asia-focus.co.uk
Aberdeen Asia Focus PLC
(
formerly abrdn Asia Focus plc
)
Investing in Asia’s smaller listed companies with long-term growth potential
Annual Report 31 July 2025
For more information visit asia-focus.co.uk
aberdeeninvestments.com
The Company
The Company is an investment trust and its Ordinary shares are admitted to trading on the main market of London
Stock Exchange plc. The Company aims to attract long-term private and institutional investors looking to benefit from
the growth prospects of Asia’s smaller companies.
Investment Objective
The Company aims to maximise total return to shareholders over the long term from a portfolio made up predominantly
of quoted smaller companies in the economies of Asia excluding Japan.
Five-Year Performance Linked Tender
On 27 January 2022 shareholders approved the introduction of a performance-linked tender offer, which provides that,
in the event of underperformance of the NAV per Share versus the MSCI AC Asia ex Japan Small Cap Index over a five-
year period commencing 1 August 2021, Shareholders will be offered the opportunity to realise a proportion of their
holding for cash at a level close to NAV less costs of the tender offer. The tender offer would be capped at a maximum of
25% of the issued share capital of the Company at that time.
Benchmark Index
From 1 August 2021 the Manager has utilised the MSCI AC Asia ex Japan Small Cap Index (currency adjusted) as well as
peer group comparisons for Board reporting. For periods prior to 1 August 2021, a composite index is used comprising
the MSCI AC Asia Pacific ex Japan Small Cap Index (currency adjusted) up to 31 July 2021 and the MSCI AC Asia ex
Japan Small Cap Index (currency adjusted) thereafter. It is likely that performance will diverge, possibly quite
dramatically in either direction, from the comparative index. The Manager seeks to minimise risk by using in-depth
research and does not see divergence from an index as risk.
Investment Manager and Alternate Investment Fund Manager
The Company’s Alternative Investment Fund Manager, appointed as required by EU Directive 2011/61/EU, is abrdn Fund
Managers Limited (“aFML”) which is authorised and regulated by the Financial Conduct Authority. Day to day
management of the portfolio is delegated to abrdn Asia Limited (“abrdn Asia”, the “Manager” or the “Investment
Manager”). aFML and abrdn Asia are wholly owned subsidiaries of Aberdeen Group Plc.
Aberdeen Asia Focus PLC Annual Report 31st July 2025
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
121
Directors
Krishna Shanmuganathan, Chair
Charlotte Black
Lindsay Cooper
Alex Finn
Lucy Macdonald
Davina Curling
Registered in England as an
Investment Company
Registration Number 03106339
Manager
abrdn Asia Limited
7 Straits View
# 23-04. Marina One East Tower
Singapore 018936
Alternative Investment Fund Manager*
abrdn Fund Managers Limited
280 Bishopsgate
London EC2M 4AG
(
Authorised and regulated by the Financial
Conduct Authority
)
(* appointed as required by EU Directive 2011/61/EU)
Secretaries and Registered Office
abrdn Holdings Limited
280 Bishopsgate
London EC2M 4AG
Registrars
Equiniti
Aspect House
Spencer Road
Lancing
West Sussex, BN99 6DA
Telephone enquiries +44 (0) 371 384 2416
Lines open 8.30 a.m. to 5.30 p.m., Monday to Friday
(excluding public holidays in England & Wales)
shareview.co.uk
Stockbrokers
Panmure Liberum
Ropemaker Place, Level 12
25 Ropemaker Street
London EC2Y 9LY
Solicitors
Dentons UK and Middle East LLP
Quartermile One
15 Lauriston Place
Edinburgh EH3 9EP
Independent Auditor
PricewaterhouseCoopers LLP
Atria One
144 Morrison Street
Edinburgh EH3 8EX
CULS Trustee
The Law Debenture Corporation p.l.c.
Fifth Floor
100 Wood Street
London EC2V 7EX
Depositary
BNP Paribas SA London
10 Harewood Avenue
London NW1 6AA
Website
asia-focus.co.uk
Email
asia.focus@aberdeenplc.com
Foreign Account Tax Compliance Act
(“FATCA”) IRS Registration Number (“GIIN”):
5ITCFT.99999.SL.826
Legal Entity Identifier
5493000FBZP1J92OQY70
Corporate Information
Aberdeen Asia Focus PLC (
formerly abrdn Asia Focus plc
) 1
“
The Company has been recognised by the
Association of Investment Companies (AIC) as a
double ‘ISA Millionaire’ Trust, having returned over
£2 million to ISA savers who invested their full annual
allowances since ISAs were introduced, the highest
return of any Asia-focused trust in the AIC’s
analysis
”
Krishna Shanmuganathan,
Chair
“
Asian smaller companies – often overlooked and
under researched – can offer compelling
opportunities for those willing to take a closer look”
Gabriel Sacks and Xin-Yao Ng,
abrdn Asia Limited
Scan the QR code below to register
for regular email updates on the Company
Winner A J Bell Awards 2025
2 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Net asset value total return (diluted)
AB
Net asset value per share (diluted)
+20.3% 381.7
p
2024 +7.9% 2024 324.3p
Net asset value total return since inception
(diluted)
AB
Annualised Net asset value total return since
inception (diluted)
AB
+2995.6% +12.2%
2024 +2472.6% 2024 +11.9%
Share price total return
A
Share price
+26.6% 343.0
p
2024 +8.8% 2024 278.0p
Annualised share price total return
since inception
A
Discount to net asset value
AB
+12.2% 10.1%
2024 +11.8% 2024 14.3%
MSCI AC Asia ex Japan Small Cap
Index total return
C
Active share
+7.6% 96.5%
2024 +14.1% 2024 96.7%
Ongoing charges ratio
A
Dividends per share
D
0.91% 6.43
p
2024 0.89% 2024 7.42p
A
Alternative Performance Measure (see pages 96 and 97).
B
2024 presented on a diluted basis as the Convertible Unsecured Loan Stock (“CULS”) were “in the money”.
C
Currency adjusted, capital gains basis.
D
Dividends include special dividends of nil for 2025 (2024 – 1.00p).
Performance Hi
g
hli
g
hts
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
3
“
The Board has decided to hold another
interactive Online Shareholder Presentation
which will be held at 11:00 a.m. on 1 December
2025. During the presentation, shareholders will
receive updates from myself and the Manager
and there will be the opportunity for an
interactive question and answer session where
we will endeavour to answer as many questions
as time allows
”
Krishna Shanmuganathan,
Chair
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 independent
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 Asia Focus 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 or transferee, or to the stockbroker, bank or
agent through whom the sale or transfer was effected for
transmission to the purchaser or transferee.
Overview
Financial Calendar, Dividends and Highlights 4
Strategic Report
Chair’s Statement 8
Investment Managers’ Review 12
Overview of Strategy 15
Results 23
Performance 24
Portfolio
Ten Largest Investments 28
Portfolio 29
Sector/Geographical Analysis 32
Currency/Market Performance 34
Investment Case Studies 35
Governance
Board of Directors 40
Directors’ Report 43
Directors’ Remuneration Report 53
Statement of Directors’ Responsibilities 56
Report of the Audit Committee 57
Financial Statements
Independent auditors’ report to the members of
Aberdeen Asia Focus PLC
(
formerly abrdn Asia Focus plc
) 62
Statement of Comprehensive Income 69
Statement of Financial Position 70
Statement of Changes in Equity 71
Statement of Cash Flows 72
Notes to the Financial Statements 73
Alternative Performance Measures (Unaudited) 96
Corporate Information
Information about the Investment Manager 99
The Investment Process 100
Responsible Investment and Engagement 102
Investor Information 106
Alternative Investment Fund Managers Directive
Disclosures (Unaudited) 109
General
Notice of Annual General Meeting 111
Glossary of Terms and Definitions 115
Your Company’s Share Capital History 117
Corporate Information 121
Contents
4 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Financial year end
31 July
Announcement of results for year ended 31 July 2025
23 October 2025
Online Shareholder Presentation (see page 10)
1 December 2025 at 11:00 a.m.
Annual General Meeting
8 December 2025 at 12:30 p.m.
Payment date of first interim for 2025/2026
19 December 2025
Payment date of second interim dividend for 2025/2026
24 March 2026
Payment date of third interim dividend for 2025/2026
23 June 2026
Payment date of fourth interim dividend for 2025/2026
22 September 2026
Dividends
Rate xd date Record date Payment date
First interim 2025 1.60p 21 November 2024 22 November 2024 20 December 2024
Second interim 2025 1.60p 20 February 2025 21 February 2025 24 March 2025
Third interim 2025 1.60p 22 May 2025 23 May 2025 23 June 2025
Fourth interim 2025 1.63p 21 August 2025 22 August 2025 22 September 2025
6.43p
First interim 2024 1.60p 23 November 2023 24 November 2023 20 December 2023
Second interim 2024 1.60p 22 February 2024 23 February 2024 21 March 2024
Third interim 2024 1.60p 23 May 2024 24 May 2024 21 June 2024
Fourth interim 2024 1.62p 22 August 2024 23 August 2024 20 September 2024
Special 2024 1.00p 21 November 2024 22 November 2024 20 December 2024
7.42p
Financial Calendar,
Dividends and Hi
g
hli
g
hts
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
5
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Financial Highlights
31/07/2025 31/07/2024 % change
Total assets (see definition on page 116) £594,341,000 £542,457,000 +9.6
Total equity shareholders’ funds (net assets) £558,593,000 £502,260,000 +11.2
Net asset value per share (basic) 381.72p 326.94p +16.8
Net asset value per share (diluted) 381.72p 324.26p +17.7
Share price (mid market) 343.00p 278.00p +23.4
Market capitalisation £501,931,000 £427,082,000 +17.5
Discount to net asset value (basic)
A
10.1% 15.0%
Discount to net asset value (diluted)
A
10.1% 14.3%
MSCI AC Asia ex Japan Small Cap Index (currency adjusted,
capital gains basis)
2,321.10 2,210.14 +5.0
Net gearing
A
10.2% 10.4%
Dividends and earnings
Total return per share (basic)
B
60.26p 24.12p
Revenue return per share (basic) 7.44p 8.59p –13.4
Ordinary dividends per share
C
6.43p 6.42p +0.2
Special dividend per share
C
– 1.00p
Dividend cover
A
1.16 1.16
Revenue reserves
D
£17,151,000 £14,411,000 +19.0
Revenue reserves per share
D
11.72p 9.38p +24.9
Operating costs
Ongoing charges ratio
A
0.91% 0.89%
A
Considered to be an Alternative Performance Measure. See pages 96 and 97.
B
Measures the total earnings for the year divided by the weighted average number of Ordinary shares in issue (see note 9).
C
The figures for dividends per share reflect the dividends for the year in which they were earned.
D
After payment of the fourth interim dividend of 1.63p (2024 – 1.62p) per share amounting to £2,372,000 (2024 – £2,488,000) and the special dividend of nil (2024 – 1.00p per share
amounting to £1,511,000).
6 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Strategic
Report
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
7
The Company aims to attract long
term private and institutional
investors looking to benefit from the
growth prospects of Asian smaller
companies. It is an investment trust
and its Ordinary shares are admitted
to trading on the main market of
London Stock Exchange plc
8 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
It brings me great pleasure to present another set of
strong results in this the Company’s 30
th
anniversary year.
Our net assets grew to £558.6 million, and we joined the
FTSE 250 Index in June 2025. The Company was also
recognised by the Association of Investment Companies
(AIC) as a double ‘ISA Millionaire’ Trust, having returned
over £2 million to ISA savers who invested their full annual
allowances since ISAs were introduced, the highest return
of any Asia-focused trust in the AIC’s analysis.
In order to reflect recent changes to our Manager’s
branding, the Board has resolved, with effect from
14 October 2025, to change the Company’s name to
“Aberdeen Asia Focus PLC”.
Your Company will continue to target a diverse and
attractive range of smaller companies in Asia. It is
important to clarify that though relatively small in Asia,
many of these companies would be large enough to be
part of the FTSE100 in London. Since these businesses are
often under-researched and less widely owned, your
Manager is able to uncover hidden gems, the next
generation of market leaders capitalising on structural
growth trends in economies which are themselves
growing at pace. Thus, we provide access to a compelling
and diversified portfolio created by expert, bottom-up
stock selection that looks very different to any
reference benchmark.
Your Manager is able to uncover
hidden gems, the next generation of
market leaders capitalising on
structural growth trends in economies
which are themselves growing
at pace
Investment Performance
Your Company’s share price delivered a +26.6% return
while the net asset value (‘NAV’) grew by 20.3% in sterling
terms, both on a total return basis including the
reinvestment of dividends. This compared very well with
the MSCI AC Asia ex Japan Small Cap Index’s total return
of 7.6% and the larger cap MSCI AC Asia ex Japan Index’s
15.3% in sterling terms.
This outperformance reflects your Manager’s unwavering
commitment to investing in quality and resilience with
long-term growth prospects amongst Asia’s next
generation of market leaders, and their expertise, based
on an on-the-ground presence with 39 analysts and
investment managers operating around the region,
providing bottom-up research and local intelligence.
Over the longer term, your Company’s NAV total return
per share has returned an outstanding 2995.6% in
absolute terms since inception in 1995, equating to 12.2%
per annum, reflecting your Manager’s excellent
investment track record of delivering sustained returns to
Shareholders. This compares very favourably against
returns of 593.6% for the large-cap benchmark (MSCI AC
Asia Pacific ex Japan Index), and 343.5% for the blended
small-cap benchmark index.
Over the longer term, your Company’s
NAV total return per share has
returned an outstanding 2995.6% in
absolute terms since inception in 1995,
equating to 12.2% per annum
Dividends and Reserves
The Board continues to recognise the importance of your
Company’s dividend income for many shareholders. As
such, the income generation of the portfolio has been
robust and supportive of the progressive dividend policy
approved by shareholders in 2022. Your Company has
maintained or raised the Ordinary dividend every year
since 1998 and is expected to be named as one of the
AIC’s Next Generation of ‘Dividend Heroes’ in the
near future.
In total, four interim dividends have
been declared in respect of the
financial year ended 31 July 2025
amounting to 6.43p per Ordinary
5p share
Chair’s Statement
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
9
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
In total, four interim dividends have been declared in
respect of the financial year ended 31 July 2025
amounting to 6.43p per Ordinary 5p share (2024: 6.42p).
This represents a yield of 1.8% based upon the share price
at the time of writing of 363p. It is pleasing to note that
there remains over 13.6p per share in revenue reserves at
the year end which is significantly in excess of a year’s
worth of cover for the annual dividend.
Gearing – CULS conversion
On 31 May 2025 the £36.5m of outstanding Convertible
Unsecured Loan Stock 2025 (“CULS”) matured with
approximately £5.5m being redeemed by CULS holders
for cash and the balance of £31m electing to convert into
new Ordinary shares resulting in the issue of 10,562,933
new Ordinary shares.
Having reviewed the gearing options available, the
Company entered into a new, secured, two-year multi-
currency revolving credit facility (the "Facility") of £35
million with The Bank of Nova Scotia, London Branch (the
"Lender") which will expire on 28 May 2027.
Under the terms of the Facility, the Company also has the
option to increase the level of the commitment to £50
million, subject to the Lender's credit approval. £35 million
has been drawn down under the new Facility and was
used to finance the part redemption of the CULS with the
balance having been invested by the Investment Manager
in accordance with the Company's investment policy.
As at 31 July 2025, the net gearing stood at 10.2%
(2024: 10.4%).
As a measure of our continued
commitment to Shareholders’
interests…we have significantly
stepped-up share buybacks over the
past 12 months
Protecting Shareholders’ Interests
As you will recall, your Board took proactive steps as part
of the strategic review in 2021 to further promote
shareholders’ interests, in particular the introduction of a
five-year conditional tender opportunity, the linking of
investment management fees to market cap rather
than NAV and the move to progressive and more
frequent dividends.
We are pleased that performance remains well ahead of
the benchmark since 1 August 2021, the start date for the
five-year conditional tender monitoring period, with the
portfolio’s NAV total return per share being 36.9% versus
the benchmark return of 25.9% as at 31 July 2025.
As a measure of our continued commitment to
Shareholders’ interests, and underlining your Board’s belief
that your Company’s share price discount to NAV does
not accurately reflect the strength of the portfolio and
future prospects, we have significantly stepped-up share
buybacks over the past 12 months, not only to provide
additional liquidity but also to limit share price volatility for
Shareholders.
Over the year the Ordinary shares have traded at an
average discount of 15.8% and we have bought back
17.9m Ordinary shares (11.6% of issued share capital) in
the market at a discount to the prevailing NAV per share
(2024: 1.8% of issued share capital), ending the period on a
discount of 10.1% (2024: 14.3%). These buybacks have
resulted in an uplift to NAV of 1.6% or 5.5p per share.
Value for Money
We strive to keep the cost of investing low so that our
shareholders can retain as much of the return on their
investment as possible. Ongoing charges for the year
were 0.91% (2024: 0.89%), primarily made up of the
management fee. Your Company is one of the very few to
have linked the management fee to the market
capitalisation rather than the NAV of the Company,
further aligning the Investment Manager with you,
the Shareholders.
We strive to keep the cost of investing
low so that our shareholders can
retain as much of the return on their
investment as possible
Your Board continues to keep all costs under review but
believes that, given the breadth and depth of on-the-
ground research by your Manager, the very selective
stock picking (your Company’s portfolio has an active
share of 96.5% at year end) and the long-term
outperformance, the current fees constitute good value
for money.
10 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Your Investment Manager
In a challenging environment for active managers, your
Manager continues to invest in talent and research,
adding depth to its smaller company research capabilities
in Asia, with two new research analysts having joined the
team in the year, one with a primary focus on small and
mid-cap companies in India and the other a senior
technology analyst. Given these new additions in areas of
growing importance, your Board and I remain
encouraged by your Manager’s firm commitment to Asia,
where it is well known for its expertise.
Your Board and I remain encouraged
by your Manager’s firm commitment
to Asia, where it is well known for
its expertise
Your Manager is also focused on enhancing its investment
process in three key ways. First, the sharpening of
research with updated guidelines for stock notes and
sector reviews and a streamlined peer review process to
improve consistency and efficiency. Fundamental
analysis workshops and the use of AI are also helping
boost productivity.
Second, an evolution of the team’s structure for improved
clarity and focus, separating portfolio management from
research. Your Manager now has pure research analysts
covering all core sectors, having made some experienced
hires, which will help consolidate Aberdeen’s
comprehensive research platform. This adjustment
increases individual accountability and means research
insights can flow through faster while portfolio managers,
such as your Company’s, can concentrate on
performance.
Finally, the improving of portfolio construction, where the
greater use of technology and closer collaboration with
risk teams are supporting more effective decision-making.
Notably, senior and experienced hires and the promotion of
Pruksa Iamthongthong, who will lead the Aberdeen Asian
equity franchise as Flavia Cheong retires, signal a strong
bench of talent within the Manager’s ranks. Whilst we
reiterate our thanks to Flavia Cheong after over 30 years of
Asian equity investing with Aberdeen, Gabriel Sacks
continues as lead manager on the Company's investment
portfolio, ably supported by Xin-Yao Ng. Both are supported
by the wider Aberdeen Asia Pacific equity team of analysts
and investment managers based in the region.
Promoting your Company
The Board maintains its view that many investors are still
underestimating the benefits of allocating part of their
capital to Asian smaller companies, which have proven to
be less correlated to mainstream equities and have
offered superior returns compared with Asian large caps.
As a result, we are actively working to promote the
Company further, to bring the success of your Company
to new shareholders, using a suite of modern and
traditional public relations tools from social media to the
financial press.
Annual General Meeting
The Company's Annual General Meeting is scheduled for
12:30 p.m. on 8 December 2025. In line with best practice
the voting on all business at the AGM will be conducted by
way of a poll which will be administered on the day by the
Company’s registrar.
The AGM will be preceded by a short presentation from
the management team and following the formal business
there will be a light shareholder buffet lunch alongside the
opportunity to meet the Directors and Manager. In
addition to the usual ordinary business being proposed at
the AGM, as special business the Board is seeking to renew
the authority to issue new shares and sell treasury shares
for cash at a premium without pre-emption rules applying
and to renew the authority to buy back shares and either
hold them in treasury for future resale (at a premium to
the prevailing NAV per share) or cancel them. I would
encourage all Shareholders to support the Company and
lodge proxy voting forms in advance of the meeting,
regardless of whether they intend to attend in person.
The Board has decided to hold
another interactive Online
Shareholder Presentation which
will be held at 11:00 a.m. on
1 December 2025
Chair’s Statement
Continued
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
11
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
In light of the significant take up by Shareholders of the
online presentation held in 2024, in advance of the AGM,
the Board has decided to hold another interactive Online
Shareholder Presentation which will be held at 11:00 a.m.
on 1 December 2025. During the presentation,
Shareholders will receive updates from myself and the
Investment Manager and there will be the opportunity for
an interactive question and answer session where we will
endeavour to answer as many questions as time allows.
Following the online presentation, Shareholders will still
have time to submit their proxy votes prior to the AGM and
as a Board we encourage all Shareholders to lodge their
votes in advance in this manner. Full registration details
can be found at: asia-focus.co.uk.
Your Investment Manager has
invested in companies that tend to be
local or global leaders with unique
products and/or critical services
Outlook
In a period of significant volatility, economies across much
of Asia have been resilient. Corporate earnings are
holding up. The region’s structural long-term growth
drivers, such as urbanisation, digitalisation, consumer
market growth, and the green transition, remain intact.
Meanwhile, potential US interest rate cuts and a weaker US
dollar would further ease financial conditions in Asia,
support local currencies and improve the relative appeal
of Asian equities, including Asian smaller companies which
are more sensitive to liquidity cycles and more agile in
deploying capital for growth.
Aside from greater agility versus larger caps, Asian smaller
companies are less correlated to global indexes and more
tied to domestic consumption and innovation. The smaller
company universe is inherently less efficient and poorly
researched, making it ideal for active stock picking. Here,
your Investment Manager’s on-the-ground presence
and long track record in Asia provides a distinct
competitive edge.
Your Investment Manager has invested in companies that
tend to be local or global leaders with unique products
and/or critical services, ranging from precision
manufacturing to healthcare diagnostics, meaning that
these businesses are extremely resilient even in
volatile markets.
Your Board and I remain confident in
your Manager’s ability to continue
delivering disciplined, bottom-up
outperformance
In this age of noise and uncertainty, your Manager’s ability
to uncover quality businesses should, as in the past, serve
your Company well. Your Board and I remain confident in
your Manager’s ability to continue delivering disciplined,
bottom-up outperformance and, with that, sustainable
returns and growth over the long term.
Krishna Shanmuganathan
Chair
22 October 2025
12 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Performance Review
Despite an uncertain backdrop, the MSCI AC Asia Ex
Japan Small Cap Index (the “benchmark”) gained 7.6% in
sterling terms. This compares to the Company’s net asset
value (“NAV”) and share price which both significantly
outperformed, delivering 20.3% and 26.6%, respectively,
on a total return basis. This strong performance vindicates
our long-standing approach of uncovering and investing
in high-quality Asian smaller companies with strong
growth prospects, capable management, solid balance
sheets and steady cash flows.
Notably, the portfolio’s outperformance against its
benchmark was driven mainly by positive stock selection.
Among the key macro performance drivers, we would
highlight the portfolio’s exposure to Hong Kong and China,
which were among the best performing markets over
the year.
The year under review was extremely challenging for
investors, not just in Asia but also globally. In the aftermath
of Donald Trump’s US presidential win in November 2024,
investor sentiment was impacted by global growth
concerns, rising geopolitical tensions, tariff risks and
uncertainty about US monetary policy direction. In
addition, some Asian markets were further weighed down
by domestic turmoil, such as South Korea, which briefly
came under martial law.
In the second half of this reporting season, markets
became more volatile. The emergence of China’s AI start-
up DeepSeek led to mainland markets rallying on
optimism around AI applications, but it also had investors
scrambling to adjust expectations around AI, datacentre
capex, and technology hardware demand. Meanwhile,
President Trump announced reciprocal tariffs that were
much higher than expected, sparking a sharp sell-off
across many already nervous markets. Subsequently,
however, fresh trade accords between the US and several
countries brought some policy clarity and investor relief, as
President Trump’s actions proved less severe than his
rhetoric. While tensions in the Middle East persisted, the
lower probability of a broader regional conflict with Iran,
along with US inflation and dovish Federal Reserve
comments, also helped lift sentiment.
Hong Kong rallied on significant inflows from mainland
Chinese investors. This spike in buying interest was
amplified for smaller companies, where trading is typically
thin. Easing local funding conditions and lower interbank
rates earlier in the year also supported risk appetite. Aside
from our country allocation, our holdings also boosted
performance. Two stocks stood out. Precision Tsugami
China, which makes high-precision machine tools, did well
on the back of earnings improvements and a solid order
pipeline. It is also seeing early orders in robotics and AI, two
areas of structural growth, which has piqued investors’
interest in the company. Dah Sing Financial delivered solid
results, supported by a resilient net interest margin and a
stronger contribution from its insurance partnership. We
decided to exit the position on the back of price strength
witnessed in July 2025, as our investment thesis played out,
and also trimmed exposure to Precision Tsugami given its
strong run as its share price more than doubled with a gain
of 131.7%.
Among our mainland holdings, gear and reducer
manufacturer Zhejiang Shuanghuan Driveline rallied on the
back of healthy earnings and anticipation that it will be a
key beneficiary of demand from humanoid robotics.
Software developer Kingdee, a newly initiated stock,
climbed as the company continued to deliver better
results than its peers and is expected to gain from the
rising adoption of Agentic AI in its enterprise resource
planning tools.
Elsewhere, our Taiwan exposure added to performance.
Taiwan is our second biggest country exposure after India,
albeit our allocation is still lower than the benchmark. This
worked in our favour during a year when Taiwan was a
relative laggard. Our core technology holdings, such as
Choma ATE and Taiwan Union Technology significantly
outperformed, with their share prices rising 90.8% and
56.5% during the period, respectively. Chroma ATE
benefited from rising complexity in chip testing, driving
growth in its expanding semiconductor testing business.
Taiwan Union saw stronger demand for its higher-end
copper-clad laminates, a key component in printed circuit
boards, as customers continued upgrading to higher-end
products. In contrast, textile group Makalot lagged as
orders from US clients slowed amid the tariff uncertainty.
Turning to India, similarly, our underweight to the market
proved positive for performance. The market was
weighed down by a confluence of both domestic and
external headwinds, including near-term growth
concerns and weaker corporate earnings. Adding to the
uncertainty were foreign institutional outflows,
uncertainties around tariffs and volatile oil prices.
However, the sell-off is helping to ease valuation concerns,
taking some of the excessive froth witnessed out of the
market. Stock selection also contributed positively. Bharti
Hexacom demonstrated earnings defensiveness typical of
a telecommunication company, supported by rising
industry pricing, strong average revenue per user growth,
and subscriber additions. Vijaya Diagnostic Centre
performed well, reflecting its management’s execution
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ability and an integrated business model that has kept it
ahead of its rivals. On the other hand, Newgen Software
Technology posted lacklustre first-quarter results
indicating a delay in the conversion of its healthy order
pipeline into revenues.
Elsewhere, our holdings in the Korean shipping sector
were also strong. Korea Shipbuilding & Offshore
Engineering and ship servicing company Hyundai Marine
Solution performed well on the back of a robust outlook for
the sector, while US restrictions placed on Chinese
shipbuilders, their main rivals, have made them structurally
less competitive.
Portfolio Activity
We aim to manage a diversified portfolio of around 50
well-run companies with industry-leading positions and
strong management teams. With that in mind, we
continue to fine-tune the portfolio towards companies
with attractive growth prospects, steady cash flow
generation and clearer earnings visibility given the
prevailing global backdrop. Our key trades through the
year have reflected our commitment to staying
disciplined, sizing positions with care and rotating into the
best ideas that we can find. While we will not be right all of
the time, we hope to get it right more often than not, and
when we are wrong, be nimble, move quickly and act to
rectify our mistakes.
Through the review period, our trading activity
underscored the breadth and depth of the investment
universe in Asian smaller companies, across countries and
sectors, with some initiations highlighted below.
In China, we are leaning towards newer large-scale
consumption trends, such as music streaming, travel and
leisure, pet food, and internet platforms, and moving away
from traditional staples. A good example is our investment
in Netease Cloud Music, the second-ranked music
streaming app in China, which is popular with younger
users. The platform’s high user engagement comes from
its personalised playlists and music recommendations,
which significantly enhance the user experience. While
most of its users are still on the free tier, there is substantial
potential for revenue growth by converting them to
paying subscribers – a strategy that the company
prioritises over raising prices. We expect the company to
deliver double-digit revenue growth and continued
margin improvement. Towards the end of the Company’s
financial year, we also introduced Hesai to the portfolio, an
exciting business that we expect to be one of the global
leaders in LiDAR sensors, used primarily for autonomous
driving and other industrial applications.
In South Korea, we introduced a new holding in Classys,
which makes high-end medical devices used in clinics and
beauty centres for non-invasive treatments like skin
tightening and lifting and body contouring. Such machines
use technologies that are ultrasound or laser-based and
do not require surgery. This industry of medical aesthetics
is still in the early stages of growth, and Classys is well
positioned to capitalise on the opportunity leveraging off
Korea’s strong R&D capabilities in the medical and
cosmetics industries.
We also invested in Capitaland India Trust, a Singapore-
listed property trust that owns income-generating assets
in India, including IT parks, logistics spaces, and industrial
facilities, with consistent dividend growth. The trust is well-
positioned to benefit from India’s long-term development
with a 10-year development pipeline providing growth
visibility, especially in tech business parks and
warehousing. Its data centre assets are expected to be a
major growth driver, while occupancy is above market
averages and rental income continues to grow steadily.
Finally in Taiwan, we initiated a position in Chung-Hsin
Electric & Machinery, a domestic-focused business that is
well-positioned to benefit from rising electricity demand in
the country, helping to diversify our more tech-heavy and
export-oriented exposure in Taiwan.
Across the portfolio, we are also sizing positions to
manage risk and return thoughtfully. Aside from Dah Sing
Financial, we also sold out of India’s Prestige Estates,
another holding that had performed very well for the
Company over several years, demonstrating our price
discipline. We also exited the position in Taiwan’s Sinbon
Electronics after a bounce in the share price because we
disagreed with the market’s excitement around its
robotics pipeline; here we preferred to redeploy the
capital into companies with better earnings visibility.
