Annual Financial Report

RNS Number : 7492N

Aberdeen All Asia Inv Tst PLC

16 June 2010

 



ABERDEEN ALL ASIA INVESTMENT TRUST PLC

ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 MARCH 2010

1.       CHAIRMAN'S STATEMENT

Highlights

-     Net Asset Value  + 65.9%

-     Share Price  + 72.7%

Your Company's performance during the year under review was very satisfactory. Markets rose strongly, and your Company's portfolio also substantially outperformed its benchmark.

Your Company's holdings have proven themselves resilient in riding out the global economic crisis. The Manager's philosophy of investing in well managed and financially sound businesses with long term growth prospects has enabled the Company to benefit from the economic recovery. Looking ahead, this philosophy should continue to stand the Company in good stead for the long term, whether or not the global economic crisis is over. Prospects for Asia, in particular, remain brighter than for the West. Much of the region is still in an early stage of economic development, thus growth rates are naturally higher. In addition, following the financial crisis of the late 1990s, balance sheets were strengthened such that countries, companies and individuals entered the recent crisis in relatively good shape. Most of all, the region's lessening dependence on Western economies, the process known as decoupling, continues, as evidenced by the rapid increase in intra-regional trade in recent months.

Performance

Asian equities enjoyed a near-uninterrupted rally during the past year. The turnaround was due to the unprecedented fiscal and monetary response to the crisis that allowed the global economy - led by Asia - first to stabilise, and then to strengthen. Corporate earnings improved, though thus far much of this has been due to aggressive cost controls and inventory restocking.

Against this backdrop, the Company's net asset value rose by 65.9% in sterling terms over the year ended 31 March 2010, impressively outpacing the benchmark MSCI AC Asia Pacific (including Japan) Index, which gained 49.5%. The share price rose 72.7% to 283.3p, with the discount narrowing from 13.8% to 10.5%. The fund's gearing of 9.8% at the beginning of the period also boosted performance. By the period end, actual gearing had fallen to 3.4% as some £2.5million was repaid and markets had risen.

Detailed performance of the portfolio is more fully described in the Manager's Review.

Revenue and Dividend

The Board is proposing to shareholders a final dividend per share of 1.50p (2009 - 2.40p) payable on 30 July 2010 to shareholders on the register as at close of business on 2 July 2010; the ex-dividend date will be 30 June 2010. This will be the second dividend paid to shareholders since the establishment of the Company in its present form in 1998. Revenue return per share fell from 3.50p to 2.25p, because cash flow pressures last year caused some companies to cut dividends but, nevertheless, the income in the portfolio has again produced revenue earnings in excess of the level that can be retained under the rules for Investment Trusts.

Investment Manager

The Board has undertaken a detailed review of the performance of the Manager, and visited its offices in Singapore and Tokyo to meet with the managers and investee companies. Given the performance and strengths of the Manager's investment team in the region, the Board believes that the continuing appointment of Aberdeen Asset Management Asia as Manager, on the present terms, is in the interests of shareholders as a whole. This strong performance in the year to 31 March 2010, with the Net Asset Value of the Company outperforming the Index by over 16%, means that the Manager has earned a performance fee of £853,000. This is calculated as 15% of the portfolio's outperformance of the benchmark during the period, which is about 1.75% of the value of the portfolio.

Share Capital

During the year under review, in accordance with its policy, the Company bought in for cancellation 240,000 Ordinary shares at a weighted-average discount of 12.0%, which leaves 15,492,367 Ordinary shares, with voting rights, in issue as at 31 March 2010. Such buy backs provide necessary liquidity to the market during difficult trading periods and enhance the net asset value for continuing shareholders.

Outlook

Despite the strong growth in Asia, and some improvement in the USA, the global economic recovery remains fragile. The very substantial overhang of government debt, especially in Europe, suggests that recovery may be slow and financial stability could still be threatened if this is not well managed. How these problems will evolve, and thus affect markets, is hard to forecast, but the risks remain significant.

However, most Asian countries are less exposed to excessive government borrowing, which may allow regional economies to continue their strong recovery. Policymakers still have a daunting task to manage inflationary pressures, which have begun to build, while normalising interest rates and gradually withdrawing the stimulus measures which helped deal with the economic crisis. The exception is Japan, where structural and fiscal reforms are still needed to combat persistent deflation and swelling public debt. That said, Japan is a major economy which is well-positioned in the Far East, and the Manager has invested in a number of competitive Japanese companies with sound prospects for the longer term.

On the whole, Asian economies entered the crisis in a much better shape than they entered the Asian financial crisis of the late 1990s and have therefore so far coped with challenges better than their counterparts in the West. The prospects of sustained growth in Asia and the many attractive investment opportunities in companies that are well run and financially strong, mean that your Board is confident that the Company will continue to perform well over the longer term.

Neil Gaskell

Chairman

16 June 2010

2.       MANAGER'S REVIEW

Overview

Asian stockmarkets enjoyed a strong run during the year under review, outpacing their developed counterparts in Europe and the US. Several factors supported the rally. At first, sentiment was buoyed by hopes that concerted central bank action and extraordinary stimulus plans would accelerate the global economic recovery. An influx of liquidity followed, as investors spurned low-yielding cash for higher-yielding equities and corporate bonds amid easing risk aversion. Asia and other emerging markets were favoured because of their brighter growth prospects. However at the turn of the year, fears over China's monetary tightening, along with proposed banking reforms in the US and worries about sovereign debt contagion in Europe briefly unsettled markets.

Economic conditions improved across the region, with solid fourth-quarter GDP data underscoring Asia's pole position in the race to recovery. China's double-digit rate of expansion in 2009 was partly fuelled by a massive injection of government funds into the economy, while resilient private consumption in India and Indonesia shielded their economies from the slowdown in the West. Malaysia, Taiwan and Singapore benefited from a revival in exports and mainland China's growing appetite. Japan rebounded from its slump in the fourth quarter, despite stubborn deflation.

The upshot of economic resurgence is that the easy monetary policies of regional central banks have stoked consumer price pressures, particularly in real estate markets. Nowhere is this more evident than in China, where the central bank is curbing its lending binge and tightening restrictions to prevent overheating. Signs of froth in asset prices also prompted Hong Kong and Singapore to introduce anti-speculation policies to cool the property sector. Elsewhere, Australia, Malaysia and India raised interest rates, although Indonesia and South Korea left borrowing costs unchanged to support their recoveries. Japan kept interest rates near zero and maintained its very loose fiscal policy. While a marked improvement in exports and government pump-priming have helped to start a tentative recovery, the Bank of Japan may have to loosen monetary policy further if domestic demand stagnates and deflation persists.

