Title: URL Source: https://is.gd/WbmKfD Published Time: Thu, 22 May 2025 13:34:39 GMT Markdown Content: # invtrusts.co.uk # Investment objective The Company aims to maximise total return to shareholders over the long term from a portfolio made up predominantly of quoted smaller companies in the economies of Asia excluding Japan. The full investment policy is available for download on the Company's website. # Comparative benchmark With effect from 1 August 2021 the MSCI AC Asia ex Japan Small Cap Index (currency adjusted) was adopted as the comparative index and performance is also measured against the peer group. Given the Manager’s investment style, it is likely that performance will diverge, possibly quite dramatically in either direction, from the comparative index. The Manager seeks to minimise risk by using in depth research and does not see divergence from an index as risk. # Cumulative performance (%) as at 31/03/25 1month 3months 6months 1year 3years 5years Since BM Change 31/7/21 Share Price 289.0p 0.3 (0.8) 2.9 12.2 14.3 123.1 21.8 Diluted NAV A 329.6p (1.7) (8.0) (2.3) 7.3 16.3 108.8 18.8 Composite Benchmark (3.0) (9.9) (10.5) (3.1) 6.5 95.5 7.1 # Discrete performance (%) 31/03/25 31/03/24 31/03/23 31/03/22 31/03/21 Share Price 12.2 7.3 (5.0) 13.4 72.1 Diluted NAV A 7.3 11.8 (3.0) 12.9 58.9 Composite Benchmark (3.1) 14.8 (4.2) 7.5 70.7 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 and Factset. Past performance is not a guide to future results. abrdn Asia Focus plc A fundamental, high conviction portfolio of well-researched Asian small caps Performance Data and Analytics to 31 March 2025 A Including current year revenue. B © 2025 Morningstar. 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 no guarantee of future results. For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to: http://corporate.morningstar.com/us/documents/ MethodologyDocuments/AnalystRatingforFundsMethodology.pdf The Morningstar Analyst Rating for Funds is a forward-looking analysis of a fund. Morningstar has identified five key areas crucial to predicting the future success of a fund: People, Parent, Process, Performance, and Price. The pillars are used in determining the Morningstar Analyst Rating for a fund. Morningstar Analyst Ratings are assigned on a five-tier scale running from Gold to Negative. The top three ratings, Gold, Silver, and Bronze, all indicate that our analysts think highly of a fund; the difference between them corresponds to differences in the level of analyst conviction in a fund’s ability to outperform its benchmark and peers through time, within the context of the level of risk taken over the long term. Neutral represents funds in which our analysts don’t have a strong positive or negative conviction over the long term and Negative represents funds that possess at least one flaw that our analysts believe is likely to significantly hamper future performance over the long term. Long term is defined as a full market cycle or at least five years. Past performance of a security may or may not be sustained in future and is no indication of future performance. For detailed information about the Morningstar Analyst Rating for Funds, please visit http://global.morningstar.com/managerdisclosures. Morningstar Rating TM > B Morningstar Rating TM 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. Ten largest equity holdings (%) Aegis Logistics India 3.7 Precision Tsugami China China 3.4 Zhejiang Shuanghuan Driveline China 3.1 Kfin Technologies India 3.0 FPT Corp Vietnam 2.9 Taiwan Union Technology Taiwan 2.8 Affle India India 2.8 Chroma Ate Taiwan 2.8 J.B Chemicals & Pharma India 2.5 Dah Sing Financial Hong Kong 2.5 Total 29.5 Country allocation (%) Trust MSCI AC Asia ex Japan Small Cap Index Month’s market change India 28.2 32.2 8.7 China 16.6 13.3 (2.0) Taiwan 13.4 22.3 (14.3) Korea 8.8 12.9 (8.2) Vietnam 5.5 - -Indonesia 5.4 2.1 (4.8) Philippines 4.9 1.0 0.8 Hong Kong 3.7 4.2 (1.4) Thailand 2.7 3.1 (7.2) Malaysia 2.5 3.3 (4.0) United Kingdom 2.3 - -Sri Lanka 2.3 - -Singapore 1.1 5.6 0.8 Cash 2.8 - - Total 100.0 100.0 MSCI AC Asia ex Japan Small Cap. 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 and MSCI. All sources (unless indicated): Aberdeen: 31 March 2025. 02 Total number of investments 59 Fund risk statistics 3 Years 5 Years Annualised Standard Deviation of Fund 11.47 12.05 Beta 0.90 0.81 Sharpe Ratio 0.16 1.01 Annualised Tracking Error 3.73 5.28 Annualised Information Ratio 0.97 0.05 R-Squared 0.91 0.84 Source: Aberdeen & Factset. 