 and 51.
· The Directors’ explanation as to its assessment of the Company’s prospects, the period this assessment covers and
why the period is appropriate set out on page 25.
· The Directors’ statement on fair, balanced and understandable set out on page 64.
· The Directors’ statement on whether it has a reasonable expectation that the Company will be able to continue in
operation and meets its liabilities set out on page 25.
· The Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on
page 19.
· The section of the Annual Report that describes the review of the effectiveness of risk management and internal
control systems set out on pages 60 and 61; and
· The section describing the work of the Audit and Risk Committee set out on page 59.
70 Aberdeen Equity Income Trust plc
Independent Auditor’s Report to the Members of
Aberdeen Equity Income Trust plc
Continued
Responsibilities of Directors
As explained more fully in the Directors’ Responsibilities Statement set out on page 64, the Directors are responsible for
the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such
internal control as the Directors determine is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error. In preparing the financial statements, the Directors are
responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the
Company or to cease operations, or have no realistic alternative but to do so.
Auditor responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting
Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line
with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The
extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify
or recognise non-compliance with laws and regulations by considering their experience, past performance and
support available.
All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the
planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or
non-compliance with laws and regulations throughout the audit.
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and the
sector in which it operates, focusing on those provisions that had a direct effect on the determination of material
amounts and disclosures in the financial statements. The most relevant frameworks we identified include:
· Companies Act 2006
· Financial Conduct Authority (FCA) listing and Disclosure Guidance and Transparency Rules (DTR).
· The principles of the UK Corporate Governance Code applied by the AIC Code of Corporate Governance
(the “AIC Code”).
· Industry practice represented by the Statement of Recommended Practice: Financial Statements of Investment Trust
Companies and Venture Capital Trusts (“the SORP”) issued in July 2022.
· The Company’s qualification as an investment trust under section 1158 of the Corporation Tax Act 2010; and
· UK Generally Accepted Accounting Practice.
We gained an understanding of how the Company is complying with these laws and regulations by making enquiries of
management and those charged with governance. We corroborated these enquiries through our review of relevant
correspondence with regulatory bodies and board meeting minutes.
Aberdeen Equity Income Trust plc 71
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by
meeting with management and those charged with governance to understand where it was considered there was
susceptibility to fraud. This evaluation also considered how management and those charged with governance were
remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control
environment and how management and those charged with governance oversee the implementation and operation of
controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to
address each identified risk. We identified a heightened fraud risk in relation to
· Management override of controls; and
· The allocation of special dividends as revenue or capital items.
Audit procedures performed in response to the risks relating to revenue recognition, including allocation of special
dividends as revenue or capital returns, are set out in the section on key audit matters above, and audit procedures
performed in response to the risk of management override of controls are included below.
In addition to the above, the following procedures were performed to provide reasonable assurance that the financial
statements were free of material fraud or error:
· Reviewing minutes of meetings of those charged with governance for reference to breaches of laws and regulation or
for any indication of any potential litigation and claims; and events or conditions that could indicate an incentive or
pressure to commit fraud or provide an opportunity to commit fraud.
· Reviewing the level of and reasoning behind the Company’s procurement of legal and professional services.
· Performing audit procedures over the risk of management override of controls, including testing of journal entries and
other adjustments for appropriateness, recalculating the investment management fee, evaluating the business
rationale of significant transactions outside the normal course of business and assessing judgements made by
management in their calculation of accounting estimates for potential management bias.
· Completion of appropriate checklists and use of our experience to assess the Company’s compliance with the
Companies Act 2006 and the Listing Rules; and
· Agreement of the financial statement disclosures to supporting documentation.
Our audit procedures were designed to respond to the risk of material misstatements in the financial statements,
recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one
resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation.
There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws
and regulations is from the events and transactions reflected in the financial statements, the less likely we would
become aware of it.
72 Aberdeen Equity Income Trust plc
Independent Auditor’s Report to the Members of
Aberdeen Equity Income Trust plc
Continued
Other matters which we are required to address
Following the recommendation of the Audit and Risk Committee, we were appointed by the Board on 20 February 2024
to audit the financial statements for the year ended 30 September 2024 and subsequent financial years. The period of
our total uninterrupted engagement is two years, covering the years ended 30 September 2024 to 30 September 2025.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Company and we remain
independent of the Company in conducting our audit.
Our audit opinion is consistent with the additional report to the Audit and Risk Committee.
Use of our report
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those
matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as
a body, for our audit work, for this report, or for the opinions we have formed.
Richard Sutherland (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
Statutory Auditor
Edinburgh, United Kingdom
8 December 2025
Aberdeen Equity Income Trust plc 73
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
2025 2024
Revenue Capital Total Revenue Capital Total
Notes £’000 £’000 £’000 £’000 £’000 £’000
Net gains on investments at fair value 9 – 23,683 23,683 – 9,452 9,452
Currency gains – 1 1 – – –
Income 2 12,499 – 12,499 12,735 219 12,954
Investment management fee 3 (276) (643) (919) (252) (588) (840)
Administrative expenses 4 (488) – (488) (459) – (459)
Net return before finance costs and taxation 11,735 23,041 34,776 12,024 9,083 21,107
Finance costs 5 (423) (989) (1,412) (454) (1,060) (1,514)
Return before taxation 11,312 22,052 33,364 11,570 8,023 19,593
Taxation 6 (70) – (70) (560) – (560)
Return after taxation 11,242 22,052 33,294 11,010 8,023 19,033
Return per Ordinary share 8 23.43p 45.95p 69.38p 23.05p 16.80p 39.85p
The total column of this statement represents the profit and loss account of the Company.
All revenue and capital items in the above statement derive from continuing operations.
The accompanying notes are an integral part of the financial statements.
Statement of Comprehensive Income
74 Aberdeen Equity Income Trust plc
2025 2024
Notes £’000 £’000
Fixed assets
Investments at fair value through profit or loss 9 204,799 177,978
Current assets
Debtors 10 669 1,411
Investments in AAA-rated money market funds 1,577 1,311
Cash and short-term deposits 244 591
2,490 3,313
Current liabilities
Creditors: amounts falling due within one year
Bank loan 11 (22,484) (22,462)
Other creditors 11 (471) (414)
(22,955) (22,876)
Net current liabilities (20,465) (19,563)
Net assets 184,334 158,415
Capital and reserves
Called-up share capital 12 12,295 12,295
Share premium account 52,475 52,043
Capital redemption reserve 12,616 12,616
Capital reserve 13 96,393 71,161
Revenue reserve 10,555 10,300
Equity shareholders’ funds 184,334 158,415
Net asset value per Ordinary share 14 377.84p 331.54p
The financial statements on pages 73 to 90 were approved by the Board of Directors and authorised for issue on 8 December 2025
and were signed on its behalf by:
Sarika Patel
Chair
The accompanying notes are an integral part of the financial statements.
Statement of Financial Position
Aberdeen Equity Income Trust plc 75
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
For the year ended 30 September 2025
Share Capital
Share premium redemption Capital Revenue
capital account reserve reserve reserve Total
Notes £’000 £’000 £’000 £’000 £’000 £’000
Balance at 30 September 2024 12,295 52,043 12,616 71,161 10,300 158,415
Return after taxation
A
– – – 22,052 11,242 33,294
Sale of own shares from treasury – 432 – 3,180 – 3,612
Dividends paid during the year 7 – – – – (10,987) (10,987)
Balance at 30 September 2025 12,295 52,475 12,616 96,393 10,555 184,334
For the year ended 30 September 2024
Share Capital
Share premium redemption Capital Revenue
capital account reserve reserve reserve Total
Notes £’000 £’000 £’000 £’000 £’000 £’000
Balance at 30 September 2023 12,295 52,043 12,616 62,735 10,184 149,873
Return after taxation
A
– – – 8,023 11,010 19,033
Sale of own shares from treasury – – – 403 – 403
Dividends paid during the year 7 – – – – (10,894) (10,894)
Balance at 30 September 2024 12,295 52,043 12,616 71,161 10,300 158,415
A
per the Statement of Comprehensive Income on page 73.
The capital reserve at 30 September 2025 is split between realised gains of £83,780,000 and unrealised gains of £12,613,000 (30
September 2024: realised gains £78,223,000 and unrealised losses of £7,062,000).
The Company’s reserves available to be distributed by way of dividends or buybacks which includes the revenue reserve and the
realised element of the capital reserve amount to £94,335,000 (30 September 2024: £88,523,000).
The accompanying notes are an integral part of the financial statements.
Statement of Chan
g
es in Equity
76 Aberdeen Equity Income Trust plc
1. Accounting policies
(a) Basis of accounting and going concern. The Financial Statements have been prepared in accordance with Financial
Reporting Standard 102 and with the Statement of Recommended Practice ‘Financial Statements of Investment Trust
Companies and Venture Capital Trusts’ issued in July 2022. They have also been prepared on the assumption that
approval as an investment trust will continue to be granted. The Financial Statements have been prepared on a going
concern basis.
The Company had net current liabilities at the year end. The Company’s assets consist mainly of equity shares in
companies listed on recognised stock exchanges and are considered by the Board to be realisable within a short
timescale under normal market conditions. The Board has set overall limits for borrowing and reviews regularly the
Company’s level of gearing, cash flow projections and compliance with banking covenants, when applicable. The Board
has also performed stress testing and liquidity analysis.
The Company’s Articles require that at every fifth AGM, the Directors shall propose an Ordinary Resolution to effect that
the Company continues as an investment trust. An Ordinary Resolution approving the continuation of the Company for
the next five years was passed at the AGM on 4 February 2022. The next continuation vote will take place at the AGM to
be held in 2027.
