Aberdeen Investment Trusts Monthly Reports September 2016
Contents Page
United Kingdom UK Equity Income Dunedin Income Growth Investment Trust PLC Murray Income Trust PLC Shires Income PLC
4 7 10
UK Equity and Bond Income Aberdeen Smaller Companies Income Trust PLC
13
UK Smaller Companies Dunedin Smaller Companies Investment Trust PLC
16
Asia Pacific Asia Pacific excluding Japan Aberdeen Asian Income Fund Limited Aberdeen Asian Smaller Companies Investment Trust PLC Aberdeen New Dawn Investment Trust PLC Edinburgh Dragon Trust plc
19 22 25 28
Country Specialists: Asia Pacific Aberdeen New Thai Investment Trust PLC New India Investment Trust PLC
31 33
Emerging Markets Global Aberdeen Emerging Markets Investment Company Limited Aberdeen Frontier Markets Investment Company Limited
36 39
Latin American Aberdeen Latin American Income Fund Limited
42
Global Global Equity Income Murray International Trust PLC
45
Japan Aberdeen Japan Investment Trust PLC
48
North America The North American Income Trust plc
51
Tracker Aberdeen UK Tracker Trust plc
54
Investment Trust
Dunedin Income Growth Investment Trust PLC Performance Data and Analytics to 31 August 2016
Investment objective The Company’s investment objective is to achieve growth of income and capital from a portfolio invested mainly in companies listed or quoted in the United Kingdom.
Morningstar Analyst RatingTM
Benchmark FTSE All-Share Index total return.
B
Cumulative performance (%)
Morningstar RatingTM
Morningstar Analyst Rating™ Morningstar analysts assign the ratings globally on a five-tier scale with three positive ratings of Gold, Silver and Bronze.
as at 31/08/16
1 month
3 months
6 months
1 year
3 years
Share Price
249.8p
3.2
17.0
20.1
9.9
7.2
47.5
NAVA
269.2p
1.6
12.8
17.1
12.5
16.0
55.8
1.9
9.0
13.1
11.7
20.4
57.7
FTSE All-Share
5 years
Discrete performance (%) Year ending:
Twenty largest equity holdings 31/08/16
31/08/15
31/08/14
31/08/13
31/08/12
9.9
(5.8)
3.5
21.6
13.2
NAVA
12.5
(6.4)
10.1
19.5
12.4
FTSE All-Share
11.7
(2.3)
10.3
18.9
10.2
Share Price
Total return; NAV to NAV, net income reinvested, GBP. Share price total return is on a mid-to-mid basis. Dividend calculations are to reinvest as at the ex-dividend date. NAV returns based on NAVs with debt valued at fair value. Source: Aberdeen Asset Managers Limited, Lipper and Morningstar. Past performance is not a guide to future results.
Fund managers’ report The FTSE All-Share Index continued its recovery during August rising by 1.9% on a total return basis. The market took comfort from the Bank of England’s announcement of a loosening of monetary policy and further gilt purchases coupled with some relatively benign domestic economic data. As a reflection of this latter point, the more domestically focused FTSE 250 and SmallCap Indices outperformed the FTSE 100 Index and are now back above the levels on the eve of the Brexit vote. As mentioned, the Monetary Policy Committee decided to reduce interest rates by 25 basis points as well as agreeing to purchase up to £10bn of corporate bonds and £60bn of UK government bonds. However, both the Manufacturing and Services PMIs suggested a sharp rebound from their levels of the prior month providing some comfort that the more severe forecasts for a slowdown in growth provided in the immediate aftermath of the referendum result might not materialise. The Consumer Price Index measure of inflation increased marginally to 0.6% in July due to higher fuel prices while a rise in the Producer Prices Index provided an indication that the weakness of sterling had impacted import prices. August was a very quiet month with no major trades. However, we continued to write options to gently increase the income available to the Trust with calls in Centrica and puts in Capita and Rotork, amongst others. Although the UK equity market has recovered swiftly, many uncertainties remain following the decision to leave the EU. For management teams and consumers alike the future is far from clear, a position manifested by the broad range of forecasts for UK GDP growth over the medium term. As monetary policy reaches the limits of its capabilities and effectiveness, we are likely to see the baton passed to fiscal policy to support the domestic economy. However, the lack of transparency regarding the UK’s relationship with the EU is unlikely to be easily or simply resolved. This complicates an already challenging global macroeconomic picture where vulnerabilities include Europe’s banking sector, China’s credit-fuelled growth and the outcome of the Presidential election in the United States. Fund managers' report continues overleaf Including current year revenue. B Copyright © 2016 Morningstar UK Ltd. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not a guide to future results. A
Morningstar RatingTM for Funds Morningstar rates funds from one to five stars based on how well they’ve performed (after adjusting for risk and accounting for all sales charges) in comparison to similar funds.
B
% 5.1 4.7 4.2 4.1 4.0 3.9 3.5 3.4 3.3 3.1 3.0 2.8 2.8 2.7 2.6 2.6 2.5 2.5 2.4 2.3 65.5
GlaxoSmithKline British American Tobacco Royal Dutch Shell 'B' HSBC AstraZeneca Unilever Unibail Rodamco Vodafone Prudential Centrica Total Roche National Grid BP Sage Pearson BHP Billiton Compass Close Brothers Provident Financial Total Based on equity holdings only.
Ten largest fixed income holdings % 9.4 9.0 8.4 5.3 3.7 3.6 3.5 3.5 3.4 3.4 53.2
BHP Billiton Finance 6.5% 22/10/77 HBOS Cap Funding 6.461% ENEL 6.625% 15/09/76 Rabobank Cap Funding Trust 5.556% Credit Agricole 8.125% Lloyds Bank 5.75% 09/07/25 HSBC Bank Funding 5.862% 29/04/49 BG Energy Cap 6.5% 30/11/72 Barclays Bank 10% 21/05//21 QBE Insurance 6.115% 24/05/42 Total Based on fixed income holdings only. Figures may not add up due to rounding.
Total number of investments
77
All sources (unless indicated): Aberdeen Asset Managers Limited 31 August 2016.
Private investors 0500 00 00 40 Institutional investors Kenneth Harper +44 (0)131 528 4224 or Andrew Leigh +44 (0)20 7463 6312 PAGE 04 OF 56
Investment Trust
Dunedin Income Growth Investment Trust PLC Performance Data and Analytics to 31 August 2016
Fund managers’ report - continued Indeed, in more difficult times it tends to be those companies with globally diverse revenue streams, strong competitive advantages and robust financial characteristics that perform best. While it is difficult to suggest that valuations in absolute terms look attractive on average, amid the uncertainty there are pockets where the returns on offer are more attractive than they have been for some time. We will endeavour to take advantage of these opportunities as we navigate the uncharted waters ahead.
Sector allocation % 24.9 12.5 11.6 11.1 10.7 7.6 7.0 6.1 4.8 3.1 0.6 100.0
Financials Consumer Goods Oil & Gas Health Care Industrials Utilities Consumer Services Basic Materials Telecommunication Services Technology Cash Total
Key information Calendar Year end Accounts published Annual General Meeting Dividend paid Established Fund managers Ongoing chargesC Annual management fee
Premium/(Discount) with Debt at PAR Premium/(Discount) with Debt at fair value YieldD Active shareE
31 January March May February, May, August, November 1873 Jeremy Whitley Ben Ritchie 0.62% 0.45% on the first £225m, 0.35% on the next £200m and 0.25% over £425m per annum of the net assets of the Company. (10.0)% (7.2)% 4.6% 60.9%
Gearing Net gearingF Net gearing with Debt at market valueF Equity gearingG
Assets/Debt
Expressed as a percentage of average daily net assets for the year ended 31 January 2016. The Ongoing Charges Figure (OCF) is the overall cost shown as a percentage of the value of the assets of the Company. It is made up of the Annual Management Fee and other charges. It does not include any costs associated with buying shares in the Company or the cost of buying and selling stocks within the Company. The Ongoing Charges figure can help you compare the annual operating expenses of different Companies. D Calculated using the Company’s historic net dividends and month end share price. E The ‘Active Share’ percentage is a measure used to describe what proportion of the Company's holdings differ from the benchmark index holdings. F Gearing is expressed as a percentage of gross assets, which includes current year revenue, less cash/cash equivalents divided by shareholders' funds. G Expressed as a percentage of total equities held divided by shareholders' funds. C
The risk outlined overleaf relating to gearing is particularly relevant to the trust, but should be read in conjunction with all warnings and comments given. Important information overleaf
Gross assets Equities Fixed Income Total investments Cash Other net assets Short-term borrowings 3.99% Senior Secured Note 2045 7.875% Debenture 2019 Net assets
15.2% 18.7% 8.1%
£’000 % 451,367 30,058 481,425 6,221 (383) (11,140) (30,000)
108.1 7.2 115.3 1.5 (0.1) (2.7) (7.2)
(28,600) 417,523
(6.8) 100.0
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Investment Trust
Dunedin Income Growth Investment Trust PLC
AIFMD Leverage Limits Gross Notional Commitment
2.5x 2x
Capital structure Ordinary shares Treasury shares
150,512,687 3,165,248
Allocation of management fees and finance costs Capital Revenue
60% 40%
Trading details Reuters/Epic/Bloomberg code ISIN code Sedol code Stockbrokers Market makers
DIG GB0003406096 0340609 J.P. Morgan Cazenove SETSmm
Important information Risk factors you should consider prior to investing: • The value of investments and the income from them can fall and investors may get back less than the amount invested. • Past performance is not a guide to future results. • Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years. • The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that any movement in the value of the company's assets will result in a magnified movement in the NAV. • The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult to realise investments and may lead to volatility in the market price of the Company's shares. • The Company may charge expenses to capital which may erode the capital value of the investment. • Derivatives may be used, subject to restrictions set out for the Company, in order to manage risk and generate income. The market in derivatives can be volatile and there is a higher than average risk of loss. • There is no guarantee that the market price of the Company's shares will fully reflect their underlying Net Asset Value. • As with all stock exchange investments the value of the Company's shares purchased will immediately fall by the difference between the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen. • Certain trusts may seek to invest in higher yielding securities such as bonds, which are subject to credit risk, market price risk and interest rate risk. Unlike income from a single bond, the level of income from an investment trust is not fixed and may fluctuate. • Yields are estimated figures and may fluctuate, there are no guarantees that future dividends will match or exceed historic dividends and certain investors may be subject to further tax on dividends. Other important information: Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments. FTSE International Limited (‘FTSE’) © FTSE 2016. ‘FTSE®’ is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. RAFI® is a registered trademark of Research Affiliates, LLC. All rights in the FTSE indices and/ or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent. PAGE 06 OF 56
Investment Trust
Murray Income Trust PLC Performance Data and Analytics to 31 August 2016
Investment objective
Morningstar Analyst RatingTM
To achieve a high and growing income combined with capital growth through investment in a portfolio principally of UK equities.
Benchmark FTSE All-Share Index.
Morningstar Analyst Rating™ Morningstar analysts assign the ratings globally on a five-tier scale with three positive ratings of Gold, Silver and Bronze. B
Cumulative performance (%)
Morningstar RatingTM
as at 31/08/16
1 month
3 months
6 months
1 year
3 years
Share Price
730.0p
2.7
12.1
14.8
10.3
8.5
5 years 47.6
NAVA
800.4p
2.0
12.2
15.3
14.6
19.8
61.4
FTSE All-Share
1.9
9.0
13.1
11.7
20.4
57.7
FTSE 350 Higher Yield
1.9
12.2
16.7
15.4
15.7
53.4
Discrete performance (%) Year ending:
31/08/16
31/08/15
31/08/14
31/08/13
Share Price
10.3
(6.4)
5.1
21.6
31/08/12 11.8
NAVA
14.6
(4.7)
9.7
19.1
13.2
FTSE All-Share
11.7
(2.3)
10.3
18.9
10.2
FTSE 350 Higher Yield
15.4
(9.6)
10.9
16.3
14.0
Total return; NAV to NAV, net income reinvested, GBP. Share price total return is on a mid-to-mid basis. Dividend calculations are to reinvest as at the ex-dividend date. NAV returns based on NAVs with debt valued at fair value. Source: Aberdeen Asset Managers Limited, Lipper and Morningstar. Past performance is not a guide to future results.
Fund managers’ report The FTSE All-Share Index continued its recovery during August rising by 1.9% on a total return basis. The market took comfort from the Bank of England’s announcement of a loosening of monetary policy and further gilt purchases coupled with some relatively benign domestic economic data. As a reflection of this latter point, the more domestically focused FTSE 250 and SmallCap Indices outperformed the FTSE 100 Index. As mentioned above, the Monetary Policy Committee decided to reduce interest rates by 25 basis points as well as agreeing to purchase up to £10bn of corporate bonds and £60bn of UK government bonds. However, both the Manufacturing and Services PMIs suggested a sharp rebound from their levels of the prior month providing some comfort that the more severe forecasts for a slowdown in growth provided in the immediate aftermath of the referendum result might not materialise. The Consumer Price Index measure of inflation increased from 0.5% in June to 0.6% in July due to higher fuel prices while a rise in the Producer Prices Index provided an indication that the weakness of sterling had impacted import prices. August was a very quiet month with no major trades. However, we continued to write options to gently increase the income available to the Trust with calls in Centrica, Unilever and Schneider Electric, and puts in Capita and Rotork, amongst others. Although the UK equity market has recovered swiftly, many uncertainties remain following the decision to leave the EU. For management teams and consumers alike the future is far from clear, a position manifested by the broad range of forecasts for UK GDP growth over the medium term. As monetary policy reaches the limits of its capabilities and effectiveness, we are likely to see the baton passed to fiscal policy to support the domestic Fund managers' report continues overleaf Including current year revenue. B Copyright © 2016 Morningstar UK Ltd. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not a guide to future results. A
Morningstar RatingTM for Funds Morningstar rates funds from one to five stars based on how well they’ve performed (after adjusting for risk and accounting for all sales charges) in comparison to similar funds. B
Twenty largest equity holdings Unilever British American Tobacco GlaxoSmithKline AstraZeneca Royal Dutch Shell 'B' Roche Imperial Brands HSBC Vodafone Compass Prudential Sage Centrica Aberforth Smaller Companies Trust Nordea Bank National Grid Provident Financial Pearson BHP Billiton Microsoft Total
% 4.8 4.8 4.7 4.7 3.7 3.4 3.3 3.2 3.2 3.0 3.0 2.9 2.6 2.5 2.5 2.5 2.4 2.4 2.4 2.4 64.4
Sector allocation % 23.2 17.5 12.8 10.4 7.2 7.1 5.4 5.3 5.1 4.8 1.2 100.0
Financials Consumer Goods Healthcare Industrials Oil & Gas Telecommunications Consumer Services Technology Utilities Basic Materials Cash Total Figures may not add up to 100 due to rounding.
Total number of investments
47
All sources (unless indicated): Aberdeen Asset Managers Limited 31 August 2016.
Private investors 0500 00 00 40 Institutional investors Kenneth Harper +44 (0)131 528 4224 or Andrew Leigh +44 (0)20 7463 6312 PAGE 07 OF 56
Investment Trust
Murray Income Trust PLC Performance Data and Analytics to 31 August 2016
Fund managers’ report - continued economy. However, the lack of transparency regarding the UK’s relationship with the EU is unlikely to be easily or simply resolved. This complicates an already challenging global macroeconomic picture where vulnerabilities include Europe’s banking sector, China’s credit-fuelled growth and the outcome of the Presidential election in the United States. In an environment where quantitative easing has benefited asset prices more than the real economy and with an uneven distribution of wealth, it is perhaps unsurprising to see an increase in populist political rhetoric. It is difficult to suggest that valuations in absolute terms look attractive although a more powerful argument can be made relative to government or corporate bonds but perhaps this should not be overly relied on given the current highly unorthodox setting. Indeed, in more difficult times it tends to be those companies with globally diverse revenue streams, strong competitive advantages and robust financial characteristics that perform best. We will endeavour to retain this focus as we navigate the uncharted waters ahead.
Key information Calendar Year end Accounts published Annual General Meeting Dividend paid Established Fund manager Ongoing chargesC Annual management fee
Premium/(Discount) YieldD Net gearingE Active shareF
30 June September October January, April, July, October 1923 Charles Luke 0.76% 0.55% per annum on first £400m of net assets, 0.45% on next £150m, 0.25% on excess over £550m. (8.8)% 4.4% 8.3% 62.5%
AIFMD Leverage Limits Gross Notional Commitment
2.5x 2x
Assets/Debt (£m) Gross assets Short-term borrowings Cash
592.4 55.0 10.5
Capital structure Ordinary shares Treasury shares
67,150,458 1,443,000
Allocation of management fees and finance costs Capital Revenue
50% 50%
Trading details Reuters/Epic/Bloomberg code ISIN code Sedol code Stockbrokers Market makers
Expressed as a percentage of average daily net assets for the year ended 30 June 2016. The Ongoing Charges Figure (OCF) is the overall cost shown as a percentage of the value of the assets of the Company. It is made up of the Annual Management Fee and other charges. It does not include any costs associated with buying shares in the Company or the cost of buying and selling stocks within the Company. The Ongoing Charges figure can help you compare the annual operating expenses of different Companies. D Calculated using the Company’s historic net dividends and month end share price. E Gearing is defined as a percentage, with net debt (total debt less cash/cash equivalents) divided by shareholders’ funds. F The ‘Active Share’ percentage is a measure used to describe what proportion of the Company's holdings differ from the benchmark index holdings.
MUT GB0006111123 0611112 Canaccord Genuity SETSmm
C
The risk outlined overleaf relating to gearing is particularly relevant to the trust, but should be read in conjunction with all warnings and comments given. Important information overleaf
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Investment Trust
Murray Income Trust PLC
Important information Risk factors you should consider prior to investing: • The value of investments and the income from them can fall and investors may get back less than the amount invested. • Past performance is not a guide to future results. • Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years. • The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that any movement in the value of the company's assets will result in a magnified movement in the NAV. • The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult to realise investments and may lead to volatility in the market price of the Company's shares. • The Company may charge expenses to capital which may erode the capital value of the investment. • Derivatives may be used, subject to restrictions set out for the Company, in order to manage risk and generate income. The market in derivatives can be volatile and there is a higher than average risk of loss. • There is no guarantee that the market price of the Company's shares will fully reflect their underlying Net Asset Value. • As with all stock exchange investments the value of the Company's shares purchased will immediately fall by the difference between the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen. • Certain trusts may seek to invest in higher yielding securities such as bonds, which are subject to credit risk, market price risk and interest rate risk. Unlike income from a single bond, the level of income from an investment trust is not fixed and may fluctuate. • Yields are estimated figures and may fluctuate, there are no guarantees that future dividends will match or exceed historic dividends and certain investors may be subject to further tax on dividends. Other important information: Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments. FTSE International Limited (‘FTSE’) © FTSE 2016. ‘FTSE®’ is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. RAFI® is a registered trademark of Research Affiliates, LLC. All rights in the FTSE indices and/ or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent. PAGE 09 OF 56
Investment Trust
Shires Income PLC Performance Data and Analytics to 31 August 2016
Investment objective To provide a high level of income together with growth of both income and capital from a portfolio substantially invested in UK Equities.
Benchmark FTSE All-Share Index total return.
as at 31/08/16
1 month
3 months
6 months
1 year
3 years
Share Price
225.5p
4.6
11.5
15.9
3.7
14.1
69.9
NAVA
257.5p
5.4
11.9
18.4
13.7
28.3
84.0
1.9
9.0
13.1
11.7
20.4
57.7
5 years
31/08/16
31/08/15
31/08/14
31/08/13
31/08/12
3.7
(1.0)
11.2
21.8
22.2
NAV
13.7
(0.2)
13.0
25.4
14.4
FTSE All-Share
11.7
(2.3)
10.3
18.9
10.2
Discrete performance (%) Year ending: Share Price A
Total return; NAV to NAV, net income reinvested, GBP. Share price total return is on a mid-to-mid basis. Dividend calculations are to reinvest as at the ex-dividend date. NAV returns based on NAVs with debt valued at fair value. Source: Aberdeen Asset Managers Limited, Lipper and Morningstar Past performance is not a guide to future results.
