Aberdeen All Asia IT ABAA Half Yearly Report

  Aberdeen All Asia IT (ABAA) - Half Yearly Report

RNS Number : 3745R
Aberdeen All Asia Inv Tst PLC
19 November 2012




                    ABERDEEN ALL ASIA INVESTMENT TRUST PLC

                                      

   HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2012





Chairman's Statement



Investment Performance

Investor sentiment has  been weak during  the period amid  concerns about  the 
risks to political and economic stability in Europe and uncertainty about  the 
strength of the US recovery. In  Asia, disappointing economic data from  China 
and India weighed on markets in the region. Nevertheless, markets recovered in
the third quarter on the hope that central banks were prepared to take  policy 
action to boost flagging growth but ended down during the period.



During the six months to 30  September 2012 your Company's share price  gained 
0.2% to end the  period at 318.5p. The  net asset value of  the Company on  a 
total return basis (with dividends  reinvested) rose marginally by 0.4%.  This 
performance is ahead  of the benchmark,  the MSCI All  Countries Asia  Pacific 
(including Japan) Index, which  fell 2.4%. Despite  the weak market  backdrop, 
the Company's  performance  held up  thanks  largely to  the  relatively  good 
performance of the stocks in  the portfolio. A detailed performance  analysis 
is covered in the Manager's Review.



On 27 July  2012, a final  dividend of 4.75p  per Ordinary share  was paid  in 
respect of the year ended 31 March 2012.



Outlook

The coming  months are  not expected  to see  a major  change in  the  current 
political and economic uncertainties.  In Europe, leading indicators  continue 
to  disappoint,  suggesting  more  weakness  heading  into  2013.  Across  the 
Atlantic, the elections,  as well  as the  looming fiscal  cliff, have  driven 
companies to trim capital expenditure and  hiring, a major reason that  growth 
could remain slow in the months ahead.



In Asia, uncertainties over the leadership transition in China and territorial
disputes between Beijing and Tokyo over a  group of islands in the East  China 
Sea are weighing  on sentiment. Politics  is also centre-stage  in India.  The 
government is  under pressure  to deliver,  implementation risks  are high  as 
coalition politics  makes  for arduous  decision-making,  and reforms  may  be 
derailed yet again.



Since the financial crisis in the  West, some Asian economies have grown  more 
reliant on China to absorb their exports. But with Beijing trying to rebalance
growth, there could be adverse ramifications for countries, such as Australia,
Hong  Kong  and   Singapore,  which   have  deepened   their  trade   linkages 
significantly. Conversely,  Indonesia,  Malaysia  and Thailand  seem  to  have 
decoupled their domestic  economies, to  some extent,  on the  back of  robust 
local consumption.



Against  this  uncertain  overall  backdrop,  while  some  economies  may   be 
experiencing near-term stresses,  we are  confident your  Manager's long  term 
stock-picking approach has identified businesses  that are resilient in  tough 
times. Your holdings  are consequently  still in relatively  good shape,  with 
solid market positions, sturdy balance sheets and experienced management. Your
Company is well placed to meet the challenges ahead.



Principal Risks and Uncertainties

The Board  regularly reviews  major  strategic risks  and sets  out  delegated 
controls designed to manage those risks. Aside from the risks associated  with 
investment in Asia, the major risks  associated with the Company are  resource 
risk, investment and market risk,  gearing risk and regulatory risk.  Resource 
risk relates to the Company's reliance  on services provided by third  parties 
since, like most  other investment trusts,  the Company has  no employees.  In 
particular, the Company has delegated responsibility for the management of the
Company's portfolio to Aberdeen Asset Management Asia Limited (the  "Manager") 
under an Investment Management  Agreement (the "IMA").  The Board reviews  the 
performance of the Manager  at each Board meeting,  and their compliance  with 
the IMA formally on an annual basis. With regard to investment risk, the Board
continually monitor the investment strategy of the Company, and the underlying
market risks comprising security price  risk, foreign currency risk,  interest 
rate risk, liquidity risk and credit risk are monitored at each Board meeting.
The Company currently  utilises gearing in  the form of  bank borrowings  (see 
Note 7 to the  Financial Statements). Gearing magnifies  the effect of  market 
movements on the net asset value of the Company. Regulatory risk includes  the 
potential loss of investment trust status or a breach of applicable legal  and 
regulatory requirements, which could  have adverse financial consequences  and 
cause reputational  damage.  The  Audit  Committee  monitors  compliance  with 
regulations and other operational risks by reviewing internal controls reports
from the Manager.