As at 30 September 2025, the Company had a £30 million (2024: £30 million) revolving credit facility with The Royal Bank
of Scotland International Limited, London Branch. £22.5 million was drawn at the end of the financial year (2024: £22.5
million). The revolving credit facility matures on 23 June 2026. A replacement option will be sought in advance of the
expiry of the facility, or should the Board decide not to renew this facility, any outstanding borrowing would be repaid
through the proceeds of equity sales as required.
The Directors are mindful of the Principal Risks and Uncertainties disclosed in the Strategic Report on pages 19 to 22 and
they believe that the Company has adequate financial resources to continue its operational existence for a period of not
less than 12 months from the date of approval of this Report. They have arrived at this conclusion having confirmed that
the Company’s diversified portfolio of realisable securities is sufficiently liquid and could be used to meet short-term
funding requirements were they to arise. They have also reviewed the revenue and ongoing expenses forecasts for the
coming year, and expect to secure a replacement facility upon expiry of the current facility. Accordingly, the Directors
believe that it is appropriate to continue to adopt the going concern basis in preparing the financial statements.
As an investment fund the Company has the option under FRS 102, which it has taken, not to present a cash flow
statement. A cash flow statement is not required when an investment fund meets all the following conditions:
substantially all of the entity’s investments are highly liquid, substantially all of the entity’s investments are carried at
market value, and the entity provides a Statement of Changes in Equity. The Directors have assessed that the Company
meets all of these conditions.
The accounting policies applied are unchanged from the prior year and have been applied consistently.
All values are rounded to the nearest thousand pounds (£’000) except where indicated otherwise.
(b) Investments. Investments have been designated upon initial recognition as fair value through profit or loss in accordance
with IAS 39. As permitted by FRS 102, the Company has elected to apply the recognition and measurement provisions of
IAS 39 Financial Instruments. This is done because all investments are considered to form part of a group of financial
assets which is evaluated on a fair value basis, in accordance with the Company’s documented investment strategy, and
information about the grouping is provided internally on that basis.
Notes to the Financial Statements
For the year ended 30 September 2025
Aberdeen Equity Income Trust plc 77
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Investments are recognised and de-recognised at trade date where a purchase or sale is under a contract whose terms
require delivery to be made within the timeframe established by the market concerned and are measured initially at fair
value. Subsequent to initial recognition, investments are valued at fair value. For listed investments, this is deemed to be
bid market prices or closing prices for SETS stocks sourced from the London Stock Exchange. SETS is the London Stock
Exchange electronic trading service covering most of the market including all the FTSE All-Share and the most liquid AIM
constituents.
Gains and losses arising from changes in fair value are included in net profit or loss for the period as a capital item in the
Statement of Comprehensive Income and are ultimately recognised in the capital reserve.
(c) Investments in AAA-rated money market funds. Money market funds investments are used by the Company to provide
additional short term liquidity. Due to their short term nature, they are recognised in the Financial Statements as a current
asset and are included at fair value through profit and loss.
The Company invests in a AAA-rated money-market fund, Aberdeen Standard Liquidity Fund, which is managed by
abrdn Investments Limited. The share class of the money market fund in which the Company invests does not charge a
management fee.
(d) Income. Income from equity investments, including taxes deducted at source, is included in revenue by reference to the
date on which the investment is quoted ex-dividend. Special dividends are credited to revenue or capital according to
the circumstances. The Company carries out special cum-dividend and special ex-dividend trades as a portfolio
management tool to both enhance income and manage long-term positions. The income generated from such trades is
allocated to the revenue column of the Statement of Comprehensive Income and recognised on the date of the
transaction. This has the effect of increasing income and is offset by a decrease in unrealised gains/(losses) on
investments. Foreign income is converted at the exchange rate applicable at the time of receipt. Interest receivable on
cash at bank and in hand and on the money market fund is accounted for on an accruals basis.
(e) Expenses and interest payable. Expenses are accounted for on an accruals basis. Expenses are charged to capital when
they are incurred in connection with the maintenance or enhancement of the value of investments. In this respect, the
investment management fee and relevant finance costs are allocated between revenue and capital in line with the
Board’s expectation of returns from the Company’s investments over the long term in the form of revenue and capital
respectively (see notes 3 and 5).
Transaction costs incurred on the purchase and disposal of investments are recognised as a capital item in the
Statement of Comprehensive Income.
(f) Dividends payable. Interim dividends are accounted for when they are paid. Final dividends are accounted on the date
that they are approved by shareholders.
(g) Capital and reserves
Called-up share capital. Share capital represents the nominal value of Ordinary shares issued. This reserve is not
distributable.
Share premium account. The share premium account represents the premium above nominal value received by the
Company on issuing shares net of issue costs. This reserve is not distributable.
Capital redemption reserve. The capital redemption reserve represents the nominal value of Ordinary shares
repurchased and cancelled. This reserve is not distributable.
78 Aberdeen Equity Income Trust plc
Capital reserve. Gains or losses on realisation of investments and changes in fair values of investments are included within
the capital reserve. The capital element of the management fee and relevant finance costs are charged to this reserve.
Any associated tax relief is also credited to this reserve. The part of this reserve represented by realised capital gains is
available for distribution by way of a dividend and for the purpose of funding share buybacks.
Revenue reserve. The revenue reserve represents accumulated revenue profits retained by the Company that have not
currently been distributed to shareholders as a dividend.
(h) Taxation. The tax expense represents the sum of the tax currently payable and deferred tax. Tax payable is based on the
taxable profit for the year. Taxable profit differs from profit before tax 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 have been enacted or substantively enacted by the Statement of Financial Position date.
Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the
Statement of Financial Position date where transactions or events that result in an obligation to pay more or a right to
pay less tax in future have occurred at the Statement of Financial Position date measured on an undiscounted basis and
based on enacted tax rates. 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 underlying timing differences can be deducted.
Timing differences are differences arising between the Company’s taxable profits and its results as stated in the
accounts that arise from the inclusion of income and expenses in tax assessments in periods different from those in
which they are recognised in the accounts.
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.
(i) Cash and short term deposits. Cash comprises bank balances and cash held by the Company. Cash equivalents are
short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.
(j) Bank borrowings. Interest bearing bank loans and overdrafts are recorded initially at fair value, being the proceeds
received, net of direct issue costs. They are subsequently measured at amortised cost. Finance charges, including
premiums payable on settlement or redemption and direct issue costs, are accounted for on an accruals basis in the
Statement of Comprehensive Income using the effective interest rate method and are added to the carrying amount of
the instrument to the extent that they are not settled in the period in which they arise.
(k) Treasury shares. When the Company purchases its Ordinary shares to be held in treasury, the amount of the
consideration paid, which includes directly attributable costs, is net of any tax effect, and is recognised as a deduction
from the capital reserve. When these shares are sold subsequently, the amount received is recognised as an increase in
equity, and any resulting surplus on the transaction is transferred to the share premium account and any resulting deficit
is transferred from the capital reserve.
(l) Judgements and key sources of estimation uncertainty. Disclosure is required of judgements and estimates made by
management in applying the accounting policies that have a significant effect on the Financial Statements. Special
dividends are assessed and credited to capital or revenue according to their circumstances and are considered to
require significant judgement. The Directors do not consider there to be any significant estimates within the
financial statements.
Notes to the Financial Statements
Continued
Aberdeen Equity Income Trust plc 79
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
2. Income
2025 2024
£’000 £’000
Income from investments
UK investment incom
e
Ordinary dividends 9,419 9,283
Special dividends 932 644
Special dividends – capital – 219
Stock dividends 91 255
10,442 10,401
Overseas and Property Income Distribution investment incom
e
Ordinary dividends 1,981 2,321
Stock dividends – 131
1,981 2,452
12,423 12,853
Other income
Money-market interest 66 96
Underwriting commission 10 –
Bank interest – 5
76 101
Total income 12,499 12,954
Included in income from investments is £796,000 (2024: £1,161,000) relating to income from special cum-dividend and special
ex-dividend trades. This has an equal and opposite effect on unrealised gains/(losses) on investments.
80 Aberdeen Equity Income Trust plc
3. Investment management fee
2025 2024
£’000 £’000
Charged to revenue reserve 276 252
Charged to capital reserve 643 588
919 840
The Company has an agreement with abrdn Fund Managers Limited (“aFML”) for the provision of management services,
under which investment management services have been delegated to abrdn Investment Management Limited. The contract
is terminable by either party on not less than six months’ notice.
The management fee is charged at 0.55% of the Company’s net assets. The fee is payable quarterly in arrears and is
chargeable 30% to revenue and 70% to capital (see note 1(e) for further detail). The balance of fees due at the year end was
£256,000 (2024: £219,000).
4. Administrative expenses
2025 2024
£’000 £’000
Directors’ fees 131 136
Employers’ National Insurance 8 8
Fees payable to the Company’s Auditor (excluding VAT):
- for the audit of the annual financial statements 40 37
Professional fees 35 3
Depositary fees 20 19
Promotional activities
A
109 109
Other expenses 145 147
488 459
A
The Company has an agreement with aFML for the provision of promotional activities. Fees paid under the agreement during the year were £109,000 (2024: £109,000).
At 30 September 2025, £82,000 was due to aFML (2024: £55,000).
With the exception of fees payable to the Company’s auditor, irrecoverable VAT has been included under the relevant
expense line above. Irrecoverable VAT on fees payable to the Company’s auditor is included within other expenses.
The Company has no employees.