Portfolio review

Over the 12 months ended 31 March 2010, the portfolio's net asset value per share rose by 65.90% in sterling terms compared with a gain in the benchmark, the MSCI AC Asia Pacific (including Japan) Index, of 49.50%.

A significant portion of the outperformance was generated by the underweight to Japan, which lagged the broader region. We have, and will continue to maintain an underweight position there, owing to ongoing reservations about structural economic weaknesses and inadequate corporate governance. Where we do have exposure, we prefer to focus on blue-chip multinationals that have proven themselves in the highly-competitive global marketplace, and selected domestic firms that have demonstrated a commitment to generating good returns on capital. Among these are Omron and Canon, which were key contributors, from a stock selection perspective, to relative return. Omron surpassed the broader market on the back of improved earnings, helped by effective cost controls and the weakening yen towards the period-end. We took the opportunity to divest the holding after its run-up, in view of better opportunities elsewhere. Exporters, including Canon and robotics firm Fanuc, also served the portfolio well, as their share prices rose on the back of good results and positive outlooks.

Singapore, where the portfolio is heavily overweight, also contributed to relative performance. The city-state benefited from a raft of mostly upbeat global macroeconomic news in the second half of the review period, and hopes that the two integrated resorts that started operations in the first quarter of 2010 would be a tourism draw. Fresh optimism over the bounce in domestic economic activity for the three months to March further lifted sentiment. Preliminary figures showed growth rising by more than 32% quarter-on-quarter annualised, aided by improving demand from the US and expanding intra-regional trade.

Our Singaporean property and financial holdings, such as City Developments (CDL), Oversea-Chinese Banking Corporation (OCBC) and United Overseas Bank (UOB) benefited from the buoyant local property market. Their recently-reported corporate results attested to their financial soundness: robust property sales bolstered CDL's full-year earnings; UOB's fourth-quarter results gained from writebacks, an indication that the decline in asset quality is over, while a recovery in insurance and trading income underpinned OCBC's annual performance. In addition, OCBC embarked on selective expansion, the most high profile deal being its acquisition of ING Asia's private banking arm. The purchase reflected its growing clout as a regional financial services company, propelling it to one of the region's top ten private banks while tripling its assets under management. On the flip side, SingTel was a drag on performance because the defensive telecom sector lagged the broader market. Despite its improved profitability, the telco's share price was also hindered by domestic competition, while its associate Bharti Airtel faced a price war in India.

Elsewhere, the overweight to India, which outpaced most of the region except Indonesia, also had a positive impact on the portfolio. Indian equities more than doubled over the review period, boosted by a wave of foreign portfolio inflows, robust earnings growth and the country's resilience to the global downturn. The re-elected Congress Party's pro-growth budget provided the rally with further impetus. At the stock level, Hero Honda and Infosys Technologies added the most to relative return. Motorcycle manufacturer Hero Honda's excellent financial results were due to strong rural demand and cost containment, while Infosys' better-than-expected profits were attributed to a recovery in IT spending. The software company also guided for double-digit growth for the upcoming financial year. Another key outperformer was GlaxoSmithKline, the Indian-listed subsidiary of the world's second-largest pharmaceutical company, which saw solid quarterly results on broad-based growth across its businesses. The company, which has a wide distribution network, should gain from new launches from its parent, along with its push into the rural market.

In Hong Kong, upbeat second-half 2009 results and hopes of a broader recovery in the technology sector buoyed semiconductor equipment manufacturer ASM Pacific Technology's share price. Jardine Strategic was boosted by its Indonesian subsidiary Astra International, which saw improved demand for cars and mining equipment. The conglomerate's share price was further bolstered by upbeat full-year results, along with its offer to buy back its own shares.

Other notable outperformers included Thailand's Siam Cement and UK-listed Standard Chartered Bank. The Thai cement-maker outperformed as its full-year earnings rebounded on the back of a recovery in volumes and margins, while StanChart saw a robust start to trading in 2010, after announcing record income and profits for the financial year ended 2009. The lender appears to have emerged fairly unscathed from the credit crisis and gained market share at the expense of trouble peers. That its exposure to Dubai's debt problems was less than anticipated also boosted sentiment towards the stock. More importantly, the company remains well capitalised and is poised to benefit from the economic recovery. ASM Pacific's full-year results exceeded our expectations, lifted by record sales and profit growth as demand revived.

Key portfolio transactions during the period included the introduction of three stocks and the sale of three. In Australia, we initiated a position in miner BHP Billiton, a low-cost producer with a solid balance sheet and high-quality assets, via its London-listed shares which trade at a decent discount to the Australian listing, and thus boast a higher dividend yield. We also bought Woolworths, a leading Australian supermarket operator that has a successful track record and plans to continue transforming the industry. In addition, we introduced Unicharm, one of Japan's leading personal products company with a growing Asian business.

Conversely, we sold Singapore-listed Fraser & Neave and Japan's Bank of Kyoto, in view of better investment opportunities elsewhere. We also divested Hong Kong Exchanges and Clearing on valuation grounds following the rapid rise in its share price.

Outlook

Asian equities have staged an extraordinary turnaround that was unimaginable a year ago. To make further headway would appear difficult, given the outstanding performance during the review period. And although the region has emerged from the global slump ahead of those in the West, it is unclear if the government-engineered recoveries can be sustained once the inventory cycle has run its course and fiscal stimulus is removed.

Another uncertainty is the possible shift in China's exchange rate policy, which could lead to a revaluation of the renminbi against the US dollar. If this were to trigger an Asia-wide currency appreciation, it would pose new challenges, as well as opportunities, for the region.

At the time of writing, the possibility of a sovereign debt crisis among Europe's more indebted states is another source of concern. Greece has been in the headlines, but Portugal, Italy and Spain - the more leveraged southern Continental nations - are also vulnerable. If little action is taken to improve their financial wherewithal, rising debts may stifle the still fragile recovery, thereby unsettling financial markets.

All these uncertainties are likely to intensify market volatility in the coming months, but the long-term outlook for Asia remains attractive. Private and public finances are greatly improved and debt levels are generally low. Rising asset values, consumer confidence, and a gradual improvement in employment conditions have also supported private domestic consumption, which will serve as the foundation for economic stability, while the return of capacity utilisation to more normal levels is expected to encourage investment. And although valuations look less compelling following the sharp rally, they are still reasonable, with improving corporate earnings supporting the gains. We have confidence in our holdings, which are innately conservative. We will remain focused on picking and holding quality stocks that will deliver consistent results over the long term.

