Half-yearly Report
Invesco Asia Trust plc
Half-Yearly Financial Report
For the Six Months to 31 October 2011
Key Facts
Invesco Asia Trust plc is an investment trust listed on the London Stock
Exchange.
Investment Objective
The objective of Invesco Asia Trust plc is to provide long-term capital growth
by investing in a diversified portfolio of Asian and Australasian companies.
The Company aims to achieve growth in its net asset value in excess of the
Morgan Stanley Capital International All Countries Asia Pacific ex Japan Index,
measured in sterling.
Investment Policy and Risk
Invesco Asia Trust plc invests primarily in the equity securities of companies
listed on the stockmarkets of China, Hong Kong, India, Malaysia, Singapore,
South Korea, Taiwan, Thailand and Australasia. It may also invest in unquoted
securities up to 10% of the value of the Company's gross assets and in warrants
and options when it is considered the most economical means of achieving
exposure to an asset.
The Company is actively managed and the Manager has broad discretion to invest
the Company's assets to achieve its investment objective. The Manager seeks to
ensure that the portfolio is appropriately diversified having regard to the
nature and type of securities (such as performance and liquidity) and the
geographic and sector composition of the portfolio.
Full details of the Company's investment limits can be found on page 18 of the
2011 annual financial report.
Share Capital
At the period end the Company's issued share capital consisted of 94,956,757
ordinary shares of 10p each and 17,648,153 subscription shares of 1p each.
During the period, 820,152 subscription shares were exercised and converted to
ordinary shares.
Performance Statistics
The Benchmark Index of the Company is the MSCI All Countries Asia Pacific ex
Japan Index (£).
At At
31 October 30 April %
2011 2011 Change
Total Return Statistics(1)
Diluted net asset value -6.9
Benchmark Index -10.9
Capital Statistics
Net assets (£'000) 162,306 176,856 -8.2
Gross gearing 2.1% 4.1%
Net gearing 2.0% 3.9%
Net asset value:
-basic 170.7p 187.7p -9.1
-diluted 163.7p 177.6p -7.8
Benchmark Index - capital return(1) 265.0 303.5 -12.7
Mid-market price:
- ordinary shares 146.0p 166.1p -12.1
- subscription shares 19.0p 41.1p -53.8
Discount per ordinary share(2)
-cum income 10.8% 6.5%
-ex income 9.5% 4.9%
(1)Source: Thomson Reuters.
(2)The discount is the amount by which the mid-market price per ordinary share
is less than the diluted net asset value per share.
INTERIM MANAGEMENT REPORT INCORPORATING THE CHAIRMAN'S STATEMENT
Chairman's Statement
Performance and Prospects
In the six months ended 31 October 2011, global equity markets have endured an
extended period of volatility and Asia has been no exception. The Eurozone
sovereign debt crisis continues to dominate investor attention and combined
with signs of a slowdown in global economic growth, has led to a period of
heightened risk aversion which has seen Asian equity markets decline in line
with their global peers. While it is regrettable to report that the value of
the portfolio declined over the period, it is pleasing to note that the
Company's investment strategy has delivered solid outperformance relative to
the benchmark, underlining the importance of taking a long term perspective and
maintaining a focus on value. Over the period, the net asset value per ordinary
share fell by 6.9%, compared to the benchmark index, the MSCI All Countries
Asia Pacific ex Japan Index, which fell 10.9%, in sterling terms. The Company's
share price fell from 166.1p to 146.0p, while at the end of the period, the
discount to net asset value at which the shares trade stood at 9.5% (ex
income). The average discount for the year to date was 8.1%. During the period
under review, net gearing reduced from 3.9% to 2.0%. The Board frequently
review opportunities for gearing.
Dividend
As in previous years, no interim dividend is being declared.
Outlook
It is clear that Asian equity markets face a number of near-term headwinds,
some of which are beyond their control. Volatility is a feature we have come to
expect when investing in Asia, but market conditions should improve once
further progress is made towards resolution of the Eurozone debt crisis. The
Chinese authorities continue to take a proactive approach to policy-making as
demonstrated by the recent cut to the required reserve ratio of commercial
banks that clearly marked a formal entry into a monetary easing cycle.
