Half-yearly Report
Invesco Asia Trust plc
Half-Yearly Financial Report
For the Six Months to 31 October 2012
Key Facts
Invesco Asia Trust plc is an investment trust listed on the London Stock
Exchange.
Investment Objective
The objective of Invesco Asia Trust plc is to provide long-term capital growth
by investing in a diversified portfolio of Asian and Australasian companies.
The Company aims to achieve growth in its net asset value in excess of the MSCI
All Countries Asia Pacific ex Japan Index, measured in sterling.
Investment Policy
Invesco Asia Trust plc invests primarily in the equity securities of companies
listed on the stockmarkets of China, Hong Kong, India, Malaysia, Singapore,
South Korea, Taiwan, Thailand and Australasia. It may also invest in unquoted
securities up to 10% of the value of the Company's gross assets, and in
warrants and options when it is considered the most economical means of
achieving exposure to an asset.
The Company is actively managed and the Manager has broad discretion to invest
the Company's assets to achieve its investment objective. The Manager seeks to
ensure that the portfolio is appropriately diversified having regard to the
nature and type of securities (such as performance and liquidity) and the
geographic and sector composition of the portfolio.
Full details of the Company's investment limits can be found on page 18 of the
2012 annual financial report.
Performance Statistics
The Benchmark Index of the Company is the MSCI All Countries Asia Pacific ex
Japan Index (in sterling terms).
At 31 Oct At 30 %
Apr
2012 2012 Change
Total Return Statistics(1)
Diluted net asset value(2) +0.7
Benchmark Index +3.6
Capital Statistics
Net assets (£'000) 176,859 164,741 +7.4
Gross gearing 7.0% 3.8%
Net gearing 6.9% 3.6%
Net asset value:
- diluted(2) 165.2p 168.6p -2.0
Benchmark Index - capital return(1) 275.1 271.7 +1.3
Mid-market price:
- ordinary shares 146.6p 149.4p -1.9
Discount per ordinary share(3)
- cum income 11.3% 11.4%
- ex income 10.1% 9.7%
(1) Source: Thomson Reuters Datastream.
(2) As there are no longer any subscription shares, the diluted NAV is the
equivalent of the undiluted (basic) NAV for return statistics and the
calculation of the discount.
(3) The discount is the amount by which the mid-market price per ordinary share
is less than the undiluted (30 April 2012: diluted) net asset value per share.
Interim management report incorporating the Chairman's Statement
Chairman's Statement
Performance and Prospects
Investor sentiment towards Asian equity markets has improved over the last six
months, as policymakers have made progress in limiting the probability of a
destabilising global macro downturn. In Europe, the European Central Bank has
been explicit in its support for the euro, while reducing the likelihood of a
Eurozone breakup. Meanwhile, the announcement of open-ended quantitative easing
by the US Federal Reserve has increased investor risk appetite for `riskier
assets', and seen Asian equities outperform relative to global peers. While
there is lingering uncertainty over the outlook for global growth, Asian
equities appear to be consolidating their recent gains, buoyed by news that the
slowdown in China's economy is stabilising. While the value of the portfolio
has increased over the period, regrettably it has underperformed relative to
the benchmark and this is discussed in detail in the Investment Managers'
Report. Over the period, the diluted net asset value per ordinary share grew by
0.7%, compared to the benchmark index, the MSCI All Countries Asia Pacific
ex-Japan Index, which returned growth of 3.6%, adjusted for sterling. The
Company's share price fell from 149.4p to 146.6p, while the discount to net
asset value (ex income) at which the shares trade has widened from 9.7% to
10.1%.
Dividend
As in previous years, no interim dividend is being declared.
Outlook
Asian economic growth has slowed as developed markets continue to go through a
deleveraging process, with lingering uncertainty in the outlook for global
growth. However, there are reasons for optimism as China appears to have
avoided the hard landing scenario that some market participants had expected,
with signs of improvement in industrial production, exports and the general
condition of its manufacturing sector. Retail sales remain robust, while
incomes continue to rise, suggesting the gradual structural shift away from
investment-led growth to a more sustainable model continues.