The particular risks of investment in Asia include:



· greater risk of social, political and economic instability; the small
size of the markets for securities of emerging markets issuers and  associated 
low volumes  of trading  may  give rise  to price  volatility  and a  lack  of 
liquidity;

·  certain  national  policies   which  may  restrict  the   investment 
opportunities available  in  respect  of a  fund,  including  restrictions  on 
investing in issuers  or industries  deemed sensitive  to national  interests; 
changes in  taxation laws  and/or rates  which  may affect  the value  of  the 
Company's investments;

· Companies in the Asia-Pacific region  are not, in all cases,  subject 
to the equivalent accounting, auditing and financial standards of those in the
United Kingdom.



Further details in  respect of  the risks  associated with  investment in  the 
Company are detailed in the Directors' Report and in note 18 to the  financial 
statements in the Annual Report and Accounts for the year ended 31 March  2012 
(at pages 19 to 20 and 44 to 47 respectively), a copy of which is available on
the Company's website.



Related Party Transactions

Aberdeen Asset Management Asia Ltd acts as Manager to the Company and, through
its  parent  company,   Aberdeen  Asset  Management   PLC,  provides   company 
secretarial, accounting and  administrative services. Details  of the  service 
and fee arrangements can be  found in the Annual  Report and Accounts for  the 
year ended 31 March 2012.



Directors' Responsibility Statement

The Directors are responsible for  preparing the Half-Yearly Financial  Report 
in accordance with applicable law and regulations. The Directors confirm that
to the best of their knowledge -



· the  condensed set  of  Financial Statements  have been  prepared  in 
accordance with  the UK  Accounting Standards  Board's statement  "Half-Yearly 
Financial Reports"; and

·  the  Interim  Management  Report  includes  a  fair  review  of  the 
information required by rules  4.2.7R of the  UK Listing Authority  Disclosure 
and Transparency  Rules (being  an indication  of important  events that  have 
occurred during the first six months of the financial year and their impact on
the condensed set of financial statements  and a description of the  principal 
risks and uncertainties for  the remaining six months  of the financial  year) 
and 4.2.8R (being related party transactions that have taken place during  the 
first six months of the financial  year and that have materially affected  the 
financial position of the Company during  that period; and any changes in  the 
related party transactions described in the  last Annual Report that could  so 
do).



The Half-Yearly Financial Report  for the six months  ended 30 September  2012 
comprises  an  Interim  Management  Report  in  the  form  of  the  Chairman's 
Statement, the  Directors' Responsibility  Statement and  a condensed  set  of 
Financial Statements, and  has not been  audited or reviewed  by the  auditors 
pursuant to the APB guidance on Review of Interim Financial Information.



Neil Gaskell

Chairman

16 November 2012





Manager's Report



Overview

Asian  equities  did  little   during  the  review   period,  caught  in   the 
cross-currents of a  worsening global  backdrop, compounded  by Europe's  debt 
crisis and China's slowing growth, and significant policy easing in the  West. 
Risk aversion  was  high  initially  as  markets  hit  their  trough  in  May. 
Subsequently, investors  found  some  respite from  positive  developments  in 
Europe and  China's first  rate  cut since  2008.  Then, in  September,  major 
central banks announced long-awaited measures to buttress the global  economy, 
including a third round of US quantitative easing (QE), which prompted a  rise 
in markets.



