Half-yearly report

Martin Currie Portfolio Investment Trust plc

Half-yearly financial report
Six months to 31 July 2008

A copy of this interim report can be downloaded at
www.martincurrieportfolio.com

Financial Highlights

Key data

                  As at     As at        %
                  31 July   31 January   change
                  2008      2008
Net asset value   131.0p    137.2p       (4.7)
per share*
FTSE All-Share    2,749.2   3,000.1      (8.4)
index
Share price       119.5p    124.3p       (3.9)
Discount**        7.1%      7.8%


*Calculated in accordance with the requirements of the Association of Investment
Companies (AIC).

**Calculated using net asset value per share excluding income and the share
price.


Total returns†

                  Six months    Six months
                  ended 31      ended 31
                  July 2008     July 2007
Net asset value   (3.4%)        8.8%
per share
FTSE All-Share    (6.2%)        4.3%
index
Share price       (2.3%)        7.1%

†The combined effect of any dividend paid, together with the rise or fall in the
share price, net asset value or FTSE All-Share index.

Income

                  Six months    Six months    %
                  ended         ended 31      change
                  31 July 2008  July 2007
Revenue return    2.28p         1.62p        40.7
per share‡
Interim divided   1.00p         0.50p        100.0
per share

‡For details of calculation, refer to note 2


Total expenses
(as a percentage of shareholders' funds)

                  Six months    Six months
                  ended 31      ended 31
                  July 2008     July 2007
Excluding         0.8%          0.8%
performance
fees*
Performance fees  0.2%          0.6%
Total             1.0%          1.4%

*Total expenses are calculated using average net assets of the fund over the
year.



Chairman's Statement

Your  company  has delivered strong returns for shareholders  since  1999  in  a
variety  of market conditions. As our manager Tom Walker explains in his review,
the testing environment that we described in our annual report earlier this year
has continued over the six months to 31 July.

Over  the  last six months asset values have fallen but shareholders  in  Martin
Currie Portfolio Investment Trust have been protected from the worst effects  of
the correction in global stock markets. Tom Walker and his team have shown skill
and  judgment  in  steering the portfolio through some of the  most  challenging
markets for many years.


Performance
In  the  six month period under review the company's share price fell  by  3.9%,
less  than  the  8.4% fall in the FTSE All-Share (capital only),  the  company's
benchmark index. In the same period the net asset value per share fell by 4.7%.

The  table below shows the share price total returns against the benchmark index
over  five years to 31 July 2008. We have included each discrete 12-month period
illustrating  the degree to which Martin Currie Portfolio Investment  Trust  has
been  able  to  benefit  from  rising markets, and protect  shareholders  during
falling markets. This is a powerful combination during uncertain times.

Annual share price total returns with dividends reinvested over 12 month periods
to 31 July

              2008   2007   2006  2005   2004
Martin Currie (1.6%) 17.7%  15.8% 31.5%  11.3%
Portfolio
share price
FTSE All-    (13.3%) 12.9%  17.3% 24.7%  10.7%
Share index


5 year share price total return

FTSE                +58.6%
All-Share
Index
Martin              +96.3%
Currie
Portfolio


Source: Fundamental Data

While  the  company's  benchmark  is  the FTSE  All-Share  Index,  reflecting  a
substantial  portion  of the assets and the domicile of  our  shareholders,  Tom
Walker has flexibility to choose the best stocks internationally and to maintain
a part of the portfolio in private equity.

The performance in the most recent 6-month period is a strong vindication of the
company's  diversified  three-tier strategy, with each  part  of  the  portfolio
providing some defence against market turbulence. In a period in which the  FTSE
All-Share index (total return) fell by 6.2%;

-The UK equity portion of the portfolio fell by 3.1%;
-The international portion of the portfolio fell by 4.4% in a volatile market;
-The private equity portion added significant value for shareholders, rising  by
5.4%.

Looking  ahead, it is likely to remain a difficult period for markets. I believe
our  strategy  is  as  relevant now as ever, and ensures shareholders  are  well
placed for the years ahead.

