Yoojeong Oh

Ian Cadby, chairman, confirmed that the company has delivered an “excellent performance for the 12 months to 31 December 2021, consolidating the strong performance in the previous year”.

Mr Cadby said that by targeting the income and growth potential of Asia’s most compelling and sustainable companies, this focus on quality companies has enabled abrdn Asian Income Fund Limited to outperform both market indices (comparing net asset value total return) while delivering an above-benchmark dividend yield of 4.1%.

He continued: “For 2021, the second year of the coronavirus pandemic, Asian equity markets experienced a fairly volatile market environment. However, despite these choppy market conditions, abrdn Asian Income Fund Limited delivered an excellent performance for the 12 months to 31 December 2021, consolidating the strong performance in the previous year.

“On a total return basis the net asset value per share (NAV) rose by 11.0%, surpassing the MSCI All Countries Asia Pacific ex Japan High Dividend Yield Index’s return of 8.1% as well as the MSCI All Countries Asia Pacific ex Japan Index’s decline of 1.8%.

“This robust result attests to the portfolio’s composition, driven by the Investment Manager’s prudent investment approach of investing in quality companies with strong balance sheets.”

Mr Cadby concluded: “Overall, the case for income investing in Asia remains strong. Dividends fell sharply relative to earnings during the pandemic. However, looking forward, there is plenty of room for significant increases over the next couple of years, given low payout ratios and healthy free cashflow generation.

“It is also worthwhile noting that the region’s high-yielding universe offers immense value and a broad opportunity set for investors. I should emphasise, however, the importance of careful stock-picking. abrdn Asian Income Fund Limited has now delivered dividend increases for 13 consecutive years, which the Board attributes to your Investment Manager’s focus on high-yielding companies with strong fundamentals.”

Yoojeong Oh, investment director, abrdn Asian Income Fund Limited, added: “Asia is home to some of the world’s best companies and presents a rich hunting ground for compelling stocks that offer both income and growth potential. It may come as a surprise but dividend contribution in Asia has been increasing and now accounts for about half of total returns to shareholders.

“Moreover, companies that pay dividends in Asia are diversified across sectors and geographies. For this reason, the Company is able to invest in high-quality holdings throughout the region with good capital and income growth opportunities across several themes.

“Through the portfolio’s technology holdings, the Company has exposure to tech enablers such as TSMC, as well as Samsung Electronics, which also taps into the building Asia thematic through its mobile and 5G infrastructure businesses.

“The company’s financial holdings straddle both the aspirational consumer and digital future trends through their online banking platforms and their ability to provide the growing base of middle-class consumers with increasingly sophisticated financial products and services. The Company also finds dividends and growth in the ongoing green space, where companies such as Taiwan’s Hon Hai and South Korea’s LG Chem, are supplying the growing demand for electric vehicles.”