ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for default Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.

IAT Invesco Asia Trust Plc

309.00
0.00 (0.00%)
Last Updated: 08:36:23
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Invesco Asia Trust Plc LSE:IAT London Ordinary Share GB0004535307 ORD 10P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 309.00 308.00 316.00 2,546 08:36:23
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Trust,ex Ed,religious,charty 6.97M 2.72M 0.0407 75.92 206.58M

INVESCO Asia Trust Half-year Report

25/01/2021 11:24am

UK Regulatory


 
TIDMIAT 
 
Invesco Asia Trust plc 
 
                         Half-Yearly Financial Report 
 
                     For the Six Months to 31 October 2020 
 
Investment Objective 
 
The Company's objective is to provide long-term capital growth by investing in 
a diversified portfolio of Asian and Australasian companies. The Company aims 
to achieve growth in its net asset value (NAV) in excess of the Benchmark 
Index, the MSCI AC Asia ex Japan Index (total return, net of withholding tax, 
in sterling terms). 
 
Financial Information and Performance Statistics 
 
The Benchmark Index of the Company is the MSCI AC Asia ex Japan Index (total 
return, net of withholding tax, in sterling terms)(3). 
 
Total Return Statistics (1) (dividends reinvested) 
 
                                                          Six Months to Six Months 
                                                                                to 
 
                                                             31 October 31 October 
 
                                                                   2020       2019 
 
NAV per share(2)                                                  24.0%      -3.7% 
 
Share price(1)                                                    19.9%      -6.7% 
 
Benchmark index (2)(3)                                            18.9%      -1.9% 
 
Capital Statistics 
 
                                                                     At         At 
 
                                                             31 October   30 April 
 
                                                                   2020       2020   change % 
 
Net assets (£'000)                                              231,729    186,948      24.0% 
 
NAV per share(2)                                                346.62p    279.64p      24.0% 
 
Share price(1)                                                  304.50p    254.00p      19.9% 
 
Benchmark index (capital return)(1)(2)                         1,059.44     904.96      17.1% 
 
Discount(2) per ordinary share (cum income)                     (12.2)%     (9.2)% 
 
Average discount over six months/year(1)(2)                     (12.7)%    (11.0)% 
 
Gearing(2): 
 
  - gross                                                          4.0%       5.5% 
 
  - net                                                            3.8%       4.3% 
 
  - net cash                                                        nil        nil 
 
(1)    Source: Refinitiv. 
 
(2)    Alternative Performance Measures (APM), see pages 16 and 17 for the 
explanation and reconciliations of APMs. Further details are provided in the 
Glossary of Terms and Alternative Performance Measures in the Company's 2020 
annual financial report. 
 
(3)    Index returns are shown on a total return basis, with income reinvested 
net of withholding taxes. Previously Index returns, on a total return basis, 
were shown with income reinvested gross of withholding taxes. This change is 
also reflected, retrospectively, to any long term total returns shown in this 
half-year report for comparison and consistency. 
 
Chairman's Statement 
 
"Investment trusts have a variety of tools available that differentiate them 
from open-ended funds. When we believe that they will have an impact, we will 
deploy them." 
 
"The case for Asia relative to the world does appear strong and that is a good 
starting point." 
 
"Asia has managed the Covid-19 crisis relatively well, and balance sheets are 
generally sound." 
 
"We have introduced a new enhanced dividend policy and a performance 
conditional tender offer." 
 
I concluded my last statement by saying "it is at times like these that an 
active management style should prosper". It is pleasing to report that is 
exactly what has happened in the six months to 31 October 2020. Performance has 
been strong with NAV per share up by 24.0% while our benchmark MSCI AC Asia ex 
Japan Index was up 18.9% (both on a total return basis, net of withholding 
tax). Your share price rose by a smaller 19.9% as the discount widened from 
9.2% to 12.2%. 
 
Performance attribution shows that both country and sector allocations 
contributed positively but that the greatest contribution came from stock 
selection. That is what active portfolio management is all about. 
Ian Hargreaves reviews the portfolio, performance and outlook in detail in his 
Portfolio Manager's Report. 
 
The Investment Case 
 
We believe that the Investment Case for Invesco Asia Trust plc ("the Company") 
remains strong. The philosophy is well articulated and consistent, searching 
for Asian companies whose shares trade at a significant discount to fair value. 
Led by Ian, the team is focused on stock selection and continues to operate an 
institutional strength investment process with a long term performance record 
to match. 
 
One change is that Ian has a new boss: Stephanie Butcher has taken over as CIO 
for Invesco in Henley. We have been impressed by Stephanie and believe that her 
approach is positive for Ian, the Company and indeed for Invesco generally. 
 
The Corporate Proposition 
 
Our belief is that for an investment trust to deliver maximum value for its 
shareholders, the Board has to have a Corporate Proposition that sits alongside 
the Investment Case and enhances it, making the Company doubly attractive to 
potential and existing shareholders. 
 
We have announced a range of initiatives over the past two years, including a 
second, lower tier management fee, an upgrade to our website and more active 
engagement with our individual shareholders. All these are designed to spark 
new demand for the company's shares and to reduce the discount. However, with 
the discount moving above 10%, we decided to go further and announced two new 
measures on 28 August. 
 
First, a new enhanced dividend policy: The Board now aims to pay, in the 
absence of unforeseen circumstances, a regular six-monthly dividend equivalent 
to 2% of the Company's NAV, calculated on the last business day of September 
and February. The dividends will be paid to shareholders in November and April. 
Dividends will be paid from a combination of the Company's revenues, revenue 
reserves and capital reserves as required. So shareholders will be able to look 
forward to an annual dividend yield of approximately 4% of NAV. Shareholders 
should note that the new dividend policy of paying dividends calculated as a 
percentage of NAV means that dividends will fall if NAV falls. To be clear, 
there is no intention to change the Company's investment policy nor the 
portfolio manager's investment approach as a result of the new dividend policy: 
Ian and the team will manage the portfolio in exactly the same way as before. 
On 23 October, we announced a first interim dividend of 6.7p per ordinary share 
in respect of the year ending 30 April 2021. 6.7p is equivalent to 2% of the 
Company's NAV on the last business day of September 2020. A second interim 
dividend is expected to be paid in April 2021 again equivalent to 2% of NAV, 
giving a total distribution of approximately 4% of NAV over the year. 
 
The second measure was the introduction of a performance conditional tender 
offer. Under the terms of the proposal, the Board is undertaking to effect a 
tender offer for up to 25% of the company's issued share capital at a discount 
of 2% to the prevailing NAV per share (after deduction of tender costs) in the 
event that the Company's NAV cum-income total return performance over the five 
year period to 30 April 2025 fails to exceed the Company's comparator index, 
the MSCI AC Asia ex Japan Index (net of withholding tax, total return in 
sterling terms) by 0.5% per annum over the five years on a cumulative basis. 
 