Earnings and dividends
Despite  the difficult backdrop, corporate earnings growth has been robust  over
the  period, and that is reflected in the company's portfolio. Compared with the
same  period last year, revenue return per share has increased by 40.7%,  rising
from  1.62p to 2.28p. As a result the board is recommending an interim  dividend
of  1.0p (2007: 0.50p), which will be paid on 28 October to shareholders on  the
register as at 3 October.

VAT Recovery
The Board is now in the final stages of quantifying our claim for submission  to
HMRC.  It  is anticipated that the VAT Recovery will be received in  the  second
half  of the financial year and will be reflected in the annual report, but  the
figure received is unlikely to be more than 1% of net asset value.

NAV and Discount
In  line  with  the revision to the AIC recommended practice  we  will,  from  1
October  2008,  publish a single net asset value that will  include  accumulated
income.

The  board  is pleased to have maintained stability in the discount. We  believe
this  means that the company's value is more accurately reflected in  its  share
price, and that management and shareholders can concentrate on what matters most
- investment performance.

Peter Berry
Chairman
22 September 2008



Interim Management Report

I  wrote  in  this report a year ago about the initial stages of the  collapsing
credit  markets. They have continued to weaken and to dominate  all  aspects  of
investment  in every asset class; they seem likely to do so for some  time  yet.
Over  the  last  six  months, equity markets have fallen around  the  world  and
volatility has increased as concerns have escalated from anxiety about weak bank
balance sheets to fears of a global recession.

Though their decline has been less than the benchmark index, our share price and
NAV  have  also  fallen  over the six months.  Holding  cash  and  limiting  our
exposure to banks have been significant reasons for outperforming the benchmark.

United Kingdom
The  UK  has been one of the worst performing markets in the world in  this  six
month period. Political uncertainty has contributed to weakness in sterling, but
the  main issue is that of increased fiscal borrowing at a time when the economy
is  slowing dramatically. Property prices are now in decline but high inflation,
driven  by food and energy prices, has made it impossible for interest rates  to
be cut as much as many would like.

The  weakness  in  the  UK stockmarket has been driven  both  by  large,  global
companies  in  the  telecom and bank sectors but also by  many  of  the  smaller
companies  that  sell almost exclusively to the hard-pressed UK  consumer,  like
retailers and housebuilders. Commodity stocks and pharmaceutical companies  have
been the best performers in the market.

I  sold  out  of  Vodafone in January which has proved to be  a  good  decision;
reinvesting  part  of  the proceeds in BT Group was not, however,  such  a  good
decision. As stated above, the whole
telecom sector has suffered over competition and demand issues. Not holding HBOS
and  Lloyds has also been helpful, though, clearly, my holding in Royal Bank  of
Scotland  has  been  dreadful. I did take up our shares in their  recent  rights
issue.   Our  resource  investments, though weakening towards  the  end  of  the
period, have outperformed.

International
Overseas markets have mostly declined less than the UK, China and the USA  being
the  most  notable exceptions. In the USA, some of the largest credit losses  in
history have led to increasing
bank  failures creating broad nervousness amongst investors.  China  has  fallen
about  50% from its dizzy heights of last year.  The euro has been the strongest
major  currency in the world this year as the European Central Bank has remained
firm and held interest rates at current levels despite the slowing economy. As a
result,  continental Europe has been the best region for investment in the  last
six months.

Outwith  the banking sector, many companies are still enjoying decent  operating
results.  Earnings at the half year, for example, in America, have  seen  growth
over  last  year. Companies like Tecnicas Reunidas, the engineering company  and
Apple,  which  I  bought during this period have contributed  positively.  Other
acquisitions in the period include US retailer, WalMart and fertiliser producer,
Potash  Corporation of Saskatchewan. Two of our worst performers  overseas  have
been New World Development, the Hong Kong property company and MEMC Electronics,
the  polysilicon and silicon wafer manufacturer. In both cases, these  companies
were strong contributors last year and have been oversold, offering now, I feel,
exceptional value.