Aberdeen Asset Management Asia Limited

Manager

16 June 2010

3.       BUSINESS REVIEW

A review of the Company's activities is given in the Chairman's Statement and the Manager's Review.

Investment Objective

The investment objective of the Company is to generate capital growth from a concentrated portfolio of companies domiciled, operating or generating revenue in the Asia-Pacific region, including Japan.

Owing to the concentration of investments, the performance of the Company's investment portfolio may deviate significantly from its benchmark from time to time.

Benchmark

The Board reviews performance against all relevant factors, including the MSCI AC Asia Pacific (including Japan) Index (in Sterling terms) as well as peer group comparisons. It is likely that performance will diverge, possibly quite dramatically in either direction, from this or any other index.

The Manager undertakes substantial due diligence before initiating any investment, including company visits, to assure the quality of any prospective investment. The Manager seeks to minimise risk by using in-depth research and does not see divergence from a benchmark as risk.

Investment Policy

The Company's assets may be invested in a selected portfolio of securities in quoted companies spread across a range of industries and economies in the investment region including Australia, China, Hong Kong, India, Japan, Korea, Malaysia, The Philippines, Singapore, Taiwan and Thailand together with such other countries in Asia as the Directors may from time to time determine (collectively, the "Investment Region"). This includes securities in companies quoted on the London Stock Exchange, provided those companies also have a listing on a recognised stock exchange within the Investment Region.

The Company's portfolio comprises securities substantially in the form of equities or equity-related securities such as convertible securities and warrants.

The investment portfolio comprises companies of any market capitalisation, regardless of sector or country weightings, which show potential for outstanding growth. Due to the size of the Japanese economy, the Board would normally expect there to be a significant investment in Japan.

Investments may also be made through collective investment schemes and in companies traded on stock markets outside the Investment Region, provided that over 75 per cent. of their consolidated revenue is earned from trading in the Investment Region or they hold more than 75 per cent. of their consolidated net assets in the Investment Region.

Capital Structure

At 31 March 2010 the Company had a capital structure comprising voting capital of 15,492,367 Ordinary shares of 10p after the buyback and cancellation during the year of 240,000 Ordinary shares.

The Company also had bank borrowings, at 31 March 2010, of US$2,750,000, equivalent to approximately £1,813,000, and JPY68,800,000, equivalent to approximately £485,000, which rank for repayment ahead of any capital return to shareholders.

Total Assets and Net Asset Value

The Company had total assets of £51.3m and a net asset value of 316.34 pence per Ordinary share at 31 March 2010.

Duration

The Company does not have a fixed life. However, under the Articles of Association, if in the 90 days preceding the Company's financial year-end (31 March) the Ordinary shares have been trading, on average, at a discount in excess of 12% to the underlying net asset value over the same period, notice will be given of a resolution to be proposed at the following Annual General Meeting to approve the continuation of the Company. In the 90 days to 31 March 2010, the Ordinary shares traded at an average discount of 11.7% to the underlying net asset value, therefore no resolution will be put to the Company's shareholders at the forthcoming AGM.

Risk

Investment in Asia-Pacific equities, or those of companies that derive significant revenue or profit from the Asia-Pacific region, involves a greater degree of risk than that usually associated with investment in the securities of major securities markets. The securities that the Company owns may be considered speculative because of this higher degree of risk.

The Board regularly reviews major strategic risks and sets out delegated controls designed to manage those risks. 

Aside from the risks associated with investment in Asia, the key risks related to investment strategy, including inappropriate asset allocation or gearing, are managed through a defined investment policy, specific guidelines and restrictions and by the process of oversight at each Board meeting.

Operational disruption, accounting and legal risks are also covered at least annually and regulatory compliance is reviewed at each Board meeting.

The major risks associated with the Company are:

·    Resource risk: like most other investment trusts, the Company has no employees. The Company therefore relies on services provided by third parties, including, in particular, the Manager, to whom responsibility for the management of the Company's portfolio has been delegated under an investment management agreement (the "Agreement"). The terms of the Agreement cover the necessary duties and conditions expected of the Manager. The Board reviews the performance of the Manager on a regular basis, and their compliance with the Agreement formally on an annual basis.

·    Investment and market risk: the Board continually monitors the investment policy of the Company, taking account of stockmarket factors, and reviews the Company's performance compared to its benchmark index. Further details on other risks relating to the Company's investment activities, including market price, interest rate, liquidity and foreign currency risks, are disclosed in Note 18 to the Financial Statements.

·    Gearing risk: the Company currently uses gearing in the form of bank loans of US$2,750,000 (equivalent to approximately £1,813,000) and JPY68,800,000 (equivalent to approximately £485,000) under its loan facility of £7,000,000.

·    Regulatory risk: the Company operates in a complex regulatory environment and faces a number of regulatory risks. Serious breaches of applicable regulations could lead to a number of detrimental outcomes and reputational damage. The Audit Committee monitors compliance with regulations by reviewing internal control reports from the Manager.

The particular risks of investment in Asia include:

·    greater risk of expropriation, confiscation, nationalisation and social, political and economic instability; the small size of the markets for securities of emerging markets issuers and associated low volumes of trading give rise to price volatility and a lack of liquidity;

·    certain national policies which may restrict the investment opportunities available in respect of a fund, including restrictions on investing in issuers or industries deemed sensitive to national interests; changes in taxation laws and/or rates which may affect the value of the Company's investments;

·    the absence in some markets of developed legal structures governing private or foreign investment and private property leading to supervision and regulation; and changes in government which may have an adverse effect on economic reform. Companies in the Asia-Pacific region are not, in all cases, subject to the equivalent accounting, auditing and financial standards of those in the United Kingdom; and

·    currency fluctuations which may affect the value of the Company's investments and the income derived therefrom.

The Company currently utilises gearing in the form of bank borrowings (see 'Capital Structure' above and Note 11 to the Financial Statements). Gearing magnifies the effect of market movements on the net asset value of the Company.

4. STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report and Accounts in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law, they have elected to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice).

Under company law, the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

·    select suitable accounting policies and then apply them consistently;

·    make judgments and estimates that are reasonable and prudent;

·    state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

·    prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company, and to prevent and detect fraud and other irregularities.

Under applicable law and regulations, the Directors are also responsible for preparing a Directors' Report, Directors' Remuneration Report and Corporate Governance Statement that complies with that law and those regulations.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Directors confirm to the best of their knowledge, that:

·    the Financial Statements have been prepared in accordance with UK Accounting Standards, give a true and fair view of the assets, liabilities, financial position and return; and that

·    the Directors' Report includes a fair review of the development and performance of the business and the position of the Company together with a description of the principal risks and uncertainties that the Company faces.