Shareholders already have the opportunity to vote on the continuation of the 
Company every three years, but the Board believes that also providing 
shareholders with the option to tender a proportion of their shares for a cash 
price close to NAV if the Company underperforms constitutes a pragmatic and 
attractive initiative, particularly if the shares were to be trading at a 
material discount at the time. 
 
Total Return (dividends reinvested) to 31 October 2020(1) 
 
                                                         One       Three      Five        Ten 
 
                                                        Year       Years     Years      Years 
 
Net asset value (NAV)                                  15.5%       11.8%     90.5%     148.8% 
 
Share price                                            15.7%       14.0%     90.6%     140.4% 
 
Benchmark index(2)                                     15.9%       16.4%     88.2%     107.7% 
 
(1)    Source: Refinitiv. 
 
(2)    The benchmark index of the Company was changed on 1 May 2015 to the MSCI 
AC Asia ex Japan Index from the MSCI All Companies Asia Pacific ex Japan Index 
(both indices total return, sterling terms). 
 
Other News 
 
After consultation with our major shareholders we have made a minor change in 
the benchmark index we use for performance comparison purposes. It is still the 
MSCI AC Asia ex Japan Index, but we are now showing it calculated on a net of 
withholding tax basis instead of gross. As the Company pays withholding tax, we 
believe this is the fairest way to evaluate performance. 
 
It was disappointing that our Annual General Meeting on 3 September had to be a 
closed meeting because of the Covid-19 restrictions. Ian's presentation was 
uploaded to our website that day and is still there. I hope shareholders found 
it useful. 
 
Tom Maier retired from the Board at the conclusion of the AGM after serving 
eleven years. We thank him for his sustained contribution to the Company and in 
particular the keen focus that he gave to analysis of investment performance, 
which will continue. His replacement, Vanessa Donegan, had already joined the 
Board in October 2019 so we revert to four Directors. 
 
There have been no share buybacks over the period. 
 
Update 
 
From 31 October to 21 January, NAV per share has risen by 26.2%, outperforming 
the MSCI AC Asia ex Japan Index return of +19.5%. The share price has risen by 
34.6% with the discount narrowing from 12.2% to 6.3%. 
 
Outlook 
 
Many are wondering if they have missed the opportunity to invest in Asia that 
presented itself in 2020. Asian markets have bounced 59% off their March lows 
and are at new highs. However, even now Asia has underperformed the MSCI World 
Index sharply over 10 years with the MSCI Asia ex Japan Index +147% versus the 
World's +218%. 
 
There are possible tailwinds for markets with the return of consumer and 
corporate confidence post Covid-19, a recovery both of domestic and export 
markets for Asian companies, support for capital inflows from a weaker US 
dollar. The new Regional Comprehensive Economic Partnership comprising the 
ASEAN countries plus China, Japan, South Korea, Australia and New Zealand will 
provide fresh longer term benefits. Possible headwinds include above average 
starting valuations, Covid-19 related setbacks, the threat of rising interest 
rates as economies recover and greater regulation of the large technology 
companies that have dominated stock markets last year. 
 
Overall there are too many variables to make a confident prediction of absolute 
returns from here. But the case for Asia relative to the world does appear 
strong and that is a good starting point. Moreover, political uncertainties 
have risen to the fore. Political risk has always been a feature of investing 
in stock markets and it is particularly so in Asia. While political risk can 
lead to falls in stock markets, it can also lead to opportunities for gains. 
One of the reasons why Asian markets have typically traded at lower valuations 
than, say, America is the political risk discount.  The recent US Executive 
Order restricting US persons from investing in certain Chinese companies has 
affected some of our institutional shareholders who manage money on behalf of 
American citizens. 
 
Neil Rogan 
 
Chairman 
 
25 January 2021 
 
Portfolio Manager's Report 
 
Portfolio Manager 
 
Ian Hargreaves was promoted to Co-Head of the Asian & Emerging Markets Equities 
team in September 2018. Ian manages pan-Asian portfolios and covers the entire 
Asian region in his remit. He started his investment career with Invesco Asia 
Pacific in Hong Kong in 1994 as an investment analyst where he was responsible 
for coverage of Indonesia, South Korea and the Indian sub-continent, as well as 
managing several regional institutional client accounts. Ian returned to the UK 
to join Invesco's Asian Equities team in 2005, working on the portfolio as part 
of the investment team. He was appointed as joint Portfolio Manager in 2011 and 
became the sole Portfolio Manager on 1 January 2015. 
 
How has the company performed in the period under review? 
 
The Company's net asset value increased by 24.0% (total return, in sterling 
terms) over the six months to 31 October 2020, which compares to the benchmark 
MSCI AC Asia ex Japan Index return of 18.9%. 
 
Markets enjoyed a strong recovery over the six month period, boosted by 
significant stimulus from central banks and the reopening of economies across 
the world as Covid-19 lockdowns were lifted. There has also been optimism 
surrounding progress on a Covid-19 vaccine and an ongoing economic recovery. 
While the recovery in markets has been V-shaped, there has been a marked 
divergence in performance between sectors, as healthcare, internet and 
technology companies have fared far better than financials, energy and 
travel-related companies. 
 
There has also been a marked turnaround in relative performance for the 
portfolio, which has been pleasing to see given the changes we made earlier in 
the year. Having begun the year with a tilt towards more cyclical areas, 
reflecting our expectation that they would benefit from a gradual cyclical 
recovery in 2020, the portfolio was repositioned to account for the sudden 
change in outlook for economic growth brought about by the pandemic. The most 
significant adjustment being a reduction in exposure to financials. However, we 
did not want to reduce the portfolio's ability to participate in a rebound. 
Rather than taking defensive action and shifting exposure to less economically 
sensitive areas with steady earnings streams, such as utilities or consumer 
staples companies, we preferred to add to selected cyclical businesses that had 
scope for earnings to recover quickly as conditions normalise. We have been 
able to find what we consider to be deep discounts to fair value in these 
areas, with conviction levels supported by the strong balance sheets that some 
of these companies have. 
 
What have been the biggest contributors? And detractors? 
 