Notes to the Financial Statements
Continued
Aberdeen Equity Income Trust plc 81
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
5. Finance costs
2025 2024
£’000 £’000
On bank loans and overdrafts:
Charged to revenue reserve 423 454
Charged to capital reserve 989 1,060
1,412 1,514
Finance costs are chargeable 30% to revenue and 70% to capital (see note 1(e)).
6. Taxation
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
(a) Analysis of charge for the year
Overseas withholding tax 70 – 70 560 – 560
(b) Factors affecting total tax charge for the year. The corporation tax rate was 25% (2024: 25%). The total tax assessed for
the year is lower (2024: lower) than that resulting from applying the standard rate of corporation tax in the UK.
A reconciliation of the Company’s total tax charge is set out below:
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Return before taxation 11,312 22,052 33,364 11,570 8,023 19,593
Corporation tax at a rate of 25% (2024: 25%) 2,828 5,513 8,341 2,892 2,006 4,898
Effects of:
Non-taxable UK dividends (2,693) – (2,693) (2,563) – (2,563)
Non-taxable overseas dividends (342) – (342) (475) – (475)
Expenses not deductible for tax purposes 1 – 1 2 – 2
Gains on investments not relievable – (5,921) (5,921) – (2,418) (2,418)
Excess management expenses and loan
relationship losses
206 408 614 144 412 556
Irrecoverable overseas withholding tax 70 – 70 560 – 560
Total taxation 70 – 70 560 – 560
82 Aberdeen Equity Income Trust plc
At 30 September 2025, the Company had unutilised management expenses and loan relationship losses of £39,254,000
(2024: £36,810,000). No deferred tax asset has been recognised on the unutilised management expenses and loan
relationship losses as it is unlikely that the Company will generate suitable taxable profits in the future that these tax losses
could be deducted against.
7. Dividends on Ordinary shares
2025 2024
£’000 £’000
Amounts recognised as distributions to equity holders in the year:
Fourth interim dividend for 2024 of 5.80p per share (2023: 5.70p) 2,771 2,724
First interim dividend for 2025 of 5.70p per share (2024: 5.70p) 2,724 2,723
Second interim dividend for 2025 of 5.70p per share (2024: 5.70p) 2,732 2,724
Third interim dividend for 2025 of 5.70p per share (2024: 5.70p) 2,760 2,723
10,987 10,894
The fourth interim dividend of 5.90p per Ordinary share, payable on 16 January 2026 to shareholders on the register on 12
December 2025 has not been included as a liability in the financial statements.
The total dividends paid and proposed in respect of the financial year, which is the basis on which the requirements of Sections
1158-1159 of the Corporation Tax Act 2010 are considered, are set out below.
2025 2024
£’000 £’000
First interim dividend for 2025 of 5.70p per share (2024: 5.70p) 2,724 2,723
Second interim dividend for 2025 of 5.70p per share (2024: 5.70p) 2,732 2,724
Third interim dividend for 2025 of 5.70p per share (2024: 5.70p) 2,760 2,723
Fourth interim dividend for 2025 of 5.90p per share (2024: 5.80p) 2,886 2,771
11,102 10,941
Notes to the Financial Statements
Continued
Aberdeen Equity Income Trust plc 83
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
8. Return per Ordinary share
2025 2024
£’000 p £’000 p
Basic
Revenue return 11,242 23.43 11,010 23.05
Capital return 22,052 45.95 8,023 16.80
Total return 33,294 69.38 19,033 39.85
Weighted average number of Ordinary shares in issue
A
47,989,878 47,766,631
A
Calculated excluding shares held in Treasury where applicable.
9. Investments
2025 2024
£’000 £’000
Fair value through profit or loss
Opening book cost 185,040 183,673
Opening fair value losses on investments held (7,062) (17,939)
Opening fair value 177,978 165,734
Movements in the year:
Purchases at cost 64,039 80,819
Sales – proceeds (60,901) (78,246)
Gains on investments 23,683 9,671
Closing fair value 204,799 177,978
Closing book cost 192,186 185,040
Closing fair value gains/(losses) on investments held 12,613 (7,062)
Closing fair value 204,799 177,978
The Company received £60,901,000 (2024: £78,246,000) from investments sold in the year. The book cost of these investments
when they were purchased was £56,893,000 (2024: £79,452,000). 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.
84 Aberdeen Equity Income Trust plc
Transaction costs. During the year, expenses were incurred in acquiring or disposing of investments classified as fair value
through profit or loss. These have been expensed through capital and are included within losses on investments in the
Statement of Comprehensive Income. The total costs were as follows:
2025 2024
£’000 £’000
Purchases 341 408
Sales 28 48
Total 369 456
10. Debtors: amounts falling due within one year
2025 2024
£’000 £’000
Net dividends and interest receivable 631 1,377
Other debtors 38 34
669 1,411
11. Creditors: amounts falling due within one year
2025 2024
£’000 £’000
Bank loan 22,500 22,500
Unamortised loan arrangement expenses (16) (38)
22,484 22,462
Other creditors
Investment management fee payable 256 219
Sundry creditors 215 195
471 414
On 23 June 2023, the Company agreed a new three year £30 million revolving credit facility with the Royal Bank of Scotland
International Limited, which expires on 23 June 2026.
The facility agreement contains the following covenants:
– The Company’s gross assets will not be less than £120 million at any time.
– The Company’s total net debt will not exceed 25% of net asset value at any time.
– The Company should hold a minimum of 45 eligible investments.
Notes to the Financial Statements
Continued
Aberdeen Equity Income Trust plc 85
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
All covenants were complied with throughout the year.
At 30 September 2025 and at the date of signing this Report, £22.5 million had been drawn down from the facility, at an all-in
SONIA rate of 5.47%. This is due to mature on 23 December 2025.
12. Called-up share capital
2025 2024
£’000 £’000
Issued and fully paid:
Ordinary shares of 25p each
Opening balance of 47,781,522 (2024: 47,646,522) Ordinary shares 11,946 11,912
Issue of 1,005,000 (2024: 135,00) Ordinary shares 251 34
Closing balance of 48,786,522 (2024: 47,781,522) Ordinary shares 12,197 11,946
Treasury shares
Opening balance of 1,397,245 (2024:1,532,245 ) Treasury shares 349 383
Issue of 1,005,000 (2024: 135,000) Ordinary shares from Treasury (251) (34)
Closing balance of 392,245 (2024: 1,397,245) treasury shares 98 349
12,295 12,295
During the year, 1,005,000 Ordinary shares (2024: 135,000) were issued from Treasury for a consideration of £3,612,000
(2024: £403,000). At the year end the number of shares held in Treasury was 392,245 (2024: 1,397,245).
Since the year end the Company has issued a further 135,000 Ordinary shares from Treasury for a total consideration
of £520,000.
13. Capital reserve
2025 2024
£’000 £’000
Opening balance 71,161 62,735
Unrealised gains on investment holdings 19,675 10,877
Gains/(losses) on realisation of investments at fair value 4,008 (1,206)
Currency gains 1 –
Investment management fee charged to capital (643) (588)
Finance costs charged to capital (989) (1,060)
Issue of Ordinary shares from treasury 3,180 403
Closing balance 96,393 71,161
86 Aberdeen Equity Income Trust plc
The capital reserve includes investment holding gains amounting to £12,613,000 (2024: losses of £7,281,000) as disclosed in
note 9.
14. Net asset value per share
The net asset value per share and the net assets attributable to Ordinary shares at the end of the year calculated in
accordance with the Articles of Association were as follows:
2025 2024
Basic
Total shareholders’ funds (£’000) 184,334 158,415
Number of Ordinary shares in issue at year end
A
48,786,522 47,781,522
Net asset value per share 377.84p 331.54p
A
Excludes shares in issue held in treasury where applicable.
15. Financial instruments
Risk management. The Company’s financial instruments comprise securities and other investments, cash balances, 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 Company also has the ability to enter into derivative transactions for the purpose of
managing currency and market risks arising from the Company’s activities.
The main risks the Company faces from its financial instruments are (i) market price risk (comprising interest rate risk, currency
risk and other price risk), (ii) liquidity risk and (iii) credit risk.
The Board regularly reviews and agrees policies for managing each of these risks. The Manager’s policies for managing 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 other price risk.
Interest rate risk
Interest rate movements may affect:
- the level of income receivable on cash deposits;
- interest payable on the Company’s variable rate borrowings.
The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into
account when making investment and borrowing decisions.
It is the Company’s policy to increase its exposure to equity market price risk through the judicious use of borrowings.
When borrowed funds are invested in equities, the effect is to magnify the impact on Shareholders’ funds of changes -
both positive and negative - of revenue and capital returns.
Notes to the Financial Statements
Continued
Aberdeen Equity Income Trust plc 87
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Interest rate profile
The interest rate risk profile of the portfolio of financial assets and liabilities at the Statement of Financial Position date was
as follows:
Weighted
average Weighted
period for average
which interest Fixed Floating
rate is fixed rate rate rate
As at 30 September 2025 Years % £’000 £’000
Assets
Investments in AAA-rated money-market funds - 4.15 - 1,577
Cash deposits - 2.47 - 244
Total assets - - - 1,821
Liabilities
Bank loans 0.25 5.47 22,484 -
Total liabilities - - 22,484 -
Weighted
average Weighted
period for average
which interest Fixed Floating
rate is fixed rate rate rate
As at 30 September 2024 Years % £’000 £’000
Assets
Investments in AAA-rated money-market funds - 5.11 - 1,311
Cash deposits - 3.45 - 591
Total assets - - - 1,902
Liabilities
Bank loans 0.25 6.45 22,462 -
Total liabilities - - 22,462 -
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 investments in AAA-rated money-market funds and cash deposits on call earning
interest at prevailing market rates.