Signed on behalf of the Board of Aberdeen All Asia Investment Trust PLC

Neil Gaskell

Chairman

16 June 2010

5.    RESULTS

Financial Highlights

	31 March 2010	31 March 2009	% change
Total assets	£51,307,000	£35,133,000	+46.0
Total equity shareholders' funds (net assets)	£49,009,000	£30,311,000	+61.7
Share price (mid market)	283.25p	166.00p	+70.6
Net asset value per share	316.34p	192.67p	+64.2
Discount to net asset value	10.5%	13.8%
MSCI AC Asia Pacific (including Japan) Index (in Sterling terms){B}	82.48	56.46	+46.1
Actual gearing{A}	3.4%	9.8%
Potential gearing{A}	4.6%	15.9%
Operating costs
Total expense ratio{A}	1.45%	1.48%
Earnings
Total return per share	125.36p	(56.07)p
Revenue return per share	2.25p	3.50p
Proposed final dividend per share	0.00p	0.00p
Revenue reserves (prior to payment of proposed final dividend)	£523,000	£548,000
{A} Calculated excluding performance fee and other expenses charged to capital.
{B} Index figures stated on a capital only basis.

Performance (total return)

	1 year % return	3 year % return	5 year % return
Share price	+72.7%	+33.0%	+82.8%
Net asset value	+65.9%	+33.3%	+89.7%
MSCI AC Asia Pacific (including Japan) Index	+49.5%	+20.5%	+75.1%
(in Sterling terms)

Dividend

	Rate	xd date	Record date	Payment date
Proposed final dividend 2010	1.50p	30 June 2010	2 July 2010	30 July 2010
Final dividend 2009	2.40p	1 July 2009	3 July 2009	31 July 2009

INCOME STATEMENT

		Year ended 31 March 2010			Year ended 31 March 2009
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Gains/(losses) on investments	9	-	20,014	20,014	-	(8,298)	(8,298)
Income	2	1,061	-	1,061	1,242	-	1,242
Exchange gains/(losses)	16	-	217	217	-	(1,253)	(1,253)
Investment management fee	3	(322)	-	(322)	(268)	-	(268)
Performance fee	3	-	(853)	(853)	-	-	-
VAT recoverable on investment management fees		-	-	-	17	-	17
Administrative expenses	4	(269)	(38)	(307)	(252)	(23)	(275)
		_______	_______	_______	_______	_______	_______
Net return before finance costs and taxation		470	19,340	19,810	739	(9,574)	(8,835)
Finance costs	5	(66)	-	(66)	(125)	-	(125)
		_______	_______	_______	_______	_______	_______
Net return on ordinary activities before taxation		404	19,340	19,744	614	(9,574)	(8,960)
Taxation on ordinary activities	6	(51)	-	(51)	(51)	-	(51)
		_______	_______	_______	_______	_______	_______
Net return on ordinary activities after taxation		353	19,340	19,693	563	(9,574)	(9,011)
		_______	_______	_______	_______	_______	_______
Return per Ordinary share (pence):	8	2.25	123.11	125.36	3.50	(59.57)	(56.07)
		_______	_______	_______	_______	_______	_______
The total column of this statement represents the profit and loss account of the Company.
No Statement of Total Recognised Gains and Losses has been prepared as all gains and losses have been reflected in the Income Statement.
All revenue and capital items in the above statement derive from continuing operations.
The accompanying notes are an integral part of the financial statements.

BALANCE SHEET

		As at	As at
		31 March 2010	31 March 2009
	Notes	£'000	£'000
Fixed assets
Investments designated at fair value through profit or loss	9	51,302	33,375
		___________	___________
Current assets
Debtors	10	360	209
Cash at bank and in hand		625	1,842
		___________	___________
		985	2,051
		___________	___________
Creditors: amounts falling due within one year	11
Foreign currency bank loans		(2,298)	(4,822)
Other creditors		(980)	(293)
		___________	___________
		(3,278)	(5,115)
		___________	___________
Net current liabilities		(2,293)	(3,064)
		___________	___________
Net assets		49,009	30,311
		___________	___________
Share capital and reserves
Called-up share capital	12	1,549	1,573
Special reserve		398	1,015
Capital redemption reserve		2,183	2,159
Capital reserve	13	44,356	25,016
Revenue reserve		523	548
		___________	___________
Equity shareholders' funds		49,009	30,311
		___________	___________
Net asset value per Ordinary share (pence)	14	316.34	192.67
		___________	___________

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

For the year ended 31 March 2010
			Capital
	Share	Special	redemption	Capital	Revenue
	capital	reserve	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 March 2009	1,573	1,015	2,159	25,016	548	30,311
Purchase of own shares for cancellation	(24)	(617)	24	-	-	(617)
Return on ordinary activities after taxation	-	-	-	19,340	353	19,693
Dividend paid (note 7)	-	-	-	-	(378)	(378)
	______	_____	_______	______	______	______
Balance at  31 March 2010	1,549	398	2,183	44,356	523	49,009
	______	_____	_______	______	______	______
For the year ended 31 March 2009
			Capital
	Share	Special	redemption	Capital	Revenue
	capital	reserve	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 March 2008	1,627	2,022	2,105	34,590	(15)	40,329
Purchase of own shares for cancellation	(54)	(1,007)	54	-	-	(1,007)
Return on ordinary activities after taxation	-	-	-	(9,574)	563	(9,011)
	______	_____	_______	______	______	______
Balance at  31 March 2009	1,573	1,015	2,159	25,016	548	30,311
	______	_____	_______	______	______	______

CASHFLOW STATEMENT

		Year ended		Year ended
		31 March 2010		31 March 2009
	Notes	£'000	£'000	£'000	£'000
Net cash inflow from operating activities	15		345		714
Servicing of finance
Bank and loan interest paid			(83)		(106)
Financial investment
Purchases of investments		(9,378)		(4,879)
Sales of investments		11,208		7,034
Expenses allocated to capital		(7)		(12)
		______		______
Net cash inflow from financial investment			1,823		2,143
Equity dividends paid			(378)		-
			______		______
Net cash inflow before financing			1,707		2,751
Financing
Purchase of Ordinary share capital		(617)		(1,007)
Loan (repaid)/drawn down		(2,311)		572
		______		______
Net cash outflow from financing			(2,928)		(435)
			______		______
(Decrease)/increase in cash	16		(1,221)		2,316
			______		______
Reconciliation of net cash flow to movements in net debt
(Decrease)/increase in cash as above			(1,221)		2,316
Decrease/(increase) in borrowings			2,311		(572)
			______		______
Change in net debt resulting from cash flows			1,090		1,744
Exchange movements			217		(1,253)
			______		______
Movement in net debt in the year			1,307		491
Opening net debt			(2,980)		(3,471)
			______		______
Closing net debt	16		(1,673)		(2,980)
			______		______

