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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 05-Dec-2013Ord
* Debt at market value
** Debt at par
Source: Morningstar, NAV = Net Asset Value, excluding income.
40 Princes Street,
Registered in Scotland as an Investment Company Number 106049
The objective of Edinburgh Dragon Trust plc is 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, Andrew Gillan gives an update on a wide range of subjects including the Trust's performance, the geographic and sectoral positioning of the portfolio and an outlook for the Trust.
Asian equities rose in October amid signs of resilience in some regional economies. Markets also gained from improving global risk appetite following the last-minute deal to reopen the US government and suspend the debt ceiling. Third-quarter GDP rose 7.8% in China, reversing the slowdown in previous quarters. Data were also upbeat in Singapore and Korea, but Taiwan’s expansion was hampered by sluggish exports. India’s manufacturing sector contracted further as output and new orders declined. India raised interest rates to target inflation, while Singapore will allow its currency to appreciate gradually.
In October, we pared various positions, including Korea-listed regional banks BS Financial and DGB Financial, on relative share price outperformance. We invested the proceeds in holdings such as Jardine Strategic, whose stock price has been under pressure on concerns over the slowdown in Indonesia, one of its key markets. Nevertheless, we believe the company is well positioned to benefit from positive demographic trends over the longer term. In other news, Samsung Electronics announced solid third-quarter results driven by the success of its mobile business and an improvement in the semiconductor division. AIA’s profits beat estimates as record growth in new business resulted in higher margins and volumes. It also saw double-digit expansion across all markets.
Focus is likely to shift to China’s meeting of top leaders to discuss the next phase of the country’s growth. The government could prove its mettle, yet it may be months or years before the full impact of reforms is felt. Until then, the mainland is in for a period of restructuring and, along with the rest of Asia, would have to adjust to a slower pace of growth. Meanwhile, improving US data and the lack of a clear signal from the Fed regarding its pace of stimulus have brought forward the prospect of tapering. Before that happens, however, markets could continue to be liquidity-led. We think that the withdrawal of easy money is not a bad thing, given the artificial support for share prices. Over the longer term, we would prefer to see share price gains driven by improvements in company fundamentals and earnings growth. On this front, we are confident of the holdings in our portfolio, given their financial strength and sound business models, which should help them weather the current headwinds and place them on a firmer footing to enjoy a growth recovery.
Source: Monthly Factsheet Aberdeen Asset Managers Limited