Fund managers’ report The FTSE All-Share Index delivered further gains in August rising by 1.9% in total return terms. The most significant macroeconomic news flow during the month was the action taken by the Bank of England’s Monetary Policy Committee. Having initially taken no action in the immediate aftermath of the Brexit decision they subsequently announced a stimulus package designed to reassure investors that they were very aware of the potential risks posed by this event. Measures included; a reduction in the interest rate to 0.25%, a restarting of the asset purchase programme, with a further £60bn available for Gilts and £10bn for corporate bonds. Lastly a Term Funding Scheme was introduced to provide cheap liquidity to encourage the banks to lend. The economic data remained mixed. On the one hand and perhaps unsurprisingly sentiment indicators were generally weak, pointing to an impending slowdown in the domestic economy. However, the hard data told a different story with the likes of retail sales and labour market readings all showing no discernible impact from Brexit to date. In the portfolio we took profits in AstraZeneca. We also top-sliced Centrica in recognition of the difficult conditions faced by the business. We topped up Provident Financial where we are encouraged by the long term growth prospects of the business as it broadens its operations away from the core of home collected credit. Capita’s share price was weak post the referendum and we took the opportunity to buy a little more. We sold calls over BHP Billiton, where a partial recovery in the share price allied to February’s dividend cut resulted in a less attractive yield. Lastly puts were sold over Rotork and Imperial Brands as we sought to build these positions. The US economy is still making progress as evidenced by solid employment data and indications that interest rates are likely to be raised again later this year. Brexit has so far been more of a political shock than an economic one in the eurozone and the region remains on course to grow by around 1.6% this year. Chinese growth is holding steady Fund managers' report continues overleaf Including current year revenue. B Copyright © 2016 Morningstar UK Ltd. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not a guide to future results. A
Morningstar RatingTM for Funds Morningstar rates funds from one to five stars based on how well they’ve performed (after adjusting for risk and accounting for all sales charges) in comparison to similar funds. B
Ten largest equity holdings
Cumulative performance (%)
FTSE All-Share
Morningstar RatingTM
Aberdeen Smaller Companies Income Royal Dutch Shell 'B' British American Tobacco GlaxoSmithKline AstraZeneca Unilever HSBC Vodafone Chesnara Sage Total
% 6.3 3.2 3.1 3.0 3.0 2.7 2.7 2.4 2.3 2.3 31.0
Fixed income holdings % 6.3 6.0 5.1 4.8 4.0 1.0 0.6 27.8
Ecclesiastical Insurance 8.875% Royal & Sun Alliance 7.375% General Accident 7.875% Santander 10.375% Standard Chartered 8.25% Rea Holdings 9% Balfour Beatty 10.75% Total
Sector allocation % 48.4 9.4 9.0 6.4 6.3 6.0 4.2 3.8 3.4 3.1 100.0
Financials Industrials Consumer Goods Oil & Gas Health Care Consumer Services Basic Materials Telecommunications Utilities Technology Total Figures may not add up to 100 due to rounding.
Total number of investments
47
All sources (unless indicated): Aberdeen Asset Managers Limited 31 August 2016.
Private investors 0500 00 00 40 Institutional investors Kenneth Harper +44 (0)131 528 4224 or Andrew Leigh +44 (0)20 7463 6312 PAGE 10 OF 56
Investment Trust
Shires Income PLC Performance Data and Analytics to 31 August 2016
Fund managers’ report - continued but factors such as weak corporate investment and loss of momentum in real estate suggest a need for further stimulus if the current level of expansion is to be maintained. As we consider the companies in the portfolio we note that although trading is generally fine they too are suffering from the uncertainty that surrounds the shape of our future relationship with Europe. A temporary hiatus is manageable but a prolonged period of constrained investment will impact the medium term prospects.
Key information Calendar Year end Accounts published Annual General Meeting Dividend paid Established Fund manager Ongoing chargesC Annual management fee
Premium/(Discount) YieldD Active shareE
31 March June July January, April, July, October 1929 Ed Beal 0.97% 0.45% up to £100m and 0.4% over £100m on net assets and long term borrowings (12.4)% 5.4% 58.7%
Gearing EquitiesF Total netG
(12.0)% 21.6%
AIFMD Leverage Limits Gross Notional Commitment
2.5x 2x
Assets
£’000 %
Equities (inc. Cnv's) Fixed Income Total investments Cash Other net assets Debt Net Assets
67,988 25,912 93,900 2,382 65 (19,050) 77,297
88.0 33.5 121.5 3.1 0.1 (24.7) 100.0
Capital structure Ordinary shares 3.5% Cumulative Preference shares
29,997,580 50,000
Allocation of management fees and finance costs Capital Revenue
50% 50%
Trading details
Expressed as a percentage of average daily net assets for the year ended 31 March 2016. The Ongoing Charges Figure (OCF) is the overall cost shown as a percentage of the value of the assets of the Company. It is made up of the Annual Management Fee and other charges. It does not include any costs associated with buying shares in the Company or the cost of buying and selling stocks within the Company. The Ongoing Charges figure can help you compare the annual operating expenses of different Companies. D Calculated using the Company’s historic net dividends and month end share price. E The ‘Active Share’ percentage is a measure used to describe what proportion of the Company's holdings differ from the benchmark index holdings. F Expressed as a percentage of total equities held divided by shareholders’ funds. G Net gearing is expressed as a percentage of gross assets, which includes current year revenue, less cash/cash equivalents divided by shareholders' funds. C
The risk outlined overleaf relating to gearing is particularly relevant to the trust, but should be read in conjunction with all warnings and comments given. Important information overleaf
Reuters/Epic/Bloomberg code ISIN code Sedol code Stockbrokers Market makers
SHRS GB0008052507 0805250 J.P. Morgan Cazenove CANA, CFEP, JPMS, NITE , WINS
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Investment Trust
Shires Income PLC
Important information tRisk factors you should consider prior to investing: • The value of investments and the income from them can fall and investors may get back less than the amount invested. • Past performance is not a guide to future results. • Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years. • The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that any movement in the value of the company's assets will result in a magnified movement in the NAV. • The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult to realise investments and may lead to volatility in the market price of the Company's shares. • The Company may charge expenses to capital which may erode the capital value of the investment. • There is no guarantee that the market price of the Company's shares will fully reflect their underlying Net Asset Value. • As with all stock exchange investments the value of the Company's shares purchased will immediately fall by the difference between the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen. • Certain trusts may seek to invest in higher yielding securities such as bonds, which are subject to credit risk, market price risk and interest rate risk. Unlike income from a single bond, the level of income from an investment trust is not fixed and may fluctuate. • With funds investing in bonds there is a risk that interest rate fluctuations could affect the capital value of investments. Where long term interest rates rise, the capital value of shares is likely to fall, and vice versa. In addition to the interest rate risk, bond investments are also exposed to credit risk reflecting the ability of the borrower (i.e. bond issuer) to meet its obligations (i.e. pay the interest on a bond and return the capital on the redemption date). The risk of this happening is usually higher with bonds classified as ‘sub-investment grade’. These may produce a higher level of income but at a higher risk than investments in ‘investment grade’ bonds. In turn, this may have an adverse impact on funds that invest in such bonds. • Yields are estimated figures and may fluctuate, there are no guarantees that future dividends will match or exceed historic dividends and certain investors may be subject to further tax on dividends. Other important information: Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments. FTSE International Limited (‘FTSE’) © FTSE 2016. ‘FTSE®’ is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. RAFI® is a registered trademark of Research Affiliates, LLC. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/ or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.
PAGE 12 OF 56
Investment Trust
Aberdeen Smaller Companies Income Trust PLC Performance Data and Analytics to 31 August 2016
Investment objective
Morningstar RatingTM
To provide a high and growing dividend and capital growth from a portfolio invested principally in the ordinary shares of small companies and UK fixed income securities.
Morningstar RatingTM for Funds Morningstar rates funds from one to five stars based on how well they’ve performed (after adjusting for risk and accounting for all sales charges) in comparison to similar funds. B
Benchmark FTSE SmallCap (ex Investment Companies) Index total return.
Ten largest equity holdings
Cumulative performance (%) as at 31/08/16
1 month
3 months
6 months
Share Price
198.5p
4.5
0.7
5.0
(4.7)
7.8
92.8
NAVA
254.7p
3.7
6.4
9.3
3.8
32.0
108.0
3.9
5.4
12.0
6.9
29.7
104.6
31/08/16
31/08/15
31/08/14
31/08/13
31/08/12
(4.7)
13.1
0.0
69.7
5.4
NAV
3.8
13.8
11.7
41.3
11.5
FTSE SmallCap ex IC
6.9
8.3
12.1
45.0
8.8
FTSE SmallCap ex IC
1 year
3 years
5 years
Discrete performance (%) Year ending: Share Price A
% 3.7 3.4 3.3 2.8 2.6 2.6 2.6 2.6 2.5 2.5 28.6
RPC XP Power Dechra Pharmaceuticals Fisher James & Sons Chesnara Aveva Hansteen Wilmington Euromoney Institutional Investor Interserve Total
Total return; NAV to NAV, net income reinvested, GBP. Share price total return is on a mid-to-mid basis. Dividend calculations are to reinvest as at the ex-dividend date. NAV returns based on NAVs with debt valued at fair value. Source: Aberdeen Asset Managers Limited, Lipper and Morningstar. Past performance is not a guide to future results.
Fixed income, Convertibles and Preference share holdings
Fund managers’ report
General Accident 8.875% Aviva 8.75% Balfour Beatty Cum Cnv 10.75% Ecclesiastical Insurance 8.625% Anglian Water Serv Finance 4.5% 22/02/26 Society of Lloyds 7.421% Wales & West Utilities Finance 6.75% 17/12/36 Electricite de France 6% HBOS Cap Funding 6.461% Total
The FTSE All-Share Index rose 1.9% in August and is up 10.5% year to date. All the size groupings were in positive territory over the month with the FTSE SmallCap ex-Investment Companies index leading the way up 3.9% and the FTSE 250 and FTSE 100 Indices up 2.8% and 1.9% respectively. The large caps continue to lead the pack for the year, up 12.1%. The Government All Stocks and UK Corporate Bond indices were up 2.7% and 3.1% respectively. All returns expressed in total return terms. In August the Monetary Policy Committee announced a substantial package of monetary policy easing, reducing interest rates by 25 basis points and agreeing to purchase up to £10bn of corporate bonds and £60bn of UK government bonds. However, monetary policy effectiveness is continually being called into question and consumers and businesses will look to the new UK Chancellor, Philip Hammond, to deliver some meaningful fiscal stimulus in his Autumn Statement. In what was a fairly quiet month for portfolio activity, we trimmed Hiscox, BBA Aviation and RPC on strength, and to secure some profit for the Trust. It is too early to draw any useful conclusions as to what the mid to longer term economic and political consequences of Brexit will be, but in the short term we have seen sterling weaken and the outlook for domestic growth has deteriorated. With that in mind, emphasis will continue to be placed on identifying and investing in those companies with the most diversified revenues both geographically and by end market. This should provide the Trust with the best blend of growth as well as a more resilient stream of company earnings. Valuations have retreated in places and we will selectively look to take advantage of those opportunities as they arise.
% 2.3 2.2 1.6 1.3 1.0 0.9 0.9 0.8 0.7 11.7
Sector allocation % 41.1 21.3 12.3 7.6 6.6 5.2 3.0 2.4 0.5 – 100.0
Industrials Financials Consumer Services Health Care Consumer Goods Basic Materials Technology Telecommunications Oil & Gas Utilities Total Figures may not add up to 100 due to rounding.
Total number of investments
54
All sources (unless indicated): Aberdeen Asset Managers Limited 31 August 2016.
Including current year revenue. B Copyright © 2016 Morningstar UK Ltd. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not a guide to future results. A
Private investors 0500 00 00 40 Institutional investors Kenneth Harper +44 (0)131 528 4224 or Andrew Leigh +44 (0)20 7463 6312 PAGE 13 OF 56
Investment Trust
Aberdeen Smaller Companies Income Trust PLC Performance Data and Analytics to 31 August 2016 Key information Calendar Year end Accounts published Annual General Meeting Dividend paid Established Fund manager Ongoing chargesC Annual management feeD Premium/(Discount) YieldE Active shareF
31 December March April January, April, July, October 1992 Jonathan Allison 1.50% 0.75% (22.1)% 3.4% 87.2%
Gearing EquitiesG Total netH
(2.8)% 10.4%
AIFMD Leverage Limits Gross Notional Commitment
2.5x 2x
Assets
£’000 %
Equities Convertibles Fixed Income Total investments Cash Other net assets Debt Net assets
54,780 1,039 6,420 62,239 1,121 (7,000)
97.2 1.8 11.4 110.4 2.0 (12.4)
56,360
100.0
Capital structure Ordinary shares
22,109,765
Allocation of management fees and finance costs Capital Revenue
70% 30%
Trading details Reuters/Epic/Bloomberg code ISIN code Sedol code Stockbrokers Market makers Expressed as a percentage of average daily net assets for the year ended 31 December 2015. The Ongoing Charges Figure (OCF) is the overall cost shown as a percentage of the value of the assets of the Company. It is made up of the Annual Management Fee and other charges. It does not include any costs associated with buying shares in the Company or the cost of buying and selling stocks within the Company. The Ongoing Charges figure can help you compare the annual operating expenses of different Companies. D 0.75% per annum of the value of the Company’s gross assets. E Calculated using the Company’s historic net dividends and month end share price. F The ‘Active Share’ percentage is a measure used to describe what proportion of the Company's holdings differ from the benchmark index holdings. G Expressed as a percentage of total equities held divided by shareholders' funds. H Net gearing is expressed as a percentage of gross assets, which includes current year revenue, less cash/cash equivalents divided by shareholders' funds.
ASCI GB0008063728 0806372 WINS Investment Trusts CANA, CFEP, INV, JPMS, WINS
C
The risks outlined overleaf relating to gearing and smaller companies are particularly relevant to this trust but should be read in conjunction with all warnings and comments given. Important information overleaf
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Investment Trust
Aberdeen Smaller Companies Income Trust PLC
Important information Risk factors you should consider prior to investing: • The value of investments and the income from them can fall and investors may get back less than the amount invested. • Past performance is not a guide to future results. • Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years. • The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that any movement in the value of the company's assets will result in a magnified movement in the NAV. • The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult to realise investments and may lead to volatility in the market price of the Company's shares. • The Company may charge expenses to capital which may erode the capital value of the investment. • The Company invests in the securities of smaller companies which are likely to carry a higher degree of risk than larger companies. • Derivatives may be used, subject to restrictions set out for the Company, in order to manage risk and generate income. The market in derivatives can be volatile and there is a higher than average risk of loss. • There is no guarantee that the market price of the Company's shares will fully reflect their underlying Net Asset Value. • As with all stock exchange investments the value of the Company's shares purchased will immediately fall by the difference between the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen. • Certain trusts may seek to invest in higher yielding securities such as bonds, which are subject to credit risk, market price risk and interest rate risk. Unlike income from a single bond, the level of income from an investment trust is not fixed and may fluctuate. • With funds investing in bonds there is a risk that interest rate fluctuations could affect the capital value of investments. Where long term interest rates rise, the capital value of shares is likely to fall, and vice versa. In addition to the interest rate risk, bond investments are also exposed to credit risk reflecting the ability of the borrower (i.e. bond issuer) to meet its obligations (i.e. pay the interest on a bond and return the capital on the redemption date). The risk of this happening is usually higher with bonds classified as ‘sub-investment grade’. These may produce a higher level of income but at a higher risk than investments in ‘investment grade’ bonds. In turn, this may have an adverse impact on funds that invest in such bonds. • Specialist funds which invest in small markets or sectors of industry are likely to be more volatile than more diversified trusts. • Yields are estimated figures and may fluctuate, there are no guarantees that future dividends will match or exceed historic dividends and certain investors may be subject to further tax on dividends. Other important information: Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments. FTSE International Limited (‘FTSE’) © FTSE 2016. ‘FTSE®’ is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. RAFI® is a registered trademark of Research Affiliates, LLC. All rights in the FTSE indices and/ or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent. PAGE 15 OF 56
Investment Trust
Dunedin Smaller Companies Investment Trust PLC Performance Data and Analytics to 31 August 2016
Investment objective
Morningstar Analyst RatingTM
The achievement of long term growth from a portfolio of smaller companies in the United Kingdom.
Benchmark FTSE SmallCap (ex Investment Companies) Index.
Morningstar Analyst Rating™ Morningstar analysts assign the ratings globally on a five-tier scale with three positive ratings of Gold, Silver and Bronze. B
Cumulative performance (%) as at 31/08/16
1 month
3 months
6 months
1 year
3 years
5 years
Share Price
200.6p
2.9
1.6
5.5
(1.3)
5.2
60.4
NAVA
243.9p
3.0
5.5
8.4
2.4
23.3
89.0
3.9
5.4
12.0
6.9
29.7
104.6
31/08/16
31/08/15
31/08/14
31/08/13
31/08/12
(1.3)
8.8
(2.1)
47.9
3.1
NAVA
2.4
11.0
8.5
36.8
12.0
FTSE SmallCap ex IC
6.9
8.3
12.1
45.0
8.8
FTSE SmallCap ex IC
Discrete performance (%) Year ending: Share Price
Total return; NAV to NAV, net income reinvested, GBP. Share price total return is on a mid-to-mid basis. Dividend calculations are to reinvest as at the ex-dividend date. NAV returns based on NAVs with debt valued at fair value. Source: Aberdeen Asset Managers Limited, Lipper and Morningstar. Past performance is not a guide to future results.
Fund managers’ report The FTSE All-Share Index delivered further gains in August rising by 1.9% in total return terms, with small companies faring better and registering a gain of 3.9%. The most significant macroeconomic news flow during the month was the action taken by the Bank of England’s Monetary Policy Committee. Having initially taken no action in the immediate aftermath of the Brexit decision they subsequently announced a stimulus package designed to reassure investors that they were very aware of the potential risks posed by this event. Measures included; a reduction in the interest rate to 0.25%, a restarting of the asset purchase programme, with a further £60bn available for Gilts and £10bn for corporate bonds. Lastly a Term Funding Scheme was introduced to provide cheap liquidity to encourage the banks to lend. The economic data remained mixed. On the one hand and perhaps unsurprisingly sentiment indicators were generally weak, pointing to an impending slowdown in the domestic economy. However, the hard data told a different story with the likes of retail sales and labour market readings all showing no discernible impact from Brexit to date. In the portfolio we top-sliced BBA Aviation which had performed strongly as investors sought US dollar based earnings post the Brexit vote. We also took profits in RPC and Berendsen. We topped up Chesnara where we consider the valuation to be attractive for a company that has the ability to deliver both organic and acquisitive growth. In addition we bought some more Fenner as we believe that the management team have taken the correct actions to position their business for the more difficult conditions in the US market.
Morningstar RatingTM Morningstar RatingTM for Funds Morningstar rates funds from one to five stars based on how well they’ve performed (after adjusting for risk and accounting for all sales charges) in comparison to similar funds. B
Ten largest equity holdings % 4.1 3.7 3.6 3.2 3.1 2.9 2.8 2.8 2.8 2.8 31.8
RPC Dechra Pharmaceuticals XP Power Fisher James & Sons Euromoney Institutional Investor Aveva Hansteen Wilmington Acal Smart Metering Systems Total
Sector allocation % 42.8 14.6 12.6 7.6 6.6 5.0 2.9 1.9 0.8 5.2 100.0
Industrials Financials Consumer Services Health Care Consumer Goods Basic Materials Technology Telecommunications Oil & Gas Cash Total Figures may not add up to 100 due to rounding.
Total number of investments
43
The US economy is still making progress as evidenced by solid employment data and indications that interest rates are likely to be raised again later this year. Brexit has so far been more of a political shock than an economic one in the eurozone and the region remains on course to grow by around 1.6% this year. Chinese growth is holding steady but factors such as weak corporate investment and loss of momentum in real estate suggest a need for further stimulus if the current level of expansion is to be maintained. As we All sources (unless indicated): Aberdeen Asset Managers Limited 31 August 2016.
Fund managers' report continues overleaf Including current year revenue. B Copyright © 2016 Morningstar UK Ltd. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not a guide to future results. A
Private investors 0500 00 00 40 Institutional investors Kenneth Harper +44 (0)131 528 4224 or Andrew Leigh +44 (0)20 7463 6312 PAGE 16 OF 56
Investment Trust
Dunedin Smaller Companies Investment Trust PLC Performance Data and Analytics to 31 August 2016
Fund managers’ report - continued consider the companies in the portfolio we note that although trading is generally fine they too are suffering from the uncertainty that surrounds the shape of our future relationship with Europe. A temporary hiatus is manageable but a prolonged period of constrained investment will impact the medium term prospects.