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. Key information Calendar Year end 31 July Accounts published October Annual General Meeting December Dividends paid March, June, September, December Launch date October 1995 Fund managers Flavia Cheong, Gabriel Sacks, Xin-Yao Ng, Ongoing charges C 0.89% Annual management fee D0.85% Market Cap (tiered) Premium/(Discount) with debt at fair value (12.3)% Yield E 2.6% Net cash/(gearing) with debt at par F(10.6)% Active share G 96.5% AIFMD Leverage Limits Gross Notional 2.5x Commitment 2x # abrdn Asia Focus plc abrdn Asia Focus plc 1 Year Premium/Discount Chart (%) -25 -20 -15 -10 Mar-25 Jan-25 Nov-24 Sep-24 Jul-24 May-24 Mar-24 # Fund managers’ report Market review The broader market environment remains clouded by uncertainties, exemplified by, at the time of writing, US President Donald Trump’s announcement of reciprocal tariffs that were much higher than expected and spared no market. Tariff concerns ahead of this announcement challenged equity returns, including that of Asian small caps, with the benchmark index down by almost 3.0% in March. In market terms, India was a standout, gaining some reprieve after a tough start to the year. Singapore also did well, providing relative resilience in a volatile trading environment, while China and Hong Kong lost ground in a down market. Other markets were relatively weak, especially Taiwan and South Korea, owing to a combination of uncertainties around the semiconductor cycle and US tariff concerns. Relative to the broader market, we enjoyed a good bounce in Hong Kong and gained from our significant underweight exposures to Taiwan and South Korea, which were the weakest markets. From a stock perspective, robust results from our Indian holdings, Affle and Bharti Hexacom, helped to add value. We benefited from a rebound in Cholamandalam Investment and Finance and KFin Technologies. Conversely, tariff concerns were brought to bear on Vietnam, which has one of the most significant trade surpluses with the US. However, we expect the businesses of holdings, such as FPT Corp (IT services) and Mobile World Investment Corp (electronics and grocery retailer), will not be subjected to levies. Meanwhile, policy shifts in Indonesia contributed to weaknesses at AKR Corporindo and Medikaloka Hermina. In March, we established a position in healthcare-focused Parkway Life REIT, given an attractive outlook. Its core portfolio includes three hospitals in Singapore: Mount Elizabeth Hospital, Gleneagles Hospital, and Parkway East Hospital. We appreciate C Expressed as a percentage of average daily net assets for the year ended 31 July 2024. 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 August 2021, 0.85% per annum for the first £250 million of the Company's market capitalisation, 0.6% per annum for the next £500 million, and 0.5% per annum for market capitalisation of £750 million and above, based on the closing Ordinary share price quoted on the London Stock Exchange multiplied by the number of Ordinary Shares in issue (excluding those held in treasury), valued monthly. E Calculated using the Company’s publicly announced target dividend yield of 6.4p for the year ending 31 July 2024 and month end share price. F Net gearing is defined as a percentage, with net debt (total debt 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. Fund managers’ report continues overleaf 03 abrdn Asia Focus plc abrdn Asia Focus plc the company's defensiveness, with consistently high occupancy and stable distribution per unit since its listing in 2007. In the short term, we expect gains next year due to a significant rental increase in its Singapore portfolio. Long-term growth is supported by an asset enhancement initiative at Gleneagles and the acquisition of Mount Elizabeth Novena, both of which are expected to boost earnings. Additionally, the company has strong capital management and a prudent financial risk management strategy for distribution stability. We also purchased China's Hangzhou Robam Appliances, which offers consumer exposure to China and Hong Kong as well as a decent yield. Hangzhou Robam has strong brand equity and a significant market share in premium kitchen appliances, as evidenced by robust gross margins. Despite a decline in the construction channel over the past two years, the company has offset some of this impact through non-construction and home upgrade demand from both online and offline channels. Additionally, the confirmation of subsidy replacements and signs of stabilisation in the property market, particularly in higher-tier cities where Robam has greater exposure, offers significant upside to current market expectations. Also in China, we initiated a holding in Yantai Pet Foods. This pet food manufacturer has established credentials and a diversified customer base of global brands. In addition, the company has been building its own local brand