Over the longer term there are solid fundamentals that continue to underpin
Asia's growing contribution to global economic growth. While developed markets
continue to struggle with a deleveraging cycle and years of likely anaemic
growth, the levels of growth being expected in Asia over the coming years are
far more attractive than those in developed economies. As reflected in recent
economic data, Asian economic growth is not immune from the slowdown in global
growth, but should become less dependent on exports to developed markets as
domestic consumption and intra-Asia trade continue to grow strongly -
structural trends supported by the region's favourable demographics and average
income trends. Meanwhile, Asia continues to enjoy relatively low levels of
leverage, with households, corporates and governments all enjoying strong
balance sheets - providing room for manoeuvrability should the need arise.
Recent evidence also shows that corporate profitability remains strong, and
Asian companies have proven to be increasingly aware of their responsibilities
to shareholders, further enhancing their attraction to investors. Asia's global
significance continues to rise and I believe that its long term prospects
continue to prove compelling.
Subscription Share Exercise
During the period under review, subscription shareholders had their second
opportunity to exercise their right to subscribe for one ordinary share of the
Company at a price of 125p. The second subscription period ended on 31 August
2011. As a result, 820,152 ordinary shares were allotted in mid-September 2011.
Subscription shareholders will have a final opportunity to convert their
holdings on 31 August 2012.
The issued share capital of your Company at the period end was 94,956,757
ordinary shares of 10p each and 17,648,153 subscription shares of 1p each.
David Hinde
Chairman
19 December 2011
Investment Management Report
Market & Economic Review
Asian equity markets fell over the period as market sentiment was hit by a
number of factors. Investors initially focused on inflationary pressures in
China and India and fears that policy tightening measures would stifle economic
growth. These domestic concerns were supplanted by growing uncertainty over the
Eurozone sovereign debt crisis and a row over the US debt ceiling. These led to
an increase in investor risk aversion, combined with signs of a global growth
slowdown. Apparent progress towards resolution of the Eurozone sovereign debt
crisis and signs that a `hard landing' in China had been averted helped lift
markets from their October lows but market sentiment remains weak and the
outlook opaque as investors lack confidence in European policymakers' ability
to resolve their debt crisis.
Performance between markets has been mixed - Hong Kong and China underperformed
in local currency terms, along with export-led economies like Taiwan and Korea.
Cyclical sectors led the market lower, with industrials and materials the worst
hit, while sectors with relatively defensive characteristics, like telecoms and
consumer staples fared better. In Hong Kong and China, property and financial
shares also sold off notably on negative newsflow surrounding the Chinese
property market and local government financing. India continues to struggle
with elevated levels of inflation and further monetary policy tightening. ASEAN
economies generally outperformed over the period, especially the Philippines
and Indonesia where inflationary pressures have remained muted allowing the
Bank Indonesia to cut interest rates unexpectedly by 25 basis points to 6.50%
to counter the effects of the global growth slowdown.
China's economy grew 9.1% year-on-year (y-o-y) in the third quarter which,
although less than expected, remains robust with retail sales growing by 17.7%
y-o-y. However, export growth to the EU fell from 22% y-o-y in September to
9.8% y-o-y in October prompting Premier Wen Jiabao to make a statement, widely
interpreted as the first signs of a softening in tone on liquidity tightening.
CPI inflation for October stands at 5.5% y-o-y, down from 6.2% in August. While
economic data from China remains firm there were signs of fading growth
elsewhere in the region, with second quarter GDP figures moderating in both
India and Korea. Asian industrial production figures remain positive, but have
begun to moderate, while export data appears resilient considering softer than
expected global growth. In corporate news, although interim company reporting
season for Asia largely met expectations, earnings forecasts are now being
revised down, particularly those more sensitive to a downturn in global growth.
Company Performance
In the six months to the end of October 2011, the Company's net asset value
decreased by 6.9%, which was ahead of the benchmark, the MSCI All Countries
Asia Pacific ex Japan Index, which fell 10.9% (both total return, £).
