Gaining exposure to dynamic ASEAN region

Aberdeen New Thai Investment Trust 21 December 2016

Aberdeen New Thai Investment Trust

Gaining exposure to dynamic ASEAN region

Investment trusts

21 December 2016

Price

477.5p

Market cap

£90.7m

AUM

£106.8m

NAV*

547.3p

Discount to NAV

12.7%

NAV**

558.4p

Discount to NAV

14.5%

*Excluding income. **Including income.

Yield

1.8%

Ordinary shares in issue

19.0m

Code

ANW

Primary exchange

LSE

AIC sector

Country Specialists: Asia Pacific

Benchmark

SET index

Share price/discount performance

Three-year performance vs index

52-week high/low

501.0p

348.5p

592.7p

414.2p

**Including income.

Gearing

Gross*

2.5%

Net*

0.8%

*As at 30 November 2016.

Analysts

Gavin Wood

+44 (0)20 3681 2503

Mel Jenner

+44 (0)20 3077 5720

Aberdeen New Thai Investment Trust is a research client of Edison Investment Research Limited

Aberdeen New Thai Investment Trust (ANW) has built a track record of more than 25 years as a specialist investor in Thai equities. The manager focuses on high-quality, cash-generative companies, which underpin ANW’s sector-leading 1.8% dividend yield. ANW’s NAV performance has been strong over one year, but lagged the SET index rally, which was led by more speculative stocks. The Thai stock market was largely unaffected by the passing of King Bhumibol in October but a short-term softening of economic activity is likely as the country mourns. However, an improving economic outlook and opportunities for Thai companies to expand into the dynamic ASEAN region are encouraging prospects for the medium term.

12 months ending

Share price
(%)

NAV
(%)

SET index
(%)

MSCI World
(%)

FTSE All-Share (%)

30/11/12

45.1

48.1

37.9

17.4

12.2

30/11/13

1.2

(0.0)

(0.0)

5.4

24.3

30/11/14

26.3

22.1

22.9

11.0

14.5

30/11/15

(19.7)

(16.1)

(16.1)

(6.8)

3.9

30/11/16

31.6

27.7

39.0

29.5

25.0

Source: Thomson Datastream. Note: 12-month rolling discrete total returns in sterling terms.

Investment strategy: Consistent, disciplined approach

Aberdeen’s Asian equities investment team follows a consistent, disciplined bottom-up process, undistracted by market fluctuations, aiming to add value through stock selection. The team seeks high-quality companies, trading at valuations that do not reflect their long-term potential, and meeting management before investment is an essential step in the process. The manager aims to maintain a diversified portfolio but sector exposures are not influenced by index weightings. A long-term approach is taken, reflected by portfolio turnover averaging c 10% pa over the last five years. Gearing is used selectively to enhance returns, up to a maximum 15% of NAV.

Market outlook: Positive over the medium term

Although lower than the ASEAN region as a whole, Thailand’s medium-term GDP growth is projected to be above that in major developed economies. While public investment is driving growth, the government aims to hold debt close to its current level and foreign currency reserves are seen as sufficient to deal with any short-term capital outflows that may be prompted by US rate hikes. The Thai market’s 14.5x forward P/E multiple is close to a 10-year high, but is lower than the 15.3x average for the ASEAN-5 countries and investors may also be attracted by its 3.1% dividend yield (25% premium to world markets) as well as the country’s improving economic outlook and opportunities for Thai companies to expand into faster growing neighbouring ASEAN countries over the medium term.

Valuation: Sector-leading 1.8% dividend yield

ANW’s share price discount to NAV (including income) has largely stayed within a 10% and 20% range over the last three years, averaging 15.4%. The trust’s current discount is in line with the peer group average, while its 1.8% yield is the highest in the Asia Pacific country specialists peer group.

Exhibit 1: Trust at a glance

Investment objective and fund background

Recent developments

ANW’s investment objective is to provide a high level of long-term, above-average capital growth through investment in Thailand. The trust’s portfolio comprises a concentrated portfolio of equities listed on the Stock Exchange of Thailand (SET). Constructed through bottom-up stock selection, ANW’s portfolio is diversified across a broad range of industries, with exposures not linked to SET index allocations.