Technology and internet companies have been the best performers over the 
period, further demonstrating the appeal of their strong fundamentals and 
attractive growth prospects. Taiwanese memory chip designer MediaTek was the 
biggest contributor thanks to robust demand for its higher margin 5G chip and 
excitement over its new high-end, next generation microprocessor that helps 
process AI (artificial intelligence) tasks faster, using less power. Delta 
Electronics benefited from its exposure to major industry trends (5G, 
automation and cloud) that should support a recovery in margins and deliver 
more sustainable growth over the medium-term, while ASUSTeK Computer has seen 
strong demand for PCs and notebooks given the working/studying from home trend. 
Taiwan Semiconductor Manufacturing also made strong gains, with investors 
increasingly focused on the upside potential from Intel outsourcing some of its 
chip production, a move that could see the size of its total addressable market 
increase by around 40%. Chinese internet companies have continued to 
outperform, with JD.com and NetEase both adding value as solid Q1 earnings 
reflected the fact that e-commerce and online gaming companies had seen little 
disruption to their business and may have even benefitted from the stay-at-home 
trend. Both companies also enjoyed successful secondary listings in Hong Kong. 
The portfolio's exposure to Chinese consumer-related companies has also 
contributed positively. Baijiu distiller Jiangsu Yanghe Brewery and fitted 
furniture manufacturer Suofeiya Home Collection (both A-shares) saw evidence of 
a strong recovery in demand as lockdowns were lifted. 
 
More recently, auto-related stocks have been a support. Hyundai Motor has 
benefited from a recovery in sales, particularly in its home market where there 
is strong demand for its new, higher margin, SUV models; while the market has 
also turned more positive on its electric vehicle (EV) business plans. Mahindra 
& Mahindra has enjoyed strong tractor sales while Minth Group made large gains 
after bullish comments from management raised expectations over its new battery 
housing business, which is expected to make a growing contribution to revenues 
next year. 
 
On the other hand, China Mobile detracted as the market continued to show a 
preference for stocks with higher growth characteristics. Stock selection in 
the energy sector counted against us as CNOOC underperformed given the prospect 
of slowing demand and a weakening oil price. CK Hutchison has also proved to be 
Covid-19 sensitive, with weaker earnings from its ports, retail and energy & 
infrastructure businesses. However, the business continues to be well managed, 
and as conditions normalise, we would expect the group to return to delivering 
good earnings growth and generating strong free cash flow. The recently 
announced deal to sell its European telecom towers will also help reduce 
gearing and could be a positive catalyst for the share price. 
 
Finally, financials remained out of favour, with our holdings in banks and 
insurance companies detracting from performance. While there are legitimate 
concerns surrounding low-rates, slow growth and rising, non-performing loans 
(NPLs) we believe the market has mispriced the risks for better quality 
operators with strong capital positions. 
 
Key                                         Total 
 
Contributors                             impact % 
 
MediaTek                                     1.59 
 
JD.com                                       1.35 
 
Jiangsu Yanghe Brewery                       0.81 
 
Mahindra & Mahindra                          0.58 
 
Suofeiya Home Collection                     0.40 
 
Key                                         Total 
 
Detractors                               impact % 
 
China Mobile                                -0.81 
 
CNOOC                                       -0.58 
 
CK Hutchison                                -0.52 
 
China Pacific Insurance                     -0.47 
 
Korean Reinsurance                          -0.40 
 
How has positioning changed? 
 
We continue to believe that buying businesses for less than they are worth is 
the most sustainable way to make money for shareholders. 
 
Technology and internet companies have been big beneficiaries of a new tech 
cycle with the launch of 5G networks, and changes in consumer behaviour, such 
as working from home and an increase in the trend towards online shopping. 
However, the strong gains seen in share prices year-to-date suggest their 
strong fundamentals and improved earnings prospects are being increasingly 
recognised, and we have been taking profits. 
 
The healthcare sector remains an area of the market where we have only limited 
exposure, given that we generally find valuations very rich. Some sub-sectors, 
such as biotech and contract research organisation (CRO), have what we consider 
to be an unfavourable balance of risk/reward given the difficulty in 
forecasting R&D success, without which there could be significant downside 
risk. The valuations of the more traditional Chinese pharma companies are more 
reasonable, but this reflects a hostile regulatory environment that is and will 
continue to lead to price deflation in traditional chemical drugs. The Chinese 
government is keen to lower pricing to mitigate the cost of providing broader 
medical expense cover. This usually means lower profitability levels which 
justifies a lower valuation. 
 
We are looking for new ideas trading at significant discounts to our estimate 
of fair value, with deep discounts currently available in more cyclical areas 
of the market, where there is less confidence in the pace of recovery. The 
companies that interest us most tend to be Covid-19 sensitive industrials where 
the pandemic is unlikely to have materially changed fundamentals, but earnings 
can recover quicker than the market expects as conditions normalise. 
 
Astra International is a good example, with interests in a wide range of market 
leading auto-related businesses in Indonesia, including: 4-wheeler 
manufacturing for Toyota; 2-wheeler manufacturing for Honda; auto dealerships 
and auto financing. Having struggled with slower growth in recent years, the 
shares de-rated even further given Covid-19 related demand uncertainty. While 
the fundamentals of the Indonesian economy are weak in the near-term, we 
believe that auto demand should eventually grow as Gross Domestic Product (GDP) 
per capita rises, while Astra should also benefit from new Toyota model 
launches expected in 2021. 
 
Another example of an under appreciated investment opportunity is Yue Yuen 
Industrial, the world's largest sports shoe manufacturer, serving global brands 
such as Nike, Adidas and Asics. . While retail sales in developed markets have 
recovered strongly, Yue Yuen's earnings may lag given the need to destock 
inventories, but by early next year sales should be beginning to return to 
normal. The share price, still around 30% below where it was in January, 
reflects little hope of recovery. The fact that the company has also spent the 
last couple of years focused on relocating manufacturing capacity outside 
China, investing in automation and a new enterprise resource planning (ERP) 
system to enable it to better manage shorter lead times from customers, should 
aid its eventual earnings recovery. We feel that a single digit normalised p/e 
represents a significant discount to fair value. 
 
We have also been able to find compelling prospects which are less Covid-19 
sensitive. For example, we have been adding to ASUSTeK Computer, given that we 
expect the PC and motherboard manufacturer to be able to continue to generate 
strong free cash flow, supported by work from home trends and strong growth in 
gaming. Furthermore, the value of its stakes in Pegatron, Advantech and Asmedia 
plus net cash is more than ASUSTeK's current market capitalisation. 
 
Finally, there have been a few small changes in  our financials exposure, where 
we retain a preference for groups with a decent level of core profitability and 
structural growth potential, such as Indian private banks and Chinese life 
insurers. Over the period, we sold HDFC Bank and took advantage of share price 
weakness to introduce Housing Development Finance preferred for its improvement 
in competitive intensity, a low base in the property cycle and medium-term 
growth potential from higher mortgage penetration. In Korea, we sold Korean 
Reinsurance and introduced Samsung Fire & Marine, an insurer that has been 
gradually improving its underwriting business, which should lead to higher 
profitability and earnings growth, in our view. 
 
