Aberdeen Asian Income Fund (AAIF) had a strong 2025 generating a 22.2% underlying return that beat the 21.3% of the MSCI AC Asia Pacific ex Japan index, with performance boosted by Aberdeen fund managers Eric Chan and Isaac Thong’s technology stocks benefiting from spending on artificial intelligence (AI).
Shareholders enjoyed a 30% return as the share price discount narrowed from 12.5% to 7.6% in response to buybacks and the 6%-yielder’s move to an “enhanced” dividend at the start of the year.
The annual results showed AI-related investments drove the performance. Taiwanese companies Accton Technology, ASE Technology and Taiwan Union Technology benefited from higher hardware demand. South Korea’s Samsung Electronics also did well as semiconductor prices rose on rising memory needs, although the managers’ underweight in rival SK Hynix was costly.
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