With generally low levels of government, corporate and household debt and
rising wealth levels across the region, Asian economies remain fundamentally
strong. However, Asia's trade linkages with advanced economies and China's
reduced ability to sustain the level of investment growth of the past decade
suggest more moderate levels of economic growth going forward. Nevertheless,
they will continue to compare favourably with those being generated elsewhere
and moderate inflation in most countries across Asia will allow for a gradual
easing of monetary policy. This should lend support to Asian markets as
investors gain confidence in a stabilisation of economic and earnings growth
where expectations appear to be more realistic.
Although the global economic backdrop remains troubled, it is clear that Asia
is home to a growing number of companies that can continue to grow their
earnings despite a challenging macro environment. Asia's global economic
significance continues to rise and there are attractive investment
opportunities for investors in the medium-term, which are trading at the low
end of historical valuations.
Subscription Share Exercise and Share Buy Backs
During the period under review, subscription shareholders had their final
opportunity to exercise their right to subscribe for ordinary shares of the
Company at a price of 125p per share. The final subscription period ended on 31
August 2012 and, as a result, 17,648,153 ordinary shares were allotted in
mid-September 2012. The Company subsequently bought back 2,678,325 of these
shares into treasury. The Company also bought back a further 1,073,899 ordinary
shares, of which 598,899 were retained in treasury and 475,000 were cancelled.
These buy backs resulted in an enhancement to NAV of £750,000 (0.45%).
At the period end, the issued share capital consisted of 110,338,910 ordinary
shares, of which 3,277,224 were held in treasury. Since the period end, a
further 1,150,000 ordinary shares have been bought back and cancelled by the
Company at a price of 143.73p, giving a further enhancement to NAV of £259,000
(0.14%).
David Hinde
Chairman
19 December 2012
Investment Managers' Report
Market & Economic Review
Asian equity markets made broad gains over the six months to the end of
October, despite opening the period markedly weaker as the Eurozone debt crisis
deepened and concerns grew over the strength of the US economic recovery and
the economic slowdown in China. Markets recovered from June lows, taking
positive momentum from a summit of EU leaders. Since then sentiment has
continued to improve due to the high profile policy announcements made by the
European Central Bank and US Federal Reserve in September. While external
factors have continued to influence investor sentiment towards Asian equity
markets, there have also been lingering concerns over the rate of deceleration
in China's economy. However, recently released economic data from China has
been better-than-expected, suggesting the economic cycle is starting to
bottom-out.
China's 3Q GDP growth slowed to 7.4% year-on-year (y-o-y), from 7.6% the
previous quarter. Although inflationary pressures have remained benign, there
has been no sign of forceful stimulus from the Chinese authorities who refuse
to panic over the growth slowdown. Policy easing has been more gradual and
selective over the period, with two interest rate cuts, lower reserve
requirements for banks, more favourable lending conditions for first time
property buyers and a slight increase in approvals for infrastructure projects.
Industrial production, exports and fixed investment growth showed signs of
improvement in September, while retail sales growth remains robust at 14.2%
y-o-y. More recently, the official manufacturing Purchasing Manager's Index for
October rose to 50.2 from 49.8 in the prior month.
The Indian stockmarket has generated strong gains lifted by a series of
much-awaited policy announcements, including a cut to diesel subsidies and the
opening up of the retail and aviation sectors to foreign direct investment.
However, the economy continues to struggle with slowing growth and high
inflation. Elsewhere in the region, weaker demand from Europe and the US has
seen industrial production and exports disappoint, with growth forecasts
downgraded accordingly. Taiwan and Korea remain particularly exposed to slowing
global growth, with concerns raised over the strength of their domestic
economies. Other Asian economies have proved more resilient, with strong
domestic demand and robust intra-regional trade, while central banks have been
able to ease monetary policy in support of their economies. Finally, although
returns from Australia have been supported by attractive dividend yields,
concerns remain over the outlook for the domestic economy, its reliance on the
materials sector and the continued high valuation of the Australian dollar.
In corporate news, earnings growth forecasts have generally been downgraded to
more reasonable levels. However, despite slower global economic growth and
general macro uncertainty, selected Asian companies have continued to prove
their ability to grow earnings. For example, Samsung Electronics and Taiwan
Semiconductor Manufacturing have reported impressive earnings growth driven by
strong demand for smartphones. Elsewhere, conglomerates such as Jardine
Matheson and Hutchison Whampoa have beaten expectations driven by strong growth
across diverse business units (Jardine's autos unit being the notable
exception); an impressive result considering the moderation of growth in some
of their major markets.