Where else do you see opportunity? 
 
India remains the portfolio's biggest country overweight. Within Asia, it has 
probably had the worst pandemic experience in terms of impact on its 
population's health and the sharp shock felt by the economy as a result of what 
was a largely ineffectual lockdown strategy. The Indian government was swift to 
abandon this strategy and has instead focussed attention on support for the 
economy, which appears to be working. Domestically driven, India's economy is 
open for business again and with infection and death rates falling there is 
less concern about having to protect a Covid-19 'clean sheet'. 
 
From a top-down perspective we remain positive for several reasons: India is at 
the bottom of its credit cycle, with Credit/GDP almost unchanged since the 
Global Financial Crisis (GFC), providing scope for a pick-up in credit growth 
that should support broader economic growth. We are also encouraged by positive 
reform momentum. While some measures have led to short-term economic pain, they 
should bear fruit within our investment horizon, with the recent new labour 
code likely to help incentivise investment and small business creation. 
 
We have recently added exposure to Indian private banks, which are still taking 
market share from the dominant, less well-run state-owned banks. We are also 
comfortable owning other economically sensitive stocks in India given the large 
structural growth opportunities. This year we've seen some solid and 
well-managed companies suffer from the lack of economic activity, which has 
allowed us to take positions at historically attractive valuations. For 
example, we had added to Larsen & Toubro (L&T) which is not only a leading 
construction and infrastructure business with a strong balance sheet - a 
characteristic we value in these uncertain times - but is a beneficiary of a 
return to normality. Our analysis suggests that L&T's core engineering & 
construction business is being valued below the level it reached during the 
GFC. 
 
Do you see any change in US-China relations given the US election result? 
 
The relationship between the US and China is unlikely to improve dramatically 
due to a change of President, with tensions likely to remain for the 
foreseeable future. While we expect US policy under Joe Biden to be handled 
more diplomatically, and less haphazardly, it is prudent to assume that Biden 
will be slow to roll back the Trump administration's measures targeting trade, 
technology or financial markets. 
 
Following the interim period-end, the former US President issued an order 
imposing restrictions on US persons from investing in certain named Chinese 
companies, with which the Company will comply. 
 
What is your outlook for further out 
 
The pandemic has been enormously disruptive, but Asia has fared relatively well 
compared 
 
to other regions, with activity levels now back to pre Covid-19 levels in many 
sectors. The global economy is also gradually getting back to normal, supported 
by a demand recovery in the US and Europe. However, a second/third wave of 
infections remains a concern, particularly given the likelihood that renewed 
lockdowns will see a slowing in economic momentum, a set-back for the global 
recovery. 
 
The prospect of several successful vaccines being ready for distribution in the 
new year has given markets a lift, particularly the worst hit Covid-19 
sensitive service sectors. Not only that, but a scenario in which we have an 
effective vaccine sooner than expected, sees improved earnings prospects for 
undervalued cyclical stocks that we favour. However, there are still challenges 
ahead, specifically concerning how vaccination programs might be successfully 
rolled out on such a large scale. 
 
In the near-term, the global liquidity environment is likely to remain 
accommodative given the unprecedented scale of policy support. Monetary and 
fiscal stimulus measures combined should provide a tailwind to economic 
activity, with policymakers unlikely to repeat the mistakes of the recent past 
in trying to withdraw support too early. However, once normality has returned, 
governments in developed markets will be forced to begin to chart a course back 
to policy orthodoxy. This is likely to present a risk to more highly rated 
stocks, but would benefit cyclicals. 
 
In Asia, most countries went into the crisis with relatively low levels of 
government debt, which means they may not need to revert to austerity once the 
crisis is over. Furthermore, economic growth in China is recovering without the 
authorities having to rely on the sort of fiscal impulse manufactured in 
developed economies. 
 
While stock markets currently have policy and vaccine tailwinds behind them, we 
feel it important not to exaggerate the likely positive impact of economic 
normalisation. Markets have done very well since they bottomed in March, with 
the MSCI Asia ex Japan Index currently on a forward P/E of around 16x 2021 
earnings, which is toward the upper end of its historic range, albeit still 
comparing favourably relative to developed markets. Current consensus estimates 
for earnings growth in 2021 of around 24% appear to reflect a degree of 
optimism in expectations. Given the wide divergence in performance and 
valuation between sectors and countries, opportunities are still available, 
particularly in undervalued cyclical stocks. However, we feel the need to be 
selective and maintain a balanced portfolio. 
 
Ian Hargreaves 
 
Portfolio Manager 
 
25 January 2021 
 
Principal Risks and Uncertainties 
 
The Board has carried out a robust assessment of the risks facing the Company, 
including emerging risks. These include those that would threaten its business 
model, future performance, solvency and liquidity. The principal risks that 
follow are those identified by the Board after consideration of mitigating 
factors. 
 
Category and Principal Risk Description       Mitigating Procedures and Controls 
 
Strategic Risk 
 
Market and Political Risk                     The Company has a diversified investment 
The Company's investments are traded on Asian portfolio by country and by stock. Its 
and Australasian stock markets as well as the investment trust structure means no forced 
UK. The principal risk for investors in the   sales need to take place and investments can 
Company is a significant fall and/or a        be held over a longer term horizon. The 
prolonged period of decline in these markets. Manager evaluates and assesses political risk 
This could be triggered by unfavourable       as part of the stock selection and asset 
developments within the region or events      allocation policy which is monitored at every 
outside it. The extreme volatility            Board meeting. 
experienced in March 2020 from the market     However, there are few ways to mitigate 
reaction to the Covid-19 virus exemplifies    absolute market and political risk because it 
this risk, which has had a marked effect on   is engendered by factors which are outside 
both the valuation of the Company's portfolio the control of the Board and the Manager. 
of investments and the discount to net asset  These factors include the general health of 
value at which the Company's shares trade     the world economy, interest rates, inflation, 
during the period.                            government policies, industry conditions, 
Political developments can also create risks  political and diplomatic events, changes to 
to the value of the Company's assets, such as legislation, and changing investor demand. 
US-China trade tensions and unrest in Hong    Such factors may give rise to high levels of 
Kong, or impact on the GBP foreign exchange   volatility in the prices of investments held 
rate as a result of Brexit.  Political risk   by the Company. 
has always been a feature of investing in 
stock markets and it is particularly so in 
Asia. Asia encompasses a variety of political 
systems and there are many examples of 
diplomatic skirmishes and military tensions, 
and sometimes these resort to military 
engagement. Moreover, the involvement in Asia 
of the United States and European countries 
can reduce or raise tensions. 
 