NOTES :

1.	Accounting policies
	(a)	Basis of accounting and going concern
		The financial statements have been prepared under the historical cost convention, except for the measurement at fair value of investments and in accordance with the applicable UK Accounting Standards and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' (issued in January 2009). The SORP has no effect on the financial statements of the Company, other than the requirement to separately disclose capital reserves that relate to the revaluation of investments held at the reporting date. These are disclosed in note 13. This new requirement replaces the previous requirement to disclose the value of the capital reserve that was unrealised. They have also been prepared on the assumption that approval as an investment trust will continue to be granted. The financial statements have been prepared on a going concern basis. The Directors believe this is appropriate for the reasons outlined in the Directors' Report on page 24.
	(b)	Valuation of investments
		The Company's business is investing in financial assets with a view to profiting from their total return in the form of income and capital growth. This portfolio of financial assets is managed and its performance evaluated on a fair value basis, in accordance with a documented investment strategy, and information about the portfolio is provided internally on that basis to the Company's Board of Directors. Accordingly, upon initial recognition the Company designates the investments 'at fair value through profit or loss'. Fair value is taken to be the investments cost at the trade date (excluding expenses incidental to the acquisition which are written off in the Income Statement, and allocated to 'capital' at the time of acquisition).
		Subsequent to initial recognition, investments continue to be designated at fair value through profit or loss, which is deemed to be bid prices, where the bid price is available, or otherwise at fair value based on published price quotations.
	(c)	Income
		Dividends (other than special dividends), including taxes deducted at source, are included in revenue by reference to the date on which the investment is quoted ex-dividend. Special dividends are reviewed on a case-by-case basis and may be credited to capital, if circumstances dictate. Dividends receivable on equity shares where no ex-dividend date is quoted are brought into account when the Company's right to receive payment is established. Fixed returns on non-equity shares are recognised on a time apportioned basis so as to reflect the effective interest rate on shares. Other returns on non-equity shares are recognised when the right to return is established. Where the Company has elected to receive its dividends in the form of additional shares rather than cash, the amount of the cash dividend is recognised as income. Any excess in the value of the shares received over the amount of the cash dividend is recognised in capital reserves. Interest receivable on bank balances is dealt with on an accruals basis.
		Where applicable the dividend income is disclosed net of irrecoverable Malaysian and Singaporean taxes deducted at source. UK dividend income is recorded net of tax credits.
	(d)	Expenses
		All expenses are accounted for on an accruals basis. Expenses are allocated to revenue in the Income Statement except as follows:
		-       expenses which are incidental to the acquisition or disposal of an investment are allocated to capital in the Income Statement and separately identified and disclosed in note 9; and
		-       expenses are allocated and borne by capital where a connection with the maintenance or enhancement of the value of the investments can be demonstrated. In this respect performance fees are charged 100% to the capital reserve.
	(e)	Taxation
		The charge for taxation is based on the revenue return for the financial period.
		Deferred taxation
		Deferred taxation is provided on all timing differences, that have originated but not reversed at the Balance Sheet date, where transactions or events that result in an obligation to pay more or a right to pay less tax in future have occurred at the Balance Sheet date, measured on an undiscounted basis and based on enacted tax rates. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the underlying timing differences can be deducted. Timing differences are differences arising between the Company's taxable profits and its results as stated in the accounts which are capable of reversal in one or more subsequent periods. Due to the Company's status as an investment trust company, and the intention to continue to meet the conditions required to obtain approval for the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments.
	(f)	Capital reserve
		Gains and losses on realisation of investments and changes in fair values of investments which are readily convertible to cash are transferred to the capital reserve.
	(g)	Foreign currencies
		Transactions involving foreign currencies are converted at the rate ruling at the date of the transaction.
		Foreign currency asset and liability balances are translated to Sterling is at the middle rate of exchange at the year end. Differences arising from translation are treated as capital gain or loss to capital or revenue within the Income Statement depending upon the nature of the gain or loss.
	(h)	Dividends payable
		Final dividends are recognised in the financial statements in the period in which they are paid.
	(i)	Borrowings
		All secured borrowings are initially recognised at cost, being the fair value of the consideration received, less issue costs where applicable, after initial recognition, all interest bearing borrowings are subsequently measured at amortised cost.

		2010	2009
2.	Income	£'000	£'000
	Income from investments designated at fair value through profit and loss
	UK dividend income	56	59
	Overseas dividends	911	1,175
	Stock dividends	90	1
		______	______
		1,057	1,235
		______	______
	Other income
	Underwriting commission	4	2
	Deposit interest	-	5
		______	______
		4	7
		______	______
	Total income	1,061	1,242
		______	______

		2010			2009
		Revenue	Capital	Total	Revenue	Capital	Total
3.	Investment management fee	£'000	£'000	£'000	£'000	£'000	£'000
	Investment management fee	322	-	322	268	-	268
	Performance fee	-	853	853	-	-	-
	Total	322	853	1,175	268	-	268
		______	______	______	______	______	______
	During the year the management fee was payable monthly in arrears and was based on an annual amount of 0.75% of total assets less current liabilities of the Company valued monthly. The agreement is terminable on six months' notice. The balance due to AAM Asia at the year end was £62,000 (2009 - £38,000). When held, the value of the Company's investment in Aberdeen Global - India Opportunities Fund was excluded from the calculation of the investment management fee.
	The total value of commonly managed funds, on a bid basis (basis on which management fee is calculated), at the year end was £nil (2009 - £3,782,000).
	AAM Asia is entitled to a performance related fee of up to 15% of the portfolio's outperformance of the MSCI AC Asia Pacific (including Japan) Index (in Sterling terms) for the year in question.
	In the event that the Company outperforms this benchmark but the year end net asset value per Ordinary share is less than at the previous year end, the performance fee is capped at 0.25% of year end net asset value. The performance fee is only payable where the final net asset value on which the fee is calculated exceeds the net asset value (adjusted by any change in the benchmark index over the period) on which any performance fee was paid in the previous three years. No performance fee has been paid in the previous three years but the final net asset value exceeds the net asset value in each of the previous three years adjusted for the increase in the benchmark index.
	There was a performance fee due to AAM Asia for the year ended 31 March 2010 in the sum of £853,000 (2009 - £nil).