During the period the Company's exposure to commercial banks, real estate
developers and construction-related sectors detracted from overall performance
as negative newsflow surrounding the Chinese property market intensified with
weaker sales data suggesting property tightening measures introduced last year
were having an effect. The Company's lack of exposure to the telecoms sector
also detracted from overall performance as more defensive areas proved
resilient in a weak market.
However, the Company did manage to outperform meaningfully relative to the
benchmark benefiting from limited exposure to underperforming sectors such as
metals and mining although our holding in Australian miner, Iluka Resources,
was one of the strongest contributors to returns. Elsewhere, stock selection
was positive across a number of sectors including energy, IT, insurance, and
consumer discretionary. In the consumer sector, holdings in Daphne
International and LG Fashion made a positive contribution as earnings proved
robust, while in the IT sector, our holding in Samsung Electronics showed
resilience after a period of underperformance as the market began to recognise
the imminent bottoming of memory prices and the growth potential of its
smart-phone and display panel businesses. The top single contributor to overall
returns was Jardine Matheson, which continues to prove its worth as an
excellent proxy for the growth of consumption in Asia as its businesses
delivered impressive earnings.
Outlook for Asian Economies and Markets
Newsflow surrounding the Eurozone sovereign debt crisis and the degree to which
the global economy is slowing continue to be the external short term drivers of
Asian equities. Investors are likely to remain risk averse and markets volatile
until investors believe that a viable plan is in place to resolve the
Eurozone's financial crisis.
Domestically, the Asian economic outlook remains largely contingent on the
outlook for China. While the rate of economic growth in China is decelerating,
it is still at a relatively robust level which has helped temper fears of a
`hard' landing. Beyond the potential impact of a slowdown in global economic
growth, concerns still exist over bank lending, which grew out of hand in 2009/
10. The problem has been identified by the authorities and the rate of credit
growth has successfully been brought down to a more sustainable level, although
fears remain over bad debts emerging from local government financing vehicles,
and some loans made to small and medium sized enterprises. However, Chinese
banks are well capitalised, have good levels of general provisioning and strong
core operating profitability. The recent move by the Chinese authorities to cut
the reserve requirement ratio for banks marks the formal start of monetary
easing. We do not expect policy decisions to be as aggressive as in the past.
The slowdown so far has been gradual, and the authorities are still dealing
with the negative effects of the previous stimulus. However, there is certainly
room to ease monetary policy as and when it is required.
While we consider the current valuation of Asian equities undemanding at around
10.7 times 2011 earnings, the uncertainty in the economic outlook is likely to
lead to further earnings downgrades in the short term. Consensus expectations
for 2012 earnings growth of 11.3% remain too high in our opinion. However,
Asia's solid long term fundamentals remain in place. Economic growth continues
to compare favourably with that generated by developed economies, while
becoming less dependent on exports with domestic consumption growing strongly.
Furthermore, government, corporate and household balance sheets are in good
shape with low levels of debt.
Strategy
Given the deteriorating macroeconomic outlook, we adjusted the emphasis of the
Company early in the period by gradually building a more defensive bias. We
reduced our exposure to the more cyclical areas of the market and took profits
from holdings that had outperformed. As such, we cut our exposure to Taiwanese
technology companies and trimmed our holdings in banks although we continued to
hold select names in the financial sector, with real estate well represented
particularly in the retail and commercial areas.
More recently, market volatility has seen share prices across the region fall
to valuation levels that appear increasingly attractive. As such, we have
started selectively adding to areas that we believe have strong upside
potential, for example the energy sector, where share prices have been hit
unduly hard by declines in the oil price.
The Company continues to seek to capitalise on Asia's structural strengths,
especially the growth of domestic demand, with a focus on selecting
under-appreciated companies that offer relatively high predictability and
quality of earnings. We have recently seen particular value in the internet
sector where the growth potential is not fully recognised by the market in our
view. Millions of new users are joining such networks and companies are
increasingly relying on online advertising and other online brand building
exercises to capture greater market share. As such, we have introduced Baidu,
Sohu and Digital China to the portfolio - internet and IT Services companies
with leading businesses in their fields. The portfolio also continues to have
selective exposure to a few smaller companies (with market cap of less than
US$1 billion), which offer the opportunity to deliver superior returns due to
their being at an earlier stage in their growth cycle.