Investment Objectives                         The Board receives regular reports reviewing 
The Company's investment objectives and       the Company's investment performance against 
structure are no longer meeting investors'    its stated objectives and peer group, and 
demands.                                      reports from discussions with its brokers and 
                                              major shareholders. The Board also has a 
                                              separate annual strategy meeting. 
 
Wide Discount                                 The Board receives regular reports from both 
Lack of liquidity and lack of marketability   the Manager and the Company's broker on the 
of the Company's shares leading to stagnant   Company's share price performance, level of 
share price and wide discount.                share price discount to NAV and recent 
Persistently high discount may lead to        trading activity in the Company's shares. It 
buybacks of the Company's shares and          may seek to reduce the volatility and 
resulting in the shrinkage of the Company.    absolute level of the share price discount to 
                                              NAV for shareholders through buying back 
                                              shares within the stated limit. The Board 
                                              also receives regular reports on marketing 
                                              meetings with shareholders and prospective 
                                              investors and works to ensure that the 
                                              Company's investment proposition is actively 
                                              marketed through relevant messaging across 
                                              many distribution channels. 
 
Investment Management Risk 
 
Performance                                   The Board regularly compares the Company's 
Portfolio Manager consistently underperforms  NAV performance over both the short and long 
the benchmark and/or peer group over 3-5      term to that of the benchmark and peer group 
years.                                        as well as reviewing the portfolio's 
                                              performance against the benchmark 
                                              (attribution) and risk adjusted performance 
                                              (volatility, beta, tracking error, Sharpe 
                                              ratio) of the Company and versus its peers. 
                                              The Board also receives reports on and 
                                              reviews: the portfolio, transactions in the 
                                              period, active positions, gearing position 
                                              and, if applicable, hedging. 
 
Key Person Dependency                         The Portfolio Manager works within, and is 
The Portfolio Manager (Ian Hargreaves) ceases Co-Head of Invesco's Asian & Emerging Markets 
to be Portfolio Manager or is incapacitated   Equities team with William Lam. Ian is 
or otherwise unavailable.                     supported by Fiona Yang and the wider team. 
 
Currency Fluctuation Risk                     With the exception of borrowings in foreign 
Exposure to currency fluctuation risk         currency, the Company does not normally hedge 
negatively impacts the Company's NAV. The     its currency positions but may do so should 
movement of exchange rates may have an        the Portfolio Manager or the Board deem this 
unfavourable or favourable impact on returns  to be appropriate. Contracts are limited to 
as nearly all of the Company's assets are     currencies and amounts commensurate with the 
non-sterling denominated.                     asset exposure. The foreign currency exposure 
                                              of the Company is reviewed at Board meetings. 
 
Third Party Service Providers (TPPs) Risk 
 
Unsatisfactory Performance of Third Party     Details of how the Board monitors the 
Service Providers                             services provided by the Manager and other 
Failure by any service provider to carry out  third party service providers, and the key 
its obligations to the Company in accordance  elements designed to provide effective 
with the terms of its appointment could have  internal control, are included in the 
a materially detrimental impact on the        internal control and risk management section 
operations of the Company and could affect    on page 19 of the Company's 2020 annual 
the ability of the Company to successfully    financial report. 
pursue its investment policy and expose the 
Company to reputational risk. Disruption to 
the accounting, payment systems or custody 
records could prevent the accurate reporting 
and monitoring of the Company's financial 
position. 
 
Information Technology Resilience and         As well as regular review of TPPs' audited 
Security                                      service organisation control reports by the 
The Company's operational structure means     Audit Committee, the Board receives regular 
that the main cyber risk (information and     updates on the Manager's information and 
physical security) arises at its third party  cyber security. The Board monitors TPPs' 
service providers. This cyber risk includes   business continuity plans and testing - 
fraud, sabotage or crime perpetrated against  including the TPPs and Manager's regular 
the Company or any of its TPPs.               'live' testing of workplace recovery 
                                              arrangements. 
 
Operational Resilience                        The Manager's business continuity plans are 
The Company's operational capability relies   reviewed on an ongoing basis and the 
upon the ability of its TPPs to continue      Directors are satisfied that the Manager has 
working throughout the disruption caused by a in place robust plans and infrastructure to 
major event such as the Covid-19 pandemic.    minimise the impact on its operations so that 
                                              the Company can continue to trade, meet 
                                              regulatory obligations, report and meet 
                                              shareholder requirements. 
                                              As the impact of Covid-19 continues, the 
                                              Manager has mandated work from home 
                                              arrangements and implemented split team 
                                              working for those whose work is deemed 
                                              necessary to be carried out on business 
                                              premises. Any meetings are held virtually or 
                                              via conference calls. Other similar working 
                                              arrangements are in place for the Company's 
                                              third-party service providers. The Board 
                                              receives regular update reports from the 
                                              Manager and TPPs on business continuity 
                                              processes. 
 
Twenty-five Largest Holdings 
 
AT 31 OCTOBER 2020 
 
Ordinary shares unless stated otherwise 
 
? The industry group is based on MSCI and Standard & Poor's Global Industry 
Classification Standard. 
 
                                                                           At Market 
 
                                                                               Value      % of 
 
Company                   Industry group?                   Country            £'000 Portfolio 
 
TencentR                  Media & Entertainment             China             20,479       8.4 
 
Alibaba - ADS             Retailing                         China             18,752       7.7 
 
Samsung Electronics       Technology Hardware & Equipment   South Korea       17,202       7.1 
 
Taiwan Semiconductor      Semiconductors & Semiconductor    Taiwan            16,368       6.8 
Manufacturing             Equipment 
 
MediaTek                  Semiconductors & Semiconductor    Taiwan            10,926       4.5 
                          Equipment 
 
JD.com - ADR              Retailing                         China              9,027       3.7 
 
ICICI - ADR               Banks                             India              7,200       3.0 
 
AIA                       Insurance                         Hong Kong          6,693       2.8 
 
Hyundai Motor -           Automobiles & Components          South Korea        6,426       2.7 
preference shares 
 
Housing Development       Banks                             India              6,252       2.6 
Finance 
 
NetEase - ADR             Media & Entertainment             China              5,793       2.4 
 
ASUSTeK Computer          Technology Hardware & Equipment   Taiwan             5,687       2.3 
 
Jiangsu Yanghe BreweryA   Food, Beverage & Tobacco          China              5,613       2.3 
 
China MobileR             Telecommunication Services        China              5,367       2.2 
 
Mahindra & Mahindra       Automobiles & Components          India              5,168       2.1 
 
Delta Electronics         Technology Hardware & Equipment   Taiwan             4,915       2.0 
 
CNOOCR                    Energy                            China              4,890       2.0 
 