Staying humble and admitting our mistakes early is also an
important part of trying to deliver better returns to the
Company’s shareholders. Position sizing also means we
do not need a high “hit rate” to outperform, provided
our winners are allowed to compound and our losers
are contained.
Here, kitchen appliance maker Hangzhou Robam is a good
example of how we acted quickly when an investment
thesis did not materialise as planned. In March, we
invested in Robam, due to its strong brand equity in
premium kitchen appliances, offering exposure to
improving consumption trends in China at an appealing
valuation and with a high dividend yield. The company had
maintained healthy margins despite a decline in the
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construction channel in recent years, helped by non-
construction and home upgrading demand from both
online and offline channels. Also, government subsidies
and signs of stabilisation in the property market,
particularly in higher-tier cities where Robam had greater
exposure, suggested upside potential. After our initiation,
however, Robam’s revenues and profits weakened as the
property market remained soft, given that its sales are
closely tied to new home completions. At the same time,
Chinese consumers began trading down, which led
Robam to push lower-margin mass-market products and
its secondary brand “Mingqi”, resulting in a dilution in gross
margins and lower than expected earnings growth. The
positive impact of national subsidies and offline retail
recovery also started to fade, while competition in the
kitchen appliance sector intensified, forcing Robam to cut
prices. As a result, we decided to cut our losses and exit
our small position in July.
Our approach as investment manager of the trust is to
maintain a balanced portfolio composed of several of
Asia’s leading business franchises leaning into secular
growth, managing risk with discipline, and focusing on
compounding returns for our shareholders over the
long term.
Outlook
Since your Company was launched 30 years ago, we can
point to a significant long term track record of
outperformance with an annualised return since inception
of 12.2% against the MSCI AC Asia ex Japan Small Cap
index’s 5.1% return. We believe this is because we have
consistently uncovered and invested in high-quality
companies that can perform well even in tough times. In
aggregate, the holdings in the portfolio generate over 80%
of their revenues from within Asia, and many are leaders in
their fields with critical products or services. These
businesses tend to be resilient, with strong balance sheets,
and well-positioned for future growth with experienced
management teams and prudent capital allocation.
Importantly, many of these opportunities lie within the
Asian smaller companies space, which is often
overlooked, under-researched, and misunderstood.
Small-cap equities in Asia have outperformed the broader
market index over the past three, five, and 10 years and,
contrary to popular belief, their volatility has not
consistently exceeded that of the broader market. This
challenges the notion that small caps are inherently riskier.
Part of this small-cap resilience comes from better
diversification across countries and sectors, and less
concentration in a few mega caps. Many of these smaller
companies are also more closely aligned with powerful
secular growth trends in Asia, including AI, robotics,
semiconductors, and renewable energy. Furthermore, low
and weaker research coverage of small caps, as
compared to large caps, means that active managers
can uncover undervalued “hidden gems” and generate
alpha through in-depth, on the ground fundamental
research. The lower correlation between small-cap stocks
across Asia and with global equity markets can also help
reduce overall portfolio risk.
More broadly, as the dominance of US markets potentially
begins to fade, investors may look to Asia for growth,
value, and diversification. The companies that we seek to
invest in are fundamentally sound, supported by low
leverage, strong competitive positioning, and a broadly
favourable macroeconomic environment with limited
inflationary pressures. Asian smaller companies – often
overlooked and under researched – can offer compelling
opportunities for those willing to take a closer look. We
remain excited about the growth prospects for the
portfolio and believe that it will continue to thrive and
deliver sustainable returns over the long term.
Gabriel Sacks and Xin-Yao Ng
abrdn Asia Limited
22 October 2025
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Business Model
The business of the Company is that of an investment
company which seeks to qualify as an investment trust for
UK capital gains tax purposes.
Investment Objective
The Company aims to maximise total return to
shareholders over the long term from a portfolio made up
predominantly of quoted smaller companies in the
economies of Asia excluding Japan.
Investment Policy
The Company invests in a diversified portfolio of securities
(including equity shares, preference shares, convertible
securities, warrants and other equity-related securities)
predominantly issued by quoted smaller companies
spread across a range of industries and economies in the
Investment Region. The Investment Region includes
Bangladesh, Cambodia, China, Hong Kong, India,
Indonesia, Korea, Laos, Malaysia, Myanmar, Pakistan, The
Philippines, Singapore, Sri Lanka, Taiwan, Thailand and
Vietnam, together with such other economies in Asia as
approved by the Board.
The Company may invest up to 10% of its net assets in
collective investment schemes, and up to 10% of its net
assets in unquoted companies, calculated at the time
of investment.
The Company may also invest in companies traded on
stock markets outside the Investment Region provided
over 75% of each company’s consolidated revenue,
operating income or pre-tax profit is earned from trading
in the Investment Region or the company holds more
than 75% of their consolidated net assets in the
Investment Region.
When the Board considers it in shareholders’ interests, the
Company reserves the right to participate in rights issues
by an investee company.
Risk Diversification
The Company will invest no more than 15% of its gross
assets in any single holding including listed investment
companies at the time of investment.
Gearing
The Board is responsible for determining the gearing
strategy for the Company. Gearing is used selectively to
leverage the Company’s portfolio in order to enhance
returns where and to the extent this is considered
appropriate to do so. Gearing is subject to a maximum
gearing level of 25% of NAV at the time of drawdown.
Investment Manager and Alternate
Investment Fund Manager
The Company’s Alternative Investment Fund Manager,
appointed as required by EU Directive 2011/61/EU, is
abrdn Fund Managers Limited (“aFML”) which is
authorised and regulated by the Financial Conduct
Authority. Day to day management of the portfolio is
delegated to abrdn Asia Limited (“abrdn Asia”, the
“Manager” or the “Investment Manager”). aFML and abrdn
Asia are wholly owned subsidiaries of Aberdeen Group Plc.
Delivering the Investment Policy
The Directors are responsible for determining the
investment policy and the investment objective of the
Company. Day to day management of the Company’s
assets has been delegated, via the AIFM, to the Investment
Manager, abrdn Asia. abrdn Asia invests in a diversified
range of companies throughout the Investment Region in
accordance with the investment policy. abrdn Asia follows
a bottom-up investment process based on a disciplined
evaluation of companies through direct visits by its fund
managers. Stock selection is the major source of added
value. No stock is bought without the fund managers
having first met management. abrdn Asia estimates a
company’s worth in two stages, quality then price. Quality
is defined by reference to management, business focus,
the balance sheet and corporate governance. Price is
calculated by reference to key financial ratios, the market,
the peer group and business prospects. Top-down
investment factors are secondary in the abrdn Asia’s
portfolio construction, with diversification rather than
formal controls guiding stock and sector weights. Whilst
the management of the Company’s investments is not
undertaken with any specific instructions to exclude
certain asset types or classes, the Investment Manager
considers ESG as part of the research for each asset class
during the investment review process. For the manager,
ESG investment is about active engagement, in the belief
that the performance of assets held around the world can
be improved over the longer term.
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A detailed description of the investment process and risk
controls employed by the Manager is disclosed on pages
100 and 101. A comprehensive analysis of the Company’s
portfolio is disclosed on pages 28 to 37 including a
description of the ten largest investments, the portfolio
investments by value, sector/geographical analysis and
currency/market performance. At the year end the
Company’s portfolio consisted of 60 holdings.
Benchmark Index
From 1 August 2021 the Manager has utilised the MSCI AC
Asia ex Japan Small Cap Index (currency adjusted) as well
as peer group comparisons for Board reporting. For
periods prior to 1 August 2021, a composite index is used
comprising the MSCI AC Asia Pacific ex Japan Small Cap
Index (currency adjusted) up to 31 July 2021 and the MSCI
AC Asia ex Japan Small Cap Index (currency adjusted)
thereafter. It is likely that performance will diverge,
possibly quite dramatically in either direction, from the
comparative index. The Manager seeks to minimise risk by
using in-depth research and does not see divergence
from an index as risk.
Promoting the Company’s Success
In accordance with corporate governance best practice,
the Board is now required to describe to the Company’s
shareholders how the Directors have discharged their
duties and responsibilities over the course of the financial
year following the guidelines set out under section 172 (1)
of the Companies Act 2006 (the “s172 Statement”). This
Statement, from ‘Promoting the Success of the Company’
to “Long Term Investment” on page 18, provides an
explanation of how the Directors have promoted the
success of the Company for the benefit of its members as
a whole, taking into account the likely long term
consequences of decisions, the need to foster
relationships with all stakeholders and the impact of the
Company’s operations on the environment.
The purpose of the Company is to act as a vehicle to
provide, over time, financial returns to its shareholders. The
Company’s Investment Objective is disclosed on page 15.
The activities of the Company are overseen by the Board
of Directors of the Company.
The Board’s philosophy is that the Company should
operate in a transparent culture where all parties are
treated with respect and provided with the opportunity to
offer practical challenge and participate in positive
debate which is focused on the aim of achieving the
expectations of shareholders and other stakeholders alike.
The Board reviews the culture and manner in which the
Manager operates at its regular meetings and receives
regular reporting and feedback from the other key
service providers.
Investment trusts, such as the Company, are long-term
investment vehicles, with a recommended holding period
of five or more years. Typically, investment trusts are
externally managed, have no employees, and are
overseen by an independent non-executive board of
directors. Your Company’s Board of Directors sets the
investment mandate, monitors the performance of all
service providers (including the Manager) and is
responsible for reviewing strategy on a regular basis. All
this is done with the aim of preserving and, indeed,
enhancing shareholder value over the longer term.
Stakeholders
The Company’s main stakeholders have been identified
as its shareholders, the Manager (and Investment
Manager), service providers, investee companies and
debt providers. More broadly, the environment and
community at large are also stakeholders in the
Company. The Board is responsible for managing the
competing interests of these stakeholders. Ensuring that
the Manager delivers outperformance for Ordinary
shareholders over the longer term without adversely
affecting the risk profile of the Company which is known
and understood by the loan note holders. This is achieved
by ensuring that the Manager stays within the agreed
investment policy.
Shareholders
Shareholders are key stakeholders in the Company – they
look to the Manager to achieve the investment objective
over time. The following table describes some of the ways
we engage with our shareholders:
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AGM The AGM normally provides an opportunity for the Directors to engage with shareholders,
answer their questions and meet them informally. The next AGM will take place on 8
December 2025 in London and voting will be conducted by way of poll. We encourage
shareholders to lodge their vote by proxy on all the resolutions put forward.
Online Shareholder Presentation In November 2024 the Board held an online shareholder presentation which was attended
by over 75 shareholders and prospective investors. Based on the success of this event a
further online presentation will be held on 1 December 2025 at 11:00 a.m.
Annual Report We publish a full annual report each year that contains a strategic report, governance
section, financial statements and additional information. The report is available online and in
paper format.
Company Announcements We issue announcements for all substantive news relating to the Company. You can find
these announcements on the website.
Results Announcements We release a full set of financial results at the half year and full year stage. Updated net asset
value figures are announced on a daily basis.
Monthly Factsheets The Manager publishes monthly factsheets on the Company’s website including
commentary on portfolio and market performance.
Website Our website contains a range of information on the Company and includes a full monthly
portfolio listing of our investments as well as updates from the investment management
team. Details of financial results, the investment process and Investment can be found at
asia-focus.co.uk.
Investor Relations The Company subscribes to the Manager’s Investor Relations programme (further details
are on page 21).
Social Media Shareholders can access up to date news on the Company and management team by
following the dedicated Aberdeen Asia Focus PLC page on LinkedIn.
The Manager
The key service provider for the Company is the
Alternative Investment Fund Manager and the
performance of the Manager is reviewed in detail at each
Board meeting. The Manager’s investment process is
outlined on pages 100 and 101 and further information
about the Manager is given on page 99. Shareholders are
key stakeholders in the Company – they are looking to the
Manager to achieve the investment objective over time
and to maximise total return to shareholders over the long
term from a portfolio made up predominantly of quoted
smaller companies in the economies of Asia excluding
Japan. The Board is available to meet at least annually
with shareholders at the Annual General Meeting and this
includes informal meetings with them over lunch following
the formal business of the AGM. This is seen as a very
useful opportunity to understand the needs and views of
the shareholders. In between AGMs, the Directors and
Manager also conduct programmes of investor meetings
with larger institutional, private wealth and other
shareholders to ensure that the Company is meeting their
needs. Such regular meetings may take the form of joint
presentations with the Investment Manager or meetings
directly with a Director where any matters of concern
may be raised directly.
Other Service Providers
The other key stakeholder group is that of the Company’s
third party service providers. The Board is responsible for
selecting the most appropriate outsourced service
providers and monitoring the relationships with these
suppliers regularly in order to ensure a constructive
working relationship. Our service providers look to the
Company to provide them with a clear understanding of
the Company’s needs in order that those requirements
can be delivered efficiently and fairly. The Board, via the
Management Engagement Committee, ensures that the
arrangements with service providers are reviewed at least
annually in detail. The aim is to ensure that contractual
arrangements remain in line with best practice, services
being offered meet the requirements and needs of the
Company and performance is in line with the
expectations of the Board, Manager, Investment Manager
and other relevant stakeholders. Reviews include those of
the Company’s depositary and custodian, share registrar,
broker and auditor.
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Principal Decisions
Pursuant to the Board’s aim of promoting the long-term
success of the Company, the following principal decisions
have been taken during the year:
Portfolio The Investment Manager’s Review on pages 12 to
14 details the key investment decisions taken during the
year and subsequently. The Investment Manager has
continued to monitor the investment portfolio throughout
the year under the supervision of the Board. A list of the
key portfolio changes can be found in the Investment
Manager’s Report.
Gearing At the time of the maturity of the CULS in May
2025 the Board reviewed the Company’s level of gearing
together with potential gearing options. In conjunction
with the Manager it was agreed to replace the CULS with
a new £35m two-year bank facility with Nova Scotia Bank.
Marketing and Promotion During the year the Board sought
to further improve the marketing and promotional
activities conducted on behalf of the Company and
following a competitive tender Burson Buchanan were
appointed to provide the Manager with further PR support.
Long Term Investment
The Investment Manager’s investment process seeks to
outperform over the longer term. The Board has in place
the necessary procedures and processes to continue to
promote the long-term success of the Company. The
Board will continue to monitor, evaluate and seek to
improve these processes as the Company continues to
grow over time, to ensure that the investment proposition
is delivered to shareholders and other stakeholders in line
with their expectations.
Key Performance Indicators (KPIs)
The Board uses a number of financial performance
measures to assess the Company’s success in achieving
its objective and to determine the progress of the
Company in pursuing its investment policy. The main KPIs
identified by the Board in relation to the Company, which
are considered at each Board meeting, are as follows:
KPI Description
NAV Return The Board considers the Company’s NAV total return figures to be the best indicator of
performance over time and is therefore the main indicator of performance used by the Board.
The figures for this year and for the past 1, 3, 5, 10 years and since inception are set out on page 23.
Performance against
comparative indices
The Board also measures performance against the MSCI AC Asia ex Japan Small Cap Index
(currency adjusted) as well as peer group comparisons for Board reporting. For periods prior to 1
August 2021, a composite index is used comprising the MSCI AC Asia Pacific ex Japan Small Cap
Index (currency adjusted) up to 31 July 2021 and the MSCI AC Asia ex Japan Small Cap Index
(currency adjusted) thereafter. Graphs showing performance are shown on pages 24 and 25. At
its regular Board meetings the Board also monitors share price performance relative to
competitor investment trusts over a range of time periods, taking into consideration the differing
investment policies and objectives employed by those companies.
Share price
(on a total return basis)
The Board also monitors the price at which the Company’s shares trade relative to the MSCI Asia
ex Japan Small Cap Index (sterling adjusted) on a total return basis over time. A graph showing the
total NAV return and the share price performance against the comparative index is shown on
page 25.
Discount/Premium to NAV The discount/premium relative to the NAV per share represented by the share price is closely
monitored by the Board. The objective is to avoid large fluctuations in the discount relative to
similar investment companies investing in the region by the use of share buy backs subject to
market conditions. A graph showing the share price premium/(discount) relative to the NAV is
also shown on page 25.
Dividend In 2022 the Board introduced a target dividend of 6.4p per share and the aim is to maintain a
progressive Ordinary dividend so that shareholders can rely on a consistent stream of income.
Dividends paid over the past 10 years are set out on page 23.
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Principal Risks and Uncertainties
There are a number of risks which, if realised, could have a material adverse effect on the Company and its financial
condition, performance and prospects. Risks are identified and documented through a risk management framework
and further details on the risk matrix are provided in the Directors’ Report. The Board, through the Audit Committee, has
undertaken a robust review of the principal risks and uncertainties facing the Company including those that would
threaten its business model, future performance, solvency or liquidity. Those principal risks are disclosed in the table
below together with a description of the mitigating actions taken by the Board. The principal risks associated with an
investment in the Company’s Shares are published monthly on the Company’s factsheet or they can be found in the
pre-investment disclosure document published by the Manager, both of which are available on the Company’s website.
The Board also has a process to review longer term risks and consider emerging risks and if any of these are deemed to
be significant these risks are categorised, rated and added to the risk matrix.
Macroeconomic risks arising from geopolitical risks such as the ongoing conflicts in Ukraine and the Middle East together
with tensions in East Asia as well as the imposition of trade tariffs by the US continue to present significant uncertainty to
world markets. In addition to the risks listed below, the Board is also very conscious of the risks emanating from increased
environmental, social and governance challenges. As climate change pressures mount, the Board continues to monitor,
through its Manager, the potential risk that investee companies may fail to keep pace with the appropriate rates of
change and adaption.
The Board does not consider that the principal risks and uncertainties identified have changed significantly during the
year or since the date of this Annual Report and are not expected to change materially for the current financial year.
Description Mitigating Action
Shareholder and Stakeholder Risk
Overall Risk Unchanged during Year
The Company’s strategy and objectives are regularly reviewed to ensure that
they remain appropriate and effective. The Board monitors the discount level of
the Company’s shares and has in place a buyback mechanism whereby the
Manager is authorised to buy back shares within certain limits. The
macroeconomic and geopolitical challenges continue to cause volatility in
equity markets and the Company’s share price discount to NAV. The Company
buys back shares into treasury seeking to limit volatility. The Broker and
Manager communicate with major shareholders regularly to gauge their views
on the Company, including discount volatility. There are additional direct
meetings undertaken by the Chair and other Directors. The Board monitors
shareholder and market reaction to Company news flow and notes that strong
performance over the year combined with pro-active Board activity has helped
to mitigate the impact of this risk.
Whilst the Board rates this risk overall as stable, the risks associated with certain
constituent parts of this risk have changed over the last 12 months and remain
the subject of continued scrutiny.
Investment Risk
Overall Risk Unchanged during Year
The Board sets, and monitors, its investment restrictions and guidelines, and
receives regular board reports which include performance reporting on the
implementation of the investment policy, the investment process and
application of the guidelines and concentration/liquidity analysis of the portfolio.
Aberdeen Group provides a team of experienced portfolio managers with
detailed knowledge of the Asian markets. The Investment Manager is in
attendance at all Board meetings. The Board also monitors the Company’s
share price relative to the NAV.
The Board recognises that investing in unlisted securities carries a higher
risk/reward profile. Accordingly, it seeks to mitigate this risk by limiting
20 Aberdeen Asia Focus PLC
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Description Mitigating Action
investment into such securities to 10% of the Company’s net assets (calculated
at the time of investment). For the year ended 31 July 2025 no unlisted
investments were made.
The Manager’s risk department reviews investment risk and a review of credit
worthiness of counterparties is undertaken by its Counterparty Credit Risk
team. The Company does not hedge foreign currency exposure but it may,
from time to time, partially mitigate it by borrowing in foreign currencies.
Gearing is currently provided at attractive rates, the Board and Manager
monitor gearing levels regularly and covenant reports are provided to lenders.
The Investment Manager includes responsible investing in its assessment of
investee companies together with the impact of climate as part of the
investment process. Responsible investment is about active engagement, in the
belief that the performance of assets held around the world can be improved
over the longer term.
Operational Risk
Overall Risk Unchanged during Year
The Board receives reports from the Manager on internal controls and risk
management at each Board meeting. It receives assurances from all its
significant service providers, as well as back-to-back assurances where
activities are themselves sub-delegated to other third-party providers with
which the Company has no direct contractual relationship eg accounting. The
assurance reports include an independent assessment of the effectiveness of
risks and internal controls at the service providers including their planning for
business continuity and disaster recovery scenarios, together with their policies
and procedures designed to address the risks posed to the Company’s
operations by cyber-crime. Further details of the internal controls which are in
place are set out in the Directors’ Report on pages 47 and 48.
The Manager has documented succession planning in place for key personnel.
There is a team approach to portfolio management of the Company and this
has been clearly communicated to shareholders
Governance & Regulatory Risk
Overall Risk Unchanged during Year
The Board receives assurance from the Manager and Company Secretary and
third-party service providers on all aspects of regulatory compliance as well as
drawing upon the significant experience of individual Directors. Upon
appointment Directors receive a detailed induction covering relevant
regulatory matters such as Corporate Governance, the Companies Act and
Listing Rules and further training is available if required.
Major Events & Geopolitical Risk
Overall Risk Rising during Year
External risks over which the Company has no control are always a risk. The
Manager monitors the Company’s portfolio and is in close communication with
the underlying investee companies in order to navigate and guide the
Company through macroeconomic and geopolitical risks. The Manager
continues to assess and review legacy pandemic risks as well as investment
risks arising from the impact of events such as the Invasion of Ukraine and
increased military tension in East Asia on companies in the portfolio and takes
the necessary investment decisions. The Manager monitors the potential
impact of potential regional conflict and the risk of sanctions being imposed
which limit the free flow of trade. In addition, the Board has discussed with the
Manager options that would be available to reduce the impact of conflict on the
portfolio.
Overview of Strate
g
y
Continued
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
21
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Promoting the Company
The Board recognises the importance of promoting the
Company to prospective investors both for improving
liquidity and enhancing the value and rating of the
Company’s shares. The Board believes an effective way
to achieve this is through subscription to and participation
in the promotional programme run by the Manager on
behalf of a number of investment trusts under its
management. The Company’s financial contribution to
the programme is matched by the Manager. The
Manager reports quarterly to the Board giving analysis of
the promotional activities as well as updates on the
shareholder register and any changes in the make-up of
that register.
The purpose of the programme is both to communicate
effectively with existing shareholders and to gain new
shareholders with the aim of improving liquidity and
enhancing the value and rating of the Company’s shares.
Communicating the long-term attractions of your
Company is key and therefore the Company also
supports the Manager’s investor relations programme
which involves regional roadshows, promotional and
public relations campaigns.
Board Diversity
The Board recognises the importance of having a range
of skilled, experienced individuals with the right knowledge
represented on the Board in order to allow the Board 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,
religion, ethnic or national origins, or disability in
considering the appointment of its Directors. Although the
Board does not set diversity targets, it is mindful of best
practice in this area. At 31 July 2025, there were three
male Directors and three female Directors on the Board
and the Company is compliant with the diversity and
inclusion targets set out in Chapter 6 of the FCA’s Listing
Rules. Further details are disclosed in the Directors’ Report
on page 45.
The UK Stewardship Code and Proxy Voting
The Company supports the UK Stewardship Code 2020
and seeks to play its role in supporting good stewardship
of the companies in which it invests. Responsibility for
actively monitoring the activities of portfolio companies
has been delegated by the Board to the Manager.
The Manager is a signatory of the UK Stewardship Code
2020 which aims to enhance the quality of engagement
by investors with investee companies in order to improve
their socially responsible performance and the long-term
investment return to shareholders. The Manager’s Annual
Stewardship Report for 2024 may be found at
aberdeenplc.com. While delivery of stewardship activities
has been delegated to the Manager, the Board
acknowledges its role in setting the tone for the effective
delivery of stewardship on the Company’s behalf.
The Board has also given discretionary powers to the
Manager to exercise voting rights on resolutions proposed
by the investee companies within the Company’s portfolio.
The Manager reports to the Board on a six-monthly basis
on stewardship (including voting) issues and additional
information may be found on pages 102 to 105.
Global Greenhouse Gas Emissions and
Streamlined Energy and Carbon Reporting
(“SECR”)
All of the Company’s activities are outsourced to third
parties. The Company therefore has no greenhouse gas
emissions to report from the operations of its business, nor
does it have responsibility for any other emissions
producing sources under the Companies Act 2006
(Strategic Report and Directors’ Reports) Regulations
2013. For the same reason as set out above, the
Company considers itself to be a low energy user under
the SECR regulations and therefore is not required to
disclose energy and carbon information. Further
information on the Manager’s obligatory disclosures under
the Taskforce on Climate-related Financial Disclosures
(“TCFD”) may be found on the Company’s website.
Environmental, Community, Social and
Human Rights Issues
The Company has no employees and, accordingly, there
are no disclosures to be made in respect of employees. In
relation to the investment portfolio, the Board has
delegated assessment of these issues to the Investment
Manager, responsibility and further information may be
found on pages 102 to 105.
22 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Modern Slavery Act
Due to the nature of its business, being a Company that
does not offer goods and services to customers, the Board
considers that the Company is not within the scope of the
Modern Slavery Act 2015 because it has no turnover. The
Company is therefore not required to make a slavery and
human trafficking statement. The Board considers the
Company’s supply chains, dealing predominantly with
professional advisers and service providers in the financial
services industry, to be low risk in relation to this matter.
Viability Statement
The Company does not have a formal fixed period
strategic plan but the Board formally considers risks and
strategy at least annually. The Board considers the
Company, with no fixed life, to be a long-term investment
vehicle, but for the purposes of this viability statement has
decided that a period of three years is an appropriate
period over which to report. The Board considers that this
period reflects a balance between looking out over a
long-term horizon and the inherent uncertainties of
looking out further than three years.
In assessing the viability of the Company over the review
period the Directors have conducted a robust review of
the principal risks, focusing upon the following factors:
· The principal risks detailed in the Strategic Report;
· The ongoing relevance of the Company’s investment
objective in the current environment;
· The demand for the Company’s Shares evidenced by
the historical level of premium and or discount; and
· The level of income generated by the Company.
In the event of triggering the conditional Tender Offer in
2026, the liquidity of the Company’s portfolio has been
carefully considered including the results of stress test
analysis performed by the Manager under a wide number
of market scenarios.
In making this assessment, the Board has examined
scenario analysis covering the impact of significant
historical market shocks such as the 2008 Global Financial
Crisis, Covid-19 and the Chinese Devaluation on the
liquidity of the portfolio, as well as future scenarios such as
geo-political tensions in East Asia, and how these factors
might affect the Company’s prospects and viability in
the future.
Accordingly, taking into account the Company’s current
position, the fact that the Company’s investments are
mostly liquid and the potential impact of its principal risks
and uncertainties, the Directors have a reasonable
expectation that the Company will be able to continue in
operation and meet its liabilities as they fall due for a
period of three years from the date of this Report. In
making this assessment, the Board has considered that
matters such as significant economic or stock market
volatility, a substantial reduction in the liquidity of the
portfolio or changes in investor sentiment could have an
impact on its assessment of the Company’s prospects
and viability in the future.
Future
The Board’s view on the general outlook for the Company
can be found in my Chair’s Statement on page 11 whilst
the Investment Manager’s views on the outlook for the
portfolio are included on page 14.
The Strategic Report has been approved by the Board
and signed on its behalf by:
Krishna Shanmuganathan,
Chair
22 October 2025
Overview of Strate
g
y
Continued
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
23
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Performance (total return)
1 year 3 year 4 year 5 year 10 year % return % pa return
%
return
%
return
%
return
B
%
return
%
return
since
inception
since
inception
Share price
A
+26.6 +47.8 +45.4 +101.0 +170.4 +3011.8 +12.2
Net asset value per Ordinary share – diluted
A
+20.3 +39.7 +37.0 +94.4 +157.3 +2995.6 +12.2
MSCI AC Asia ex Japan Small Cap Index (currency adjusted) +7.6 +32.6 +25.9 +75.7 +130.9 +343.5 +5.1
A
Considered to be an Alternative Performance Measure (see page 97 for more information).
B
Represents the period, following the commencement of monitoring performance with effect from 31 July 2021 to determine whether a tender offer for the Ordinary shares of the
Company should be undertaken after five years.
Source: Aberdeen Group, Morningstar, Lipper & MSCI
Ten Year Financial Record
Year to 31 July 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Total revenue (£’000) 10,992 13,896 14,673 14,632 13,595 9,624 18,071 19,984 17,272 15,203
Per share (p)
A
Net revenue return 1.84 3.86 3.85 4.33 4.29 1.66 9.34 10.29 8.59 7.44
Total return 33.08 34.46 7.36 15.64 (36.51) 92.34 (7.02) 22.43 24.12 60.26
Net ordinary dividends
paid/proposed
2.10 2.40 2.60 2.80 2.90 3.00 6.40 6.41 6.42 6.43
Net special dividends
paid/proposed
– 0.80 0.80 1.00 0.90 0.20 1.60 2.25 1.00 –
Net asset value per share (p)
A
Basic 213.78 247.09 246.37 260.11 221.29 310.90 295.88 310.49 326.94 381.72
Diluted 208.60 238.50 n/a n/a n/a 309.02 295.25 308.93 324.26 381.72
Shareholders’ funds (£’000) 383,735 430,105 433,706 441,010 358,956 487,958 464,396 485,784 502,260 558,593
A
Figures for 2016-2021 have been restated to reflect the 5:1 sub-division of each Ordinary 25p share into five Ordinary shares of 5p each which occurred on 7 February 2022.
Results
24 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Diluted NAV Total Return Since Inception vs MSCI AC Asia Pacific ex Japan Small Cap Index
(sterling adjusted)
19 October 1995 to 31 July 2025 (rebased to 100 as at 19/10/95)
0
100
200
300
400
500
600
700
800
900
1000
1100
1200
1300
1400
1500
1600
1700
1800
1900
2000
2100
2200
2300
2400
2500
2600
2700
2800
2900
3000
19/10/95 31/07/2001 31/07/2007 31/07/2013 31/07/2019 31/07/2025
Diluted NAV MSCI AC Asia ex Japan Small Cap index
Share Price Discount to Diluted Net Asset Value
Five years to 31 July 2025
-20%
-18%
-16%
-14%
-12%
-10%
-8%
-6%
-4%
-2%
0%
31/07/20 31/07/21 31/07/22 31/07/23 31/07/24 31/07/25
Performance
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
25
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Capital Return of Diluted NAV and Share Price vs MSCI AC Asia ex Japan Small Cap Index
(sterling adjusted)
Five years to 31 July 2025 (rebased to 100 as at 31/07/20)
80
100
120
140
160
180
31/07/2020 31/07/2021 31/07/2022 31/07/2023 31/07/2024 31/07/2025
Share Price Diluted NAV MSCI AC Asia ex Japan Small Cap Index
Diluted NAV Total Return Since Inception vs MSCI AC Asia Pacific ex Japan Small Cap Index
(sterling adjusted) Logarithmic scale
19 October 1995 to 31 July 2025 (rebased to 100 as at 19/10/95)
1.00
10.00
100.00
1000.00
10000.00
1995 1997 1998 2000 2001 2003 2004 2006 2007 2009 2010 2012 2013 2015 2016 2018 2019 2021 2022 2024 2025
Index Value (Log Scale)
Source: Morningstar and Factset
Diluted NAV MSCI AC Asia ex Japan Small Cap Index
26 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Portfolio
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
27
For the Managers comparative
indices are used as tools for
measurement and not for portfolio
construction. The management
team invests in companies that they
believe they understand and can
value. Companies in the portfolio are
held for the longer term.