Economic growth  softened  across  Asia. Western  demand  for  exports  cooled 
significantly and took a heavier toll on the more open economies of Hong Kong,
Korea, Singapore and  Taiwan. Countries with  a large domestic  base, such  as 
Indonesia, Malaysia and the Philippines,  proved more resilient, supported  by 
firm consumption and fiscal  expansion. China's economy  appears to be  headed 
for a  soft landing,  with the  government prepared  to intervene  further  to 
maintain  growth   at   7.5%.   India  meanwhile   belatedly   unveiled   bold 
market-friendly reforms which were  lauded as a step  in the right  direction, 
notwithstanding high  implementation  risks.  But nagging  concerns  over  the 
country's fiscal and  current account  deficits persisted.  Against a  largely 
benign inflation backdrop, central banks  in India, Korea and the  Philippines 
cut interest rates, along with China.



Japan faced the all-too-familiar landscape of factious politics, tepid  growth 
and persistent deflation, while the  flaring up of a longstanding  territorial 
dispute with  China was  an unwelcome  distraction for  the government.  Prime 
minister Noda pushed  through a bill  to raise  the consumption tax  but at  a 
price: veteran powerbroker  Ichiro Ozawa,  along with his  followers, quit  in 
protest and quickly formed a new opposition party. PM Noda also found it tough
to resuscitate the economy, given the yen's strength and weak external demand.
The central bank did its  part to help fight  deflation and bolster growth  by 
expanding its asset purchases aggressively to ¥80 trillion.



Portfolio

Over the  period, the  portfolio's net  asset  value per  share rose  0.4%  in 
sterling terms, compared  with a decline  in the benchmark,  the MSCI AC  Asia 
Pacific Index, of 2.4%. Outperformance was driven by our positioning in Japan,
Singapore, India and  Hong Kong.  On a broader  level, we  benefited from  our 
preference for solid established companies, such as Jardine and the  Singapore 
banks, which showed their mettle in  the tougher market conditions. Our  heavy 
exposure to the consumer  staples and real estate  sectors, which are  proxies 
for consumption, and to Asean countries  also served us well, given  resilient 
domestic demand.



Our underweight to Japan, along with our holdings there, contributed the  most 
to performance. In Japan, we have found few domestic companies which run their
businesses as well as  export-oriented companies that operate  internationally 
and are  on  a par  with  global peers  in  quality and  professionalism.  Our 
underweight stance proved beneficial as Japan was the worst regional performer
owing to  the  economic  and  political backdrop.  At  the  stock  level,  our 
consumer-related  holdings  fared  well.  Diaper  maker  Unicharm's  operating 
performance continued to be  decent, aided by  overseas growth. Stable  demand 
underpinned the cash-generative business of convenience store operator Seven &
I. In contrast, exporters  Canon and Honda  Motor detracted from  performance. 
Canon downgraded  its  full-year  profit  outlook  in  view  of  the  sluggish 
operating environment.  Honda was  hurt by  adverse currency  effects and  the 
political backlash in China.  But we remain  comfortable with their  long-term 
prospects, given their healthy fundamentals and quality management.



Also benefiting the portfolio was our overweight to Singapore and India.  Both 
markets outperformed  the region  as  Singapore proved  attractive as  a  safe 
haven, while India was  lifted by the liberalisation  wave. In Singapore,  our 
bank holdings were strong. OCBC Bank and United Overseas Bank's earnings  were 
driven by robust loan growth.  OCBC also unlocked value  from the sale of  its 
non-core investments in Fraser & Neave and Asia Pacific Breweries. Outside  of 
the  financial  sector,  Jardine  Strategic   was  bolstered  by  the   steady 
performance of its underlying businesses,  such as Dairy Farm. ST  Engineering 
recorded double-digit profit  growth amid a  steady stream of  new orders.  In 
India, lender HDFC posted healthy loan growth and stable net interest margins,
while maintaining its asset quality  and robust capital base. Grasim's  shares 
rallied on improved profits at  its cement subsidiary Ultratech, which  offset 
weakness in its viscose staple fibre unit.



