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Aberdeen New Dawn Investment Trust PLC

 

Objective

The objective of Aberdeen New Dawn Investment Trust PLC is to provide shareholders with a high level of capital growth through equity investment in the Asia Pacific countries excluding Japan. In addition, it is the Investment policy of the company to invest in no more than 15 per cent of its gross assets in other listed investment companies (including listed investment trusts).

Manager's Monthly Report

July 2010


Market Review

Asian equity markets ended mixed in June on ongoing concerns that Europe’s austerity drive may affect the global recovery. China’s move to de-peg the renminbi from the US dollar provided some respite. Economic data stayed positive but there were signs that growth may start to slow, particularly in China, where the pace of manufacturing output decelerated. Inflation advanced further in China, India, Korea and Indonesia but most central banks continued to hold interest rates steady. Only Taiwan and New Zealand raised interest rates. In politics, Chinese regulators warned of rising bad debt from the banking sector’s exposure to property; Taiwan signed a trade pact with Beijing that will see lower tariffs and increased market access for services; and in Australia, Julia Gillard became the first female prime minister after she ousted Kevin Rudd.

Portfolio Review

There were no major changes to the portfolio in June. In portfolio-related news, Rio Tinto will invest US$469 million in a nickel and copper mine in the US after receiving the necessary approvals, a positive development that highlights the diversity of the group’s asset base and its growth profile. In Indonesia, Singapore-listed Oversea-Chinese Banking Corporation increased its stake in Bank OCBC NISP to 81.9% after it bought out International Finance Corp.

Outlook

Economies appear at a crossroads, with leading indicators pointing to slower growth. Even China, the world’s engine room, is experiencing a deceleration, although growth remains positive for now. Clouding the outlook further is the slew of austerity measures being introduced in Europe. Such fiscal prudence at a time when final private demand is still weak risks pushing the world back into recession. Hence, we remain cautious but are confident that our holdings, which are characterised by their solid balance sheets, experienced management, and sound business practices, will remain resilient and able to weather the challenges that lie ahead.




Source: Monthly Factsheet Aberdeen Asset Managers Limited