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Aberdeen Asian Income trust

Closed-end funds and OEICs
richfool
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Aberdeen Asian Income trust

#152109

Postby richfool » July 13th, 2018, 9:12 am

Extracts from an article from the Investor's Chronicle:
Aberdeen Asian Income Fund (AAIF) has performed strongly in the past, but since 2013 has mostly underperformed MSCI AC Asia Pacific ex Japan index. However, over the past 18 months its managers have made changes to the trust, which trades at a discount to net asset value (NAV) of about 9 per cent, that mean it could be a value play.

"Since Flavia Cheong was appointed as head of Aberdeen's Asian equities team around 18 months ago we are starting to see an evolving investment philosophy for Aberdeen Asian Income Fund,"

Part of the reason for the trust's underperformance of MCSI AC Asia Pacific ex Japan index is because it doesn't hold companies that don't pay a dividend, and these include Chinese internet companies such as Tencent (700:HKG), which has recently helped to drive up the index.

The two other Asian equity income investment trusts – Henderson Far East Income (HFEL) and Schroder Oriental Income (SOI) – have also recently underperformed the regional benchmark for similar reasons. But Henderson Far East Income still trades on a premium to NAV and Schroder Oriental Income trades at around par. "So Aberdeen Asian Income Fund is clearly the value play in the Asian income sector," argue analysts at Stifel.

Aberdeen Asian Income's ongoing charge of 1.09 per cent is much lower than the 1.95 per cent that Schroder Oriental Income's ongoing charge plus performance fee adds up to. Aberdeen Asian Income doesn't have a performance fee, and its ongoing charge could fall if the value of its assets increase.


A bit like CTY in the UK sector, I have been disappointed with the capital growth performance of AAIF over recent years compared to its peers, though it continues to pay a good dividend yield. This article helps re-assure me that AAIF has been making changes to improve the situation and I continue to hold and take the dividends.

I hold: AAIF, SOI & JAI in that sector. The latter (JAI - JP Morgan Asian Income) does invest in the growthier technology stocks of the region and supplements its dividend from capital.

https://www.investorschronicle.co.uk/fu ... nd-growth/

Dod101
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Re: Aberdeen Asian Income trust

#157898

Postby Dod101 » August 8th, 2018, 12:51 pm

Your post has attracted no comment which seems to me to be a pity. I am thinking of changing my habit of a lifetime and may take the plunge with a Far East specialist trust. Taking a look at all three you have mentioned, none are very big and all have considerable overlap in holdings. I suppose that is no surprise as they are all fishing in the same pool. Aberdeen seems to me to have the most 'oriental' feel and it appears to be managed from Singapore with a Chinese lady in charge of the investment side.

It does not seem easy to get up to date stats on them and they do not seem to be quoted in my newspaper, the Times. How do you get up to date figures in them please?

Dod

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Re: Aberdeen Asian Income trust

#157915

Postby mike » August 8th, 2018, 1:31 pm

Have a look at HFEL as well. I hold this and AAIF as the country focus is markedly different for both.

Mike

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Re: Aberdeen Asian Income trust

#157935

Postby ReformedCharacter » August 8th, 2018, 2:25 pm

mike wrote:Have a look at HFEL as well. I hold this and AAIF as the country focus is markedly different for both.

Mike

I hold both, HFEL is one of my larger holdings and AAIF a more recent purchase. HFEL has done well for me, I first bought in 2014 and have bought more on 3 occasions. XIRR is a little over 11%. I'll buy more AAIF when the price drops a bit :)

RC

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Re: Aberdeen Asian Income trust

#157959

Postby everhopeful » August 8th, 2018, 4:06 pm

Dod101 wrote:It does not seem easy to get up to date stats on them and they do not seem to be quoted in my newspaper, the Times. How do you get up to date figures in them please?

Dod


I use HL website and also FE Trustnet and Morningstar.

richfool
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Re: Aberdeen Asian Income trust

#157962

Postby richfool » August 8th, 2018, 4:12 pm

I feel quite disappointed by the capital growth performance of AAIF., but am aware that it is paying the highest yield of the 3 IT's that I hold in that sector, (AAIF, SOI, JAI).

Whilst JAI has the best capital growth of the three, I am very conscious that it has a far greater exposure to China and to technology stocks, which to me makes it the riskiest (and potentially the most volatile).

The sector is listed here, then click on the individual trusts:-

http://citywire.co.uk/money/investment- ... ePeriod=12

...(or they can be viewed through HL website).

Dod101
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Re: Aberdeen Asian Income trust

#157977

Postby Dod101 » August 8th, 2018, 5:05 pm

Thanks richfool. I will take a careful look. On the whole I am not overly keen on specialist trusts.

Dod


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