China Pacific InsuranceH  Insurance                         China              4,866       2.0 
 
Hon Hai Precision         Technology Hardware & Equipment   Taiwan             4,589       1.9 
Industry 
 
Larsen & Toubro           Capital Goods                     India              4,540       1.9 
 
POSCO                     Materials                         South Korea        4,169       1.7 
 
Suofeiya Home CollectionA Consumer Durables & Apparel       China              3,892       1.6 
 
LG                        Capital Goods                     South Korea        3,870       1.6 
 
United Overseas Bank      Banks                             Singapore          3,725       1.6 
 
Aurobindo Pharma          Pharmaceuticals, Biotechnology &  India              3,566       1.5 
                          Life Sciences 
 
                                                                             189,975      78.4 
 
Other Investments (27)                                                        52,401      21.6 
 
Total Holdings (52)                                                          242,376    100.0 
 
ADR/ADS:               American Depositary Receipts/Shares - are certificates 
that represent shares in the relevant stock and are issued by a US bank. They 
are denominated and pay dividends in US dollars. 
 
H:             H-Shares - shares issued by companies incorporated in the 
People's Republic of China (PRC) and listed on the Hong Kong Stock Exchange. 
 
R:             Red Chip Holdings - holdings in companies incorporated outside 
the PRC, listed on the Hong Kong Stock Exchange, and controlled by PRC entities 
by way of direct or indirect shareholding and/or representation on the board. 
 
A:             A-shares are shares that denominated in Renminbi and traded on 
the Shanghai and Shenzhen stock exchanges. 
 
Governance 
 
Going Concern 
 
The financial statements have been prepared on a going concern basis. 
 
The Directors took into consideration the uncertain economic outlook in the 
wake of the Covid-19 pandemic and the operational implications and consider the 
preparation of the financial statements on a going concern basis to be the 
appropriate basis. The Directors have a reasonable expectation that the Company 
has adequate resources to continue in operational existence for the foreseeable 
future, being taken as 12 months after signing the balance sheet, for the same 
reasons as set out in the Viability Statement in the Company's 2020 annual 
financial report. In considering this, the Directors took into account: 
 
.               the diversified portfolio of readily realisable securities 
which can be used to meet short-term funding commitments; 
 
.               the ability of the Company to meet all of its liabilities and 
ongoing expenses from its assets; and 
 
.               revenue forecasts for the forthcoming year. 
 
As discussed in Principal Risks and Uncertainties, the Company's operations and 
those of its core service providers have been adapted to deal with the 
restrictions imposed in the UK as a result of the Covid-19 pandemic. 
 
Related Party Transactions 
 
Under United Kingdom Generally Accepted Accounting Practice (UK Accounting 
Standards and applicable law), the Company has identified the Directors as 
related parties. No other related parties have been identified. No transactions 
with related parties have taken place which have materially affected the 
financial position or the performance of the Company. 
 
Directors' Responsibility Statement 
 
in respect of the preparation of the half-yearly financial report 
 
The Directors are responsible for preparing the half-yearly financial report 
using accounting policies consistent with applicable law and UK Accounting 
Standards. 
 
The Directors confirm that to the best of their knowledge: 
 
-  the condensed set of financial statements contained within the half-yearly 
financial report have been prepared in accordance with the FRC's FRS 104 
Interim Financial Reporting; 
 
-  the interim management report includes a fair review of the information 
required by 4.2.7R and 4.2.8R of the FCA's Disclosure Guidance and Transparency 
Rules; and 
 
-  the interim management report includes a fair review of the information 
required on related party transactions. 
 
The half-yearly financial report has not been audited or reviewed by the 
Company's auditor. 
 
Signed on behalf of the Board of Directors. 
 
Neil Rogan 
 
Chairman 
 
25 January 2021 
 
Condensed Income Statement 
 
FOR THE SIX MONTHSED 31 OCTOBER 
 
                                                31 October 2020              31 October 2019 
 
                                           Revenue  Capital      Total  Revenue  Capital      Total 
 
                                            return   return     return   return   return     return 
 
                                             £'000    £'000      £'000    £'000    £'000      £'000 
 
Gains/(losses) on investments held at            -   42,366     42,366        - (12,353)   (12,353) 
fair value 
 
Gains on foreign exchange                        -      163        163        -      373        373 
 
Income - note 2                              3,753        -      3,753    5,045        -      5,045 
 
Investment management fee - note 3           (210)    (629)      (839)    (208)    (624)      (832) 
 
Other expenses                               (286)      (3)      (289)    (305)      (1)      (306) 
 
Net return before finance costs and          3,257   41,897     45,154    4,532 (12,605)    (8,073) 
taxation 
 
Finance costs - note 3                        (13)     (39)       (52)      (9)     (28)       (37) 
 
Return on ordinary activities before         3,244   41,858     45,102    4,523 (12,633)    (8,110) 
taxation 
 
Tax on ordinary activities - note 4          (321)        -      (321)    (442)        -      (442) 
 
Return on ordinary activities after          2,923   41,858     44,781    4,081 (12,633)    (8,552) 
taxation for the financial period 
 
Return per ordinary share 
 
Basic                                        4.37p   62.61p     66.98p    5.83p  (18.05)   (12.22)p 
                                                                                       p 
 
Weighted average number of ordinary                         66,853,287                   69,980,943 
shares in issue during the period 
 
The total column of this statement represents the Company's profit and loss 
account, prepared in accordance with UK Accounting Standards. The return on 
ordinary activities after taxation is the total comprehensive income and 
therefore no additional statement of other comprehensive income is presented. 
The supplementary revenue and capital columns are presented for information 
purposes in accordance with the Statement of Recommended Practice issued by the 
Association of Investment Companies. All items in the above statement derive 
from continuing operations of the Company. No operations were acquired or 
discontinued in the period. 
 