Our exposure to Hong Kong also  boosted relative return owing to the  positive 
contribution from our  overweight position, although  it was an  exceptionally 
tough period for some of our holdings. Earnings disappointments came from  ASM 
Pacific Technology, which posted  weak interim results owing  to a decline  in 
mainland demand for semiconductor assembly equipment, and Li & Fung, given the
impact of  US  restructuring costs,  increased  investments in  Asia  and  the 
general retail  slowdown.Negative  newsflow  weighed  on  Standard  Chartered 
(Stanchart)  and  HSBC,  the  subjects  of  regulatory  probes,  and  property 
developer Sun Hung Kai (SHK),  which was investigated for alleged  corruption. 
We continue to be confident of the banks' prospects and management, but  since 
the period end,  we took the  opportunity to  dispose of our  position in  SHK 
following a recovery in its share price.



Elsewhere, our holdings  in Indonesia,  Taiwan and the  Philippines did  well. 
Unilever Indonesia, a unit of the Anglo-Dutch consumer goods giant,  benefited 
from the rise  in consumers' purchasing  power, anchored by  a strong  product 
pipeline. Taiwan Mobile  posted steady  results, underpinned  by good  capital 
management, while Taiwan  Semiconductor's earnings were  supported by  healthy 
demand. The buoyant Philippine economy boosted property developer Ayala  Land, 
which enjoyed robust growth amid improving profit margins, and the Bank of the
Philippine Islands, which delivered healthy interim earnings.



In contrast, our underweight  to Australia detracted  from performance as  the 
market outperformed the region. Although there are many good-quality companies
there, we prefer others in  Asia that offer a  broader exposure to the  region 
and have better growth opportunities.  Our holdings were disappointing.  Miner 
Rio Tinto's share  price was dampened  by weak iron  ore prices amid  concerns 
over commodity demand from China. QBE  Insurance cautioned that the recent  US 
drought would hurt  profitability. However, both  companies are  fundamentally 
sound, given their experienced management, robust core operations and  quality 
assets.



During the period, we  introduced only one new  holding in Japan Tobacco,  the 
third-largest global cigarette maker  and leader in  the domestic market.  The 
group has been astute in its  overseas acquisitions and will benefit from  its 
exposure to emerging markets, supported by steady cash flows.



We also capitalised on opportunities arising from the volatile market. We took
profits in holdings that did  well, namely OCBC, Unicharm  and Seven & I,  and 
added to ASM Pacific Technology,  Canon, Infosys, PetroChina and Stanchart  on 
the back  of relative  weakness.  Separately, we  continued  to build  up  our 
position in Singapore oil-rig  maker Keppel Corp, which  we had introduced  in 
the prior year. In view of the  improved risk appetite, we took some cash  out 
of the portfolio and reduced gearing slightly.



Outlook

Continued volatility in  Asian markets underscores  the uncertainty caused  by 
prevailing headwinds. These include Eurozone  troubles, the outcome of the  US 
presidential election and the looming fiscal cliff, as well as the more recent
geopolitical developments.  Policy  risks are  also  a big  concern.  Regional 
policymakers are  bracing  their economies  against  imported inflation  as  a 
result of quantitative easing in the  West. As capital flows into this  region 
in search of  higher yields, central  banks will face  increasing pressure  to 
stem their appreciating currencies that could erode export competitiveness.



Given these  uncertainties,  coupled  with weak  external  demand,  we  expect 
earnings growth to  be in  the single digits  this year  and next.  Valuations 
remain reasonable,  although  consumer-related  names  are  starting  to  look 
expensive, which  reflects  their  recent re-rating  based  on  their  greater 
earnings resilience. We are confident of  our holdings and believe that  their 
focus,  balance   sheet  strength   and  management   experience  leave   them 
well-positioned to outlast the vagaries  of the current business and  economic 
cycle, and future ones.