6 December 2016: Sarah MacAulay appointed to the board, with effect from 1 January 2017.

10 October 2016: Interim results to 31 August 2016. NAV total return +19.4%; SET index total return +29.0%.

23 June 2016: James Robinson retired from board, succeeded as senior independent director by Clare Dobie.

13 May 2016: Final results to 28 February 2016. NAV total return -9.5%; SET index total return -11.6%; 8.50p final dividend proposed.

Forthcoming

Capital structure

Fund details

AGM

June 2017

Ongoing charges

1.45%

Group

AAM Asia

Final results

May 2017

Net gearing

0.8%

Manager

Asian Equities Team

Year end

28 February

Annual mgmt fee

1.0% of net assets

Address

Bow Bells House, 1 Bread Street, London EC4M 9HH

Dividend paid

June

Performance fee

None

Launch date

December 1989

Trust life

Indefinite

Phone

+44 (0)500 000 040

Continuation vote

No – see page 6

Loan facilities

£10m multi-currency facility

Website

www.newthai-trust.co.uk

Dividend policy and history (financial years)

Share buyback policy and history (financial years)

ANW targets capital growth rather than income and dividends may fluctuate with the level of income received. An annual dividend is paid in June each year.

ANW has annually renewed authority to repurchase up to 14.99%, and allot up to 10% of its issued share capital.

Shareholder base (as at 8 December 2016)

Portfolio exposure by sector (excluding cash, as at 30 November 2016)

Top 10 holdings (as at 30 November 2016)

Portfolio weight %

Company

Country

Sector

30 November 2016

30 November 2015*

Siam Cement

Thailand

Construction materials

5.6

5.2

Big C Supercenter

Thailand

Commerce

5.4

5.4

Bangkok Insurance

Thailand

Insurance

5.0

5.5

Siam Commercial Bank

Thailand

Banking

4.6

4.6

Kasikornbank

Thailand

Banking

4.5

4.8

Advanced Info Service

Thailand

Info. & comms. technology

4.2

3.5

AEON Thana Sinsap

Thailand

Finance & securities

4.0

3.7

Home Product Center

Thailand

Commerce

3.8

N/A

PTT Exploration & Production

Thailand

Energy & utilities

3.6

3.6

Hana Microelectronics

Thailand

Electronic components

3.3

3.8

Top 10

44.0

44.2

Source: Aberdeen New Thai Investment Trust, Morningstar, Thomson Reuters, Bloomberg, Edison Investment Research. Note: *N/A where not in November 2015 top 10.

Market outlook: Long-term investment case remains

The passing of King Bhumibol in mid-October after 70 years on the throne overshadowed other events in Thailand but had little effect on market sentiment, with the Thai stock market moving higher in the following weeks, extending the January to October market rally to over 50% in sterling terms. While declaring a year-long official mourning period, Thailand’s prime minister encouraged businesses to continue as usual, aiming to limit negative economic effects. Although Thailand’s GDP growth moderated to 0.6% in the third quarter, the IMF forecasts 2016 GDP growth ahead of 2015, with growth in all ASEAN-5 countries strengthening in 2017 and future years. Public spending and tourism continue to drive the economy, with lacklustre exports and subdued domestic demand weighing on manufacturing. Public investment is a key growth driver, with a planned eight-year infrastructure investment programme in partnership with the private sector, including c $20bn of projects scheduled to start in 2017. Public debt is stable at 44% of GDP (external debt 33%), with the government committed to keeping debt below 50% of GDP. Thailand has a sizeable current account surplus and foreign currency reserves stand at c 40% of GDP, seen by the governor of the Bank of Thailand as sufficient to deal with any short-term capital outflows that could be precipitated by further US rate hikes. A reliance on exports (69% of GDP in 2015) makes moderating Chinese demand a concern, but foreign direct investment is expected to recover following Thailand’s August 2016 referendum, which endorsed the military junta’s draft constitution, paving the way for a general election in 2017 and the return of a democratically-elected government.