Total returns
Six months to 31 July 2008

                      %
                      growth

UK equity portfolio   (3.1%)
International         (4.4%)
portfolio
Private equity        +5.4%
Net asset value       (3.4%)
FTSE All-Share        (6.2%)


Source: Martin Currie and Fundamental Data

Private equity
F&C Private Equity has performed well this period. The maturity of its portfolio
is a key characteristic as many of the problems arising for private equity
investors relate to deals entered upon in the frothy environment in 2006/7. It
is much less exposed to such investments than many competitors. Though the Trust
received a large capital repayment from this investment earlier
this year, it remains our largest investment at 10.4% of assets.  Candover also
performed well during the period. SVG, which is more exposed to the quoted
equity market and to larger deal
sizes has underperformed. Its share price now stands at a large discount to its
net asset value.

Performance
It is not very satisfactory to report on a period when the value of our shares
has fallen; it is some consolation that they have outperformed. The contribution
to outperformance came largely, and in equal measure, from our private equity
portfolio (see previous page) and the UK portfolio, though overseas equities
also contributed. In the UK, our two largest stock contributions came from not
owning Vodafone and HBOS but BHP, Weir Group and BG, all of which we did own,
also added a
lot of value. At the other end of the scale, not holding AstraZeneca detracted
from performance as healthcare outperformed.

Outlook
In the short term it is hard to see a rapid recovery in the financial climate.
The rate at which banks are reporting credit problems may be well advanced, but
it has not yet started to decelerate. While it would be naïve to think that the
tightening of credit markets will have no impact on industrial activity, it has
been encouraging to see corporate activity picking up; companies that are not
overly reliant on bank finance to strike deals are recognising opportunities to
make acquisitions at attractive prices.

The investment horizon of this trust is more distant than the average hedge
fund, that may be looking to the end of the quarter. At the same time it is
perhaps not quite as distant as that of an operating company that may make a
strategic acquisition on a five year view. Therein lies the dilemma today. There
are a number of things that could cause the market to fall near term yet on a
long term view, there is real value on offer in global equity markets.

I have used recent market weakness to reduce our cash balance from 9% at the end
of January to 3% at the half-year end. I remain underweight in the banking
sector where I see the greatest risk but I am convinced that some companies,
where fear levels are highest, have been oversold and should provide the best
long term investment returns. Some of my worst performing investments over the
last six months are likely to be amongst the best in the next two years.

Tom Walker
22 September 2008



Risks and Uncertainties
The principal risks and uncertainties that the company faces have not changed
since the publication of the last annual report. A summary of these can be found
in the table below, with further information on page 13, and pages 34-36 of the
company's full annual report for the year to 31 January 2008, which can be
obtained free of charge from Martin Currie and is available on the website
www.martincurrieportfolio.com.

Risk Mitigation
Loss of s842 status In order to qualify as an investment trust, the company must
comply with Section 842 of the Income and Corporation Taxes Act 1988.  Section
842 qualification criteria are continually monitored by Martin Currie and the
results reported to the board at each meeting.

Operational disruption at the manager's premises - Martin Currie has in place a
full disaster recovery and business continuity plan which facilitates continued
operation of the business should the Manager's premises be subject to
operational disruption. The plan, including a full staff call chain test, was
last tested in November 2007 with successful results. The Manager maintains a
fully operational off-site disaster recovery centre for use by key staff during
any disruption.

Regulatory, accounting/ internal control breach - The company must comply with
the Companies Act 1985 and 2006 and the UKLA Listing Rules. The board relies on
the services of its company secretary and its professional advisers to ensure
compliance.

Loss of investment team or investment manager - The manager takes steps to
reduce the likelihood of such an event by ensuring appropriate succession
planning and the adoption of a team based approach, as well as special efforts
to retain key personnel.

Failure to manage the discount - The board regularly discusses discount policy
and has set parameters for the manager and the company's broker to follow.

Investment underperformance - The board manages the risk of investment
underperformance by diversification of investments and through a set of
investment restrictions and guidelines that are monitored and reported on by the
manager.  The board monitors the implementation and results of the investment
process with the investment manager, who attends all board meetings, and reviews
data that show statistical measures of the company's risk profile.

Gearing/Interest rate risk - From time to time the company finances its
operations through bank borrowings. However, the board monitors such borrowings
(gearing) closely and takes a prudent approach.