Company Performance
In the six months to the end of October 2012, the Company's diluted net asset
value grew by 0.7% (total return), compared to the benchmark MSCI All Countries
Asia Pacific ex-Japan Index, which returned +3.6% (total return) in sterling
terms.
Stock selection in financials was a significant detractor from Company
performance over the period. Holdings in selected insurance companies and
Korean banks disappointed with earnings results missing expectations due to the
difficult trading environment. Our limited exposure in Australian banks also
detracted, as the sector outperformed the market, supported by the attractive
dividend yields a number of these stocks offer. We continue to prefer the
earnings growth potential available in other regional banks, particularly those
with a presence in the Asean region.
Stock selection in consumer-related sectors also disappointed, largely due to a
number of holdings in Chinese retailers being negatively impacted by slowing
demand and a competitive environment. A number of our holdings in US-listed
Chinese companies have been negatively impacted by concerns over opaque
ownership structures, although these fears have since receded. However, a
number of these holdings are in Chinese internet companies, which have also
faced increasing concerns over slowing growth from online advertising.
Conversely, stock selection in industrials made a positive contribution to
Company performance, with our holding in Jardine Matheson having the single
biggest impact. The company's 2Q earnings beat consensus expectations by a
large margin, while the outlook for its major subsidiaries remains positive.
With good exposure to the growth of domestic consumption in China and
South-east Asia, 3Q earnings growth is expected to be robust, even against a
backdrop of moderating growth in many of its key markets. Selected holdings in
Hong Kong property developers have benefited from relative performance as
prices have proved resilient. Finally, our underweight exposure in the
materials and energy sectors also helped our performance against the benchmark.
Outlook for Asian Economies and Markets
Asian economic growth has slowed significantly in the face of global macro
uncertainty and the lagged effects of earlier policy tightening measures.
However, there are signs that China's economic cycle is close to bottoming-out,
which would bring some stability back to Asian economic growth. Exports and
industrial production have shown signs of improvement, supported by recent
positive manufacturing PMI readings. Furthermore, income growth has held up
well with retail sales remaining robust. While the Chinese government has
certainly had the capacity to give its economy further support, the moderate
policy response to the slowdown suggests the authorities are comfortable with a
gradual transition from investment-led growth to a more sustainable model,
where consumption plays a greater role. Aggressive stimulus is also unlikely
considering the Chinese authorities are loath to repeat the large fiscal
stimulus of 2008/9, which is now regarded as having been excessive.
Future economic growth rates for China, as well as the rest of the Asian
region, are likely to be lower than they have been in the past. However, they
are still likely to compare favourably with those being generated elsewhere.
Asian economies remain fundamentally strong with low levels of household debt
which, combined with increasing wage growth, should support consumer spending.
Also, with inflation remaining moderate in most countries across Asia, further
gradual easing of monetary policy can be expected if economic growth
decelerates further. This should lend support to Asian markets as investors
gain confidence in a stabilisation of economic and earnings growth. In the
meantime, we believe there is likely to be a continued tug of war between
improved liquidity conditions and earnings risk.
In recent months, earnings growth forecasts for Asia Pacific ex Japan companies
have generally been downgraded, as they have elsewhere. Consensus estimates for
earnings growth now stand at 3% for 2012 and at around 12% for 2013, bringing
current valuation levels for the region to around 12.4 times 2012 earnings and
11.1 times 2013 earnings. These valuation levels are at the low end of their
normal range, historically a good entry point for buying Asian equities.
However, while these lowered estimates are more realistic, further small
downward revisions, particularly for 2013, are likely given lingering global
macroeconomic uncertainty.
Strategy
Investor concerns over the slowdown in China, particularly in relation to
capital-intensive sectors such as materials, have seen valuation levels in this
area fall considerably. Following signs of stabilisation in China's economy and
the attractive valuations on offer, we have generally increased our cyclical
exposure through existing holdings such as POSCO, BHP Billiton and Standard
Chartered, and have introduced new holdings to the Company. Firstly, the
airline company Cathay Pacific is attractive, in our view, trading at close to
trough valuations and what we consider to be the bottom of the earnings cycle.