Exhibit 2: Thailand market performance and GDP growth versus world

Thai market performance vs Asia and world over 10 years (rebased)

Average % real GDP growth – Thailand vs ASEAN and world economies

Source: Thomson Datastream, IMF October 2016 World Economic Outlook, Edison Investment Research

Thailand’s SET index has outpaced Asian and world markets over 10 years (Exhibit 2 left-hand chart), and over the year to end-November 2016, the SET index returned 39.0% in sterling terms, compared with 29.5% for MSCI AC Asia ex-Japan and 25.0% for MSCI World. Although close to its 10-year high, the Thai market’s current 14.5x forward P/E multiple stands at a 5% discount to world markets and its 3.1% dividend yield represents a 25% premium to world markets. While valuations may have moved ahead of fundamentals during 2016’s market rally, Thailand could still represent an attractive market for investors, with an improving economic outlook and opportunities for Thai companies to expand into faster growing neighbouring ASEAN countries over the medium term.

Fund profile: Established Thai equities specialist

Launched in December 1989, ANW is the only LSE-listed investment trust focused exclusively on Thailand. The trust seeks to provide a high level of long-term, above-average capital growth through investing in a relatively concentrated but diversified portfolio of equities quoted on the SET. Performance is benchmarked against the SET index but a bottom-up approach to stock selection is adopted, and sector allocations are not linked to index exposures. As a result, fund performance can diverge materially from the benchmark. The manager targets capital growth rather than income, but a consistent focus on cash-generative companies with strong balance sheets has resulted in a relatively high level of revenue earnings and ANW is differentiated from peers by its dividend yield. ANW is managed by the Asian Equities team of Aberdeen Asset Management Asia (AAM Asia) with day-to-day management undertaken by the Bangkok office and oversight provided from Singapore.

The fund managers: Asian equities team

The managers’ view: Increasing indirect ASEAN exposure

The managers anticipate some short-term softness in economic activity as Thailand mourns the passing of King Bhumibol. However, the weaker performance of the Thai stock market in November 2016 is seen as a reflection of a broader diminishing of foreign investors’ risk appetite, affected by the US presidential election and the prospect of a US rate hike.

Although ANW only invests in companies listed in Thailand, the managers highlight the growing trend for portfolio companies to expand into the dynamic, faster-growing ASEAN region. Portfolio holdings Siam Cement and Siam City Cement provide good examples of this trend. Siam Cement’s presence in the ASEAN region has evolved steadily over a decade and c 20% of its assets are now outside Thailand, including cement plants in Myanmar, Indonesia and Cambodia and paper and packaging facilities in Vietnam and the Philippines. Siam City Cement has operated a production facility in Indonesia for a number of years and recently announced the acquisition of cement plants in Sri Lanka, Bangladesh and Vietnam valued at c $1bn.

The only change to ANW’s portfolio holdings during 2016 was via participating in the IPO of Banpu subsidiary, Banpu Power, a power-generation company considered to have strong management, robust financials and sound growth prospects. The managers funded this purchase by selling part of ANW’s holding in Hana Microelectronics after a period of stronger performance, having added to the holding earlier in 2016 on share price weakness. The managers observe that the share prices of portfolio companies tended to lag during the rally in 2016, largely due to their more defensive characteristics, with more speculative stocks such as Thai Airways having led the market run up. Thai Airways’ shares, which are not held in the portfolio, gained over 300% in the rally, despite the company having a weak balance sheet and requiring significant operational restructuring.

Over the 12 months to end-August 2016, top contributors to ANW’s performance included Home Product Center and Tisco Financial. Home Product Center bucked the generally weak retail industry trend to achieve good sales and margins, with an unusually hot summer helping sales of air conditioners and fans. In a weak banking sector, smaller lender Tisco Financial demonstrated resilience, with an improvement in non-performing loans and its main automotive business aided by rising second-hand vehicle prices and a revival in car and truck sales. The main detractor from performance over this period was TV and radio broadcaster, BEC World, which was affected by lower advertising revenues across the industry, although the managers remain confident in the company’s ability to weather the current downturn.