Foreign exchange risk - A portion of the company's portfolio is held in
currencies other than sterling and a high proportion of major UK listed
companies receive a substantial percentage of their revenues from international
operations, so in principle the board charges the manager to consider exchange
risk in the normal course of market and stock analysis. From time to time the
board may, however, hedge overall exposure to a particular currency (for example
the US dollar or Japanese yen) sometimes by borrowing in these currencies
against portfolio exposure to them.

Related Party Transactions
There have been no related party transactions during the first half of the year.

Directors' Responsibility
In accordance with Chapter 4 of the Disclosure and Transparency Rules, and to
the best of their knowledge, each Director of Martin Currie Portfolio Investment
Trust plc ("the company") confirms that the financial statements have been
prepared in accordance with the applicable set of accounting standards and with
the Statement of Recommended Practice `financial statements of Investment Trust
companies', and give a true and fair view of the assets, liabilities, financial
position and profit or loss of the company. Furthermore, each Director certifies
that the interim management report includes an indication of important events
that have occurred during the
first six months of the financial year, and their impact on the financial
statements, together with a description of the principal risks and uncertainties
that the company faces. In addition each Director of Martin Currie Portfolio
Investment Trust plc confirms that there have been no related party transactions
during the first half of the year.

By order of the board
Martin Currie Investment Management Limited
Secretaries
Edinburgh
22 September 2008



Portfolio Summary

Portfolio distribution as at 31 July

By Region    2008   2007
United       59.2%  55.9%
Kingdom
Internation  27.8%  30.1%
al*
Private      13.0%  14.0%
Equity
             100.0% 100.0%

*International    2008   2007
North America     11.9%  12.0%
Europe (ex UK)    8.4%   9.4%
Developed Asia    3.4%   2.8%
Japan             2.2%   2.0%
Global Emerging   1.9%   3.9%
Markets


2008                Martin Currie
By Sector           Portfolio
(excluding cash and Investment     Benchmark
private equity)     Trust          **
Financials          18.5%          25.1%
Oil and gas         18.4%          18.2%
Basic materials     13.9%          12.3%
Industrials         9.6%           6.9%
Technology          9.4%           1.1%
Consumer services   8.9%           9.1%
Healthcare          7.5%           7.3%
Consumer goods      7.2%           9.4%
Utilities           4.2%           4.5%
Telecommunications  2.4%           6.1%
                    100.0%         100.0%


**Benchmark: FTSE All Share

By Asset Class   2008   2007
(including cash
and borrowings)
Equities         96.9%  104.6%
Cash             3.1%   0.2%
Less borrowings  -      (4.8%)
                 100.0% 100.0%



Largest Holdings  2008       2008     2007      2007
                  Market     % of     Market    % of
                  Value      total    value     total
                  £000       portfol  £000      portfol
                             io                 io
F&C Private       17,992     10.4     24,056    11.6
Equity Trust†
BP                10,906     6.3      12,077    5.8
HSBC Holdings     10,467     6.1      11,403    5.5
BG                8,563      5.0      6,567     3.2
BHP Billiton      8,240      4.8      7,805     3.8
GlaxoSmithKline   7,903      4.6      8,434     4.1
Royal Bank of     6,167      3.6      7,413     3.6
Scotland
Anglo American    5,462      3.2      4,724     2.3
Xstrata           5,268      3.0      -         -
British American  4,579      2.7      4,008     1.9
Tobacco
Royal Dutch       4,487      2.6      4,935     2.4
Shell
BT                3,570      2.1      -         -
Candover          3,362      1.9      2,948     1.4
Investments
Tesco             3,352      1.9      3,793     1.8
Morrison (W)      2,826      1.6      -         -
Scottish &        2,684      1.6      2,774     1.3
Southern Energy
Weir              2,642      1.5      2,467     1.2
Babcock           2,427      1.4      -         -
International
MAN Group         2,411      1.4      2,547     1.2
Exelon            2,224      1.3      1,931     0.9

†Ordinary and restricted voting shares combined

Unaudited Income Statement

                   Six months to 31          Six months to 31
                   July 2008                 July 2007

