The fund’s NAV is ahead of the 25.7% return from the MSCI AC Asia Pacific ex Japan Index. The firm also delivered a dividend yield of 6.3% noting the strong performance was driven by the portfolio’s exposure to information technology, particularly companies linked to artificial intelligence (AI) demand and related supply chains. Total net assets reached £506million, rising from £406.9m at 31 December 2025.

Revenue earnings per share increased from 8.75p to 12.36p compared to the first six months for the previous year, with a second interim dividend of 5.55p per share payable on August 21. Technology accounts for 49.1% of total assets in AAIF’s portfolio with Samsung Electronics, SK Hynix, and MediaTek being among its largest holdings.

Chair Jane Routledge wrote: “While market volatility in AI, semiconductor and related technology stocks has increased since the period end, the portfolio remains broadly diversified across Asia’s many growth opportunities, helping to support resilience through different market environments.

“These gains were partly offset by weaker performance in areas more exposed to domestic demand. Consumer and financial holdings in China detracted, reflecting weak consumer confidence and the continued negative wealth effect from the property downturn.”

AAIF has also delivered further positive news for shareholders by narrowing its discount to NAV to 5.7% during the first half of this year from 7.6% at the beginning of the year reflecting increased demand following its enhanced dividend policy.

The investment manager also increased its exposure to companies outside of information technology by selectively adding financials, industrials and consumer sector holdings.

Its new investments include: Australian gaming firm Aristocrat Leisure, Vietnamese electronics retailer Dien May Xanh, energy producer Santos, battery maker Contemporary Amperex Technology, and infrastructure services provider Ventia. Within technology, Hon Hai Precision Industry and Grand Process Technology were added.

AAIF exited positions in Centuria Industrial REIT, Centurion Accommodation REIT, and Charter Hall Long Wale REIT, reallocating capital from lower conviction and selected real estate assets. The repositioning occurred before the recent declines in semiconductor and AI stocks.

She concluded: “Importantly, the portfolio is not dependent on any single theme or market. It remains invested across a range of sectors and countries, with exposure both to companies benefiting from structural growth opportunities and to businesses providing attractive and sustainable income streams. This balance has served shareholders well over time and remains central to the company’s investment approach.”