**Summary of Invesco Asia Dragon Trust plc Half-Yearly Financial Report (Six Months to 31 October 2025)**
**Overview**
Invesco Asia Dragon Trust plc reported strong half-year results following its merger with Invesco Asia Trust, achieving significant outperformance against its benchmark, the MSCI AC Asia ex Japan Index. The trust delivered a **NAV total return of +34.1%** and a **share price total return of +37.2%**, compared to the benchmark’s +31.4%. This performance reflects robust absolute and relative gains, driven by strategic stock and country selection, particularly in South Korea, China, and Hong Kong.
**Key Financial Highlights**
**Net Assets**Increased by **30.8%** to £954.6 million.
**NAV per Share**Rose by **31.6%** to 468.83p.
**Share Price**Climbed **34.4%** to 430.00p.
**Discount Narrowing**Reduced from -10.2% to -8.3%.
**Gearing**Gross gearing at **2.6%** and net gearing at **2.0%**.
**Performance Drivers**
1. **Market Dynamics**Asian markets rebounded due to AI-driven tech growth, monetary easing, and improved US-China relations.
2. **Stock Selection**Tech giants like Samsung Electronics, Taiwan Semiconductor Manufacturing, and LG Chemical contributed significantly.
3. **Country Allocation**Underweight in India and exposure to South Korea, China, and Hong Kong boosted returns.
4. **Currency Impact**Sterling weakness added ~2% to returns.
**Strategic Initiatives**
**Dividend Policy**Paid quarterly dividends of 3.95p per share, totaling 7.90p for the period.
**Share Buybacks**: Repurchased 1235000 shares for £4.3 millionaccretive to NAV by 0.06%.
**Corporate Measures**Introduced a three-yearly unconditional tender at a 4% discount to NAV and enhanced shareholder engagement.
**Investment Case and Corporate Proposition**
**Active Management**Leveraging the expertise of Co-Portfolio Managers Fiona Yang and Ian Hargreaves to outperform passive strategies.
**Low Costs**Blended management fee of **0.57%** and projected ongoing charges of **0.72%**, making it a cost-effective Asian investment option.
**ESG Integration**Strong ESG approach embedded in investment decisions.
**Outlook**
**US-China Relations**A potential turning point in Sino-US ties could drive a "market melt-up" in Asia, particularly in China, South Korea, and Taiwan.
**Regional Opportunities**South Korea’s "Korea Up!" policy, Indonesia’s domestic demand, and Hong Kong’s resurgence are key growth areas.
**Risks**Geopolitical uncertainties, particularly US trade policies, remain a concern.
**Conclusion**
Invesco Asia Dragon Trust plc is positioned as a leading Asian investment trust, combining strong performance, strategic corporate initiatives, and a compelling investment case. The trust aims to trade at a premium, grow organically, and explore further combinations to maximize shareholder value.
**Key Metrics at a Glance**
**Metric**
**Six Months to 31 Oct 2025**
**Year Ended 30 Apr 2025**
NAV Total Return
+34.1%
+2.8%
Share Price Total Return
+37.2%
+7.1%
Benchmark Total Return
+31.4%
+3.9%
Net Assets (£000)
954614
729912
NAV per Share (p)
468.83
356.31
Share Price (p)
430.00
320.00
Discount (%)
8.3%
10.2%
This report underscores the trust’s resilience and strategic positioning in a dynamic Asian market environment.
| Metric | Six Months to 31 Oct 2025 | Year Ended 30 Apr 2025 | Change % |
|---|---|---|---|
| Total Return Statistics | |||
| Net Asset Value (NAV) Total Return | 34.1% | 2.8% | +1153.6% |
| Share Price Total Return | 37.2% | 7.1% | +423.9% |
| Benchmark Index Total Return | 31.4% | 3.9% | +705.1% |
| Capital Statistics | |||
| Net Assets (£'000) | 954,614 | 729,912 | 30.8% |
| NAV per Share (p) | 468.83 | 356.31 | 31.6% |
| Share Price (p) | 430.00 | 320.00 | 34.4% |
| Benchmark Index (Capital) | 1,306.16 | 1,005.56 | 29.9% |
| Discount per Ordinary Share | (8.3%) | (10.2%) | +18.6% |
| Gearing | |||
| Gross Gearing | 2.6% | 6.0% | -56.7% |
| Net Gearing | 2.0% | 5.7% | -64.9% |