Final Results

Martin Currie Portfolio Investment Trust plc

Annual report
Year to 31 January 2009

A full copy of this annual report will shortly be available for downloaded at www.martincurrieportfolio.com

Financial Summary

Key data

                  As at       As at
                  31 January  31 January
                  2009        2008
Net asset value   93.1p       137.2p
per share
FTSE All-Share    2,078.9     3,000.1
index
Share price       89.8p       124.3p
Discount+         3.5%        9.4%
Dividend per      3.50p       2.60p
share*

*subject to shareholder approval
+ Figures shown are inclusive of income as per AIC guidance.  In line with
investment guidelines, the discount excluding income was 0.11% (2008: 7.8%).


Chairman's Statement

Since the launch of Martin Currie Portfolio Investment Trust in 1999, we have
experienced a variety of market conditions, including the end of the technology
boom, a downturn from 2000-2002 and five consecutive years of positive returns.
However, the past 18 months have been the most challenging many of us have ever
experienced. We witnessed a collapse in confidence in the global financial
system and a sharp fall in equity markets.

As well as being exceptionally volatile, markets around the world became highly
correlated across countries and sectors, leading to a lack of distinction
between 'good' and 'bad' investment opportunities. In short, almost everything
fell in 2008.

After the indiscriminate selling in 2008, we are expecting well-financed
businesses with strong balance sheets, reliable cash flows and robust earnings
to be rewarded at the expense of companies with high levels of debt and poor
visibility of earnings. We believe this environment will support once again our
manager's fundamental stock-picking approach but timing remains an issue.

Performance
In the 12-month period under review the company's share price fell by 27.8%, a
substantial decline after a period of sustained positive returns going back to
2004. The FTSE All-Share index fell by 30.7% over the same period, and the
company's net asset value per share by 32.1%.

The chart below shows the share price total returns (with income reinvested)
against the benchmark index over the past five years. We have also included each
discrete 12-month period,
illustrating the strong performance that preceded the most recent correction.

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

            2009   2008   2007   2006    2005
Martin    (26.0%)  +8.0%  +9.8% +32.5%  +11.1%
Currie
Portfolio
share
price
FTSE All- (27.8%) (3.6%) +13.2% +23.9%  +15.3%
Share
index
Martin    (31.9%) +7.6%  +11.1% +31.6%  +14.3%
Currie
Portfolio
net asset
value per
share


5 year share price return

FTSE              +12.7%
All-Share
Index
Martin Currie     +29.3%
Portfolio share
price
Martin Currie     +22.9%
Portfolio net
asset value per
share


Source: Fundamental Data

Dividends
In this period, dividend income rose significantly and we earned a higher level
of interest from cash on deposit.  As a result, we are paying a significantly
larger dividend this year than we did last year.  However, corporate dividends
have come under severe pressure recently, particularly in the UK's traditionally
higher yielding financial sector and deposit rates have fallen to record low
levels.  Income may be challenged in years ahead.

The board's recommendation is therefore a final dividend of 2.5p, which,
together with the interim dividend of 1.0p, brings total dividends for the year
to 3.5p, an increase of 34.6% over last year.  Subject to approval by the
company's shareholders at its Annual General Meeting, the final dividend will be
paid on 19 June 2009 to shareholders on the register as at 22 May 2009.

Maintaining a stable discount
When the company was launched in March 1999, a right to redeem shares every five
years was built into its Articles of Association. The second opportunity to
redeem follows this year's AGM.

Documents relating to this are included with this annual report.

Discounts to net asset value (NAV), and the volatility of these discounts,
remain a feature of many investment trusts. Your board believes that the
discount volatility is a distraction for investors and management; we introduced
redemption opportunities and have actively used share buy-backs to reduce the
absolute level of discount to single figures as a percentage of NAV and to
reduce discount volatility.

The discount for the company has been significantly lower than the average for
the Association of Investment Companies' Global Growth sector. Given the sharp
fall in equities over the past twelve months, your board and managers believe
there is real long-term value in our portfolio. To illustrate, the fall in
markets occurred in the financial year to 31 January 2003, when the share price
of Martin Currie Portfolio fell by 28.3%. In the following year it recovered by
36.9%, and went on to record a further 5 years of positive returns.

Directors do not intend to offer their own shares for redemption.