Key information Calendar Year end Accounts published Annual General Meeting Dividend paid Established Fund manager Ongoing chargesC (excluding performance fees) Ongoing chargesC (including performance fees) Annual management feeD Premium/(Discount) YieldE Gearing Active shareF
31 October January February February, July 1927 Ed Beal 0.81% 1.03% 0.4% of adjusted gross assets (17.7)% 3.0% nil 87.1%
AIFMD Leverage Limits Gross Notional Commitment
2.5x 2x
Assets/Debt (£m) Gross assets Debt Cash
121.8 5.0 6.5
Capital structure Ordinary shares
47,857,317
Allocation of management fees and finance costs Capital Revenue
75% 25%
Trading details Reuters/Epic/Bloomberg code ISIN code Sedol code Stockbrokers Market makers
C Expressed as a percentage of average daily net assets for the year ended 31 October 2015. The Ongoing Charges Figure (OCF) is the overall cost shown as a percentage of the value of the assets of the Company. It is made up of the Annual Management Fee and other charges. It does not include any costs associated with buying shares in the Company or the cost of buying and selling stocks within the Company. The Ongoing Charges figure can help you compare the annual operating expenses of different Companies. D With performance fee element maximum annual management fee is capped at 0.9% of adjusted gross assets in any one year. E Calculated using the Company’s historic net dividends and month end share price. F The ‘Active Share’ percentage is a measure used to describe what proportion of the Company's holdings differ from the benchmark index holdings.
The risks outlined overleaf relating to gearing and smaller companies are particularly relevant to this trust but should be read in conjunction with all warnings and comments given. Important information overleaf
DNDL GB00B1GCL258 B1GCL25 Cantor Fitzgerald Europe SETSmm
Receive the factsheet by email as soon as it is available by registering at www.invtrusts.co.uk/ITemail www.dunedinsmaller.co.uk PAGE 17 OF 56
Investment Trust
Dunedin Smaller Companies Investment Trust PLC
Important information Risk factors you should consider prior to investing: • The value of investments and the income from them can fall and investors may get back less than the amount invested. • Past performance is not a guide to future results. • Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years. • The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that any movement in the value of the company's assets will result in a magnified movement in the NAV. • The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult to realise investments and may lead to volatility in the market price of the Company's shares. • The Company may charge expenses to capital which may erode the capital value of the investment. • The Company invests in the securities of smaller companies which are likely to carry a higher degree of risk than larger companies. • There is no guarantee that the market price of the Company's shares will fully reflect their underlying Net Asset Value. • As with all stock exchange investments the value of the Company's shares purchased will immediately fall by the difference between the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen. • In the event that certain performance criteria are met the Company will pay its investment manager an additional management fee. Details of the criteria to be met and the amount of any payment are given in the Company's annual report. • Specialist funds which invest in small markets or sectors of industry are likely to be more volatile than more diversified trusts. • Yields are estimated figures and may fluctuate, there are no guarantees that future dividends will match or exceed historic dividends and certain investors may be subject to further tax on dividends. Other important information: Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments. FTSE International Limited (‘FTSE’) © FTSE 2016. ‘FTSE®’ is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. RAFI® is a registered trademark of Research Affiliates, LLC. All rights in the FTSE indices and/ or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent. PAGE 18 OF 56
Investment Company
Aberdeen Asian Income Fund Limited Performance Data and Analytics to 31 August 2016
Investment objective
Morningstar Analyst RatingTM
To provide investors with a total return primarily through investing in Asian Pacific securities, including those with an above average yield. Within its overall investment objective, the Company aims to grow its dividends over time.
Benchmark
Morningstar Analyst Rating™ Morningstar analysts assign the ratings globally on a five-tier scale with three positive ratings of Gold, Silver and Bronze. B
The Company’s portfolio is constructed without reference to the composition of any stock market index or benchmark. It is likely, therefore, that there will be periods when its performance will be quite unlike that of any index or benchmark and there can be no assurance that such divergence will be wholly or even primarily to the Company’s advantage. The Company and Manager measure its performance against the MSCI AC Asia Pacific ex Japan Index (in sterling terms).
Cumulative performance (%) as at 31/08/16
3 months
6 months
1 year
3 years
5 years
Share Price
195.0p
1.6
21.8
30.3
27.4
10.0
38.5
NAVA
208.2p
1.4
20.4
25.0
30.6
17.0
54.0
3.5
22.5
28.7
33.5
32.6
47.7
31/08/16
31/08/15
31/08/14
31/08/13
31/08/12
Discrete performance (%) Year ending:
Morningstar RatingTM for Funds Morningstar rates funds from one to five stars based on how well they’ve performed (after adjusting for risk and accounting for all sales charges) in comparison to similar funds. B
Ten largest holdings
1 month
MSCI AC Asia Pacific ex Japan
Morningstar RatingTM
Share Price
27.4
(18.6)
6.1
3.3
21.9
NAVA
30.6
(15.9)
6.5
9.6
20.1
MSCI AC Asia Pacific ex Japan
33.5
(12.1)
13.0
10.2
1.1
Total return; NAV to NAV, net income reinvested, GBP. Share price total return is on a mid-to-mid basis. Dividend calculations are to reinvest as at the ex-dividend date. NAV returns based on NAVs with debt valued at fair value. Source: Aberdeen Asset Managers Limited, Lipper and Morningstar. Past performance is not a guide to future results.
Fund managers’ report Market review Asian equity markets ended broadly higher amid subdued trading in August, as the prospect of tighter US monetary policy heightened investor caution. Despite conflicting domestic economic data, Federal Reserve chair Janet Yellen noted that the case for an increase in US rates had strengthened. Portfolio review In earnings news, Standard Chartered returned to profitability, benefiting from reduced commodity exposure, better cost controls and lower impairments. HSBC felt the impact of loan impairments in Brazil, but the lender declared a partial return of capital from proceeds after selling its Brazilian business and the credit-card operations of its US subsidiary. Elsewhere, China Mobile exceeded expectations, given higher average revenue per user and growth in service revenues. SingTel had another good quarter, driven partly by contributions from its regional associates. In line with its strategy of increasing its exposure to growth markets, SingTel is raising its effective interests in Thailand’s Advanced Info Services and India’s Bharti Airtel to 21% and 31.8%, respectively, through a S$2.47 billion purchase from local state investment firm Temasek. The acquisitions are well-supported by SingTel’s balance sheet and cash flows, so there will be no impact on its dividend policy or credit ratings.
Venture Corporation SingTel Oversea-Chinese Banking Corp. HSBC Taiwan Mobile Jardine Cycle & Carriage Taiwan Semiconductor Manufacturing China Mobile Heineken Malaysia Spark New Zealand
Country Singapore Singapore Singapore Hong Kong Taiwan Singapore
% 3.9 3.6 3.4 3.2 3.1 3.1
Taiwan Hong Kong Malaysia New Zealand
3.0 3.0 2.8 2.7
Total
31.8
Country allocation (%)
Singapore Australia Thailand Hong Kong Malaysia Taiwan China Japan New Zealand Indonesia Korea United Kingdom India Sri Lanka Philippines Cash Total
Trust 25.4 18.2 11.3 10.9 7.1 6.1 5.1 4.8 2.7 2.5 1.7 1.2 1.0 0.9 – 1.1 100.0
Regional Index 3.6 20.4 2.2 9.6 2.6 11.1 24.6 – 0.6 2.5 13.8 – 7.7 – 1.3 – 100.0
Month’s market change (0.6) (1.3) 5.1 2.5 3.7 3.4 8.8 – 3.5 2.9 4.6 – 2.5 – (0.3) –
Month’s market change represents the individual country returns calculated using the MSCI Index series (£). Market change is Total Return in GBP. Index may not add up to 100 due to rounding. Source: Aberdeen Asset Managers Limited and MSCI.
Total number of investments
59
All sources (unless indicated): Aberdeen Asset Managers Limited 31 August 2016.
Fund managers' report continues overleaf Including current year revenue. B Copyright © 2016 Morningstar UK Ltd. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not a guide to future results. A
Private investors 0500 00 00 40 Institutional investors Kenneth Harper +44 (0)131 528 4224 or Andrew Leigh +44 (0)20 7463 6312 PAGE 19 OF 56
Investment Company
Aberdeen Asian Income Fund Limited Performance Data and Analytics to 31 August 2016
Fund managers’ report - continued In portfolio activity, we subscribed to the initial public offering (IPO) of Viva Energy REIT which owns a unique portfolio of assets (425 Shell and Coles Express-branded petrol service stations in Australia). The IPO was heavily oversubscribed and we subsequently exited our minimal allocation at a higher price. We also trimmed DFCC bonds on relative strength. Outlook Asia, along with the broader emerging markets, appear to be back in favour amid investors’ continued search for yield and the perception that the worst may be over. But this could change. Of increasing concern is the possibility of a tighter US monetary policy. Hawkish signals from Fed officials have raised the chances of a rate hike, although mixed economic data continued to baffle investors. Our Asian Fixed Income team expects one rate hike at the year-end. Add to that the uncertainty of the US presidential election and its implications on the region, and sluggish global growth. Waning global demand has already undermined regional exports; volumes are expected to remain lacklustre as the subdued global trade environment persists. With these headwinds clouding the global backdrop, investor risk appetite may shift yet again.
Fund risk statistics 3 Years Annualised Standard Deviation of Fund Beta Sharpe Ratio Annualised Tracking Error Annualised Information Ratio R-Squared
12.86 0.83 0.30 4.96 (0.65) 0.89
5 Years 12.28 0.71 0.72 6.94 0.46 0.81
Source: Aberdeen Asset Management, BPSS & Thomson Reuters Datastream. Basis: Total Return, Gross of Fees, GBP. Please note that risk analytics figures are calculated on gross returns whereas the performance figures are based on net asset value(NAV) returns. In addition, the risk analytics figures lag the performance figures by a month.
Key information Calendar Year end Accounts published Annual General Meeting Dividend paid Launch date Fund manager Ongoing chargesC Annual management feeD Premium/(Discount) YieldE Net gearingF Active shareG
31 December April May February, May, August, November December 2005 Asian Equities Team 1.25% 0.85% (6.3)% 4.4% 8.6% 85.1%
AIFMD Leverage Limits Gross Notional Commitment
2.5x 2x
Assets/Debt (£m) Equities Fixed Income Debt Cash
402.9 22.3 39.8 6.1
Capital structure Ordinary shares Treasury Shares
187,908,389 7,025,000
Allocation of management fees and finance costs Capital Revenue
60% 40%
Borrowing policy Up to 25% of net assets (measured at the time any borrowings are drawn down).
Trading details Expressed as a percentage of average daily net assets for the year ended 31 December 2015. The Ongoing Charges Figure (OCF) is the overall cost shown as a percentage of the value of the assets of the Company. It is made up of the Annual Management Fee and other charges. It does not include any costs associated with buying shares in the Company or the cost of buying and selling stocks within the Company. The Ongoing Charges figure can help you compare the annual operating expenses of different Companies. D With effect from 1 June 2016 the annual management fee was reduced from 1.0% to 0.85% of net assets. E Calculated using the Company’s historic net dividends and month end share price. F Net gearing is expressed as a percentage of gross assets, which includes current year revenue, less cash/cash equivalents divided by shareholders' funds. G The ‘Active Share’ percentage is a measure used to describe what proportion of the Company's holdings differ from the benchmark index holdings. C
The risks outlined overleaf relating to gearing, emerging markets, exchange rate movements and warrants are particularly relevant to this investment company but should be read in conjunction with all warnings and comments given. Important information overleaf
Reuters/Epic/Bloomberg code ISIN code Sedol code Stockbrokers Market makers
AAIF GB00B0P6J834 B0P6J83 Cantor Fitzgerald Europe SETSmm
Receive the factsheet by email as soon as it is available by registering at www.invtrusts.co.uk/ITemail www.asian-income.co.uk PAGE 20 OF 56
Investment Company
Aberdeen Asian Income Fund Limited
Important information Risk factors you should consider prior to investing: • The value of investments and the income from them can fall and investors may get back less than the amount invested. • Past performance is not a guide to future results. • Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years. • The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that any movement in the value of the company's assets will result in a magnified movement in the NAV. • The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult to realise investments and may lead to volatility in the market price of the Company's shares. • The Company may charge expenses to capital which may erode the capital value of the investment. • Movements in exchange rates will impact on both the level of income received and the capital value of your investment. • There is no guarantee that the market price of the Company's shares will fully reflect their underlying Net Asset Value. • As with all stock exchange investments the value of the Company's shares purchased will immediately fall by the difference between the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen. • The Company invests in emerging markets which tend to be more volatile than mature markets and the value of your investment could move sharply up or down. • Yields are estimated figures and may fluctuate, there are no guarantees that future dividends will match or exceed historic dividends and certain investors may be subject to further tax on dividends. Other important information: Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419. An investment company should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis, should not be taken as an indication or guarantee of any future performance analysis forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI” Parties) expressly disclaims all warranties (including without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages (www.msci.com). PAGE 21 OF 56
Investment Trust
Aberdeen Asian Smaller Companies Investment Trust PLC Performance Data and Analytics to 31 August 2016
Investment objective The objective of Aberdeen Asian Smaller Companies Investment Trust PLC is to maximise total return to shareholders over the long term from a portfolio of smaller quoted companies (with a market capitalisation of up to approximately US$1 billion at the time of investment) in the economies of Asia and Australasia, outside Japan.
Comparative benchmark
Morningstar Analyst RatingTM
Morningstar Analyst Rating™ Morningstar analysts assign the ratings globally on a five-tier scale with three positive ratings of Gold, Silver and Bronze. B
There has not always been a meaningful smaller companies index against which to compare the performance of the Company. Accordingly, the Manager utilises two general regional indices, the MSCI AC Asia Pacific ex Japan (currency adjusted) and the MSCI AC Asia Pacific ex Japan SmallCap (currency adjusted), as well as peer group comparisons for Board reporting. It is likely that performance will diverge, possibly quite dramatically in either direction, from these or any other indices.
Morningstar RatingTM
Cumulative performance (%)
Bank OCBC LPI Capital Dah Sing Financial Hana Microelectronics AEON Co Ramco Cements Multi Bintang Yoma Strategic CEBU Jollibee Foods Total
as at 31/08/16
1 month
3 months
6 months
1 year
3 years
954.8p
3.3
20.4
30.1
31.8
16.3
52.3
1093.1p
4.8
22.2
27.2
35.2
25.6
78.7
MSCI AC Asia Pacific ex Japan
3.5
22.5
28.7
33.5
32.6
47.7
MSCI AC Asia Pacific ex Japan SmallCap
2.9
20.0
24.6
33.7
31.8
35.7
Share Price Diluted NAVA
5 years
Discrete performance (%) Year ending:
31/08/16
31/08/15
31/08/14
31/08/13
31/08/12
Share Price
31.8
(21.4)
12.3
9.6
19.5
Diluted NAVA
35.2
(15.4)
9.9
19.9
18.7
MSCI AC Asia Pacific ex Japan
33.5
(12.1)
13.0
10.2
1.1
MSCI AC Asia Pacific ex Japan SmallCap
33.7
(12.1)
12.1
10.9
(7.1)
Total return; NAV to NAV, net income reinvested, GBP. Share price total return is on a mid-to-mid basis. Dividend calculations are to reinvest as at the ex-dividend date. NAV returns based on NAVs with debt valued at fair value. Source: Aberdeen Asset Managers Limited, Lipper and Morningstar. Past performance is not a guide to future results.
Fund managers’ report Market review Asian small-cap equities posted slim gains in August, as the prospect of tighter US monetary policy heightened investor caution. Despite conflicting domestic economic data, Federal Reserve chair Janet Yellen noted that the case for an increase in US rates had strengthened. Portfolio review The results of our consumer holdings were mixed. Australia’s ARB posted earnings growth despite lower demand and a softer operating environment. Giordano announced marginally higher profits and maintained its dividend payout. In contrast, Hongkong & Shanghai Hotels felt the impact of declining tourist arrivals; dividends were cut as a result. In the financial segment, Wheelock Properties’ profits doubled as the Singapore company sold more high-end properties, albeit at lower prices. However, Bukit Sembawang Estates booked lower profits on its development projects. CDL Hospitality Trust’s payout contracted slightly due to weakness in its Singapore and Maldives markets. Elsewhere, Tasek, however, disappointed on the back of intense price competition.
Morningstar RatingTM for Funds Morningstar rates funds from one to five stars based on how well they’ve performed (after adjusting for risk and accounting for all sales charges) in comparison to similar funds. B
Ten largest equity holdings Country Indonesia Malaysia Hong Kong Thailand Malaysia India Indonesia Singapore Philippines Philippines
% 3.9 3.2 2.9 2.7 2.7 2.6 2.6 2.4 2.4 2.3 27.7
Country allocation (%)
Malaysia Hong Kong Thailand India Singapore Indonesia Philippines Sri Lanka Australia New Zealand Denmark United Kingdom China Korea Pakistan Taiwan Cash Total
Trust 17.4 15.4 12.8 11.0 10.9 8.4 7.3 3.4 3.0 2.5 1.6 1.4 0.7 0.4 0.3 – 3.5 100.0
Regional Index 2.6 9.6 2.2 7.7 3.6 2.5 1.3 – 20.4 0.6 – – 24.6 13.8 – 11.1 – 100.0
Month’s market change 3.7 2.5 5.1 2.5 (0.6) 2.9 (0.3) – (1.3) 3.5 – – 8.8 4.6 – 3.4 –
Month’s market change represents the individual country returns calculated using the MSCI Index series (£). Market change is Total Return in GBP. Index may not add up to 100 due to rounding. Source: Aberdeen Asset Managers Limited and MSCI.
Total number of investments
78
All sources (unless indicated): Aberdeen Asset Managers Limited 31 August 2016.
Fund managers' report continues overleaf Including current year revenue. B Copyright © 2016 Morningstar UK Ltd. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not a guide to future results. A
Private investors 0500 00 00 40 Institutional investors Kenneth Harper +44 (0)131 528 4224 or Andrew Leigh +44 (0)20 7463 6312 PAGE 22 OF 56
Investment Trust
Aberdeen Asian Smaller Companies Investment Trust PLC Performance Data and Analytics to 31 August 2016
Fund managers’ report - continued We initiated a position in Indonesia-based Ultrajaya Milk, the market leader in the underpenetrated domestic milk market with good margins and a net cash balance sheet. Against this, we exited Pos Malaysia on outlook concerns, given that cost inflation is weighing on its profits and the company is using its balance sheet to make acquisitions at a challenging time. We also took some profits from NISP and Tisco Financial following relative price strength. Outlook Asia, along with the broader emerging markets, appear to be back in favour amid investors’ continued search for yield and the perception that the worst may be over. But this could change. Of increasing concern is the possibility of a tighter US monetary policy. Hawkish signals from Fed officials have raised the chances of a rate hike, although mixed economic data continued to baffle investors. Our Asian Fixed Income team expects one rate hike at the year-end. Add to that the uncertainty of the US presidential election and its implications on the region, and sluggish global growth. Waning global demand has already undermined regional exports; volumes are expected to remain lacklustre as the subdued global trade environment persists. With these headwinds clouding the global backdrop, investor risk appetite may shift yet again.
Fund risk statistics Annualised Standard Deviation of Fund Beta Sharpe Ratio Annualised Tracking Error Annualised Information Ratio R-Squared
3 Years
5 Years
13.00 0.76 0.30 7.56 (0.42) 0.73
13.11 0.65 0.84 9.92 0.52 0.59
Source: Aberdeen Asset Management, BPSS & Thomson Reuters Datastream. Basis: Total Return, Gross of Fees, GBP. Please note that risk analytics figures are calculated on gross returns whereas the performance figures are based on net asset value (NAV) returns. In addition, the risk analytics figures lag the performance figures by a month.
