AAIF Abrdn Asian Income Fund Limited

abrdn Asian Income Fund Limited (the "Company")

Legal Entity Identifier (LEI):  549300U76MLZF5F8MN87

18 July 2024

Declaration of Second Interim Dividend

The Directors of the Company have today declared a second interim dividend in respect of the year ending 31 December 2024 of 2.55p per Ordinary share of No Par Value (2023: 2.50p). The dividend will be payable on 23 August 2024 to Ordinary shareholders on the register on 26 July 2024, ex-dividend date 25 July 2024.

The Board is aware of the importance of dividends to shareholders. In the absence of unforeseen circumstances it is the Board's intention to increase the level of dividend for the year (2023: 11.75p) so as to enable the Company to retain its status as a "next generation dividend hero" as recognised by the Association of Investment Companies.

It is the Board and the Investment Manager's view that Asia remains one of the most compelling regions for investors looking for growth and income potential. More than 50% of Asian equity total returns now come from dividends and dividend growth in Asia has exceeded that of Europe and the US. Companies in Asia have less geared balance sheets than their global peers and free cash flow generation cover on dividends has been increasing, both of which highlight the potential for increasing payout ratios in the region.  

The Board and the Investment Manager believe that the often overlooked dividend credentials of Asian equities will become ever more attractive, with investors increasingly recognising the income potential of some of the world's most exciting companies. 

The level of the remaining two dividends for 2024 will be considered at each quarter end, at which point an announcement will be made by the Company. In the event of an uncovered dividend, there are healthy revenue reserves built up by the Company that the Board will consider using as appropriate. Any decision as to whether revenue reserves will be utilised (and by how much) will be taken at the time of the declaration of the fourth interim dividend in January 2025.

The Company operates a Dividend Reinvestment Plan ("DRIP") which is managed by the registrar, Link Group, and the deadline for elections under the DRIP will be 2 August 2024.

abrdn Investments Limited

Administrator