Prospective refund of VAT on management fees
As I mentioned in both the 2008 annual and interim reports, the board has been
pursuing a claim to recover previously paid VAT on management fees. Negotiations
with HM Revenue and Customs ('HMRC') have now progressed, resulting in a claim
for £1,383,000 being submitted.

The board is of the opinion that the certainty of recovery is now such that the
amount should be included in the annual report and accounts. For the VAT charged
on management fees, the amount has been split two-thirds to capital and one-
third to revenue, with the VAT on the performance fee being allocated wholly to
capital to reflect the manner in which it was originally charged. In the revenue
account this adds 0.26p to the amount available for distribution to
shareholders.

Looking ahead
It is likely to remain a difficult period for stock markets. However, we are
long-term investors; as our manager, Tom Walker, says in his report, we see
substantial embedded value in our existing quoted and private equity fund
portfolio. Even if current prices do not currently differentiate good from poor
quality, we believe that when the market does begin to return to some measure of
normality, our investments will disproportionately benefit.

Thank you for your continued support; please contact me if you have any
questions regarding your company. Contact details can be found on the back of
this report.

Peter Berry
chairman


Manager's Review

Performance
As the chairman indicates in his review, this has been a very disappointing 12
months for investors. After five consecutive years of positive returns, the
trust's net asset value per share fell by 31.9%, on a total return basis, in the
period under review. The share price fared better, falling by 26.0%, while the
benchmark index fell by 27.8%, both on a total return basis.

In the UK market, our performance slightly lagged the FTSE All Share index.
While we benefited from our limited exposure to banks, we suffered from being
underweight in several of the index heavyweights that performed better in this
period, specifically AstraZeneca and Royal Dutch Shell.

Our overseas investments outperformed, led by European healthcare provider,
Fresenius Medical Care, US companies such as WalMart and Southern Company and
Far Eastern holdings, TSMC and Nintendo. The strength of overseas currencies
relative to sterling during the year enhanced returns from our international
portfolio.

Private equity, for so many years a strong contributor to overall performance,
suffered from a dramatic correction in valuations.  Our private equity portfolio
fell 65% in the year, detracting 6%
from relative performance against the benchmark.

Review
The financial crisis has spread rapidly around the world over the past year.
Because of their pervasive nature, the bursting of the bubbles in the housing
and credit markets has had a more
profound impact than the collapse of technology stocks at the start of this
decade.

Housing markets have already fallen sharply, and the process by which companies
and households reduce their debt levels, and through which banks identify debt
that will never be
repaid, is likely to take some years. Unemployment has risen sharply and will go
on doing so for some time.

Despite the vast amounts of capital that governments have injected into
financial institutions, banks remain reluctant to lend, while customers,
understandably sensitive to their job
security, are very wary of borrowing. This paralysis means that the banking
sector's particular problems are going to be long lived and that the eventual
recovery in economic growth will be
slower than would be normal after a recession.

United Kingdom
The UK economy contracted in the fourth quarter of 2008, and will decline
further in 2009, confirming a full-blown recession.  Retail sales and trade data
bear this forecast out and, in recent weeks, unemployment has soared to 6.3%.
The Bank of England has cut base interest rates to 0.5% (1.5% at the company's
fiscal year end) and bank deposit rates have collapsed. So far, lower interest
rates have had no impact on the property market where volumes are at dire levels
and prices continue to fall.

The particular importance of the banking industry to the UK economy has become
very evident in recent months. Any economy relies on its banks to function, but
London's status as an international financial centre means that employment,
exports and tax revenues are especially concentrated in this sector. Partly in
recognition of this, the International Monetary Fund has identified the UK
economy as being one of the worst placed to weather the current economic
downturn. We have sold out of domestic UK banks altogether as we fear their
drift towards nationalisation, or a status that dilutes their value to
shareholders to almost nothing. We continue to own HSBC, an international bank
that we consider the exception, and with the potential to gain substantial
market share from other, more troubled financial institutions.

The earnings of a large part of the UK equity market are driven by the global
economy, and it is here we see a better outlook.  Our focus within the portfolio
remains on identifying the best global companies, whether listed in the UK or
abroad. The trend towards globalisation has made the distinction between the UK
and international companies less and less relevant over the past decade.
However, we need to watch that the global recession does not lead to an era of
greater protectionism. We believe world leaders will avert such a reversal;
indeed there has already been an attempt by the UK government to clarify that
the statement `British jobs for British workers' does not mean what it appears
to mean!