Condensed Statement of Changes in Equity 
 
FOR THE SIX MONTHSED 31 OCTOBER 
 
                                                 Capital 
 
                                        Share Redemption   Special  Capital   Revenue 
 
                                      Capital    Reserve   Reserve  Reserve   Reserve    Total 
 
                                        £'000      £'000     £'000    £'000     £'000    £'000 
 
For the six months ended 31 October 
2020 
 
At 30 April 2020                        7,500      5,624    34,827  134,968     4,029  186,948 
 
Return on ordinary activities               -          -         -   41,858     2,923   44,781 
 
At 31 October 2020                      7,500      5,624    34,827  176,826     6,952  231,729 
 
For the six months ended 31 October 
2019 
 
At 30 April 2019                        7,500      5,624    45,015  163,763     5,473  227,375 
 
Return on ordinary activities               -          -         - (12,633)     4,081  (8,552) 
 
Dividends paid - note 5                     -          -         -        -   (2,028)  (2,028) 
 
Shares bought back and held in              -          -   (2,752)        -         -  (2,752) 
treasury 
 
At 31 October 2019                      7,500      5,624    42,263  151,130     7,526  214,043 
 
Condensed Balance Sheet 
 
Registered Number 3011768 
 
                                                                            At            At 
 
                                                                    31 October      30 April 
 
                                                                          2020          2020 
 
                                                                         £'000         £'000 
 
Fixed assets 
 
Investments held at fair value through profit or loss - note 7         242,376      195,915 
 
Current assets 
 
  Tax recoverable                                                          228           145 
 
  VAT recoverable                                                           23            24 
 
  Prepayments and accrued income                                           164           272 
 
  Cash and cash equivalents                                                316         1,623 
 
                                                                           731         2,064 
 
Creditors: amounts falling due within one year 
 
  Bank overdraft                                                         (318)             - 
 
  Bank facility                                                        (8,839)      (10,354) 
 
  Amounts due to brokers                                               (1,579)         (112) 
 
  Accruals                                                               (642)         (565) 
 
                                                                      (11,378)      (11,031) 
 
Net current liabilities                                               (10,647)       (8,967) 
 
Net assets                                                             231,729       186,948 
 
Capital and reserves 
 
Share capital                                                            7,500         7,500 
 
Other reserves: 
 
  Capital redemption reserve                                             5,624         5,624 
 
  Special reserve                                                       34,827        34,827 
 
  Capital reserve                                                      176,826       134,968 
 
  Revenue reserve                                                        6,952         4,029 
 
Total shareholders' funds                                              231,729       186,948 
 
Net asset value per ordinary share 
 
Basic                                                                  346.62p       279.64p 
 
Number of 10p ordinary shares in issue at the period end - note     66,853,287    66,853,287 
6 
 
Notes to the Financial Condensed Statements 
 
1.          Accounting Policies 
 
The condensed financial statements have been prepared in accordance with 
applicable United Kingdom Accounting Standards and applicable law (UK Generally 
Accepted Accounting Practice), including FRS 102 The Financial Reporting 
Standard applicable in the UK and Republic of Ireland, FRS 104 Interim 
Financial Reporting and the Statement of Recommended Practice Financial 
Statements of Investment Trust Companies and Venture Capital Trusts, issued by 
the Association of Investment Companies in October 2019. The financial 
statements are issued on a going concern basis. 
 
The accounting policies applied to these condensed financial statements are 
consistent with those applied in the financial statements for the year ended 30 
April 2020. 
 
2.          Income 
 
                                                           Six months to   Six months to 
 
                                                              31 October      31 October 
 
                                                                    2020            2019 
 
                                                                   £'000           £'000 
 
Income from investments 
 
Overseas dividends  - ordinary                                     3,605           4,931 
 
                                - special                            148             107 
 
Deposit interest                                                       -               7 
 
Total income                                                       3,753           5,045 
 
No special dividends have been recognised in capital during the period (31 
October 2019: £nil). 
 
3.          Management Fee and Finance costs 
 
Investment management fee and finance costs on any borrowings are charged 75% 
to capital and 25% to revenue. A management fee is payable quarterly in arrears 
and is equal to 0.75% per annum of the value of the Company's total assets less 
current liabilities (including any short term borrowings) under management at 
the end of the relevant quarter and 0.65% per annum for any net assets over £ 
250 million. 
 
4.          Taxation and Investment Trust Status 
 
It is the intention of the Directors to conduct the affairs of the Company so 
that it satisfies the conditions for approval as an investment trust company. 
As such, no tax liability arises on capital gains. The tax charge represents 
withholding tax suffered on overseas income. 
 
5.          Dividends paid on Ordinary Shares 
 
As noted in the Chairman's Statement, an interim dividend of 6.70p per share 
was paid on 26 November 2020 to shareholders on the register on 6 November 
2020. Shares were marked ex-dividend on 5 November 2020. 
 
In accordance with accounting standards, dividends payable after the period end 
have not been recognised as a liability. 
 
6.          Share Capital, including Movements 
 
(a)        Ordinary Shares of 10p each 
 
                                                            Six months to       Year to 
 
                                                               31 October      30 April 
 
                                                                     2020          2020 
 
Number of ordinary shares: 
 
Brought forward                                                66,853,287    70,469,475 
 
Shares bought back into                                                 -   (3,616,188) 
treasury 
 
Carried forward                                                66,853,287    66,853,287 
 
(b)        Treasury Shares 
 
                                                            Six months to       Year to 
 
                                                               31 October      30 April 
 
                                                                     2020          2020 
 
Number of treasury shares: 
 
Brought forward                                                 8,146,594     4,530,406 
 
Shares bought back into                                                 -     3,616,188 
treasury 
 
Carried forward                                                 8,146,594     8,146,594 
 
Ordinary shares in issue                                       74,999,881    74,999,881 
(including treasury) 
 
Subsequent to the period end nil shares were bought back. 
 
7.          Classification Under Fair Value Hierarchy 
 
FRS 102 sets out three fair value levels. These are: 
 
Level 1 - The unadjusted quoted price in an active market for identical assets 
that the entity can access at the measurement date. 
 
Level 2 - Inputs other than quoted prices included within Level 1 that are 
observable (i.e. developed using market data) for the asset or liability, 
either directly or indirectly. 
 
Level 3 - Inputs are unobservable (i.e. for which market data is unavailable) 
for the asset or liability. 
 
The fair value hierarchy analysis for investments held at fair value at the 
period end is as follows: 
 
                                                                 31 October     30 April 
 
                                                                       2020         2020 
 
                                                                      £'000        £'000 
 
Financial assets designated 
at fair value 
 
Level 1                                                             242,248      195,054 
 
Level 2                                                                   -          738 
 
Level 3                                                                 128          123 
 
Total for financial assets                                          242,376      195,915 
 
The Level 3 investment consists of one holding in Lime Co. (30 April 2020: Lime 
Co.). 
 
8.          Status of Half-Yearly Financial Report 
 
The financial information contained in this half-yearly report does not 
constitute statutory accounts as defined in section 434 of the Companies Act 
2006. The financial information for the half years ended 31 October 2020 and 31 
October 2019 has not been audited. The figures and financial information for 
the year ended 30 April 2020 are extracted and abridged from the latest audited 
accounts and do not constitute the statutory accounts for that year. Those 
accounts have been delivered to the Registrar of Companies and included the 
Report of the Independent Auditor, which was unqualified and did not include a 
statement under section 498 of the Companies Act 2006. 
 