Key information Calendar Year end Accounts published Annual General Meeting Dividend paid Launch date Fund manager Ongoing chargesC Annual management fee Premium/(Discount) with debt at fair value YieldD Net gearing with debt at parE Active shareF
31 July October December December October 1995 Asian Equities Team 1.46% 1.2% (12.7)% 1.6% 7.4% 98.8%
AIFMD Leverage Limits Gross Notional Commitment
2.5x 2x
Assets/Debt (£m) Gross assets 446.5 Debt (CULS plus bank loan) at nominal value 44.9 Cash 15.1
Capital structure Ordinary shares Treasury shares Convertible Unsecured Loan Stock 2019 (CULS) at nominal value
35,736,834 3,440,624 £33,040,814
Allocation of management fees and finance costs Capital Revenue
0% 100%
Trading details Expressed as a percentage of average daily net assets for the year ended 31 July 2015. The Ongoing Charges Figure (OCF) is the overall cost shown as a percentage of the value of the assets of the Company. It is made up of the Annual Management Fee and other charges. It does not include any costs associated with buying shares in the Company or the cost of buying and selling stocks within the Company. The Ongoing Charges figure can help you compare the annual operating expenses of different Companies. D Calculated using the Company’s historic net dividends and month end share price. E Net gearing is expressed as a percentage of gross assets, which includes current year revenue, less cash/cash equivalents divided by shareholders' funds. F The ‘Active Share’ percentage is a measure used to describe what proportion of the Company's holdings differ from the benchmark index holdings. C
The risks outlined overleaf relating to gearing, emerging markets, small companies and exchange rate movements are particularly relevant to this trust but should be read in conjunction with all warnings and comments given. Important information overleaf
Reuters/Epic/Bloomberg code ISIN code Sedol code Stockbrokers Market makers
AAS GB0000100767 0010076 Panmure Gordon SETSmm
Receive the factsheet by email as soon as it is available by registering at www.invtrusts.co.uk/ITemail www.asian-smaller.co.uk PAGE 23 OF 56
Investment Trust
Aberdeen Asian Smaller Companies Investment Trust PLC
Important information Risk factors you should consider prior to investing: • The value of investments and the income from them can fall and investors may get back less than the amount invested. • Past performance is not a guide to future results. • Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years. • The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that any movement in the value of the company's assets will result in a magnified movement in the NAV. • The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult to realise investments and may lead to volatility in the market price of the Company's shares. • The Company may charge expenses to capital which may erode the capital value of the investment. • The Company invests in the securities of smaller companies which are likely to carry a higher degree of risk than larger companies. • Movements in exchange rates will impact on both the level of income received and the capital value of your investment. • There is no guarantee that the market price of the Company's shares will fully reflect their underlying Net Asset Value. • As with all stock exchange investments the value of the Company's shares purchased will immediately fall by the difference between the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen. • The Company invests in emerging markets which tend to be more volatile than mature markets and the value of your investment could move sharply up or down. • Specialist funds which invest in small markets or sectors of industry are likely to be more volatile than more diversified trusts. • Yields are estimated figures and may fluctuate, there are no guarantees that future dividends will match or exceed historic dividends and certain investors may be subject to further tax on dividends. Other important information: Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis, should not be taken as an indication or guarantee of any future performance analysis forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI” Parties) expressly disclaims all warranties (including without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages (www.msci.com). PAGE 24 OF 56
Investment Trust
Aberdeen New Dawn Investment Trust PLC Performance Data and Analytics to 31 August 2016
Investment objective The objective of Aberdeen New Dawn Investment Trust PLC is to provide shareholders with a high level of capital growth through equity investment in the Asia Pacific countries excluding Japan.
Morningstar Analyst RatingTM
Morningstar Analyst Rating™ Morningstar analysts assign the ratings globally on a five-tier scale with three positive ratings of Gold, Silver and Bronze. B
Benchmark MSCI AC Asia Pacific ex Japan. This benchmark includes Australia and New Zealand.
Morningstar RatingTM
Cumulative performance (%) as at 31/08/16
1 month
3 months
6 months
1 year
3 years
Share Price
183.0p
2.5
20.9
28.5
22.4
9.4
23.8
NAVA
212.4p
2.6
20.9
30.4
25.7
19.8
34.6
3.5
22.5
28.7
33.5
32.6
47.7
MSCI AC Asia Pacific ex Japan
5 years
Discrete performance (%) Year ending:
Morningstar RatingTM for Funds Morningstar rates funds from one to five stars based on how well they’ve performed (after adjusting for risk and accounting for all sales charges) in comparison to similar funds. B
31/08/16
31/08/15
31/08/14
31/08/13
31/08/12
Share Price
22.4
(16.1)
6.6
14.4
(1.1)
NAVA
25.7
(13.5)
10.2
7.2
4.9
MSCI AC Asia Pacific ex Japan
33.5
(12.1)
13.0
10.2
1.1
Total return; NAV to NAV, net income reinvested, GBP. Share price total return is on a mid-to-mid basis. Dividend calculations are to reinvest as at the ex-dividend date. NAV returns based on NAVs with debt valued at fair value. Source: Aberdeen Asset Managers Limited, Lipper and Morningstar. Past performance is not a guide to future results.
Fund managers’ report Market review Asian equity markets ended broadly higher amid subdued trading in August, as the prospect of tighter US monetary policy heightened investor caution. Despite conflicting domestic economic data, Federal Reserve chair Janet Yellen noted that the case for an increase in US rates had strengthened. Portfolio review In earnings news, Standard Chartered returned to profitability, benefiting from reduced commodity exposure, better cost controls and lower impairments. HSBC felt the impact of loan impairments in Brazil, but the lender declared a partial return of capital from proceeds after selling its Brazilian business and the credit-card operations of its US subsidiary. Elsewhere, China Mobile exceeded expectations, given higher average revenue per user and growth in service revenues. SingTel had another good quarter, driven partly by contributions from its regional associates. In line with its strategy of increasing its exposure to growth markets, SingTel is raising its effective interests in Thailand’s Advanced Info Services and India’s Bharti Airtel to 21% and 31.8%, respectively, through a S$2.47 billion purchase from local state investment firm Temasek. The acquisitions are well-supported by SingTel’s balance sheet and cash flows, so there will be no impact on its dividend policy or credit ratings. In portfolio activity, we took profits from ST Engineering after its strong run, and used the proceeds to add to Keppel.
Ten largest equity holdings Aberdeen Global-Indian EquityC Samsung Electronics Pref Jardine Strategic Oversea-Chinese Banking Corp. AIA Ayala Land Taiwan Semiconductor Siam Cement China Mobile HSBC Total
Country India Korea Hong Kong Singapore Hong Kong Philippines Taiwan Thailand Hong Kong Hong Kong
Country allocation (%)
Hong Kong Singapore India Australia Korea Taiwan China United Kingdom Philippines Thailand Indonesia Sri Lanka Malaysia Vietnam New Zealand Cash Total
Trust 21.0 18.5 12.6 9.5 8.2 5.6 5.2 4.3 3.7 3.1 2.7 2.3 1.9 0.6 – 0.8 100.0
Regional Index 9.6 3.6 7.7 20.4 13.8 11.1 24.6 – 1.3 2.2 2.5 – 2.6 – 0.6 – 100.0
Month’s market change 2.5 (0.6) 2.5 (1.3) 4.6 3.4 8.8 – (0.3) 5.1 2.9 – 3.7 – 3.5 –
Month’s market change represents the individual country total return calculated using the MSCI Index series Capital GBP. Figures may not add up to 100 due to rounding. Source: Aberdeen Asset Managers Limited and MSCI.
Total number of investments
Fund managers' report continues overleaf Including current year revenue. Copyright © 2016 Morningstar UK Ltd. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not a guide to future results. C Excluded for the purposes of calculating the investment management fee. A B
% 10.7 5.5 5.0 4.2 3.8 3.7 3.7 3.1 3.0 2.9 45.6
54
All sources (unless indicated): Aberdeen Asset Managers Limited 31 August 2016.
Private investors 0500 00 00 40 Institutional investors Kenneth Harper +44 (0)131 528 4224 or Andrew Leigh +44 (0)20 7463 6312 PAGE 25 OF 56
Investment Trust
Aberdeen New Dawn Investment Trust PLC Performance Data and Analytics to 31 August 2016
Fund managers’ report - continued
Outlook Asia, along with the broader emerging markets, appear to be back in favour amid investors’ continued search for yield and the perception that the worst may be over. But this could change. Of increasing concern is the possibility of a tighter US monetary policy. Hawkish signals from Fed officials have raised the chances of a rate hike, although mixed economic data continued to baffle investors. Add to that the uncertainty of the US presidential election and its implications on the region, and sluggish global growth. Waning global demand has already undermined regional exports; volumes are expected to remain lacklustre as the subdued global trade environment persists. With these headwinds clouding the global backdrop, investor risk appetite may shift yet again.
Fund risk statistics 3 Years Annualised Standard Deviation of Fund Beta Sharpe Ratio Annualised Tracking Error Annualised Information Ratio R-Squared
14.19 0.91 0.27 4.88 (0.63) 0.89
5 Years 13.98 0.85 0.35 5.04 (0.08) 0.90
Source: Aberdeen Asset Management, BPSS & Thomson Reuters Datastream. Basis: Total Return, Gross of Fees, GBP. Please note that risk analytics figures are calculated on gross returns whereas the performance figures are based on net asset value(NAV) returns. In addition, the risk analytics figures lag the performance figures by a month.
Key information Calendar Year end Accounts published Annual General Meeting Dividend paid Launch date Fund manager Ongoing chargesD Annual management feeE Premium/(Discount) YieldF Net gearingG Active shareH
30 April July August January, September May 1989 Asian Equities Team 1.08% 0.85% of net assets (13.9)% 2.1% 10.4% 77.4%
AIFMD Leverage Limits Gross Notional Commitment
2.5x 2x
Assets/Debt (£m) Gross assets Debt Cash
282.6 29.3 3.0
Capital structure Ordinary shares Treasury shares
119,159,010 7,776,655
Allocation of management fees and finance costs (%) Capital Revenue
50% 50%
Trading details
Expressed as a percentage of average daily net assets for the year ended 30 April 2016. The Ongoing Charges Figure (OCF) is the overall cost shown as a percentage of the value of the assets of the Company. It is made up of the Annual Management Fee and other charges. It does not include any costs associated with buying shares in the Company or the cost of buying and selling stocks within the Company. The Ongoing Charges figure can help you compare the annual operating expenses of different Companies. E With effect from 1 July 2016. Previously 1.0% of net assets. F Calculated using the Company’s historic net dividends and month end share price. G Net gearing is expressed as a percentage of gross assets, which includes current year revenue, less cash/cash equivalents divided by shareholders' funds. H The ‘Active Share’ percentage is a measure used to describe what proportion of the Company's holdings differ from the benchmark index holdings. D
The risks outlined overleaf relating to gearing, emerging markets and exchange rate movements are particularly relevant to this trust but should be read in conjunction with all warnings and comments given. Important information overleaf
Reuters/Epic/Bloomberg code ISIN code Sedol code Stockbrokers Market makers
ABD GB00BBM56V29 BBM56V2 Cantor Fitzgerald Europe SETSmm
Receive the factsheet by email as soon as it is available by registering at www.invtrusts.co.uk/ITemail www.newdawn-trust.co.uk PAGE 26 OF 56
Investment Trust
Aberdeen New Dawn Investment Trust PLC
Important information Risk factors you should consider prior to investing: • The value of investments and the income from them can fall and investors may get back less than the amount invested. • Past performance is not a guide to future results. • Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years. • The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that any movement in the value of the company's assets will result in a magnified movement in the NAV. • The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult to realise investments and may lead to volatility in the market price of the Company's shares. • The Company may charge expenses to capital which may erode the capital value of the investment. • Movements in exchange rates will impact on both the level of income received and the capital value of your investment. • There is no guarantee that the market price of the Company's shares will fully reflect their underlying Net Asset Value. • As with all stock exchange investments the value of the Company's shares purchased will immediately fall by the difference between the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen. • The Company invests in emerging markets which tend to be more volatile than mature markets and the value of your investment could move sharply up or down. • Yields are estimated figures and may fluctuate, there are no guarantees that future dividends will match or exceed historic dividends and certain investors may be subject to further tax on dividends. Other important information: Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis, should not be taken as an indication or guarantee of any future performance analysis forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI” Parties) expressly disclaims all warranties (including without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages (www.msci.com). PAGE 27 OF 56
Investment Trust
Edinburgh Dragon Trust plc Performance Data and Analytics to 31 August 2016
Investment objective To achieve long term capital growth through investment in the Far East. The company’s benchmark is the MSCI AC Asia ex Japan Index. Investments are made mainly in stock markets in the region, with the exception of Japan and Australasia, principally in large companies. When appropriate, the trust will utilise gearing to maximise long term returns.
Benchmark MSCI AC Asia ex Japan Index. This benchmark excludes Japan, Australia, New Zealand and Sri Lanka.
Cumulative performance (%) as at 31/08/16
1 month
3 months
6 months
1 year
3 years
5 years
Share Price
302.0p
2.9
23.8
33.0
29.7
22.0
38.3
NAV
343.5p
3.8
21.7
30.8
30.0
25.7
43.2
4.8
23.9
29.0
33.0
36.9
50.3
31/08/14
31/08/13
31/08/12
A
MSCI AC Asia ex Japan
Discrete performance (%) Year ending:
31/08/16
31/08/15
Share Price
29.7
(12.8)
7.9
8.3
4.7
NAVA
30.0
(12.4)
10.4
6.8
6.7
MSCI AC Asia ex Japan
33.0
(9.1)
13.2
10.1
(0.3)
Total return; NAV to NAV, net income reinvested, GBP. Share price total return is on a mid-to-mid basis. Dividend calculations are to reinvest as at the ex-dividend date. NAV returns based on NAVs with debt valued at fair value. Source: Aberdeen Asset Managers Limited, Lipper and Morningstar. Past performance is not a guide to future results.
Morningstar Analyst RatingTM
Morningstar Analyst Rating™ Morningstar analysts assign the ratings globally on a five-tier scale with three positive ratings of Gold, Silver and Bronze. B
Morningstar RatingTM Morningstar RatingTM for Funds Morningstar rates funds from one to five stars based on how well they’ve performed (after adjusting for risk and accounting for all sales charges) in comparison to similar funds. B
Ten largest equity holdings Samsung Electronics Pref. Jardine Strategic Taiwan Semiconductor Housing Development Finance Oversea-Chinese Banking Corp. AIA SingTel Siam Cement China Mobile United Overseas Bank Total
Country Korea Hong Kong Taiwan India Singapore Hong Kong Singapore Thailand Hong Kong Singapore
% 6.0 4.4 4.1 4.0 3.9 3.7 3.2 3.1 2.9 2.9 38.2
Country allocation (%)
Fund managers’ report Market review Asian equity markets ended broadly higher amid subdued trading in August, as the prospect of tighter US monetary policy heightened investor caution. Despite conflicting domestic economic data, Federal Reserve chair Janet Yellen noted that the case for an increase in US rates had strengthened. Portfolio review In earnings news, Standard Chartered returned to profitability, benefiting from reduced commodity exposure, better cost controls and lower impairments. HSBC felt the impact of loan impairments in Brazil, but the lender declared a partial return of capital from proceeds after selling its Brazilian business and the credit-card operations of its US subsidiary. Elsewhere, China Mobile exceeded expectations, given higher average revenue per user and growth in service revenues. SingTel had another good quarter, driven partly by contributions from its regional associates. In line with its strategy of increasing its exposure to growth markets, SingTel is raising its effective interests in Thailand’s Advanced Info Services and India’s Bharti Airtel to 21% and 31.8%, respectively, through a S$2.47 billion purchase from local state investment firm Temasek. The acquisitions are well-supported by SingTel’s balance sheet and cash flows, so there will be no impact on its dividend policy or credit ratings.
Hong Kong Singapore India Korea Taiwan China Philippines Indonesia Malaysia Thailand Sri Lanka United Kingdom Vietnam Cash Total
Trust 22.0 18.1 16.5 10.0 6.5 5.1 4.3 3.9 3.7 3.1 2.4 2.1 0.6 1.7 100.0
Month’s Regional market Index changeC 12.2 2.5 4.5 (0.6) 9.8 2.5 17.5 4.6 14.1 3.4 31.1 8.8 1.7 (0.3) 3.2 2.9 3.3 3.7 2.7 5.1 – – – – – – – – 100.0
Source: Aberdeen Asset Managers Limited and MSCI. Figures may not add up to 100 due to rounding.
Total number of investments
62
In portfolio activity, we initiated a position in HDFC bank, an associate of HDFC, which we already own in the fund. One of India’s leading private sector banks, it has a good track record of delivering above-industry returns, strong management team and solid capital Fund managers' report continues overleaf Including current year revenue. Copyright © 2016 Morningstar UK Ltd. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not a guide to future results. C Represents the individual country returns calculated using the MSCI Index Series (£). Market change is total return in GBP. A B
All sources (unless indicated): Aberdeen Asset Managers Limited 31 August 2016.
Private investors 0500 00 00 40 Institutional investors Kenneth Harper +44 (0)131 528 4224 or Andrew Leigh +44 (0)20 7463 6312 PAGE 28 OF 56
Investment Trust
Edinburgh Dragon Trust plc Performance Data and Analytics to 31 August 2016
Fund managers’ report - continued base. HDFC Bank is well positioned to benefit from its expansion in the suburban and rural areas, given that India’s banking penetration is still low. We also added to Keppel, Grasim and ITC on relative share price weakness. Against that, we trimmed ST Engineering on share price strength. Outlook Asia, along with the broader emerging markets, appear to be back in favour amid investors’ continued search for yield and the perception that the worst may be over. But this could change. Of increasing concern is the possibility of a tighter US monetary policy. Hawkish signals from Fed officials have raised the chances of a rate hike, although mixed economic data continued to baffle investors. Add to that the uncertainty of the US presidential election and its implications on the region, and sluggish global growth. Waning global demand has already undermined regional exports; volumes are expected to remain lacklustre as the subdued global trade environment persists. With these headwinds clouding the global backdrop, investor risk appetite may shift yet again.
Fund risk statistics Annualised Standard Deviation of Fund Beta Sharpe Ratio Annualised Tracking Error Annualised Information Ratio R-Squared
3 Years 14.50 0.92 0.34 5.11 (0.48) 0.88
5 Years 13.98 0.85 0.44 5.27 0.20 0.89
Source: Aberdeen Asset Management, BPSS & Thomson Reuters Datastream. Basis: Total Return, Gross of Fees, GBP. Please note that risk analytics figures are calculated on gross returns whereas the performance figures are based on net asset value(NAV) returns. In addition, the risk analytics figures lag the performance figures by a month.
Key information Calendar Year end 31 August Accounts published November Annual General Meeting December Dividend paid December Launch date 1987 Fund manager Adrian Lim Ongoing chargesE 1.15% 0.85% on net assets Annual management fee Premium/(Discount) with debt at fair value (12.1)% YieldF 1.0% Net gearing with debt at parG 7.1% Active shareH 75.4%
AIFMD Leverage Limits Gross Notional Commitment
2.5x 2x
Assets/Debt (£m) GrossI Debt (CULS) at nominal value Cash
722.9 59.8 12.8
Capital structure Ordinary shares Treasury shares 3.5% Convertible Unsecured Loan Stock 2018 (CULS) at nominal value
190,509,202 5,521,300 £59,778,788
Allocation of management fees and finance costs Revenue
100%
Trading details Reuters/Epic/Bloomberg code ISIN code Sedol code Stockbrokers Expressed as a percentage of average daily net assets for the year ended 31 August 2015. The Ongoing Charges Figure (OCF) is the overall cost shown as a percentage of the value of the assets of the Company. It is made up of the Annual Management Fee and other charges. It does not include any costs associated with buying shares in the Company or the cost of buying and selling stocks within the Company. The Ongoing Charges figure can help you compare the annual operating expenses of different Companies. F Calculated using the Company’s historic net dividends and month end share price. G Gearing is expressed as a percentage of gross assets, which includes current year revenue, divided by shareholders' funds. H The ‘Active Share’ percentage is a measure used to describe what proportion of the Company's holdings differ from the benchmark index holdings. I Includes current year revenue. E
The risks outlined overleaf relating to gearing, exchange rate movements and emerging markets are particularly relevant to this trust but should be read in conjunction with all warnings and comments made. Important information overleaf
Market makers
EFM GB0002945029 0294502 WINS Investment Trusts SETSmm
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Investment Trust
Edinburgh Dragon Trust plc
Important information Risk factors you should consider prior to investing: • The value of investments and the income from them can fall and investors may get back less than the amount invested. • Past performance is not a guide to future results. • Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years. • The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that any movement in the value of the company's assets will result in a magnified movement in the NAV. • The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult to realise investments and may lead to volatility in the market price of the Company's shares. • Movements in exchange rates will impact on both the level of income received and the capital value of your investment. • There is no guarantee that the market price of the Company's shares will fully reflect their underlying Net Asset Value. • As with all stock exchange investments the value of the Company's shares purchased will immediately fall by the difference between the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen. • The Company invests in emerging markets which tend to be more volatile than mature markets and the value of your investment could move sharply up or down. • Yields are estimated figures and may fluctuate, there are no guarantees that future dividends will match or exceed historic dividends and certain investors may be subject to further tax on dividends. Other important information: Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis, should not be taken as an indication or guarantee of any future performance analysis forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI” Parties) expressly disclaims all warranties (including without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages (www.msci.com). PAGE 30 OF 56
Investment Trust
Aberdeen New Thai Investment Trust PLC Performance Data and Analytics to 31 August 2016
Investment objective To provide a high level of long-term, above-average capital growth through investment in Thailand.
Morningstar Analyst RatingTM Morningstar Analyst Rating™ Morningstar analysts assign the ratings globally on a five-tier scale with three positive ratings of Gold, Silver and Bronze. B
Morningstar RatingTM
Benchmark Stock Exchange of Thailand Index (currency adjusted).