to tap into rising pet ownership and demand for premium products in China. Elsewhere, we added Chief Telecom due to its positive outlook, which is supported by a new data centre. Chief Telecom is the leading independent data centre company in Taiwan, with a monopoly over submarine cable access in the country and overall network interconnections through the establishment of different internet exchanges. Given the critical nature of its infrastructure, the company benefits from high barriers to entry and a unique relationship with the local telecom operators. Regarding sales, we exited ASMPT, Nam Long Investment and Pentamaster to pursue better ideas elsewhere. Outlook In the wake of US President Donald Trump’s unprecedented reciprocal tariffs, we expect more short-term noise around negotiations and retaliatory moves. Rising prices mean inflationary pressures in the US that could hurt consumer purchasing power and dampen global economic growth. That said, we see a limited direct impact on the companies we invest in. The majority of the revenues generated by our holdings are driven by domestic growth in Asia, with our portfolio companies generating more than 80% of revenues from Asian clients. Our companies tend to be local or global leaders with unique products or services that are incredibly hard to replace, meaning that these businesses are resilient, and the fundamental outlook for growth remains robust. We would see two key risks arising from the tariffs: a potential US recession that could broaden into a global slowdown and supply chain disruptions caused by the global tariffs. Re-allocation of supply chains will occur over time, but these global networks have been built over many decades, so manufacturing cannot shift to the US overnight, if at all. Some humility is warranted on our part given the dramatic changes being thrown at the global economy, so we must be careful in thinking through the second-order effects on our portfolio companies and the impact on equity valuations for individual stocks, but our focus since the Trust's inception 30 years ago has squarely been on the highest-quality companies in the region that can thrive under extreme circumstances. Tough times often entrench competitive positions, and we remain highly confident in the future growth prospects of our holdings, the diversified nature of the portfolio and Asia’s structural growth story. Assets/Debt (£m) > Gross Assets 548.8 Debt (CULS + bank loan) 66.4 Cash & cash equivalents 15.3 Capital structure > Ordinary shares 145,872,655 Treasury shares 62,864,590 Convertible Unsecured Loan Stock 2025 (CULS) at nominal value £36,558,783 Allocation of management fees and finance costs > Capital 75% Revenue 25% Trading details > Reuters/Epic/Bloomberg code AAS ISIN Code GB00BMF19B58 Sedol code BMF19B5 Stockbrokers Panmure Liberum Market makers SETSmm # i Factsheet Receive the factsheet by email as soon as it is available by registering at www.aberdeeninvestments.com/ trustupdates www.aberdeeninvestments.com/aas Contact Private investors trusts@aberdeenplc.com Institutional Investors InvestmentTrustInvestorRelations-UK@ aberdeenplc.com Ben Heatley Head of Closed End Fund Sales Ben.Heatley@aberdeenplc.com # Fund managers’ report - continued 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 04 abrdn Asia Focus plc abrdn Asia Focus plc abrdn Asia Focus plc Statement of Operating Expenses Publication date: 19 December 2024 Recurring Operating Expenses (£000s) Year ending 30 Jul 2024 % of NAV Year ending 30 Jul 2023 % of NAV % Change (YOY) Management Fee (inc AIFM) 3,076 0.63% 3,012 0.65% 2.1% Custody fees 364 0.07% 278 0.06% 30.9% Promotional activities 210 0.04% 219 0.05% -4.1% Directors remuneration 173 0.04% 161 0.03% 7.5% Depositary fees 49 0.01% 46 0.01% 0.0% Auditors' remuneration 52 0.01% 48 0.01% 8.3% Other administrative expenses 426 0.09% 509 0.11% -16.3% Ongoing Operating Expenses (ex indirect fund management expenses) 4,350 0.89% 4,273 0.92% 1.8% Expenses relating to investments in other collective investments 0.00% 0.00% Ongoing Operating Expenses (inc indirect fund management expenses) 4,350 0.89% 4,273 0.92% 1.8% Average Net Asset Value 488,772 462,127 5.8% Operating Expense Ratio (ex indirect fund management expenses) 0.89% 0.92% Operating Expense Ratio (inc indirect fund management expenses) 0.89% 0.92% Transaction costs and other one-off expenses (£000s) Year ending 30 Jul 2024 % of NAV Year ending 30 Jul 2023 % of NAV % Change (YOY) Transaction costs 703 0.14% 254 0.05% 176.8% Performance fees 0.00% 0.00% Other non-recurring expenses 32 0.01% 67 0.01% -52.2% Total 735 0.15% 321 0.07% 129.0% Current Service Providers AIFM abrdn Fund Managers Limited Investment