Asset allocation

Investment process: Consistent, disciplined stock selection

ANW’s Asian equities investment team follows a consistent bottom-up investment process, based on a disciplined evaluation of companies, seeking to add value through stock selection. The team aims to identify good-quality companies trading at valuations that do not reflect the long-term potential of the business. A range of qualitative and valuation measures are used and meeting management is considered essential. Qualitative factors include management strength, business focus, balance sheet strength and corporate governance, while valuation analysis includes an assessment of financial ratios relative to the overall market and peer group, taking into account a company’s individual business prospects. Top-down factors are secondary considerations and, while the manager aims to maintain a diversified portfolio, there are no formal restrictions on sector weightings. Individual stock exposure is limited to 10% of net assets. A long-term approach is taken, reflected by portfolio turnover typically at a modest level of c 10% pa. Gearing is used selectively to enhance portfolio returns and is permitted up to 15% of net assets.

Current portfolio positioning

ANW’s relatively concentrated portfolio comprised 40 investments at 30 November 2016. The top 10 holdings represented 44.0% of the portfolio (Exhibit 1), similar to end-November 2015, when the portfolio also comprised 40 investments. Portfolio turnover was 12% over the year to the August 2016 half-year end, slightly lower than the 16% turnover in the preceding 12-month period.

As shown in Exhibit 3, although concentrated, ANW’s portfolio is broadly diversified across 15 sectors. The manager seeks to maintain a diversified portfolio, but the bottom-up approach to stock selection can lead to sector weightings diverging appreciably from the benchmark SET index. This is reflected in the portfolio’s 8.0pp overweight position in insurance (reduced from 9.7pp at end-November 2015) and 7.2pp underweight in transportation & logistics. Since end-November 2015 ANW’s underweight in information & communications technology has reduced, largely due to this sector’s 2.6pp lower weighting in the SET index. The trust’s overweight in media & publishing has reduced, with the sale in November 2016 of Amarin Printing & Publishing, a long-held stock that has suffered from a tough operating environment in recent years. A significant 2.8pp increase in the energy & utilities weighting in the SET index has made this a notable underweight position for ANW.

Exhibit 3: Portfolio sector exposure vs benchmark index

% unless stated

Portfolio
end-Nov 2016

Portfolio
end-Nov 2015

Change
(pp)

Index
weight

Active weight
vs index (pp)

Trust weight/ index weight (x)

Banking

16.1

15.8

0.3

13.7

2.4

1.2

Energy & utilities

14.1

13.5

0.6

18.0

(3.9)

0.8

Construction materials

10.8

10.2

0.6

5.6

5.2

1.9

Insurance

9.3

11.3

(2.0)

1.3

8.0

7.2

Commerce

9.2

8.6

0.6

10.5

(1.3)

0.9

Property development

6.3

6.1

0.2

6.3

0.0

1.0

Finance & securities

5.1

5.0

0.1

2.4

2.7

2.1

Automotive

4.5

4.3

0.2

0.5

4.0

9.0

Info. & comms. technology

4.2

3.5

0.7

8.3

(4.1)

0.5

Healthcare services

4.2

3.6

0.6

5.1

(0.9)

0.8

Food & beverages

3.5

3.8

(0.3)

6.9

(3.4)

0.5

Media & publishing

3.4

6.2

(2.8)

1.4

2.0

2.4

Electronic components

3.3

3.8

(0.5)

1.5

1.8

2.2

Packaging

2.1

1.6

0.5

0.4

1.7

5.3

Property fund

2.0

1.8

0.2

2.9

(0.9)

0.7

Transportation & logistics

0.0

0.0

0.0

7.2

(7.2)

0.0

Other

0.0

0.0

0.0

8.0

(8.0)