So what is the focus of our UK listed portfolio? We believe that resources
companies, such as BHP Billiton and BG Group, are among the best in the world in
their field; industrials companies
BAE Systems, Weir Group and Babcock International have a global reach; Morrisons
and Tesco, though more focused on the domestic UK economy, are less vulnerable
to economic pressure
than most companies.

Another interesting category of company is those that have been severely de-
rated by the market, but are still very attractive on a long-term basis. These
include Intercontinental Hotel Group and Next, two stocks that have been
hammered over the past 12 months, but are still strong businesses. Their
profitability in 2009 will not be a sensible basis for assessing their real long
term value, but as long as we feel confident that they will survive, we are
focusing on their long-term earnings potential.

International
The past 12 months has seen enormous fluctuations in currencies, and it is this
that largely differentiated the returns generated by different regions. Japan is
the most extreme example of this. In yen terms, the Japanese market fell 41% but
because the yen was such a strong currency, Japan fell just 4% in sterling
terms. Elsewhere, Europe and Asia were very weak, although the USA, also buoyed
by currency strength, fared less badly for sterling investors.

The current crisis in property and credit markets has been blamed on the USA.
Actually, it is a truly global, albeit principally 'western' problem. The USA
was just the country where it first
became apparent. The Federal Reserve has been the most determined central bank
to stay ahead of the crisis, and has now moved US interest rates effectively to
zero. The US
government has also taken enormous steps to reinvigorate the economy, both
before and since President Obama took office.  Significant challenges remain,
but we believe the USA will emerge from recession within the next 12 months.

China also has a role to play in turning the world economy around. It has
generated huge surpluses over recent years and now needs to stimulate growth
domestically to substitute
for those struggling export markets. There are encouraging signs early in 2009
that the Chinese authorities are taking some of the necessary steps.

We have further downsized our already limited exposure to the international
financial sector, selling Axa, Orix and Anglo Irish Bank. New purchases include
global fertilizer giant, Potash Corporation of Saskatchewan and low cost
retailer WalMart.

Private equity
The debt crisis has sucked liquidity from private equity markets.  Deals cannot
be completed so, where commitments to make further investments have been made,
investors are having to
restructure, thereby suffering significant penalties or dilution. As a result,
private equity valuations have fallen precipitately.  Because financing will
involve much lower debt in future we do not believe that private equity returns
will ever achieve some of the lofty heights of recent years.  However, in the
next few months and years, there will be very attractive opportunities for
private equity investors who will provide capital on a much less competitive
basis.

We believe there is substantial value in our private equity portfolio but we may
have to be patient to see it realised.

Outlook
Confidence is the missing ingredient today. However much stimulation economies
receive from central banks and governments, growth will not resume until people
believe that the future justifies activity, whether that is a company investing
in productive capacity or a family buying a new car.

History tells us that equity markets will recover before the economy does. Just
as they fell before the full horrors of the economic downturn became headline
news, equity markets could bounce quite substantially, even while the economic
backdrop continues to deteriorate.

By focusing on strong, high-quality companies, generally global leaders in their
fields that are gaining market share, we aim to be positioned so that our
shareholders participate fully when the recovery comes.

Now is not the time to be selling equities.


Tom Walker



Portfolio Summary

Portfolio distribution as at 31 January

By Region       2009   2008

United          59.7%  56.1%
Kingdom

International*  33.9%  31.4%
al*

Private         6.4%   12.5%
Equity

              100.0% 1 00.0%


*International    2009   2008

North America     16.3%  12.9%

Europe (ex UK)    8.6%   9.6%

Global Emerging   3.7%   4.0%
Markets

Japan             2.9%   2.9%

Developed Asia    2.4%   2.0%



By Sector           2009         2009
(excluding cash     Company      FTSE All
and private equity)              Share
                                 Index
Oil and gas         21.7%        21.6%
Consumer services   12.7%        10.1%
Financials          11.9%        18.1%
Healthcare          10.8%        10.1%
Technology          10.0%        1.1%
Industrials         10.0%        7.0%
Consumer goods      9.3%         13.3%
Basic Materials     8.0%         6.7%
Utilities           3.6%         4.7%
Telecommunications  2.0%         7.2%
                    100.0%       100.0%




