The announcement comes as the fund published its annual results which indicated another positive year for the fund, as its net asset value increased by 10.5%.  

This was in line with the MSCI All Countries Asia Pacific ex-Japan High Dividend Yield Index’s 10.6% gain over the same period but behind the 14.9% return on the MSCI All Countries Asia Pacific ex Japan Index. The share price rose by 14.2% on a total return basis to 214.0p, narrowing the discount to 5.8% of the NAV per Ordinary Share. 

The trust’s manager said that this robust performance can be attributed to the Investment Manager’s astute approach in selecting high-dividend yielding stocks with robust balance sheets and well defined ESG frameworks.

The total dividend for 2019 was 9.25p (2018: 9.25p). This increase maintains the trend that has been established over the last 11 years and means that the Company continues to be a “next-generation dividend hero” as recognised by the Association of Investment Companies (AIC), having raised dividends for at least 10 years.

The first interim dividend for the year has been maintained at 2.25p per share. The level of the remaining three dividends for 2020 will be considered at each quarter-end, at which point an announcement will be made by the company.

In the year to 31 December 2019, about £0.3 million has been transferred to the company’s revenue reserves after deducting the payment of the fourth interim dividend. The net revenue reserve amounts to £11.0m (about 6.2p per share) and any decision as to whether this will be utilised in 2020 (and by how much) will be taken at the time of each of the remaining quarterly dividend declarations.

Commenting on the results, Yoojeong Oh, manager of Aberdeen Asian Income Fund, said: “Although our quality and income-focused investment style was not in favour last year, the portfolio holdings were able to capture some of the growth rally while maintaining an attractive payout for shareholders.

”Our investment philosophy is to find good quality companies that offer both capital growth and an attractive dividend story over the long term. We have a team of more than 40 analysts based on the ground across Asia meeting companies and uncovering often-mispriced opportunities. Our in-house investment process based on fundamental analysis enables us to identify businesses that are easy to understand, with a clear earnings growth trajectory that underpins the sustainability of their dividends.” 

Charles Clarke, chairman of Aberdeen Asian Income Fund, added: “These reserves have been deliberately accumulated over the past decade and I am pleased to say that they cover two thirds of the annual dividend payment. Whilst we have not yet needed to use these reserves, it provides an added level of comfort to your Company’s ability to pay dividends as COVID-19 impacts revenues and earnings across Asia. 

“The Board is conscious of the ongoing demand for yield and will continue to aim to reward shareholders when possible to do so. We are proud to have maintained a progressive policy despite the various economic, political and currency fluctuation risks seen both in Asia and in the UK since your Company’s inception.”