Aberdeen Asian Income had a strong first half of the year, up 30.9% on a total return basis in the six months to the end of June. Its net asset value (NAV) return – which strips out share price and focuses solely on the performance of the underlying holdings – was 28%.
Performance was primarily driven by an overweight to the technology sector and AI stocks in particular.
In her first chair’s statement since taking on the role in May, Jane Routledge highlighted connectivity chip designer MediaTek, AI server materials supplier Taiwan Union Technology and South Korean memory manufacturer Samsung Electronics as key contributors in the first half.
Performance of trust vs sector and benchmark over 6 months
Source: FE Analytics. Data to end of June.
It wasn’t all success, with Routledge noting that strong returns were pared back slightly by consumer and financial holdings in China, which she attributed to weak consumer confidence and the continued hangover from the country’s property downturn.
The trust is managed with a focus on quality companies that have strong earnings and robust balance sheets, aiming to provide investors with both an attractive yield and capital growth.
As a result, the trust is expected to smooth out volatility and provide “resilience during periods of extreme market swings”.
During the period, the trust broadened outside of technology with new investments in Australian gaming company Aristocrat Leisure and Vietnamese electronics retailer Dien May Xanh, which she described as “supported by leading market positions and earnings growth opportunities”.
It also invested in the energy space with a position in Australia's Santos and in the industrials sector through Taiwanese batteries and energy storage firm Contemporary Amperex Technology and Ventia, a leading provider of essential infrastructure services across Australia and New Zealand.
Hon Hai Precision Industry, the world's largest electronics manufacturer, and Grand Process Technology, a supplier of advanced semiconductor packaging equipment, were also added.
Making way, the trust sold off some of its lower-conviction real-estate positions, including two real-estate investment trusts (REITs).
The trust has an enhanced dividend policy, committing to pay 1.5625% per quarter of NAV. On this front, the first and second interim dividends declared for the year were 4.47p and 5.55p per share, respectively.
Based on the share price of 335p on 30 June 2026, this equates to an annualised share price dividend yield of 6.3%.
“The global environment remains uncertain. Geopolitical tensions persist, while interest rate and trade policy developments continue to influence investor sentiment and economic growth across major markets,” said Routledge.
“Against this backdrop, the board is encouraged by the resilience of the company's portfolio, reflected in its continued solid performance, and by the disciplined approach of the investment manager, particularly in continuing to find sustainable and diversified income bearing opportunities.”