Angang Steel, another addition, trades at close to half its book value and is
well positioned to benefit from any pick-up in construction activity in the
near term. Other additions include CNOOC, a Chinese oil exploration &
production company, and Pacific Basin, a large dry-bulk carrier whose share
price, in our view, is discounting a far too pessimistic outlook.
Otherwise, our strategy is largely unchanged, seeking to capitalise on Asia's
structural strengths, especially the growth of domestic demand, with a focus on
selecting underappreciated companies that offer a relatively high
predictability and quality of earnings. Our main overweight position relative
to the benchmark index remains Hong Kong & China, believing that companies
there can take advantage of relatively good economic growth prospects. We
favour consumer-related areas of these markets, including Hong Kong-listed
conglomerates. We also have an overweight position in Korea, where the market
is generally valued at a discount relative to the region. Holdings include
global leaders with competitive advantages at what we consider to be attractive
valuations. Our exposure in the technology sector remains significant and
includes industry leaders with significant market share as well as Chinese
internet companies.
Our main underweight position remains in Australia, which we believe is at a
later stage in the credit cycle and has a lower growth profile compared to
other economies in the region. We are also concerned by the continued strength
of the Australian dollar. The underweight position is largely driven by our
limited exposure to Australian banks. We prefer to hold banks which have an
ability to grow their loan books profitably, such as those in Thailand and the
Philippines where credit penetration is low. We remain modestly underweight in
India, where valuations in some areas are relatively full in our opinion,
although we remain on the lookout for opportunities as and when the market and
currency exhibit significant weakness. The portfolio also continues to have
selective exposure to smaller companies (with market cap of less than US$ 1
billion), which offer the opportunity to deliver superior returns being at an
earlier stage in their growth cycle.
Stuart Parks / Ian Hargreaves
Investment Managers
19 December 2012
Related Parties and transactions with the manager
Under accounting standards, the Company has no related parties. Invesco Asset
Management Limited (`IAML'), a wholly-owned subsidiary of Invesco Limited, acts
as Manager, Company Secretary and Administrator to the Company. Details of
IAML's services and fee arrangements are given in the 2012 annual financial
report, which is available on the Manager's website at
www.invescoperpetual.co.uk/investmenttrusts.
Principal Risks and Uncertainties
The principal risk factors relating to the Company can be summarised as
follows:
- Investment objective - there can be no guarantee that the Company will meet
its investment objective;
- Market risk - a fall in the stock markets and/or a prolonged period of
decline in the stock markets relative to other forms of investment will affect
the performance of the portfolio;
- Investment risk -the risk of poor performance of individual investments. This
is mitigated by diversification and ongoing monitoring of investment
guidelines;
- Foreign Exchange Risks - foreign exchange currency movements will affect the
non-sterling assets and liabilities of the Company and could have a detrimental
impact on performance;
- Ordinary Shares - the market value of the ordinary shares may not reflect
their underlying NAV and may trade at a discount to it. The Company has a
discount monitoring mechanism to help the management of this;
- Gearing - the use of borrowings will amplify the effect on shareholders'
funds of portfolio gains and losses;
- Derivatives - derivative returns that do not exactly match the returns of the
underlying assets or liabilities being hedged may expose the Company to greater
loss than if the derivative contract had not been entered into;
- Reliance on Third Party Service Providers - failure by any service provider
to carry out its obligations to the Company could have a materially detrimental
impact on the operation of the Company and affect the ability of the Company to
successfully pursue its investment policy; and
- Regulatory - consequences of a serious breach of regulatory rules could
include, but are not limited to, the Company being subject to capital gains on
its investments; suspension from the London Stock Exchange; fines; a qualified
audit report; reputational problems and a loss of assets through fraud.
A detailed explanation of these principal risks and uncertainties can be found
on pages 20 to 22 of the Company's 2012 annual financial report, which is
available on the Manager's website www.invescoperpetual.co.uk/investmenttrusts
In the view of the Board these principal risks and uncertainties are as much
applicable to the remaining six months of the financial year as they were to
the six months under review.