All financial liabilities are measured at amortised cost.
88 Aberdeen Equity Income Trust plc
Maturity profile. The Company did not hold any assets at 30 September 2025 or 30 September 2024 that had a maturity
date. The £22.5 million (2024: £22.5 million) loan drawn down had a maturity date of 23 December 2025 (2024: 23
December 2024) at the Statement of Financial Position date.
Interest rate sensitivity. The sensitivity analysis below has been determined based on the exposure to interest rates at the
Statement of Financial Position date and with the stipulated change taking place at the beginning of the financial year
and held constant throughout the reporting period in the case of instruments that have floating rates.
If interest rates had been 100 basis points higher or lower and all other variables were held constant, the Company’s:
- profit for the year ended 30 September 2025 would decrease/increase by £207,000 (2024: decrease/increase by
£206,000). This is mainly attributable to the Company’s exposure to interest rates on its fixed rate borrowings and floating
rate cash balances.
Currency risk. All of the Company’s investments are in Sterling. The Company can be exposed to currency risk when it
receives dividends in currencies other than Sterling. The current policy is not to hedge this risk, but this policy is kept under
constant review by the Board.
Other price risk. Other price risks (i.e. changes in market prices other than those arising from interest rate or currency risk)
may affect the value of the quoted investments.
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 sector. The Manager actively monitors market prices throughout the year and reports to
the Board. The investments held by the Company are listed on the London Stock Exchange.
Other price risk sensitivity. If market prices at the Statement of Financial Position date had been 10% higher or lower while
all other variables remained constant, the return attributable to ordinary shareholders and equity for the year ended 30
September 2025 would have increased/decreased by £20,480,000 (2024: increase/decrease of £17,798,000). This is
based on the Company’s equity portfolio held at each year end.
(ii) Liquidity risk. This is the risk that the Company will encounter difficulty in meeting obligations associated with
financial liabilities.
Liquidity risk is not considered to be significant as the Company’s assets comprise mainly readily realisable securities,
which can be sold to meet funding commitments if necessary. Short-term flexibility is achieved through the use of loan
and overdraft facilities (note 11).
(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 risk is not significant, and is managed as follows:
- where the investment manager makes an investment in a bond, corporate or otherwise, the credit rating of the issuer is
taken into account so as to minimise the risk to the Company of default;
- investment transactions are carried out with a large number of brokers, whose credit-standing and credit rating is
reviewed periodically by the investment manager, and limits are set on the amount that may be due from any one broker;
- cash and money invested in AAA money market funds are held only with reputable institutions.
None of the Company’s financial assets are secured by collateral or other credit enhancements.
Notes to the Financial Statements
Continued
Aberdeen Equity Income Trust plc 89
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Credit risk exposure. In summary, compared to the amount in the Statement of Financial Position, the maximum exposure
to credit risk at 30 September was as follows:
2025 2024
Statement of Statement of
Financial
Position
Maximum
exposure
Financial
Position
Maximum
exposure
£’000 £’000 £’000 £’000
Current assets
Debtors 669 669 1,411 1,411
Investments in AAA-rated money market funds 1,577 1,577 1,311 1,311
Cash and short term deposits 244 244 591 591
2,490 2,490 3,313 3,313
None of the Company’s financial assets is past due or impaired.
Fair values of financial assets and financial liabilities. The fair value of borrowings is not materially different to the accounts
value in the financial statements of £22,484,000 (note 11).
16. Fair value hierarchy
FRS 102 requires an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the
inputs used in making the measurements. The fair value hierarchy shall have the following classifications:
Level 1: unadjusted quoted prices in an active market for identical assets or liabilities that the entity can access at the
measurement date.
Level 2: inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the
asset or liability, either directly or indirectly.
Level 3: inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.
All of the Company’s investments are in quoted equities (2024: same) that are actively traded on recognised stock exchanges,
with their fair value being determined by reference to their quoted bid prices at the reporting date. The total value of the
investments (2025: £204,799,000; 2024: £177,978,000) have therefore been deemed as Level 1. The investment in AAA rated
money market funds of £1,577,000 (2024: £1,311,000) is considered to be Level 2 under the fair value hierarchy of FRS 102 due
to not trading in an active market.
90 Aberdeen Equity Income Trust plc
17. 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 Board normally seeks to limit gearing to 15% of net assets. At the year end the Company had gearing of 11.2%
of net assets (2024: 13.0%) (see page 92 for more details).
The Board monitors and reviews the broad structure of the Company’s capital on an ongoing basis. This review includes the
nature and planned level of gearing, which takes account of the Manager’s views on the market 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. Any year end positions are presented in the Statement of Financial Position.
The Company does not have any externally imposed capital requirements.
18. Contingent liabilities
As at 30 September 2025 there were no contingent liabilities (2024: none).
19. Segmental Information
The Company is engaged in a single segment of business, which is to invest 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 on the
Company as one segment.
20. Related party transactions and transactions with the Manager
Related party transactions. Fees payable during the year to the Directors and their interests in shares of the Company are
considered to be related party transactions and are disclosed within the Directors’ Remuneration Report on pages 54 to 58.
The balance of fees due to Directors at the year end was £33,000 (2024: £31,000).
Transactions with the Manager. abrdn Fund Managers Limited received fees for its services as Manager. Further details are
provided in notes 3 and 4.
Notes to the Financial Statements
Continued
Aberdeen Equity Income Trust plc 91
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Alternative performance measures (‘APM’) 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 FRS 102 and the AIC SORP.
The Directors assess the Company’s performance against a range of criteria which are viewed as particularly relevant for closed-
ended investment companies. Where the calculation of an APM is not detailed within the financial statements, an explanation of the
methodology employed is provided below:
Discount & premium
A discount is the percentage by which the market price of an investment trust is lower than the Net Asset Value (“NAV”) per share. A
premium is the percentage by which the market price per share of an investment trust exceeds the NAV per share.
30 September 2025 30 September 2024
Share price 378.00p 321.50p
Net asset value per share 377.84p 331.54p
Premium/(discount) 0.0% (3.0%)
Dividend yield
Dividend yield measures the dividend per share as a percentage of the share price per share.
30 September 2025 30 September 2024
Share price 378.00p 321.50p
Dividend per share 23.00p 22.90p
Dividend yield 6.1% 7.1%
Alternative Performance Measures
92 Aberdeen Equity Income Trust plc
Net gearing
Net gearing measures the total borrowings less cash and cash equivalents divided by Shareholders’ funds, expressed as a percentage.
Under AIC reporting guidance cash and cash equivalents includes amounts due from and to brokers at the period end as well as cash
and short-term deposits.
30 September 2025 30 September 2024
£’000 £’000
Total borrowings a 22,484 22,462
Cash and short-term deposits 244 591
Investments in AAA-rated money-market funds 1,577 1,311
Total cash and investments in AAA-rated money-market funds b 1,821 1,902
Gearing (borrowings less cash & investments in AAA-rated money-
market funds)
c=(a-b) 20,663 20,560
Shareholders’ funds d 184,334 158,415
Net gearing e=(c/d) 11.2% 13.0%
Ongoing charges ratio
The ongoing charges ratio has been calculated in accordance with guidance issued by the AIC, which is defined as the total of
investment management fees and recurring administrative expenses and expressed as a percentage of the average daily net asset
values published throughout the period.
30 September 2025 30 September 2024
£’000 £’000
Investment management fees 919 840
Administrative expenses 488 459
Less: non-recurring charges
A
(28) (1)
Ongoing charges a 1,379 1,298
Average net assets b 164,305 150,930
Ongoing charges ratio c=(a/b) 0.84% 0.86%
A
Comprises professional fees not expected to recur.
Alternative Performance Measures
Continued
Aberdeen Equity Income Trust plc 93
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
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 30 September 2025 NAV Price
Opening at 1 October 2024 a 331.5p 321.5p
Closing at 30 September 2025 b 377.8p 378.0p
Price movements c=(b/a)-1 14.0% 17.6%
Dividend reinvestment
A
d 7.8% 8.1%
Total return c+d 21.8% 25.7%
Share
Year ended 30 September 2024 NAV Price
Opening at 1 October 2023 a 314.6p 314.0p
Closing at 30 September 2024 b 331.5p 321.5p
Price movements c=(b/a)-1 5.4% 2.4%
Dividend reinvestment
A
d 7.9% 8.0%
Total return c+d 13.3% 10.4%
A
NAV total return involves investing the net dividend in the NAV of the Company with debt at fair 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.
94 Aberdeen Equity Income Trust plc
Corporate
Information
The Company’s Manager is a
subsidiary of Aberdeen Group plc.
The Aberdeen Group’s assets under
management and administration
were £542.4 billion as at 30
September 2025.
Aberdeen Equity Income Trust plc 95
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
abrdn Investment Management Limited
The Company’s Manager is abrdn Fund Managers Limited
which has delegated portfolio management to abrdn
Investment Management Limited, a subsidiary of
Aberdeen Group plc whose assets under management
and administration were £542.4 billion as at
30 September 2025.
The team within Aberdeen managing the Company’s
portfolio of investments has been headed up by
Thomas Moore since 2011,
The Investment Team Senior Managers
Thomas Moore
Senior Investment Director, UK Equities
Thomas is a Senior Investment Director within the UK
equities team at Aberdeen. He began his career in 1998,
joining Schroder Investment Management as Assistant
Fund Manager, UK Equities. He joined Aberdeen in 2002 as
an Investment Analyst. He then managed EMEA portfolios
before moving to the UK equities team in 2006.