             Notes Revenue  Capital  Total    Revenue  Capital    Total
                   £000     £000     £000     £000     £000       £000
Net (losses)       -        (8,384) (8,384)     -      12,119     12,119
/ gains on
investments
Net currency 9     -           (40)    (40)     -         382        382
(losses) /
gains
Income -     3     2,453       348   2,801     2,315      692      3,007
franked
- unfranked  3     1,131         -   1,131       582        -        582
Investment          (160)     (320)   (480)     (190)    (380)      (570)
management
fee
Performance  4        -       (424)   (424)        -   (1,198)    (1,198)
fee
Other               (220)        -    (220)     (233)       -       (233)
expenses
Net return         3,204    (8,820) (5,616)    2,474   11,615     14,089
before
finance
costs and
taxation
Finance               (3)       (8)    (11)     (95)    (185)       (280)
costs: debt
Finance           (3,113)    8,733   5,620   (2,726) (11,104)    (13,830)
costs:
shareholders
' funds
Finance                -        95      95        -       85          85
costs:
repurchase
of shares
Net return            88         -      88     (347)     411          64
on ordinary
activities
before
taxation
Taxation on  5       (88)        -     (88)     (64)       -         (64)
ordinary
activities
Return                 -         -       -     (411)     411           -
attributable
to
shareholders


                   (Audited)
                   Year to 31 January
                   2008
             Notes  Revenue  Capital  Total
                    £000     £000     £000

Net (losses)           -      187      187
/ gains on
investments
Net currency 9         -       96       96
(losses) /
gains
Income -     3     4,092   12,269   16,361
franked
- unfranked  3     1,033        -    1,033
Investment          (345)    (690)  (1,035)
management
fee
Performance  4       -     (1,862)  (1,862)
fee
Other               (474)       -     (474)
expenses
Net return         4,306   10,000   14,306
before
finance
costs and
taxation
Finance             (186)    (358)    (544)
costs: debt
Finance           (4,028) (10,403) (14,431)
costs:
shareholders
' funds
Finance                -      761      761
costs:
repurchase
of shares
Net return            92        -       92
on ordinary
activities
before
taxation
Taxation on  5       (92)       -     (92)
ordinary
activities
Return                 -        -       -
attributable
to
shareholders



Returns per ordinary share (as defined by the Articles) are detailed in note 2.

The total columns of this statement are the profit and loss accounts of the
company.
The revenue and capital items are presented in accordance with the Association
of Investment Companies (AIC) Statement of Recommended Practice.
All revenue and capital items in the above statement derive from continuing
operations.
No operations were acquired or discontinued in the six months.
A Statement of Total Recognised Gains and Losses is not required as all gains
and losses of the company have been reflected in the above statement.



Unaudited Balance Sheet

                      As at 31 July  As at 31 July  (Audited)
                      2008           2007           as at 31 Jan
                                                    2008
                 Note  £000   £000    £000    £000   £000    £000

Non-current
assets
Investments at
fair value
through profit
or loss
Listed on the               124,792         144,244        119,189
stock exchange
in the UK
Listed on stock              47,953          62,708         54,444
exchanges
abroad
                 6          172,745         206,952        173,633

Current Assets
Loans and        7      370          387               300
Receivables
Cash at bank          5,636          565            26,020
                      6,006          952            26,320
Creditors
Amounts falling  8    (854)      (11,268)          (12,311)
due within one
year
Net current                   5,152        (10,316)        14,009
Assets/(liabili
ties)
Net Asset Value             177,897        196,636        187,642
attributable to
shareholders
Net Asset Value  2           131.0p          137.6p         137.2p
per ordinary
share including
income
Net Asset Value  2           128.7p          136.8p         134.8p
per ordinary
share excluding
income





Unaudited Statement of Cash Flow

                 Not  Six months to  Six months to  (Audited)
                 e    31 July 2008   31 July 2007   Year to 31
                                                    January 2008
                      £000   £000    £000    £000   £000    £000
Net cash inflow  10          664             2,694          16,379
from operating
activities

Servicing of
finance
Finance Cost:         (123)          (291)          (475)
debt
Finance Cost:       (2,871)        (2,726)        (3,441)
Shareholders
funds
Net Cash                   (2,994)          (3,017)         (3,916)
outflow from
servicing of
finance
Capital
Expenditure and
Financial
Investment
Payment to         (23,829)       (29,859)        (41,582)
acquire
investments
Sales of            16,333         29,369          62,479
investments
Net Cash                    (7,496)           (490)         20,897
(outflow)/inflo
w from capital
expenditure and
financial
investment
Net Cash                    (9,826)           (813)         33,360
(outflow)/inflo
w before
financing