28 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
As at 31 July 2025
3.9%
Total assets
Taiwan Union
3.7%
Total assets
Chroma ATE
Taiwan Union Technology Corp is a leading
maker of copper clad laminate (CCL), a key
base material used to make printed circuit
boards. With a strong commitment to R&D, it has
moved up the value chain through the years.
Chroma ATE is a leading provider of precision
test and measurement instruments. The
company has a strong market position due to
its innovative products and solutions, which
are widely used in various industries such as
electronics, automotive, and renewable
energy.
2.8%
Total assets
Affle India
2.8%
Total assets
Precision Tsugami China
Affle India operates a data platform that helps
direct digital advertising. It is dominant in India
where digitalisation has reached an inflection
point. The company has also pursued a broader
emerging markets growth strategy and now has
a meaningful presence in Southeast Asia and
Latin America.
The company is an established maker of high
precision machine tools and its emphasis on
innovation and quality, along with its strong
customer relationships, positions it well for
sustained growth in the Chinese market.
2.7%
Total assets
Classys
2.6%
Total assets
Asian Terminals
Korea's Classys is a leading global aesthetic
device maker in an exciting fast-growing
segment, with a superior brand image, a cost
advantage versus peers, and a long growth
runway in overseas markets.
Asian Terminals is an operator, developer and
investor of port terminals in the Philippines. It
has facilities in both Manila South Harbour and
the Port of Batangas, capturing the economic
activity of its hinterland which arguably is the
epi-centre of trade in the Philippines.
2.6%
Total assets
Zhejiang Shuanghuan
Driveline
2.5%
Total assets
Park Systems Corporation
Zhejiang Shuanghuan is a leading manufacturer
of gears and other transmission systems. Its
strong engineering capabilities and
commitment to quality have earned it a solid
reputation in the market where it is the leading
supplier to China's electric vehicle industry.
The Korean company is the leading developer
of atomic force microscopes, a nascent
technology that could have broad industrial
application in sectors such as chip-making
and biotechnology.
2.5%
Total assets
NetEase Cloud Music
Netease Cloud Music is the third-ranked music-
streaming app in China which is popular with the
younger demographic. The platform's high user
stickiness is attributed to its personalised playlists
and music recommendations. The company is
profitable, generates positive cash flow, and
boasts a strong net cash position.
2.5%
Total assets
J.B. Chemicals &
Pharmaceuticals
JB Chemicals is one of the top
pharmaceutical companies in India by sales,
with a strong contract manufacturing
business. The company has an attractive
financial profile, an experienced and capable
management team, and is pursuing multiple
growth opportunities on which it is executing
well.
Ten Lar
g
est Investments
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
29
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
As at 31 July 2025
Valuation Total Valuation
2025 assets 2024
Company Industry Country £’000 % £’000
Taiwan Union Technology Corp Electronic Equipment, Instruments
& Components
Taiwan 23,520 3.9 16,354
Chroma ATE Electronic Equipment, Instruments
& Components
Taiwan 21,849 3.7 13,474
Affle India Media India 16,863 2.8 14,652
Precision Tsugami China Machinery China 16,639 2.8 12,143
Classys Health Care Equipment & Supplies South Korea 15,912 2.7 –
Asian Terminals Transportation Infrastructure Philippines 15,297 2.6 12,623
Zhejiang Shuanghuan Driveline – A Auto Components China 15,265 2.6 10,012
Park Systems Corporation Electronic Equipment, Instruments
& Components
South Korea 14,887 2.5 18,070
NetEase Cloud Music Entertainment China 14,876 2.5 –
J.B. Chemicals & Pharmaceuticals Pharmaceuticals India 14,709 2.5 7,489
Top ten investments 169,817 28.6
M.P. Evans Group Food Products United Kingdom 14,247 2.4 14,751
Chung-Hsin Electric & Machinery Electronic Equipment, Instruments
& Components
Taiwan 14,160 2.4 –
HD Hyundai Marine Solution Industrial Transportation South Korea 14,132 2.4 8,355
AKR Corporindo Oil, Gas & Consumable Fuels Indonesia 14,087 2.4 17,804
Accton Technology Telecommunications Equipment Taiwan 13,437 2.2 –
Yantai China Pet Foods Food Products China 13,184 2.2 –
John Keells Holdings Industrial Conglomerates Sri Lanka 12,573 2.1 13,801
Bharti Hexacom Telecommunications Service
Providers
India 12,517 2.1 9,327
360 One Wam Capital Markets India 12,407 2.1 12,605
HD Korea Shipbuilding & Offshore
Engineering
Machinery South Korea 12,130 2.0 8,926
Top twenty investments 302,691 50.9
Portfolio
30 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Portfolio
Continued
As at 31 July 2025
Valuation Total Valuation
2025 assets 2024
Company Industry Country £’000 % £’000
Vijaya Diagnostic Centre Health Care Providers & Services India 11,878 2.0 13,285
KFin Technologies Capital Markets India 11,573 2.0 13,532
Asia Vital Components Technology Hardware, Storage &
Peripherals
Taiwan 11,474 1.9 2,486
HD Hyundai Electric Electronic Equipment, Instruments
& Components
South Korea 11,252 1.9 –
Military Commercial Joint Stock
Bank
Banks Vietnam 11,012 1.9 7,957
FPT Corporation IT Services Vietnam 10,912 1.8 22,926
Tongcheng Travel Holdings Hotels, Restaurants & Leisure China 10,893 1.8 5,742
United Plantations Food Products Malaysia 10,704 1.8 9,768
Aptus Value Housing Finance Financial Services India 10,016 1.7 7,651
Aegis Logistics Oil, Gas & Consumable Fuels India 9,938 1.7 25,221
Top thirty investments 412,343 69.4
Kingdee International Software Software Hong Kong 9,810 1.6 –
CapitaLand India Trust Real Estate Management &
Development
Singapore 9,757 1.6 –
Cholamandalam Financial Consumer Finance India 9,675 1.6 –
Atour Lifestyle Hotels, Restaurants & Leisure China 9,632 1.6 –
UNO Minda Auto Components India 9,365 1.6 8,817
ITC Hotels Hotels, Restaurants & Leisure India 9,309 1.6 –
Mobile World Investment
Corporation
Specialty Retail Vietnam 8,993 1.5 –
Hang Lung Properties Real Estate Management &
Development
Hong Kong 8,643 1.5 4,383
Makalot Industrial Textiles, Apparel & Luxury Goods Taiwan 8,342 1.4 9,349
Mega Lifesciences (Foreign) Pharmaceuticals Thailand 8,222 1.4 12,507
Top forty investments 504,091 84.8
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
31
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
As at 31 July 2025
Valuation Total Valuation
2025 assets 2024
Company Industry Country £’000 % £’000
Parkwaylife Real Estate Real Estate Management &
Development
Singapore 8,010 1.4 –
Hansol Chemical Chemicals South Korea 7,934 1.3 5,980
Century Pacific Food Food Products Philippines 7,783 1.3 6,390
Hesai Group Auto Components China 7,526 1.3 –
Bank OCBC NISP Banks Indonesia 7,426 1.2 15,361
Newgen Software Technologies Software India 7,230 1.2 –
Poya International Broadline Retail Taiwan 6,926 1.2 –
Sunonwealth Electric Machine
Industry
Machinery Taiwan 6,806 1.1 7,500
LEENO Industrial Semiconductors & Semiconductor
Equipment
South Korea 6,415 1.1 12,036
Phoenix Mills Real Estate Management &
Development
India 6,315 1.1 –
Top fifty investments 576,462 97.0
Chief Telecom Diversified Telecommunication
Services
Taiwan 5,956 1.0 –
Aegis Vopak Terminals Oil, Gas & Consumable Fuels India 5,864 1.0 –
Hang Lung Group Real Estate Management &
Development
Hong Kong 5,749 1.0 4,383
Philippine Seven Consumer Staples Distribution Philippines 5,585 0.9 –
Ultrajaya Milk Industry & Trading Food Products Indonesia 5,406 0.9 8,510
Poly Medicure Health Care Equipment & Supplies India 5,279 0.9 –
Humanica (Foreign) Professional Services Thailand 3,883 0.6 5,068
Indosat Wireless Telecommunication
Services
Indonesia 3,393 0.6 –
KEI Industries Electronic Equipment, Instruments
& Components
India 3,313 0.6 –
First Sponsor Group (Warrants
21/03/2029)
Real Estate Management &
Development
Singapore 61 – 221
Total investments 620,951 104.5
Net current liabilities (26,610) (4.5)
Total assets
A
594,341 100.0
A
Total assets less current liabilities.
32 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
As at 31 July
Sector Breakdown
0% 2% 4% 6% 8% 10% 12%
Air Freight & Logistics
Auto Components
Automobiles
Banks
Broadline Retail
Capital Markets
Chemicals
Computers & Peripherals
Consumer Finance
Consumer Staples Distribution
Diversified Telecommunication Services
Electronic Equipment, Instruments & Components
Entertainment
Financial Services
Food & Staples Retailing
Food Products
Health Care Equipment & Supplies
Health Care Providers & Services
Hotels, Restaurants & Leisure
Industrial Conglomerates
Industrial Transportation
Insurance
Interactive Media & Services
Internet & Direct Marketing Retail
IT Services
Leisure Products
Life Sciences Tools & Services
Machinery
Media
Oil, Gas & Consumable Fuels
Personal Care Products
Pharmaceuticals
Professional Services
Real Estate Management & Development
Semiconductors & Semiconductor Equipment
Software
Specialty Retail
Technology Hardware, Storage & Peripherals
Telecommunications Equipment
Telecommunications Service Providers
Textiles, Apparel & Luxury Goods
Transportation Infrastructure
2025
2024
Sector/Geo
g
raphical Analysis
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
33
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Geographic Breakdown at 31 July 2025
25.2%
18.1%
14.2%
13.3%
5.0%
4.9%
4.6%
3.9%
2.9%
2.3%
2.0%
1.9%
1.7%
Country allocation - 2025
India -25.2%
Taiwan - 18.1%
China - 14.2%
South Korea - 13.3%
Vietnam - 5.0%
Indonesia - 4.9%
Philippines - 4.6%
Hong Kong - 3.9%
Singapore - 2.9%
UK - 2.3%
Sri Lanka - 2.0%
Thailand - 1.9%
Malaysia - 1.7%
Geographic Breakdown at 31 July 2024
28.2%
14.4%
9.5%
9.4%
9.1%
7.2%
4.1%
4.1%
4.0%
3.4%
2.6%
2.4%
1.2% 0.4%
Country allocation - 2024
India -28.2%
Taiwan - 14.4%
Indonesia - 9.5%
South Korea - 9.4%
China - 9.1%
Vietnam - 7.2%
Hong Kong - 4.1%
Malaysia - 4.1%
Thailand - 4.0%
Philippines - 3.4%
UK - 2.6%
Sri Lanka - 2.4%
New Zealand - 1.2%
Singapore - 0.4%
34 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Year to 31 July 2025
Currency Returns (in Sterling terms)
-8% -6% -4% -2% 0% 2% 4% 6% 8%
Australian Dollar
China Renminbi
Hong Kong Dollar
Indian Rupee
Indonesian Rupiah
Malaysian Ringgit
New Zealand Dollar
Philippines Peso
Singapore Dollar
South Korean Won
Sri Lanka Rupee
Taiwan Dollar
Thailand Baht
MSCI Country Index Total Returns (in Sterling terms)
-20% -10% 0% 10% 20% 30% 40% 50%
Australia
China
Hong Kong
India
Indonesia
South Korea
Malaysia
New Zealand
Philippines
Singapore
Taiwan
Thailand
Currency/Market Performance
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
35
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
NetEase Cloud Music (China)
In which year did we first invest?
February 2025
% Holding:
2.5%
Where is their head office?
Hangzhou, China
What does the company do?
NetEase Cloud Music (NEM) is the second-largest
operator in China’s music streaming market, competing
head-to-head with Tencent Music.
Why do we like the company?
We are seeing a key shift in the way music platforms are
perceived in China. Previously, these platforms were
viewed as pure streaming services that delivered songs to
listeners just like a jukebox. Now, however, the narrative is
shifting. Investors are starting to value these platforms as
not just low-margin distributors but rather community-
based eco-systems with multiple ways of monetising fan
engagement, like social media businesses.
Within this context, we decided to invest in NEM, a fast-
growing digital music platform in China. It has carved out a
niche by focusing on independent artists and social
engagement, differentiating itself from a pure streaming
platform. NEM also stands out from the crowd for its highly
engaged Gen Z user base, with 90% of its users born after
1990. It is dominant in China’s Tier-1 and Tier-2 cities,
which are economically active and more likely to pay for
digital content.
Unlike its main rival Tencent Music Entertainment, which
splits its user base across three apps, NEM has a single,
unified platform. This gives it a clearer brand identity and
stronger user loyalty. Its personalised playlists and music
recommendations significantly enhance user experience
and are popular with younger users resulting in a
customer retention rate of c95%. Over 40% of its
streamed content comes from independent musicians,
which is cheaper and more profitable than licensed music.
By June 2025, NEM had more than 819,000 registered
independent artists contributing 4.8 million music tracks to
its library.
Although NEM’s monetisation is still in its infancy, the
company is focused on growing its user base through
subscriptions that are priced below its peers. This allows
room for future price increases and paywall expansion
without losing users. Its partnership with Alibaba also
boosts subscriber growth and long-term stickiness. The
company currently has more than 200 million monthly
active users but only 55 million paying subscribers –a ratio
of 26% – which indicates a long runway for revenue
growth, alongside improving profitability given the asset-
light nature of the business.
Turning to its finances, NEM is profitable with positive cash
flow and a healthy balance sheet with its net cash position
representing almost 20% of its market capitalisation. Its
margins are improving thanks to rising paying users, better
cost control and regulatory changes that have reduced
licensing costs. It is on track to have positive retained
earnings by 2028-2029, which we expect will enable
management to do buybacks and pay dividends, boosting
shareholder returns.
How has the company performed since we invested in it?
Since we bought the stock in February 2025, NEM’s share
price has climbed 48.2% in sterling terms from March to
July 2025. This reflects the company’s solid business
performance. In the first half of 2025, NEM’s monthly active
users (MAUs) kept growing steadily, while its
daily‑to‑monthly user ratio (DAU/MAU) stayed above 30%,
showing healthy engagement. Subscription revenue also
rose 15.2% year‑on‑year, mainly thanks to more paying
users, though this was slightly offset by a lower average
spend per user due to a changing subscriber mix. NEM’s
profitability improved as well. Its gross margin reached
36.4%, up from the same period in 2024, driven by larger
scale, better monetisation of the core music business, and
ongoing cost controls driving a 40.8% year-on-year
increase in operating profit.
Investment Case Studies
36 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Mobile World (Vietnam)
In which year did we first invest?
March 2025
% Holding:
1.5%
Where is their head office?
Ho Chi Minh City, Vietnam
What does the company do?
Mobile World is a Vietnamese consumer electronics
retailer that has branched out into grocery. It is the biggest
domestic grocery retailer with a broad store network and
first mover advantage in a country where informal food
markets are still prevalent.
Why do we like the company?
Most Vietnamese still buy their groceries at traditional wet
markets. According to NielsenIQ Vietnam, traditional trade
channels including small grocery stores and wet markets
make up 75-83% of total market sales.
With modern grocery retail so heavily under-penetrated,
there is plenty of room for growth. Here is where we see
Mobile World, a leading consumer electronics retailer,
stand out. It has a first-mover advantage in modern
grocery, through its Bach Hoa Xanh (BHX) chain, which
operates more than 2,000 minimarts. These marts sell
fresh food products, such as meat, fish, and vegetables,
along with other essential consumer goods. BHX has the
highest share of the modern minimart segment and
differentiates itself by making fresh food a core part of its
offering, supported by improving cold chain logistics and
disciplined store management. We see BHX as a key
beneficiary of the structural shift towards organised retail
in the country.
Beyond groceries, Mobile World is also Vietnam’s largest
retailer of phones and electronics. Its core electronics
chains – The Gioi Di Dong and Dien May Xanh – generate
strong cash flow. After two tough years, the domestic
electronics market is recovering on the back of lower
interest rates and a product replacement cycle. Mobile
World is pushing services like buy now pay later and 0%
instalment options to capture more market share
alongside differentiated logistics offerings.
Another smaller but fast-growing business within the
Group is pharmacy, with Mobile World’s An Khang chain
having the third highest market share in the country. The
pharmacy retail market in Vietnam is also highly
fragmented with traditional shops accounting for the lion’s
share of the market. Management aims to grow revenue
and reach breakeven by improving store productivity.
Overall, we view Mobile World as an attractively valued
company, backed by experienced management with a
good track record in retail execution. It is well placed to
capitalise on the underpenetrated modern retail and
ecommerce sectors, given the exciting growth dynamics
as well as rising wealth levels in Vietnam.
How has the company performed since we invested in it?
Since we first invested in it in March 2025, Mobile World’s
share price has risen by 6.9% (from April to July 2025) in
sterling terms. However there has been broader short-
term weakness in the domestic stock market, owing to
tariff concerns, policy uncertainty and mixed economic
indicators. We are seeing signs of a property recovery in
the north, but it remains sluggish in the south. Consumer
spending continues to be lacklustre, including in the
second quarter of 2025. We remain confident that Mobile
World’s fundamentals will continue to support its longer-
term growth outlook.
Investment Case Studies
Continued
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
37
Korea Shipbuilding & Offshore Engineering
(Korea)
In which year did we first invest?
February 2024
% Holding:
2.0%
Where is their head office?
Gyeonggi Province, South Korea
What does the company do?
Korea Shipbuilding & Offshore Engineering (KSOE) is the
world’s largest shipbuilder by capacity.
Why do we like the company?
KSOE’s transition from a small-cap stock to a large-cap
leader epitomises why we like the company, and
how structural tailwinds have reshaped the
shipbuilding industry.
Founded in a small fishing village in 1972, the company has
now grown into a cash-generating group that controls the
world’s largest shipbuilding platform through Hyundai
Heavy Industries, Samho Heavy Industry (100%) and
Hyundai Mipo Dockyard. Together they hold about 17% of
the global market share.
When we first invested in KSOE in early 2024, our
investment case had rested on strong fundamentals: tight
industry supply, superior technology, a deep order book
and improving pricing, all of which are driving higher, more
durable margins and strong free cash flow.
Furthermore, key structural pillars support the outlook for
KSOE. First, the industry is in a long, replacement-led
newbuild cycle. Ageing fleets and tougher emissions rules
mean that ship owners are ordering newer and cleaner
ships, lifting dock usage and delivery gains across
KSOE’s yards.
Second, KSOE is gaining market share in eco-friendly ships
due to its strong research and development capabilities. It
leads in LNG-dual fuel engines, focusing on X-DF engines,
which lower carbon emissions by reducing heavy-fuel oil
usage and are more profitable than fossil fuel engines.
Notably, even Chinese yards, which are KSOE’s fiercest
rivals, continue to outsource complex engines to
the company.
Meanwhile, supply chain relocation and tariff uncertainty
are pushing some demand from Chinese to Korean
yards. This has narrowed historic price gaps and
reinforced KSOE’s win rate, especially in eco-friendly
ships and containers.
Finally, Korea’s Value Up programme to boost corporate
governance reform could prove pivotal in unlocking
shareholder value. KSOE is cash-rich and still trades at a
big discount to its net asset value. We see room for the
group to lift its payouts, either by raising dividends and/or
conducting share buybacks, and to manage its capital
more efficiently. All this could support a sustained re-
rating of the company.
How has the company performed since we invested in it?
Since we first invested in it in February 2024, KSOE’s share
price has risen 203.4% (March 2024 to July 2025) in sterling
terms. We believe KSOE can deliver sustainable returns
for years to come, supported by quality assets, industry
tailwinds and growing cash payouts.
38 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Governance
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
39
The business of the Company is that of an investment trust
investing in the economies of Asia excluding Japan. The
Directors do not envisage any change in this activity in the
foreseeable future. The Company is registered as a public
limited company in England and Wales and is an investment
company as defined by Section 833 of the Companies Act
2006. The Company is also a member of the Association of
Investment Companies
40 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Krishna Shanmuganathan
Independent Non-Executive Director
Experience:
Mr Shanmuganathan has had a varied and successful
career in diplomacy, asset management, consulting and
corporate advisory, with a particular focus on Asia. He
now sits on a number of boards and is chair of Weiss
Korea Opportunities Fund.
Length of service:
5 years, appointed a Director on 3 June 2020
Last re-elected to the Board:
6 December 2024
Committee membership:
Management Engagement Committee and Nomination
Committee
Remuneration:
£49,000 per annum
All other public company directorships:
Weiss Korea Opportunity Fund (Chair)
Franklin Global Trust PLC
Other connections with Trust or Manager:
None
Shareholding in Company:
17,859 Ordinary shares
Charlotte Black
Independent Non-Executive Director
Experience:
A Fellow of the Chartered Institute for Securities &
Investment, she was until 2015 director, corporate affairs
at Brewin Dolphin Holdings PLC, having previously served
within that company as marketing director and in
investment management roles. She has served on the
boards of a number of industry related entities including
The Wealth Management Association, The Chartered
Institute for Securities & Investment and Euroclear PLC.
Charlotte is a founder Director of Artclear Ltd – a financial
infrastructure platform for the art industry.
Length of service:
6 years 10 Months, appointed a Director on
16 January 2019
Last re-elected to the Board:
6 December 2024
Committee membership:
Audit Committee, Management Engagement Committee
and Nomination Committee
Remuneration:
£33,000 per annum
All other public company directorships:
None
Other connections with Trust or Manager:
None
Shareholding in Company:
4,790 Ordinary shares
Board of Directors
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
41
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Lindsay Cooper
Independent Non-Executive Director
Experience:
A Singapore permanent resident and member of the
Institute of Chartered Accountants of Scotland. Mr Cooper
co-founded Arisaig Partners in 1996, an independent
Investment Management business where, for 20 years, he
had investment responsibility for the Arisaig Asia
Consumer Fund. Following semi-retirement Mr Cooper
founded Chic & Unique Pte Ltd, a boutique hotels and
hospitality business in Asia and Europe and, more recently,
founded Chi Tree Health, in Singapore. Mr Cooper is also
involved in two charities, Magic Bus Global and Angkor
Hospital for Children (AHC) in Cambodia.
Length of service:
3 years, appointed a Director on 15 June 2022
Last re-elected to the Board:
6 December 2024
Committee membership:
Audit Committee, Management Engagement Committee
and Nomination Committee
Remuneration:
£33,000 per annum
All other public company directorships:
Nil
Other connections with Trust or Manager:
None
Shareholding in Company:
Nil
Alex Finn
Independent Non-Executive Director
Experience:
A partner for 27 years in PwC's global financial services
practice, retiring on 30 June 2022. During his career at
PwC Mr Finn was responsible for the services that PwC
provided internationally to a number of its largest global
clients, all of which had extensive operations in Asia. He
was also responsible for supporting clients in large scale
accounting and financial change programmes, was
PwC's EMEA insurance leader, sat on its EMEA FS
leadership team and led a number of PwC's largest global
audit engagements.
Length of service:
3 years, appointed a Director on 13 July 2022
Last re-elected to the Board:
6 December 2024
Committee membership:
Audit Committee (Chairman), Management Engagement
Committee (Chairman) and Nomination Committee
Remuneration:
£40,000 per annum
All other public company directorships:
Nil
Other connections with Trust or Manager:
None
Shareholding in Company:
5,298
42 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Lucy Macdonald
Independent Non-Executive Director
Experience:
Ms Macdonald was, until 2020, managing director, CIO
global equities at Allianz Global Investors. She is an
experienced board director and is currently a member of
the investment committee of the RNLI, a non-executive
council member of the Duchy of Lancaster and senior
independent director of JPMorgan Global Emerging
Markets Income Trust Plc.
Length of service:
1 year and 10 months
Last re-elected to the Board:
6 December 2024
Committee membership:
Management Engagement Committee, Nomination
Committee and Audit Committee
Remuneration:
£33,000 per annum
All other public company directorships:
JPMorgan Global Emerging Markets Income Trust Plc
Other connections with Trust or Manager:
None
Shareholding in Company:
12,000 Ordinary shares
Davina Curling
Senior Independent Non-Executive Director
Experience:
Ms Curling has over 30 years’ investment management
experience and was formerly managing director, head of
Pan European Equities at Russell Investments. More
recently she has consulted on projects for small
companies and start-ups in the financial, manufacturing
and retail sectors. She has extensive experience as a
senior independent and board director and is currently
also a non-executive director of Baillie Gifford European
Growth Trust plc.
Length of service:
1 year and 7 months
Last re-elected to the Board:
6 December 2024
Committee membership:
Management Engagement Committee, Nomination
Committee and Audit Committee
Remuneration:
£33,000 per annum
All other public company directorships:
Baillie Gifford European Growth Trust plc
Other connections with Trust or Manager:
None
Shareholding in Company:
2,000
Board of Directors
Continued
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
43
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Directors present their Report and the audited
financial statements for the year ended 31 July 2025.
Results and Dividends
Details of the Company’s results and proposed dividends
are shown on page 23 of this Report.
Investment Trust Status
The Company (registered in England & Wales No.
03106339) has been accepted by HM Revenue & Customs
as an investment trust subject to the Company continuing
to meet the relevant eligibility conditions of Section 1158 of
the Corporation Tax Act 2010 and the ongoing
requirements of Part 2 Chapter 3 Statutory Instrument
2011/2999 for all financial years commencing on or after
1 August 2012. The Directors are of the opinion that the
Company has conducted its affairs for the year ended 31
July 2025 so as to enable it to comply with the ongoing
requirements for investment trust status.
Individual Savings Accounts
The Company has conducted its affairs so as to satisfy the
requirements as a qualifying security for Individual Savings
Accounts. The Directors intend that the Company will
continue to conduct its affairs in this manner.
Capital Structure, Buybacks and Issuance
The Company’s capital structure is summarised in note 14
to the financial statements.
At 31 July 2025, there were 146,335,588 fully paid Ordinary
shares of 5p each (2024 – 153,626,718 Ordinary shares of
5p each) in issue with a further 72,964,590 Ordinary shares
of 5p held in treasury (2024 – 55,094,590 Ordinary shares
of 5p each held in treasury). During the year 17,870,000
Ordinary shares were purchased in the market for
treasury (2024 – 2,850,000). During the period and up to
the date of this report no new Ordinary shares were issued
for cash and no shares were sold from treasury
Subsequent to the period end, 3,245,000 Ordinary shares
were purchased in the market for treasury.
On 13 December 2024, 46,704 units of Convertible
Unsecured Loan Stock 2025 (“CULS”) were converted into
15,937 new Ordinary shares of 5p each. On 31 May 2025
the CULS issue matured and £35,578,398 nominal were
redeemed by the CULS Trustee at £1 per unit with the
remaining balance of £30,949,618 units converted into
10,562,933 new Ordinary shares. In accordance with the
terms of the CULS Issue, (as adjusted to reflect the five for
one share subdivision in February 2022), the conversion
price of the CULS for both conversions was determined at
293.0p nominal of CULS for one Ordinary share of 5p.
Voting Rights
Ordinary shareholders are entitled to vote on all
resolutions which are proposed at general meetings of the
Company. The Ordinary shares carry a right to receive
dividends. On a winding up, after meeting the liabilities of
the Company, the surplus assets will be paid to Ordinary
shareholders in proportion to their shareholdings.
Gearing
On 1 December 2020 the Company issued a £30 million
Senior Unsecured Loan Note (the “Loan Note”) at an
annualised interest rate of 3.05%. The Loan Note is
unsecured, unlisted and denominated in sterling and due
to mature in 2035. The Loan Note ranks
pari passu
with the
Company’s other unsecured and unsubordinated
financial indebtedness.
On 31 May 2025 the Company entered into a new,
secured, two-year multi-currency revolving credit facility
of £35 million with The Bank of Nova Scotia, London
Branch which will expire on 28 May 2027. Under the terms
of the Facility, the Company also has the option to
increase the level of the commitment to £50 million,
subject to the lender's credit approval. £35 million has
been drawn down under the new facility.
Management Agreement
The Company has appointed abrdn Fund Managers
Limited (“aFML”), a wholly owned subsidiary of Aberdeen
Group Plc (“Aberdeen”), as its alternative investment fund
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 Asia Limited (“abrdn Asia”)
by way of a group delegation agreement in place
between aFML and abrdn Asia. In addition, aFML has sub-
delegated administrative and secretarial services to
abrdn Holdings Limited and promotional activities to
abrdn Investments Limited (“aIL”).
Directors’ Report
44 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Management Fee
The annual management fee is based upon the market
capitalisation of the Company and charged at 0.85% for
the first £250,000,000, 0.60% for the next £500,000,000 and
0.50% over £750,000,000. Investment management fees
are charged 25% to revenue and 75% to capital.
The management agreement may be terminated by
either the Company or the Manager on the expiry of three
months’ written notice. On termination, the Manager
would be entitled to receive fees which would otherwise
have been due to that date.
The Management Engagement Committee reviews the
terms of the management agreement on a regular basis
and have confirmed that, due to the long-term relative
performance, investment skills, experience and
commitment of the investment management team, in
their opinion the continuing appointment of aFML and
abrdn Asia is in the interests of shareholders as a whole.
Political and Charitable Donations
The Company does not make political donations (2024 -
nil) and has not made any charitable donations during the
year (2024 – nil).
Risk Management
Details of the financial risk management policies and
objectives relative to the use of financial instruments
by the Company are set out in note 19 to the
financial statements.