Wes McCoy
Senior Investment Director, UK Equities
Wes is a Senior Investment Director within the UK Equities
team at Aberdeen and is portfolio manager for the UK
Value Equity fund. Wes joined Aberdeen in 1999 as an
Investment Director covering UK equities where he was
responsible for the management of a wide range of
institutional mandates, including the creation and launch
of the UK Value Equity strategy. He left the industry in 2008
to work with a charity in Africa. He re-joined Aberdeen in
October 2012 as Investment Director in global equities
before moving to manage UK equities in April 2015.
While Wes is not involved in the day-to-day management
of the portfolio, he maintains a watching brief over the
portfolio and regularly discusses decisions and investment
opportunities with Thomas.
Information about the Investment Mana
g
er
96 Aberdeen Equity Income Trust plc
Keeping You Informed
Further information about the Company may be found on
its dedicated website: aberdeenequityincome.com
This provides access to information on the Company’s
share price performance, capital structure, London Stock
Exchange announcements, current and historic Annual
and Half-Yearly Reports, and the latest monthly factsheet
on the Company issued by the Manager.
Details are also available at: invtrusts.co.uk
X (Formerly Twitter): @AberdeenTrusts
LinkedIn: Aberdeen Investment Trusts
Facebook: Aberdeen Investment Trusts
YouTube: @Aberdeen Investment Trusts
You can also register for regular e-mail updates by visiting
aberdeenequityincome.com or by scanning the QR code
below using the camera on your smartphone.
Investor Warning: Be alert to share fraud and
boiler room scams
Aberdeen has been contacted by investors informing us
that they have received telephone calls and emails from
people who have offered to buy their investment
company shares, purporting to work for Aberdeen or for
third party firms. Aberdeen has also been notified of
emails claiming that certain investment companies under
our management have issued claims in the courts against
individuals. These may be scams which attempt to gain
your personal information with which to commit identity
fraud or could be ‘boiler room’ scams where a payment
from you is required to release the supposed payment for
your shares. These callers/senders do not work for
Aberdeen and any third party making such offers/claims
has no link with Aberdeen.
Aberdeen does not ‘cold call’ investors in this way. If you
have any doubt over the veracity of a caller, do not offer
any personal information and end the call.
The Financial Conduct Authority provides advice with
respect to share fraud and boiler room scams at:
fca.org.uk/consumers/scams.
Shareholder Enquiries
For queries regarding shareholdings, lost certificates,
dividend payments, registered details and related
matters, shareholders holding their shares directly in the
Company are advised to contact the Registrars (see
Contact Addresses). Changes of address must be notified
to the Registrars in writing.
Any general queries, comments, or complaints, including
for the specific attention of the Chair or Senior
Independent Director, should be directed to the Company
Secretary in writing (see Contact Addresses) or by email
to: CEF.CoSec@aberdeenplc.com
Suitable for Retail/NMPI Status
The Company’s shares are intended for investors,
primarily in the UK, including retail investors, professionally
advised private clients and institutional investors. Investors
should consider consulting a financial adviser who
specialises in advising on the acquisition of shares and
other securities before acquiring shares. Investors should
be capable of evaluating the risks and merits of such an
investment and should have sufficient resources to bear
any loss that may result.
The Company currently conducts its affairs so that the
securities issued by the Company can be recommended
by a financial adviser to ordinary retail investors in
accordance with the Financial Conduct Authority’s rules in
relation to non-mainstream pooled investments (“NMPIs”)
and intends to continue to do so for the foreseeable future.
The Company’s securities are excluded from the Financial
Conduct Authority’s restrictions which apply to NMPIs
because they are securities issued by an investment trust.
Key Information Document (“KID”)
The KID relating to the Company and published by the
Manager can be found on the Company’s website
although it should be noted that following the forbearance
granted by the FCA to the investment trust industry in
September 2024, there is no obligation upon the Company
or the Manager to produce a KID. The Manager continues
to provide a modified KID for the Company as it is aware
that a number of platforms/market participants still
require prospective investors to confirm that they have
read the KID prior to a buy order being placed. In addition
to the KID, the Manager has developed a Statement of
Operating Expenses which is incorporated into the
Company’s factsheet, and which can be found on the
Company’s website.
Investor Information
Aberdeen Equity Income Trust plc 97
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Alternative Investment Fund Managers
Directive (“AIFMD”) and Pre-Investment
Disclosure Document (“PIDD”)
The Company has appointed abrdn Fund Managers
Limited as its alternative investment fund manager and
BNP Paribas Securities S.A., London Branch as its
Depositary under the AIFMD.
The AIFMD requires abrdn Fund Managers Limited, as the
Company’s AIFM, to make available to investors certain
information prior to such investors’ investment in the
Company. Details of the leverage and risk policies which
the Company is required to have in place under the AIFMD
are published in the Company’s PIDD which can be found
on its website: aberdeenequityincome.com. The periodic
disclosures required to be made by the AIFM under the
AIFMD are set out on page 102.
How to Invest
Investors can buy and sell shares in the Company directly
through a stockbroker or indirectly through a lawyer,
accountant, or other professional adviser.
Alternatively, for private investors, there are a number of
online dealing platforms that offer share dealing, ISAs and
other means to invest in the Company. Real-time
execution-only stockbroking services allow you to trade
online, manage your portfolio and buy UK listed shares.
These sites do not give advice. Some comparison websites
also look at dealing rates and terms.
Discretionary Private Client Stockbrokers
If you have a large sum to invest, you may wish to contact
a discretionary private client stockbroker. They can
manage your entire portfolio of shares and will advise you
on your investments. To find a private client stockbroker
visit The Personal Investment Management and Financial
Advice Association at: pimfa.co.uk
Financial Advisers
To find an adviser who recommends on investment trusts
visit: unbiased.co.uk
Regulation of Stockbrokers
Before approaching a stockbroker, always check that
they are regulated by the Financial Conduct Authority:
fca.org.uk/firms/financial-services-register
Consumer Duty
The FCA’s Consumer Duty rules, published in July 2022, are
a fundamental component of the FCA’s consumer
protection strategy and aim to improve outcomes for
retail consumers across the entire financial services
industry, through the assessment of various outcomes,
one of which is an assessment of whether a product
provides value. Under Consumer Duty, the Manager is the
product ‘manufacturer’ of the Company and therefore
the Manager is required to publish an annual assessment
of value. The Manager uses its proprietary assessment
methodology to assess the Company as ‘expected to
provide fair value for the reasonably foreseeable future.’
The Board has reviewed the Manager’s basis of
assessment, and no concerns have been identified
with either the assessment method or the outcome
of the assessment.
How to Attend and Vote at
Company Meetings
Investors who hold their shares through a platform or
share plan provider (for example Hargreaves Lansdown,
Interactive Investor or AJ Bell) and would like to attend and
vote at Company meetings (including Annual General
Meetings) should contact their platform or share plan
provider directly to make arrangements.
Investors who hold their shares through platforms and
have their shares held through platform nominees, may
not necessarily receive notification of general meetings
and are advised to keep themselves informed of
Company business by referring to the Company’s
website. Where voting is required, and the Board
encourages shareholders to vote at all general meetings
of the Company, shareholders with their holdings in
nominees, need to instruct the nominee to vote on their
behalf and should do so in good time before the meetings.
Further guidance on how to attend and vote at Company
meetings can be found in the FAQs under Contact and
Support at aberdeenequityincome.com
98 Aberdeen Equity Income Trust plc
Note
Please remember that past performance is not a guide to
the future. Stock market and currency movements may
cause the value of shares and the income from them to
fall as well as rise and investors may not get back the
amount they originally invested.
As with all equity investments, the value of investment
trusts purchased will immediately be reduced by the
difference between the buying and selling prices of the
shares, known as the market maker’s spread.
Investors should further bear in mind that the value of
any tax relief will depend on the individual circumstances
of the investor and that tax rates and reliefs, as well as
the tax treatment of ISAs, may be changed by
future legislation.
The information on pages 96 to 98 has been approved for
the purposes of Section 21 of the Financial Services and
Markets Act 2000 (as amended by the Financial Services
Act 2012) by abrdn Fund Managers Limited which is
authorised and regulated by the Financial Conduct
Authority in the United Kingdom
.
Investor Information
Continued
Aberdeen Equity Income Trust plc 99
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Aberdeen or Aberdeen Group plc
The Aberdeen Group plc group of companies.
AFML or AIFM or Manager
abrdn Fund Managers Limited (“AFML”), is a wholly owned
subsidiary of abrdn Holdings Limited, which is part of
Aberdeen Group plc, and acts as the alternative
investment fund manager (“AIFM”) for the Company.
AFML is authorised and regulated by the Financial
Conduct Authority. The Manager has delegated portfolio
management to abrdn Investment Management Limited.
AIC
The Association of Investment Companies.
AIFMD
The UK version of the Alternative Investment Fund
Managers Directive and all implanting and delegating
legislation thereunder, as it forms part of UK law following
the UK’s departure from the EU. The AIFMD was originally
European legislation which created a European-wide
framework for regulating managers of ‘alternative
investment funds’ (“AIFs”). It is designed to regulate any
fund which is not a UCITS fund, and which is managed
and/or marketed in the EU (and now, separately, the UK).
The Company has been designated as an AIF.
Alternative Performance Measures or APMs
Numerical measures of the Company’s current, historical
or future performance, financial position, other than the
financial measures defined or specified in the applicable
financial framework. The Company’s applicable financial
framework includes FRS102 and the AIC SORP.