We continue to favour China and Hong Kong, believing that companies there can
take advantage of the favourable economic backdrop. We also have a positive
bias towards Korean companies which are valued at a discount relative to the
region despite offering decent growth and competitive advantages. We are
underweight in Australia due to the high level of the Australian dollar. This
represents a risk to the returns of offshore-based investors. It is also having
a deflationary impact on companies exposed to the domestic economy. As a result
many companies have been subject to earnings downgrades this year. This has
meant that we have been able to find investments elsewhere in the region that
offer better earnings profiles but at similar valuations. We remain modestly
underweight in India, where valuations in some areas are relatively full
although we remain on the lookout for opportunities as and when the market and
currency exhibit significant weakness. We have scaled back our exposure to
holdings in the Indonesian market which has enjoyed a decent period of
outperformance, preferring to add to quality franchises in Singapore, while
also having limited exposure to some of the smaller, more export dependent,
regional economies like Thailand and Malaysia.
Stuart Parks / Ian Hargreaves
Investment Managers
19 December 2011
RELATED PARTY
Invesco Asset Management Limited (`IAML'), a wholly-owned subsidiary of
Invesco Limited, acts as Manager, Company Secretary and Administrator to the
Company. Details of IAML's services and fee arrangements are given in the 2011
annual financial report, which is available on the Manager's website at
www.invescoperpetual.co.uk/investmenttrusts.
Principal Risks and Uncertainties
The principal risk factors relating to the Company can be summarised as
follows:
- Investment Policy and Process - the adopted investment policy and process may
not achieve the returns sought by the Company;
- Market movements and portfolio performance - a fall in the stock markets and/
or a prolonged period of decline in the stock markets relative to other forms
of investment will affect the performance of the portfolio;
- Foreign Exchange Risk - foreign exchange currency movements will affect the
non-sterling assets and liabilities of the Company and could have a detrimental
impact on performance;
- Ordinary Shares - share prices are affected by market sentiment, supply and
demand for the shares, and dividends declared as well as portfolio performance;
- Derivatives - derivative returns that do not exactly match the returns of the
underlying assets or liabilities being hedged may expose the Company to greater
loss than if the derivative had not been entered into;
- Gearing - the use of borrowings will amplify the effect on shareholders'
funds of portfolio gains and losses;
- Regulatory - consequences of a serious breach of regulatory rules could
include, but are not limited to, the Company being subject to capital gains on
its investments; suspension from the London Stock Exchange; fines; a qualified
audit report, reputational problems and a loss of assets through fraud; and
- Reliance on Third Party Service Providers - failure by any service provider
to carry out its obligations to the Company could have a materially detrimental
impact on the operation of the Company and affect the ability of the Company to
successfully pursue its investment policy.
A detailed explanation of these principal risks and uncertainties can be found
on pages 22 to 25 of the Company's 2011 annual financial report, which is
available on the Manager's website www.invescoperpetual.co.uk/investmenttrusts
In the view of the Board these principal risks and uncertainties are as much
applicable to the remaining six months of the financial year as they were to
the six months under review.
GOING CONCERN
The financial statements have been prepared on a going concern basis. The
Directors consider this is the appropriate basis as they have a reasonable
expectation that the Company has adequate resources to continue in operational
existence for the foreseeable future. In considering this, the Directors took
into account the diversified portfolio of readily realisable securities which
can be used to meet short-term funding commitments, and the ability of the
Company to meet all of its liabilities and ongoing expenses.
DIRECTORS' RESPONSIBILITY STATEMENT
in respect of the preparation of the half-yearly financial report
The Directors are responsible for preparing the half-yearly financial report
using accounting policies consistent with applicable law and UK Accounting
Standards.
The Directors confirm that to the best of their knowledge:
- the condensed set of financial statements contained within the half-yearly
financial report have been prepared in accordance with the Accounting Standards
Board's Statement `Half-Yearly Financial Reports';
- the interim management report includes a fair review of the information
required by 4.2.7R and 4.2.8R of the FSA's Disclosure and Transparency Rules;
and
- the interim management report includes a fair review of the information
required on related party transactions.