Morningstar RatingTM for Funds Morningstar rates funds from one to five stars based on how well they’ve performed (after adjusting for risk and accounting for all sales charges) in comparison to similar funds. B
Cumulative performance (%) as at 31/08/16
1 month
3 months
6 months
1 year
3 years
5 years
Ordinary share price
477.8p
3.4
24.6
22.1
36.5
36.6
87.4
NAV
566.4p
3.2
23.8
19.4
35.2
33.0
82.1
4.4
25.7
30.6
41.0
45.2
84.8
31/08/12
A
SET Index
Discrete performance (%) Year ending:
31/08/16
31/08/15
31/08/14
31/08/13
Ordinary share price
36.5
(16.0)
19.2
11.5
23.0
NAVA
35.2
(15.2)
16.1
14.5
19.5
SET Index
41.0
(12.2)
17.3
8.7
17.1
Total return; NAV to NAV, net income reinvested, GBP. Share price total return is on a mid-to-mid basis. Dividend calculations are to reinvest as at the ex-dividend date. NAV returns based on NAVs with debt valued at fair value. Source: Aberdeen Asset Managers Limited, Lipper and Morningstar. Past performance is not a guide to future results.
Fund managers’ report Market Review
Thai equities rose in August as investors celebrated the referendum result, in which the draft constitution was approved by a majority of voters. This should clear the way for a general election next year. Meanwhile, a series of bomb attacks hit some of Thailand’s most popular tourist spots. While the blasts could test the vital tourism industry, they did little to deter investors. The economy performed better than expected in the second quarter, with GDP up by 3.5% from a year ago, supported by government spending, tourism and private consumption. Meanwhile, consumer confidence rose in July for the first time this year, as droughts eased and agricultural prices rallied. Conversely, exports remained stubbornly sluggish, declining 4.4% year-on-year, on the back of lacklustre demand for agricultural and industrial goods.
Portfolio review
Central Pattana’s (CPN’s) net profits rose 14% year-on-year, thanks to new projects and effective cost management. CPN earmarked 60 billion baht over two years for five new malls, as well as renovations to existing complexes. Big C Supercenter’s profits edged up on resilient rental & service income and lower interest expenses. Bangkok Insurance’s earnings surged, underpinned by improved claims and lower operating expenses. Thai Reinsurance’s net profits were up by 76 million baht, despite a 228 million baht loss from reclassifying its investment in Thaire Life Assurance, which also enjoyed healthy growth in its bottom-line. However, Muang Thai Insurance’s net profits fell 26% year-on-year, largely due to a higher loss and expense ratio. Advanced Info Service’s (AIS) bottom line edged lower in the second quarter on weaker service revenues and a greater interest burden. Separately, Singtel is acquiring 21% stake in Intouch Holdings, effectively raising its stake in AIS from 23.3% to 31.8%. Elsewhere, Siam City Cement will acquire 65% of Holcim (Vietnam) from Lafarge Holcim for €479 million. Holcim (Vietnam) operates one integrated plant and four grinding plants with annual cement capacity of 6.3 million tonnes.
Ten largest equity holdings % 6.2 5.3 5.0 4.9 4.7 4.2 3.8 3.6 3.4 3.3 44.4
Siam Cement Big C Supercenter Kasikornbank Bangkok Insurance Siam Commercial Bank Advanced Information Home Product Center Aeon Thana Sinsap PTT Exploration & Production Hana Microelectronics Total
Sector allocation (%) Banking Energy & Utilities Construction Materials Insurance Commerce Property Development Finance & Securities Media & Publishing Automotive Information & Communications Technology Healthcare Services Food & Beverages Electronic Components Property Fund Packaging Transportation & Logistics Other Cash Total
Trust Benchmark weight weight 16.5 14.6 13.3 16.6 11.6 6.1 9.6 1.2 9.1 10.1 6.6 6.8 4.7 2.1 4.5 1.6 4.2 0.5 4.2 3.8 3.6 3.3 2.0 2.0 – – 1.0 100.0
8.9 4.9 6.9 1.4 2.8 0.4 7.3 7.7 – 100.0
Source: Aberdeen Asset Managers Ltd and Bloomberg. Figures may not add up to 100 due to rounding.
Total number of investments
40
Fund managers' report continues overleaf Including current year revenue. Copyright © 2016 Morningstar UK Ltd. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not a guide to future results.
A B
The risks outlined overleaf relating to gearing, emerging markets and exchange rate movements are particularly relevant to this trust but should be read in conjunction with all warnings and comments given. Important information overleaf
All sources (unless indicated): Aberdeen Asset Managers Limited 31 August 2016.
Private investors 0500 00 00 40 Institutional investors Kenneth Harper +44 (0)131 528 4224 or Andrew Leigh +44 (0)20 7463 6312 PAGE 31 OF 56
Investment Trust
Aberdeen New Thai Investment Trust PLC Performance Data and Analytics to 31 August 2016
Fund managers’ report - continued In August, we took profits from Siam Commercial Bank and Homepro following their good performance and used the proceeds to top up Hana Microelectronics on weakness.
Outlook
Thai markets continue to find favour with international investors and the prospect of an eventual return to democratic rule, following the draft constitution’s approval, has proved a further boost to sentiment. Ironically, the flipside of robust foreign inflows is a strengthening baht; the currency appreciated steadly throughout the year, to reach a 13-month high in August. Unchecked, this could pose a challenge to the nascent economic recovery, particularly for an already beleaguered export sector. Meanwhile, the US Federal Reserve’s increasingly hawkish overtones have begun to divert investor attention away from higher-yielding emerging markets.
Fund risk statistics 3 Years Annualised Standard Deviation of Fund Beta Sharpe Ratio Annualised Tracking Error Annualised Information Ratio R-Squared
17.29 0.89 0.28 4.99 (0.30) 0.93
5 Years 17.88 0.88 0.71 6.71 0.27 0.88
Source: Aberdeen Asset Management, BPSS & Thomson Reuters Datastream. Basis: Total Return, Gross of Fees, GBP. Please note that risk analytics figures are calculated on gross returns whereas the performance figures are based on net asset value(NAV) returns. In addition, the risk analytics figures lag the performance figures by a month.
Key information Calendar Expressed as a percentage of average daily net assets for the year ended 28 February 2016. The Ongoing Charges Figure (OCF) is the overall cost shown as a percentage of the value of the assets of the Company. It is made up of the Annual Management Fee and other charges. It does not include any costs associated with buying shares in the Company or the cost of buying and selling stocks within the Company. The Ongoing Charges figure can help you compare the annual operating expenses of different Companies. D Calculated using the Company’s historic net dividends and month end share price. E Net gearing is expressed as a percentage of gross assets, which includes current year revenue, less cash/cash equivalents divided by shareholders' funds. F The ‘Active Share’ percentage is a measure used to describe what proportion of the Company's holdings differ from the benchmark index holdings. C
Important information Risk factors you should consider prior to investing: • The value of investments and the income from them can fall and investors may get back less than the amount invested. • Past performance is not a guide to future results. • Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years. • The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that any movement in the value of the company's assets will result in a magnified movement in the NAV. • The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult to realise investments and may lead to volatility in the market price of the Company's shares. • Movements in exchange rates will impact on both the level of income received and the capital value of your investment. • There is no guarantee that the market price of the Company's shares will fully reflect their underlying Net Asset Value. • As with all stock exchange investments the value of the Company's shares purchased will immediately fall by the difference between the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen. • The Company invests in emerging markets which tend to be more volatile than mature markets and the value of your investment could move sharply up or down. • Specialist funds which invest in small markets or sectors of industry are likely to be more volatile than more diversified trusts. • Yields are estimated figures and may fluctuate, there are no guarantees that future dividends will match or exceed historic dividends and certain investors may be subject to further tax on dividends. Other important information: Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments.
Year end Accounts published Annual General Meeting Dividend paid Launch date Fund manager Ongoing chargesC Annual management fee Premium/(Discount) YieldD Net gearingE Active shareF
28 February May June July December 1989 Asian Equities Team 1.45% 1.0% (15.7)% 1.8% 1.3% 73.3%
AIFMD Leverage Limits Gross Notional Commitment
2.5x 2x
Assets/Debt (£m) Gross assets Debt Cash
113.3 2.7 1.3
Capital structure Ordinary shares
19,533,982
Allocation of management fees and finance costs Revenue
100%
Trading details Reuters/Epic/Bloomberg code ISIN code Sedol code Market makers Stockbrokers
ANW GB0000059971 0005997 CANA, CFEP, CNKS, INV, WINS, NUMS Numis Securities
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Investment Trust
New India Investment Trust PLC Performance Data and Analytics to 31 August 2016
Investment objective
Morningstar RatingTM
To achieve long-term capital appreciation by investing in companies which are incorporated in India or which derive significant revenue or profit from India, with dividend yield from the company being of secondary importance.
Morningstar RatingTM for Funds Morningstar rates funds from one to five stars based on how well they’ve performed (after adjusting for risk and accounting for all sales charges) in comparison to similar funds. B
Benchmark The Company compares its performance to the MSCI India Index (sterling adjusted). However, the Company’s portfolio is constructed without reference to the composition of any stock market index or benchmark. It is likely, therefore, that there will be periods when its performance may vary significantly from the benchmark.
Cumulative performance (%) as at 31/08/16 1 month 3 months 6 months
Since portfolio change 5 years 31/01/05
YTD
1 year
3 years
Share Price
388.0p
2.2
19.0
35.3
20.1
24.5
105.7
70.2
311.2
NAVA
445.6p
1.3
19.5
37.3
25.3
30.3
103.8
84.3
383.7
2.5
20.4
33.4
21.7
26.4
78.9
51.8
337.6
MSCI India
Discrete performance (%)
Year ending:
31/08/16
31/08/15
31/08/14
31/08/13
Share Price
24.5
14.4
44.5
(7.5)
NAVA
30.3
10.4
41.7
MSCI India
26.4
(0.3)
42.0
Since portfolio change 31/01/05 31/08/12 annualised (10.5)
13.0
(5.0)
(4.8)
14.6
(5.6)
(10.1)
13.6
Total return; NAV to NAV, net income reinvested, GBP. Share price total return is on a mid-to-mid basis. Dividend calculations are to reinvest as at the ex-dividend date. NAV returns based on NAVs with debt valued at fair value. Source: Aberdeen Asset Managers Limited, Lipper and Morningstar. Past performance is not a guide to future results.
Fund managers’ report Market Review Indian equities made modest gains in August, on optimism over the passing of the Goods and Services Tax (GST) bill in the upper house of parliament. One of the most significant tax reforms since independence, it paves the way for the nationwide integration of a common sales tax that is expected to boost export competitiveness and investor sentiment in the long term. However, market gains were capped on concerns that US Federal Reserve chairman Janet Yellen’s renewed hawkishness on an interest rate hike could reduce capital flows into emerging markets.
Fifteen largest equity holdings % 8.7 7.0 6.7 5.3 4.3 4.0 4.0 3.9 3.7 3.7 3.6 3.5 3.5 3.3 3.2 68.4
Housing Development Finance Tata Consultancy Services Infosys ITC Grasim Industries Ambuja Cements Kotak Mahindra Bank Piramal Enterprises Bosch Hero MotoCorp ICICI Bank Kansai Nerolac Paints Godrej Consumer Products Hindustan Unilever Ultratech Cement Total
Sector allocation (%) Financials Materials Information Technology Consumer Staples Health Care Consumer Discretionary Industrials Utilities Telecommunication Services Energy Cash Total
Trust Benchmark 20.7 18.9 17.9 7.7 16.4 17.6 16.0 10.3 12.7 10.7 7.4 14.7 4.4 6.2 1.5 2.1 1.4 2.9 – 8.9 1.6 – 100.0 100.0
Source: Aberdeen Asset Managers Limited and Bloomberg. Figures may not add up to 100 due to rounding.
Total number of investments
38
India appointed a new central bank governor. Reserve Bank of India deputy governor and former IMF economist Urjit Patel succeeds Raghuram Rajan in September. The appointment underscores the government’s commitment to inflation-targeting and continued adherence to monetary policy discipline. Economic growth moderated in the second quarter, with GDP rising by 7.1%, the slowest pace in over a year. This was largely due to a drop in private consumption, as well as a disappointing performance in mining and construction. Meanwhile, inflation breached the central bank’s target, increasing by 6.07% in July mostly because of higher food costs. Fund managers' report continues overleaf Including current year revenue. Copyright © 2016 Morningstar UK Ltd. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not a guide to future results.
A B
All sources (unless indicated): Aberdeen Asset Managers Limited 31 August 2016.
Private investors 0500 00 00 40 Institutional investors Kenneth Harper +44 (0)131 528 4224 or Andrew Leigh +44 (0)20 7463 6312 PAGE 33 OF 56
Investment Trust
New India Investment Trust PLC Performance Data and Analytics to 31 August 2016
Fund managers’ report - continued
Portfolio review In August, we sold Tata Power after a solid rally, as the company continues to face regulatory uncertainties and make acquisitions despite retaining a weak balance sheet. In corporate news, Grasim Industries will merge with AB Nuvo and the combined entity will be subsequently reorganised, with the financial services business likely to be listed separately. We met with management to discuss the move. While the deal was initially poorly communicated, we believe the conglomerate was restructured fairly for all shareholders. Given management’s good track record and experience, we still believe there is value in Grasim, particularly since its discount has widened following the news. Separately, Grasim’s first quarter net profits grew by 64% year-on-year. Hero MotoCorp’s results were boosted by better volumes and margins. It is expected to continue doing well on the back of a revival in rural demand following decent rainfall, which promises a better harvest. Both Godrej Consumer Products and Hindustan Unilever posted robust profits, helped by their international and home care businesses, respectively. Meanwhile, Container Corporation’s volume growth was subdued because of a slower-thanexpected recovery in exports and competition from the road sector. The company also reduced its full-year outlook for volume growth. In other news, Piramal Enterprises bought US contract drugmaker Ash Stevens for up to US$53 million. Outlook A good monsoon season after two preceding years of drought has rekindled the overall outlook for consumer demand in India, especially from rural areas. This also bodes well for corporate earnings. Meanwhile, with more than half the states having ratified the GST bill since it cleared the parliamentary upper house, a council can now be convened to work on its implementation. We forecast no change in the monetary policy rate in the next six months, and expect Patel to continue Rajan’s work of addressing the bad loans problem among state-owned banks. The passing of the baton at the central bank appears to have gone smoothly.
Fund risk statistics Annualised Standard Deviation of Fund Beta Sharpe Ratio Annualised Tracking Error Annualised Information Ratio R-Squared
3 Years
5 Years
19.99 0.96 1.13 4.45 1.53 0.95
19.73 0.85 0.57 6.41 0.84 0.92
Source: Aberdeen Asset Management, BPSS & Thomson Reuters Datastream.Basis: Total Return, Gross of Fees, GBP. Please note that risk analytics figures are calculated on gross returns whereas the performance figures are based on net asset value(NAV) returns. In addition, the risk analytics figures lag the performance figures by a month.
Key information Calendar Year end Accounts published Annual General Meeting Dividend paid
31 March June September n/a
Launch date Original trust February 1994 Name change/reconstruction December 2004 Fund manager Asian Equities Team Ongoing chargesC 1.36% Annual management feeD 1.0% Premium/(Discount) (12.9)% YieldE 0.0% Gearing nil Active shareF 59.3%
AIFMD Leverage Limits Gross Notional Commitment
2.5x 2x
Assets/Debt (£m) Gross assets Debt Cash
263.2 0.0 4.3
Capital structure Ordinary shares
59,070,140
Allocation of management fees and finance costs Revenue
100%
Trading details
Expressed as a percentage of average daily net assets for the year ended 31 March 2016. The Ongoing Charges Figure (OCF) is the overall cost shown as a percentage of the value of the assets of the Company. It is made up of the Annual Management Fee and other charges. It does not include any costs associated with buying shares in the Company or the cost of buying and selling stocks within the Company. The Ongoing Charges figure can help you compare the annual operating expenses of different Companies. D The basic management fee is 1% of total assets less current liabilities per annum. E Calculated using the Company’s historic net dividends and month end share price. F The ‘Active Share’ percentage is a measure used to describe what proportion of the Company's holdings differ from the benchmark index holdings. C
The risks outlined overleaf relating to gearing, warrants, emerging markets, small companies and exchange rate movements are particularly relevant to this trust but should be read in conjunction with all warnings and comments given. Important information overleaf
Reuters/Epic/Bloomberg code NII ISIN code GB0006048770 Sedol code 0604877 Stockbrokers WINS Investment Trusts Market makers CANA, CFEP, INV, JPMS, NITE, WEST, PEEL, STFL, WINS,
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Investment Trust
New India Investment Trust PLC
Important information Risk factors you should consider prior to investing: • The value of investments and the income from them can fall and investors may get back less than the amount invested. • Past performance is not a guide to future results. • Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years. • The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that any movement in the value of the company's assets will result in a magnified movement in the NAV. • The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult to realise investments and may lead to volatility in the market price of the Company's shares. • Movements in exchange rates will impact on both the level of income received and the capital value of your investment. • There is no guarantee that the market price of the Company's shares will fully reflect their underlying Net Asset Value. • As with all stock exchange investments the value of the Company's shares purchased will immediately fall by the difference between the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen. • The Company invests in emerging markets which tend to be more volatile than mature markets and the value of your investment could move sharply up or down. • Yields are estimated figures and may fluctuate, there are no guarantees that future dividends will match or exceed historic dividends and certain investors may be subject to further tax on dividends. Other important information: Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis, should not be taken as an indication or guarantee of any future performance analysis forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI” Parties) expressly disclaims all warranties (including without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages (www.msci.com). PAGE 35 OF 56
Investment Company
Aberdeen Emerging Markets Investment Company Limited Performance Data and Analytics to 31 August 2016
Investment objective To achieve consistent returns for shareholders in excess of the MSCI Emerging Markets Net Total Return Index in sterling terms.
Morningstar RatingTM
Benchmark
Morningstar RatingTM for Funds Morningstar rates funds from one to five stars based on how well they’ve performed (after adjusting for risk and accounting for all sales charges) in comparison to similar funds.
MSCI Emerging Markets Net Total Return Index in sterling terms.
Ten largest holdings
Cumulative performance (%) as at 31/08/16
1 month
3 months
6 months
1 year
3 years
Share Price
480.38p
2.3
21.1
25.7
27.8
16.8
5.0
NAVA
573.59p
2.9
22.0
29.5
33.0
25.5
16.8
3.2
23.4
30.0
30.6
22.0
20.1
Composite BenchmarkB
5 years
Discrete performance (%) 31/08/16
31/08/15
31/08/14
31/08/13
31/08/12
Share Price
Year ending:
27.8
(16.8)
9.9
1.9
(11.8)
NAVA
33.0
(15.4)
11.5
2.0
(8.8)
Composite BenchmarkB
30.6
(16.7)
12.1
2.9
(4.3)
Total return; NAV to NAV, net income reinvested, GBP. Share price total return is on a mid-to-mid basis. Dividend calculations are to reinvest as at the ex-dividend date. NAV returns based on NAVs with debt valued at fair value. Source: Aberdeen Asset Managers Limited and Bloomberg. Past performance is not a guide to future results.
Fund managers’ report Market Review Emerging markets rose 3.2% in August despite a pullback in the second half of the month as the likelihood of the US hiking interest rates this year increased following Fed Chair Yellen’s speech at Jackson Hole. Asian markets led the way, with China posting a gain of 8.1% as a majority of companies reported better sales and earnings numbers than analysts had expected for the second quarter. Approval was also granted for the Shenzhen-Hong Kong Connect program which should improve the accessibility of Chinese equity markets. India delivered a modest 1.9% gain despite several positive developments including the long awaited passing of the Goods and Services Tax Bill which replaces all indirect taxes with a single tax and the appointment of the respected Mr Patel as Governor of the Reserve Bank of India. Thai equities added 4.3% with investors welcoming the passage of the national constitutional referendum. In the Europe, Middle East and Africa region the Russian market rose by 3.2%, benefiting from a 10.8% recovery in crude oil prices (Brent one month futures). The Turkish market increased by 2.1% despite a continuation of the authoritarian response to July’s attempted coup. South Africa was one of the few markets to lose ground in August, falling 7.1% as rising political risk following the ANC’s setbacks in local elections and controversy surrounding the finance minister led to a sharp depreciation of the rand. In Latin America, the Brazilian Senate took the final step in a lengthy impeachment process, voting to remove President Rousseff from office at the end of the month, with Michel Temer taking the reigns as President. The market rose by 1.6%, bringing the year to date return to 82.1% which makes Brazil the best performing emerging market of all this year. Colombia’s market gained 10.3% with a peace accord between the government and the FARC rebels contributing to positive sentiment. Fund managers' report continues overleaf NAV performance is adjusted for the impact of subscription shares. Composite - S&P IFCI GEM PR from inception until 31 Oct 2011 then MSCI EM NTR. C Copyright © 2016 Morningstar UK Ltd. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not a guide to future results. A B
C
Country % Weiss Korea Opportunity Fund Korea 6.1 Schroder AsiaPacific Fund Asia 5.7 NB - China Equity Fund China 5.1 Fidelity China Special Situations China 5.1 Genesis Emerging Markets GEM 4.8 Edinburgh Dragon Trust Asia 4.8 SCM South Africa Fund South Africa 4.0 Ton Poh Fund - Class C Thailand 3.4 BlackRock Emerging Europe PLC Europe 3.4 Findlay Park Latin American Fund Latam 3.1 Total 45.5
Asset allocation (%) ASIA China / HK Korea India Taiwan Thailand Indonesia Singapore Philippines Malaysia Other Asia EMEA Russia South Africa Turkey Poland Qatar Czech Rep Greece Hungary UAE Egypt Other EMEA LATAM Brazil Mexico Chile Peru Colombia Other Latam Non-specified Indirect Cash Portfolio Cash Total
Fund 65.4 20.6 14.5 10.5 8.0 4.2 2.9 1.6 0.9 0.8 1.5 19.7 5.9 5.0 2.8 1.6 0.5 0.3 0.3 0.1 – – 3.2 11.7 4.6 4.2 1.2 0.6 0.3 0.9 – 2.9 0.4 100.0
Benchmark 71.1 26.6 14.9 8.3 12.0 2.3 2.7 – 1.5 2.8 – 15.5 3.6 6.9 1.2 1.1 0.9 0.1 0.3 0.3 0.9 0.2 – 13.4 7.5 3.9 1.1 0.4 0.5 –
Total number of investments
100.0 45
Figures may not add up to 100 due to rounding. All sources (unless indicated): Aberdeen Asset Managers Limited 31 August 2016.