Going Concern
The financial statements have been prepared on a going concern basis. The
Directors consider this is the appropriate basis as they have a reasonable
expectation that the Company has adequate resources to continue in operational
existence for the foreseeable future. In considering this, the Directors took
into account the diversified portfolio of readily realisable securities which
can be used to meet short-term funding commitments, and the ability of the
Company to meet all of its liabilities and ongoing expenses from its assets.
DIRECTORS' RESPONSIBILITY STATEMENT
in respect of the preparation of the half-yearly financial report
The Directors are responsible for preparing the half-yearly financial report
using accounting policies consistent with applicable law and UK Accounting
Standards.
The Directors confirm that to the best of their knowledge:
- the condensed set of financial statements contained within the half-yearly
financial report have been prepared in accordance with the Accounting Standards
Board's Statement `Half-Yearly Financial Reports';
- the interim management report includes a fair review of the information
required by 4.2.7R and 4.2.8R of the FSA's Disclosure and Transparency Rules;
and
- the interim management report includes a fair review of the information
required on related party transactions.
The half-yearly financial report has not been audited or reviewed by the
Company's auditors.
Signed on behalf of the Board of Directors.
David Hinde
Chairman
19 December 2012
Twenty-five largest holdings at 31 October 2012
Ordinary shares unless otherwise stated
Market
Value % of
Company Industry Group†Country £'000 Portfolio
Samsung Electronics Semiconductors & South 11,928 6.3
Semiconductor Equipment Korea
Jardine Matheson Capital Goods Hong Kong 8,631 4.6
Hutchison Whampoa Capital Goods Hong Kong 6,561 3.5
Daphne International Consumer Durables & Apparel Hong Kong 5,630 3.0
Taiwan Semiconductor Semiconductors & Taiwan 5,526 2.9
Manufacturing Semiconductor Equipment
CNOOCR Energy China 4,835 2.6
Hon Hai Precision Technology Hardware & Taiwan 4,786 2.5
Equipment
POSCO Materials South 4,161 2.2
Korea
Standard Chartered Banks UK 4,003 2.1
China MobileR Telecommunication Services China 3,945 2.1
China Taiping Insurance China 3,882 2.1
InsuranceR
Hyundai Mobis Automobiles & Components South 3,833 2.0
Korea
DGB Financial Banks South 3,796 2.0
Korea
BHP Billiton Materials Australia 3,765 2.0
Hyundai Motor Automobiles & Components South 3,714 2.0
Korea
Housing Development Banks India 3,499 1.8
Finance
HSBC Banks UK 3,347 1.8
United Phosphorus Materials India 3,304 1.7
Baidu.com Software & Services China 3,145 1.6
Goodpack Transportation Singapore 3,071 1.6
Shinhan Financial Banks South 3,065 1.6
Korea
Industrial & Commercial Banks China 3,016 1.6
Bank of ChinaH
Kasikornbank Banks Thailand 2,986 1.6
AIA Insurance Hong Kong 2,983 1.6
Newcrest Mining Materials Australia 2,820 1.5
110,232 58.3
Other investments 78,819 41.7
Total investments 189,051 100.0
H: H-Shares - shares issued by companies incorporated in the People's Republic
of China (`PRC') and listed on the Hong Kong Stock Exchange.
R: Red Chip Holdings - holdings in companies incorporated outside the PRC,
listed on the Hong Kong Stock Exchange, and controlled by PRC entities by way
of direct or indirect shareholding and/or representation on the board.
† MSCI and Standard & Poor's Global Industry Classification Standard.