The half-yearly financial report has not been audited or reviewed by the
Company's auditors.
Signed on behalf of the Board of Directors.
David Hinde
Chairman
19 December 2011
Twenty-Five Largest Holdings AT 31 October 2011
Ordinary shares unless otherwise stated
Market
Value % of
Company Industry Group†Country £'000 Portfolio
Samsung Electronics Semiconductors South 10,027 6.1
Korea
Jardine Matheson Capital Goods Hong Kong 8,119 4.9
Daphne International Consumer Durables & Hong Kong 4,321 2.6
Apparel
United Phosphorus Materials India 4,238 2.6
Hutchison Whampoa Capital Goods Hong Kong 4,166 2.5
Shinhan Financial Banking South 4,057 2.4
Korea
HSBC Banking UK 3,995 2.4
DGB Financial Banking South 3,827 2.3
Korea
Taiwan Semiconductor Semiconductors Taiwan 3,425 2.1
Manufacturing
China Mobile R Telecommunication Hong Kong 3,354 2.0
Services
LG Fashion Consumer Durables & South 2,861 1.7
Apparel Korea
Korean Reinsurance Insurance South 2,859 1.7
Korea
QBE Insurance Insurance Australia 2,834 1.7
Hyundai Motor Automobiles & South 2,776 1.7
Components Korea
China Construction Bank H Banking China 2,702 1.6
BHP Billiton Materials Australia 2,694 1.6
Industrial & Commercial Banking China 2,609 1.6
Bank of China H
China Shenhua Energy H Energy China 2,586 1.6
Newcrest Mining Materials Australia 2,584 1.6
Infosys Technologies Software & Services India 2,581 1.6
Posco Materials South 2,566 1.5
Korea
Cnooc R Energy China 2,564 1.5
Charm Communications Media Hong Kong 2,518 1.5
China Taiping Insurance R Insurance Hong Kong 2,477 1.5
Hyundai Mobis Automobiles & South 2,420 1.5
Components Korea
89,160 53.8
Other investments 76,404 46.2
Total investments 165,564 100.0
R: Red Chip Holdings; H: H-Shares
†MSCI and Standard & Poor's Global Industry Classification Standard.
Condensed Income Statement
Year To
Six Months To Six months To 30
April
31 October 2011 31 October 2010
2011
Revenue Capital Total Revenue Capital Total Total
Return Return Return Return Return Return Return
£'000 £'000 £'000 £'000 £'000 £'000 £'000
(Losses)/gains on - (14,452) (14,452) - 14,000 14,000 25,303
investments held at
fair value through
loss or profit
(Losses)/gains on - (472) (472) - 41 41 368
foreign currency
revaluation
Income
  Overseas dividends 2,941 - 2,941 2,296 - 2,296 3,462
  Scrip dividends 305 - 305 265 - 265 564
  UK dividends 25 - 25 52 - 52 75
  Deposit interest - - - - - - 3
Gross return 3,271 (14,924) (11,653) 2,613 14,041 16,654 29,775
Investment (161) (483) (644) (141) (423) (564) (1,212)
management fee -
note 2
Other expenses (256) (3) (259) (237) (4) (241) (537)
Return before 2,854 (15,410) (12,556) 2,235 13,614 15,849 28,026
finance costs and
taxation
Finance costs - note (12) (36) (48) (10) (31) (41) (100)
2
Return on ordinary 2,842 (15,446) (12,604) 2,225 13,583 15,808 27,926
activities before
tax
Tax on ordinary (247) - (247) (184) - (184) (267)
activities
Net return on 2,595 (15,446) (12,851) 2,041 13,583 15,624 27,659
ordinary activities
after tax for the
period
Return per ordinary
share - note 3
Basic 2.8p (16.4)p (13.6)p 2.2p 14.5p 16.7p 29.4p
Diluted 2.7p (15.8)p (13.1)p 2.1p 14.2p 16.3p 28.5p
The total column of this statement represents the Company's profit and loss
account. The supplementary revenue and capital columns are presented for
information purposes in accordance with the Statement of Recommended Practice
issued by the Association of Investment Companies. All items in the above
statement derive from continuing operations and the Company has no other gains
or losses; therefore no statement of total recognised gains and losses is
presented. No operations were acquired or discontinued in the period.