Capital Return Per Share
The realised and unrealised gains and losses of the
investment portfolio net of costs, interest and tax of the
Company that have been allocated to capital, divided by
the weighted average number of shares in issue during
the year.
Closed-End Fund
A collective investment scheme which has a fixed number
of shares which are not redeemable from the fund itself.
Unlike open-ended funds, new shares/units are not
created by managers to meet demand from investors;
instead, shares are purchased (or sold) only in the market.
Closed-end funds are normally listed on a recognised
stock exchange, such as the London Stock Exchange, and
shares can be bought and sold on that exchange.
Depositary
A depositary is responsible for cash monitoring, the
custody and safeguarding of the Company’s financial
instruments and monitoring the Company’s compliance
with investment limits and leverage requirements. The
Company’s Depositary is BNP Paribas Securities S.A.,
London Branch.
Discount
The amount by which the market price per share of an
Investment Trust is lower than the Net Asset Value per
share. The discount is normally expressed as a
percentage of the Net Asset Value per share.
Dividend Cover
Revenue Return Per Share divided by dividends per share
expressed as a ratio.
Dividend per Share or DPS
The total of all dividends paid by the Company for the
financial year on a per share basis.
Dividend Yield
The annual dividend expressed as a percentage of the
share price.
Earnings per Share or EPS
The net income after tax of the Company divided by the
weighted average number of shares in issue during the
year. In an Investment Trust this is made up of Revenue
Return Per Share and Capital Return Per Share.
ESG
Environmental, social and governance (“ESG”) factors,
which are considered in all investment decisions.
Ex-dividend date (“XD date”)
The day before the Record Date. The XD date is normally
about a month before the dividend is paid.
FCA
Financial Conduct Authority.
Gearing or Net Gearing
Gearing is calculated by dividing total borrowings less
cash and cash equivalents by Shareholders’ Funds,
expressed as a percentage.
Glossary of Terms
100 Aberdeen Equity Income Trust plc
Index
A market index calculates the average performance of its
constituents, normally on a weighted basis. It provides a
means against which the performance of individual
instruments can be assessed.
Investment Manager
abrdn Investment Management Limited
Investment Trust
A type of Closed-End Fund which invests in other
securities, allowing shareholders to share the risks, and
returns, of collective investment.
Key Information Document or KID
The UK Packaged Retail and Insurance-based Investment
Products (“PRIIPS”) Regulation requires the PRIIP
‘manufacturer,’ to prepare a Key Information Document
(“KID”) and make available to retail investors prior to them
making any investment decision.
In September 2024, the FCA granted forbearance to the
investment trust industry which means that the Manager is
no longer required to produce a KID. However, the
Manager continues to publish a modified KID for the
Company largely because a number of platforms/market
participants still require prospective investors to confirm
that they have read the KID prior to a buy order being
placed. The modified KID is available via the Company’s
website and included in its factsheet. In addition to the
KID, the Manager has developed a Statement of
Operating Expenses which is incorporated into the
Company’s factsheet, and which can be found on the
Company’s website.
Leverage
For the purposes of the AIFMD, leverage is any method
which increases the Company’s exposure, including the
borrowing of cash and the use of derivatives. It is
expressed as a ratio between the Company’s exposure
and its Net Asset Value and can be calculated on a gross
and a commitment method. Under the gross method,
exposure represents the sum of the Company’s positions
after the deduction of sterling cash balances, without
taking into account any hedging and netting
arrangements. Under the commitment method, exposure
is calculated without the deduction of sterling cash
balances and after certain hedging and netting positions
are offset against each other.
Market Capitalisation
The latest price of an Ordinary share multiplied by the
number of shares in issue.
Net Asset Value, NAV, or Shareholders’ Funds
The value of total assets less liabilities. Liabilities for this
purpose include current and long-term liabilities. The Net
Asset Value divided by the number of shares in issue
produces the Net Asset Value per Ordinary share.
Ongoing Charges Ratio
Ratio of total expenses as a percentage of average daily
Shareholders’ Funds calculated as per the AIC’s industry
standard method.
Portfolio Manager
The Company’s Portfolio Manager is Thomas Moore, a
Senior Investment Director within the UK Equities team at
Aberdeen. Thomas has managed the Company’s
portfolio, on behalf of the Manager, since 2011.
Pre-Investment Disclosure Document
(“PIDD”)
The AIFM and the Company are required to make certain
disclosures available to investors in accordance with the
AIFMD. Those disclosures that are required to be made
pre-investment are included within a PIDD, which can be
found on the Company’s website.
Premium
The amount by which the market price per share of an
Investment Trust exceeds the Net Asset Value per share.
The premium is normally expressed as a percentage of
the Net Asset Value per share.
Price/Earnings Ratio
This is calculated by dividing the market price per share by
the earnings per share. The calculation assumes no
change in earnings but in practice the multiple reflects the
stock market’s view of a company’s prospects and profit
growth potential.
Glossary of Terms
Continued
Aberdeen Equity Income Trust plc 101
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Prior Charges
The name given to all borrowings including debentures,
loans and overdrafts that are to be used for investment
purposes, reciprocal foreign currency loans, currency
facilities to the extent that they are drawn down, index-
linked securities, and all types of preference or preferred
capital irrespective of the time until repayment.
Realised Gains/Losses
The profit/loss on the sale of investments during the year.
Record Date
The date when an investor needs to be holding a share in
order to qualify for a forthcoming dividend.
Reference Index
The Company’s Reference Index is the FTSE All-Share
Index. The Company does not have a benchmark but uses
the Reference Index as a comparator.
Relative Performance
Performance of the Company relative to the FTSE All-
Share Index.
Retail Prices Index (“RPI”)
One of the main measures of consumer inflation in the UK,
produced by the Office for National Statistics.
Revenue Return Per Share
The net income from dividends and interest received,
after costs, interest and tax allocated to revenue, divided
by the weighted average number of shares in issue during
the year.
Revenue Reserves
The total of undistributed revenue earnings from prior
years. This is available for distribution to shareholders by
way of dividend.
Statement of Operating Expenses or SOE
Working with a number of market participants, Aberdeen
has developed a SOE in order to provide prospective
investors with a succinct and comparable summary of the
expenses incurred by the Company in administering its
portfolio. These expenses are deducted from the NAV, not
the share price, which is the inference from the KID.
Aberdeen hopes that this might form part of the disclosure
regime that will replace the PRIIPs regulations.
Total Assets
Total assets less current liabilities (before deducting Prior
Charge as defined above), as per the Statement of
Financial Position.
Total Return
The theoretical return including reinvesting each dividend
in additional shares in the Company on the day that the
shares go ex-dividend. The NAV Total Return involves
investing the same net dividend in the NAV of the
Company on the ex-dividend date.
Unrealised Gains/Losses
The profit/loss on the revaluation of the investment
portfolio at the end of the year.
102 Aberdeen Equity Income Trust plc
abrdn Fund Managers Limited (“AFML”) and the Company are required to make certain disclosures available to
investors in accordance with the Alternative Investment Fund Managers Directive (“AIFMD”). Those disclosures that are
required to be made pre-investment are included within a pre-investment disclosure document (“PIDD”) which can be
found on the Company’s website.
There have been no material changes to the disclosures contained within the PIDD since its most recent update in
November 2024.
The periodic disclosures as required under the AIFMD to investors are made below:
· information on the investment strategy, geographic and sector investment focus and principal stock exposures is
included in the Strategic Report.
· none of the Company’s assets are subject to special arrangements arising from their illiquid nature.
· the Strategic Report, note 15 to the financial statements and the PIDD together set out the risk profile and risk
management systems in place. There have been no changes to the risk management systems in place in the period
under review and no breaches of any of the risk limits set, with no breach expected.
· there are no new arrangements for managing the liquidity of the Company or any material changes to the liquidity
management systems and procedures employed by AFML; and
· all authorised Alternative Investment Fund Managers are required to comply with the AIFMD Remuneration Code. In
accordance with the Remuneration Code, the AIFM’s remuneration policy is available from the Company Secretary,
abrdn Holdings Limited, on request, and the remuneration disclosures in respect of the AIFM’s reporting period for the
year ended 31 December 2024 are available on the Company’s website.
Leverage
The table below sets out the current maximum permitted limit and actual level of leverage for the Company:
Gross Method Commitment Method
Maximum level of leverage 3.00:1 2.00:1
Actual level at 30 September 2025 1.23:1 1.25:1
There have been no breaches of the maximum level during the period and no changes to the maximum level of
leverage employed by the Company. There have been no changes to the circumstances in which the Company may be
required to post assets as collateral and no guarantees granted under the leveraging arrangement. Changes to the
information contained either within this Annual Report or the PIDD in relation to any special arrangements in place, the
maximum level of leverage which AFML may employ on behalf of the Company, the right of use of collateral or any
guarantee granted under any leveraging arrangement, or any change to the position in relation to any discharge of
liability by the Depositary will be notified via a regulatory news service without undue delay in accordance with
the AIFMD. The information on this page has been approved for the purposes of Section 21 of the Financial Services and
Markets Act 2000 (as amended by the Financial Services Act 2012) by abrdn Fund Managers Limited which is authorised
and regulated by the Financial Conduct Authority in the United Kingdom
FCA Statement of Forbearance September 2024
Following the FCA's September 2024 forbearance notice regarding the PRIIPS KID disclosures of costs for UK listed
investment trusts, and the subsequent legislative changes on 22 November 2024, AFML has ceased to publish these
figures and instead has collaborated with other participants in the industry to develop the Statement of Operating
Expenses to aid understanding of the costs and expenses involved in managing an investment trust. AFML believe that
this is more compatible with our Consumer Duty obligations, by providing a consistent basis to allow end-consumers to
meaningfully compare the actual costs incurred when investing in these investment trusts.