condensed Income Statement
Year To
Six Months To Six months To 30 April
31 October 2012 31 October 2011 2012
Revenue Capital Total Revenue Capital Total Total
Return Return Return Return Return Return Return
£'000 £'000 £'000 £'000 £'000 £'000 £'000
Losses on investments
held at fair value
through
  loss or profit - (3,239) (3,239) - (14,452) (14,452) (10,169)
Losses on foreign - (199) (199) - (472) (472) (318)
currency revaluation
Income
  Overseas dividends 2,539 - 2,539 2,941 - 2,941 4,132
  Scrip dividends 109 - 109 305 - 305 484
  UK dividends 121 - 121 25 - 25 120
  Deposit interest - - - - - - 2
Gross return 2,769 (3,438) (669) 3,271 (14,924) (11,653) (5,749)
Investment management fee (155) (465) (620) (161) (483) (644) (1,253)
- note 2
Other expenses (259) (4) (263) (256) (3) (259) (481)
Return before finance 2,355 (3,907) (1,552) 2,854 (15,410) (12,556) (7,483)
costs and taxation
Finance costs - note 2 (14) (42) (56) (12) (36) (48) (88)
Return on ordinary 2,341 (3,949) (1,608) 2,842 (15,446) (12,604) (7,571)
activities before tax
Tax on ordinary (159) - (159) (247) - (247) (334)
activities
Net return on ordinary
activities after
  tax for the period 2,182 (3,949) (1,767) 2,595 (15,446) (12,851) (7,905)
Return per ordinary share
- note 3
Basic 2.2p (4.0)p (1.8)p 2.8p (16.4)p (13.6)p (8.4)p
Diluted n/a n/a n/a 2.7p (15.8)p (13.1)p (8.4)p
The total column of this statement represents the Company's profit and loss
account. The supplementary revenue and capital columns are presented for
information purposes in accordance with the Statement of Recommended Practice
issued by the Association of Investment Companies. All items in the above
statement derive from continuing operations and the Company has no other gains
or losses, therefore no statement of total recognised gains and losses is
presented. No operations were acquired or discontinued in the period.
Condensed Balance Sheet
Registered Number 03011768
at at at
31 31 30
October October April
2012 2011 2012
£'000 £'000 £'000
Fixed assets
Investments designated at fair value 189,051 165,564 170,744
Current assets
Amounts due from brokers 132 - 169
Taxation 292 291 258
VAT recoverable 13 9 9
Prepayments and accrued income 72 46 378
Cash at bank 92 229 327
601 575 1,141
Creditors: amounts falling due
  within one year
Bank overdraft (550) - -
Bank loans (11,779) (3,409) (6,286)
Amounts owed to brokers - - (413)
Accruals and deferred income (464) (424) (445)
(12,793) (3,833) (7,144)
Net current liabilities (12,192) (3,258) (6,003)
Total net assets 176,859 162,306 164,741
Capital and reserves
Share capital 11,034 9,672 9,493
Share premium 95,907 75,457 75,457
Capital redemption reserve 2,090 1,863 2,042
Special reserve 4,113 11,798 9,287
Capital reserve 59,186 59,187 63,135
Revenue reserve 4,529 4,329 5,327
176,859 162,306 164,741
Net asset value per share - note 4
Basic 165.2p 170.7p 176.6p
Diluted n/a 163.7p 168.6p
Condensed Cash Flow Statement
six six
months months
TO TO Year to
31 Oc 31 30 april
tober october
2012 2011 2012
£'000 £'000 £'000
Return before finance costs
  and taxation (1,552) (12,556) (7,483)
Adjustment for losses on investments 3,239 14,452 10,169
Adjustment for losses on currency
  revaluation 199 472 318
Tax on unfranked investment income (197) (333) (376)
Scrip dividends received as income (109) (305) (484)
Decrease in debtors 302 486 154
Increase/(decrease) in creditors 19 (46) (30)
Cash inflow from operating activities 1,901 2,170 2,268
Servicing of finance
Interest paid on bank loans (56) (48) (83)
Taxation 4 11 -
Dividends paid (2,980) (2,724) (2,724)
Capital expenditure and financial
  investment
Purchase of investments (42,216) (32,815) (57,721)
Sale of investments 20,403 36,604 61,036
Net cash (outflow)/inflow before
  financing (22,944) 3,198 2,776
Financing
Bank debt 5,408 (3,241) (372)
Shares bought back (5,174) - (2,511)
Net proceeds from conversion of
  subscription shares 22,039 1,025 1,025
(Decrease)/increase in cash in the period (671) 982 918
Cash flow from movement in debt (5,408) 3,241 372
Loss on currency revaluation (199) (472) (318)
Movement in net (debt)/funds in
  the period (6,278) 3,751 972
Net debt at beginning of period (5,959) (6,931) (6,931)
Net debt at end of period (12,237) (3,180) (5,959)
Analysis of changes in net
  (debt)/funds
