The £625 million Aberdeen Asia Focus investment trust company delivered a net asset value (NAV) total return of +11.4% and a share price total return of +13.0% for the six months to January 31, outperforming the MSCI AC Asia ex Japan Small Cap Index, which returned +9.0% over the same period.
Aberdeen Asia Focus invests in a diversified portfolio of quoted smaller companies with strong growth prospects across a range of Asian industries and economies.
The fund said the results were “strong” and built on “previous good performance” and followed its entry into the FTSE 250.
“The portfolio’s outperformance was primarily driven by strategic exposure to specialist companies within the AI and electronics ecosystem,” said Aberdeen Asia Focus.
“Key contributors included … Newly added Taiwanese companies like MPI Corp and Sino-American Silicon Products (SAS), capitalising on AI and 5G demand …
“High-growth opportunities in Hong Kong and China, such as WuXi XDC in biotech and ASMPT in advanced packaging for semiconductors …
“Korean holdings Hansol Chemical and Leeno Industrial, solid AI-linked performers …
“Selective capital deployed in India, such as the addition of Karur Vysya Bank, targeting strong fundamentals and long-term potential.”
Two interim dividends were paid in the first six months of the fund’s financial year of 1.6p per ordinary share. The board has set a target dividend of at least 6.43p per ordinary share for the financial year ending July 31, 2026.
Aberdeen Asia Focus chair Krishna Shanmuganathan said: “Our long-term track record remains exceptional. Since inception in 1995, our NAV total return of +3365.8% equates to an annualised +12.4% rise, demonstrating consistent outperformance against the benchmark.
“This enduring success has also led to the company’s recognition as a double ‘ISA Millionaire’ Trust by the Association of Investment Companies (AIC). We are also greatly encouraged by the increase in retail shareholders over the last 12 months (from 26.8% to 30.0%), which we believe both recognises our outstanding long-term performance and reflects our significant promotional efforts during the period.
“These impressive results, both short and long-term, are a testament to the strategy, applied consistently by the manager in a fluctuating and increasingly volatile global environment. This patient stock picking approach is well-suited to navigating these times, giving us confidence of being able to continue to deliver sustainable returns for shareholders into the future.”