Financing
Repurchase of               (1,088)           (780)        (8,985)
ordinary share
capital
Repayment of                (9,470)              -           (492)
short term bank
borrowings

(Decrease)/                (20,384)          (1,593)         23,883
increase in
cash





                 Six months to  Six months to  (Audited)
                 31 July 2008   31 July 2007   year to 31
                 £000           £000           January 2008
                                               £000
Reconciliation
of net cash
flow to
movements in
net cash/(debt)
(decrease)/incr  (20,384)       (1,593)        23,883
ease in cash as
above
Repayment of     9,470          -              492
short term bank
borrowings
Change in net    (10,914)       (1,593)        24,375
cash/ (debt)
resulting from
cash flows
Foreign          (40)           382            96
exchange
movements
Movement in      (10,954)       (1,211)        24,471
cash net/
(debt) in the
period
Opening net      16,590         (7,881)        (7,881)
cash/(debt)
Closing net      5,636          (9,092)        16,590
cash/(debt)


Notes to the Financial Statements
1 Accounting policies
a) Basis of preparation - The financial statements have been prepared under the
historical cost convention as modified to include the revaluation of investments
and in accordance with applicable UK Accounting Standards and with the Statement
of Recommended Practice `Financial Statements of Investment Trust Companies'
(issued January 2003 and revised in December 2005). They have also been prepared
on the assumption that approval as an investment trust will continue to be
granted.

b) Income from investments (other than special dividends), including taxes
deducted at source, is included in revenue by reference to the date on which the
investment is quoted ex dividend, or where no ex-dividend date is quoted, when
the company's right to receive payment is established.

Franked investment income is stated net of the relevant tax credit. Other income
includes any taxes deducted at source. Special dividends are credited to capital
or revenue, according to the circumstances. Scrip dividends are treated as
unfranked investment income; any excess in value of the shares received over the
amount of the cash dividend is recognised as a capital item in the income
statement.

c) Interest receivable and payable and management expenses are treated on an
accruals basis.

d) The management fee and finance costs in relation to debt are recognised two-
thirds as a capital item and one-third as a revenue item in the income statement
in accordance with the board's expected long-term split of returns in the form
of capital gains and income, respectively. The performance fee is recognised
100% as a capital item in the income statement as it relates entirely to the
capital performance of the trust. Short term deposits, expenses and interest
payable are treated on an accruals basis. All expenses are charged to revenue
except where they directly relate to the acquisition or disposal of an
investment, in which case, they are added to the cost of the investment or
deducted from the sale proceeds.

e) Investments - Investments have been designated upon initial recognition as
fair value through profit or loss. Investments are recognised and derecognized
at trade date where a purchase or sale is under a contract whose terms require
delivery within the time frame established by the market concerned, and are
initially measured as fair value. Subsequent to initial recognition, investments
are valued at fair value. For listed investments, this is deemed to be bid
market prices or closing prices for SETS stocks sourced from The London Stock
Exchange. SETS is the London Stock Exchange's electronic trading service for UK
blue chip securities including all the FTSE 100 constituents and the most liquid
FTSE 250 along with some other securities. Gains and losses arising from changes
in fair value are included in net profit or loss for the period as a capital
item in the income statement and are ultimately recognised in the unrealised
reserve.

f) Transaction costs incurred on the purchase and disposal of investments are
recognised as a capital item in the income statements.

g) Foreign currencies are translated at the rates of exchange ruling on the
balance sheet date. Sterling is believed to be the functional currency.

Investments are recognised initially as at the trade date of a transaction.
Subsequent to this, the disposal of an investment is accounted for once again as
at the trade date of transaction. Revenue received and interest paid in foreign
currencies are translated at the rates of exchange ruling at the transaction
date.

h) All financial assets and liabilities are recognised in the financial
statements.

i) Dividends payable - Interim and final dividends are recognised in the period
in which they are paid.

j) Realised capital reserve - Gains or losses on investments realised in the
year that have been recognised in the income statement are transferred to the
realised capital reserve. In addition, any prior unrealised gains or losses on
such investments are transferred from the unrealised capital reserve to realised
capital reserve on disposal of the investment.

