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The Company currently conducts its affairs so that securities issued by Edinburgh Dragon Trust plc can be recommended by financial advisers to ordinary retail investors in accordance with the FCA’s rules in relation to non-mainstream pooled investment products (NMPIs) and intends to continue to do so for the foreseeable future.
The Company’s securities are excluded from the FCA’s restrictions which apply to non-mainstream investment products because the company would qualify as an investment trust if the company were based in the UK.
The Alternative Investment Fund Manager Directive (“AIFMD”) requires Aberdeen Fund Managers Limited, as the alternative investment fund manager of Edinburgh Dragon Trust plc, to make available to investors certain information prior to such investors’ investment in the Company.
The AIFMD is intended to offer increased protection to investors in investment products that do not fall under the existing European Union regime for regulation of investment products known as “UCITS”.
The value of investments and the income from them may go down as well as up and investors may get back less than the amount invested. The tax benefits relating to ISA investments may not be maintained. Please refer to the Key Facts documents contained in the ISA/Share Plan Brochure & Application form for general and specific investment risks attaching to the individual trusts.Read the detailed Risk Warning
Past performance is not a guide to future results.
See latest monthly factsheet below for performance history.
At close 29-Jan-2015Ord
* Debt at market value
** Debt at par
Source: Morningstar, NAV = Net Asset Value, excluding income.
Holdings are subject to change at any time. Holdings should not be relied upon in making investment decisions and should not be construed as research or investment advice regarding specific securities. By accessing the portfolio holdings, you agree not to reproduce, distribute or disseminate the portfolio holdings, in whole or in part.
40 Princes Street,
Registered in Scotland as an Investment Company Number 106049
To achieve long term capital growth through investment in the Far East. The company’s benchmark index is the MSCI All Country Asia (ex Japan) Index. Investments are made in stock markets in the region, with the exception of Japan and Australasia, principally in large companies. When appropriate, the trust will utilise gearing to maximise long term returns.
In this webcast, Adrian Lim, gives an update on a wide range of subjects including performance, a sector breakdown, the twenty largest investments and an outlook for the Trust.
Asian equities fell in December, hurt by the Russian rouble’s collapse amid the weaker oil price, which ignited fears of contagion emanating from emerging markets. Expectations of an imminent Federal Reserve rate hike also pared gains. Conversely, Chinese A-shares continued their liquidity-driven rally.
In December, we took profits from Taiwan Semiconductor Manufacturing Company after the stock rose just over 30% in the year and was trading near its 52-week high as investors were cheered by indications that earnings momentum could be stronger than management’s earlier forecasts. In Singapore, we pared lender OCBC after subscribing to its rights issue and opting for the dividend in the form of stock rather than cash. Both were priced at a significant discount to its shares. The lender remains one of the more conservatively managed banks within our portfolio.
In corporate news, Samsung Electronics plans to hike its full-year dividend by up to 50% to boost shareholder returns. The news, following its share buyback, lifted the share price. Standard Chartered will sell its Hong Kong and Shenzhen consumer finance units as part of its strategy to shed non-core businesses.
Asia faces a number of risks in 2015. Key among these is China’s slowing economy. While the potential for a credit crisis remains, we believe Beijing has the balance sheet strength to mitigate systemic risk in its financial markets. In India and Indonesia, the pace of reforms is encouraging, although failure to live up to expectations could exasperate investors. Stability has returned to Thailand after the coup but any slip-up by the military could re-ignite unrest.
In the near term, the prospect of a US rate hike and a stronger dollar could compel fund outflows from Asia. But we think the normalisation of American monetary policy is a good thing as it weans markets off speculative capital. Furthermore, Asia is on a firmer footing today to withstand short-term outflows than back in late 2013, when it experienced the first tremors from tapering. In addition, we are likely to see greater monetary policy divergence. Unlike the US, some Asian economies may choose to cut rates to stimulate demand as inflationary pressures ease on the back of lower oil prices. While this is likely to be a volatile year on the macroeconomic front, we remain confident of the quality of our companies, characterised by prudent management, solid finances and good growth prospects. Notwithstanding higher household debt, Asia’s long-term story still holds, buttressed by rising wealth, young populations and pent-up demand for housing, consumer durables, transport and banking services.
Source: Monthly Factsheet Aberdeen Asset Managers Limited