Private investors 0500 00 00 40 Institutional investors Jonathon McManus +44 (0)20 7618 1444 or Andrew Leigh +44 (0)20 7463 6312 PAGE 36 OF 56
Investment Company
Aberdeen Emerging Markets Investment Company Limited Performance Data and Analytics to 31 August 2016
Fund managers’ report - continued Performance Commentary The net asset value of Aberdeen Emerging Markets Investment Company rose by 2.9% in August while the share price gained 2.3% as the discount at which the Company’s shares trade widened to 16.3%. Net asset value performance was marginally behind that of the benchmark index with manager selection and asset allocation detracting from relative returns in a minor way.
Fund risk statistics Return (Fund) Return (Benchmark) Tracking Error Alpha Beta Correlation
5 Years 3.20 3.70 4.20 (0.30) 0.93 0.97
Portfolio Activity During August we exercised the Company’s subscription shares in India Capital Growth Fund to acquire ordinary shares on a discount to net asset value of over 30%. We added to the resultant position in the subsequent placing of a small share overhang. This saw the holding size increase from 0.4% of net assets to 1.2%. The fund focuses on medium sized Indian companies and draws on the resources of an experienced local research team.
Basis: Total Return, Net of Fees, GBP. Please note that risk analytics figures are calculated on net returns whereas the performance figures are based on net asset value(NAV) returns. In addition, the risk analytics figures lag the performance figures by a month.
Elsewhere in the portfolio we completed the exit from Morgan Stanley China A Share Fund on a combination of asset allocation and discount grounds and reduced the holding in JP Morgan Global Emerging Markets Income Trust as the stock traded at a premium to net asset value.
Year end Accounts published Annual General Meeting Dividend paid Launch date
Outlook Emerging markets equities have risen by 28.5% so far this year, albeit with sterling weakness flattering returns to some extent. The obvious question is whether or not the rally can continue and we believe there are reasons to remain optimistic. Firstly, broad economic performance is showing signs of improvement across the emerging world and appears to be contributing to the first positive earnings surprises we have seen in many of our markets for several years. The case is supported by equity market valuations that remain quite reasonable, particularly so when compared with developed markets. The same is true of emerging market currencies, which proved to be a significant headwind for much of this decade but have stabilised and in many cases are slowly recovering from undervalued levels. These positives have led to a recovery in investor interest resulting in modestly inflows into emerging market equities for the year to date, coming after three years of significant outflows. As we enter the final months of the year the most significant risks to emerging markets appear to emanate from external events with a US presidential election looming and the UK yet to trigger negotiations on its formal exit from the EU. Nonetheless, lower debt levels and higher real interest rates provide for greater policy flexibility in emerging markets than developed markets and we still believe that the prospects of anything other than moderate rate hikes from the US Federal Reserve remain low. At a portfolio level we continue to seek out the most attractive markets on a top down fundamental basis and the best funds through which to access those opportunities.
Expressed as a percentage of average daily net assets for the year ended 31 October 2015. The Ongoing Charges Figure (OCF) is the overall cost shown as a percentage of the value of the assets of the Company. It is made up of the Annual Management Fee and other charges. It does not include any costs associated with buying shares in the Company or the cost of buying and selling stocks within the Company. The Ongoing Charges figure can help you compare the annual operating expenses of different Companies. E Calculated using the Company’s historic net dividends and month end share price. F The Company has no borrowings.
Key information Calendar
Fund manager Annual management fee Performance fee
Ongoing chargesD Gross assets Premium/(Discount) YieldE GearingF
October January April Annually, if available 21 Jun 1998 (redomiciled on 6 Nov 2009) Andrew Lister and Bernard Moody 1% of market cap 10% (of outperformance, with High Water Mark) 1.20% £297.6m (16.3)% 0.0% nil
AIFMD Leverage Limits Gross Notional Commitment
1.15x 1.15x
Capital structure Ordinary shares Treasury shares
51,876,229 2,742,278
Trading details Reuters/Epic/Bloomberg code ISIN code Sedol code Stockbroker
AEMC GG00B45L2K95 B45L2K9 Stockdale Securities
D
The risks outlined overleaf relating to gearing, exchange rate movements and emerging markets are particularly relevant to this investment company but should be read in conjunction with all warnings and comments given. Important information overleaf
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Investment Company
Aberdeen Emerging Markets Investment Company Limited
Important information Risk factors you should consider prior to investing: • The value of investments and the income from them can fall and investors may get back less than the amount invested. • Past performance is not a guide to future results. • Emerging markets or less developed countries may face more political, economic or structural challenges than developed countries. This may mean your money is at greater risk. • Investing globally can bring additional returns and diversify risk. However, currency exchange rate fluctuations may have a positive or negative impact on the value of your investment. • The Sub-fund can use derivatives in order to meet its investment objectives or to protect from price and currency movements. This may result in gains or losses that are greater than the original amount invested. • This Fund may invest through non-regulated markets which are subject to increased risk relating to ownership and custody of investments. • This Fund invests into other funds which themselves invest in assets such as bonds, company shares, cash and currencies. The objectives and risk profiles of these underlying funds may not be fully in line with those of this Fund. Other important information: The Company is a Closed-ended investment scheme registered pursuant to the Protection of Investors (Bailiwick of Guernsey) Law 1987, as amended and the Registered Collective Investment Scheme Rules 2008 issued by the Guernsey Financial Services Commission. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis, should not be taken as an indication or guarantee of any future performance analysis forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI” Parties) expressly disclaims all warranties (including without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages (www.msci.com). Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments. PAGE 38 OF 56
Investment Company
Aberdeen Frontier Markets Investment Company Limited Performance Data and Analytics to 31 August 2016
Investment objective
Morningstar RatingTM
To provide shareholders with long term capital growth by investing in the Frontier Markets of Africa, the Middle East, Eastern Europe, Asia and Latin America.
Benchmark This fund does not have a benchmark. The MSCI Frontier Index is shown for reference purposes only. It does not constitute a benchmark for the fund's performance, nor does the investment team refer to it when deciding the fund's asset allocation.
Cumulative performance (%) as at 31/08/16
1 month
3 months
6 months
1 year
3 years
5 years
Share Price
0.6125p
1.2
15.6
23.4
18.4
15.8
44.1
NAV
0.6461p
1.1
10.3
15.6
15.5
10.5
33.7
(0.5)
6.5
9.4
12.3
18.4
43.9
MSCI Frontier Index TR
Discrete performance (%) Year ending:
Morningstar RatingTM for Funds Morningstar rates funds from one to five stars based on how well they’ve performed (after adjusting for risk and accounting for all sales charges) in comparison to similar funds. A
31/08/16
31/08/15
31/08/14
31/08/13
31/08/12
Share Price
15.5
(17.4)
15.8
22.5
(1.1)
NAV
18.4
(18.3)
19.9
31.4
(5.3)
MSCI Frontier Index TR
12.3
(15.5)
24.8
25.5
(3.2)
Total return; NAV to NAV, net income reinvested, GBP. Share price total return is on a mid-to-mid basis. Dividend calculations are to reinvest as at the ex-dividend date. NAV returns based on NAVs with debt valued at fair value. Source: Aberdeen Asset Managers Limited and Bloomberg. Past performance is not a guide to future results.
Fund managers’ report Market Review August was a subdued month for equities globally, and frontier markets were no exception as the MSCI Frontier Markets Index declined by -0.5%. At an individual market level Sri Lanka (+8.2%), Romania (+6.4%) and Qatar (+4.7%) were amongst the strongest performers. Kenya (-6.3%) was amongst the weakest markets as President Kenyatta unexpectedly approved a Banking Amendment Act which will serve to cap lending rates at 4% above the Central Bank Rate (currently 10.5%). This obviously has negative implications for lenders’ profitability and banking stocks were marked down aggressively. The Company had an exposure of 3.2% to Kenya at the end of August. Performance Commentary AFMIC’s NAV rose by 1.1% during the month, outperforming frontier markets in general. Outperformance was driven by a combination of manager selection and asset allocation. At the holding level, the Company’s investments in Vietnam performed admirably as did Tundra Pakistanfond. At the country level, exposure to Romania and Vietnam was accretive to performance whilst the Company’s low level of exposure to Kenya also proved beneficial to relative performance. Portfolio Activity A top up investment was made into Advance Copernico Argentina Equity Fund, increasing exposure to a key frontier market that we continue to view favourably. We trimmed holdings in Pakistan and Vietnam to reduce exposure to those markets back towards the 15% country limit. We also started to rebuild exposure to Kenya following the prior exit from the Company’s East African focused investment in PineBridge Sub-Saharan Africa Equity Fund. Fund managers' report continues overleaf A Copyright © 2016 Morningstar UK Ltd. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not a guide to future results.
Ten largest holdings Country Fondul Proprietatea GDR Romania East Capital Balkan Fund - C Class Balkans VinaCapital Vietnam Opp. Vietnam Tundra Pakistan Fund Pakistan PXP Vietnam Emerging Equity FundVietnam Advance Copernico Argentina Argentina SCM Africa Fund Africa Sturgeon Central Asia Equities FundAsia SC Africa Consumer Fund Africa MSCI Pakistan Pakistan Total
% 8.6 8.3 7.8 7.7 7.1 7.0 4.8 4.8 4.2 3.9
Asset allocation % 19.0 6.9 3.2 2.2 2.0 1.2 1.1 0.8 0.6 0.3 0.3 0.3 – 7.9 2.4 1.6 1.4 1.0 1.0 0.2 0.2 0.1 37.2 15.6 15.1 2.5 2.1 1.4 0.4 10.1 9.8 0.2
AFRICA Nigeria Kenya Morocco Egypt Zimbabwe Zambia Ghana Senegal Botswana Ivory Coast Tanzania Other Africa MIDDLE EAST Qatar Saudi Arabia Lebanon Kuwait UAE Bahrain Oman Other Middle East ASIA Vietnam Pakistan Bangladesh Kazakhstan Sri Lanka Other Asia LATIN AMERICA Argentina Other Latin America
Total number of investments
34
All sources (unless indicated): Aberdeen Asset Managers Limited 31 August 2016.
Private investors 0500 00 00 40 Institutional investors Jonathon McManus +44 (0)20 7618 1444 or Andrew Leigh +44 (0)20 7463 6312 PAGE 39 OF 56
Investment Company
Aberdeen Frontier Markets Investment Company Limited Performance Data and Analytics to 31 August 2016
Fund managers’ report - continued
Outlook The rationale for investing in frontier markets today is little changed from when the Company was launched almost a decade ago. Premium economic growth continues to be driven by long term trends in demographics and consumption. Markets remain uncorrelated to each other and the asset class is therefore likely to continue delivering returns that are less volatile than investors expect. Furthermore, the asset class remains an inefficient and somewhat overlooked asset class, providing opportunities for active stock pickers to identify mispriced companies.
Asset allocation (continued) % 18.9 9.3 2.7 2.1 1.1 1.0 0.9 0.5 1.3 1.9 5.5 (0.4) 100.0
EASTERN EUROPE Romania Turkey Slovenia Greece Georgia Serbia Croatia Other Eastern Europe Non-specified Indirect Cash Portfolio Cash Total
One tenet of the rationale that has changed materially is valuation. Frontier market equities have suffered a material de-rating from a trailing price to earnings ratio of 19.0x in 2009 to just 10.6x at present (Source: Bloomberg). Accompanying the low valuation is an attractive dividend yield that talks to the unleveraged and cash generative nature of many frontier corporates. This has been a consistent feature of the asset class over time. Such inexpensive valuations have been reached through a combination of resilient earnings and uninspiring market performance. In a world where both growth (in GDP or corporate earnings) and yield are scarce, we believe investors will, in the years to come, be willing to pay higher valuations for frontier assets than they are today.
Figures may not add up to 100 due to rounding.
The portfolio has changed materially over the years, reflecting the active way in which we invest. At present we believe it to be extremely well positioned, concentrated in well-structured funds managed by talented stock pickers in attractive markets, often at a discount to net asset value. We believe this simple strategy, executed well, will deliver attractive risk adjusted returns for investors over the coming years from an asset class that is brimming with potential.
Basis: Total Return, Net of Fees, GBP. Please note that risk analytics figures are calculated on net returns whereas the performance figures are based on net asset value(NAV) returns. In addition, the risk analytics figures lag the performance figures by a month.
Fund risk statistics Return (Fund) Return (MSCI FM) Volatility (Fund) Volatility (MSCI FM)
5 Years 6.0 7.5 10.1 10.6
Key information Calendar Year end Accounts published Annual General Meeting Dividend paid Launch date Fund manager Semi-annually management fee Performance fee Ongoing chargesB Gross assets Premium/(Discount) YieldC Net gearingD
June September November Annually, if available 15 June 2007 Andrew Lister and Bernard Moody 1.25% of market cap 12% (12% hurdle) 1.67% £109.5m (5.2)% 0.0% nil
AIFMD Leverage Limits Gross Notional Commitment
1.1x 1.1x
Capital structure Ordinary shares
169,460,000
Trading details
Expressed as a percentage of average weekly net assets for the year ended 30 June 2016. The Ongoing Charges Figure (OCF) is the overall cost shown as a percentage of the value of the assets of the Company. It is made up of the Annual Management Fee and other charges. It does not include any costs associated with buying shares in the Company or the cost of buying and selling stocks within the Company. The Ongoing Charges figure can help you compare the annual operating expenses of different Companies. C Calculated using the Company’s historic net dividends and month end share price. D Net gearing is expressed as a percentage of gross assets, which includes current year revenue, less cash/cash equivalents divided by shareholders' funds. B
The risks outlined overleaf relating to gearing, exchange rate movements and frontier markets are particularly relevant to this investment company but should be read in conjunction with all warnings and comments given. Important information overleaf
Reuters/Epic/Bloomberg code ISIN code Sedol Stockbroker
AFMC GG00B1W59J17 B1W59J1 Numis Securities
Receive the factsheet by email as soon as it is available by registering at www.invtrusts.co.uk/ITemail www.aberdeen-emerging-capital.com PAGE 40 OF 56
Investment Company
Aberdeen Frontier Markets Investment Company Limited
Important information Risk factors you should consider prior to investing: • The value of investments and the income from them can fall and investors may get back less than the amount invested. • Past performance is not a guide to future results. • Frontier market countries typically have smaller economies and even less developed capital markets or legal and political systems than traditional, more developed emerging market countries. As a result, the investment in frontier markets can be riskier than investing in emerging market countries. • Investing globally can bring additional returns and diversify risk. However,currency exchange rate fluctuations may have a positive or negative impact on the value of your investment. • The Sub-fund can use derivatives in order to meet its investment objectives or to protect from price and currency movements. This may result in gains or losses that are greater than the original amount invested. • This Fund may invest through non-regulated markets which are subject to increased risk relating to ownership and custody of investments. • This Fund invests into other funds which themselves invest in assets such as bonds, company shares, cash and currencies. The objectives and risk profiles of these underlying funds may not be fully in line with those of this Fund. Other important information: The Company is a Closed-ended investment scheme registered pursuant to the Protection of Investors (Bailiwick of Guernsey) Law 1987, as amended and the Registered Collective Investment Scheme Rules 2008 issued by the Guernsey Financial Services Commission. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis, should not be taken as an indication or guarantee of any future performance analysis forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI” Parties) expressly disclaims all warranties (including without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages (www.msci.com). Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments. PAGE 41 OF 56
Investment Company
Aberdeen Latin American Income Fund Limited Performance Data and Analytics to 31 August 2016
Investment objective To provide ordinary shareholders with a total return, with an above average yield, primarily through investing in Latin America through a diversified portfolio of equities and fixed income investments.
Benchmark 60% MSCI EM Latin American 10/40 Index and 40% JP Morgan GBI EM Global Diversified (Latin America carve out). Given that the Manager does not adopt a benchmark approach, performance can vary widely from the benchmark.
Cumulative performance (%) 1 month
3 months
6 months
Share Price
as at 31/08/16 66.6p
4.1
32.5
45.7
36.7
(6.1)
(14.1)
NAVA
75.6p
2.4
32.1
46.6
46.2
2.0
(4.4)
2.5
27.3
37.6
38.8
6.0
(3.7)
Composite Benchmark
1 year
3 years
5 years
Discrete performance (%) Year ending:
31/08/16
31/08/15
31/08/14
31/08/13
31/08/12
Share Price
36.7
(32.3)
1.4
(4.7)
(4.0)
NAV
46.2
(36.8)
10.4
(6.7)
0.5
Composite Benchmark
38.8
(32.2)
12.7
(7.0)
(2.3)
A
Total return; NAV to NAV, net income reinvested, GBP. Share price total return is on a mid-to-mid basis. Dividend calculations are to reinvest as at the ex-dividend date. NAV returns based on NAVs with debt valued at fair value. Source: Aberdeen Asset Managers Limited, Lipper and Morningstar. Past performance is not a guide to future results.
Fund managers’ report Latin American equities edged higher in August, but underperformed the broader emerging markets. Gains were capped by US Federal Reserve chairman Janet Yellen’s renewed hawkishness on an interest rate hike and declining commodity prices. Emerging market debt sentiment remained positive amid low trading volumes during the holiday period. On the month, the JP Morgan GBI-EM Global Diversified (Latin America) index (unhedged in GBP) returned 3.04%. Suspended Brazilian president Dilma Rousseff was ousted following an impeachment vote that found her guilty of mismanaging government spending, and Michel Temer was formally sworn into office. While consumer confidence climbed and economic activity appeared to improve, Temer’s economic team cautioned that a sustained recovery will depend on the government’s ability to implement meaningful reform. Elsewhere, Mexico cut its 2016 growth forecast after second-quarter GDP shrank, due to declining exports and a slowdown in services. In results news, Ultrapar released robust second-quarter earnings, driven by margin expansion at subsidiaries Ipiranga and Ultracargo, as well as an earlier-than-expected store opening at Extrafarma. Iguatemi’s mall sales outperformed its peers, and this underpinned resilient rental income. Bancolombia also did well, buoyed by solid net interest and fee incomes, as well as good cost control. In other news, Walmex sold its Suburbia clothing stores to El Puerto de Liverpool for US$1.03 billion. We believe Walmex obtained a fair price for this non-core business.
Morningstar RatingTM Morningstar RatingTM for Funds Morningstar rates funds from one to five stars based on how well they’ve performed (after adjusting for risk and accounting for all sales charges) in comparison to similar funds. B
Ten largest equity holdings % 3.5 3.3 2.3 1.9 1.9 1.9 1.8 1.7 1.6 1.5 21.4
Banco Bradesco ADR Itaú Unibanco ADR Lojas Renner Ambev Multiplan Empreendimentos Grupo Aeroportuario Grupo Financiero Banorte FEMSA ADR Ultrapar Participacoes ADR BRF Sponsored ADR Total
Ten largest fixed income holdings %
Brazil (Fed Rep of) 10% 01/01/25 Uruguay (Rep of) 5% 14/09/18 Colombia (Rep of) 9.85% 28/06/27 Brazil (Fed Rep of) 10% 01/01/17 Mex Bonos Desarr Fix Rt 8% 07/12/23 Mex Bonos Desarr Fix Rt 7.5% 03/06/27 Brazil (Fed Rep of) 10% 01/01/27 Peru (Rep of) 6.95% 12/08/31 Brazil (Fed Rep of) 10% 01/01/18 Brazil (Fed Rep of) 10% 01/01/21
10.4 9.1 8.6 7.4 4.2 2.7 2.6 2.3 2.3 2.2 51.8
Total As at 31 August 2016 the equity exposure within total investments was 41.37% and bond exposure 58.63%.
