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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

August 2008


Markets & Economic Overview

Most Asian equities fell in July. Sentiment was affected by the deceleration in global growth, high inflation and the collapse of US mortgage-lender IndyMac. India and China bucked the downtrend: the former rose after the government survived a no-confidence vote, while the latter was buoyed by moves to stabilise the market. Second-quarter growth slowed as external demand and domestic consumption eased. Korea led forecasts lower for the year. While central banks in India, Indonesia, Thailand and the Philippines raised interest rates, the majority kept rates unchanged. China opted to tighten controls to deter speculative inflows of foreign capital. New Zealand was a notable exception, cutting interest rates instead. In politics, Taiwan ties with mainland China continued to thaw, Korea and Thailand reshuffled their cabinets, thousands of Malaysians protested the hike in fuel prices, and Anwar Ibrahim faced new charges of sexual misconduct.

Portfolio news

During the month, we added to several holdings on price weakness, such as Singapore's ST Engineering and Thailand's Siam Cement. In other news, Samsung Electronics posted weaker-than-expected second-quarter results due to declining margins in its semiconductor and digital media businesses. However, it was the only profitable memory chip company, underlining its dominance as the sector's lowest cost producer. Swire Pacific unit HAECO Group will invest in a new RMB1bn maintenance centre in Sichuan, while sister-company Cathay Pacific warned that higher fuel prices would likely hurt its 2008 results.

Outlook

The fallout from the slowdown in global growth and high inflation will continue to dominate sentiment in regional stock markets. Political risks have risen too, as the strain of rising prices feed a growing discontent. We believe that equity markets will continue to be volatile, in the face of worsening corporate earnings. Central bank policy continues to lag the rapid rise in prices, while attempts to remove subsidies face growing resistance. With many market benchmarks back to levels last seen a year ago, we are starting to see opportunities again. We have few concerns about our holdings, which have sound businesses and solid balance sheets.




Source: Monthly Factsheet Aberdeen Asset Managers Limited

2 May 2008, Asian Pacific Equities Update


Hugh Young, Managing Director of Aberdeen Asset Management Asia Ltd



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Hugh Young

Awards

  • Winner, Moneywise Investment Awards 2006