Share buy backs are funded through the special distributable reserve.

k) Unrealised capital reserve - Increases and decreases in the fair value of
investments are recognised in the income statement and are then transferred to
the unrealised capital reserve.
l) Deferred taxation - Deferred taxation is recognised in respect of all
temporary 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 temporary differences can be
deducted. Temporary 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 meeting the conditions required to obtain approval in the foreseeable
future, the company has not provided deferred tax on any capital gains and
losses arising on the revaluation or disposal of
investments.

m) Shareholders funds - Under FRS25 "Financial instruments: Disclosure and
presentation", when shares are issued, any component that creates a financial
liability in the balance sheet; measured initially at fair value net of
transaction costs and thereafter at amortised cost until extinguished on
redemption. The corresponding dividends relating to the liability component are
charged as finance costs in the income statement.

2.

                   Six months   Six months  Year to 31
                   to 31 July   to 31 July  January
                   2008         2007        2008
Returns and Net
Asset Value (as
defined by the
Articles)
The Return and Net
Asset Value per
ordinary share are
calculated with
reference to the
following figures:
Revenue Return
Revenue Return     -            (£411,000)  -
attributable to
ordinary
shareholders
Add back finance   £3,113,000   £2,726,000  £4,028,000
costs:
shareholders funds
                   £3,113,000   £2,315,000  £4,028,000

Average number of  136,510,184  143,174,983 142,254,259
shares in issue
during period
Return per         2.28p        1.62p       2.83p
ordinary share
Capital return
Capital return     -            £411,000    -
attributable to
ordinary share
holders
Add back finance   (£8,733,000)  £11,104,000 £10,403,000
costs:
shareholders funds
Deduct finance     (£95,000)    (£85,000)   (£761,000)
costs: repurchase
of shares
                   (£8,828,000)  £11,430,000 £9,642,000

Average number of  136,510,184  143,174,983 142,254,259
shares in issue
during year
Return per         (6.47p)      7.98p       6.78p
ordinary share
Total return
Total return per   (4.19p)      9.60p       9.61p
ordinary shares

Net asset value    As at 31       As at 31    As at 31
per share          July 2008      July 2007   January
                                              2008
Net assets         £177,897,000  £196,636,000 £187,642,000
attributable to
shareholders
Number of shares   135,804,944    142,917,915  136,716,072
in issue at the
period end
Accounting net     131.0p         137.6p       137.2p
asset value per
share
Reconciliation of
Net asset values
Net asset value    131.0p         137.6p       137.2p
per share
including income
Exclusion of       (2.3p)         (0.8p)       (2.4p)
undisputed current
period revenue
Net asset value    128.7p         136.8p       134.8p
per share
excluding income

Since the period end a further 221,890 ordinary shares of 5p each have been
bought back for cancellation at a cost of £269,000

3.

                   Six months to  Six months to   Year to 31
                   31 July 2008   31 July 2007    January 2008
                   £000           £000            £000
Income
From listed
investment
UK equities        2,453          2,315           4,092
International      766            541             862
equities
Other income
Interest on        343            41              171
deposits
Underwriting       22             -               -
commission
                   3,584          2,897           5,125


In addition, during the six months to 31 July 2008, the company received a
capital dividend of £311,000 from F&C Private Equity Trust and £37,000 from ABB
Limited. During the six months to 31 July 2007, the company received a capital
dividend of £692,000 from Intercontinental Hotels.

4 Performance fee
The charge of £424,000 represents the accrual for the performance fee for the
year to 31 January 2009 (31 July 2007: £1,198,000).






5.

            Six months to 31   Six months to      Year to
            July 2008          31 July 2007       31 January 2008

            Reven  Capi  Tota  Reven  Capi  Tota  Reven   Capi  Tot
            ue     tal   l     ue     tal   l     ue      tal   al
            £000   £000  £000  £000   £000  £000  £000    £000  £00
                                                                0
Taxation
on
ordinary
activities
Foreign     88     -     88    64     -     64    92      -     92
Tax



6.