Geographic breakdown % 49.7 18.6 10.9 9.4 4.9 4.2 0.9 1.4 100.0
Brazil Mexico Uruguay Colombia Peru Chile Argentina Cash Total Figures may not add up to 100 due to rounding.
Total number of investments
55
All sources (unless indicated): Aberdeen Asset Managers Limited 31 August 2016.
Fund managers' report continues overleaf Including current year revenue. Copyright © 2016 Morningstar UK Ltd. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not a guide to future results.
A B
Private investors 0500 00 00 40 Institutional investors Colin Edge +44 (0)20 7463 5881 or Andrew Leigh +44 (0)20 7463 6312 PAGE 42 OF 56
Investment Company
Aberdeen Latin American Income Fund Limited Performance Data and Analytics to 31 August 2016
Fund managers’ report - continued In portfolio activity, we sold Colombian retailer Grupo Exito, on concerns over governance and potential future transactions. We took profits from Banco Bradesco, on the back of the stock’s solid rally this year. Against this, we added to Brazilian brewer Ambev, capital goods producer WEG and Peru’s Cementos Pacasmayo. Following the Mexican market’s underperformance, we topped up Arca Continental.
Key information Calendar Year end Accounts published Annual General Meeting Dividend paid Launch date Fund manager
Ongoing chargesC Annual management feeD Premium/(Discount) YieldE Active shareF
31 August November December January, April, July, October Aug 2010 Emerging Market Equity Team Emerging Market Debt Team 1.89% 1.0% (11.8)% 5.8% 59.4%
Net gearing TotalG
13.0%
AIFMD Leverage Limits Gross Notional Commitment
2.5x 2x
Assets
£’000 %
Equities Fixed Income Total investment Cash Other assets/(liabilities) Debt Net assets
22,654 32,103 54,757 1,211 (1) (7,500)
46.7 66.2 112.9 2.5 0.0 (15.4)
48,467
100.0
Capital structure Ordinary shares Treasury shares
64,152,824 2,420,000
Allocation of management fees and finance costs Capital Revenue
60% 40%
Trading details Reuters/Epic/Bloomberg code ISIN code Sedol code Stockbrokers Expressed as a percentage of average daily net assets for the year ended 31 August 2015. The Ongoing Charges Figure (OCF) is the overall cost shown as a percentage of the value of the assets of the Company. It is made up of the Annual Management Fee and other charges. It does not include any costs associated with buying shares in the Company or the cost of buying and selling stocks within the Company. The Ongoing Charges figure can help you compare the annual operating expenses of different Companies. D 1% per annum of the value of the Company’s net assets. E Calculated using the Company’s historic net dividends and month end share price. F The ‘Active Share’ percentage is a measure used to describe what proportion of the Company's holdings differ from the benchmark index holdings. For Aberdeen Latin American Income Fund this relates purely to the equity element of the portfolio. G Net gearing is expressed as a percentage of gross assets, which includes current year revenue, less cash/cash equivalents divided by shareholders' funds. C
The risks outlined overleaf relating to gearing, emerging market exposure and exchange rate movements are particularly relevant to this trust but should be read in conjunction with all warnings and comments given. Important information overleaf
Market makers
ALAI JE00B44ZTP62 B44ZTP6 Cantor Fitzgerald Europe CANA, CFEP, INV, JPMS, NUMS, PEEL, STFL, WINS
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Investment Company
Aberdeen Latin American Income Fund Limited
Important information Risk factors you should consider prior to investing: • The value of investments and the income from them can fall and investors may get back less than the amount invested. • Past performance is not a guide to future results. • Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years. • The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that any movement in the value of the company's assets will result in a magnified movement in the NAV. • The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult to realise investments and may lead to volatility in the market price of the Company's shares. • The Company may charge expenses to capital which may erode the capital value of the investment. • Derivatives may be used, subject to restrictions set out for the Company, in order to manage risk and generate income. The market in derivatives can be volatile and there is a higher than average risk of loss. • Movements in exchange rates will impact on both the level of income received and the capital value of your investment. • There is no guarantee that the market price of the Company's shares will fully reflect their underlying Net Asset Value. • As with all stock exchange investments the value of the Company's shares purchased will immediately fall by the difference between the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen. • The Company invests in emerging markets which tend to be more volatile than mature markets and the value of your investment could move sharply up or down. • Certain trusts may seek to invest in higher yielding securities such as bonds, which are subject to credit risk, market price risk and interest rate risk. Unlike income from a single bond, the level of income from an investment trust is not fixed and may fluctuate. • With funds investing in bonds there is a risk that interest rate fluctuations could affect the capital value of investments. Where long term interest rates rise, the capital value of shares is likely to fall, and vice versa. In addition to the interest rate risk, bond investments are also exposed to credit risk reflecting the ability of the borrower (i.e. bond issuer) to meet its obligations (i.e. pay the interest on a bond and return the capital on the redemption date). The risk of this happening is usually higher with bonds classified as ‘sub-investment grade’. These may produce a higher level of income but at a higher risk than investments in ‘investment grade’ bonds. In turn, this may have an adverse impact on funds that invest in such bonds. • Yields are estimated figures and may fluctuate, there are no guarantees that future dividends will match or exceed historic dividends and certain investors may be subject to further tax on dividends. Other important information: Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis, should not be taken as an indication or guarantee of any future performance analysis forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI” Parties) expressly disclaims all warranties (including without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages (www.msci.com). PAGE 44 OF 56
Investment Trust
Murray International Trust PLC Performance Data and Analytics to 31 August 2016
Investment objective
The aim is to achieve a total return greater than its benchmark by investing predominantly in equities worldwide. Within this objective, the manager will seek to increase the Company’s revenues in order to maintain an above average dividend yield.
Benchmark
Morningstar Analyst RatingTM
Morningstar Analyst Rating™ Morningstar analysts assign the ratings globally on a five-tier scale with three positive ratings of Gold, Silver and Bronze. B
40% FTSE World UK and 60% FTSE World ex UK.
Morningstar RatingTM
Cumulative performance (%) as at 31/08/16
1 month
3 months
6 months
1 year
3 years
5 years
Share Price
1107.0p
4.8
19.2
33.9
38.0
18.0
50.5
NAVA
1102.9p
1.0
21.7
27.2
36.4
28.1
58.0
1.6
13.4
18.4
21.6
36.3
78.9
Composite Benchmark
Twenty largest equity holdings
Discrete performance (%) Year ending:
Morningstar RatingTM for Funds Morningstar rates funds from one to five stars based on how well they’ve performed (after adjusting for risk and accounting for all sales charges) in comparison to similar funds. B
31/08/14
31/08/13
Share Price
31/08/16 38.0
31/08/15 (19.1)
5.7
11.8
31/08/12 14.1
NAVA
36.4
(14.2)
9.5
10.1
12.0
Composite Benchmark
21.6
(0.1)
12.2
19.1
10.2
Total return; NAV to NAV, net income reinvested, GBP. Share price total return is on a mid-to-mid basis. Dividend calculations are to reinvest as at the ex-dividend date. NAV returns based on NAVs with debt valued at fair value. Source: Aberdeen Asset Managers Limited, Lipper and Morningstar. Past performance is not a guide to future results.
Fund managers’ report Background Recent interest rate cuts coupled with renewed money printing suggest the so-called developed worlds’ central banking establishment remains as committed as ever to unconventional policy options that threaten global currency stability and destroy returns on savings. Against this backdrop, the credibility of all those associated with such actions continues to diminish as the rhetoric of condemnation increasingly grows louder. Performance Despite clear evidence of decelerating earnings momentum and escalating pressure on corporate dividends, global equity markets held up relatively well in the eerie silence of the post-Brexit economic vacuum. Ever vigilant bond markets periodically twitched at potential signs of rising imported inflation in the UK, but for the most part financial markets remained benign over the period. Activity Trading activity in the portfolio during the month was extremely low. Outlook With Central Bank policymakers seemingly prepared to pervert virtually all the rules of applied free-market economics in their efforts to “do whatever it takes”, the unintended consequences of such irresponsibility increasingly distorts the outlook for savings and investment. Negative bond yields, negative deposit rates and inflated asset prices are all testimony to this. Great care must continue to be exercised against such an unfamiliar and unrecognisable backdrop.
Including current year revenue. Copyright © 2016 Morningstar UK Ltd. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not a guide to future results. C Consolidates all equity holdings from same issuer.
British American TobaccoC Taiwan Semiconductor ASUR Unilever Indonesia Philip Morris Taiwan Mobile Daito SingTel Verizon Communications TELUS Roche Total Sociedad Quimica Y Minera De Chile PepsiCo Kimberly-Clark de Mexico FEMSA Public Bank Johnson & Johnson CME Royal Dutch Shell 'B' Total
% 4.6 4.5 4.4 4.1 3.7 3.6 2.8 2.7 2.7 2.5 2.3 2.3 2.1 2.1 1.9 1.9 1.8 1.7 1.7 1.7 55.1
Ten largest fixed income holdings Petroleos Mexicanos 5.5% 27/06/44 Brazil (Fed Rep of) 10% 01/01/17 South Africa (Rep of) 7% 28/02/31 Vale Overseas Limited 6.875% 21/11/36 Indonesia (Rep of) 6.125% 15/05/28 Petroleos De Venezuela 5.25% 12/04/17 Indonesia (Rep of) 7% 15/05/22 Bharti Airtel Intl 5.125% 11/03/23 Dominican (Rep of) 6.85% 27/01/45 Uruguay (Rep Of) 5.1% 18/06/50 Total
% 1.4 1.2 1.1 1.1 1.0 1.0 0.9 0.9 0.8 0.8 10.2
Total number of investments Total Equity Holdings in Portfolio : Total Fixed Income Holdings in Portfolio : Total
47 21 68
A B
The risks outlined overleaf relating to gearing, exchange rate movements and emerging markets are particularly relevant to this trust but should be read in conjunction with all warnings and comments given.
All sources (unless indicated): Aberdeen Asset Managers Limited 31 August 2016.
Private investors 0500 00 00 40 Institutional investors Kenneth Harper +44 (0)131 528 4224 or Andrew Leigh +44 (0)20 7463 6312 PAGE 45 OF 56
Investment Trust
Murray International Trust PLC Performance Data and Analytics to 31 August 2016 Portfolio analysis %
Equities Asia Pacific ex Japan Latin America & Emerging Markets North America Europe ex UK United Kingdom Japan Africa Fixed Income Latin America & Emerging Markets Asia Pacific ex Japan Africa United Kingdom Cash Total
25.1 16.4 15.4 12.0 10.4 4.0 0.9 9.0 5.0 1.1 0.5 0.2 100.0
Key information Calendar Year end Accounts published Annual General Meeting Dividend paid
31 December March April 2017 in Glasgow February, May, August, November Established 1907 Fund manager Bruce Stout 0.75% Ongoing chargesD Annual management feeE 0.575% (tiered) 0.4% Premium/(Discount) 4.2% YieldF 12.2% Net gearingG Active shareH
89.2%
AIFMD Leverage Limits Gross Notional Commitment
Assets Equities Fixed Income Cash Other net assets/(liabilities) Gross assets Debt Net assets
2.5x 2x
£’m % 1,335.7 246.7 1,582.4 12.7 (0.6) 1,594.5 (185.2) 1,409.3
94.8 17.4 112.2 0.9 0.0 113.1 (13.1) 100.0
Capital structure Ordinary shares Treasury shares
127,597,613 936,838
Allocation of management fees and finance costs Capital Revenue
70% 30%
Trading details Expressed as a percentage of total costs divided by average daily net assets for the year ended 31 December 2015. The Ongoing Charges Figure (OCF) is the overall cost shown as a percentage of the value of the assets of the Company. It is made up of the Annual Management Fee and other charges. It does not include any costs associated with buying shares in the Company or the cost of buying and selling stocks within the Company. The Ongoing Charges figure can help you compare the annual operating expenses of different Companies. E From 1 January 2016 onwards the annual fee will be charged at 0.575% of net assets (ie excluding gearing) up to £1,200 million, 0.5% of Net Assets between £1,200 million and £1,400 million, and 0.425% of Net Assets above £1,400 million. From 1 January 2016 the performance fee was abolished and the annual fee was amended to a tiered structure. F Calculated using the Company’s historic net dividends and month end share price. G Gearing is defined as a percentage, with net debt (total debt less cash/cash equivalents) divided by shareholders’ funds. H The ‘Active Share’ percentage is a measure used to describe what proportion of the Company's holdings differ from the benchmark index holdings. D
Important information overleaf
Reuters/Epic/Bloomberg code ISIN code Sedol code Stockbrokers Market makers
MYI GB0006111909 0611190 Stifel Securities SETSmm
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Investment Trust
Murray International Trust PLC
Important information Risk factors you should consider prior to investing: • The value of investments and the income from them can fall and investors may get back less than the amount invested. • Past performance is not a guide to future results. • Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years. • The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that any movement in the value of the company's assets will result in a magnified movement in the NAV. • The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult to realise investments and may lead to volatility in the market price of the Company's shares. • The Company may charge expenses to capital which may erode the capital value of the investment. • Movements in exchange rates will impact on both the level of income received and the capital value of your investment. • There is no guarantee that the market price of the Company's shares will fully reflect their underlying Net Asset Value. • As with all stock exchange investments the value of the Company's shares purchased will immediately fall by the difference between the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen. • With funds investing in bonds there is a risk that interest rate fluctuations could affect the capital value of investments. Where long term interest rates rise, the capital value of shares is likely to fall, and vice versa. In addition to the interest rate risk, bond investments are also exposed to credit risk reflecting the ability of the borrower (i.e. bond issuer) to meet its obligations (i.e. pay the interest on a bond and return the capital on the redemption date). The risk of this happening is usually higher with bonds classified as ‘sub-investment grade’. These may produce a higher level of income but at a higher risk than investments in ‘investment grade’ bonds. In turn, this may have an adverse impact on funds that invest in such bonds. • Yields are estimated figures and may fluctuate, there are no guarantees that future dividends will match or exceed historic dividends and certain investors may be subject to further tax on dividends. • The Company invests in emerging markets which tend to be more volatile than mature markets and the value of your investment could move sharply up or down. Other important information: Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments. FTSE International Limited (‘FTSE’) © FTSE 2016. ‘FTSE®’ is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. RAFI® is a registered trademark of Research Affiliates, LLC. All rights in the FTSE indices and/ or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent. PAGE 47 OF 56
Investment Trust
Aberdeen Japan Investment Trust PLC Performance Data and Analytics to 31 August 2016
Investment objective To achieve long-term capital growth principally through investment in listed Japanese companies which are believed by the Investment Manager to have above average prospects for growth.
Benchmark Topix Index (in sterling terms) - from 8 October 2013 MSCI All Countries Asia Pacific (including Japan) Index (in sterling terms) - to 7 October 2013
Cumulative performance (%) as at 31/08/16 Share Price 486.0p NAV Benchmark A
561.8p
1 month 3 months (1.4) 7.5 (0.5) 1.0
6 months 10.2
5.3 15.0
15.9 20.3
1 year (3.1) 12.6 21.5
3 years 43.7
Since change of mandate 5 years cumulative 87.5 45.7
55.8 44.0
79.7 67.3
53.6 40.7
31/08/14 12.8 14.6 4.5
31/08/13 15.9 8.5 16.7
31/08/12 12.6 6.4 (0.4)
Discrete performance (%) Year ending: Share Price NAVA Benchmark
31/08/16 31/08/15 (3.1) 31.4 12.6 20.7 21.5 13.4
The investment objective of the Company changed on 7 October 2013, with the Company moving from an All Asia to a Japan only mandate. The performance figures shown, therefore, reflect periods of time when the Company ran with these 2 different objectives. Total return; NAV to NAV, net income reinvested, GBP. Share price total return is on a mid-to-mid basis. Dividend calculations are to reinvest as at the ex-dividend date. NAV returns based on NAVs with debt valued at fair value. Source: Aberdeen Asset Managers Limited, Lipper and Morningstar. Past performance is not a guide to future results.
Fund managers’ report
Ten largest equity holdings % 6.0 4.6 4.6 4.5 4.0 3.9 3.9 3.7 3.7 3.4 42.3
Shin-Etsu Chemical Seven & i Keyence Japan Tobacco KDDI Amada Nabtesco Toyota Motor Fanuc Chugai Pharmaceutical Total
Sector allocation (%) Consumer Goods Industrials Financials Consumer Services Basic Materials Health Care Technology Telecommunications Oil & Gas Utilities Cash Total
Trust Benchmark 25.2 23.7 18.6 21.7 13.6 15.9 12.9 11.5 10.6 6.4 9.6 6.9 4.6 5.0 4.0 6.2 – 0.8 – 1.9 0.9 – 100.0 100.0
Sterling hedge (%) % of portfolio net assets hedged through forward contracts
42.9
Market Review Japanese equities rose modestly in August, with the market primarily driven by speculation on the Bank of Japan’s policy assessment and the prospect of tighter US monetary policy.
Investment policy provides for the Board to arrange an appropriate hedge for the underlying Yen net exposure in Sterling terms using rolling forex forward contracts. Approximately 45% of the Company's Yen net assets are hedged against fluctuations in the Yen/Sterling exchange rate.
In economic news, second-quarter GDP growth missed already subdued forecasts because of sluggish exports and anaemic corporate investment. Household spending fell in July for the fifth month, despite the rise in employment; paltry wage growth failed to encourage consumers to spend more.
Total number of investments
40
Meanwhile, the cabinet approved a ¥28 trillion fiscal package that included a quarter of that amount in new spending to kickstart the faltering economy. However, it relies on the trickle down impact of infrastructure spending rather than a more direct stimulus that would get households to spend. Portfolio Review There were no major portfolio changes in August. In corporate news, results were broadly positive, although the yen’s strength has compelled some companies to lower their earnings forecasts. Despite the currency impact, Japanese companies continued to post better-than-expected earnings. Quarterly results for both Honda and Toyota surpassed expectations. Honda benefited from solid sales of the latest Civic model and lower expenses, while Toyota was aided by good cost controls, even though its full-year forecast was lowered in anticipation of persistent yen strength. Separately, Japan Tobacco’s overseas sales were upbeat; Keyence was lifted by robust growth in its auto and electronic segments; and Daikin’s results were underpinned by healthy global demand and improving cost efficiencies. Fund managers' report continues overleaf A
Including current year revenue.
All sources (unless indicated): Aberdeen Asset Managers Limited 31 August 2016.
Private investors 0500 00 00 40 Institutional investors Kenneth Harper +44 (0)131 528 4224 or Andrew Leigh +44 (0)20 7463 6312 PAGE 48 OF 56
Investment Trust
Aberdeen Japan Investment Trust PLC Performance Data and Analytics to 31 August 2016
Fund managers’ report - continued
Outlook Japanese equities are likely to continue being buffeted by external headwinds. Oil prices are expected to remain soft well into 2017 on the back of an oversupply and discord within Opec about a freeze on output. Uncertainty surrounding Britain’s exit from the European Union, the US Federal Reserve’s next policy move, and a weak global economy are expected to dampen investors’ risk appetites. At home, leading indicators for manufacturing and services continued to waver between expansion and contraction, which does not bode well for the overall economy. However, we expect our holdings to meet these challenges head-on and come through better off because of their solid fundamentals and able leadership.
Fund risk statistics 3 Years 5 Years Annualised Standard Deviation of Fund 13.55 12.83 Beta 1.04 0.96 Sharpe Ratio 1.03 0.88 Annualised Tracking Error 6.27 5.43 Annualised Information Ratio 0.49 0.52 R-Squared 0.79 0.82 Source: Aberdeen Asset Management, BPSS & Thomson Reuters Datastream. Basis: Total Return, Gross of Fees, GBP. Please note that risk analytics figures are calculated on gross returns whereas the performance figures are based on net asset value(NAV) returns. In addition, the risk analytics figures lag the performance figures by a month.