Brought forward:
  Net cash/(overdraft) at bank 327 (281) (281)
  Debt due within one year (6,286) (6,650) (6,650)
Net debt brought forward (5,959) (6,931) (6,931)
Movements in the period:
  Cash (outflow)/inflow from bank (671) 982 918
  Movement on currency revaluation (199) (472) (318)
  Debt due within one year (5,408) 3,241 372
Net debt at end of period (12,237) (3,180) (5,959)
Condensed Reconciliation of movements in Shareholders' Funds
Capital
Share Share Redemption Special Capital Revenue
Capital Premium Reserve Reserve Reserve Reserve Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000
For the year ended 30
April 2012
At 30 April 2011 9,598 74,506 1,863 11,798 74,633 4,458 176,856
Final dividend for - - - - - (2,724) (2,724)
2011
Net return from - - - - (11,498) 3,593 (7,905)
ordinary activities
Exercise of (8) 8 - - - - -
subscription shares
into ordinary shares
Issue of ordinary 82 943 - - - - 1,025
shares on conversion
of subscription shares
Shares bought back and (179) - 179 (2,511) - - (2,511)
cancelled
At 30 April 2012 9,493 75,457 2,042 9,287 63,135 5,327 164,741
For the six months
ended 31 October 2012
At 30 April 2012 9,493 75,457 2,042 9,287 63,135 5,327 164,741
Interim (in lieu of - - - - - (2,980) (2,980)
final) dividend for
2012
Net return from - - - - (3,949) 2,182 (1,767)
ordinary activities
Exercise of (176) 176 - - - - -
subscription shares
into ordinary shares
Issue of ordinary 1,765 20,274 - - - - 22,039
shares on conversion
of subscription shares
Shares bought back and (48) - 48 (5,174) - - (5,174)
cancelled/held in
treasury
At 31 October 2012 11,034 95,907 2,090 4,113 59,186 4,529 176,859
For the six months
ended 31 October 2011
At 30 April 2011 9,598 74,506 1,863 11,798 74,633 4,458 176,856
Final dividend for - - - - - (2,724) (2,724)
2011
Net return from - - - - (15,446) 2,595 (12,851)
ordinary activities
Exercise of (8) 8 - - - - -
subscription shares
into ordinary shares
Issue of ordinary 82 943 - - - - 1,025
shares on conversion
of subscription shares
At 31 October 2011 9,672 75,457 1,863 11,798 59,187 4,329 162,306
Notes to the Condensed Financial Statements
1. Accounting Policy
The condensed financial statements have been prepared using the same accounting
policies as those adopted in the 2012 annual financial report, which were
prepared under the historical cost convention and are consistent with
applicable UK Accounting Standards and with the Statement of Recommended
Practice `Financial Statements of Investment Trust Companies and Venture
Capital Trusts'.
2. Management Fee and Finance Costs
Investment management fees and finance costs of borrowings are charged 75% to
capital and 25% to revenue.
3. Basis of Returns
Six months Six months Year to
to to
31 Oct 2012 31 Oct 2011 30 Apr 2012
Basic returns after tax:
Revenue £2,182,000 £2,595,000 £3,593,000
Capital £ £ £
(3,949,000) (15,446,000) (11,498,000)
Total £ £ £(7,905,000)
(1,767,000) (12,851,000)
Weighted average number of
  ordinary shares in issue
  during the period:
  - basic 97,550,904 94,355,015 94,419,356
  - diluted n/a 97,783,176 97,481,606
4. Basis of Net Asset Value (`NAV') per Ordinary Share
At 31 Oct At 31 Oct at 30 Apr
2012 2011 2012
Basic:
Ordinary shareholders' funds £ £ £
176,859,000 162,130,000 164,565,000
Subscription shareholders funds
  of 1p each - £176,000 £176,000
Total shareholders' funds £ £ £
176,859,000 162,306,000 164,741,000
Number of ordinary shares in issue 107,061,686 94,956,757 93,165,757
NAV per ordinary share 165.2p 170.7p 176.6p
Diluted:
Ordinary shareholders' funds n/a £ £
184,366,000 186,801,000
Number of ordinary shares in issue n/a 112,604,910 110,813,910
NAV per ordinary share n/a 163.7p 168.6p
5. Share Capital
Ordinary Shares of 10p each
Six months Six months to Year to
to
31 Oct 2012 31 Oct 2011 30 Apr 2012
Number of ordinary shares:
Brought forward 93,165,757 94,136,605 94,136,605
Subscription shares exercised 17,648,153 820,152 820,152
Shares bought back and cancelled (475,000) - (1,791,000)
In issue at period end 110,338,910 94,956,757 93,165,757
On 3 September 2012, the remaining 17,648,153 subscription shares were
converted into the same number of ordinary shares. Included in the 110,338,910
ordinary shares are 3,277,224 shares held in treasury following buy backs in
the six months to 31 October 2012.