Aberdeen Asset Management Asia Limited

Manager

16 November 2012





INCOME STATEMENT





                                                       Six months ended
                                                       30 September 2012
                                                          (unaudited)
                                                   Revenue   Capital     Total
                                                     £'000     £'000     £'000
(Losses)/gains on investments                            -     (427)     (427)
Income (note 2)                                      1,124         -     1,124
Investment management fee                            (213)         -     (213)
Performance fee                                          -      (13)      (13)
Administrative expenses                              (154)       (6)     (160)
Exchange losses                                          -      (32)      (32)
                                                 _________ _________ _________
Net return before finance costs and taxation           757     (478)       279
Finance costs                                         (49)         -      (49)
                                                 _________ _________ _________
Net return on ordinary activities before               708     (478)       230
taxation
Taxation on ordinary activities (note 3)              (52)         -      (52)
                                                 _________ _________ _________
Net return on ordinary activities after taxation       656     (478)       178
                                                 _________ _________ _________
Return per Ordinary share (pence)(note 5)             4.50    (3.28)      1.22
                                                 _________ _________ _________



The total column of this statement  represents the profit and loss account  of 
the Company.
A Statement of Total Recognised Gains and Losses has not been prepared as  all 
gains and losses have been reflected in the Income Statement.
All revenue and capital  items in the above  statement derive from  continuing 
operations.
The accompanying notes are an integral part of the financial statements.





INCOME STATEMENT





                                                       Six months ended
                                                       30 September 2011
                                                          (unaudited)
                                                   Revenue   Capital     Total
                                                     £'000     £'000     £'000
(Losses)/gains on investments                            -   (6,016)   (6,016)
Income (note 2)                                      1,249         -     1,249
Investment management fee                            (220)         -     (220)
Performance fee                                          -         -         -
Administrative expenses                              (124)      (10)     (134)
Exchange losses                                          -     (281)     (281)
                                                 _________ _________ _________
Net return before finance costs and taxation           905   (6,307)   (5,402)
Finance costs                                         (42)         -      (42)
                                                 _________ _________ _________
Net return on ordinary activities before               863   (6,307)   (5,444)
taxation
Taxation on ordinary activities (note 3)              (52)         -      (52)
                                                 _________ _________ _________
Net return on ordinary activities after taxation       811   (6,307)   (5,496)
                                                 _________ _________ _________
Return per Ordinary share (pence)(note 5)             5.23   (40.71)   (35.48)
                                                 _________ _________ _________





INCOME STATEMENT





                                                          Year ended
                                                         31 March 2012
                                                           (audited)
                                                   Revenue   Capital     Total
                                                     £'000     £'000     £'000
(Losses)/gains on investments                            -     1,425     1,425
Income (note 2)                                      1,788         -     1,788
Investment management fee                            (435)         -     (435)
Performance fee                                          -     (426)     (426)
Administrative expenses                              (253)      (32)     (285)
Exchange losses                                          -      (37)      (37)
                                                 _________ _________ _________
Net return before finance costs and taxation         1,100       930     2,030
Finance costs                                        (102)         -     (102)
                                                 _________ _________ _________
Net return on ordinary activities before
taxation                                               998       930     1,928
Taxation on ordinary activities (note 3)              (72)       (6)      (78)
                                                 _________ _________ _________
Net return on ordinary activities after taxation       926       924     1,850
                                                 _________ _________ _________
Return per Ordinary share (pence)(note 5)             6.03      6.02     12.05
                                                 _________ _________ _________