		2010			2009
		Revenue	Capital	Total	Revenue	Capital	Total
4.	Administrative expenses	£'000	£'000	£'000	£'000	£'000	£'000
	Investor relations/Marketing initiative	29	-	29	33	-	33
	Directors' fees	66	-	66	73	-	73
	Safe custody fees	19	7	26	13	12	25
	Transaction costs on investment purchases	-	31	31	-	11	11
	Auditors' remuneration:
	- audit of the financial statements{A}	19	-	19	18	-	18
	- other	1	-	1	2	-	2
	Other	135	-	135	113	-	113
		______	______	______	______	______	______
		269	38	307	252	23	275
		______	______	______	______	______	______
	{A} Includes work carried out on the Directors' Remuneration Report, Corporate Governance Statement and Directors' Report.
	The Company has an agreement with Aberdeen Asset Managers Limited ("AAM") for the provision of marketing services in relation to the Company's participation in the Aberdeen Investment Trust Share Plan and ISA. The total fees paid and payable under the agreement were £29,000 (2009 - £33,000) and the accrual to AAM at the year end was £nil (2009 - £nil).
	No pension contributions were made in respect of any of the Directors.
	The Company does not have any employees.

			2010			2009
		Revenue	Capital	Total	Revenue	Capital	Total
5.	Finance costs	£'000	£'000	£'000	£'000	£'000	£'000
	Interest on bank loans and overdrafts	66	-	66	125	-	125
		______	______	______	______	______	______

			2010			2009
			Revenue	Capital	Total	Revenue	Capital	Total
6.	Taxation on ordinary activities		£'000	£'000	£'000	£'000	£'000	£'000
	(a)	Analysis of charge for the year
		Corporation tax	-	-	-	49	-	49
		Irrecoverable overseas taxation	51	-	51	51	-	51
			______	______	______	______	______	______
			51	-	51	100	-	100
		Relief for overseas taxation	-	-	-	(49)	-	(49)
			______	______	______	______	______	______
		Current taxation	51	-	51	51	-	51
			______	______	______	______	______	______
	(b)	Factors affecting current tax charge for the year
		The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The differences can be explained below.
							2010	2009
							£'000	£'000
		Net return on ordinary activities before taxation					19,744	(8,960)
							______	______
		Net return on ordinary activities multiplied by standard rate of corporation tax in the UK of 28% (2009 - 28%)					5,528	(2,509)
		Effects of:
		UK dividend income					(16)	(17)
		(Gains)/losses on investments not taxable					(5,604)	2,324
		Currency (gains)/losses not taxable					(61)	351
		Tax on capital expenses					250	6
		Irrecoverable overseas withholding tax suffered					51	51
		Relief for overseas taxation					-	(49)
		Timing differences on taxation of income					-	14
		Excess management expenses not utilised/(utilised) in period					77	(120)
		Non-taxable overseas dividends					(176)	-
		Expenses not deductible for tax purposes					2	-
							______	______
		Current tax charge for the year					51	51
							______	______
	(c)	Provision for deferred taxation
		No provision for deferred taxation has been made due to the fact that the Company has approximately £2,330,000 (2009 - £1,135,000) of excess management expenses. This is because the Company is not expected to generate taxable income in the future in excess of deductible expenses of that future period, and accordingly, it is unlikely that the Company will be able to reduce future tax liabilities through the use of existing surplus expenses.

		2010	2009
7.	Dividends	£'000	£'000
	Amounts recognised as distributions to equity holding in the year:
	Final dividend 2009 - 2.40p (2008 - nil)	378	-
		______	______
	In order to comply with the requirements of Section 1159 CTA 2010 and with company law, the Company is required to make a final dividend distribution.
	The proposed final dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability.
	The table below sets out the total dividends proposed in respect of the financial year, which is the basis on which the requirements of Section 1159 are considered. The revenue available for distribution by way of dividend for the year is £523,000 (2009 - £548,000). Only the revenue reserve can be used for the distribution of dividends.
		2010	2009
		£'000	£'000
	Proposed final dividend for 2010 - 1.5p per Ordinary share (2009 - 2.40p)	232	378
		______	______
	The proposed final dividend will be paid, subject to approval at the Annual General Meeting, on 27 July 2010 to shareholders on the register at the close of business on 2 July 2010.

		2010	2010	2009	2009
8.	Return per Ordinary share	p	£'000	p	£'000
	Returns per share are based on the following figures:
	Revenue return	2.25	353	3.50	563
	Capital return	123.11	19,340	(59.57)	(9,574)
		______	______	______	______
	Total return	125.36	19,693	(56.07)	(9,011)
		______	______	______	______
	Weighted average Ordinary shares in issue		15,708,956		16,070,688
			________		________

			Listed	Listed
			overseas	in UK	Total
9.	Investments designated at fair value through profit or loss		£'000	£'000	£'000
	Opening book cost		36,742	1,922	38,664
	Opening investment holding losses		(4,903)	(386)	(5,289)
			______	______	______
	Opening fair value		31,839	1,536	33,375
	Movements in the year:
	Purchases at cost (excluding transaction costs)		8,507	765	9,272
	Sales	- proceeds (net of transaction costs)	(11,121)	(238)	(11,359)
		- gains on sales	1,283	27	1,310
	Increase in investment holding gains		16,946	1,758	18,704
			______	______	______
	Closing fair value		47,454	3,848	51,302
			______	______	______
			Listed	Listed
			overseas	in UK	Total
			£'000	£'000	£'000
	Closing book cost		35,411	2,476	37,887
	Closing investment holding gains		12,043	1,372	13,415
			______	______	______
			47,454	3,848	51,302
			______	______	______
				2010	2009
				£'000	£'000
	Investments listed on a recognised investment exchange			51,302	33,375
				______	______
				2010	2009
	Gains/(losses) on investments			£'000	£'000
	Gains/(losses) on sales			1,310	(1,476)
	Increase in investment holding gains/(losses)			18,704	(6,822)
				______	______
				20,014	(8,298)
				______	______
	Transaction costs
	During the year expenses were incurred in acquiring or disposing of investments designated as fair value through profit or loss. Expenses incurred in acquiring investments have been expensed through capital and are included within administration expenses in the Income Statement, whilst expenses incurred in disposing of investments have been expensed through capital and are included within gains on investments in the Income Statement. The total costs were as follows:
				2010	2009
				£'000	£'000
	Purchases			31	11
	Sales			17	16
				______	______
				48	27
				______	______