Condensed Balance Sheet
Registered Number 03011768
At At At
31 October 30 April 31 October
2011 2011 2010
£'000 £'000 £'000
Fixed assets
Investments designated at fair value 165,564 183,564 172,395
Current assets
Amounts due from brokers - 80 27
Taxation 291 216 272
VAT recoverable 9 15 7
Prepayments and accrued income 46 526 65
Cash at bank 229 370 319
575 1,207 690
Creditors: amounts falling due
within one year
Bank overdraft - (651) -
Bank loans (3,409) (6,650) (7,490)
Amounts owed to brokers - (144) (356)
Accruals and deferred income (424) (470) (418)
(3,833) (7,915) (8,264)
Net current liabilities (3,258) (6,708) (7,574)
Total net assets 162,306 176,856 164,821
Capital and reserves
Share capital 9,672 9,598 9,598
Share premium 75,457 74,506 74,506
Capital redemption reserve 1,863 1,863 1,863
Special reserve 11,798 11,798 11,798
Capital reserve 59,187 74,633 63,540
Revenue reserve 4,329 4,458 3,516
162,306 176,856 164,821
Net asset value per share - note 4
Basic 170.7p 187.7p 174.9p
Diluted 163.7p 177.6p 166.9p
Condensed Cash Flow Statement
Six Months Six Months
To Year To To
31 October 30 April 31 October
2011 2011 2010
£'000 £'000 £'000
Net return before finance costs and (12,556) 28,026 15,849
taxation
Adjustment for losses/(gains) on 14,452 (25,303) (14,000)
investments
Translation differences 472 (368) (41)
Tax on unfranked investment income (333) (233) (280)
Scrip dividends received as income (305) (564) (265)
Decrease/(increase) in debtors 486 (172) 297
(Decrease)/increase in creditors (46) 80 9
Cash inflow from operating 2,170 1,466 1,569
activities
Servicing of finance
Interest paid on bank loans (48) (103) (42)
Taxation 11 5 93
Net dividends paid (2,724) (2,111) (2,111)
Capital expenditure and financial
investment
Purchase of investments (32,815) (64,320) (30,818)
Sale of investments 36,604 61,144 27,477
Net cash inflow/(outflow) before 3,198 (3,919) (3,832)
financing
Financing
Bank debt (3,241) 1,699 2,490
Conversion of subscription shares 1,025 374 374
Increase/(decrease) in cash in the 982 (1,846) (968)
period
Cash flow from movement in debt 3,241 (1,699) (2,490)
Translation difference (472) 368 41
Movement in net funds/(debt) in the 3,751 (3,177) (3,417)
period
Net debt at beginning of period (6,931) (3,754) (3,754)
Net debt at end of period (3,180) (6,931) (7,171)
Analysis of changes in net (debt)/
funds
Brought forward:
  Net (overdraft)/cash at bank (281) 1,246 1,246
  Debt due within one year (6,650) (5,000) (5,000)
Net debt brought forward (6,931) (3,754) (3,754)
Movements in the period:
  Cash inflow/(outflow) from bank 982 (1,846) (968)
  Exchange movement (472) 368 41
  Debt due within one year 3,241 (1,699) (2,490)
Net debt at end of period (3,180) (6,931) (7,171)
Condensed Reconciliation of Movements in Shareholders' Funds
Capital
Share Share Redemption Special Capital Revenue
Capital Premium Reserve Reserve Reserve Reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
For the year ended 30
April 2011
At 30 April 2010 9,571 74,159 1,863 11,798 49,957 3,586 150,934
Final dividend - - - - - (2,111) (2,111)
Net return for the - - - - 24,676 2,983 27,659
year
Exercise of (3) 3 - - - - -
subscription shares
into ordinary shares
Issue of ordinary 30 344 - - - - 374
shares on conversion
of subscription
shares
At 30 April 2011 9,598 74,506 1,863 11,798 74,633 4,458 176,856
For the six months
ended 31 October 2011
At 30 April 2011 9,598 74,506 1,863 11,798 74,633 4,458 176,856
Net return from - - - - (15,446) 2,595 (12,851)
ordinary activities
Exercise of (8) 8 - - - - -