0.0

Cash

1.9

0.9

1.0

N/A

N/A

N/A

100.0

100.0

100.0

Source: Aberdeen New Thai Investment Trust, Edison Investment Research

Performance: Strong absolute returns but trailing index

Exhibit 5 shows that ANW’s NAV total return has lagged its SET index benchmark over one, three, five and 10 years, although the trust has seen periods of sustained outperformance during the last 10 years, illustrated in Exhibit 6. Helped by sterling weakness, ANW delivered a strong absolute performance over one year and the trust’s longer-term performance has also been robust in absolute terms, with compound NAV total returns of 14.1% pa and 14.8% pa over five and 10 years respectively. ANW’s significant outperformance versus regional and world indices over 10 years (Exhibit 5) reflects the long-term strength of the Thai stock market, while relative weakness over three months accounts for a large part of ANW’s underperformance versus the MSCI World index over three and five years. As illustrated in Exhibit 6, ANW’s performance has diverged from the SET index over 10 years, with periods of relative strength and weakness broadly offsetting over the last five years. SET index outperformance versus the MSCI AC Asia ex-Japan and MSCI World indices over one year reflects the market recovery during 2016, which reversed the correction in mid-2015.

Exhibit 4: Investment trust performance to 30 November 2016

Price, NAV and benchmark total return performance, one-year rebased

Price, NAV and benchmark total return performance (%)

Source: Thomson Datastream, Edison Investment Research. Note: Three, five and 10-year performance figures annualised.

Exhibit 5: Share price and NAV total return performance, relative to indices (%)

 

One month

Three months

Six months

One year

Three years

Five years

10 years

Price relative to SET Index

(2.0)

(0.5)

(1.3)

(5.3)

(6.8)

(0.8)

(26.1)

NAV relative to SET Index

(2.5)

(2.2)

(1.8)

(8.1)

(8.7)

(1.9)

(17.3)

Price relative to MSCI AC Asia ex-Japan

(0.0)

(2.8)

(2.2)

1.7

(0.4)

18.1

42.9

NAV relative to MSCI AC Asia ex-Japan

(0.5)

(4.5)

(2.7)

(1.4)

(2.4)

16.8

59.9

Price relative to MSCI World

(4.3)

(5.6)

2.5

5.3

(10.2)

(5.5)

46.5

NAV relative to MSCI World

(4.8)

(7.2)

2.0

2.1

(12.1)

(6.6)

63.9

Source: Thomson Datastream, Edison Investment Research. Note: Data to end-November 2016. Geometric calculation.

Exhibit 6: NAV performance relative to benchmark over 10 years

Source: Thomson Datastream, Edison Investment Research

Discount: Broadly in line with five-year average

ANW’s policy is to buy back shares selectively when it is considered to be in the best interest of shareholders. The trust has an indefinite life, but a special resolution to wind up the company will be proposed at the AGM, if in the 12 weeks preceding the financial year end the shares have traded at an average discount to NAV in excess of 15%. For previous financial years, the discount to NAV excluding income was considered, but the board has determined that NAV including income will be used as the basis for this calculation in future. As shown in Exhibit 7, ANW’s share price discount to NAV (including income) has predominantly moved in a 10% to 20% range over the last three years. The current 14.5% discount compares to its three- and five-year averages of 15.4% and 14.7%.

Exhibit 7: Share price discount to NAV (including income) over three years (%)

Source: Thomson Datastream, Edison Investment Research

Capital structure and fees

ANW has 19.0m shares in issue. Since 28 February 2016, ANW has bought back and cancelled 0.9m shares, representing 4.4% of the shares in issue at the start of the financial year, a similar level to the repurchases made during the previous financial year.

ANW has a three-year £10.0m multi-currency revolving loan facility, which runs to October 2018. The facility requires borrowings not to exceed 20% of net asset value, adjusted for certain excluded assets, and requires net asset value to be above £28m. The board imposes a 15% restriction on gearing. At end-November 2016, £2.7m was drawn against the loan facility, equating to 2.5% gross gearing, while net gearing stood at 0.8%; net asset value was £106m.

ANW pays a monthly management fee to AAM Asia at a rate of 1.0% pa of NAV; there is no performance fee. For the year to 28 February 2016, ongoing charges were 1.45%.

Dividend policy and record

ANW pays an annual dividend in June each year relating to the preceding financial year. The majority of earnings are paid out, making the trust’s dividend dependent on the level of income received from portfolio investments in each year. As a result, the dividend paid to shareholders may fluctuate from year to year. ANW targets capital growth rather than income, but the board’s attitude is to at least maintain the dividend to the extent that profits or revenue reserves are available for distribution. 96% of earnings were paid out in 2016, with the dividend increasing by 3.7% to 8.50p (see Exhibit 1). Adjusting for the payment of this dividend in June 2016, revenue reserves at the February 2016 year end equate to 10.58p per share, based on the current shares in issue.