The Board
The current Directors, C Black, K Shanmuganathan, L
Cooper, A Finn, L Macdonald and D Curling were the only
Directors who served during the year. Pursuant to Principle
23 of the AIC’s Code of Corporate Governance which
recommends that all directors should be subject to annual
re-election by shareholders, all the members of the Board
will retire at the AGM scheduled for 8 December 2024 and
offer themselves for re-election. Details of each Director’s
contribution to the long-term success of the Company are
provided on page 47.
The Board considers that there is a balance of skills and
experience within the Board relevant to the leadership
and direction of the Company and that all the Directors
contribute effectively.
In common with most investment trusts, the Company has
no employees. Directors’ & Officers’ liability insurance
cover has been maintained throughout the year at the
expense of the Company.
The Role of the Chair
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 the
effective contribution, and encourages active
engagement, by each Director. 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 leads the
evaluation of the Board and individual Directors, and acts
upon the results of the evaluation process by recognising
strengths and addressing any weaknesses. The Chair also
engages with major shareholders and ensures that all
Directors understand shareholder views.
Davina Curling has been appointed Senior Independent
Director, acting as a sounding board for the Chair and
acting as an intermediary for other Directors as
applicable. The Audit Committee Chairman and Senior
Independent Director are both available to shareholders
to discuss any concerns they may have.
Board Diversity
The Board recognises the importance of having a range
of skilled, experienced individuals with the right knowledge
represented on the Board in order to allow it to fulfil its
obligations. The Board also recognises the benefits and is
supportive of, and will give due regard to, 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 Directors. The Board will continue to
ensure that all appointments are made on the basis of
merit against the specification prepared for each
appointment whilst also taking account of the targets set
out in the FCA’s Listing Rules, which are set out overleaf.
The Board has resolved that the Company’s year-end
date is the most appropriate date for disclosure purposes.
The following information has been provided by each
Director through the completion of questionnaires.
Directors’ Report
Continued
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
45
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Table for reporting on gender as at 31 July 2025
Number of
board
members
Percentage of
the board
Number of
senior
positions
on the board
(CEO, CFO,
Chair and SID)
Number in
executive
management
Percentage of
executive
management
Men 3 50% 2
n/a
(note 4)
n/a
(note 4)
Women 3 50%
(note 1)
1
(note 3)
Not specified/prefer not to say - - -
Table for reporting on ethnic background as at 31 July 2025
Number of
board
members
Percentage of
the board
Number of
senior
positions
on the board
(CEO, CFO,
Chair and SID)
Number in
executive
management
Percentage of
executive
management
White British or other White
(including minority-white groups)
5 80% 2
(note 3) n/a
(note 4)
n/a
(note 4)
Mixed / Multiple Ethnic Groups - - -
Asian/Asian British 1 20%
(note 2)
1
Black/African/Caribbean/Black
British
- - -
Other ethnic group, including Arab - - -
Not specified/prefer not to say - - -
Notes:
1. The Company meets the target that at least 40% of Directors are women as set out in LR 6.6.6R (9)(a)(i) for the year ended 31 July 2025.
2. The Company meets the target that at least one Director is from a minority ethnic background as set out in LR 6.6.6R (9)(a)(iii).
3. The Company meets the target that at least one of the senior positions is filled by a woman set out in LR 6.6.6R(a)(ii), for the year to 31 July 2025 as Ms Davina Curling is Senior
independent Director. The Company is externally managed and does not have any executive staff specifically it does not have either a CEO or CFO. The Board believes that it
is appropriate and reasonable that the role of Audit Committee Chairman on an investment trust that has no executive staff should also be considered to be a senior position.
4. This column is not applicable as the Company is externally managed and does not have any executive staff.
46 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Corporate Governance
The Company is committed to high standards of
corporate governance. The Board is accountable to the
Company’s shareholders for good governance and this
statement describes how the Company has applied the
principles identified in the UK Corporate Governance
Code as published in July 2018 (the “UK Code”), which is
available on the Financial Reporting Council’s (the “FRC”)
website: frc.org.uk.
The Board has also considered the principles and
provisions of the AIC Code of Corporate Governance as
published in February 2019 (the “AIC Code”). The AIC
Code addresses the principles and provisions set out in the
UK Code, as well as setting out additional provisions on
issues that are of specific relevance to the Company. The
AIC Code is available on the AIC’s website: theaic.co.uk.
The Board considers that reporting against the principles
and provisions of the AIC Code, which has been endorsed
by the FRC provides more relevant information to
shareholders.
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.
1. Interaction with the workforce (provisions 2, 5 and 6);
2. the role and responsibility of the chief executive
(provisions 9 and 14);
3. previous experience of the chairman of a
remuneration committee (provision 32); and
4. executive directors’ remuneration
(provisions 33 and 36 to 40).
For the reasons set out in the AIC Code, and as explained
in the UK Corporate Governance Code, the Board
considers that provisions 1 to 4 above are not relevant to
the position of the Company, being an externally
managed investment company. In particular, all of the
Company’s day-to-day management and administrative
functions are outsourced to third parties. As a result, the
Company has no executive directors, employees or
internal operations. The Company has therefore not
reported further in respect of provisions 1 to 4 above. The
full text of the Company’s Corporate Governance
Statement can be found on the Company’s website:
asia-focus.co.uk.
The Board is cognisant of the FRC’s new Corporate
Governance Code 2024 provisions effective for financial
years commencing on 1 January 2025 and expects to be
in compliance with the relevant elements of this Code for
the year ending 31 July 2026.
During the year ended 31 July 2025, the Board had five
scheduled meetings. In addition, the Audit Committee met
twice, and the Management Engagement Committee
met once and there has been a number of ad hoc Board
meetings. Between meetings the Board maintains regular
contact with the Manager. Directors have attended the
following scheduled Board meetings and Committee
meetings during the year ended 31 July 2025 (with their
eligibility to attend the relevant meeting in brackets):
Director Board Audit
Committee
Nomination
Committee
Management
Engagement
Committee
K Shanmuganathan
A
5 (5) n/a 2 (2) 1 (1)
C Black 5 (5) 2 (2) 2 (2) 1 (1)
L. Cooper 5 (5) 2 (2) 2 (2) 1 (1)
A Finn
5 (5) 2 (2) 2 (2) 1 (1)
L Macdonald
3 (3) 2 (2) 2 (2) 1 (1)
D Curling
3 (3) 2 (2) 2 (2) 1 (1)
A
The Chair is not a member of the Audit Committee but typically attends each meeting
by invitation.
Directors’ Report
Continued
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
47
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Policy on Tenure
In compliance with the provisions of the AIC Code, it is
expected that Directors will serve in accordance with the
nine-year time limits laid down by the AIC Code.
Board Committees
Audit Committee
The Audit Committee Report is on pages 57 to 59 of this
Annual Report.
Nomination Committee
All appointments to the Board of Directors are considered
by the Nomination Committee which comprises all of the
Directors. The Board’s overriding priority in appointing new
Directors to the Board is to identify the candidate with the
best range of skills and experience to complement
existing Directors. The Board also recognises the benefits
of diversity and its policy on diversity is referred to in the
Strategic Report on page 21.
In March 2025 the Board undertook its annual evaluation
of the Board, Directors, the Chair and the Audit
Committee which was conducted by questionnaires
facilitated by an independent external evaluation service
provider, Board Forms. Following the evaluation process,
the Board noted certain minor action points and
concluded that, overall, it operates effectively to promote
the success of the Company and that each Director
makes an effective contribution to the collective actions of
the Board.
The Nomination Committee has reviewed the
contributions of each Director ahead of their proposed re-
elections at the AGM on 8 December 2025 Ms Black has
continued to bring significant financial promotion,
marketing and communications expertise to the Board
and has been closely involved in the appointment of
external PR consultants during the year; Mr
Shanmuganathan has continued to bring his deep
experience of Asia and has chaired all meetings
effectively; Mr Cooper has brought the weight of his
significant local and up to date Asian market experience
to the Board’s discussions; Mr Finn has brought relevant
and recent accounting and financial experience to the
board and has led the Audit Committee with expertise; Ms
Macdonald has contributed significantly to the regular
investment discussions and Ms Curling has contributed
bringing her significant investment trust expertise to Board
discussions. For the foregoing reasons, the independent
members of the Nomination Committee have no
hesitation in recommending the re-election of each
Director who will be submitting themselves for re-election
at the AGM on 8 December 2025.
Management Engagement Committee
The Management Engagement Committee comprises all
the Directors and is chaired by Mr Finn. The Committee is
responsible for reviewing the performance of the
Investment Manager and its compliance with the terms of
the management and secretarial agreement. The terms
and conditions of the Investment Manager’s appointment,
including an evaluation of fees, are reviewed by the
Committee on an annual basis. The Committee believes
that the continuing appointment of the Manager on the
terms agreed is in the interests of shareholders as a whole.
Remuneration Committee
Under the UK Listing Authority rules, where an investment
trust has only non-executive directors, the Code principles
relating to directors’ remuneration do not apply.
Accordingly, matters relating to remuneration are dealt
with by the full Board, which acts as the Remuneration
Committee, and is chaired by the Chair.
The Company’s remuneration policy is to set
remuneration at a level to attract individuals of a calibre
appropriate to the Company's future development.
Further information on remuneration is disclosed in the
Directors’ Remuneration Report on pages 53 to 55.
Terms of Reference
The terms of reference of all the Board Committees may
be found on the Company’s website asia-focus.co.uk and
copies are available from the Company Secretary upon
request. The terms of reference are reviewed and re-
assessed by the Board for their adequacy on an
annual basis.
Internal Control
In accordance with the Disclosure and Transparency
Rules (DTR 7.2.5), the Board is ultimately responsible for
the Company’s system of internal control and for
reviewing its effectiveness and confirms that there is an
ongoing process for identifying, evaluating and managing
the significant risks faced by the Company. This process
has been in place for the year under review and up to the
date of approval of this Annual Report and Financial
Statements. It is regularly reviewed by the Board and
accords with the FRC Guidance.
48 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
The Board has reviewed the effectiveness of the system of
internal control. In particular, it has reviewed and updated
the process for identifying and evaluating the significant
risks affecting the Company and policies by which these
risks are managed.
The Directors have delegated the investment
management of the Company’s assets to the Aberdeen
Group within overall guidelines, and this embraces
implementation of the system of internal control, including
financial, operational and compliance controls and risk
management. Internal control systems are monitored and
supported by the Aberdeen Group’s internal audit function
which undertakes periodic examination of business
processes, including compliance with the terms of the
management agreement, and ensures that
recommendations to improve controls are implemented.
Risks are identified and documented through a risk
management framework by each function within the
Aberdeen Group’s activities. Risk includes financial,
regulatory, market, operational and reputational risk. This
helps the internal audit risk assessment model identify
those functions for review. Any weaknesses identified are
reported to the Board, and timetables are agreed for
implementing improvements to systems. The
implementation of any remedial action required is
monitored and feedback provided to the Board.
The significant risks faced by the Company have been
identified as being financial; operational; and
compliance related.
The key components of the process designed by the
Directors to provide effective internal control are
outlined below:
· the Manager prepares forecasts and management
accounts which allow the Board to assess the
Company’s activities and review its performance;
· the Board and Manager have agreed clearly defined
investment criteria, specified levels of authority and
exposure limits. Reports on these issues, including
performance statistics and investment valuations, are
regularly submitted to the Board and there are
meetings with the Manager and Investment Manager
as appropriate;
· as a matter of course the Manager’s compliance
department continually reviews Aberdeen’s operations
and reports to the Board on a six monthly basis;
· written agreements are in place which specifically
define the roles and responsibilities of the Manager and
other third-party service providers and, where relevant,
ISAE3402 Reports, a global assurance standard for
reporting on internal controls for service organisations,
or their equivalents are reviewed;
· the Board has considered the need for an internal audit
function but, because of the compliance and internal
control systems in place within Aberdeen, has decided
to place reliance on the Manager’s systems and internal
audit procedures; and
· at its October 2025 meeting, the Audit Committee
carried out an annual assessment of internal controls for
the year ended 31 July 2025 by considering
documentation from the Manager, Investment Manager
and the Depositary, including the internal audit and
compliance functions and taking account of events
since 31 July 2025. The results of the assessment, that
internal controls are satisfactory, were then reported to
the Board at the next Board meeting.
Internal control systems are designed to meet the
Company’s particular needs and the risks to which it is
exposed. Accordingly, the internal control systems are
designed to manage rather than eliminate the risk of
failure to achieve business objectives and by their nature
can only provide reasonable and not absolute assurance
against mis-statement and loss.
Going Concern
In accordance with the Financial Reporting Council's
guidance the Directors have undertaken a rigorous review
of the Company's ability to continue as a going concern.
The Company’s assets consist of equity shares in
companies listed on recognised stock exchanges and are
considered by the Board to be realisable within a relatively
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.
The Board has reviewed stress testing on the portfolio
covering reasonably possible downside market scenarios
with attention on the resulting liquidity of the portfolio. The
plausible downside scenarios modelled include historical
market events including the Global Financial crisis in 2008,
COVID-19 and other similar shocks and resulted in a
reduction in portfolio valuation of up to 26.1% in the
worst case.
Directors’ Report
Continued
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
49
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Directors are mindful of the Principal Risks and
Uncertainties disclosed in the Strategic Report on pages
19 and 20 and they believe that the Company has
adequate financial resources to continue its operational
existence for a period of 12 months from the date of
approval of this Annual 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, including in potentially
less favourable market conditions. The Directors have also
reviewed the revenue and ongoing expenses forecasts for
the coming year and considered the Company's
Statement of Financial Position as at 31 July 2025 which
shows net current liabilities of £26.6 million at that date,
and do not consider this to be a concern due to the
liquidity of the portfolio which would enable the Company
to meet any short term liabilities if required. Accordingly,
the Directors believe that it is appropriate to continue to
adopt the going concern basis in preparing the financial
statements.
Management of Conflicts of Interest
The Board has a procedure in place to deal with a
situation where a Director has a conflict of interest. As part
of this process, the Directors prepare 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 connected persons. The Board considers
each Director’s situation and decides whether to approve
any conflict, taking into consideration what is in the best
interests of the Company and whether the Director’s
ability to act in accordance with his or her wider duties is
affected. Each Director is required to notify the Company
Secretary of any potential, or actual, conflict situations
that will need authorising by the Board. Authorisations
given by the Board are reviewed at each Board meeting.
No Director has a service contract with the Company
although Directors are issued with letters of appointment
upon appointment. The Directors’ interests in contractual
arrangements with the Company are as shown in note 18
to the financial statements. No other Directors had any
interest in contracts with the Company during the period
or subsequently.
The Board has adopted appropriate procedures designed
to prevent bribery. The Company receives periodic
reports from its service providers on the anti-bribery
policies of these third parties. It also receives regular
compliance reports from the Manager.
The Criminal Finances Act 2017 introduced a new
corporate criminal offence of “failing to take reasonable
steps to prevent the facilitation of tax evasion”. The Board
has confirmed that it is the Company’s policy to conduct
all its business in an honest and ethical manner. The Board
takes a zero-tolerance approach to facilitation of tax
evasion, whether under UK law or under the law of any
foreign country.
Accountability and Audit
The respective responsibilities of the Directors and the
auditors in connection with the financial statements are
set out on pages 56 and 67 respectively.
Each Director confirms that:
· so far as he or she is aware, there is no relevant audit
information of which the Company’s auditors are
unaware; and,
· each Director has taken all the steps that they could
reasonably be expected to have taken as a Director in
order to make themselves aware of any relevant audit
information and to establish that the Company’s
auditors are aware of that information.
Additionally, there have been no important events since
the year end that impact this Annual Report.
The Directors have reviewed the independent auditors’
procedures in connection with the provision of non-audit
services. No non-audit services were provided by the
independent auditors during the year and the Directors
remain satisfied that the auditors’ objectivity and
independence has been safeguarded.
Independent Auditors
At the December 2024 AGM shareholders approved the
re-appointment of PricewaterhouseCoopers LLP (“PwC”)
as independent auditors to the Company. PwC has
expressed its willingness to continue to be the Company’s
auditors and a Resolution to re-appoint PwC as the
Company’s auditors and to authorise the Directors to fix
the auditors’ remuneration will be put to the forthcoming
Annual General Meeting.
50 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Substantial Interests
The Board has been advised that the following
shareholders owned 3% or more of the issued Ordinary
share capital of the Company at 31 July 2025:
Shareholder No. of Ordinary
shares held
% held
City of London Investment
Management Company
27,423,247 18.7
Interactive Investor (non-beneficial) 18,944,512 12.9
Allspring Global Investments 15,468,767 10.6
Hargreaves Lansdown (non-beneficial) 10,456,605 7.1
Funds managed by Aberdeen 12,208,249 8.3
Lazard Asset Management 6,217,814 4.2
Charles Stanley 4,359,108 3.0
On 18 September 2025 City of London Investment
Management Company notified a change in holding to
24,511,466 (16.9%) Ordinary shares. There have been no
other significant changes notified in respect of the above
holdings between 31 July 2025 and 22 October 2025.
The UK Stewardship Code and Proxy Voting
Responsibility for actively monitoring the activities of
portfolio companies has been delegated by the Board
to the AIFM which has sub-delegated that authority to
the Manager.
The Manager follows the UK Stewardship Code which
aims to enhance the quality of engagement by investors
with investee companies in order to improve their socially
responsible performance.
Relations with Shareholders
The Directors place a great deal of importance on
communication with shareholders. The Annual Report is
widely distributed to other parties who have an interest in
the Company’s performance. Shareholders and investors
may obtain up to date information on the Company
through the Manager’s freephone information service and
the Company’s website asia-focus.co.uk. The Company
responds to letters from shareholders on a wide range
of issues. The Chair, often in conjunction with another
Director, meets with the largest shareholders at
least annually.
The Board’s policy is to communicate directly with
shareholders and their representative bodies without the
involvement of the Aberdeen Group (either the Company
Secretary or the Manager) in situations where direct
communication is required and usually a representative
from the Board meets with major shareholders on an
annual basis to gauge their views.
The Notice of the Annual General Meeting, included within
the Annual Report and financial statements, is sent out at
least 20 working days in advance of the meeting. All
shareholders have the opportunity to put questions to the
Board or the Manager, either formally at the Company’s
Annual General Meeting or, where possible, at the
subsequent buffet luncheon for shareholders. The
Company Secretary is available to answer general
shareholder queries at any time throughout the year.
Consumer Duty
The FCA’s Consumer Duty rules were published in July
2022. The rules comprise a fundamental component of
the FCA’s consumer protection strategy and aim to
improve outcomes for retail customers 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 the Consumer
Duty, the Manager is the product ‘manufacturer’ of the
Company and therefore the Manager was required to
publish its assessment of value from April 2023. Using a
specially developed assessment methodology, the
Manager assessed the Company as 'expected to provide
fair value for the reasonably foreseeable future'. The
Board reviews the Manager’s annual assessment in order
to better understand the Manager's basis of assessment
and no concerns were identified with either the
assessment method or the outcome of the assessment.
Directors’ Report
Continued
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
51
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Special Business at the Annual
General Meeting
Directors’ Authority to Allot Relevant Securities
Approval is sought in Resolution 11, an ordinary resolution,
to renew the Directors’ existing general power to allot
securities but will also, provide a further authority (subject
to certain limits), to allot shares under a fully pre-emptive
rights issue. The effect of Resolution 11 is to authorise the
Directors to allot up to a maximum of 95.5 million shares in
total (representing approximately 2/3 of the existing
issued capital of the Company), of which a maximum of
47.7 million shares (approximately 1/3 of the existing
issued share capital) may only be applied to fully pre-
emptive rights issues. This authority is renewable annually
and will expire at the conclusion of the next Annual
General Meeting. The Board has no present intention to
utilise this authority.
Disapplication of Pre-emption Rights
Resolution 12 is a special resolution that seeks to renew
the Directors’ existing authority until the conclusion of the
next Annual General Meeting to make limited allotments
of shares for cash of up to 10% of the issued share capital
other than according to the statutory pre-emption rights
which require all shares issued for cash to be offered first
to all existing shareholders. This authority includes the
ability to sell shares that have been held in treasury (if
any), having previously been bought back by the
Company. The Board has established guidelines for
treasury shares and will only consider buying in shares for
treasury at a discount to their prevailing NAV and selling
them from treasury at or above the then prevailing NAV.
New shares issued in accordance with Resolution 12 and
subject to the authority to be conferred by Resolution 11
will always be issued at a premium to the NAV per
Ordinary share at the time of issue. The Board will issue
new Ordinary shares or sell Ordinary shares from treasury
for cash when it is appropriate to do so, in accordance
with its current policy. It is therefore possible that the
issued share capital of the Company may change
between the date of this document and the Annual
General Meeting and therefore the authority sought will
be in respect of 10% of the issued share capital as at the
date of the Annual General Meeting rather than the date
of this document.
Purchase of the Company’s Shares
Resolution 13 is a special resolution proposing to renew
the Directors’ authority to make market purchases of the
Company’s shares in accordance with the provisions
contained in the Companies Act 2006 and the Listing Rules
of the Financial Conduct Authority. The minimum price to
be paid per Ordinary share by the Company will not be
less than 5p per share (being the nominal value) and the
maximum price should not be more than the higher of (i)
5% above the average of the middle market quotations
for the shares for the preceding five business days; and (ii)
the higher of the last independent trade and the current
highest independent bid on the trading venue where the
purchase is carried out.
The Directors do not intend to use this authority to
purchase the Company’s Ordinary shares unless to do so
would result in an increase in NAV per share and would be
in the interests of shareholders generally. The authority
sought will be in respect of 14.99% of the issued share
capital as at the date of the Annual General Meeting
rather than the date of this document.
The authority being sought in Resolution 13 will expire at
the conclusion of the next Annual General Meeting unless
it is renewed before that date. Any Ordinary shares
purchased in this way will either be cancelled and the
number of Ordinary shares will be reduced accordingly or
under the authority granted in Resolution 12 above, may
be held in treasury. During the year the Company has not
bought back any Ordinary shares for Treasury.
If Resolutions 11 to 13 are passed, then an announcement
will be made on the date of the Annual General Meeting
which will detail the exact number of Ordinary shares to
which each of these authorities relate.
These powers will give the Directors additional flexibility
going forward and the Board considers that it will be in the
interests of the Company that such powers be available.
Such powers will only be implemented when, in the view of
the Directors, to do so will be to the benefit of shareholders
as a whole.
52 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Notice of Meetings
Resolution 14 is a special resolution seeking to authorise
the Directors to call general meetings of the Company
(other than Annual General Meetings) on 14 days’ notice.
This approval will be effective until the Company’s next
Annual General Meeting in 2026. In order to utilise this
shorter notice period, the Company is required to ensure
that shareholders are able to vote electronically at the
general meeting called on such short notice. The Directors
confirm that, in the event that a general meeting is called,
they will give as much notice as practicable and will only
utilise the authority granted by Resolution 14 in limited and
time sensitive circumstances.
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
and on an annual basis thereafter.
The Company’s dividend policy shall be that dividends on
the Ordinary Shares are payable quarterly in relation to
periods ending October, January, April and July. It is
intended that the Company will pay quarterly dividends
consistent with the expected annual underlying portfolio
yield. The Company has the flexibility in accordance with
its Articles to make distributions from capital. Resolution 3,
an ordinary resolution, will seek shareholder approval for
the dividend policy.
Recommendation
Your Board considers Resolutions 11 to 14 to be in the best
interests of the Company and its members as a whole and
most likely to promote the success of the Company for the
benefit of its members as a whole. Accordingly, your
Board unanimously recommends that shareholders
should vote in favour of Resolutions 11 to 14 to be
proposed at the AGM, as they intend to do in respect of
their own beneficial shareholdings amounting to 41,947
Ordinary shares.
By order of the Board
abrdn Holdings Limited -Secretaries
280 Bishopsgate
London EC2M 4AG
22 October 2025
Directors’ Report
Continued
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
53
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
The Board has prepared this report in accordance with
the regulations governing the disclosure and approval of
Directors’ remuneration. This Directors’ Remuneration
Report comprises three parts:
1. Remuneration Policy which is subject to a binding
shareholder vote every three years (or sooner if
varied during this interval) – most recently voted on at
the AGM on 5 December 2023;
2. Implementation Report which provides information
on how the Remuneration Policy has been applied
during the year and which is subject to an advisory
vote on the level of remuneration paid during the
year; and
3. Annual Statement.
The law requires the Company’s auditors to audit certain
of the disclosures provided. Where disclosures have been
audited, they are indicated as such. The auditors’ opinion is
included in the report on page 62.
Remuneration Policy
The Directors’ Remuneration Policy takes into
consideration the principles of UK Corporate Governance
and there have been no changes to the policy during the
period of this Report nor are there any proposals for the
foreseeable future.
As the Company has no employees and the Board is
comprised wholly of non-executive Directors and, given
the size and nature of the Company, the Board has not
established a separate Remuneration Committee.
Directors’ remuneration is determined by the Board
as a whole.
The Directors are non-executive and the Company’s
Articles of Association limit the annual aggregate fees
payable to the Board of Directors to £275,000 per annum.
This cap may be increased by shareholder resolution from
time to time and was last increased at the General
Meeting held in January 2022.
31 July 2025
£
31 July 2024
£
Chair 49,000 42,000
Chairman of Audit Committee 40,000 34,000
Director 33,000 30,000
Subject to this overall limit, the Board’s policy is that the
remuneration of non-executive Directors should reflect
the nature of their duties, responsibilities and the value
of their time spent and be fair and comparable to that
of other investment trusts that are similar in size, have
a similar capital structure and have a similar
investment objective.
Appointment
· The Company only intends to appoint non-executive
Directors.
· All the Directors are non-executive appointed under the
terms of Letters of Appointment.
· Directors must retire and be subject to re-election at the
first AGM after their appointment, and at least every
three years thereafter.
· New appointments to the Board will be placed on the
fee applicable to all Directors at the time of appointment
(currently £33,000 per annum).
· No incentive or introductory fees will be paid to
encourage a Directorship.
· The 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, including travel expenses.
· The Company indemnifies its Directors for all costs,
charges, losses, expenses and liabilities which may be
incurred in the discharge of duties, as a Director of
the Company.
Performance, Service Contracts, Compensation
and Loss of Office
· The Directors’ remuneration is not subject to any
performance-related fee.
· No Director has a service contract.
· No Director has an interest in any contracts with the
Company during the period or subsequently.
· The terms of appointment provide that a Director may
be removed upon three months’ notice.
· Compensation will not be due upon leaving office.
· No Director is entitled to any other monetary payment
or to any assets of the Company.
Directors’ Remuneration Report
54 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Directors’ and Officers’ liability insurance cover is
maintained by the Company on behalf of the Directors.
Under the Articles, the Company indemnifies each of the
Directors out of the assets of the Company against any
liability incurred by them as a Director in defending
proceedings or in connection with any application to the
Court in which relief is granted and separate deeds of
indemnity exist in this regard between the Company and
each Director.
Implementation Report
Directors’ Fees
During the year the Board carried out its annual review of
the level of fees payable to Directors including a review of
comparable peer group directors’ fees and the impact of
inflation. Following the review, it was concluded that the
fees should be increased from £42,000 to £49,000 for the
Chair, from £34,000 to £40,000 for the Audit Committee
Chairman and from £30,000 to £33,000 for other Directors,
with effect from 1 February 2025. Prior to this change, the
Directors’ fees were last increased with effect from 1
February 2024. There are no further fees to disclose as
the Company has no employees, chief executive or
executive directors.
Company Performance
The following chart illustrates the total shareholder return
(including reinvested dividends) for a holding in the
Company’s shares as compared to the MSCI AC Asia ex
Japan Small Cap Index (in Sterling terms) for the ten-year
period to 31 July 2025 (rebased to 100 at 31 July 2015).
Given the absence of any meaningful index with which to
compare performance, this index is deemed to be the
most appropriate one against which to measure the
Company’s performance.
100
120
140
160
180
200
220
240
260
280
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Share Price MSCI AC ex Japan Small Cap Index
Statement of Voting at General Meeting
At the Company’s last Annual General Meeting, held on 6
December 2024, shareholders approved the Directors’
Remuneration Report in respect of the year ended 31 July
2024 and the following proxy votes lodged:
Resolution For
A
Against Withheld
(2) Receive and Adopt Directors’
Remuneration Report
83.2m
(99.82%)
153,568
(0.18%)
75,901
(3) To approve the Directors’
Remuneration Policy
B
90.6m
(99.8%)
213,387
(0.2%)
158,4890
A
Including discretionary votes.
B
Approved at the AGM held on 5 December 2023.
Spend on Pay
As the Company has no employees, the Directors do not
consider it appropriate to present a table comparing
remuneration paid to Directors with distributions to
shareholders. However, for ease of reference, the total
fees paid to Directors is shown in the table below, the
dividends paid to shareholders are set out in note 8 and
the shares bought back for treasury are disclosed in
note 14.
Directors’ Remuneration Report
Continued
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
55
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Audited Information
Directors’ Remuneration Table (audited)
The Directors who served in the year received the
following fixed fees which exclude employers’ NI and any
VAT payable:
Director 2025
£
2024
£
K Shanmuganathan (Chair and highest paid
Director)
45,500 39,750
C Black 31,500 29,250
L Cooper
31,500 29,326
A Finn 37,000 33,000
L Macdonald
A
31,500 19,367
D Curling
B
31,500 12,500
The Earl of Antrim
C
- 9,883
Total 208,500 173,076
A
Ms Macdonald was appointed to the Board on 5 December 2023.
B
Ms Curling was appointed to the Board on 1 March 2024.
C
The Earl of Antrim retired on 5 December 2023.
No taxable benefits were paid to Directors during the year
(2024: nil).
Annual Percentage Change in Directors’
Remuneration
The table below sets out the annual percentage change in
Directors’ fees for the past five years.
Director
2025
%
2024
%
2023
%
2022
%
2021
%
K Shanmuganathan (Chair
and highest paid Director)
A
14.5 17.4 23.0 0.8 84.1
C Black
7.7 4.5 1.8 0.8 1.1
L Cooper
B
7.4 4.9 n/a n/a n/a
A Finn
C
12.1 5.6 n/a n/a n/a
L Macdonald
D
62.7 - n/a n/a n/a
D Curling
E
152.0 - n/a n/a n/a
A
Mr Shanmuganathan was appointed to the Board on 3 June 2020.
B
Mr Cooper was appointed to the Board on 15 June 2022.
C
Mr Finn was appointed to the Board on 13 July 2022.