subscription shares
into ordinary shares
Issue of ordinary 82 943 - - - - 1,025
shares on conversion
of subscription
shares
Final dividend for - - - - - (2,730) (2,730)
2011
Unclaimed dividends - - - - - 6 6
At 31 October 2011 9,672 75,457 1,863 11,798 59,187 4,329 162,306
For the six months
ended 31 October 2010
At 30 April 2010 9,571 74,159 1,863 11,798 49,957 3,586 150,934
Final dividend for - - - - - (2,111) (2,111)
2010
Net return from - - - - 13,583 2,041 15,624
ordinary activities
Exercise of (3) 3 - - - - -
subscription shares
into ordinary shares
Issue of ordinary 30 344 - - - - 374
shares on conversion
of subscription
shares
At 31 October 2010 9,598 74,506 1,863 11,798 63,540 3,516 164,821
Notes to the Condensed Financial Statements
1. Accounting Policy
The condensed financial statements have been prepared using the same accounting
policies as those adopted in the 2011 annual financial report, which were
prepared under the historical cost convention and are consistent with
applicable UK Accounting Standards and with the Statement of Recommended
Practice `Financial Statements of Investment Trust Companies and Venture
Capital Trusts'.
2. Management Fee and Finance Costs
Investment management fees and finance costs of borrowings are charged 75% to
capital and 25% to revenue.
3. Basis of Returns
Six Months to Six Months to Year to
31 October 31 October 30 April
2011 2010 2011
Basic returns after tax:
Revenue £2,595,000 £2,041,000 £2,983,000
Capital £(15,446,000) £13,583,000 £24,676,000
Total £(12,851,000) £15,624,000 £27,659,000
Weighted average number of ordinary
shares in issue during the period:
  -basic 94,355,015 93,917,098 94,025,950
  -diluted 97,783,176 95,716,705 96,912,161
The subscription shares are dilutive for the purposes of return per share when
they would result in the issue of ordinary shares. This occurs when the average
market price of the ordinary shares during the period is greater than the
exercise price of 125p. The average market price for the six months ended 31
October 2011 was 153.07p and was dilutive. The average market price for the six
months ended 31 October 2010 was 138.32p and for the year ended 30 April 2011
was 147.99p, both of which were dilutive.
4. Basis of Net Asset Value (`NAV') per Ordinary Share
At At At
31 October 30 April 31 October
2011 2011 2010
(unaudited) (audited) (unaudited)
Basic:
Ordinary shareholders' funds £162,130,000 £176,671,000 £164,636,000
Subscription shareholders' funds of 1p £176,000 £185,000 £185,000
each
Total shareholders' funds £162,306,000 £176,856,000 £164,821,000
Number of ordinary shares in issue 94,956,757 94,136,605 94,136,605
Net asset value per ordinary share 170.7p 187.7p 174.9p
Diluted:
Ordinary shareholders' funds £184,366,000 £199,941,000 £187,906,000
Number of ordinary shares in issue 112,604,910 112,604,910 112,604,910
Net asset value per ordinary share 163.7p 177.6p 166.9p
When the basic NAV is greater than the exercise price of 125p, the subscription
shares are dilutive. However, subscription shareholders are not likely to
exercise their option unless the market price is greater than the exercise
price as this could dilute their holdings
5. Share Capital
(a) Ordinary Shares of 10p each
Six Months to Year to Six Months
to
31 October 30 April 31 October
2011 2011 2010
Number of ordinary shares:
Brought forward 94,136,605 93,837,425 93,837,425
Subscription shares exercised 820,152 299,180 299,180
In issue at period end 94,956,757 94,136,605 94,136,605
No shares have been repurchased since the period end.