Peer group comparison

Exhibit 8 shows a comparison of ANW with a peer group of Asia Pacific country specialist closed-ended funds. ANW is the only fund in the group of 10, which is focused on Thailand and therefore, to a large extent, the comparison reflects performance differences between stock markets across the region. ANW’s NAV total return is ahead of the peer group average over one year, below the average over three and five years, but comfortably leads the smaller peer group of eight funds over 10 years. In terms of risk-adjusted returns, ANW’s Sharpe ratios over one and three years largely reflect underlying relative performance. Although one of the smaller funds, ANW’s ongoing charge is among the lowest in the peer group. ANW’s share price discount to NAV is in line with the peer group average and it has the highest yield of the four dividend-paying funds in the peer group.

Exhibit 8: Country Specialists: Asia Pacific peer group as at 20 December 2016

% unless stated

Market cap £m

NAV TR 1 Year

NAV TR 3 Year

NAV TR 5 Year

NAV TR 10 Year

Sharpe 1y (NAV)

Sharpe 3y (NAV)

Discount (ex-par)

Ongoing charge

Perf. fee

Net gearing

Dividend yield (%)

Aberdeen New Thai

90.7

35.8

33.5

90.2

312.8

1.2

0.1

(12.7)

1.45

No

101

1.8

Barramundi Limited

79.7

28.9

28.7

50.6

95.9

0.4

(0.0)

(8.1)

1.99

Yes

100

0.0

Fidelity China Special

927.2

21.4

80.4

178.2

0.6

0.8

(13.5)

1.22

Yes

129

1.1

India Capital Growth

81.8

21.1

91.5

121.8

(1.7)

0.3

0.9

(17.1)

1.98

Yes

100

0.0

JPMorgan Chinese

141.6

16.9

32.7

86.5

165.2

0.2

0.2

(15.4)

1.48

No

109

0.8

JPMorgan Indian

628.6

17.9

69.3

91.6

123.3

0.1

0.7

(10.2)

1.24

No

108

0.0

New India

218.9

20.9

70.6

98.6

197.7

0.2

0.8

(10.6)

1.30

No

100

0.0

VietNam Holding

120.1

42.4

99.7

204.6

84.3

1.1

0.9

(16.5)

2.93

Yes

100

0.0

VinaCapital Vietnam Opp Fund

557.4

61.4

80.0

133.4

160.9

1.7

0.8

(18.8)

1.83

Yes

100

0.0

Weiss Korea Opportunity

136.4

16.2

39.9

(0.1)

0.2

(4.0)

1.82

No

100

1.6

Average

298.2

28.3

62.6

117.3

142.3

0.6

0.5

(12.7)

1.72

105

0.5

Rank

8

3

8

7

1

2

9

5

7

4

1

Source: Morningstar, Edison Investment Research. Note: TR=total return. Sharpe ratio is a measure of risk-adjusted return. The ratios shown are calculated by Morningstar for the past 12- and 36-month periods by dividing a fund’s annualised excess returns over the risk-free rate by its annualised standard deviation. Net gearing is total assets less cash and equivalents as a percentage of net assets.

The board

Sarah MacAulay will join the board as a director on 1 January 2017. She has 20 years’ Asian investment experience in London and Hong Kong, including the management and marketing of Thai equity portfolios, and is a director of JPMorgan Income and Capital Trust. Her appointment follows the retirement of James Robinson at the June 2016 AGM after more than nine years’ service, and brings the board back to five non-executive directors, four of whom are independent of the investment manager. Nicholas Smith (appointed director March 2013, chairman June 2013) is a director of JPMorgan European Smaller Companies Trust and Schroder AsiaPacific Fund. Clare Dobie (appointed December 2013) succeeded James Robinson as senior independent director; she is a director of Alliance Trust, F&C Capital & Income Trust and Schroder UK Mid Cap Fund. Andy Pomfret (appointed September 2014) is chairman of Miton UK MicroCap Trust and a director of Graphite Enterprise Trust. Non-independent director Hugh Young (director of Aberdeen Asset Management Asia and Aberdeen Asset Management) has served on ANW’s board since its launch.