BALANCE SHEET





                                             As at             As at     As at
                                 30 September 2012 30 September 2011        31
                                                                         March
                                                                          2012
                                       (unaudited)       (unaudited) (audited)
                            Note             £'000             £'000     £'000
Fixed assets
Investments at fair value                   57,139            53,739    58,048
through profit or loss
                                         _________         _________ _________
Current assets
Debtors                                        229               354       330
Cash at bank and in hand                       650               964       913
                                         _________         _________ _________
                                               879             1,318     1,243
                                         _________         _________ _________
Creditors: amounts falling
due within one year
Foreign currency bank loans    7           (5,965)           (7,042)   (6,256)
Other creditors                              (129)             (210)     (596)
                                         _________         _________ _________
                                           (6,094)           (7,252)   (6,852)
                                         _________         _________ _________
Net current liabilities                    (5,215)           (5,934)   (5,609)
                                         _________         _________ _________
Net assets                                  51,924            47,805    52,439
                                         _________         _________ _________
Share capital and reserves
Called-up share capital                      1,459             1,549     1,529
Special reserve                                  -               398         -
Capital redemption reserve                   2,273             2,183     2,203
Capital reserve                8            46,795            42,356    47,273
Revenue reserve                              1,397             1,319     1,434
                                         _________         _________ _________
Equity shareholders' funds                  51,924            47,805    52,439
                                         _________         _________ _________
Net asset value per            9            355.85            308.57    359.38
Ordinary share (pence)
                                         _________         _________ _________





RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS





Six months ended 30 September
2012 (unaudited)
                                             Capital
                                    Share redemption  Capital  Revenue
                                  capital    reserve  reserve  reserve   Total
                                    £'000      £'000    £'000    £'000   £'000
Balance at 31 March                 1,529      2,203   47,273    1,434  52,439
2012
Return on ordinary                      -          -    (478)      656     178
activities after
taxation
Treasury shares                      (70)         70        -        -       -
cancelled
Dividend paid (note 4)                  -          -        -    (693)   (693)
                                 ________   ________ ________ ________ _______
Balance at 30 September             1,459      2,273   46,795    1,397  51,924
2012
                                 ________   ________ ________ ________ _______
Six months ended 30 September
2011 (unaudited)
                                             Capital
                           Share  Special redemption  Capital  Revenue
                         capital  reserve    reserve  reserve  reserve   Total
                           £'000    £'000      £'000    £'000    £'000   £'000
Balance at 31 March        1,549      398      2,183   48,663    1,012  53,805
2011
Return on ordinary             -        -          -  (6,307)      811 (5,496)
activities after
taxation
Dividend paid (note 4)         -        -          -        -    (504)   (504)
                        ________ ________   ________ ________ ________ _______
Balance at 30 September    1,549      398      2,183   42,356    1,319  47,805
2011
                        ________ ________   ________ ________ ________ _______
Year ended 31 March
2012 (audited)
                                             Capital
                           Share  Special redemption  Capital  Revenue
                         capital  reserve    reserve  reserve  reserve   Total
                           £'000    £'000      £'000    £'000    £'000   £'000
Balance at 31 March        1,549      398      2,183   48,663    1,012  53,805
2011
Purchase of own shares       (6)    (102)          6     (79)        -   (181)
for cancellation
Purchase of own shares         -    (296)          -  (2,235)        - (2,531)
to be held in treasury
Treasury shares             (14)        -         14        -        -       -
cancelled
Return on ordinary             -        -          -      924      926   1,850
activities after
taxation
Dividend paid (note 4)         -        -          -        -    (504)   (504)
                        ________ ________   ________ ________ ________ _______
Balance at 31 March        1,529        -      2,203   47,273    1,434  52,439
2012
                        ________ ________   ________ ________ ________ _______