Manager abrdn Asia Limited Company Secretary abrdn Holdings Limited Fund Accounting Services BNP Paribas Fund Services UK Limited Auditor PricewaterhouseCoopers LLP Depositary & Custodian BNP Paribas S.A. London Branch Registrar Equitini Limited Corporate Broker Panmure Gordon & Co Summary of Current Key Commercial Arrangements The Company has appointed abrdn Fund Managers Limited (“aFML”), a wholly owned subsidiary of Aberdeen plc, as its alternative investment fund manager. aFML has been appointed to provide investment management, risk management, administration and company secretarial services and promotional activities to the Company. The Company’s portfolio is managed by abrdn Asia Limited (“abrdn Asia”) by way of a group delegation agreement in place between aFML and abrdn Asia. aFML has sub-delegated administrative and secretarial services to abrdn Holdings Limited, promotional activities to abrdn Investments Limited (“aIL”) and fund accounting services to BNP Paribas Fund Services UK Limited. The management agreement may be terminated by either the Company or the Manager on the expiry of three months’ written notice. On termination, the Manager would be entitled to receive fees which would otherwise have been due to that date. Investment management fees are charged 25% to revenue and 75% to capital. No performance fee. Fee scale % of Market Cap £0-£250m 0.85% £250m-£750m 0.60% >£750m 0.50% Directors fee rates (£) Year ending 30 Jul 2024 Year ending 30 Jul 2023 % Change (YOY) Chair 42,000 37,500 12.0% Chair of Audit & Risk Committee 34,000 32,000 6.3% Senior Independent Director 30,000 28,500 5.3% Director 30,000 28,500 5.3% Number of Directors 7 6 Important Information The Statement of Operating Expenses is designed to help investors understand the impact of operating expenses on financial performance. Operating expenses are NOT deducted from the value of an investor's shareholding, which is derived from the share price. The market value (share price) of all publicly traded companies reflects a wide range of factors, including the estimated impact of operating expenses on future financial performance. The market value of an investment trust may diverge materially, both positively and negatively, from the reported net asset value. 0004674601 For more information visit invtrusts.co.uk Important information Risk factors you should consider prior to investing: • The value of investments, and the income from them, can go down as well as up 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 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: An investment trust should be considered only as part of a balanced portfolio. The information contained in this document should not be considered as an offer, solicitation or investment recommendation to deal in the shares of any securities or financial instruments. It is not intended for distribution or use by any person or entity who is a citizen or resident of or located in any jurisdiction where such distribution, publication or use would be prohibited. Nothing herein constitutes investment, legal, tax or other advice and is not to be relied upon in making an investment or other decision. No recommendation is made, positive or otherwise, regarding individual securities mentioned. This is not an invitation to subscribe for shares and is by way of information only. Investment should only be following a review of the current Key Information Document (KID) and pre-investment disclosure document (PIDD) both of which are available on www.invtrusts. co.uk. Any data contained herein which is attributed to a third party ("Third Party Data") is the property of (a) third party supplier(s) (the “Owner”) and is licensed for use by Aberdeen*. Third Party Data may not be copied or distributed. Third Party Data is provided “as is” and is not warranted to be accurate, complete or timely. To the extent permitted by applicable law, none of the Owner, Aberdeen* or any other third party (including any third party involved in providing and/or compiling Third Party Data) shall have any liability for Third Party Data or for any use made of Third Party Data. Neither the Owner nor any other third party sponsors, endorses or promotes the fund or product to which Third Party Data relates. *Aberdeen means the relevant member of the Aberdeen Group, being Aberdeen Group plc together with its subsidiaries, subsidiary undertakings and associated companies (whether direct or indirect) from time to time. 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 abrdn Fund Managers Limited, registered in England and Wales (740118) at 280 Bishopsgate, London, EC2M 4AG, authorised and regulated by the Financial Conduct Authority in the UK.