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Stock Analysis & ValuationAberdeen New Thai Investment Trust Plc (ANW.L)

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Previous Close
£398.00
Sector Valuation Confidence Level
High
Valuation methodValue, £Upside, %
Artificial intelligence (AI)n/an/a
Intrinsic value (DCF)n/a
Graham-Dodd Method2.27-99
Graham Formulan/a

Strategic Investment Analysis

Company Overview

Aberdeen New Thai Investment Trust Plc (ANW.L) is a UK-based investment trust focused on delivering long-term capital growth by investing primarily in Thai equities. Listed on the London Stock Exchange, the trust targets above-average returns through a diversified portfolio spanning sectors such as banking, automotive, energy, real estate, and consumer goods. Managed by Aberdeen Asset Management Asia Limited, the trust leverages deep regional expertise to capitalize on Thailand's dynamic economic growth and emerging market opportunities. With a strategic emphasis on sectors like finance, property development, and technology, ANW.L provides investors exposure to Southeast Asia's growth potential while mitigating risks through diversification. The trust's investment approach combines fundamental analysis with active management, aiming to outperform benchmarks like the Stock Exchange of Thailand (SET) Index. As a closed-end fund, it offers liquidity through its LSE listing while maintaining a long-term investment horizon. The trust's performance is closely tied to Thailand's economic trends, including tourism recovery, infrastructure development, and domestic consumption.

Investment Summary

Aberdeen New Thai Investment Trust presents a specialized play on Thailand's equity market, offering diversification benefits for investors seeking emerging market exposure. The trust's FY2021 results showed a net income of 5.43 million GBPp (pence) and an EPS of 3.28p, supported by a dividend payout of 176.5p per share, indicating income potential. However, its beta of 1.07 suggests slightly higher volatility than the broader market. Key attractions include professional management by Aberdeen Standard Investments and sectoral diversification across Thailand's growth sectors. Risks include concentrated emerging market exposure, currency fluctuations (GBP-THB), and dependence on Thailand's political/economic stability. The trust's debt of 10 million GBPp against cash reserves of 189k GBPp warrants monitoring. Suitable for investors with higher risk tolerance and long-term Asia-focused allocation strategies.

Competitive Analysis

Aberdeen New Thai Investment Trust competes in the niche segment of single-country emerging market funds with several competitive differentiators. Its primary advantage is the specialized focus on Thailand combined with Aberdeen Standard's on-the-ground research capabilities in Southeast Asia. The trust's multi-sector approach (spanning 15+ industries) provides diversification uncommon in more concentrated Thai equity funds. However, its closed-end structure may trade at discounts/premiums to NAV, unlike open-ended alternatives. Performance is benchmarked against the SET Index, requiring consistent stock-picking to justify active management fees. The trust's small size (~16.5 million shares) limits scalability but allows for nimble positioning in mid-cap opportunities. Competitive weaknesses include higher expense ratios typical of active EM funds and susceptibility to outflows during risk-off periods. Its dividend yield (historically ~4-5%) is competitive but not exceptional relative to Thai REITs or dividend-focused peers. The manager's ability to navigate Thailand's regulatory environment (e.g., foreign ownership limits) is a key value-add versus passive alternatives.

Major Competitors

  • Thaioil Group PCL (THA.L): ThaiOil is a direct energy sector play listed in London via GDRs, offering pure exposure to Thailand's oil refining sector. While ANW.L provides diversification, ThaiOil offers deeper sector specialization but higher volatility tied to oil prices. Lacks the multi-sector risk mitigation of ANW.L's portfolio.
  • Thai Focused Equity Fund (TFUND.BK): This Bangkok-listed open-end fund provides similar Thai equity exposure with lower fees but lacks the LSE listing convenience for international investors. Tends to have higher large-cap bias versus ANW.L's broader market approach. No dividend history comparable to ANW.L.
  • Templeton Emerging Markets Investment Trust (TEMIT.L): A broader EM competitor with ~10% Thailand allocation. Offers geographic diversification but dilutes Thai exposure. Larger AUM provides scale advantages but reduces country-specific alpha potential. Historically lower yield than ANW.L's Thailand-focused distributions.
  • CP All PCL (CPALL.BK): Dominant Thai consumer stock (7-Eleven operator) often held in ANW.L's portfolio. Direct investment offers concentrated retail exposure but lacks ANW.L's sector balance. Higher liquidity but no dividend policy alignment with ANW.L's income approach.
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