AIFMD Disclosures
(
Unaudited
)
Aberdeen Equity Income Trust plc 103
General
The Annual General Meeting
of Aberdeen Equity Income Trust plc
will be held at Aberdeen Group plc, 18
Bishops Square, London, E1 6EG on
Tuesday, 17 February 2026 at 11:30 am.
104 Aberdeen Equity Income Trust plc
NOTICE IS HEREBY GIVEN that the thirty fourth Annual General Meeting of Aberdeen Equity Income Trust plc (the
“Company”) will be held at Aberdeen Group plc, 18 Bishops Square, London, E1 6EG on Tuesday, 17 February 2026 at
11:30 am for the following purposes:
Ordinary Resolutions
To consider and, if thought fit, pass resolutions 1 to 11 (inclusive) as ordinary resolutions:
1. To receive and adopt the audited financial statements of the Company for the financial year ended 30 September
2025, together with the reports of the Directors and the independent Auditor on those financial statements.
2. To receive and approve the Directors’ Remuneration Policy, the full text of which appears in the Directors’
Remuneration Report for the financial year ended 30 September 2025 on pages 54 and 55 of the Annual Report and
Accounts for the financial year ended 30 September 2025.
3. To receive, adopt and approve the Directors’ Remuneration Report for the financial year ended 30 September 2025
which appears on pages 54 to 58 of the Annual Report and Accounts for the financial year ended 30 September 2025.
4. To approve the Company’s dividend policy to pay four interim dividends per annum as set out on page 52 of the
Annual Report and Accounts for the financial year ended 30 September 2025.
5. To re-elect Mark Little as a Director of the Company.
6. To re-elect Sarika Patel as a Director of the Company.
7. To re-elect Nick Timberlake as a Director of the Company.
8. To elect Alice Ryder as a Director of the Company.
9. To re-appoint Johnston Carmichael LLP as independent Auditor of the Company to hold office from the conclusion
of the annual general meeting until the conclusion of the next annual general meeting of the Company.
10. To authorise the Directors to fix the remuneration of the independent Auditor for the financial year ending 30
September 2026.
11. That, in substitution for all existing authority, but without prejudice to the exercise of any such authority prior to the
date of the passing of this resolution, the directors of the Company (the “Directors”) be and they are hereby
generally and unconditionally authorised in accordance with section 551 of the Companies Act 2006 (the “Act”) to
exercise all the powers of the Company to allot ordinary shares of 25 pence each in the capital of the Company
(“Shares”) and to grant rights to subscribe for or to convert any security into Shares (“Rights”) up to an aggregate
nominal amount of £1,223,038 (representing approximately 10% of the Company’s total issued share capital
(excluding shares held in treasury) as at the date of this notice) generally from time to time on such terms as the
Directors may determine, such authority to expire at the conclusion of the next annual general meeting of the
Company held after the passing of this resolution or on the expiry of 15 months from the passing of this resolution,
whichever is the earlier, unless previously revoked, varied, extended or renewed by the Company in a general
meeting, save that the Company may at any time prior to the expiry of this authority make an offer or enter into an
agreement which would or might require Shares to be allotted or Rights to be granted after the expiry of such
authority and the Directors shall be entitled to allot Shares or grant Rights in pursuance of any such an offer or
agreement as if such authority had not expired.
Special Resolutions
To consider and, if thought fit, to pass resolutions 12 to 14 (inclusive) as special resolutions:
12. That, subject to the passing of resolution 11 set out in the notice of the annual general meeting to be held on 17
February 2026 (“Resolution 11”), and in substitution for any existing power but without prejudice to the exercise of
any such power prior to the passing of this resolution, the directors of the Company (the “Directors”) be and they are
hereby generally and unconditionally empowered, pursuant to sections 570 and 573 of the Companies Act 2006
(the “Act”), to allot, or make offers or agreements to allot, equity securities (within the meaning of section 560(1) of
Notice of Annual General Meetin
g
Aberdeen Equity Income Trust plc 105
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
the Act), for cash pursuant to the authority conferred by Resolution 11, and/or by way of a sale of treasury shares for
cash, as if section 561(1) of the Act did not apply to any such allotment or sale provided that this power:
a) shall expire at the conclusion of the next annual general meeting of the Company held after the passing of this
resolution or on the expiry of 15 months from the passing of this resolution, whichever is the earlier, unless
previously revoked, varied, extended or renewed by the Company in a general meeting, save that the
Company may, at any time prior to the expiry of this authority, make offers or enter into agreements which
would or might require equity securities to be allotted or sold out of treasury after such expiry and the Directors
may allot or sell out of treasury equity securities in pursuance of any such offer or agreement as if the power
conferred hereby had not expired; and
b) shall be limited to the allotment of equity securities and the sale of treasury shares up to an aggregate nominal
amount of £1,223,038, (representing approximately 10% of the issued share capital of the Company (excluding
treasury shares), as at the date of this notice).
13. That, in substitution for any existing authority, but without prejudice to the exercise of any such authority prior to the
passing of this resolution, the Company be and is hereby generally and, subject as hereinafter appears,
unconditionally authorised in accordance with section 701 of the Companies Act 2006 (the “Act”) to make market
purchases (within the meaning of section 693(4) of the Act) of ordinary shares of 25 pence each in the capital of the
Company (the “Shares”) on such terms and in such manner as the directors of the Company may from time to time
determine either for cancellation or for retention as treasury shares for future reissue, resale, transfer, or
cancellation provided always that:
c) the maximum aggregate number of Shares hereby authorised to be purchased is 7,333,336 or, if less, the
number representing 14.99% of the Company’s issued share capital (excluding shares held in treasury)
immediately prior to the passing of this resolution.
d) the minimum price (exclusive of expenses) which may be paid for each Share purchased pursuant to this
authority shall be 25 pence (being the nominal value of a Share).
e) the maximum price (exclusive of expenses) which may be paid for a Share purchased pursuant to this authority
is the higher of (i) 105% of the average of the middle market quotations (as derived from the Daily Official List of
the London Stock Exchange) for a Share over the five business days immediately preceding the date of
purchase and (ii) the higher of the price of the last independent trade of a Share and the highest current
independent bid for such Share on the London Stock Exchange at the time the purchase is carried out; and
f) the authority hereby conferred shall expire at the conclusion of the next annual general meeting of the
Company held after the passing of this resolution or on the expiry of 15 months from the passing of this
resolution, whichever is earlier, unless the authority is revoked, varied, extended or renewed by the Company in
a general meeting prior to such time, save that the Company may, at any time prior to the expiry of the authority
hereby conferred, enter into a contract to purchase Shares under such authority which will or might be
completed or executed wholly or partly after the expiration of such authority and may make a purchase of
Shares pursuant to any such contract.
14. That a general meeting (other than an annual general meeting) of the Company may be called on not less than 14
clear days’ notice, provided that this autho
rity shall expire at the conclusion of the next annual general meeting of
the Company.
By order of the Board
abrdn Holdings Limited
Company Secretary
08 December 2025
Registered Office
280 Bishopsgate
London
EC2M 4AG
106 Aberdeen Equity Income Trust plc
Notes
i. A shareholder entitled to attend and vote at the meeting is entitled to appoint one or more proxies to attend, speak
and vote instead of him/her or on his/her behalf at the meeting. A proxy need not be a shareholder. A shareholder
may appoint more than one proxy, provided that each proxy is appointed to attend, speak and vote in respect of a
different share or shares. If you wish your proxy to speak on your behalf at the meeting, you will need to appoint your
own choice of proxy (not the Chair of the meeting) and give instructions directly to them. Appointing a proxy will not
prevent a shareholder from attending in person and voting at the meeting. A proxy form which may be used to
make such appointment and give proxy instructions accompanies this notice. If you do not have a proxy form and
believe that you should, or if you would like to appoint more than one proxy, please contact the Company’s
Registrar, Computershare Investor Services PLC on 0370 707 1150. In the case of joint holders, the vote of the first
named in the register of members of the Company who tenders a vote, whether in person or by proxy, shall be
accepted to the exclusion of the votes of other joint holders.
ii. To be valid, the appointment of a proxy, and the original or duly certified copy of the power of attorney or other
authority, if any, under which it is signed or authenticated, should be sent to the Company’s Registrar,
Computershare Investor Services PLC, The Pavilions, Bridgwater Road, Bristol, BS99 6ZY. Alternatively, a proxy
instruction may be submitted electronically using the following link: www.investorcentre.co.uk/eproxy. In either case,
to arrive not less than 48 hours (excluding non-working days) before the time fixed for the meeting or any
adjourned meeting.
iii. Pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, the Company specifies that only those
shareholders registered in the register of members of the Company at close of business on 13 February 2026 (or, if
the meeting is adjourned, 48 hours by close of business on the day which is two working days prior to the date of the
adjourned meeting) shall be entitled to attend or vote at the meeting in respect of the number of ordinary shares
registered in their name at that time. In each case, changes to entries on the register of members of the Company
after that time shall be disregarded in determining the rights of any person to attend or vote at the meeting.
iv. Any shareholder holding 3% or more of the total voting rights of the Company who appoints a person other than the
Chair of the meeting as his/her proxy(ies) will need to ensure that both he/she and his/her proxy(ies) comply with
their respective disclosure obligations under the FCA Disclosure Guidance and Transparency Rules.
v. CREST members who wish to appoint a proxy or proxies by utilising the CREST electronic proxy appointment service
may do so for the meeting and any adjournment(s) thereof by utilising the procedures described in the CREST
Manual and/or by logging in to the website www.euroclear. com/CREST. CREST personal members or other CREST
sponsored members, and those CREST members who have appointed a voting service provider(s), should refer to
their CREST sponsor or voting service provider(s), who will be able to take the appropriate action on their behalf.
vi. In order for a proxy appointment made by means of CREST to be valid, the appropriate CREST message (a “CREST
Proxy Instruction”) must be properly authenticated in accordance with Euroclear UK & International Limited’s (“EUI”)
specifications and must contain the information required for such instructions, as described in the CREST Manual.