Key information Calendar Year end Accounts published Annual General Meeting Dividend paid Launch dateB Fund manager Ongoing chargesC Annual management fee Premium/(Discount) YieldD Net gearingE Excluding FX hedge effect Including FX hedge effect Active shareF
31 March June July July October 1998 Asian Equities Team 1.29% 0.95% on first £50m net assets 0.75% thereafter (13.5)% 0.9% 13.1% 13.2% 80.6%
AIFMD Leverage Limits Gross Notional Commitment
2.5x 2x
Assets/Debt (£m) Gross assets Debt Cash
100.1 12.5 1.0
Capital structure Ordinary shares Treasury shares
15,589,072 232,500
Allocation of management fees and finance costs Capital Revenue
60% 40%
Trading details
Previously managed by Gartmore Investment Limited. Expressed as a percentage of average daily net assets for the year ended 31 March 2016. The Ongoing Charges Figure (OCF) is the overall cost shown as a percentage of the value of the assets of the Company. It is made up of the Annual Management Fee and other charges. It does not include any costs associated with buying shares in the Company or the cost of buying and selling stocks within the Company. The Ongoing Charges figure can help you compare the annual operating expenses of different Companies. D Calculated using the Company’s historic net dividends and month end share price. E Net gearing is expressed as a percentage of gross assets, which includes current year revenue, less cash/cash equivalents divided by shareholders' funds. F The ‘Active Share’ percentage is a measure used to describe what proportion of the Company's holdings differ from the benchmark index holdings. B
C
The risks outlined overleaf relating to gearing and exchange rate movements are particularly relevant to this trust but should be read in conjunction with all warnings and comments given. Important information overleaf
Reuters/Epic/Bloomberg code ISIN code Sedol code Stockbrokers Market makers
AJIT GB0003920757 0392075 J.P. Morgan Cazenove CANA, CFEP, INV, JPMS, STFL, WEST, WINS
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Investment Trust
Aberdeen Japan Investment Trust PLC
Important information Risk factors you should consider prior to investing: • The value of investments and the income from them can fall and investors may get back less than the amount invested. • Past performance is not a guide to future results. • Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years. • The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that any movement in the value of the company's assets will result in a magnified movement in the NAV. • The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult to realise investments and may lead to volatility in the market price of the Company's shares. • The Company may charge expenses to capital which may erode the capital value of the investment. • Derivatives may be used, subject to restrictions set out for the Company, in order to manage risk and generate income. The market in derivatives can be volatile and there is a higher than average risk of loss. • Movements in exchange rates will impact on both the level of income received and the capital value of your investment. • There is no guarantee that the market price of the Company's shares will fully reflect their underlying Net Asset Value. • As with all stock exchange investments the value of the Company's shares purchased will immediately fall by the difference between the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen. • Yields are estimated figures and may fluctuate, there are no guarantees that future dividends will match or exceed historic dividends and certain investors may be subject to further tax on dividends. Other important information: Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis, should not be taken as an indication or guarantee of any future performance analysis forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI” Parties) expressly disclaims all warranties (including without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages (www.msci.com). PAGE 50 OF 56
Investment Trust
The North American Income Trust plc Performance Data and Analytics to 31 August 2016
Investment objective To provide investors with above average dividend income and long term capital growth through active management of a portfolio consisting predominantly of S&P 500 US equities.
Reference benchmarks Russell Value 1000 Index and S&P 500 Index.
as at 31/08/16 1 month 3 months 6 months
Since change of strategy 1 year 3 years 5 years (31/05/12)
Share Price
1081.0p
1.0
21.1
29.1
43.6
41.7
110.5
NAVA
1184.4p
1.4
18.4
26.1
44.2
57.3
117.1
88.7
S&P 500
1.5
15.7
20.9
32.2
67.3
146.6
113.3
Russell 1000 Value
2.2
16.2
23.7
32.6
60.2
143.5
112.6
88.0
Discrete performance (%) 31/08/16
31/08/15
31/08/14
31/08/13
31/08/12
Share Price
43.6
(2.6)
1.4
25.3
18.6
NAV
44.2
(1.4)
10.6
17.7
17.2
S&P 500
32.2
8.5
16.7
21.9
21.0
Russell 1000 Value
32.6
4.2
15.9
26.4
20.2
A
Morningstar RatingTM for Funds Morningstar rates funds from one to five stars based on how well they’ve performed (after adjusting for risk and accounting for all sales charges) in comparison to similar funds.
C
Ten largest equity holdings
Cumulative performance (%)
Year ending:
Morningstar RatingTM
Total return; NAV to NAV, net income reinvested, GBP. Share price total return is on a mid-to-mid basis. Dividend calculations are to reinvest as at the ex-dividend date. NAV returns based on NAVs with debt valued at fair value. Source: Aberdeen Asset Managers Limited, Lipper and Morningstar. Past performance is not a guide to future results. The investment objective of the Company changed on 29 May 2012, with the Company moving to an objective “to provide investors with above average dividend income and long term capital growth through active management of a portfolio consisting predominately of S&P 500 US equities” from its previous objective “to invest in a portfolio designed to track closely the S&P 500 Index, both in terms of capital and income.” The performance figures shown, therefore, reflect periods of time when the Company ran with these 2 different objectives.
Fund managers’ report
Major North American equity market indices garnered positive returns in both sterling and US dollar terms in August amid hawkish comments from the US Federal Reserve (Fed), generally mixed economic data reports, and an upturn in oil prices. Financials and information technology were the top-performing sectors within the US broader-market S&P 500 Index. Conversely, the interest rate-sensitive telecommunication services and utilities sectors lost ground as yields rose across the US Treasury curve over the month. In a speech at the Jackson Hole Economic Policy Symposium on 26 August, Fed Chair Janet Yellen noted that “the case for an increase in the federal funds rate has strengthened in recent months,” citing the ongoing strength in the US labor market and an improving economic outlook. Immediately following Yellen’s remarks, the federal funds futures price indicated that the probability of a rate increase during the FOMC’s meeting on 20-21 September had nearly doubled to 36%.B However, weaker-than-expected job growth in August subsequently dampened expectations for a rate hike in the near term.
% 4.2 3.8 3.8 3.6 3.6 3.3 3.1 3.0 2.7 2.7
Wells Fargo & Co CME Dow Chemical Pfizer Microsoft Molson Coors Brewing Chevron Rockwell Automation Johnson & Johnson Verizon Communications Total
33.8
Sector allocation % 23.9 12.8 11.2 9.1 8.6 8.6 8.4 8.0 5.8 3.6 100.0
Financials Information Technology Consumer Staples Materials Industrials Energy Consumer Discretionary Health Care Telecommunication Services Utilities Total
Geographic breakdown % 86.5 8.8 3.4 1.3
USA Canada Cash available for investment Other cashD Total
100.0
Total number of investments Total number of equity investments Total number of fixed income investments Total
45 10 55
The West Texas Intermediate crude oil price rose nearly 8% in US dollar terms in August, despite a late-month downturn on concerns of a global supply glut. The rally over much of the period was attributable primarily to speculation that OPEC may agree to production limits at an informal meeting during the International Energy Forum in September. On the economic front, second-quarter US GDP increased by 1.1%, down 0.1% from the government’s previous estimate, due mainly to a reduction in state and local government Fund managers' report continues overleaf Including current year revenue. Source: CME Group, August 27, 2016. Copyright © 2016 Morningstar UK Ltd. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not a guide to future results. D Represents cash being used as collateral against open equity options positions, and therefore not available for investment. A
B
C
All sources (unless indicated): Aberdeen Asset Managers Limited 31 August 2016.
Private investors 0500 00 00 40 Institutional investors Kenneth Harper +44 (0)131 528 4224 or Colin Edge +44 (0)20 7463 5881 PAGE 51 OF 56
Investment Trust
The North American Income Trust plc Performance Data and Analytics to 31 August 2016
Fund managers’ report - continued spending. U.S. payrolls grew by 151,000 in August, down sharply from increases of 271,000 and 275,000 in June and July, respectively. The unemployment rate remained at 4.9% for the third consecutive month. The largest job gains in August were in the food services and social assistance sectors, while employment in the mining sector continued to decline during the month. In portfolio related corporate news during the month, Canadian Western Bank’s third quarter results were hampered by its substantial exposure to Alberta, whose economy is notably dependent on the oil and gas industry. Wildfires in the Wood Buffalo region of the province in May significantly curtailed oil production. On the positive side, the company reported double digit loan growth in other geographical regions of Canada outside of Alberta. In contrast, Royal Bank of Canada saw healthy revenue and earnings growth for the third quarter. The company’s results were bolstered mainly by strength in its capital markets and wealth business segments, as well as a reduction in loan loss provisions. Management also announced a 4.0% increase in the quarterly dividend, equivalent to an annualised yield of 3.2% at the stock’s closing price on 31 August. Finally, pharmaceutical firm Pfizer, a Trust holding, agreed to purchase Medivation, a maker of a prostate cancer treatment, for US$81.50 per share—valuing the deal at roughly US$14 billion. Royal Bank of Canada was the lone Trust holding to initiate a dividend action in August. Regarding portfolio activity during the month, we added to the holding in commercial bank BB&T. and reduced the position in fertiliser maker PotashCorp.
Key information Calendar Year end Accounts published Annual General Meeting Dividend paid Established Fund managers Ongoing chargesE Annual management fee Premium/(Discount) YieldF Net gearingG Net gearingGH Active shareI
Gross Notional Commitment
Assets/Debt (£m)
From a bottom up perspective, this summer has brought what appears to be a slowdown in consumer spending; time will tell whether it is a fluke or a more important change in trajectory. In addition, we continue to be mindful of the effects of volatile commodity prices and the strong US dollar. More importantly, we closely track how these issues impact our companies in the long run as it relates to their competitive positioning and secular changes to the supply-and-demand dynamics. More relevant for NAIT holdings, wage inflation and slower top-line growth continue to pressure profitability and may impact dividend-paying companies. Taken together with the uncertainty of interest rates, companies may remain opportunistic in further expanding their balance sheets and push for mergers and acquisitions as a means to find growth or to fund other capital return programs.
Options
For the overall US equity market, valuations have expanded in aggregate but still appear to be fair in the context of underlying earnings growth, in our opinion. However, we believe that valuations of high dividend-paying companies are rather extended as the dividend stocks have recently become favourable alternatives to bonds, which have seen yields decline in recent months. Amid this landscape, we feel that selectivity–and, therefore, active management–remain crucial. Nonetheless, we remain confident that companies owned by the Trust are more reliant on their own performance than their role as a “bond proxy” in investor portfolios.
Capital Revenue
Expressed as a percentage of average daily net assets for the year ended 31 January 2016. The Ongoing Charges Figure (OCF) is the overall cost shown as a percentage of the value of the assets of the Company. It is made up of the Annual Management Fee and other charges. It does not include any costs associated with buying shares in the Company or the cost of buying and selling stocks within the Company. The Ongoing Charges figure can help you compare the annual operating expenses of different Companies. F Calculated using the Company’s historic net dividends and month end share price. G Gearing is defined as a percentage, with net debt (total debt less cash/cash equivalents) divided by shareholders’ funds. H Excludes cash being used as collateral against open option positions from cash/cash equivalents. I The ‘Active Share’ percentage is a measure used to describe what proportion of the Company's holdings differ from the benchmark index holdings. J Calculated as notional principal of outstanding divided by gross equity assets.
The risks outlined overleaf relating to exchange rate movements is particularly relevant to this trust, but should be read in conjunction with all warnings and comments given. Important information overleaf
(8.7)% 3.1% 8.1% 9.5% 82.1%
AIFMD Leverage Limits
Outlook Our views from the prior month remain largely unchanged. We continue to see US economic data improve surely but surely and growth across global economies maintaining a slow pace. This divergence of data points has manifested itself to some degree in companies that we hold, and widely across US companies in the form of slower revenue growth. And following a long stretch of margin expansion, there is likely limited room to progress profitability levels much further. These company fundamentals notwithstanding, unknown exogenous factors such as the resolutions of Brexit and the pending US presidential election bring further uncertainty.
E
31 January March May February, May, August, November 1902 Ralph Bassett Fran Radano 1.03% 0.8%
2.5x 2x
Gross assets Debt Cash
Assets Equities Fixed Income
387.6 46.6 19.0
% £m 96.2 3.8
Number of open options positions Equity sleeve optionisedJ
354.5 14.0
9 6.68%
Capital structure Ordinary shares
28,789,134
Allocation of management fees and finance costs 70% 30%
Trading details Reuters/Epic/Bloomberg code ISIN code Sedol code Stockbrokers Market makers
NAIT GB0000293620 0029362 WINS Investment Trusts SETSmm
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Investment Trust
The North American Income Trust plc
Important information
Risk factors you should consider prior to investing: • The value of investments and the income from them can fall and investors may get back less than the amount invested. • Past performance is not a guide to future results. • Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years. • The Company may borrow to finance further investment (gearing). The use of gearing is likely to lead to volatility in the Net Asset Value (NAV) meaning that any movement in the value of the company's assets will result in a magnified movement in the NAV. • The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult to realise investments and may lead to volatility in the market price of the Company's shares. • The Company may charge expenses to capital which may erode the capital value of the investment. • Derivatives may be used, subject to restrictions set out for the Company, in order to manage risk and generate income. The market in derivatives can be volatile and there is a higher than average risk of loss. • Movements in exchange rates will impact on both the level of income received and the capital value of your investment. • There is no guarantee that the market price of the Company's shares will fully reflect their underlying Net Asset Value. • As with all stock exchange investments the value of the Company's shares purchased will immediately fall by the difference between the buying and selling prices, the bid-offer spread. If trading volumes fall, the bid-offer spread can widen. • Certain trusts may seek to invest in higher yielding securities such as bonds, which are subject to credit risk, market price risk and interest rate risk. Unlike income from a single bond, the level of income from an investment trust is not fixed and may fluctuate. • Yields are estimated figures and may fluctuate, there are no guarantees that future dividends will match or exceed historic dividends and certain investors may be subject to further tax on dividends. Other important information: Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments. PAGE 53 OF 56
Investment Trust
Aberdeen UK Tracker Trust plc Performance Data and Analytics to 31 August 2016
Investment objective To invest in a portfolio designed to track closely the FTSE All-Share Index, both in terms of capital and income.
Morningstar RatingTM Morningstar RatingTM for Funds Morningstar rates funds from one to five stars based on how well they’ve performed (after adjusting for risk and accounting for all sales charges) in comparison to similar funds. B
Benchmark FTSE All-Share Index.
Ten largest equity holdings
Cumulative performance (%) as at 31/08/16 Capital return share price Capital return NAV
1 month
3 months
314.3p
(0.5)
335.37p
1.3
FTSE All-Share
6 months
1 year
3 years
5 years
7.7
8.4
4.8
3.7
28.3
8.0
10.8
7.8
8.3
31.5
1.2
7.8
10.5
7.6
8.4
32.0
Total return share price
314.3p
1.5
9.9
12.4
8.6
16.1
53.6
Total return NAVA
337.9p
1.9
9.0
13.0
11.5
19.2
54.5
1.9
9.0
13.1
11.7
20.4
57.7
FTSE All-Share
Discrete performance (%) Year ending:
31/08/16
31/08/15
31/08/14
31/08/13
31/08/12
Capital return share price
4.8
(5.4)
4.7
17.9
4.9
Capital return NAV
7.8
(5.8)
6.6
14.6
6.0
FTSE All-Share
7.6
(5.6)
6.7
14.7
6.1
Total return share price
8.6
(2.2)
9.3
21.8
8.7
Total return NAVA
11.5
(2.6)
9.8
18.1
9.7
FTSE All-Share
11.7
(2.3)
10.3
18.9
10.2
Capital Return; NAV to NAV, GBP. NAV returns based on NAVs excluding income and with debt valued at fair. Total return; NAV to NAV, net income reinvested, GBP. Share price total return is on a mid-to-mid basis. Dividend calculations are to reinvest as at the ex-dividend date. NAV returns based on NAVs with debt valued at fair value. Source: Aberdeen Asset Managers Limited, Lipper and Morningstar. Past performance is not a guide to future results.
Fund managers’ report Performance The total return NAV of the Trust rose by 1.9% in August which was in line with the total return from the FTSE All-Share Index. The Trust bought back 254,994 shares for Treasury during the month.
% 5.1 4.0 3.6 3.6 3.6 3.3 2.8 2.8 2.4 2.1 33.3
HSBC British American Tobacco GlaxoSmithKline Royal Dutch Shell 'A' BP Royal Dutch Shell 'B' AstraZeneca Vodafone Diageo Reckitt Benckiser Total
Sector allocation Financials Consumer Goods Consumer Services Oil & Gas Industrials Health Care Basic Materials Telecommunication Services Utilities Technology Total
% 23.6 17.2 11.6 11.1 10.8 9.8 5.4 4.4 3.9 2.2 100.0
Total number of investments
584
UK shares reached a new 14 month high in August. In the first part of the month, the market was propelled by gains in the energy sector. Oil prices rose following news that Russia would co-operate with the Organisation of Petroleum Exporting Countries in stabilising the oil price. The size of energy companies, such as BP and Shell, means their share price movements have a major influence on the UK stock market. Investors were also encouraged by a cut in interest rates. Having surprised most economists – and disappointed many investors – with its decision in July to leave borrowing costs unchanged, the Bank of England’s monetary policy committee (MPC), voted unanimously to cut the official lending rate from 0.5% to a new all-time low of 0.25%. On a capital returns basis, the FTSE 100, the FTSE 250 and FTSE SmallCap Indices rose by 0.8%, 2.6% and 2.6% respectively over the month.
Fund managers' report continues overleaf Including current year revenue. Copyright © 2016 Morningstar UK Ltd. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not a guide to future results.
A B
The risks outlined overleaf should be read with all warnings and comments given. Important information overleaf
All sources (unless indicated): Aberdeen Asset Managers Limited 31 August 2016.
Private investors 0500 00 00 40 Institutional investors Kenneth Harper +44 (0)131 528 4224 or Colin Edge +44 (0)20 7463 5881 PAGE 54 OF 56
Investment Trust
Aberdeen UK Tracker Trust plc Performance Data and Analytics to 31 August 2016
Fund managers’ report - continued Activity August was unsurprisingly a very quiet month in terms of portfolio activity. The portfolio had rights issue call payments for Melrose Industries and Utilico Emerging Markets and topped up its holding in Micro Focus following a series of shares in issue increases. Strategy The Trust’s portfolio replicates in full the constituents and weightings of the FTSE 350 Index and also holds most of the constituents of the FTSE SmallCap Index.
Key information Calendar Year end Accounts published Annual General Meeting Dividend paid Established Fund manager Ongoing chargesC Annual management feeD Premium/(Discount) YieldE Gearing
31 December March April April, August 1990 David Jones 0.29% 0.09% over £100m 0.2% under £100m (7.0)% 3.6% nil
AIFMD Leverage Limits
Expressed as a percentage of average daily net assets for the year ended 31 December 2015. The Ongoing Charges Figure (OCF) is the overall cost shown as a percentage of the value of the assets of the Company. It is made up of the Annual Management Fee and other charges. It does not include any costs associated with buying shares in the Company or the cost of buying and selling stocks within the Company. The Ongoing Charges figure can help you compare the annual operating expenses of different Companies. D 0.2% per annum of the total assets of the Company after deducting current liabilities and excluding commonly managed funds, on the value of total assets up to £100 million and reduced to 0.09% per annum of the value of total assets in excess of £100 million. E Calculated using the Company’s historic net dividends and month end share price. C
Important information Risk factors you should consider prior to investing: • The value of investments and the income from them can fall and investors may get back less than the amount invested. • Past performance is not a guide to future results. • Investment in the Company may not be appropriate for investors who plan to withdraw their money within 5 years. • The Company may accumulate investment positions which represent more than normal trading volumes which may make it difficult to realise investments and may lead to volatility in the market price of the Company's shares. • There is no guarantee that the market price of the Company's shares will fully reflect their underlying Net Asset Value. • As with all stock exchange investments the value of the Company's shares purchased will immediately fall by the difference between the buying and selling prices, the bidoffer spread. If trading volumes fall, the bid-offer spread can widen. • Yields are estimated figures and may fluctuate, there are no guarantees that future dividends will match or exceed historic dividends and certain investors may be subject to further tax on dividends. • Derivatives may be used, subject to restrictions set out for the Company, in order to manage risk and generate income. The market in derivatives can be volatile and there is a higher than average risk of loss. Other important information: Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Registered Office: 10 Queen’s Terrace, Aberdeen AB10 1YG. Registered in Scotland No. 108419. An investment trust should be considered only as part of a balanced portfolio. Under no circumstances should this information be considered as an offer or solicitation to deal in investments. FTSE International Limited (‘FTSE’) © FTSE 2016. ‘FTSE®’ is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. RAFI® is a registered trademark of Research Affiliates, LLC. All rights in the FTSE indices and/ or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.
Gross Notional 2.5x Commitment 2x Under the current investment policy the Company does not use gearing.
Assets/Debt (£m) Gross Debt Cash
335.6 nil 7.9
Capital structure 99,319,774 3,736,341
Ordinary shares Treasury shares
Allocation of management fees and finance costs Revenue
100%
Trading details Reuters/Epic/Bloomberg code ISIN code Sedol code Stockbrokers Market makers
AUKT GB0005596985 0559698 J.P. Morgan Cazenove SETSmm
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