Abrdn Asia Focus Share Discussion Threads

[bmcollins] 04/12/2024 17:09

Cheap as chips...

[davebowler] 04/12/2024 16:45

3 Dec abrdn Asia Focus Fully Diluted with Debt at Fair Value Including Income

349.19p

[davebowler] 03/12/2024 09:41

Overview
abrdn Asia Focus (AAS) is managed by a three-strong team consisting of Flavia Cheong, Gabriel Sacks, and Xin-Yao Ng who run a relatively concentrated portfolio of smaller companies from across the Asian region. They look to take advantage of the low levels of research in the asset class with a bottom-up, stock selection process to identify quality companies that others overlook. As such, the Portfolio will often look very different to those of its peers.

As a result of this approach, stock selection is often the primary driver of Performance. This has been the case in the near term, with a number of recent stock picks, particularly in Taiwan and India, performing well and contributing to the trust comfortably outperforming its benchmark and peer group over the past year. The backdrop for Asia has changed notably recently, with fiscal headwinds easing as well as stimulus measures in China leading to a pickup in sentiment.

Despite this, the trust, along with the wider sector, continues to trade at a wide Discount. The current level, around one standard deviation wider than the five-year average, has come as a result of share price performance failing to keep up with NAV returns. The board has recognised this value and has undertaken a significant share buyback programme.

AAS also has an enhanced Dividend policy to support its investment case. Last year’s income, including another special dividend, was fully covered by revenue and left the trust with solid reserves. The trust’s historic yield is c. 2.9%, with dividends expected to grow over time.

Kepler View
Asian smaller companies are arguably the backbone of the growth opportunity of the region yet are chronically under-owned by investors. Managers Flavia Cheong, Gabriel Sacks, and Xin-Yao Ng have done an excellent job, in our opinion, to show what investors are missing out on by offering a portfolio of exciting, under-the-radar quality growth opportunities that have delivered impressive Performance as well as offering diversification benefits for a wider portfolio.

More recently, the managers have narrowed the underweight to India, primarily through tapping into the attractive pipeline of IPO opportunities, as well as being highly selective on the best opportunities in Southeast Asia. This includes sizeable off-benchmark positions in the likes of Vietnam which further helps differentiate the trust (see Portfolio).

We believe the trust’s current Discount level may offer an attractive entry point. The strong NAV performance of the past few months, driven by better sentiment towards the region and stock selection, has not been matched by share price returns. As such, we believe the discount not only belies the trust’s strong performance but also the potential of the wider asset class.

[davebowler] 02/12/2024 08:43

hTTps://doceo.tv/funds/asia-focus/manager-updates/2024-11-25/

[davebowler] 25/11/2024 13:19

22 Nov abrdn Asia Focus plc Fully Diluted with Debt at Fair Value including Income

345.06p

[davebowler] 12/11/2024 08:44

hTTps://www.trustintelligence.co.uk/articles/strategy-divi-up-nov-2024 mentioned here

[davebowler] 11/11/2024 17:42

8 Nov NAV abrdn Asia Focus plc Fully Diluted with Debt at Fair Value 347.23p

Including Income

[bitgold] 10/11/2024 10:44

I am seeing a decline in the discount this past week. Could this be leading up to corporate action in yet another Abrdn IT?

[chinahere] 08/11/2024 17:58

It is only 1% difference for the downside protection but I agree it is hardly exciting. If only they traded warrants - that would be more fun!

[bmcollins] 08/11/2024 17:47

Sorry downside not downstairs!!!

[bmcollins] 08/11/2024 17:45

But you do lose
You lose in how many shares you can buy and you lose a dividend to boot
In my book that's losing!
The price you pay for this downstairs protection is rather higher than you'd pay for a 6 months put if it was available imho

[chinahere] 08/11/2024 17:37

It isn't a very expensive way in considering you then have 6 months pretty much knowing that you won't lose but you may well win. (I don't hold any though).

[bmcollins] 08/11/2024 17:10

But it's not a cheap way in is it ?
Whether it's worth paying a premium to buy the stock which can then be easily sold rather than fiddling around with a conver which gives 6 months protection only is a very debatable point
And the dividend loss as well ???
No thanks not for me

[chinahere] 08/11/2024 16:49

If between now and May 2025 the shares fall back you can keep the cash. Downside protection.

[bmcollins] 08/11/2024 16:26

At current price of 98.6 offered it lets you into the shares at 289 and they are offered now at 286.
So what is the great attraction as I think if you convert this month you miss the eqity dividend as well.
What am I missing ?

[chinahere] 07/11/2024 16:35

How easy or difficult is it to miss the conversion date and end up with the £1 back? As in do we get much notice from them?

I agree that they look good - a sort of downside protected version of AAS.

[davebowler] 07/11/2024 16:24

Last conversion is MAY 25.I set up an ADVFN thread under AASC

[davebowler] 07/11/2024 16:23

From LSE -
CULS Holders are reminded that on 4 February 2022 the sub-division of each fully paid ordinary share in the capital of the Company of 25 pence into 5 Ordinary Shares so the conversion price of the CULS was automatically and pro rata adjusted from 1,465p to 293p.

[bmcollins] 07/11/2024 16:06

Dave
You are correct, I just passed the test !
What are the conversion terms of this CULS & when is the last conversion date as I can't find that at present ?

[davebowler] 07/11/2024 15:46

I've persuaded AJ Bell last week to allow it now -you just have to sign a 'Complex Instruments 'form (although what is complex about them beats me!!!?

[chinahere] 06/11/2024 11:39

HL too are bad - you have to do it by telephone.

[bmcollins] 06/11/2024 11:29

Dave
I realise that but the platform I use, AJ Bell, have never in the past been easy to use for convertibles, in fact so awkward I tend to ignore them for that reason.

[davebowler] 06/11/2024 10:15

AASC is still a cheap way into this....