                      As at 31   As at 31   As at 31
                      July 2008  July 2007  January
                      £000       £000       2008
                                            £000
Investments
Fair value through
profit or loss:
Cost at beginning of  143,403    154,709    154,790
period
Add: additions at     23,829     28,870     40,593
cost
Less: disposals at    (14,826)   (22,538)   (51,899)
cost
Cost at end of        152,406    161,041    143,403
period
Unrealised gains      20,339     45,911     30,230
Valuation at end of   172,745    206,952    173,633
period


The transaction cost in acquiring investments during the period were £115,000
(2007: £65,000). For disposals, transaction costs were £19,000 (2007: £56,000).

During the period there was a write down in the book cost of F&C Private Equity
Trust A shares of £153,000 and ABB Limited of £28,000.


7.

                      As at 31   As at 31   As at 31
                      July 2008  July 2007  January
                      £000       £000       2008
                                            £000
Loans and
receivables
Dividends receivable  275        313        212
Taxation recoverable  31         13         13
Other debtors         64         61         75
                      370        387        300



8.

                      As at 31   As at 31   As at 31
                      July 2008  July 2007  January
                      £000       £000       2008
                                            £000
Amounts falling due
within one year
Due to brokers for    71         -          -
repurchase of
ordinary shares
Due to Martin Currie  659        1,323      2,650
Other Creditors       124        288        231
Overdrawn US Dollar   -          94         158
bank account
Bank Borrowings       -          9,563      9,272
                      854        11,268     12,311


9.

               Calle  Capital  Special   Reali  Unreali  Reven
               d up   redempt  distribu  sed    sed      ue
               ordin  ion      table     capit  capital  reser
               ary    reserve  reserve   al     reserve  ve
               share  £000     £000      reser  £000     £000
               capit                     ve
               al                        £000
               £000
Memorandum -
Net asset
value
attributable
to
shareholders
As 31 January  6,835  9,182    152,090   (18,410)  30,230   7,715
2008
Ordinary       (46)   46       (1,159)         -       -       -
shares bought
back during
the period
Realised gain  -      -        -           1,507       -       -
on investments
during the
period
Realised       -      -        -             (40)      -       -
currency loss
during the
period
Unrealised     -      -        -              -   (9,891)      -
depreciation
on investments
Capitalised    -      -        -            (752)      -       -
expenses
Capital        -      -        -             348       -       -
dividends
received
Net revenue    -      -        -                -      -    3,113
Dividends paid -      -        -                -      -   (2,871)

Reallocation   -      -        -             242       -     (242)
of
shareholders
funds
As at 31 July  6,789  9,228   150,931    (17,105)  20,339   7,715
2008






10.

               Six months to  Six months to   Year to
               31 July 2008   31 July 2007    31 January
                                              2008

Reconciliatio
n of net
return before
finance costs
and taxation
to net cash
inflow from
operating
activities
Return on      (5,616)        14,089          14,306
ordinary
activities
before
finance costs
and taxation
Adjustments
for:
Losses/(gains  8,384          (12,119)        (187)
) on
investments
Effect of      40             (382)           (96)
foreign
exchange
rates
Increase in    (52)           (99)            (12)
dividends
receivable
and other
debtors
(Decrease)/in  (1,986)        1,273           2,464
crease in
other
creditors and
other
accruals
Overseas       (106)          (68)            (96)
withholding
tax suffered
Net cash       664            2,694           16,379
inflow from
operating
activities



11. Contingent assets
On  5  November  2007, the European Court of Justice ruled that management  fees
should  be  exempt  from  VAT. HMRC has announced its intention  not  to  appeal
against  this case to the UK VAT Tribunal and therefore protective claims  which
have  been made in relation to the company will be processed in due course.  The
Board  is  currently in the process of quantifying the potential repayment  that
should be due. However, the amount the company will receive, the period to which
it  will  refer, and the timescale for receipt are all uncertain and  hence  the
company  has  made  no  provision in these financial  statements  for  any  such
repayment.

Website
At www.martincurrieportfolio.com we maintain a website specifically for
shareholders in the trust and their advisers. It includes price and performance
statistics, monthly update, webcasts, online versions of the trust's annual and
interim reports and information on how to invest.