(b) Subscription Shares of 1p each
During the period under review no new subscription shares were issued. On
2 September 2011, 820,152 subscription shares were converted into 820,152
ordinary shares, resulting in there being 17,648,153 subscription shares in
issue at 31 October 2011.
(c) Total Share Capital
The total share capital of the Company is £9,672,000 comprising £9,496,000 in
respect of ordinary shares and £176,000 in respect of subscription shares.
6. Dividends
The Company paid a final dividend of 2.9p per ordinary share for the year ended
30 April 2011 on 12 August 2011 to shareholders on the register on 15 July
2011. The Directors do not propose the payment of an interim dividend (2010:
nil).
7. Investment Trust Status
It is the intention of the Directors to conduct the affairs of the Company so
that it satisfies the conditions for approval as an investment trust company
set out in section 1158 of the Corporation Tax Act 2010.
8. Status of Half-Yearly Financial Report
The financial information contained in this half-yearly report, which has not
been reviewed or audited by the independent auditors, does not constitute
statutory accounts within the meaning of section 434 of the Companies Act 2006.
The financial information for the half years ended 31 October 2011 and 31
October 2010 have not been audited. The figures and financial information for
the year ended 30 April 2011 are extracted and abridged from the latest
published accounts and do not constitute the statutory accounts for that year.
Those accounts have been delivered to the Registrar of Companies and include
the Report of the Independent Auditors, which was unqualified and did not
include a statement under section 498 of the Companies Act 2006.
By order of the Board
Invesco Asset Management Limited
Company Secretary
19 December 2011
DIRECTORS, INVESTMENT MANAGER AND ADMINISTRATION
Directors
David Hinde (Chairman)
Carol Ferguson
Tom Maier
James Robinson (Chairman of the Audit and Management Engagement Committees)
All Directors are members of the Audit, Management Engagement and Remuneration
Committees
Manager, Secretary and Registered Office
Invesco Asset Management Limited
30 Finsbury Square, London EC2A 1AG
020 7065 4000
Company Secretarial contact: Kelly Nice
Company Number
Registered in England and Wales: No. 03011768
Registrars and Transfer Office
Capita Registrars,
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
If you hold your shares directly rather than through an ISA or savings scheme,
and have any queries relating to your shareholding you should contact Capita
on: 0871 664 0300 between 8.30am and 5.30pm Monday to Friday (excluding Bank
Holidays). Calls cost 10p per minute plus network extras (from outside the UK:
+44 (0)208 639 3399).
Shareholders holding shares directly can also access their holding details via
Capita's website www.capitaregistrars.com or www.capitashareportal.com
Capita provide an on-line and telephone share dealing service to existing
shareholders who are not seeking advice on buying or selling. This service is
available at www.capitadeal.com or 0871 664 0364. Calls cost 10p per minute
plus network extras (From outside the UK: +44 (0)203 367 2686). Lines are open
8am to 4.30pm Monday to Friday (excluding Bank Holidays).
Invesco Perpetual Investor Services
Invesco Perpetual has an Investor Services Team available to assist you from
8.30am to 6.30pm each business day on 0800 085 8677.
The Invesco Perpetual investment trust website is:
www.invescoperpetual.co.uk/investmenttrusts
The contents of websites referred to in this document, or accessible from links
within those websites are not incorporated into, nor do they form part of this
document.
Invesco Asset Management Limited
30 Finsbury Square
London EC2A 1AG
020 7065 4000
Invesco Asset Management Limited is a wholly owned subsidiary of Invesco
Limited and is authorised and regulated by the Financial Services Authority
Invesco Perpetual is a business name of Invesco Asset Management Limited
Ordinary Shares - Listing Category: Premium - Equity Closed-ended Investment
Funds
Subscription Shares - Listing Category: Standard - Shares
Latest directors dealings
- 1 hour ago Touchstone Exploration Inc NPV (DI)
- 1 hour ago Diaceutics
- 1 hour ago Taseko Mines Limited NPV (DI)
- 1 hour ago Taseko Mines Limited NPV (DI)
- 1 hour ago Arecor Therapeutics