D
Ms Macdonald was appointed to the Board on 5 December 2023.
E
Ms Curling was appointed to the Board on 1 March 2024.
Sums Paid to Third Parties
None of the fees disclosed above were payable to third
parties in respect of making available the services of
Directors. The amounts paid by the Company to the
Directors were for services as non-executive Directors.
Directors’ Interests in the Company
(audited)
The Directors are not required to have a shareholding in
the Company. The Directors’ interests in contractual
arrangements with the Company are as shown in note 18
to the financial statements. The Directors (including
connected persons) at 31 July 2025 and 31 July 2024, had
no interest in the share capital of the Company other than
those interests, all of which are beneficial interests, shown
in the following table.
31 July 2025 31 July 2024
Ordinary shares Ordinary shares
K Shanmuganathan 17,859 9,047
C Black 4,790 4,790
L Cooper - -
A Finn 5,298 -
L Macdonald 12,000 12,000
D Curling 2,000 -
The above interests are unchanged at 22 October 2025,
being the nearest practicable date prior to the signing 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, I confirm that the above Report on
Remuneration Policy and Remuneration Implementation
summarises, as applicable, for the year ended
31 July 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 in which
decisions have been taken.
Krishna Shanmuganathan,
Chair
22 October 2025
56 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
The Directors are responsible for preparing the Annual
Report and financial statements, in accordance with
applicable law and regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law the
Directors have prepared the financial statements in
accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting
Standards, comprising FRS 102 “The Financial Reporting
Standard applicable in the UK and Republic of Ireland”, and
applicable law).
Under Company law the Directors must not approve the
financial statements unless they are satisfied that they
give a true and fair view of the state of affairs of the
Company and of 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 judgments and estimates that are reasonable
and prudent;
· state whether applicable UK Accounting Standards
comprising FRS 102 have been followed, subject to any
material departures disclosed and explained in the
financial statements; 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 proper
accounting records that are sufficient to show and explain
the Company’s transactions and which 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 also responsible 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 Directors’ Report
including Strategic Report, Business Review, Directors’
Remuneration Report and Statement of Corporate
Governance that comply with that law and
those regulations.
The financial statements are published on asia-focus.co.uk
which is a website maintained by the Company’s
Manager. The Directors are responsible for the
maintenance and integrity of the corporate and financial
information included on the Company’s website.
Legislation in the UK governing the preparation and
dissemination of financial statements may differ from
legislation in other jurisdictions.
The Directors listed on pages 40 to 42, being the persons
responsible, hereby confirm to the best of their
knowledge that:
· the financial statements, prepared in accordance with
United Kingdom Accounting Standards, comprising FRS
102, give a true and fair view of the assets, liabilities,
financial position and net return of the Company;
· that in the opinion of the Directors, the Annual Report
and financial statements taken as a whole, is fair,
balanced and understandable and it provides the
information necessary to assess the Company’s
performance, business model and strategy. In reaching
this conclusion the Board has assumed that the reader
of the Annual Report and financial statements would
have a reasonable level of general investment
knowledge, and in particular, of investment trusts; 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.
For Aberdeen Asia Focus PLC
Krishna Shanmuganathan,
Chair
22 October 2025
Statement of Directors’ Responsibilities
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
57
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
I am pleased to present the report of the Audit Committee
for the year ended 31 July 2025 which has been prepared
in compliance with applicable legislation.
Committee Composition
The Audit Committee comprises of five independent
Directors at the year end; Charlotte Black, Lindsay
Cooper, Lucy Macdonald, Davina Curling and myself (Alex
Finn), as Chairman. The Directors have satisfied
themselves that at least one of the Committee’s members
has recent and relevant financial experience and I confirm
that the Audit Committee as a whole has competence
relevant to the investment trust sector.
The Audit Committee continues to believe that the
Company does not require an internal audit function of its
own as it delegates its day-to-day operations to third
parties from whom it receives internal controls reports.
Functions of the Committee
The principal function of the Committee is to assist the
Board in relation to the reporting of financial information,
the review of financial controls and the management of
risk. The Committee has defined terms of reference
which are reviewed and re-assessed for their adequacy
on an annual basis. Copies of the terms of reference are
published on the Company's website.
The Committee’s main audit review functions are
listed below:
· to review and monitor the internal control systems and
risk management systems (including those relating to
non-financial risks) on which the Company is reliant;
· to consider annually whether there is a need for the
Company to have its own internal audit function;
· to monitor the integrity of the half-yearly and annual
financial statements of the Company by reviewing, and
challenging where necessary, the actions and
judgements of the Manager;
· to review, and report to the Board on, the significant
financial reporting issues and judgements made in
connection with the preparation of the Company’s
financial statements, interim reports, announcements
and related formal statements;
· to review the content of the Annual Report and Financial
Statements and advise the Board on whether, taken as
a whole, it is fair, balanced and understandable and
provides the information necessary for shareholders to
assess the Company’s performance, business model
and strategy;
· to meet with the auditors to review their proposed audit
programme of work and the findings of the auditors. The
Committee shall also use this as an opportunity to
assess the effectiveness of the audit process;
· to review a statement from the Manager detailing the
arrangements in place within the Manager whereby the
Manager’s staff may, in confidence, escalate concerns
about possible improprieties in matters of financial
reporting or other matters (“whistleblowing”);
· to make recommendations in relation to the
appointment of the auditors and to approve the
remuneration and terms of engagement of the auditors;
· to monitor and review annually the auditors’
independence, objectivity, effectiveness, resources and
qualification; and
· to investigate, when an auditor resigns, the reasons
giving rise to such resignation and consider whether any
action is required.
Activities During the Year
The Audit Committee met twice during the year when it
considered the Annual Report and the Half Yearly Report
in detail. Representatives of the Aberdeen Group internal
audit, risk and compliance departments reported to the
Committee at these meetings on matters such as internal
control systems, risk and the conduct of the business in the
context of its regulatory environment.
The Committee also undertook a further deep-dive
review of the Company’s Risk Register in order to ensure
that it was functional and fit for purpose.
Review of Internal Control Systems and Risk
The Committee considers the internal control systems
and a matrix of risks at each of its meetings. There is
more detail on the process of these reviews in the
Strategic Report.
Report of the Audit Committee
58 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Financial Statements and Significant Issues
During its review of the Company’s financial statements
for the year ended 31 July 2025, the Audit Committee
considered the following significant issues, including, in
particular, those communicated by the auditors as key
areas of audit emphasis during their planning and
reporting of the year end audit.
Valuation and Existence of Investments
The valuation of investments is undertaken in accordance
with the accounting policies, disclosed in note 2(b) to the
financial statements on page 73. All investments are listed
and 100% of the portfolio is considered liquid and quoted
in active markets and have been categorised as Level 1
within the FRS 102 fair value hierarchy and can be verified
against daily market prices. The portfolio holdings and
their pricing are reviewed and verified by the Manager on
a regular basis and management accounts, including a full
portfolio listing, are prepared each month and circulated
to the Board. The portfolio is also reviewed annually by the
auditors and all prices are checked to independent
sources by the auditors. The Company used the services
of an independent Depositary (BNP Paribas SA London
Branch) during the year under review to hold the assets of
the Company. The investment portfolio is reconciled
regularly by the Manager to the depositary/custodian
records and further corroboration is received from the
depositary which confirmed that the accounting records
correctly reflected all investee holdings and that these
agreed to custodian records.
Recognition of Investment Income
The recognition of investment income is undertaken in
accordance with accounting policy note 2(d) to the
financial statements on page 74. Special dividends are
allocated to the capital or revenue accounts according to
the nature of the payment and the intention of the
underlying company. The Directors review monthly
revenue forecasts and dividend comparisons, and the
Manager provides monthly internal control reports to the
Board.
Correct Calculation of Management Fees
The management fees are calculated by the Manager
and reviewed periodically by the Board.
Review of Financial Statements
The Committee is responsible for the preparation of the
Company’s Annual Report. The process is extensive,
requiring input from a number of different third-party
service providers. The Committee reports to the Board on
whether, taken as a whole, the Annual Report and
financial statements are fair, balanced and
understandable. In so doing, the Committee has
considered the following matters:
· the existence of a comprehensive control framework
surrounding the production of the Annual Report and
financial statements which includes a number of
different checking processes;
· the existence of extensive levels of reviews as part of the
production process involving the depositary, the
Manager, the Company Secretary and the auditors
taken together as well as the Committee’s own
expertise;
· the controls in place within the various third-party
service providers to ensure the completeness and
accuracy of the financial records and the security of the
Company’s assets; and
· the externally audited internal control reports of the
Manager, Depositary and related service providers.
The Committee has reviewed the Annual Report and the
work undertaken by the third-party service providers and
is satisfied that, taken as a whole, the Annual Report and
financial statements is fair balanced and understandable.
In reaching this conclusion, the Committee has assumed
that the reader of the Annual Report would have a
reasonable level of knowledge of the investment trust
industry in general and of investment trusts in particular.
The Committee has reported its findings to the Board
which in turn has made its own statement in this regard in
the Directors’ Responsibility Statement on page 56.
Provision of Non-Audit Services
The Committee has put in place a policy on the supply of
non-audit services provided by the auditor. Such services
are considered on a case-by-case basis and may only be
provided if the service is at a reasonable and competitive
cost and does not constitute a conflict of interest or
potential conflict of interest or prevent the auditor from
remaining objective and independent. All non-audit
services require the pre-approval of the Committee. No
non-audit fees were paid to the auditor during the Year
(2024 - nil). The Committee confirms that it has complied
with Part 5.1 of the Competitions and Market Authority’s
Order 2014.
Report of the Audit Committee
Continued
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
59
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Review of Auditors
The Audit Committee has reviewed the effectiveness of
the auditors including:
· Independence: the auditors discuss with the Audit
Committee, at least annually, the steps taken to ensure
their independence and objectivity and make the
Committee aware of any potential issues, explaining all
relevant safeguards;
· Quality of audit work in terms of: (i) the ability to work in
a collegiate manner with the Board and Manager,
addressing queries and issues in a timely manner – 2025
represents the fifth year for PwC and the Audit
Committee is confident that identified queries and
issues have been satisfactorily and promptly resolved;
(ii) its communications/ presentation of outputs – the
Audit Committee is satisfied that the explanation of the
audit plan, any deviations from it and the subsequent
audit findings are comprehensive and comprehensible;
and (iii) the working relationship with management - the
Audit Committee is satisfied that the auditors have
already developed a very constructive working
relationship with the Manager; and,
· Quality of people and service including continuity and
succession plans: the Audit Committee is satisfied that
the audit team is made up of sufficient, suitably
experienced staff with provision made for knowledge of
the investment trust sector and retention on rotation of
the partner.
In 2020 the Audit Committee undertook a tender for the
Company’s external audit services and
PricewaterhouseCoopers LLP (“PwC”) were chosen as the
Company’s independent auditor, with the appointment
having been approved by shareholders at the AGM held
on 1 December 2020.
In accordance with present professional guidelines the
Senior Statutory Auditor is rotated after no more than five
years and the year ended 31 July 2025 will be the fifth year
for which the present Senior Statutory Auditor, Ms Gillian
Alexander, has served. The Committee considers PwC,
the Company’s auditor, to be independent of
the Company.
Alex Finn
Audit Committee Chairman
22 October 2025
60 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Financial
Statements
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
61
Three interim dividends of 1.6p and a fourth interim of 1.63p have been
paid in March, June, September and December 2025 totalling 6.43p
(2024 – Ordinary dividend 6.42p).
62 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Report on the audit of the financial statements
Opinion
In our opinion, Aberdeen Asia Focus PLC (formerly abrdn Asia Focus plc)’s financial statements:
· give a true and fair view of the state of the Company’s affairs as at 31 July 2025 and of its return and cash flows for the
year then ended;
· have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic
of Ireland”, and applicable law); and
· have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements, included within the Annual Report, which comprise: the Statement of Financial
Position as at 31 July 2025; the Statement of Comprehensive Income, the Statement of Changes in Equity and the
Statement of Cash Flows for the year then ended; and the notes to the financial statements, which include a description
of the significant accounting policies.
Our opinion is consistent with our reporting to the Audit Committee
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law.
Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial
statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
Independence
We remained independent of the Company in accordance with the ethical requirements that are relevant to our audit
of the financial statements in the UK, which includes the FRC’s Ethical Standard, as applicable to listed public interest
entities, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s Ethical Standard
were not provided.
We have provided no non-audit services to the Company in the period under audit.
Our audit approach
Context
The Company is a standalone Investment Trust Company and engages abrdn Fund Managers Limited (the “AIFM”) to
manage its assets and its accounting processes.
Overview
Audit scope
· We conducted our audit of the financial statements using information from the AIFM to whom the Directors have
delegated the provision of all administrative functions.
· We tailored the scope of our audit taking into account the types of investments within the Company, the involvement
of the AIFM, the accounting processes and controls, and the industry in which the Company operates.
· We obtained an understanding of the control environment in place at both the Manager and the Administrator and
adopted a fully substantive testing approach
Independent auditors’ report to the members of
Aberdeen Asia Focus PLC
(
formerly abrdn Asia Focus plc
)
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
63
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Key audit matters
· Accuracy, occurrence and completeness of Income from investments.
· Valuation and existence of listed investments
Materiality
· Overall materiality: £5,585,930 (2024: £5,022,000) based on 1% of Net Assets.
· Performance materiality: £4,189,448 (2024: £3,766,500).
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the
financial statements.
Key audit matters
Key audit matters are those matters that, in the auditors’ professional judgement, were of most significance in the 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) identified by the auditors, including those which had the greatest effect on: the overall
audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team. These matters,
and any comments we make on the results of our procedures thereon, were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
This is not a complete list of all risks identified by our audit.
The key audit matters below are consistent with last year.
Key audit matter How our audit addressed the key audit matter
Accuracy, occurrence and completeness of Income
Refer to the Report of the Audit Committee,
Accounting Policies and the Notes to the Financial
Statements.
Within dividend income, there is a risk of incomplete
or inaccurate recognition of income through the
failure to recognise proper income entitlements or
to apply an inappropriate accounting treatment.
In addition, the Directors are required to exercise
judgement in determining whether income
receivable in the form of special dividends should
be classified as ‘revenue’ or ‘capital’ in the
Statement of Comprehensive Income.
We responded to this risk by performing the following audit procedures:
· We obtained an understanding of the processes and controls around
income recognition and classification of special dividends by reviewing the
internal controls reports of the Fund Accountant; and
· We assessed the appropriateness of the classification of special dividends
as revenue or capital by the Directors with reference to publicly available
information.
For all dividends recorded by the Company, we performed our audit
procedures through the use of our proprietary testing tool Halo:
· We tested the accuracy of dividend income by agreeing the dividend rates
from investments to independent market Data.
· We tested occurrence by examining for each investment holding, that all
dividends recorded in the year had been declared in the market; and
· To test for completeness, we investigated that the appropriate dividend
income had been received in the year by reference to independent data of
dividends declared for all investment holdings held within the year.
As stipulated by the requirements set out in the AIC SORP, we tested the
allocation and presentation of dividend income between the revenue and
capital columns of the Statement of Comprehensive Income, on a sample
basis by determining reasons behind dividend distributions.
64 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Key audit matter How our audit addressed the key audit matter
We have no matters to report as a result of this testing.
Valuation and existence of listed investments
Refer to the Report of the Audit Committee,
Accounting Policies and the Notes to the Financial
Statements.
The investment portfolio at 31 July 2025 comprised
quoted investments of £621million. We focused on
the valuation and existence of investments
because investments represent the principal
element of the net asset value as disclosed in the
Statement of Financial Position in the financial
statements.
Our audit work on the valuation of the listed investments included the
following:
• We tested the valuation of the listed investments by agreeing the
prices used in the valuation to independent third-party sources; and
• We tested the existence of listed investments by agreeing the
holdings to an independent confirmation from the Depositary, BNP
Paribas SA, London Branch, as at 31 July 2025
We have no matters to report as a result of this testing.
How we tailored the audit scope
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the
financial statements as a whole, taking into account the structure of the Company, the accounting processes and
controls, and the industry in which it operates.
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial
statements. In particular, we looked at where subjective judgements are made, for example in respect of classification of
special dividends as revenue or capital.
The impact of climate risk on our audit
In planning our audit, we made enquiries of the Directors to understand the extent of the potential impact of climate
change risk on the Company’s financial statements. The Directors concluded that the impact on the measurement and
disclosures within the financial statements is not material because the majority of the Company’s investment portfolio is
made up of level 1 quoted securities which are valued at fair value based on market prices. We found this to be
consistent with our understanding of the Company’s investment activities. We also considered the consistency of the
climate change disclosures included in the Strategic Report with the financial statements and our knowledge from
our audit.
Materiality
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
evaluating the effect of misstatements, both individually and in aggregate on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Overall Company materiality £5,585,930 (2024: £5,022,000).
How we determined it 1% of Net Assets.
Rationale for benchmark applied We believe that net assets is the primary measure used by the shareholders in assessing the
performance of the entity, and is a generally accepted auditing benchmark. This benchmark
provides an appropriate and consistent year on year basis.
Independent auditors’ report to the members of
Aberdeen Asia Focus PLC
(
formerly abrdn Asia Focus plc
)
Continued
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
65
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
We use performance materiality to reduce to an appropriately low level the probability that the aggregate of
uncorrected and undetected misstatements exceeds overall materiality. Specifically, we use performance materiality in
determining the scope of our audit and the nature and extent of our testing of account balances, classes of transactions
and disclosures, for example in determining sample sizes. Our performance materiality was 75% (2024: 75%) of overall
materiality, amounting to £4,189,448 (2024: £3,766,500) for the Company financial statements.
In determining the performance materiality, we considered a number of factors - the history of misstatements, risk
assessment and aggregation risk and the effectiveness of controls - and concluded that an amount at the upper end of
our normal range was appropriate.
We agreed with the Audit Committee that we would report to them misstatements identified during our audit above
£279,297 (2024: £251,100) as well as misstatements below that amount that, in our view, warranted reporting for
qualitative reasons.
Conclusions relating to going concern
Our evaluation of the directors’ assessment of the Company’s ability to continue to adopt the going concern basis of
accounting included:
• evaluating the Directors’ updated risk assessment and considering whether it addressed relevant threats,
including the wider macroeconomic uncertainty;
• evaluating the Directors' assessment of potential operational impacts, considering their consistency with other
available information and our understanding of the business and assessed the potential impact on the financial
statements;
• reviewing the Directors' assessment of the Company's financial position in the context of its ability to meet future
expected operating expenses and debt repayments, their assessment of liquidity as well as their review of the
operational resilience of the Company, oversight of key third-party service providers and monitoring of the
potential performance-linked tender offer; and
• assessing the implication of significant reductions in Net Asset Value (NAV) as a result of market performance
on the ongoing ability of the Company to operate.
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 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.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the
Company's ability to continue as a going concern.
In relation to the directors’ reporting on how they have 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.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the financial statements and our
auditors’ report thereon. The directors are responsible for the other information. Our opinion on the financial statements
does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent
otherwise explicitly stated in this report, any form of assurance thereon.
66 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our knowledge
obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency
or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement
of the financial statements or a material misstatement of the other information. 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 based on these responsibilities.
With respect to the Strategic Report and Directors' Report, we also considered whether the disclosures required by the
UK Companies Act 2006 have been included.
Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain
opinions and matters as described below.
Strategic Report and Directors' Report
In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic report and
Directors' Report for the year ended 31 July 2025 is consistent with the financial statements and has been prepared in
accordance with applicable legal requirements.
In light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we
did not identify any material misstatements in the Strategic report and Directors' Report.
Directors’ Remuneration
In our opinion, the part of the Directors' Remuneration Report to be audited has been properly prepared in accordance
with the Companies Act 2006.
Corporate governance statement
The Listing Rules require us to review the directors’ statements in relation to going concern, longer-term viability and that
part of the corporate governance statement relating to the Company’s compliance with the provisions of the UK
Corporate Governance Code specified for our review. Our additional responsibilities with respect to the corporate
governance statement as other information are described in the Reporting on other information section of this report.
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 and our knowledge obtained
during the audit, and we have nothing material to add or draw attention to in relation to:
· The directors’ confirmation that they have carried out a robust assessment of the emerging and principal risks;
· The disclosures in the Annual Report that describe those principal risks, what procedures are in place to identify
emerging risks and an explanation of how these are being managed or mitigated;
· The directors’ statement in the financial statements about whether they considered it appropriate to adopt the
going concern basis of accounting in preparing them, and their identification of any material uncertainties to the
Company’s ability to continue to do so over a period of at least twelve months from the date of approval of the
financial statements;
· The directors’ explanation as to their assessment of the Company’s prospects, the period this assessment
covers and why the period is appropriate; and
· The directors’ statement as to whether they have a reasonable expectation that the Company will be able to
continue in operation and meet its liabilities as they fall due over the period of its assessment, including any
related disclosures drawing attention to any necessary qualifications or assumptions.
Our review of the directors’ statement regarding the longer-term viability of the Company was substantially less in
scope than an audit and only consisted of making inquiries and considering the directors’ process supporting their
statement; checking that the statement is in alignment with the relevant provisions of the UK Corporate Governance
Code; and considering whether the statement is consistent with the financial statements and our knowledge and
understanding of the Company and its environment obtained in the course of the audit.
Independent auditors’ report to the members of
Aberdeen Asia Focus PLC
(
formerly abrdn Asia Focus plc
)
Continued
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
67
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
In addition, 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 and our knowledge obtained
during the audit:
· The directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced and
understandable, and provides the information necessary for the members to assess the Company's position,
performance, business model and strategy;
· The section of the Annual Report that describes the review of effectiveness of risk management and internal
control systems; and
· The section of the Annual Report describing the work of the Audit Committee.
We have nothing to report in respect of our responsibility to report when the directors’ statement relating to the
Company’s compliance with the Code does not properly disclose a departure from a relevant provision of the Code
specified under the Listing Rules for review by the auditors.
Responsibilities for the financial statements and the audit
Responsibilities of the directors for the financial statements
As explained more fully in the Statement of Directors’ Responsibilities, the directors are responsible for the preparation of
the financial statements in accordance with the applicable framework and for being satisfied that they give a true and
fair view. The directors are also 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.
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.
Auditors’ 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 auditors’ 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.
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.
Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with
laws and regulations related to breaches of Section 1158 of the Corporation Tax Act 2010, and we considered the extent
to which non-compliance might have a material effect on the financial statements. We evaluated management’s
incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of
controls), and determined that the principal risks were related to posting inappropriate journal entries to increase
revenue or to increase net asset value. Audit procedures performed by the engagement team included:
· discussions with the Directors, the AIFM and the Company Secretary, including specific enquiry of known or
suspected instances of non-compliance with laws and regulation and fraud where applicable;
· reviewing relevant meeting minutes, including those of the Audit Committee and the Board of Directors;
· assessment of the Company’s compliance with the requirements of section 1158 of the Corporation Tax
Act 2010;
68 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
· identifying and testing year-end journal entries, in particular any material or revenue-impacting manual journal
entries posted as part of the Annual Report preparation process; and
· designed audit procedures to incorporate unpredictability around the nature, timing or extent of our testing.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances
of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the
financial statements. Also, 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 deliberate concealment by, for example, forgery or intentional
misrepresentations, or through collusion.
Our audit testing might include testing complete populations of certain transactions and balances, possibly using data
auditing techniques. However, it typically involves selecting a limited number of items for testing, rather than testing
complete populations. We will often seek to target particular items for testing based on their size or risk characteristics.
In other cases, we will use audit sampling to enable us to draw a conclusion about the population from which the sample
is selected.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the Company’s members as a body in
accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these
opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or
into whose hands it may come save where expressly agreed by our prior consent in writing.
Other required reporting
Companies Act 2006 exception reporting
Under the Companies Act 2006 we are required to report to you if, in our opinion:
· we have not obtained all the information and explanations we require for our audit; or
· 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
· certain disclosures of directors’ remuneration specified by law are not made; 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.
We have no exceptions to report arising from this responsibility.
Appointment
Following the recommendation of the Audit Committee, we were appointed by the members on 1 December 2020 to
audit the financial statements for the year ended 31 July 2021 and subsequent financial periods. The period of total
uninterrupted engagement is five years, covering the years ended 31 July 2021 to 31 July 2025.
Gillian Alexander (Senior Statutory Auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
Edinburgh
22 October 2025
Continued
Independent auditors’ report to the members of
Aberdeen Asia Focus PLC
(
formerly abrdn Asia Focus plc
)
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
69
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Year ended 31 July 2025 Year ended 31 July 2024
Revenue Capital Total Revenue Capital Total
Notes £’000 £’000 £’000 £’000 £’000 £’000
Gains on investments 10 – 83,832 83,832 – 39,271 39,271
Income 3 15,203 – 15,203 17,272 – 17,272
Exchange losses – (969) (969) – (1,052) (1,052)
Investment management fees 4 (819) (2,457) (3,276) (769) (2,307) (3,076)
Administrative expenses 5 (1,505) (77) (1,582) (1,306) – (1,306)
Net return before finance costs and taxation 12,879 80,329 93,208 15,197 35,912 51,109
Finance costs 6 (543) (1,630) (2,173) (501) (1,504) (2,005)
Net return before taxation 12,336 78,699 91,035 14,696 34,408 49,104
Taxation 7 (1,235) 135 (1,100) (1,407) (10,372) (11,779)
Net return after taxation 11,101 78,834 89,935 13,289 24,036 37,325
Return per share (pence): 9
Basic 7.44 52.82 60.26 8.59 15.53 24.12
Diluted 7.16 50.32 57.48 8.08 14.77 22.85
For the period applicable before the repayment of Convertible Unsecured Loan stock during the year ended 31 July 2025 the
conversion option for potential Ordinary shares within the Convertible Unsecured Loan Stock was dilutive to the revenue and capital
return per Ordinary share (2024 – dilutive to revenue and capital return).
The total column of this statement represents the profit and loss account of the Company. There is no other comprehensive income
and therefore the net return after taxation is also the total comprehensive income for the year.
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
70 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
As at As at
31 July 2025 31 July 2024
Notes £’000 £’000
Non-current assets
Investments at fair value through profit or loss 10 620,951 564,797
Current assets
Debtors and prepayments 11 5,728 3,808
Cash and cash equivalents 12,512 12,703
18,240 16,511
Creditors: amounts falling due within one year
Other creditors 12 (9,979) (2,483)
Bank Loan 12 (34,871) –
2.25% Convertible Unsecured Loan Stock 2025 12 – (36,368)
(44,850) (38,851)
Net current liabilities (26,610) (22,340)
Total assets less current liabilities 594,341 542,457
Non-current liabilities
Creditors: amounts falling due after more than one year
3.05% Senior Unsecured Loan Note 2035 13 (29,913) (29,906)
Deferred tax liability on Indian capital gains 13 (5,835) (10,291)
(35,748) (40,197)
Net assets 558,593 502,260
Capital and reserves
Called up share capital 14 10,965 10,436
Capital redemption reserve 2,062 2,062
Share premium account 90,962 60,495
Equity component of 2.25% Convertible Unsecured Loan Stock 2025 13 – 1,057
Capital reserve 15 435,081 409,798
Revenue reserve 19,523 18,412
Total shareholders’ funds 558,593 502,260
Net asset value per share (pence):
Basic 16 381.72 326.94
Diluted 16 381.72 324.26
The financial statements were approved by the Board of Directors and authorised for issue on 22 October 2025 and were signed on
behalf of the Board by:
Krishna Shanmuganathan
Chair
The accompanying notes are an integral part of the financial statements.
Statement of Financial Position
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For the year ended 31 July 2025
Capital Share Equity
Share redemption premium Component Capital Revenue
capital reserve account CULS 2025 reserve reserve Total
Note £’000 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 August 2024 10,436 2,062 60,495 1,057 409,798 18,412 502,260
Issue of Ordinary shares following
conversion of 2.25% CULS 2025
12 529 - 30,467 (1,057) - 1,057 30,996
Purchase of own shares to
treasury
14 - - - - (53,551) - (53,551)
Net return after taxation - - - - 78,834 11,101 89,935
Dividends paid 8 - - - - - (11,047) (11,047)
Balance at 31 July 2025 10,965 2,062 90,962 - 435,081 19,523 558,593
For the year ended 31 July 2024
Capital Share Equity
Share redemption premium Component Capital Revenue
capital reserve account CULS 2025 reserve reserve Total
Note £’000 £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 August 2023 10,435 2,062 60,441 1,057 393,238 18,551 485,784
Issue of Ordinary shares following
conversion of 2.25% CULS 2025
12 1 - 54 - - - 55
Purchase of own shares to
treasury
14 - - - - (7,476) - (7,476)
Net return after taxation - - - - 24,036 13,289 37,325
Dividends paid 8 - - - - - (13,428) (13,428)
Balance at 31 July 2024 10,436 2,062 60,495 1,057 409,798 18,412 502,260
The accompanying notes are an integral part of the financial statements.
Statement of Chan
g
es in Equity
72 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Year ended Year ended
31 July 2025 31 July 2024
Notes £’000 £’000
Cash flows from operating activities
Net return before finance costs and tax 93,208 51,109
Adjustments for:
Dividend income 3 (14,715) (16,802)
Interest income 3 (488) (470)
Dividends received 13,849 16,561
Interest received 463 459
Interest paid (2,060) (1,758)
Gains on investments 10 (83,832) (39,271)
Foreign exchange movements 969 1,052
(Increase)/decrease in prepayments (31) 3
(Increase) in other debtors – (2)
Increase in other creditors 21 31
Overseas withholding tax suffered 7 (658) (1,509)
Net cash inflow from operating activities 6,726 9,403
Cash flows from investing activities
Purchase of investments (277,566) (199,205)
Sales of investments 311,306 223,289
Capital gains tax on sales (4,321) (4,690)
Net cash inflow from investing activities 29,419 19,394
Cash flows from financing activities
Purchase of own shares for treasury (53,601) (7,421)
Redemption of 2.25% Convertible Unsecured Loan Stock 2025 (5,578) –
Drawdown of Loan 35,000 –
Loan arrangement fees (141) –
Equity dividends paid 8 (11,047) (13,428)
Net cash outflow from financing activities (35,367) (20,849)
Increase in cash and cash equivalents 778 7,948
Analysis of changes in cash and cash equivalents
Opening balance 12,703 5,807
Increase in cash and short term deposits 778 7,948
Foreign exchange movements (969) (1,052)
Closing balance 12,512 12,703
Represented by:
Money market funds 8,721 8,486
Cash and short term deposits 3,791 4,217
12,512 12,703
The accompanying notes are an integral part of the financial statements.