By order of the Board 
 
Invesco Asset Management Limited 
 
Company Secretary 
 
25 January 2021 
 
Glossary of Terms and Alternative Performance Measures 
 
Alternative Performance Measure (APM) 
 
An APM is a measure of performance or financial position that is not defined in 
applicable accounting standards and cannot be directly derived from the 
financial statements. The calculations shown in the corresponding tables are 
for the six months ended 31 October 2020, the six months ended 31 October 2019 
and the year ended 30 April 2020. The APMs listed here are widely used in 
reporting within the investment company sector and consequently aid 
comparability. 
 
Benchmark (or Benchmark Index) 
 
A standard against which performance can be measured, usually an index that 
averages the performance of companies in a stock market or a segment of the 
market. The benchmark used in these accounts is the MSCI AC Asia ex Japan 
Index. This benchmark index does not include Australia and New Zealand. 
 
Discount/Premium (APM) 
 
Discount is a measure of the amount by which the mid-market price of an 
investment company share is lower than the underlying net asset value (NAV) of 
that share. Conversely, Premium is a measure of the amount by which the 
mid-market price of an investment company share is higher than the underlying 
net asset value of that share. In this interim financial report the discount is 
expressed as a percentage of the net asset value per share and is calculated 
according to the formula set out below. If the shares are trading at a premium 
the result of the below calculation will be positive and if they are trading at 
a discount it will be negative. 
 
                                                                     At 31 October At 30 April 
 
                                                     Page                     2020        2020 
 
Share price                                             1          a       304.50p     254.00p 
 
Net asset value per share - cum income                  1          b       346.62p     279.64p 
 
Discount - cum income                                     c = (a-b)/       (12.2)%      (9.2)% 
                                                                   b 
 
The average discount for the period/year is the arithmetic average, over a 
period/year, of the daily discount calculated on the same basis as shown above. 
 
Gearing 
 
The gearing percentage reflects the amount of borrowings that a company has 
invested. This figure indicates the extra amount by which net assets, or 
shareholders' funds, would move if the value of a company's investments were to 
rise or fall. A positive percentage indicates the extent to which net assets 
are geared; a nil gearing percentage, or 'nil', shows a company is ungeared. A 
negative percentage indicates that a company is not fully invested and is 
holding net cash as described below. 
 
There are several methods of calculating gearing and the following has been 
used in this report: 
 
Gross Gearing (APM) 
 
This reflects the amount of gross borrowings in use by a company and takes no 
account of any cash balances. It is based on gross borrowings as a percentage 
of net assets. 
 
                                                                       At 31 At 30 April 
                                                                     October 
 
                                                                        2020        2020 
 
                                                  Page                 £'000       £'000 
 
Bank overdraft                                      13                   318           - 
 
Bank facility                                       13                 8,839      10,354 
 
Gross borrowings                                               a       9,157      10,354 
 
Net asset value                                     13         b     231,729     186,948 
 
Gross gearing                                            c = a/b        4.0%        5.5% 
 
Net Gearing or Net Cash (APM) 
 
Net gearing reflects the amount of net borrowings invested, i.e. borrowings 
less cash and cash equivalents (incl. investments in money market funds). It is 
based on net borrowings as a percentage of net assets. Net cash reflects the 
net exposure to cash and cash equivalents, as a percentage of net assets, after 
any offset against total borrowings. 
 
                                                                       At 31 At 30 April 
                                                                     October 
 
                                                                        2020        2020 
 
                                                  Page                 £'000       £'000 
 
Bank overdraft                                      13                   318           - 
 
Bank facility                                       13                 8,839      10,354 
 
Less: cash and cash equivalents                     13                 (316)     (1,623) 
 
Less: Invesco Liquidity Fund - US Dollar                                   -       (738) 
(money market fund) 
 
Net borrowings                                                 a       8,841       7,993 
 
Net asset value                                     13         b     231,729     186,948 
 
Net gearing                                              c = a/b        3.8%        4.3% 
 
Net Asset Value (NAV) 
 
Also described as shareholders' funds the NAV is the value of total assets less 
liabilities. Liabilities for this purpose include current and long-term 
liabilities. The NAV per ordinary share is calculated by dividing the net 
assets by the number of ordinary shares in issue. For accounting purposes 
assets are valued at fair (usually market) value and liabilities are valued at 
par (their repayment - often nominal - value). 
 
Total Return 
 
Total return is the theoretical return to shareholders that measures the 
combined effect of any dividends paid, together with the rise or fall in the 
share price or NAV. In this half-yearly financial report these return figures 
have been sourced from Refinitiv who calculate returns on an industry 
comparative basis. 
 
Net Asset Value Total Return (APM) 
 
Total return on net asset value per share, assuming dividends paid by the 
Company were reinvested into the shares of the Company at the NAV per share at 
the time the shares were quoted ex-dividend. 
 
Share Price Total Return (APM) 
 
Total return to shareholders, on a mid-market price basis, assuming all 
dividends received were reinvested, without transaction costs, into the shares 
of the Company at the time the shares were quoted ex-dividend. 
 
                                                                      Net Asset     Share 
 
Six Months Ended 31 October 2020                       Page               Value     Price 
 
As at 31 October 2020                                     1             346.62p   304.50p 
 
As at 30 April 2020                                       1             279.64p   254.00p 
 
Change in period                                                   a      24.0%     19.9% 
 
Impact of dividend reinvestments(1)                                b       0.0%      0.0% 
 
Total return for the period                                  c = a+b      24.0%     19.9% 
 
                                                                      Net Asset     Share 
 
Six Months Ended 31 October 2019                                          Value     Price 
 
As at 31 October 2019                                                   307.98p   268.00p 
 
As at 30 April 2019                                                     322.66p   294.00p 
 
Change in period                                                   a      -4.5%     -8.8% 
 
Impact of dividend reinvestments(1)                                b       0.8%      2.1% 
 
Total return for the period                                  c = a+b      -3.7%     -6.7% 
 
(1)    No dividends have been paid during six months to 31 October 2020 (31 
October 2019: 2.90p reinvested at the NAV or share price on the ex-dividend 
date). NAV or share price falls subsequent to the reinvestment date 
consequently further reduce the returns, vice versa if NAV or share price 
rises. 
 
Benchmark 
 
Total return on the benchmark is on a mid-market value basis, assuming all 
dividends (net of withholding tax) received were reinvested, without 
transaction costs, into the shares of the underlying companies at the time the 
shares were quoted ex-dividend. 
 
 
 
END 
 
 

(END) Dow Jones Newswires

January 25, 2021 06:24 ET (11:24 GMT)

1 Year Invesco Asia Chart

1 Year Invesco Asia Chart

1 Month Invesco Asia Chart

1 Month Invesco Asia Chart

Your Recent History

Delayed Upgrade Clock