Aberdeen Asian Income Fund hails resilient portfolio amid strong half

Aberdeen Asian Income Fund Ltd on Tuesday reported a strong first-half performance, despite geopolitical tensions, driven by investments in artificial intelligence and other information technology.

The Asia-Pacific-focused investment trust based in Chelmsford recorded a net asset value total return of 28% for the first half that ended June 30, up from 21% a year before, and above the MSCI AC Asia Pacific ex Japan Index of 26%.

Net asset value per share was 355.07 pence at June 30, up 24% from 285.56p on December 31, and up 44% from 245.99 pence a year before.

The improved performance was primarily driven by investments in information technology, particularly AI, the company said. Key contributors were AI connectivity chip designer MediaTek, AI server materials supplier Taiwan Union Technology and Samsung Electronics Co.

However, these gains were partly offset by consumer and financial holdings in China, "reflecting weak consumer confidence and the continued negative wealth effect from the property downturn", the company said.

"The investment manager continues to refine the portfolio to capture Asia's growth through a total return approach combining yield and earnings growth," the company said. "The focus remains on quality income, dividend sustainability and exposure to long-term structural growth themes."

Aberdeen Asian Income Fund declared a second-quarter interim dividend of 5.55 pence per share, up 45% from 3.84 pence a year before.

Aberdeen Asian Income Fund said it was "encouraged by the resilience of the company's portfolio", noting uncertainty stoked by persisting geopolitical tensions.

The company highlighted the importance of not depending on any single market or theme, "providing attractive and sustainable income streams," it said.

"While periods of market volatility are inevitable," the company said, "the Board remains confident in the quality of the portfolio and in the Investment Manager's ability to identify attractively valued companies capable of delivering a combination of income growth and capital appreciation."

Shares in Aberdeen Asian Income Fund were down 1.6% at 312.00 pence Tuesday afternoon in London.

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