Statement of Cash Flows
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1. Principal activity
The Company is a closed-end investment company, registered in England & Wales No 03106339, with its Ordinary shares
being listed on the London Stock Exchange.
2. Accountin
g
p
olicies
(a) Basis of preparation. The financial statements have been prepared in accordance with Financial Reporting Standard 102,
the Companies Act 2006 and the AIC’s Statement of Recommended Practice ‘Financial Statements of Investment Trust
Companies and Venture Capital Trusts’ issued in July 2022. The financial statements are prepared in Sterling which is the
functional currency of the Company and rounded to the nearest £’000. They have also been prepared on a going
concern basis and on the assumption that approval as an investment trust will continue to be granted by HMRC.
Going concern. In accordance with the Financial Reporting Council’s guidance the Directors have undertaken a rigorous
review of the Company’s ability to continue as a going concern. The Company’s assets consist of equity shares in
companies listed on recognised stock exchanges and are considered by the Board to be realisable within a relatively
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.
The Directors are mindful of the Principal Risks and Uncertainties disclosed in the Strategic Report on pages 19 and 20
and they believe that the Company has adequate financial resources to continue its operational existence for a period
of 12 months from the date of approval of this Annual 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, including in potentially less favourable market conditions. The Directors have
also reviewed the revenue and ongoing expenses forecasts for the coming year and considered the Company’s
Statement of Financial Position as at 31 July 2025 which shows net current liabilities of £26.6 million at that date, and do
not consider this to be a concern due to the liquidity of the portfolio which would enable the Company to meet any short
term liabilities if required. Accordingly, the Directors believe that it is appropriate to continue to adopt the going concern
basis in preparing the financial statements.
The Company introduced a performance-linked conditional tender offer for up to 25% of the issued share capital in
2022. Shareholders will be offered the opportunity to realise a proportion of their holding for cash at a level close to NAV
less costs in the event the Company’s NAV total return underperforms the benchmark over the five year period
measured from 1 August 2021. The latest performance data covering the period since the introduction of the tender
offer to 31 July 2025 shows a NAV total return of 37.0% versus the benchmark which has returned 25.9%.
Significant accounting judgements, estimates and assumptions. The preparation of financial statements requires the use
of certain significant accounting judgements, estimates and assumptions which requires management to exercise its
judgement in the process of applying the accounting policies and are continually evaluated. 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.
(b) Valuation of investments. The Company has chosen to apply the recognition and measurement provisions of IAS 39
Financial Instruments: Recognition and Measurement and investments have been designated upon initial recognition at
fair value through profit or loss. Investments are recognised and de–recognised at trade date where a purchase or sale
is under a contract whose terms require delivery within the time frame established by the market concerned, and are
initially measured at fair value. Subsequent to initial recognition, investments are measured at fair value. For listed
investments, this is deemed to be bid market prices at close of business. Gains and losses arising from changes in fair
value and disposals are included as a capital item in the Statement of Comprehensive Income and are ultimately
recognised in the capital reserve.
Notes to the Financial Statements
For the year ended 31 July 2025
74 Aberdeen Asia Focus PLC
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(c) Borrowings. Bank loans are initially recognised at cost, being the fair value of the consideration received, net of any issue
expenses. Subsequently, they are measured at amortised cost using the effective interest method. Finance charges are
accounted for on an accruals basis using the effective interest rate method. The Company charges 25% of finance
charges to revenue and 75% to capital.
(d) Income. Dividends, including taxes deducted at source, are included in revenue by reference to the date on which the
investment is quoted ex-dividend. Special dividends are reviewed on a case-by-case basis and may be credited to
capital, if circumstances dictate. Dividends receivable on equity shares where no ex-dividend date is quoted are brought
into account when the Company’s right to receive payment is established. Fixed returns on non-equity shares are
recognised on a time apportioned basis so as to reflect the effective yield on shares. Other returns on non-equity shares
are recognised when the right to return is established. Where the Company has elected to receive its dividends in the
form of additional shares rather than cash, the amount of the cash dividend is recognised as income. Any excess in the
value of the shares received over the amount of the cash dividend is recognised in capital reserves. Interest receivable
on bank balances is dealt with on an accruals basis.
(e) Expenses. Expenses are accounted for on an accruals basis. Expenses are charged through the revenue column of the
Statement of Comprehensive Income except as follows:
– expenses directly relating to the acquisition or disposal of an investment, which are charged to the capital column of
the Statement of Comprehensive Income and are separately identified and disclosed in note 10; and
– the Company charges 25% of investment management fees and finance costs to the revenue column and 75% to the
capital column of the Statement of Comprehensive Income, in accordance with the Board’s expected long term return
in the form of revenue and capital gains respectively from the investment portfolio of the Company.
(f) Taxation. The tax expense represents the sum of tax currently payable and deferred tax. Any tax payable is based on
the taxable profit for the year. Taxable profit differs from net profit as reported in the Statement of Comprehensive
Income because it excludes items of income or expense that are taxable or deductible in other years and it further
excludes items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates
that were applicable at the Statement of Financial Position date.
Deferred 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 tax in the
future or right to pay less tax in the future have occurred at the Statement of Financial Position date. This is subject to
deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from
which the future reversal of the underlying timing differences can be deducted. Timing differences are differences
arising between the Company’s taxable profits and its results as stated in the financial statements which are capable of
reversal in one or more subsequent periods. Deferred tax is measured on a non-discounted basis at the tax rates that
are expected to apply in the periods in which timing differences are expected to reverse, based on tax rates and laws
enacted or substantively enacted at the Statement of Financial Position date.
The tax effect of different items of income/gain and expenditure/loss is allocated between capital and revenue within
the Statement of Comprehensive Income on the same basis as the particular item to which it relates using the
Company’s effective rate of tax for the year, based on the marginal basis.
Gains and losses on sale of investments purchased and sold in India after 1 April 2017 are liable to capital gains tax in
India. At each year end date, a provision for capital gains tax is calculated based upon the Company’s realised and
unrealised gains and losses. There are two rates of tax: short-term and long-term. The short-term rate of tax is
applicable to investments held for less than 12 months and the long-term rate of tax is applicable to investments held for
more than twelve months. The provision is recognised in the Statement of Financial Position and the year-on-year
movement in the provision is recognised in the Statement of Comprehensive Income.
Notes to the Financial Statements
Continued
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(g) Foreign currency. Assets and liabilities in foreign currencies are translated at the rates of exchange ruling on the
Statement of Financial Position date. Transactions involving foreign currencies are converted at the rate ruling on the
date of the transaction. Gains and losses on dividends receivable are recognised in the Statement of Comprehensive
Income and are reflected in the revenue reserve. Gains and losses on the realisation of investments in foreign currencies
and unrealised gains and losses on investments in foreign currencies are recognised in the Statement of
Comprehensive Income and are then transferred to the capital reserve.
(h) Convertible Unsecured Loan Stock. Convertible Unsecured Loan Stock (“CULS”) issued by the Company were regarded
as a compound instrument, comprising of a liability component and an equity component. At the date of issue, the fair
value of the liability component of the 2.25% CULS 2025 was estimated by assuming that an equivalent non-convertible
obligation of the Company would have an effective interest rate of 3.063%. The fair value of the equity component,
representing the option to convert liability into equity, was derived from the difference between the issue proceeds of
the CULS and the fair value assigned to the liability. The liability component was subsequently measured at amortised
cost using the effective interest rate and the equity component remained unchanged.
Direct expenses associated with the CULS issue were allocated to the liability and equity components in proportion to
the split of the proceeds of the issue. Expenses allocated to the liability component were amortised over the life of the
instrument using the effective interest rate.
On conversion of CULS, equity was issued and the liability component was derecognised. The original equity component
recognised at inception remained in equity. No gain or loss was recognised on conversion.
On maturity of the remaining CULS on 31 May 2025, equity was issued and the liability component was derecognised.
The original equity component recognised at inception was removed from equity. All gains and losses were recognised
on maturity.
(i) Cash and cash equivalents. Cash comprises cash in hand and short term deposits. Cash equivalents includes bank
overdrafts repayable on demand and short term, highly liquid investments, that are readily convertible to known
amounts of cash and that are subject to an insignificant risk of change in value.
(j) Nature and purpose of reserves
Capital redemption reserve. The capital redemption reserve arose when Ordinary shares were redeemed and
cancelled, at which point an amount equal to the par value of the Ordinary share capital was transferred from the share
capital account to the capital redemption reserve. This is not a distributable reserve.
Share premium account. The balance classified as share premium includes the premium above nominal value from the
proceeds on issue of any equity share capital comprising Ordinary shares of 5p (2024 – 5p). This is not a distributable
reserve.
Capital reserve. This reserve reflects any gains or losses on investments realised in the period along with any movement
in the fair value of investments held that have been recognised in the Statement of Comprehensive Income. These
include gains and losses from foreign currency exchange differences arising on monetary assets and liabilities except
for dividend income receivable. Share buybacks to be held in treasury, which is considered to be a distribution to
shareholders, is also deducted from this reserve. The realised gains part of this reserve is also distributable for the
purpose of funding dividends.
Revenue reserve. This reserve reflects all income and costs which are recognised in the revenue column of the
Statement of Comprehensive Income. The revenue reserve is distributable by way of dividend. The amount of the
revenue reserve as at 31 July 2025 may not be available at the time of any future distribution due to movements
between 31 July 2025 and the date of distribution.
76 Aberdeen Asia Focus PLC
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(k) Treasury shares. When the Company purchases the Company’s equity share capital as treasury shares, the amount of
the consideration paid, which includes directly attributable costs is recognised as a deduction from equity. When these
shares are sold or reissued subsequently, the amount received is recognised as an increase in equity, and the resulting
surplus or deficit on the transaction is transferred to or from the capital reserve.
(l) Dividends payable. Final dividends are recognised in the financial statements in the period in which Shareholders
approve them.
(m) Segmental reporting. The Directors are of the opinion that the Company is engaged in a single segment of business
activity, being investment business. Consequently, no business segmental analysis is provided however an analysis of the
geographic exposure of the Company’s investments is provided on page 33.
3. Income
2025 2024
£’000 £’000
Income from investments
Overseas dividends 14,012 16,007
UK dividend income 702 795
Stock dividends 1 -
14,715 16,802
Other income
Deposit interest 69 150
Interest from money market funds 419 320
488 470
Total income 15,203 17,272
4. Investment management fees
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Investment management fees 819 2,457 3,276 769 2,307 3,076
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 Asia Limited (“abrdn Asia”).
Notes to the Financial Statements
Continued
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The management fee is payable monthly in arrears, on a tiered basis, exclusive of VAT where applicable, based on market
capitalisation at an annual rate of 0.85% for the first £250 million, 0.6% for the next £500 million and 0.5% thereafter. Market
capitalisation is defined as the Company’s closing Ordinary share price quoted on the London Stock Exchange multiplied by
the number of Ordinary shares in issue (excluding those held in Treasury), as determined on the last business day of the
calendar month to which the remuneration relates. The balance due to the Manager at the year end was £595,000 (2024 -
£534,000) which represents two months’ fees (2024 - two months).
The management agreement may be terminated by either the Company or the Manager on the expiry of three months’
written notice. On termination, the Manager would be entitled to receive fees which would otherwise have been due to that
date.
5. Administrative expenses
2025 2024
£’000 £’000
Administration fees
A
130 119
Directors’ fees
B
209 173
Promotional activities
C
238 210
Auditors’ remuneration
D
– fees payable to the auditors for the audit of the annual financial statements 60 52
Custodian charges 393 364
Depositary fees 51 49
Registrar fees 79 43
Legal and professional fees 173 57
Other expenses 172 239
1,505 1,306
A
The Company has an agreement with aFML for the provision of administration services. The administration fee is payable quarterly in advance and is adjusted
annually to reflect the movement in the Retail Prices Index. The balance due to aFML at the year end was £32,000 (2024 – £60,000). The agreement is terminable on six
months’ notice.
B
No pension contributions were made in respect of any of the Directors.
C
Under the management agreement, the Company has also appointed aFML to provide promotional activities to the Company by way of its participation in the
Aberdeen Investment Trust Share Plan and ISA. aFML has delegated this role to Aberdeen Group plc. The total fee paid and payable under the agreement in relation to
promotional activities was £238,000 (2024 – £210,000). There was a £82,000 (2024 – £173,000) balance due to Aberdeen Group plc at the year end.
D
There are no non-audit fees charged.
78 Aberdeen Asia Focus PLC
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6. Finance costs
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Interest on Bank Overdraft 4 13 17 5 15 20
Interest on Bank Loans 87 262 349 - - -
Interest on 3.05% Senior Unsecured Loan Note 2035 231 692 923 231 692 923
Interest on 2.25% CULS 2025 169 508 677 203 611 814
Notional interest on 2.25% CULS 2025 32 96 128 39 115 154
Amortisation of 2.25% CULS 2025 issue expenses 20 59 79 23 71 94
543 1,630 2,173 501 1,504 2,005
Finance costs have been charged 25% to revenue and 75% to capital.
7. Taxation
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
(a) Analysis of charge for the year
Indian capital gains tax charge on sales - 4,321 4,321 - 4,690 4,690
Overseas taxation 1,235 - 1,235 1,407 - 1,407
Total current tax charge for the year 1,235 4,321 5,556 1,407 4,690 6,097
Deferred tax charge on Indian capital gains - (4,456) (4,456) - 5,682 5,682
Total tax charge for the year 1,235 (135) 1,100 1,407 10,372 11,779
The Company has recognised a deferred tax liability of £5,835,000 (2024 - £10,291,000) on capital gains which may arise
if Indian investments are sold. The Company has not provided for UK deferred tax on any realised and unrealised gains or
losses of investments as it is exempt from UK tax on these items due to its status as an investment trust company.
At 31 July 2025 the Company had surplus management expenses and loan relationship deficits of £88,979,000 (2024 -
£82,534,000) in respect of which a deferred tax asset has not been recognised. This is due to the Company having
sufficient excess management expenses available to cover the potential liability and the Company is not expected to
generate taxable income in the future in excess of deductible expenses. The Finance Act 2021 received Royal Assent on
10 June 2021 and the rate of Corporation Tax of 25% effective from 1 April 2023 has been used to calculate the potential
deferred tax asset of £22,245,000 (2024 - £20,634,000).
Notes to the Financial Statements
Continued
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(b) Factors affecting the tax charge for the year. The tax assessed for the year is lower than the current standard rate of
corporation tax in the UK for a large company of 25% (2024 - lower). The differences are explained below:
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Return before taxation 12,336 78,699 91,035 14,696 34,408 49,104
Return multiplied by the standard tax rate of
corporation tax of 25% (2024 - 25%)
3,084 19,675 22,759 3,674 8,602 12,276
Effects of:
Gains on investments not taxable - (20,958) (20,958) - (9,818) (9,818)
Exchange losses - 242 242 - 263 263
Overseas tax 1,235 - 1,235 1,407 - 1,407
Movement in deferred tax liability on Indian
capital gains
- (4,456) (4,456) - 5,682 5,682
Indian capital gains tax charged on sales - 4,321 4,321 - 4,690 4,690
UK dividend income (176) - (176) (199) - (199)
Non-taxable dividend income (3,503) - (3,503) (4,002) - (4,002)
Expenses not deductible for tax purposes 5 19 24 9 - 9
Movement in unutilised management expenses 712 614 1,326 634 577 1,211
Movement in unutilised loan relationship deficits (122) 408 286 (116) 376 260
Total tax charge for the year 1,235 (135) 1,100 1,407 10,372 11,779
8. Dividends
2025 2024
£’000 £’000
Fourth interim dividend for 2024 – 1.62p (2023 – 1.61p) 2,488 2,515
Special dividend for 2024 – 1.00p (2023 – 2.25p) 1,511 3,498
First interim dividend for 2025 – 1.6p (2024 – 1.6p) 2,417 2,488
Second interim dividend for 2025 – 1.6p (2024 – 1.6p) 2,395 2,466
Third interim dividend for 2025 – 1.6p (2024 – 1.6p) 2,236 2,461
11,047 13,428
Dividends declared and paid subsequent to the year end are not included as a liability in the financial statements.
80 Aberdeen Asia Focus PLC
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We set out below 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. The revenue available for distribution
by way of dividend for the current year is £11,101,000 (2024- £13,289,000).
2025 2024
£’000 £’000
First interim dividend for 2025 – 1.6p (2024 – 1.6p) 2,417 2,488
Second interim dividend for 2025 – 1.6p (2024 – 1.6p) 2,395 2,466
Third interim dividend for 2025 – 1.6p (2024 – 1.6p) 2,236 2,461
Fourth interim dividend for 2025 – 1.63p (2024 – 1.62p) 2,372 2,488
Proposed special dividend for 2025 – nil (2024 -1.00p) – 1,511
9,420 11,414
9. Return per share
2025 2024
Revenue Capital Total Revenue Capital Total
Basic
Net return after taxation (£’000) 11,101 78,834 89,935 13,289 24,036 37,325
Weighted average number of shares in issue
A
149,238,494 154,769,839
Return per share (p) 7.44 52.82 60.26 8.59 15.53 24.12
2025 2024
Diluted Revenue Capital Total Revenue Capital Total
Net return after taxation (£’000) 11,302 79,438 90,740 13,511 24,704 38,215
Weighted average number of shares in issue
AB
157,863,004 167,264,923
Return per share (p) 7.16 50.32 57.48 8.08 14.77 22.85
A
Calculated excluding shares held in treasury.
B
The calculation of the diluted total, revenue and capital returns per Ordinary share is carried out in accordance with IAS 33, “Earnings per Share”. For the purpose of
calculating total, revenue and capital returns per Ordinary share, the number of Ordinary shares used is the weighted average number used in the basic calculation
plus the number of Ordinary shares deemed to be issued for no consideration on exercise of all 2.25% Convertible Unsecured Loan Stock 2025 (“CULS”) pro-rated for
the period in which the CULS were active. The calculations indicate that the exercise of CULS would result in an increase in the weighted average number of Ordinary
shares of 8,624,510 (2024 - 12,495,085) to 157,863,004 (2024 - 167,264,923) Ordinary shares.
Notes to the Financial Statements
Continued
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For the year ended 31 July 2025 the assumed conversion for potential Ordinary shares was dilutive to the revenue and the
capital return per Ordinary share (2024 - dilutive to the revenue return and the capital return). Where dilution occurs, the net
returns are adjusted for interest charges and issue expenses relating to the CULS (2025 - £805,000; 2024 - £890,000). Total
earnings for the period are tested for dilution. Once dilution has been determined individual revenue and capital earnings are
adjusted.
10. Investments at fair value through profit or loss
2025 2024
£’000 £’000
Opening book cost 407,225 397,237
Opening investment holding gains 157,572 152,435
Opening fair value 564,797 549,672
Analysis of transactions made during the year
Purchases at cost 285,202 200,360
Sales proceeds received (312,880) (224,506)
Gains on investments 83,832 39,271
Closing fair value 620,951 564,797
Closing book cost 451,432 407,225
Closing investment gains 169,519 157,572
Closing fair value 620,951 564,797
2025 2024
£’000 £’000
Investments listed on an overseas investment exchange 606,704 550,046
Investments listed on the UK investment exchange 14,247 14,751
620,951 564,797
The Company received £312,880,000 (2024 - £224,506,000) from investments sold in the period. The book cost of these
investments when they were purchased was £240,995,000 (2024 - £190,372,000). 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.
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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 gains/(losses) on investments in the
Statement of Comprehensive Income. The total costs were as follows:
2025 2024
£’000 £’000
Purchases 290 257
Sales 625 446
915 703
The above transaction costs are calculated in line with the AIC SORP. The transaction costs in the Company’s Key Information
Document are calculated on a different basis and in line with the PRIIPs regulations.
11. Debtors: amounts falling due within one year
2025 2024
£’000 £’000
Amounts due from brokers for sales 4,134 2,560
Other debtors 477 897
Prepayments and accrued income 1,117 351
5,728 3,808
None of the above amounts is past their due date or impaired (2024 – same).
12. Creditors: amounts falling due within one year
2025 2024
(a) Other creditors £’000 £’000
Amounts due to brokers for purchases 8,791 1,155
Amounts due for the purchase of own shares to treasury – 56
Other creditors 1,188 1,272
9,979 2,483
2025 2024
(b) Bank Loan £’000 £’000
Bank Loan 35,000 –
Unamortised Bank Loan issue expenses (129) –
34,871 –
Notes to the Financial Statements
Continued
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On 30 May 2025 the Company entered into a two year, £50 million multi-currency revolving bank credit facility with the
Bank of Nova Scotia, London Branch. The agreement of this facility incurred costs of £140,000 which will be amortised
over the life of the agreement.
At 31 July 2025, the Company had drawn down £35 million at a rate of 5.41% with a maturity date of 28 August 2025.
2025 2024
Number of Liability Equity Number of Liability Equity
units component component units component component
(c) 2.25% CULS 2025 £’000 £’000 £’000 £’000 £’000 £’000
Balance at beginning of year 36,574 36,368 1,057 36,629 36,175 1,057
Conversion of 2.25% CULS 2025 (30,996) (30,996) – (55) (55) –
Redemption of 2.25% CULS 2025 (5,578) (5,578) (1,057) – – –
Notional interest on CULS transferred to
revenue reserve
– 128 – – 154 –
Amortisation and issue expenses – 78 – – 94 –
Balance at end of year – – – 36,574 36,368 1,057
As at 31 July 2025, there were £nil (2024 – £36,574,720) nominal amount of 2.25% CULS 2025 in issue. The loan stock was
previously converted at the election of holders into Ordinary shares during the months of May and November each year
throughout their life, commencing 30 November 2018 to 31 May 2025 at a rate of 1 Ordinary share for every 293.0p
(2024 – 293.0p) nominal of CULS. Interest was payable on the CULS on 31 May and 30 November each year,
commencing on 30 November 2018.
The CULS were constituted as an unsecured subordinated obligation of the Company by the Trust Deed between the
Company and the Trustee, the Law Debenture Trust Corporation p.l.c., dated 23 May 2018. The Trust Deed detailed the
2025 CULS holders’ rights and the Company’s obligations to the CULS holders and the Trustee oversees the operation of
the Trust Deed. In the event of a winding-up of the Company the rights and claims of the Trustee and CULS holders
would be subordinate to the claims of all creditors in respect of the Company’s secured and unsecured borrowings,
under the terms of the Trust Deed.
On 13 December 2024, the Company received elections from CULS holders to convert £46,704 nominal amount of
CULS into 15,937 Ordinary shares. On or before 31 May 2025, being the final conversion date for CULS holders to elect to
convert to Ordinary shares, the Company converted £30,949,618 (£19,749,216 by holders’ request and £11,200,402 by
request from the Trustee) nominal amount of CULS into 10,562,933 Ordinary shares (in the year ended 31 July 2024,
£54,939 nominal amount of CULS was converted into 18,740 Ordinary shares). Additionally, on 31 May 2025, £5,578,398
nominal amount of CULS was redeemed by the Trustee following requests from CULS holders who did not wish to
exercise their conversion right.
The fair value of the 2025 CULS at 31 July 2024 was £35,441,000.
84 Aberdeen Asia Focus PLC
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13. Non-current liabilities
2025 2024
(a) Loan Note £’000 £’000
3.05% Senior Unsecured Loan Note 2035 30,000 30,000
Unamortised Loan Note issue expenses (87) (94)
29,913 29,906
On 1 December 2020 the Company issued £30,000,000 of a 15 year loan note at a fixed rate of 3.05%. Interest is
payable in half yearly instalments in June and December and the Loan Note is due to be redeemed at par on 1
December 2035. The issue costs of £118,000 will be amortised over the life of the loan note. There is also a shelf facility of
£35,000,000, which expires on 1 December 2025 and has not been utilised. The shelf facility is uncommitted and subject
to credit committee approval in advance of any drawing. The Company has complied with the Note Purchase
Agreement that the ratio of total borrowings to adjusted net assets will not exceed 0.20 to 1.00, that the ratio of total
borrowings to adjusted net liquid assets will not exceed 0.60 to 1.00, that net tangible assets will not be less than
£225,000,000 and that the minimum number of listed assets will not be less than 40.
The fair value of the Senior Unsecured Loan Note as at 31 July 2025 was £26,829,000 (2024 – £27,112,000), the value
being based on a comparable quoted debt security.
2025 2024
£’000 £’000
(b) Deferred tax liability on Indian capital gains (see note 7) 5,835 10,291
14. Called up share capital
2025 2024
£’000 £’000
Allotted, called-up and fully paid
Ordinary shares of 5p 7,317 7,681
Treasury shares 3,648 2,755
10,965 10,436
Ordinary Treasury Total
shares shares shares
Number Number Number
At 31 July 2024 153,626,718 55,094,590 208,721,308
Conversion of CULS 10,578,870 – 10,578,870
Buyback of own shares (17,870,000) 17,870,000 –
At 31 July 2025 146,335,588 72,964,590 219,300,178
Notes to the Financial Statements
Continued
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During the year 17,870,000 Ordinary shares of 5p were purchased (2024 – 2,850,000 Ordinary shares of 5p were purchased)
by the Company at a total cost of £53,551,000 (2024 – total cost of £7,476,000), all of which were held in treasury. At the year
end 72,964,590 (2024 – 55,094,590) shares were held in treasury, which represents 33.27% (2024 – 26.40%) of the Company’s
total issued share capital at 31 July 2025. During the year there were a further 10,578,870 (2024 – 18,740) Ordinary shares
issued as a result of CULS conversions.
Since the year end the Company bought back for treasury a further 3,245,000 Ordinary shares for a total consideration of
£11,580,000.
15. Reserves
2025 2024
£’000 £’000
Capital reserve
At 31 July 2024 409,798 393,238
Movement in investment holdings fair value 11,947 5,137
Gains on realisation of investments at fair value 71,885 34,134
Purchase of own shares to treasury (53,551) (7,476)
Movement in deferred liability on Indian capital gains 4,456 (5,682)
Capital gains tax on sales (4,321) (4,690)
Foreign exchange movement (969) (1,052)
Capital expenses (4,164) (3,811)
At 31 July 2025 435,081 409,798
The capital reserve includes investment holding gains amounting to £169,519,000 (2024 - £157,572,000) as disclosed in note
10. The above split in capital reserve is shown in accordance with provisions of the Statement of Recommended Practice
‘Financial Statements Of Investment Trust Companies and Venture Capital Trusts’.
16. Net asset value per share
2025 2024
Basic
Net assets attributable £558,593,000 £502,260,000
Number of shares in issue
A
146,335,588 153,626,718
Net asset value per share 381.72p 326.94p
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2025 2024
Diluted
Net assets attributable £558,593,000 £538,628,000
Number of shares in issue
A
146,335,588 166,109,558
Net asset value per share
B
381.72p 324.26p
A
Calculated excluding shares held in treasury.
B
The 2024 diluted net asset value per share has been calculated on the assumption that £36,574,720 2.25% Convertible Unsecured Loan Stock 2025 (“CULS”) was
converted at 293.0p per share, giving a total of 166,109,558 shares. Where dilution occurs, the net assets are adjusted for items relating to the CULS.
Net asset value per share – debt converted. In accordance with the Company’s understanding of the current methodology
adopted by the AIC, convertible financial instruments are deemed to be “in the money” if the cum income net asset value
(“NAV”) exceeds the conversion price of 293.0p (2024 – 293.0p) per share. In such circumstances a net asset value is
produced and disclosed assuming the convertible debt is fully converted. At 31 July 2024 the cum income NAV was 326.94p
and thus the CULS were ‘in the money’.
17. Analysis of changes in net debt
At At
31 July Currency Cash Non-cash 31 July
2024 differences flows movements 2025
£’000 £’000 £’000 £’000 £’000
Cash and short term deposits 12,703 (969) 778 - 12,512
Debt due within one year (36,368) - (29,281) 30,778 (34,871)
Debt due after more than one year (40,197) - - 4,449 (35,748)
(63,862) (969) (28,503) 35,227 (58,107)
At At
31 July Currency Cash Non-cash 31 July
2023 differences flows movements 2024
£’000 £’000 £’000 £’000 £’000
Cash and short term deposits 5,807 (1,052) 7,948 - 12,703
Debt due within one year - - - (36,368) (36,368)
Debt due after more than one year (70,682) - - 30,485 (40,197)
(64,875) (1,052) 7,948 (5,883) (63,862)
A statement reconciling the movement in net funds to the net cash flow has not been presented as there are no differences
from the above analysis.
Notes to the Financial Statements
Continued
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18. Related party transactions and transactions with the Manager
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 page 55. The balance of fees due to Directors at
the year end was £nil (2024 – £nil).
The Company’s Investment Manager, abrdn Asia, is a wholly-owned subsidiary of Aberdeen Group plc, which has been
delegated, under an agreement with aFML, to provide management services to the Company, the terms of which are
outlined in notes 4 and 5 along with details of transactions during the year and balances outstanding at the year end.
19. Financial instruments
Risk management. The Company’s investment activities expose it to various types of financial risk associated with the financial
instruments and markets in which it invests. The Company’s financial instruments comprise equities 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 Board has delegated the risk management function to aFML under the terms of its management agreement with aFML
(further details of which are included under note 4 and in the Directors’ Report) however, it remains responsible for the risk and
control framework and operation of third parties. The Board regularly reviews and agrees policies for managing each of the
key financial risks identified with the Manager. The types of risk and the Manager’s approach to the management of each type
of risk, are summarised below. Such approach has been applied throughout the year and has not changed since the previous
accounting period. The numerical disclosures exclude short-term debtors and creditors.
Risk management framework. The directors of aFML collectively assume responsibility for aFML’s obligations under the AIFMD
including reviewing investment performance and monitoring the Company’s risk profile during the year.
aFML is a fully integrated member of the Aberdeen Group (“the Group”), which provides a variety of services and support to
aFML in the conduct of its business activities, including in the oversight of the risk management framework for the Company.
The AIFM has delegated the day to day administration of the investment policy to abrdn Asia, which is responsible for ensuring
that the Company is managed within the terms of its investment guidelines and the limits set out in its pre-investment
disclosures to investors (details of which can be found on the Company’s website). The AIFM has retained responsibility for
monitoring and oversight of investment performance, product risk and regulatory and operational risk for the Company.
The Group’s Internal Audit Department is independent of the Risk Division and reports directly to the Group CEO and to the
Audit Committee of the Group’s Board of Directors. The Internal Audit Department is responsible for providing an independent
assessment of the Group’s control environment.