CASHFLOW STATEMENT



                               Six months ended Six months ended          Year
                                                                         ended
                                   30 September     30 September 31 March 2012
                                           2012             2011
                                    (unaudited)      (unaudited)     (audited)
                                          £'000            £'000         £'000
Return on ordinary activities               279          (5,402)         2,030
before finance costs and
taxation
Adjustments for:
Losses/(gains) on investments               427            6,016       (1,425)
Expenses taken to capital                     6               10            32
reserve
Foreign exchange movements                   32              281            37
Decrease/(increase) in accrued               75               27          (27)
income
Decrease/(increase) in other                 10                2           (2)
debtors
Increase/(decrease) in other                 24             (48)          (35)
creditors
(Decrease)/increase in                    (411)            (422)             4
performance fee creditor
Overseas withholding tax                   (53)             (53)          (72)
suffered
Stock dividends included in                   -            (141)         (189)
investment income
                                    ___________      ___________   ___________
Net cash inflow from operating              389              270           353
activities
Net cash outflow from                      (50)             (54)         (114)
servicing of finance
Net cash outflow from taxation                -                -           (6)
Net cash inflow/(outflow) from              414            (554)         2,632
financial investment
Equity dividends paid                     (693)            (504)         (504)
                                    ___________      ___________   ___________
Net cash inflow/(outflow)                    60            (842)         2,361
before financing
Financing
Purchase of Ordinary share                    -                -       (2,712)
capital
Loan (repaid)/drawn down                  (302)              978           477
                                    ___________      ___________   ___________
Net cash (outflow)/inflow from            (302)              978       (2,235)
financing
                                    ___________      ___________   ___________
(Decrease)/increase in cash               (242)              136           126
                                    ___________      ___________   ___________
Reconciliation of net cash
flow to movements in net debt
(Decrease)/increase in cash as            (242)              136           126
above
Decrease/(increase) in                      302            (978)         (477)
borrowings
                                    ___________      ___________   ___________
Change in net debt resulting                 60            (842)         (351)
from cash flows
Foreign exchange movements                 (32)            (281)          (37)
                                    ___________      ___________   ___________
Movement in net debt in the                  28          (1,123)         (388)
period
Opening net debt                        (5,343)          (4,955)       (4,955)
                                    ___________      ___________   ___________
Closing net debt                        (5,315)          (6,078)       (5,343)
                                    ___________      ___________   ___________
Represented by:
Cash at bank and in hand                    650              964           913
Debt falling due within one             (5,965)          (7,042)       (6,256)
year
                                    ___________      ___________   ___________
Closing net debt                        (5,315)          (6,078)       (5,343)
                                    ___________      ___________   ___________



NOTES TO THE ACCOUNTS





1. Accounting policies
   Basis of accounting
   The accounts have been prepared in accordance with applicable UK Accounting
   Standards, with  pronouncements  on  Half-Yearly Reporting  issued  by  the 
   Accounting Standards Board and with  the Statement of Recommended  Practice 
   for 'Financial Statements of Investment Trust Companies and Venture Capital
   Trusts'. They have also been prepared on the assumption that approval as an
   investment trust will continue to be granted.
   The financial statements  and the net  asset value per  share figures  have 
   been prepared in accordance with UK Generally Accepted Accounting  Practice 
   (UK GAAP).
   The half-yearly  financial statements  have been  prepared using  the  same 
   accounting policies as the preceding annual accounts.



                            Six months ended  Six months ended  Year ended
                           30 September 2012 30 September 2011    31 March
                                                                      2012
2. Income                              £'000             £'000       £'000
   Income from investments
   UK dividend income                     98                56         184
   Overseas dividends                  1,026             1,052       1,415
   Stock dividends                         -               141         189
                                 ___________       ___________ ___________
   Total income                        1,124             1,249       1,788
                                 ___________       ___________ ___________



3. Taxation
   The taxation charge for the period represents withholding tax suffered on
   overseas dividend income.



                              Six months ended  Six months ended    Year ended
                             30 September 2012 30 September 2011 31 March 2012
4. Dividends                             £'000             £'000         £'000
   2011 final dividend -                     -               504           504
   3.25p
   2012 final dividend -                   693                 -             -
   4.75p
                                   ___________       ___________   ___________
                                           693               504           504
                                   ___________       ___________   ___________