		2010	2009
10.	Debtors: amounts falling due within one year	£'000	£'000
	Amounts due from brokers	155	4
	Prepayments and accrued income	200	203
	Other loans and receivables	5	2
		______	______
		360	209
		______	______

			2010	2009
11.	Creditors: amounts falling due within one year		£'000	£'000
	(a)	Foreign currency bank loans	2,298	4,822
			______	______
		In January 2010, the Company entered into a one year £7,000,000 multi-currency revolving credit facility with Standard Chartered Bank. At the year end, US$2,750,000 (2009 - US$5,150,000) equivalent to £1,813,000 (2009 - £3,593,000) had been drawn down from Standard Chartered Bank at an all-in interest rate of 1.35% (2009 - 2.73%) which matured on 7 April 2010. At the year end, JPY68,800,000 (2009 - JPY174,000,000) equivalent to £485,000 (2009 - £1,229,000) had been drawn down from Standard Chartered Bank at an all-in interest rate of 0.93% (2009 - 2.02%) which matured on 7 April 2010.
		On 7 April 2010, the principal amounts of the two loans were rolled forward into loans of US$2,750,000 and JPY68,800,000 at all-in interest rates of 1.38% and 0.92% respectively, until maturity on 7 June 2010.
		The terms of the loan facility with Standard Chartered Bank contain a covenant that total borrowings should not exceed 25% of the net asset value of the Company at any time and that the net asset value should not fall below £15,000,000 at any time. The Company met this covenant throughout the period.
		Prior to January 2009, the Company operated a £7,000,000 multi-currency loan facility with ING Bank N.V.
			2010	2009
	(b)	Other creditors	£'000	£'000
		Amounts due to brokers	11	176
		Performance fee	853	-
		Other creditors	116	117
			______	______
			980	293
			______	______

		2010	2009
12.	Called-up share capital	£'000	£'000
	15,492,367 (2009 - 15,732,367) Ordinary shares of 10p each - equity	1,549	1,573
		______	______
	During the year, 240,000 (2009 - 541,000) Ordinary shares of 10p each (representing 1.5% of the issued Ordinary share capital at 31 March 2010) were bought back for cancellation at a total cost of £617,000 (2009 - £1,007,000) including expenses.

		2010	2009
13.	Capital reserve	£'000	£'000
	At 31 March	25,016	34,590
	Movement in investment holdings fair value gains/(losses)	18,704	(6,822)
	Gains/(losses) on realisation of investments at fair value	1,310	(1,476)
	Exchange gains/(losses)	217	(1,253)
	Performance fee	(853)	-
	Administrative expenses	(38)	(23)
		______	______
	At 31 March	44,356	25,016
		______	______
	The capital reserve includes investment holding gains amounting to £13,415,000 (2009 - losses of £5,289,000) as disclosed in note 9.

14.	Net asset value per share
	The net asset value per share and the net asset values attributable to Ordinary shareholders at the year end calculated in accordance with the Articles of Association were as follows:
		Net asset value		Net asset values
		per share		attributable
		2010	2009	2010	2009
		p	p	£'000	£'000
	Ordinary shares	316.34	192.67	49,009	30,311
		______	______	______	______
	The movements during the year of the assets attributable to the Ordinary shares were as follows:
				2010	2009
				£'000	£'000
	Net assets attributable at 1 April			30,311	40,329
	Buyback of Ordinary shares (including expenses)			(617)	(1,007)
	Capital return for the year			19,340	(9,574)
	Revenue on ordinary activities after taxation			353	563
	Dividend paid			(378)	-
				______	______
	Net assets attributable at 31 March			49,009	30,311
				______	______
	The net asset value per Ordinary share is based on net assets, and on 15,492,367 (2009 - 15,732,367) Ordinary shares, being the number of Ordinary shares in issue at the year end.

15.	Reconciliation of net return before finance costs and taxation	2010	2009
	to net cash inflow from operating activities	£'000	£'000
	Return on ordinary activities before finance costs and taxation	19,810	(8,835)
	Adjustments for:
	(Gains)/losses on investments	(20,014)	8,298
	Expenses taken to capital reserve	891	23
	Foreign exchange movements	(217)	1,253
	Decrease in accrued income	3	31
	(Increase)/decrease in other debtors	(3)	9
	Increase/(decrease) in other creditors	15	(5)
	Overseas withholding tax suffered	(50)	(60)
	Stock dividends included in investment income	(90)	-
		______	______
	Net cash inflow from operating activities	345	714
		______	______

		1 April	Cash	Exchange	31 March
		2009	flow	movements	2010
16.	Analysis of changes in net debt	£'000	£'000	£'000	£'000
	Cash at bank	1,842	(1,221)	4	625
	Debts falling due within one year	(4,822)	2,311	213	(2,298)
		______	______	______	______
	Net debt	(2,980)	1,090	217	(1,673)
		______	______	______	______

17.	Related party disclosures
	During the course of the year, the Company has sold out of investments in other funds managed by the same Manager (details in note 3). There were no other related party transactions during the year.