The Manager conducts its risk oversight function through the operation of the Group’s risk management processes and
systems which are embedded within the Group’s operations. The Group’s Risk Division supports management in the
identification and mitigation of risks and provides independent monitoring of the business. The Division includes Compliance,
Business Risk, Market Risk, Risk Management and Legal. The team is headed up by the Group’s Chief Risk Officer, who reports
to the CEO of the Group. The Risk Division achieves its objective through embedding the Risk Management Framework
throughout the organisation using the Group’s operational risk management system (“SHIELD”).
The Group’s corporate governance structure is supported by several committees to assist the board of directors, its
subsidiaries and the Company to fulfil their roles and responsibilities. The Group’s Risk Division is represented on all committees,
with the exception of those committees that deal with investment recommendations. The specific goals and guidelines on the
functioning of those committees are described in the committees’ terms of reference.
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Risk management. The main risks the Company faces from these financial instruments are (i) market risk (comprising interest
rate, foreign currency and other price risk), (ii) liquidity risk and (iii) credit risk.
Market risk. The fair value of or future cash flows from 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;
– valuation of debt securities in the portfolio.
Management of the risk. 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. When drawn down, interest rates are fixed on
borrowings.
Interest rate risk profile. The interest rate risk profile of the Company’s financial assets and liabilities, excluding equity holdings
which are all non-interest bearing, at the reporting date was as follows:
Weighted average Weighted
period for which average Fixed Floating
rate is fixed interest rate rate rate
At 31 July 2025 Years % £’000 £’000
Assets
Sterling - - - 9,761
Vietnam Dong - - - 1,658
Chinese Renminbi - - - 959
New Taiwan Dollar - - - 124
Indian Rupee - - - 10
- - - 12,512
Liabilities
Bank loan 0.08 5.4 - 34,871
3.05% Senior Unsecured Loan Note 2035 10.34 3.1 29,913 -
- - 29,913 34,871
Notes to the Financial Statements
Continued
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Weighted average Weighted
period for which average Fixed Floating
rate is fixed interest rate rate rate
At 31 July 2024 Years % £’000 £’000
Assets
Sterling - - - 11,295
Chinese Renminbi - - - 985
Vietnam Dong - - - 247
New Taiwan Dollar 155
Indian Rupee - - - 20
US Dollar - - - 1
- - - 12,703
Liabilities
2.25% Convertible Unsecured Loan Stock 2025 0.83 2.3 36,368 -
3.05% Senior Unsecured Loan Note 2035 11.34 3.1 29,906 -
- - 66,274 -
The weighted average interest rate is based on the current yield of each asset or liability, weighted by its market value.
The floating rate assets consist of cash deposits on call earning interest at prevailing market rates.
The Company’s equity portfolio and short term debtors and creditors have been excluded from the above tables.
Interest rate sensitivity. Movements in interest rates would not significantly affect net assets attributable to the Company’s
shareholders and total return.
Foreign currency risk. Most of the Company’s investment portfolio is invested in overseas securities and the Statement of
Financial Position, therefore, can be significantly affected by movements in foreign exchange rates.
Management of the risk. It is not the Company’s policy to hedge this risk on a continuing basis but the Company may, from time
to time, match specific overseas investment with foreign currency borrowings.
The revenue account is subject to currency fluctuations arising on dividends receivable in foreign currencies and, indirectly,
due to the impact of foreign exchange rates upon the profits of investee companies. It is not the Company’s policy to hedge
this currency risk but the Board keeps under review the currency returns in both capital and income.
90 Aberdeen Asia Focus PLC
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Foreign currency risk exposure by currency of denomination:
31 July 2025 31 July 2024
Net monetary Total Net monetary Total
Overseas assets/ currency Overseas assets/ currency
investments (liabilities) exposure Investments (liabilities) exposure
£’000 £’000 £’000 £’000 £’000 £’000
Chinese Renminbi 28,449 959 29,408 23,653 985 24,638
Hong Kong Dollar 66,610 – 66,610 45,564 – 45,564
Indian Rupee 156,251 10 156,261 159,012 20 159,032
Indonesian Rupiah 30,313 – 30,313 53,552 – 53,552
Korean Won 82,661 – 82,661 53,366 – 53,366
Malaysian Ringgit 10,704 – 10,704 18,784 – 18,784
New Taiwan Dollar 112,470 124 112,594 81,434 155 81,589
New Zealand Dollar – – – 6,727 – 6,727
Philippine Peso 28,666 – 28,666 19,012 – 19,012
Singapore Dollar 17,828 – 17,828 2,290 – 2,290
Sri Lankan Rupee 12,573 – 12,573 13,801 – 13,801
Thailand Baht 12,104 – 12,104 22,347 – 22,347
US Dollar 17,158 – 17,158 10,073 1 10,074
Vietnamese Dong 30,917 1,658 32,575 40,431 247 40,678
606,704 2,751 609,455 550,046 1,408 551,454
Sterling 14,247 (20,152) (5,905) 14,751 (54,979) (40,228)
Total 620,951 (17,401) 603,550 564,797 (53,571) 511,226
Foreign currency sensitivity. The Company’s foreign currency financial instruments are in the form of equity investments, fixed
interest investments, cash and bank loans. The sensitivity of the former has been included within other price risk sensitivity
analysis so as to show the overall level of exposure. Due consideration is paid to foreign currency risk throughout the
investment process.
Other price risk. Other price risks (ie changes in market prices other than those arising from interest rate or currency risk) may
affect the value of the quoted investments.
Investment in Far East equities or those of companies that derive significant revenue or profit from the Far East involves a
greater degree of risk than that usually associated with investment in the securities in major securities markets. The securities
that the Company owns may be considered speculative because of this higher degree of risk. It is the Board’s policy to hold an
appropriate spread of investments in the portfolio in order to reduce the risk arising from factors specific to a particular
country or sector. Both the allocation of assets and the stock selection process, as detailed on pages 100 and 101, act to
reduce market risk. The Manager actively monitors market prices throughout the year and reports to the Board, which meets
regularly in order to review investment strategy. The investments held by the Company are listed on various stock exchanges
worldwide.
Notes to the Financial Statements
Continued
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Other price risk sensitivity. If market prices at the reporting date had been 20% (2024 – 20%) higher or lower while all other
variables remained constant, the return attributable to Ordinary shareholders for the year ended 31 July 2025 would have
increased/(decreased) by £124,190,000 (2024 – increased/(decreased) by £112,959,000) and equity reserves would have
increased/(decreased) by the same amount.
Liquidity risk. This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities.
Management of the risk. The Board imposes borrowing limits to ensure gearing levels are appropriate to market conditions
and reviews these on a regular basis. Gearing comprises both senior unsecured loan notes, bank loans and convertible
unsecured loan stock. The Board has imposed a maximum gearing level, measured on the most stringent basis of calculation
after netting off cash equivalents, of 25%. Details of borrowings at the 31 July 2025 are shown in notes 12 & 13.
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. Details of the Board’s policy on gearing are shown in the investment
policy section on page 15.
Liquidity risk exposure. At 31 July 2025 the Company had borrowings of £29,913,000 (2024 – £29,906,000) in the form of the
3.05% Senior Unsecured Loan Note 2035 and £34,871,000 (2024 – nil) in the form of a short term bank loan. The 2.25%
Convertible Unsecured Loan Stock 2025 was redeemed during the year (2024 – £36,368,000).
At 31 July 2025 the amortised cost of the Company’s 3.05% Senior Unsecured Loan Note 2035 was £29,913,000 (2024 –
£29,906,000). The maximum exposure at 31 July 2025 was £29,913,000 (2024 – £29,906,000) and the minimum exposure at 31
July 2025 was £29,906,000 (2024 – £29,898,000).
The maturity profile of the Company’s existing borrowings is set out below.
Due
Due between
Expected within 3 months Due after
cashflows 3 months and 1 year 1 year
31 July 2025 £’000 £’000 £’000 £’000
Bank Loan 35,145 35,145 – –
3.05% Senior Unsecured Loan Note 2035 39,608 – 915 38,693
74,753 35,145 915 38,693
Due
Due between
Expected within 3 months Due after
cashflows 3 months and 1 year 1 year
31 July 2024 £’000 £’000 £’000 £’000
2.25% Convertible Unsecured Loan Stock 2025 37,053 – 37,053 –
3.05% Senior Unsecured Loan Note 2035 40,523 – 915 39,608
77,576 – 37,968 39,608
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Credit risk. This is the risk of failure of the counterparty to a transaction to discharge its obligations under that transaction that
could result in the Company suffering a loss.
Management of the risk. Investment transactions are carried out with a large number of brokers, whose credit-standing is
reviewed periodically by the Investment Manager, and limits are set on the amount that may be due from any one broker.
Settlement of investment transactions are also done on a delivery versus payment basis;
– the risk of counterparty exposure due to failed trades causing a loss to the Company is mitigated by the review of failed
trade reports on a monthly basis. In addition, the third party administrator carries out a stock reconciliation to Custodian
records on a monthly basis to ensure discrepancies are picked up on a timely basis. The Manager’s compliance department
carries out periodic reviews of the Custodian’s operations and reports its finding to the Manager’s risk management
committee. This review will also include checks on the maintenance and security of investments held; and
– cash is held only with reputable banks with high quality external credit ratings.
It is the Manager’s policy to trade only with A- and above (Long Term rated) and A-1/P-1 (Short Term rated) counterparties.
None of the Company’s financial assets is secured by collateral or other credit enhancements.
Credit risk exposure. In summary, compared to the amounts in the Statement of Financial Position, the maximum exposure to
credit risk at 31 July was as follows:
2025 2024
Statement Statement
of Financial Maximum of Financial Maximum
Position exposure Position exposure
Current assets £’000 £’000 £’000 £’000
Debtors and prepayments 5,728 5,728 3,808 3,808
Cash and short term deposits 12,512 12,512 12,703 12,703
18,240 18,240 16,511 16,511
None of the Company’s financial assets is past due or impaired.
Fair values of financial assets and financial liabilities. The fair value of the loan note has been calculated at £26,829,000 as at 31
July 2025 (2024 – £27,112,000) compared to a value at amortised cost in the financial statements of £29,913,000 (2024 –
£29,906,000) (note 13). The fair value of the loan note is determined by aggregating the expected future cash flows for that
loan discounted at a rate comprising the borrower’s margin plus an average of market rates applicable to loans of a similar
period of time and currency. Investments held at fair value through profit or loss are valued at their quoted bid prices which
equate to their fair values. The Directors are of the opinion that the other financial assets and liabilities, excluding CULS which
are held at amortised cost, are stated at fair value in the Statement of Financial Position and considered that this
approximates to the carrying amount.
Notes to the Financial Statements
Continued
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20. 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.
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 (ie developed using market data) for the
asset or liability, either directly or indirectly.
Level 3: inputs are unobservable (ie for which market data is unavailable) for the asset or liability.
The financial assets measured at fair value in the Statement of Financial Position are grouped into the fair value hierarchy at
31 July 2025 as follows:
Level 1 Level 2 Level 3 Total
As at 31 July 2025 Note £’000 £’000 £’000 £’000
Financial assets and liabilities at fair value through profit or loss
Quoted equities a) 620,890 – – 620,890
Quoted warrants b) – 61 – 61
Net fair value 620,890 61 – 620,951
Level 1 Level 2 Level 3 Total
As at 31 July 2024 Note £’000 £’000 £’000 £’000
Financial assets and liabilities at fair value through profit or loss
Quoted equities a) 562,138 – – 562,138
Quoted preference shares b) – – 2,438 2,438
Quoted warrants b) – 221 – 221
Net fair value 562,138 221 2,438 564,797
a) Quoted equities. The fair value of the Company’s investments in quoted equities has been determined by reference to their
quoted bid prices at the reporting date. Quoted equities included in Fair Value Level 1 are actively traded on recognised stock
exchanges.
94 Aberdeen Asia Focus PLC
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b) Quoted preference shares and quoted warrants. The fair value of the Company’s investments in quoted preference shares
and quoted warrants has been determined by reference to their quoted bid prices at the reporting date. Investments
categorised as Level 2 are not considered to trade as actively as Level 1 assets.
Year ended Year ended
31 July 2025 31 July 2024
Level 3 Financial assets at fair value through profit or loss £’000 £’000
Opening fair value 2,438 12,910
Transfer to level 1 – (9,958)
Total gains or losses included in losses on investments in the
Statement of Comprehensive Income:
– assets disposed of during the year (2,438) –
– assets held at the end of the year – (514)
Closing balance – 2,438
Level 2 assets comprise First Sponsor Group warrants of £61,000 have been classified as level 2 to reflect their illiquidity. Their
fair value has been based on a trade executed in August 2024.
21. Capital management policies and procedures
The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to
shareholders through the optimisation of the debt (comprising Bank Loans and Loan Note) and equity balance.
The Company’s capital comprises the following:
2025 2024
£’000 £’000
Equity
Equity share capital 10,965 10,436
Reserves 547,628 491,824
Liabilities
3.05% Senior Unsecured Loan Note 2035 29,913 29,906
Bank loan 34,871 -
2.25% Convertible Unsecured Loan Stock 2025 - 36,368
623,377 568,534
The Board’s policy is to utilise gearing when the Manager believes it appropriate to do so, up to a maximum of 25% geared at
the time of drawdown. Gearing for this purpose is defined as the excess amount above shareholders’ funds of total assets
(including net current assets/liabilities) less cash/cash equivalents, expressed as a percentage of the shareholders’ funds. If
the amount so calculated is negative, this is shown as a ‘net cash’ position.
Notes to the Financial Statements
Continued
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
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Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
2025 2024
£’000 £’000
Investments at fair value through profit or loss 620,951 564,797
Current assets excluding cash and cash equivalents 1,594 1,248
Current liabilities (1,188) (1,328)
Deferred tax liability on Indian capital gains (5,835) (10,291)
615,522 554,426
Shareholders’ funds 558,593 502,260
Gearing (%) 10.2 10.4
The Board monitors and reviews the broad structure of the Company’s capital on an ongoing basis. The review includes:
- the planned level of gearing which takes account of the Manager’s views on the market;
- the level of equity shares in issue;
- 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.
The Company does not have any externally imposed capital requirements.
22. Subsequent events
With effect from 14 October 2025, the Company has changed its name to “Aberdeen Asia Focus PLC”.
96 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Alternative Performance Measures (“APMs”) 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-end investment companies.
Discount to net asset value
p
er Ordinar
y
share
The difference between the share price and the net asset value per Ordinary share expressed as a percentage of the net asset value
per Ordinary share. 2025 has been presented on a diluted basis as the Convertible Unsecured Loan Stock (“CULS”) were “in the money”
(2024 – same).
As at As at
31 July 2025 31 July 2024
NAV per Ordinary share (p) a 381.72 324.26
Share price (p) b 343.00 278.00
Discount (a-b)/a 10.1% 14.3%
Dividend cover
Revenue return per Ordinary share divided by dividends declared for the year per Ordinary share expressed as a ratio.
Year ended Year ended
31 July 2025 31 July 2024
Revenue return per Ordinary share (p) a 7.44 8.59
Dividends declared (p) b 6.43 6.42
Dividend cover a/b 1.16 1.34
Net
g
earin
g
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 net amounts due from and to brokers at the year end as well as
cash and short term deposits.
Year ended Year ended
31 July 2025 31 July 2024
Borrowings (£’000) a 64,784 66,274
Cash and short term deposits (£’000) b 12,512 12,703
Amounts due to brokers (£’000) c 8,791 1,155
Amounts due from brokers (£’000) d 4,134 2,560
Shareholders’ funds (£’000) e 558,593 502,260
Net gearing (a-b+c-d)/e 10.2% 10.4%
Alternative Performance Measures
(
Unaudited
)
Aberdeen Asia Focus PLC
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On
g
oin
g
char
g
es
The ongoing charges ratio has been calculated in accordance with guidance issued by the AIC as the total of investment
management fees and administrative expenses and expressed as a percentage of the average published daily net asset values with
debt at fair value throughout the year.
2025 2024
Investment management fees (£’000) 3,276 3,076
Administrative expenses (£’000) 1,582 1,306
Less: non-recurring charges
A
(£’000) (164) (32)
Ongoing charges (£’000) 4,694 4,350
Average net assets (£’000) 518,389 488,772
Ongoing charges ratio 0.91% 0.89%
A
Professional fees comprising corporate and legal fees considered unlikely to recur.
The ongoing charges ratio provided in the Company’s Key Information Document is calculated in line with the PRIIPs regulations, which
includes finance costs and transaction charges.
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. NAV and share price total returns are monitored against open-
ended and closed-ended competitors, and the Reference Index, respectively.
Share
Year ended 31 July 2025 NAV Price
Opening at 1 August 2024 a 324.26p 278.00p
Closing at 31 July 2025 b 381.72p 343.00p
Price movements c=(b/a)-1 17.7% 23.4%
Dividend reinvestment
A
d 2.6% 3.2%
Total return c+d +20.3% +26.6%
Share
Year ended 31 July 2024 NAV Price
Opening at 1 August 2023 a 308.93p 264.00p
Closing at 31 July 2024 b 324.26p 278.00p
Price movements c=(b/a)-1 5.0% 5.3%
Dividend reinvestment
A
d 2.9% 3.5%
Total return c+d +7.9% +8.8%
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.
98 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Corporate
Information
The Company’s Investment
Manager is abrdn Asia
Limited, a wholly owned
subsidiary of Aberdeen
Group Plc which had assets
under management and
administration of £518
billion as at 30 June 2025
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
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abrdn Asia Limited
abrdn Fund Managers Limited (“aFML”), authorised and
regulated by the Financial Conduct Authority, has been
appointed as alternative investment fund manager to the
Company. aFML has in turn delegated portfolio
management to abrdn Asia Limited (“abrdn Asia”).
The Investment Team Senior Managers
Gabriel Sacks
Investment Director, Equities Asia
Chartered Financial Analyst, MA in Land Economy from
Cambridge University. Joined the Aberdeen Group in 2008
as part of the London-based Global Emerging Markets
Equities team and transferred to Asian Equities in 2018.
Aberdeen Group
Worldwide, the Manager had a combined £518 billion (as
at 30 June 2025) in assets under management and
administration for a range of clients, including individuals
and institutions, through mutual and segregated funds.
Aberdeen Group has its headquarters in Edinburgh with
principal offices in London, Singapore, Philadelphia,
Bangkok, Edinburgh, Hong Kong, Luxembourg, Sao Paulo,
Stockholm, Sydney, Taipei and Tokyo
Xin-Yao Ng
Senior Investment Director, Equities Asia
CFA Charterholder, BSc in Business from Nanyang
Technological University. Xin-Yao is based in Singapore
and joined the Aberdeen Group in 2018 from Allard
Partners
CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.
n
Information about the
Investment Mana
g
er
100 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Investment Approach and Style
As active equity investors, the Investment Manager believes that deep fundamental research, responsible stewardship
and a disciplined investment process is the best approach to meet our client’s investment needs – now and in the future.
Its approach to equity investing is underpinned by three core investment beliefs.
Fundamental research delivers insights that can be used to exploit market inefficiencies. In the Investment Manager’s
view, company fundamentals ultimately drive share prices but are often valued inefficiently in the shorter term. The
Investment Manager believes that fundamental research is the key to delivering insights that allow us to exploit these
inefficiencies and identify the best investment opportunities for client portfolios.
The Investment Manager places constructive engagement and environmental, social and governance (ESG)
considerations at the heart of company research, ensuring it is a responsible steward of its clients’ assets. The
Investment Manager believes this approach can help to identify and avoid risks
Disciplined, active investment can deliver superior outcomes for our clients. The Investment Manager aims to build
high conviction portfolios where its stock-specific insights drive performance, giving its clients access to the best
investment ideas.
Investment Process
The Investment Process
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
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The investment process has five stages:
1. Idea Generation: Comprehensive coverage of the
broad global universe with a team of analysts
generating investment ideas from company meetings,
combined with corroborating evidence from
competitors, suppliers and customers. We will also use
quant tools to refine coverage.
2. Research The market implicitly embeds a lot of
information in a stock price, and we take time to
understand and interpret this as we build our own
views about the outlook of companies and the way the
market is likely to value them in the future. Our in-depth
analysis of a company’s financials and business
prospects helps us formulate a forward-looking view of
earnings and cash flow trajectories, and we apply a
variety of forward looking multiples in comparing
valuations with competitors and across industries and
markets. To fully leverage the benefits of our
considerable research resource, our equity teams use
a common investment language and research
framework that structures how we express our thinking
on companies. This facilitates the effective and
unambiguous articulation of research insights. External
research is also utilised to gain insight on the consensus
view and supplement proprietary research. ESG
considerations are integrated throughout the research
process with each stock receiving an ESG score
alongside an overall quality score.
3. Stock and sector review:
Buy ideas are peer reviewed
by the Developed Markets equity team, evaluating the
level of conviction and the materiality, corroboration
and correlation of those investment opportunities.
4. Portfolio Construction: Portfolio construction is bottom-
up driven, focused on investing in companies that pass
our rigorous quality assessment, are attractively
valued, and have appealing income characteristics.
The largest component of the fund’s active risk will be
stock-specific with appropriate diversification across a
broad range of countries and sectors. We sell a stock if
it has come to reflect all the upside we expect and now
prices in our view of the fundamentals. We will also sell
if our investment thesis has played out or is proved
wrong, or if we find more interesting opportunities
elsewhere. Continuous monitoring of company
fundamentals and valuation is critical and we use a
variety of proprietary and external quantitative tools to
support portfolio construction. Quality is defined by
reference to factors including management, business
model, balance sheet and ESG considerations.
The Investment Manager believes that good
investment decision making requires clarity of
responsibility for those decisions. Every stock in the
portfolio has a named analyst responsible for its
coverage, and every portfolio has a named fund
manager responsible for its management. The
individual portfolio managers make those decisions
supported and challenged by the team, but
accountability for the final decision is clear.
5. Engagement: The Investment Manager is committed to
regular, ongoing engagement with the companies in
which it invests, to help to maintain and enhance all
areas of their performance including their ESG
standards into the future. As part of the investment
process, the Investment Manager undertakes a
significant number of company meetings each year on
behalf of the Company. These meetings provide an
opportunity to discuss various relevant issues including
board composition, remuneration, audit, climate
change, labour issues, human rights, bribery and
corruption. Companies are strongly encouraged to set
clear targets or key performance indicators on all
material risks, including those that are ESG related. This
engagement is not limited to a company’s
management team. It can include many other
stakeholders such as non-government agencies,
industry and regulatory bodies, as well as activists and
the company’s customers and clients.
102 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
ESG considerations
Although the Company does not have sustainability
characteristics as part of its investment objective or policy,
ESG analysis is integrated into each part of the Investment
Manager’s investment process outlined above and is
integral to each investment decision.
At the investment stage, ESG factors and analysis can help
to frame where best to invest by considering material risks
and opportunities alongside other financial metrics. Due
diligence can ascertain whether such risks are being
adequately managed, and whether the market has
understood and priced them accordingly.
Aberdeen Group has a well-established central
sustainability team which supports investment teams
across different asset classes with its thematic work on
areas such as shareholder engagement, remuneration
issues, and climate change, as well as taking responsibility
for voting policies. Aberdeen Group believes in active
engagement with its investments and potential
investments: from providing initial guidance on suitable
metrics through to holding the investee company to
account for delivering on its promises. In practice, it is
through applying this sustainability filter that the
Investment Manager would be comfortable investing in,
for example, sectors such as mining and oil and gas,
subject to the belief, based on such engagement and
investee companies delivering on their commitments, that
a company is taking the necessary action to address the
energy transition.
The investment process also leverages a wealth of
knowledge, insight and expertise across asset classes and
regions within Aberdeen. This allows the Investment
Manager to take advantage of equity colleagues across
Asia who are meeting companies and conducting
research and sharing their insights using one common
global research platform. This is invaluable when investing
in the Asian equity market. Corporate level insights are
shared with the credit team which enriches the equity
view through an understanding of the full capital structure
of the businesses invested in. Members of the Investment
Manager’s multi-asset and economics teams regularly
share macro level insights with the Developing Markets
equity team.
Risk Management
The Investment Manager utilises a number of quantitative
risk tools to ensure it is fully aware of and understand all
the risks prevalent in portfolios it manages. These risk
management systems monitor and analyse active risk, the
composition of portfolio positions, as well as contribution
to risk and marginal contribution to risk of the portfolio’s
holdings. The systems break down the risk within the
portfolio by industry and country factors and highlight the
stocks with the highest marginal contribution to risk and
the largest diversification benefit. Sector, thematic and
geographical positions are a residual of stock selection
decisions but are monitored to ensure excessive risk is not
taken in any one area. The Investment Manager also
makes use of pre-trade analytics to assess the impact of
any trades on the portfolio risk metrics.
In addition, portfolios are formally reviewed on a regular
basis with the Investment Manager’s Global Head of
Equities, the Portfolio Managers, the Investment Manager’s
Investment Governance & Oversight Team (IGO) and
members of the Manager’s Investment Risk Team. This
third-party oversight both monitors portfolio risk and also
oversees operational risk to ensure client objectives
are met.
Responsible Investment and En
g
a
g
ement
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Environmental, Social and Governance (“ESG”) Engagement
This section of the Annual Report aims to present more information on the Investment Manager’s approach to
integrating ESG considerations into its investment decision-making and the implications for the Company.
The Board is very conscious of the risks emanating from increased ESG challenges. Whilst the management of the
Company’s investments is not undertaken with any specific instructions to exclude certain asset types or classes, the
Investment Manager considers ESG criteria as part of the research process for each asset class and as part of the
investment process. ESG investment is about active engagement that can help us determine how the assets may
perform over the longer term.
Currently, the Company’s portfolio is ESG BBB rated by MSCI, as is the Benchmark. The Company’s portfolio Economic
Emission Intensity is only 23.8% of its benchmark.
BBB 76.2% 46 20.4% 100%
BBB rated by
MSCI ESG
Lower carbon intensity
than the benchmark
Engagements with
portfolio companies
during the year
Average Return On
Equity of portfolio
companies (versus
benchmark average
10.5%)
of researched companies
include integration of ESG
company analysis
The importance of ESG research in
small-cap investing
When it comes to analysing and assessing the ESG of
potential investments, the Investment Manager has an
ESG team and screening process and takes ESG into
consideration as part of its decision making, even though it
is not integral to the Company’s objective. The process
focuses upon careful and rigorous due diligence, rather
than a reliance on publicly disclosed information. Three
factors can be considered as follows:
· Environmental factors relate to how a company
conducts itself with regard to environmental
conservation and sustainability. Types of environmental
risks and opportunities include a company’s energy
consumption, waste disposal, land development and
carbon footprint, among others.
· Social factors pertain to a company’s relationship with
its employees and vendors. Risks and opportunities can
include (but are not limited to) a company’s initiatives on
employee health and well-being, and how supplier
relationships align with corporate values.
· Corporate governance factors can include the
corporate decision-making structure, independence of
board members, the treatment of minority
shareholders, executive compensation and political
contributions, among others.
Many of the companies in which the Company invests are
founder-run. The Investment Manager believes that
investing alongside talented, hard-working and ambitious
founders provides a powerful opportunity for long-term
performance. However, the Investment Manager is also
aware that smaller, founder-led companies tend to have
ESG disclosures that are sometimes less sophisticated
than their larger peers, and so can perform less well than
their large cap peers when it comes to third-party ESG
ratings. Such companies often don’t have experience with
disclosure requirements, or the resources necessary, to
disclose everything that is increasingly expected of them.
This is particularly true in Asia.
104 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Furthermore, many of these third party ratings agencies
tend to score founder-led companies poorly, concerned
about the influence of a single person. Whilst this can
indeed be a risk, the Investment Manager is of the view
that backing a talented, hard-working and ambitious
founder, whilst also ensuring that a strong and
experienced board is in place to provide checks and
balances, is the right course of action. So whilst many see
this founder-led structure as a risk, the Investment
Manager sees an opportunity. Of course, the focus for the
Investment Manager is on choosing the
right
individual,
who will grow the undertaking equitably and sustainably,
and who will treat all shareholders fairly.
When it comes to small-cap investing, much of the box-
ticking approach to ESG undertaken in the public realm is
neither accurate nor helpful when forming a view of the
relative merits of an investment. It is for this reason that the
Investment Manager focusses on an active investment
approach, coupled with deep due diligence and on-the-
ground research. Once invested, the Investment Manager
plays a role in engaging with management to improve
disclosure and support positive change
Importance of Engagement
Engagement is an important part of our investment
process: the Investment Manager sees engagement not
only as a right but as an obligation of investors, as owners
of companies. The Investment Manager engages actively
and regularly with companies in which the Company
invests or may become an investor and believes that
informed and constructive engagement helps to foster
better companies, enhancing the value of the
Company’s investments.
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 sustainable long-term
returns, either positively or negatively, including both risks
and opportunities. The Investment Manager’s focus is on
the factors which it believes to have the greatest potential
to enhance or undermine the investment case.
Sometimes the Investment Manager is seeking more
information, exchanging views on specific issues, and
encouraging better disclosure; and at other times,
encouraging change (including either corporate strategy,
capital allocation, or climate change strategy).
Engagements cover a range of issues, including but not
limited to board composition, remuneration, audit, climate
change, labour issues, human rights, bribery
and corruption.
Engagement is not limited to a company’s management
team. It can include many other stakeholders such as
non-government agencies, industry and regulatory
bodies, as well as activists and the company’s customers
and clients. During the period under review the breadth of
issues covered in ESG specific company engagements for
the Company covered Climate Change (including air
quality and energy management), Environment (including
waste and waste management, and supply chain
management), Labour Management (including health
and safety), Human Risk & Stakeholders, Corporate
Behaviour (including Practices and Processes) and
Corporate Governance.
Responsible Investment and En
g
a
g
ement
Continued
Aberdeen Asia Focus PLC
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Engagement Activity
The Investment Manager regularly engages with
companies in which the Company invests. The below
provides a breakdown of the 46 engagements during the
year which have included responsible investment themes.
This does not include positions the Investment Manager
has sold out of or is considering investing in.
ESG Category Manager
Engagements*
Climate 0
Environment 2
Labour Management, Diversity and
Inclusion
15
Human Rights & Stakeholders 3
Corporate Behaviour 6
Corporate Governance 20
* a single meeting can have multiple topics
Voting Activity
The Investment Manager draws on expertise across desks
and throughout the firm to vote consistently in line with the
Aberdeen Group voting policy. Time period referenced is
12 months to 31 July 2025:
Our Voting Activity
Voting Summary Total
How many meetings did you vote at? 96
How many resolutions did you vote on for which you
were eligible?