The message must be transmitted so as to be received by the issuer’s agent (ID number 3RA50) by 11:30 am on 13
February 2026 (or, if the meeting is adjourned, 48 hours (excluding non-working days) before the time fixed for the
adjourned meeting). For this purpose, the time of receipt
will be taken to be the time (as determined by the
timestamp applied to the message by the CREST Applications Host) from which the issuer’s agent is able to retrieve
the message by enquiry to CREST in the manner prescribed by CREST.
Notice of Annual General Meetin
g
Continued
Aberdeen Equity Income Trust plc 107
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
vii. CREST members and, where applicable, their CREST sponsors or voting service providers should note that EUI does
not make available special procedures in CREST for any particular messages. Normal system timings and limitations
will therefore apply in relation to the input of CREST Proxy Instructions. It is the responsibility of the CREST member
concerned to take (or, if the CREST member is a CREST personal member or sponsored member or has appointed
a voting service provider(s), to procure that his CREST sponsor or voting service provider(s) take(s)) such action as
shall be necessary to ensure that a message is transmitted by means of the CREST system by any particular time. In
this connection, CREST members and, where applicable, their CREST sponsors or voting service providers are
referred, in particular, to those sections of the CREST Manual concerning practical limitations of the CREST system
and timings.
viii. The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out in Regulation 35(5)(a) of
the Uncertificated Securities Regulations 2001.
ix. If you are an institutional investor, you may be able to appoint a proxy electronically via the Proxymity platform, a
process which has been agreed by the Company and approved by the Registrar. For further information regarding
Proxymity, please go to www.proxymity.io . Your proxy must be lodged by 11:30am on 13 February 2026 in order to
be considered valid. Before you can appoint a proxy via this process you will need to have agreed to Proxymity’s
associated terms and conditions. It is important that you read these carefully as you will be bound by them and they
will govern the electronic appointment of your proxy.
x. A person to whom this notice is sent who is a person nominated under section 146 of the Companies Act 2006 to
enjoy information rights (a “Nominated Person”) may, under an agreement between him/her and the shareholder
by whom he/she was nominated, have a right to be appointed (or to have someone else appointed) as a proxy for
the meeting. If a Nominated Person has no such proxy appointment right or does not wish to exercise it, he/she may,
under any such agreement, have a right to give instructions to the shareholder as to the exercise of voting rights.
The statements of the rights of members in relation to the appointment of proxies in Notes (i) and (ii) above do not
apply to a Nominated Person. The rights described in those Notes can only be exercised by registered members of
the Company.
xi. The terms of appointment of the Directors of the Company are available for inspection on any day (except
Saturdays, Sundays and bank holidays) from the date of this notice until the date of the meeting during usual
business hours at the registered office of the Company and will, on the date of the meeting, be available for
inspection at the venue of the meeting from 15 minutes before the meeting until the conclusion of the meeting.
xii. Shareholders are advised that, unless otherwise stated, any telephone number, website or email address which
may be set out in this notice of Annual General Meeting or in any related documents (including the proxy form) is
not to be used for the purposes of serving information or documents on, or otherwise communicating with, the
Company for any purposes other than those expressly stated.
xiii. Following the meeting, the results of the voting at the meeting and the numbers of proxy votes cast for and against
and the number of votes actively withheld in respect of each of the resolutions will be announced via a Regulatory
Information Service and placed on the Company’s website: aberdeenequityincome.com.
xiv. It is possible that, pursuant to requests made by members of the Company under section 527 of the Companies Act
2006, the Company may be required to publish on a website a statement setting out any matter relating to: (i) the
audit of the Company’s accounts (including the Auditor’s repor
t and the conduct of the audit) that are to be laid
before the meeting: or (ii) any circumstances connected with an Auditor of the Company ceasing to hold office
since the previous meeting at which annual accounts and reports were laid in accordance with section 437 of the
Companies Act 2006. The Company will be required to do so once it has received such requests either from a
member or members having a right to vote and holding at least 5% of the total voting rights of the Company or from
at least 100 members who have a relevant right to vote and hold shares in the Company on which there has been
paid up an average sum per member of at least £100. Such requests must be made in writing and must state the
member’s full name and address and be sent to the Company’s registered office to be received by the Company at
least one week prior to the meeting. The Company may not require the members requesting any such website
publication to pay its expenses in complying with sections 527 or 528 of the Companies Act 2006.
108 Aberdeen Equity Income Trust plc
xv. As at 6pm on 8 December 2025 (being the latest practicable date prior to publication of this notice) the Company’s
issued share capital comprised 49,178,767 ordinary shares of 25 pence each [including 257,245 ordinary shares
held in treasury]. Each Ordinary share (other than any Ordinary shares held in treasury) carries the right to one vote
at a general meeting of the Company. Accordingly, the total number of voting rights in the Company as at 8
December 2025 was 48,921,522.
xvi. If you wish to attend the meeting in person, there will be a members’ register for you to sign on arrival. Under section
319A of the Companies Act 2006, the Company must answer any question relating to the business being dealt with
at the meeting put by a member attending the meeting unless:
a) answering the question would interfere unduly with the preparation for the meeting or involve the disclosure
of confidential information.
b) the answer has already been given on a website in the form of an answer to a question; or
c) it is undesirable in the interests of the Company or the good order of the meeting that the question be
answered.
xvii. Information regarding the Annual General Meeting, including information required by section 311A of the
Companies Act 2006, is available from the Company’s website: aberdeenequityincome.com
xviii. Under section 338 of the Companies Act 2006, a member or members meeting the qualification criteria set out at
note xx below, may, subject to certain conditions, require the Company to circulate to members notice of a
resolution which may properly be moved and is intended to be moved at that meeting. The conditions are that: (i)
the resolution must not, if passed, be ineffective (whether by reason of inconsistency with any enactment or the
Company's constitution or otherwise); (ii) the resolution must not be defamatory of any person, frivolous or
vexatious; and (iii) the request: (a) may be in hard copy form or in electronic form; (b) must identify the resolution of
which notice is to be given by either setting out the resolution in full or, if supporting a resolution sent by another
member, clearly identifying the resolution which is being supported; (c) must be authenticated by the person or
persons making it; and (d) must be received by the Company not later than six weeks before the meeting to which
the requests relate.
xix. Under section 338A of the Companies Act 2006, a member or members meeting the qualification criteria set out at
note xx below, may, subject to certain conditions, require the Company to include in the business to be dealt with at
the meeting a matter (other than a proposed resolution) which may properly be included in the business (a matter
of business). The conditions are that: (i) the matter of business must not be defamatory of any person, frivolous or
vexatious; and (ii) the request: (a) may be in hard copy form or in electronic form; (b) must identify the matter of
business by either setting it out in full or, if supporting a statement sent by another member, clearly identify the
matter of business which is being supported; (c) must be accompanied by a statement setting out the grounds for
the request; (d) must be authenticated by the person or persons making it; and (e) must be received by the
Company not later than six weeks before the meeting to which the requests relate.
xx. In order to be able to exercise the members' right to require: (i) circulation of a resolution to be proposed at the
meeting (see note xvii); or (ii) a matter of business to be dealt with at the meeting (see note xviii), the relevant
request must be made by: (a) a member or members having a rig
ht to vote and holding at least 5% of the total
voting rights of the Company; or (b) at least 100 members who have a relevant right to vote and hold shares in the
Company on which there has been paid up an average sum per member of at least £100.
Continued
Notice of Annual General Meetin
g
Aberdeen Equity Income Trust plc 109
Directors
Sarika Patel (Chair)
Caroline Hitch
Mark Little
Nick Timberlake
Alice Ryder
Registered Office
280 Bishopsgate
London
EC2M 4AG
Registered Number
Registered in England & Wales No. 2648152
Legal Entity Identifier (LEI)
21380015XPT7BZISSQ74
Alternative Investment Fund Manager
abrdn Fund Managers Limited
1 George Street
Edinburgh
EH2 2LL
Website Address:
aberdeenequityincome.com
Company Secretary
abrdn Holdings Limited
1 George Street
Edinburgh
EH2 2LL
E-mail: CEF.CoSec@aberdeenplc.com
Independent Auditor
Johnston Carmichael LLP
7-11 Melville Street
Edinburgh
EH3 7PE
Solicitor
Dickson Minto W.S.
16 Charlotte Square
Edinburgh
EH2 4DF
Depositary and Custodian
BNP Paribas S.A. London Branch
10 Harewood Avenue
London
NW1 6AA
Lender
The Royal Bank of Scotland International, London Branch
3
rd
Floor
440 Strand
London
WC2R 0QS
Stockbroker
J P Morgan Cazenove
29th Floor
25 Bank Street
London
E14 5JP
Registrar
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol
BS99 6ZZ
Telephone: 0370 707 1150
Contact Addresses
For more information visit aberdeenequityincome.com
aberdeenplc.com
Important Information
For professional investors only – Not for use by retail investors or advisers.