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Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2016. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

245 Park Avenue, 39th Floor

10167, New York

US

Sydney +61 (0)2 9258 1161

Level 25, Aurora Place,

88 Phillip Street, Sydney

NSW 2000, Australia

Wellington +64 (0)4 8948 555

Level 15, 171 Featherston St

Wellington 6011

New Zealand

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

245 Park Avenue, 39th Floor

10167, New York

US

Sydney +61 (0)2 9258 1161

Level 25, Aurora Place,

88 Phillip Street, Sydney

NSW 2000, Australia

Wellington +64 (0)4 8948 555

Level 15, 171 Featherston St

Wellington 6011

New Zealand

Edison, the investment intelligence firm, is the future of investor interaction with corporates. Our team of over 100 analysts and investment professionals work with leading companies, fund managers and investment banks worldwide to support their capital markets activity. We provide services to more than 400 retained corporate and investor clients from our offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority (www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584). Edison Investment Research (NZ) Limited (Edison NZ) is the New Zealand subsidiary of Edison. Edison NZ is registered on the New Zealand Financial Service Providers Register (FSP number 247505) and is registered to provide wholesale and/or generic financial adviser services only. Edison Investment Research Inc (Edison US) is the US subsidiary of Edison and is regulated by the Securities and Exchange Commission. Edison Investment Research Limited (Edison Aus) [46085869] is the Australian subsidiary of Edison and is not regulated by the Australian Securities and Investment Commission. Edison Germany is a branch entity of Edison Investment Research Limited [4794244]. www.edisongroup.com

DISCLAIMER
Copyright 2016 Edison Investment Research Limited. All rights reserved. This report has been commissioned by Aberdeen New Thai Investment Trust and prepared and issued by Edison for publication globally. All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable; however we do not guarantee the accuracy or completeness of this report. Opinions contained in this report represent those of the research department of Edison at the time of publication. The securities described in the Investment Research may not be eligible for sale in all jurisdictions or to certain categories of investors. This research is issued in Australia by Edison Aus and any access to it, is intended only for "wholesale clients" within the meaning of the Australian Corporations Act. The Investment Research is distributed in the United States by Edison US to major US institutional investors only. Edison US is registered as an investment adviser with the Securities and Exchange Commission. Edison US relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Edison does not offer or provide personalised advice. We publish information about companies in which we believe our readers may be interested and this information reflects our sincere opinions. The information that we provide or that is derived from our website is not intended to be, and should not be construed in any manner whatsoever as, personalised advice. Also, our website and the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. This document is provided for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. Edison has a restrictive policy relating to personal dealing. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report. Edison or its affiliates may perform services or solicit business from any of the companies mentioned in this report. The value of securities mentioned in this report can fall as well as rise and are subject to large and sudden swings. In addition it may be difficult or not possible to buy, sell or obtain accurate information about the value of securities mentioned in this report. Past performance is not necessarily a guide to future performance. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (ie without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision. To the maximum extent permitted by law, Edison, its affiliates and contractors, and their respective directors, officers and employees will not be liable for any loss or damage arising as a result of reliance being placed on any of the information contained in this report and do not guarantee the returns on investments in the products discussed in this publication. FTSE International Limited (“FTSE”) © FTSE 2016. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

245 Park Avenue, 39th Floor

10167, New York

US

Sydney +61 (0)2 9258 1161

Level 25, Aurora Place,

88 Phillip Street, Sydney

NSW 2000, Australia

Wellington +64 (0)4 8948 555

Level 15, 171 Featherston St

Wellington 6011

New Zealand

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

245 Park Avenue, 39th Floor

10167, New York

US

Sydney +61 (0)2 9258 1161

Level 25, Aurora Place,

88 Phillip Street, Sydney

NSW 2000, Australia

Wellington +64 (0)4 8948 555

Level 15, 171 Featherston St

Wellington 6011

New Zealand

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