Since the period end a further 1,150,000 ordinary shares have been repurchased
and cancelled for an average price of 143.73p per share.
6. Dividends
The Company paid an interim (in lieu of final) dividend of 3.2p per ordinary
share for the year ended 30 April 2012 on 1 August 2012 to shareholders on the
register on 6 July 2012.
7. Investment Trust Status
It is the intention of the Directors to conduct the affairs of the Company so
that it satisfies the conditions for approval as an investment trust company.
8. Status of Half-Yearly Financial Report
The financial information contained in this half-yearly report, which has not
been reviewed or audited by the independent auditors, does not constitute
statutory accounts within the meaning of section 434 of the Companies Act 2006.
The financial information for the half years ended 31 October 2012 and 31
October 2011 have not been audited. The figures and financial information for
the year ended 30 April 2012 are extracted and abridged from the latest
published accounts and do not constitute the statutory accounts for that year.
Those accounts have been delivered to the Registrar of Companies and include
the Report of the Independent Auditor, which was unqualified and did not
include a statement under section 498 of the Companies Act 2006.
By order of the Board
Invesco Asset Management Limited
Company Secretary
19 December 2012
DIRECTORS, INVESTMENT MANAGER AND ADMINISTRATION
Directors
David Hinde (Chairman of the Board and Remuneration and Nomination Committees)
Carol Ferguson
Tom Maier
James Robinson (Chairman of the Audit and Management Engagement Committees)
All Directors are members of the Audit, Management Engagement, Remuneration and
Nomination Committees
Manager, Secretary and Registered Office
Invesco Asset Management Limited
30 Finsbury Square, London EC2A 1AG
020 7065 4000
Company Secretarial contact: Kelly Nice
Company Number
Registered in England and Wales: No. 03011768
Registrars
Capita Registrars,
The Registry
34 Beckenham Road
Beckenham
Kent BR3 4TU
If you hold your shares directly rather than through an ISA or savings scheme,
and have any queries relating to your shareholding you should contact Capita
on: 0871 664 0300 between 9am and 5.30pm Monday to Friday (excluding Bank
Holidays). Calls cost 10p per minute plus network extras (from outside the UK:
+44 (0)208 639 3399).
Shareholders holding shares directly can also access their holding details via
Capita's website www.capitaregistrars.com or www.capitashareportal.com
Capita provide an on-line and telephone share dealing service to existing
shareholders who are not seeking advice on buying or selling. This service is
available at www.capitadeal.com or 0871 664 0364. Calls cost 10p per minute
plus network extras (From outside the UK: +44 (0)203 367 2686). Lines are open
8am to 4.30pm Monday to Friday (excluding Bank Holidays).
Invesco Perpetual Investor Services
Invesco Perpetual has an Investor Services Team available to assist you from
8.30am to 6pm each business day on 0800 085 8677.
Invesco Perpetual Investment Trust Savings Scheme and
ISA Administrators
For both the Invesco Perpetual Investment Trust Savings Scheme & ISA:
International Financial Data Services
IFDS House
St Nicholas Lane
Basildon
Essex SS14 5FS
0800 028 5544
enquiry@invescoperpetual.co.uk
Manager's Website
Information relating to the Company can be found on the Manager's website at
www.invescoperpetual.co.uk/investmenttrusts.
The contents of websites referred to in this document, or accessible from links
within those websites, are not incorporated into, nor do they form part of,
this document.
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