542
Of the resolutions on which you voted, how many
did you vote with management?
87.1%
Of the resolutions on which you voted, how many
did you vote against management?
11.7%
Of the resolutions on which you voted, how many
did you abstain from voting?
41.2%
While Aberdeen Group will typically vote in line with an
investee board’s voting recommendation, it will vote
against resolutions that are not consistent with the
Company’s best interests. For example, Aberdeen Group
may vote against resolutions which are not aligned with its
policies or which conflict with local governance guidelines,
such as the Investment Association in the UK. Although the
Investment Manager seeks to vote either ‘in favour’ or
‘against’ a resolution, it does make use of an abstain vote
where this is considered appropriate. The Investment
Manager aims to vote at all eligible meetings unless share
blocking (which can be a feature of voting in non-UK
jurisdictions) makes this unviable
106 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Keeping You Informed
For internet users, detailed data on the Company,
including price, performance information and a monthly
fact sheet is available from the Company’s website
(asia-focus.co.uk) and the TrustNet website
(trustnet.com).
You can also register for regular email updates by visiting
asia-focus.co.uk or by activating the QR Code below using
the camera on your smart phone:
Aberdeen Group Social Media Accounts
Aberdeen Investment Trusts
@aberdeenTrusts
Investor Warning
The Board has been made aware by Aberdeen Group
that some investors have received telephone calls from
people purporting to work for the Manager, or third
parties, who have offered to buy their investment trust
shares. These may be scams which attempt to gain
personal information with which to commit identity fraud
or could be ‘boiler room’ scams where a payment from an
investor is required to release the supposed payment for
their shares. These callers do not work for Aberdeen
Group and any third party making such offers has no link
with Aberdeen Group. Aberdeen Group never makes
these types of offers and does not ‘cold-call’ investors in
this way. If investors have any doubt over the veracity of a
caller, they should not offer any personal information and
end the call.
Shareholder Enquiries
In the event of queries regarding their holdings of shares,
lost certificates dividend payments, registered details, etc
shareholders holding their shares in the Company directly
should contact the registrars, Equiniti Limited, Aspect
House, Spencer Road, Lancing, West Sussex, BN99 6DA.
Tel: 0371 384 2416 Lines open 8:30am to 5:30pm (UK
time), Monday to Friday, (excluding public holidays in
England and Wales). Calls may be recorded and
monitored randomly for security and training purposes.
Changes of address must be notified to the registrars
in writing.
Any general enquiries about the Company should be
directed to the Company Secretary, Aberdeen Asia Focus
PLC, 1 George Street, Edinburgh EH2 2LL or by email
CEF.CoSec@aberdeenplc.com.
Suitable for Retail/NMPI Status
The Company’s securities are intended for investors
primarily in the UK (including retail investors), professional-
advised private clients and institutional investors who are
looking to benefit from the growth prospects of Asian
smaller companies by investment in a relatively risk averse
investment trust and who understand and are willing to
accept the risks of exposure to equities. Investors should
consider consulting a financial adviser who specialises in
advising on the acquisition of shares and other securities
before acquiring shares. Investors should be capable of
evaluating the risks and merits of such an investment and
should have sufficient resources to bear any loss that
may result.
The Company currently conducts its affairs so that its
securities can be recommended by a financial adviser to
ordinary retail investors in accordance with the Financial
Conduct Authority’s (FCA) rules in relation to non-
mainstream pooled investments (NMPIs) and intends to
continue to do so for the foreseeable future. The
Company’s shares are excluded from the FCA’s
restrictions which apply to non-mainstream investment
products because they are shares in an investment trust.
Key Information Document (“KID”)
The KID relating to the Company and published by the
Manager can be found in the ‘Literature Library’ section of
the Company’s website: asia-focus.co.uk.
Investor Information
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
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How to invest in Aberdeen Asia Focus PLC
and other Aberdeen-managed investment
trusts
A range of leading investment platforms and share
dealing services let you buy and sell Aberdeen-managed
investment trusts including Aberdeen Asia Focus PLC.
Many of these platforms operate on an ‘execution-only’
basis. This means they can carry out your instruction to
buy or sell a particular investment trust. But they may not
be able to advise on suitable investments for you. If you
require advice, please speak to a qualified financial
adviser (see below).
A note about the Aberdeen Investment Trust Savings Plans
(the ‘Plans’)
The Aberdeen Investment Trusts ISA, Share Plan and
Investment Plan for Children (the “Plans”) closed in
December 2023. All investors with a holding or cash
balance in the Plans at that date transferred to interactive
investor (“ii”), an Aberdeen Group company. ii
communicated with Plan holders in late November 2023
to set up account security to ensure that investors would
continue to access their holdings via ii following the closure
of the Plans.
Former Aberdeen Plan holders should contact ii for any
ongoing support with their ii accounts on 0345 646 1366, or
+44 113 346 2309 if calling from outside the UK. Lines are
open 8.00am to 5.00pm Monday to Friday.
Alternatively, Plan holders can access the website at
ii.co.uk/abrdn-welcome.
Platform providers
Platforms featuring Aberdeen Group managed
investment trusts include:
www.ii.co.uk/investment-trusts
(an Aberdeen business)
www.ajbell.co.uk/markets/i
nvestment-trusts
www.barclays.co.uk/smart-invest
www.bestinvest.co.uk
www.charles-stanley-direct.co.uk
www.fidelity.co.uk
www.halifax.co.uk/investing
www.hl.co.uk/shares/investment-
trusts
www.wealthtime.com/advisers/
www.transact-online.co.uk
www.abrdn.com/adviser/wrap
(an Aberdeen business)
The companies above are shown for illustrative purposes
only. Other platform providers are available. The links
above direct you to external websites operated by each
platform provider. Aberdeen Group is not responsible for
the content and information on these third-party sites.
Flexibility
Many investment platform providers will allow you to buy
and hold Aberdeen Investment Trust shares within an
Individual Savings Account (ISA), Junior ISA or Self Invested
Personal Pension (SIPP), all of which have potential tax
advantages. Most will also allow you to invest on both a
lump sum and regular savings basis.
108 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Costs and service
It is important to choose the right platform for your needs,
so take time to research what each platform offers before
you make your decision, as well as considering charges.
When it comes to charges, some platforms have flat fee
structures while others levy percentage-based charges.
Typically, you will also pay a fee every time you buy and
sell shares, so you need to bear in mind these transaction
costs if you are trading frequently. There may also be
additional charges for ISA and SIPP investments.
Can I exercise my voting rights if I hold my shares through an
investment platform?
Yes, you should be able to exercise your right to vote by
contacting your platform provider. Procedures differ, but
some platforms will automatically alert you when new
statutory documents are available and then allow you
to vote online. Others will require you to contact them to
vote. Your chosen platform provider will provide further
guidance. The Association of Investment Companies has
provided information on how to vote investment company
shares held on some of the major platforms. This
information can be found at:
www.theaic.co.uk/how-to-vote-your-shares.
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.
Independent 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:
Tel: 0800 111 6768 or at https://register.fca.org.uk/ or
email: register@fca.org.uk
Getting advice
Aberdeen Group recommends that you seek financial
advice prior to making an investment decision. If you do
not currently have a financial adviser, details of authorised
financial advisers in your area can be found at pimfa.co.uk
or unbiased.co.uk. You will pay a fee for advisory services.
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, 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 above has been Issued by abrdn
Investments Limited, which is authorised and regulated by
the Financial Conduct Authority in the United Kingdom.
abrdn Investments Limited is entered on the Financial
Services Register under registration number 121891
Investor Information
Continued
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
109
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Aberdeen Group 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 asia-focus.co.uk. There have been no material changes to the disclosures contained within the PIDD since
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 are
included in the Strategic Report.
· None of the Company’s assets are subject to special arrangements arising from their illiquid nature.
· The Strategic Report, note 19 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.
· All authorised Alternative Investment Fund Managers are required to comply with the AIFMD Remuneration Code. In
accordance with the Remuneration Code, the Company’s AIFM remuneration policy is available from the Company
Secretaries, abrdn Holdings Limited on request (see contact details on page 121) and the numerical remuneration in
the 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 2.50:1 2.00:1
Actual level at 31 July 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 is no right of re-use of collateral or any 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 above has been Issued by abrdn Investments Limited, which is authorised and regulated by the
Financial Conduct Authority in the United Kingdom. abrdn Investments Limited is entered on the Financial Services
Register under registration number 121891
Alternative Investment Fund
Managers Directive Disclosures
(
Unaudited
)
110 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
General
The AGM will be held at 12:30 p.m. on 8 December 2025 in
London at which the usual formal business will be proposed.
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
111
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Notice is hereby given that the thirtieth Annual General Meeting of Aberdeen Asia Focus PLC (
formerly abrdn Asia Focus
plc
) will be held at 18 Bishops Square, London, E1 6EG, at 12:30 p.m. on 8 December 2025 for the following purposes:
To consider and if thought fit, pass the following Resolutions of which Resolutions 1 to 11 will be proposed as Ordinary
Resolutions and Resolutions 12 to 14 as Special Resolutions:
Ordinary Business
1. To receive and adopt the Directors’ Report and financial statements for the year ended 31 July 2025, together with
the auditors’ report thereon.
2. To approve the Directors’ Remuneration Report for the year ended 31 July 2025 (other than the Directors’
Remuneration Policy).
3. To approve the Company’s Dividend Policy to pay four interim dividends per year.
4. To re-elect Ms C Black as a Director.
5. To re-elect Mr K Shanmuganathan as a Director.
6. To re-elect Mr L Cooper as a Director.
7. To re-elect Mr A Finn as a Director.
8. To re-elect Ms L Macdonald as a Director.
9. To re-elect Ms D Curling as a Director.
10. To re-appoint PricewaterhouseCoopers LLP as auditors and to authorise the Directors to determine their
remuneration.
Special Business
11. THAT in substitution for all existing powers the Directors of the Company be generally and unconditionally
authorised for the purposes of Section 551 of the Companies Act 2006 (the “Act”), to allot shares in the Company,
and to grant rights (“Relevant Rights”) to subscribe for, or to convert any security into, shares in the Company:
(a) up to an aggregate nominal amount of £2,386,854; and
(b) up to a further aggregate nominal amount of £2,386,854 in connection with an offer made by means of a
negotiable document to (a) all holders of Ordinary shares of 5p each in the capital of the Company (“Ordinary
shares”) in proportion (as nearly as may be) to the respective numbers of such Ordinary shares held by them and
(b) to holders of other equity securities required by the rights of those securities (but subject to such exclusions, limits
or restrictions or other arrangements as the Directors of the Company may consider necessary or appropriate to
deal with treasury shares, fractional entitlements, record dates or legal, regulatory or practical problems in or under
the laws of any territory, or the requirements of any regulatory body or any stock exchange in any territory or
otherwise howsoever); such authorisation to expire at the conclusion of the next Annual General Meeting of the
Company to be held in 2026 unless previously renewed, revoked or varied by the Company in general meeting, save
that the Company may at any time before the expiry of this authorisation make an offer or enter into an agreement
which would or might require shares to be allotted or relevant rights to be granted after the expiry of this
authorisation and the Directors of the Company may allot shares or grant relevant rights in pursuance of any such
offer or agreement as if the authorisation conferred hereby had not expired.
12. THAT subject to the passing of Resolution 11 above and in substitution for all existing powers the Directors be
empowered pursuant to Sections 570 and 573 of the Companies Act 2006 (the “Act”) to allot equity securities
(within the meaning of Section 560 (1), (2) and (3) of the Act) either pursuant to the authorisation under Section 551
of the Act as conferred by Resolution 11 above or by way of a sale of treasury shares, in each case for cash as if
Section 561(1) of the Act did not apply to such allotment, provided that this power shall be limited to:
Notice of Annual General Meetin
g
112 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
i. the allotment of equity securities (otherwise than pursuant to sub-paragraph (b) below) up to an aggregate
nominal amount of £716,127 which are, or are to be, wholly paid up in cash, at a price representing a premium to
the net asset value per share at allotment, as determined by the Directors, and do not exceed up to 10% of the
issued share capital (as at the date of the Annual General Meeting convened by this notice); and
ii. the allotment of equity securities in connection with an offer to (a) all holders of Ordinary shares of 5p each in
the capital of the Company in proportion (as nearly as may be) to the respective numbers of Ordinary shares
held by them and (b) to holders of other equity securities as required by the rights of those securities (but
subject in either case to such exclusions limits or restrictions or other arrangements as the Directors may
consider necessary or appropriate to deal with treasury shares, fractional entitlements, record dates, legal,
regulatory or practical problems in or under the laws of, or requirements of, any regulatory body or any stock
exchange in any territory or otherwise howsoever) at a price representing a premium to the net asset value per
share at allotment, as determined by the Directors; and
such power shall expire at the conclusion of the next Annual General Meeting of the Company to be held in 2026,
but so that this power shall enable the Company to make offers or agreements before such expiry which would or
might require equity securities to be allotted after such expiry and the Directors may do so as if such expiry had
not occurred.
13. THAT, the Company be generally and 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 5p each in the capital of the Company (“Ordinary shares”), and to cancel or hold in treasury such shares
provided that:
i. the maximum number of Ordinary shares hereby authorised to be purchased is 14.99% of the Ordinary shares
in issue as at the date of the passing of this Resolution 13;
ii. the minimum price which may be paid for an Ordinary share is 5p;
iii. the maximum price (exclusive of expenses) which may be paid for an Ordinary share shall not be more than the
higher of (i) an amount equal to 5% above the average of the middle market quotations for an Ordinary share
taken from the London Stock Exchange Daily Official List for the five business days immediately preceding the
date on which the Ordinary share is contracted to be purchased; and (ii) the higher of the price of the last
independent trade and the current highest independent bid on the trading venue where the purchase is
carried out;
iv. any purchase of shares will be made in the market for cash at prices below the prevailing net asset value per
share (as determined by the Directors);
v. the authority hereby conferred shall expire at the conclusion of the Annual General Meeting of the Company to
be held in 2026 unless such authority is renewed, revoked or varied prior to such time by the Company in
general meeting; and
vi. the Company may make a contract to purchase Ordinary shares under the authority hereby conferred prior to
the expiry of such authority which will or may be executed wholly or partly after the expiration of such authority
and may make a purchase of Ordinary shares pursuant to any such contract.
14. THAT a general meeting other than an Annual General Meeting may be called on not less than 14 days’ notice.
By order of the Board
abrdn Holdings Limited
Company Secretary
22 October 2025
Registered Office
280 Bishopsgate, London EC2M 4AG
Notice of Annual General Meetin
g
Continued
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
113
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Notes
i. In accordance with Section 311A of the Companies Act 2006, the contents of this Notice of Meeting, details of the total number of
shares in respect of which members are entitled to exercise voting rights at the AGM and, if applicable, any members’ statements,
members’ resolutions or members’ matters of business received by the Company after the date of this notice will be available on
the Company’s website
asia-focus.co.uk.
ii. As a member, you are entitled to appoint a proxy or proxies to exercise all or any of your rights to attend, speak and vote at the
Meeting. A proxy need not be a member of the Company. You may appoint more than one proxy provided each proxy is
appointed to exercise rights attached to different shares. You may not appoint more than one proxy to exercise the rights
attached to any one share. A form of proxy is enclosed.
iii. To be valid, any form of proxy or other instrument of proxy and any power of attorney or other authority, if any, under which they
are signed or a notarially certified copy of that power of attorney or authority should be sent to the Company’s registrars so as to
arrive not less than 48 hours (excluding working days) before the time fixed for the meeting. The return of a completed form of
proxy or other instrument of proxy will not prevent you attending the Meeting and voting in person if you wish to do so.
iv. The right to vote at the meeting is determined by reference to the Company’s Register of Members as at 6.30 p.m. on 4 December
2025 or, if this meeting is adjourned, at 6.30 p.m. on the day two business days prior to the adjourned meeting. Changes to the
entries on that Register after that time shall be disregarded in determining the rights of any member to attend and vote at the
meeting.
v. As a member you have the right to put questions at the meeting relating to the business being dealt with at the meeting.
vi. 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. 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.
vii. 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 & Ireland Limited’s (“EUI”) specifications and must
contain the information required for such instructions, as described in the CREST Manual which can be viewed at euroclear.com.
The message must be transmitted so as to be received by the issuer’s agent (ID RA19) by the latest time(s) for receipt of proxy
appointments specified in the notice of 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.
viii. 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.
ix. 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.
x. You may also submit your proxy votes via the internet. It is possible for you to submit your proxy votes online by going to Equiniti's
Shareview website, www.shareview.co.uk, and logging in to your Shareview Portfolio. Once you have logged in, simply click 'View'
on the 'My Investments' page and then click on the link to vote and follow the on-screen instructions. If you have not yet registered
for a Shareview Portfolio, go to www.shareview.co.uk and enter the requested information. It is important that you register for a
Shareview Portfolio with enough time to complete the registration and authentication processes.
114 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
xi. Institutional investors 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 no later than 12:30 p.m. on 4 December 2025 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.
xii. Any 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 them and the member by whom they were
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, they may, under any such agreement, have a right to give
instructions to the member as to the exercise of voting rights. Any person holding 3% of the total voting rights in the Company who
appoints a person other than the Chair as his or her proxy(ies) will need to ensure that both he or she and such proxy(ies) comply
with their respective disclosure obligations under the UK Disclosure and Transparency Rules.
xiii. The statement of the rights of members in relation to the appointment of proxies in paragraphs (ii) and (iii) above does not apply to
Nominated Persons. The rights described in these paragraphs can only be exercised by members of the Company.
xiv. As at close of business on 22 October 2025 (being the latest practicable date prior to publication of this document), the Company’s
issued share capital comprised 143,090,588 Ordinary shares of 5 pence each and there were a further 76,209,590 shares held in
treasury. Each Ordinary share carries the right to one vote at a general meeting of the Company and therefore the total number
of voting rights in the Company as at close of business on 22 October 2025 is 143,090,588. Treasury shares represent 34.8% of the
total issued Ordinary share capital (inclusive of treasury shares).
xv. No Director has a service contract with the Company, however, copies of Directors’ letters of appointment will be available for
inspection for at least 15 minutes prior to the meeting and during the meeting.
xvi. Under Section 338 of the Companies Act 2006, members may require the Company to give, to members of the Company entitled
to receive this Notice of Meeting, notice of a resolution which may properly be moved and is intended to be moved at the Meeting.
Under Section 338A of that Act, members may request the Company to include in the business to be dealt with at the Meeting any
matter (other than a proposed resolution) which may be properly included in the business.
xvii. Members should note that it is possible that, pursuant to requests made by the 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 Annual Report and financial statements (including the auditors' report and the conduct of the audit) that
are to be laid out before the Meeting; or (ii) any circumstances connected with an auditor of the Company ceasing to hold office
since the previous meeting at which the Annual Report and financial statements was laid in accordance with Section 437 of the
Companies Act 2006. 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. Where the Company is required to place a statement on a
website under Section 527 of the Companies Act 2006, it must forward the statement to the Company’s auditors not later than the
time when it makes the statement available on the website. The business which may be dealt with at the Meeting includes any
statement that the Company has been required under Section 527 of the Companies Act 2006 to publish on the website.
xviii.
Pursuant to Section 319A of the Companies Act 2006, the Company must cause to be answered at the AGM any question relating
to the business being dealt with at the AGM which is put by a member attending the meeting, except in certain circumstances,
including if it is undesirable in the interests of the Company or the good order of the meeting that the question be answered or if to
do so would involve the disclosure of confidential information.
xix. You may not use any electronic address provided either in this Notice of Meeting or any related documents (including the Form of
Proxy) to communicate with the Company for any purposes other than those expressly stated.
Notice of Annual General Meetin
g
Continued
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
115
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
abrdn Asia or the Investment Manager
abrdn Asia Limited is a wholly owned subsidiary of
Aberdeen Group Plc and acts as the Company’s
investment manager
Aberdeen Group Plc
Aberdeen Group Plc (formerly abrdn plc) was formed by
the merger of Aberdeen Asset Management PLC and
Standard Life plc on 14 August 2017
Aberdeen Group
the Aberdeen Group Plc group of companies
Active Share
Active Share is a measure of the percentage of stock
holdings in the portfolio that differs from the benchmark
index
aFML or Manager
abrdn Fund Managers Limited
AIC
Association of Investment Companies
AIFM
the alternative investment fund manager, being aFML
AIFMD
The Alternative Investment Fund Managers Directive
Asset Cover
The value of a company’s net assets available to repay a
certain security. Asset cover is usually expressed as a
multiple and calculated by dividing the net assets
available by the amount required to repay the
specific security
CULS 2025
The £36.6 million nominal of 2.25% Convertible Unsecured
Loan Stock 2025 issued on 29 May 2018 that matured on
31 May 2025 and was redeemed and converted into
Ordinary shares.
Dilution
Dilution is the potential impact of the conversion of CULS to
Ordinary shares on the net asset value and share price of
the Company
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
NAV per share
Dividend Cover
Earnings per share divided by dividends per share
expressed as a ratio
Dividend Yield
The annual dividend expressed as a percentage of the
share price
FRC
Financial Reporting Council
Leverage
For the purposes of the Alternative Investment Fund
Managers (AIFM) Directive, 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
Net Asset Value or NAV
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 share
Net Gearing
Net gearing is calculated by dividing total assets (as
defined below) less cash or cash equivalents by
shareholders’ funds expressed as a percentage
Ongoing Charges
Ratio of expenses as percentage of average daily
shareholders’ funds calculated as per the industry
standard
Glossary of Terms and Definitions
116 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
PIDD
The pre-investment disclosure document made available
by the AIFM in relation to the Company
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
Prior Charges
The name given to all borrowings including CULS, long and
short term loans and overdrafts that are to be used for
investment purposes, reciprocal foreign currency loans,
currency facilities to the extent that they are drawn down,
index-linked securities, and all types of preference or
preferred capital and the income shares of split capital
trusts, irrespective of the time until repayment
Total Assets
Total assets less current liabilities (before deducting prior
charges as defined above)
Total Return
Total return involves reinvesting the net dividend in the
month that the share price goes ex-dividend. The NAV
total return (including diluted) involves investing the same
net dividend in the NAV of the trust on the date to which
that dividend was earned
Glossary of Terms and Definitions
Continued
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
117
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Issued Share Capital at 31 July 2025
146,335,588
Ordinary shares of 5p (excluding treasury shares)
72,964,590
Ordinary shares held in treasury
Capital History
19 October 1995
35,000,000 Ordinary shares of 25p each placed at 100p with
7,000,000 Warrants attaching, each conferring the right to
subscribe for one Ordinary share of 25p at 100p
Year ended 31 July 2013
23,372 new shares issued following the conversion of 194,182
units of CULS in December 2012 and 182,787 new Ordinary
shares issued following the conversion of 1,517,404 units of CULS
in May 2013
Year ended 31 July 2013
2,605,000 shares issued for cash and sold from treasury at a
premium to NAV
Year ended 31 July 2014
300,000 shares issued for cash at a premium to NAV; 23,228 new
Ordinary shares issued following the conversion of 192,896 units
of CULS in December 2013; and, 2,210 new Ordinary shares
issued following the conversion of 18,397 units of CULS in
May 2014
Year ended 31 July 2015
142,000 shares purchased for treasury at a discount to NAV; 3,510
new Ordinary shares issued following conversion of 29,188 units
of CULS in December 2014; 573 new Ordinary shares issued
following conversion of 4,790 units of CULS in June 2015
Year ended 31 July 2016
2,059,834 shares purchased for treasury at a discount to NAV; 137
new Ordinary shares issued following conversion of 1,137 units of
CULS in December 2015; 141 new Ordinary shares issued
following conversion of 1,176 units of CULS in June 2016
Year ended 31 July 2017
1,091,750 shares purchased for treasury at a discount to NAV;
2,595 new Ordinary shares issued following conversion of 21,594
units of CULS in December 2016; 3,546 new Ordinary shares
issued following conversion of 29,473 units of CULS in June 2017
Year ended 31 July 2018
2,137,138 shares purchased for treasury at a discount to NAV;
323,835 new Ordinary shares issued following conversion of
2,687,937 units of CULS in December 2017. £37 million nominal of
2.25% Convertible Unsecured Loan Stock 2025 issued at 100p per
unit and 2019 CULS redeemed and/or converted into Ordinary
shares on 29 May 2018
Year ended 31 July 2019
1,302,650 shares purchased for treasury at a discount to NAV;
2,348 new Ordinary shares issued following conversion of 34,482
units of CULS in December 2018; 1,379 new Ordinary shares
issued following conversion of 20,286 units of CULS in June 2019.
Year ended 31 July 2020
1,484,256 shares purchased for treasury at a discount to NAV;
16,302 new Ordinary shares issued following conversion of
238,951 units of CULS in December 2019; 814 new Ordinary
shares issued following conversion of 12,050 units of CULS in
June 2020.
Year ended 31 July 2021
1,055,000 shares purchased for treasury at a discount to NAV;
1,110 new Ordinary shares issued following conversion of 16,359
units of CULS in December 2020; 1,365 new Ordinary shares
issued following conversion of 20,117 units of CULS in June 2021.
Year ended 31 July 2022
935 new shares issued following conversion of 13,764 units of
CULS in December 2021; on 4 February 2022 a five for one Share
Split was implemented and the CUL; 536 new Ordinary shares
issued following conversion of 1,579 units of CULS in June 2022
Year ended 31 July 2023
500,000 shares purchased for treasury at a discount to NAV; 2,158
new Ordinary shares issued following conversion of 6,334 units of
CULS in December 2022; 2,189 new Ordinary shares issued
following conversion of 6,419 units of CULS in June 2023
Year ended 31 July 2024
2.85m shares purchased for treasury at a discount to NAV; 8,191
new Ordinary shares issued following conversion of 24,012 units
of CULS in December 2023; 10,549 new Ordinary shares issued
following conversion of 30,927 units of CULS in June 2024
Year ended 31 July 2025
17.87m shares purchased for treasury at a discount to NAV;
15,937 new Ordinary shares issued following conversion of
£46,704 units of CULS in December 2024. 2025 CULS redeemed
and/or converted into 10,562,933 new Ordinary shares on 31 May
2025
Your Company’s Share
Capital History
118 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
119
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
120 Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
Aberdeen Asia Focus PLC
(formerly abrdn Asia Focus plc)
121
Directors
Krishna Shanmuganathan, Chair
Charlotte Black
Lindsay Cooper
Alex Finn
Lucy Macdonald
Davina Curling
Registered in England as an
Investment Company
Registration Number 03106339
Manager
abrdn Asia Limited
7 Straits View
# 23-04. Marina One East Tower
Singapore 018936
Alternative Investment Fund Manager*
abrdn Fund Managers Limited
280 Bishopsgate
London EC2M 4AG
(
Authorised and regulated by the Financial
Conduct Authority
)
(* appointed as required by EU Directive 2011/61/EU)
Secretaries and Registered Office
abrdn Holdings Limited
280 Bishopsgate
London EC2M 4AG
Registrars
Equiniti
Aspect House
Spencer Road
Lancing
West Sussex, BN99 6DA
Telephone enquiries +44 (0) 371 384 2416
Lines open 8.30 a.m. to 5.30 p.m., Monday to Friday
(excluding public holidays in England & Wales)
shareview.co.uk
Stockbrokers
Panmure Liberum
Ropemaker Place, Level 12
25 Ropemaker Street
London EC2Y 9LY
Solicitors
Dentons UK and Middle East LLP
Quartermile One
15 Lauriston Place
Edinburgh EH3 9EP
Independent Auditor
PricewaterhouseCoopers LLP
Atria One
144 Morrison Street
Edinburgh EH3 8EX
CULS Trustee
The Law Debenture Corporation p.l.c.
Fifth Floor
100 Wood Street
London EC2V 7EX
Depositary
BNP Paribas SA London
10 Harewood Avenue
London NW1 6AA
Website
asia-focus.co.uk
Email
asia.focus@aberdeenplc.com
Foreign Account Tax Compliance Act
(“FATCA”) IRS Registration Number (“GIIN”):
5ITCFT.99999.SL.826
Legal Entity Identifier
5493000FBZP1J92OQY70
Corporate Information
asia-focus.co.uk
Aberdeen Asia Focus PLC
(
formerly abrdn Asia Focus plc
)
Investing in Asia’s smaller listed companies with long-term growth potential
Annual Report 31 July 2025
For more information visit asia-focus.co.uk
aberdeeninvestments.com
The Company
The Company is an investment trust and its Ordinary shares are admitted to trading on the main market of London
Stock Exchange plc. The Company aims to attract long-term private and institutional investors looking to benefit from
the growth prospects of Asia’s smaller companies.
Investment Objective
The Company aims to maximise total return to shareholders over the long term from a portfolio made up predominantly
of quoted smaller companies in the economies of Asia excluding Japan.
Five-Year Performance Linked Tender
On 27 January 2022 shareholders approved the introduction of a performance-linked tender offer, which provides that,
in the event of underperformance of the NAV per Share versus the MSCI AC Asia ex Japan Small Cap Index over a five-
year period commencing 1 August 2021, Shareholders will be offered the opportunity to realise a proportion of their
holding for cash at a level close to NAV less costs of the tender offer. The tender offer would be capped at a maximum of
25% of the issued share capital of the Company at that time.
Benchmark Index
From 1 August 2021 the Manager has utilised the MSCI AC Asia ex Japan Small Cap Index (currency adjusted) as well as
peer group comparisons for Board reporting. For periods prior to 1 August 2021, a composite index is used comprising
the MSCI AC Asia Pacific ex Japan Small Cap Index (currency adjusted) up to 31 July 2021 and the MSCI AC Asia ex
Japan Small Cap Index (currency adjusted) thereafter. It is likely that performance will diverge, possibly quite
dramatically in either direction, from the comparative index. The Manager seeks to minimise risk by using in-depth
research and does not see divergence from an index as risk.
Investment Manager and Alternate Investment Fund Manager
The Company’s Alternative Investment Fund Manager, appointed as required by EU Directive 2011/61/EU, is abrdn Fund
Managers Limited (“aFML”) which is authorised and regulated by the Financial Conduct Authority. Day to day
management of the portfolio is delegated to abrdn Asia Limited (“abrdn Asia”, the “Manager” or the “Investment
Manager”). aFML and abrdn Asia are wholly owned subsidiaries of Aberdeen Group Plc.
Aberdeen Asia Focus PLC Annual Report 31st July 2025