                              Six months ended  Six months ended    Year ended
                             30 September 2012 30 September 2011 31 March 2012
5. Return per Ordinary share             £'000             £'000         £'000
   Based on the following
   figures:
   Revenue return                          656               811           926
   Capital return                        (478)           (6,307)           924
                                   ___________       ___________   ___________
   Total return                            178           (5,496)         1,850
                                   ___________       ___________   ___________
   Weighted average number          14,591,572        15,492,367    15,349,072
   of Ordinary shares in
   issue
                                   ___________       ___________   ___________









6. Transaction costs
   During the  period expenses  were  incurred in  acquiring or  disposing  of 
   investments classified  as  fair value  through  profit or  loss.  Expenses 
   incurred in acquiring  investments have been  expensed through capital  and 
   are included within administration expenses in the Income Statement, whilst
   expenses incurred in  disposing of investments  have been expensed  through 
   capital and are included within (losses)/gains on investments in the Income
   Statement. The total costs were as follows:
                      Six months ended      Six months ended        Year ended
                     30 September 2012     30 September 2011     31 March 2012
                                 £'000                 £'000             £'000
   Purchases                         4                     7                26
   Sales                             7                     3                25
                           ___________           ___________       ___________
                                    11                    10                51
                           ___________           ___________       ___________



                                            As at         As at          As at
                                     30 September  30 September  31 March 2012
                                             2012          2011
7. Foreign currency bank loans              £'000         £'000          £'000
   Foreign currency bank loans              5,965         7,042          6,256
                                      ___________   ___________   ___________
   US Dollar      Amount £'000              4,607         5,247          4,895
                  USD'000                   7,440         8,174          7,820
                  Interest rate              1.42          1.74           1.67
                  (%)
                                      ___________   ___________   ___________
   Japanese Yen   Amount £'000              1,358         1,795          1,361
                  JPY'000                 170,622       215,500        179,000
                  Interest rate              1.29          1.48           1.35
                  (%)
                                      ___________   ___________   ___________
   The bank loans are drawn down from the £10,000,000 multi-currency facility
   with Standard Chartered Bank.





8. Capital reserve
   The  capital  reserve  figure  reflected  in  the  Balance  Sheet  includes 
   investment holdings gains of £15,201,000  (30 September 2011 -  £9,849,000; 
   31 March 2012 - £16,534,000).



                                         As at             As at         As at
9. Net asset value per       30 September 2012 30 September 2011 31 March 2012
   Ordinary share
   Attributable net assets              51,924            47,805        52,439
   (£'000)
   Number of Ordinary shares        14,591,572        15,492,367    14,591,572
   in issue
   Net asset value per                  355.85            308.57        359.38
   Ordinary share (p)



10. Related party disclosures
    There were no related party transactions during the period.



11. The financial information contained  in this Half-Yearly Financial  Report 
    does not constitute statutory accounts as defined in Sections 434 - 436 of
    the Companies Act 2006. The financial information for the six months ended
    30 September 2012 and 30 September 2011 have not been audited.
    The information for the year ended  31 March 2012 has been extracted  from 
    the latest published  audited financial statements  which have been  filed 
    with the  Registrar of  Companies. The  report of  the auditors  on  those 
    accounts contained no  qualification or statement  under Section 498  (2), 
    (3) or (4) of the Companies Act 2006.
    This report has not been reviewed or audited by the Company's auditors.



12. This Half-Yearly Report was approved by the Board on 16 November 2012.



13. The Half-yearly  Report  will  shortly be  available  from  the  Company's 
    website (www.all-asia.co.uk) and will be posted to shareholders at the end
    of November 2012.





For Aberdeen All Asia Investment Trust plc

Aberdeen Asset Management PLC, Secretary

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


IR GGGCGGUPPGQQ -0- Nov/19/2012 07:00 GMT
 
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