18.	Financial instruments
	Risk management
	The Company's financial instruments comprise securities and other investments, cash balances, loans and debtors and creditors that arise directly from its operations; for example, in respect of sales and purchases awaiting settlement, and debtors for accrued income.
	The main financial risks that the Company faces from its financial instruments are market price risk, interest rate risk, liquidity risk and credit risk.
	The Board has established policies for managing each of these risks and reviews regularly their implementation by the Manager. The Company's policies for managing these risks are summarised below and have been applied throughout the year.
	Market price risk
	The fair value of or future cash flows from a financial instrument held by the Company may fluctuate because of changes in market prices. This market risk comprises two elements - security price risk and currency risk.
	Security price risk
	Changes in market prices for the Company's portfolio of securities directly affect their reported value in the Balance Sheet.
	It is the Board's investment policy for the Company's assets to be invested in a selected portfolio of securities in quoted companies. The Manager has a dedicated investment management process, which ensures that the risk inherent in this investment policy is controlled. Underlying the process is the belief that risk is not that individual stock prices fluctuate in the short term, or that movement in the value of the portfolio deviates from the benchmark but that risk is investment in poorly managed expensive companies which the Manager does not understand. In depth research and stock selection procedures are in place based on this risk control philosophy. The portfolio is reviewed on a periodic basis by the Manager's Investment Committee and by the Board.
	Security price sensitivity
	If market prices at the Balance Sheet date had been 10% higher or lower while all other variables remained constant, the return attributable to Ordinary shareholders for the year ended 31 March 2010 would have increased/(decreased) by £5,130,000 (2009 increased/(decreased) by £3,338,000) and equity reserves would have increased/(decreased) by the same amount.
	Foreign currency risk
	All of the Company's investment portfolio is invested in overseas securities and the Balance Sheet, therefore, can be significantly affected by movements in foreign exchange rates. It is not the Company's policy to hedge this risk on a continuing basis but the Company may, from time to time, match specific overseas investment with foreign currency borrowings. The Company's borrowings, as detailed in note 11, are also in foreign currency.
	The revenue account is subject to currency fluctuation arising on dividends paid in foreign currencies. The Company does not hedge this currency risk.
	Foreign currency risk exposure by currency of denomination:
		31 March 2010			31 March 2009
			Net	Total		Net	Total
		Overseas	monetary	currency	Overseas	monetary	currency
		investments	assets	exposure	investments	assets	exposure
		£'000	£'000	£'000	£'000	£'000	£'000
	Australian Dollar	1,729	-	1,729	987	-	987
	Hong Kong Dollar	7,180	-	7,180	4,788	(120)	4,668
	Indian Rupee	6,577	180	6,757	-	-	-
	Japanese Yen	11,574	(485)	11,089	9,029	(1,229)	7,800
	Korean Won	2,866	-	2,866	1,750	4	1,754
	Malaysian Ringgit	2,023	-	2,023	1,450	-	1,450
	Philippine Peso	935	-	935	573	-	573
	Singapore Dollar	8,000	-	8,000	5,372	(56)	5,316
	Taiwan Dollar	1,865	63	1,928	1,459	139	1,598
	Thailand Baht	2,352	-	2,352	1,134	-	1,134
	US Dollar	2,353	(1,621)	732	1,515	(2,054)	(539)
		______	______	______	______	______	______
	Total	47,454	(1,863)	45,591	33,375	(3,152)	30,223
		______	______	______	______	______	______

	Foreign currency sensitivity
	There is no sensitivity analysis included as the Company's significant foreign currency financial instruments are in the form of equity investments, which have been included within security price risk sensitivity analysis so as to show the overall level of exposure. Due consideration is paid to foreign currency risk throughout the investment process.
	Interest rate risk
	Interest rate movements may affect:
	- the level of income receivable on cash deposits; and
	- interest payable on the Company's variable rate borrowings.
	The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account when making investment and borrowing decisions.
	Interest rate sensitivity
	Movements in interest rates would not significantly affect net assets attributable to the Company's shareholders and total profit.
	Liquidity risk
	This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. Liquidity risk is not considered to be significant as the Company's assets mainly comprise readily realisable securities which can be sold to meet funding requirements if necessary and short-term flexibility is achieved through the use of loan facilities, details of which may be found in note 11.
	Liquidity risk exposure
	At 31 March 2010 and 31 March 2009 the Company's bank loans, amounting to £2,298,000 and £4,822,000, respectively, were both due for repayment or roll-over within six months along with interest due on the amount of the principal at the same time.
	Credit risk
	This is the risk of failure of the counterparty to a transaction to discharge its obligations under that transaction that could result in the Company suffering a loss.
	The risk is not significant given the relatively small amounts involved, and is managed as follows:
	-	investment transactions are carried out with a large number of brokers of good quality credit standing; and
	-	cash is held only with reputable banks with high quality external credit enhancements.
	None of the Company's financial assets is secured by collateral or other credit enhancements and none are past due or impaired.
	Credit risk exposure
	The amount of cash at bank and in hand of £625,000 (2009 - £1,842,000) and debtors of £360,000 (2009 - £209,000) in the Balance Sheet represent the maximum exposure to credit risk at 31 March.
	Fair values of financial assets and financial liabilities
	All financial assets and financial liabilities of the Company are included in the Balance Sheet at fair value.

19.	Capital management policies and procedures
	The Company's capital management objectives are:
	- to ensure that the Company will be able to continue as a going concern, and
	- to maximise the income and capital return to its equity shareholders through an appropriate balance of equity capital and debt. The Board normally seeks to limit gearing to 15% of net assets.
	The Board monitors and reviews the broad structure of the Company's capital on an ongoing basis. This review includes the nature and planned level of gearing, which takes account of the Manager's views on the market and the extent to which revenue in excess of that which is required to be distributed should be retained.
	The Company's objectives, policies and processes for managing capital are unchanged from the preceding accounting period and year end positions are presented in the Balance Sheet.

20.	Contingent liabilities
	The Company had no contingent liabilities at 31 March 2010.

21.	Fair value hierarchy
	The amendments to FRS 29 'Financial Instruments: Disclosures' effective from 1 January 2009 require an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:
	-      Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
	-      Level 2: inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly (ie as prices) or indirectly (ie derived from prices); and
	-      Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
	The financial assets and liabilities measured at fair value in the statement of financial position are grouped into the fair value hierarchy at 31 March 2010 as follows:
		Level 1	Level 2	Level 3	Total
		£'000	£'000	£'000	£'000
	Financial assets at fair value through profit or loss
	Quoted equities	51,302	-	-	51,302
		______	______	______	______
	Net fair value	51,302	-	-	51,302
		______	______	______	______

Additional notes for Annual Financial Report:

The final dividend, subject to shareholder approval, will be paid on 30 July 2010 to shareholders on the register at the close of business on 2 July 2010. The ex-dividend date is 30 June 2010.

This Annual Financial Report announcement is not the Company's statutory accounts.  The statutory accounts for the year ended 31 March 2009 have been delivered to the Registrar of Companies.  The statutory accounts for the years ended 31 March 2009 and 31 March 2010 received an audit report which was unqualified, did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying the report and did not include a statement under either section 237(2) or 237(3) of the Companies Act 1985 or section 498(2) or (3) of the Companies Act 2006, as appropriate.  The statutory accounts for the financial year ended 31 March 2010 have been approved by the Board and audited but will not be filed with the Registrar of Companies until after the Company's Annual General Meeting which will be held at 11.00am on 27 July 2010 at Bow Bells House, One Bread Street, London EC4M 9HH.

The Annual Report will be posted to shareholders in June 2010 and copies will be available from the Manager or from the Company's website (www.all-asia.co.uk).

Please note that past performance is not necessarily a guide to the future and that the value of investments and the income from them may fall as well as rise and may be affected by exchange rate movements.  Investors may not get back the amount they originally invested.

For Aberdeen All Asia Investment Trust PLC

Aberdeen Asset Management PLC, Secretaries

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