By Asset Class   2009   2008
(including cash
and borrowings)
Equities         94.7%  91.3%
Cash             5.3%   13.6%
Less borrowings  -      (4.9%)
                 100.0% 100.0%




Largest          2009      2009   2008     2008
Holdings         Market    % of   Market   % of
                 Value     total  value    total
                 £000      portfo £000     portfo
                           lio             lio
BP               10,341    8.8    11,126   6.4
GlaxoSmithKline  8,196     7.0    7,944    4.6
HSBC Holdings    6,777     5.8    9,376    5.4
F&C Private      6,470     5.5    17,133   9.9
Equity Trust*
BG               5,166     4.4    8,941    5.2
British          4,759     4.0    4,496    2.6
American
Tobacco
BHP Billiton     4,387     3.7    7,826    4.5
Royal Dutch      4,175     3.5    4,392    2.5
Shell
Tesco            3,332     2.8    3,879    2.2
Morrison (W)     2,954     2.5    -        -
Supermarkets

*Equity and Equity `A' shares combined


               Sector        Market       % of
                             Value £      total
                                          portfolio

Financials                   10,952,274   9.3

HSBC Holdings  Banks         6,777,451    5.8

Prudential     Life          1,309,201    1.1
               Insurance

Amlin          Nonlife       1,215,971    1.0
               Insurance

Land           Real Estate   840,466      0.7
Securities

MAN Group      General       809,185      0.7
               Finance


Oil and Gas                  19,682,453   16.7

BP             Oil and Gas   10,341,399   8.8
               producers

BG Group       Oil and Gas   5,166,044    4.4
               producers

Royal Dutch    Oil and Gas   4,175,010    3.5
Shell          producers


Healthcare                   8,195,650    7.0

GlaxoSmithKli  Pharmaceutic  8,195,650    7.0
ne             als &
               biotechnolog
               y

Basic                        7,577,481    6.4
Materials

BHP Billiton   Mining        4,387,143    3.7

Anglo          Mining        2,367,433    2.0
American

Xstrata        Mining        822,905      0.7


Consumer                     4,758,968    4.0
Goods

British        Tobacco       4,758,968    4.0
American
Tobacco


Telecommunications           2,153,675    1.8

BT             Fixed Line    2,153,675    1.8
               telecoms


Consumer                     9,552,798    8.1
Services

Tesco          Food and      3,331,668    2.8
               Drug
               retailers

Morrison (W)   Food and      2,954,256    2.5
Supermarkets   Drug
               retailers

Intercontinen  Leisure and   1,524,191    1.3
tal Hotels     Hotels

Next           General       1,292,323    1.1
               Retailers

Marstons       Beverages     450,360      0.4


Industrials                  5,298,080    4.5

Babcock        Support       2,029,571    1.7
International  services

BAE Systems    Aerospace &   1,864,694    1.6
               defence

Weir           Industrial    988,857      0.8
               Engineering

Wolseley       Support       414,958      0.4
               Services


Utilities                    2,287,612    1.9

Scottish &     Electricity   2,287,612    1.9
Southern
Energy

Total United                 70,458,991   59.7
Kingdom
Investments


International  Country       Market       % of
Portfolio                    value £      total
                                          portfolio

North America                19,110,008   16.3

Walmart        United        2,347,092    2.0
               States
CVS            United        2,061,984    1.7
               States
Southern       United        1,735,304    1.6
Company        States
Anadarko       United        1,595,337    1.4
Petroleum      States
Cisco          United        1,493,686    1.3
               States
Ultra          United        1,463,843    1.2
Petroleum      States
Wellpoint      United        1,347,541    1.1
               States
Potash         Canada        1,295,566    1.1
Corporation
of
Saskatchewan
Amdocs         United        1,234,065    1.0
               States
Petro-Canada   Canada        1,175,494    1.0
MEMC           United        1,135,048    1.0
Electronics    States
Apple          United        1,131,173    1.0
               States
Foster         United        1,079,989    0.9
Wheeler        States
Blackstone     United        13,886       -
               States

Europe (ex                   10,171,588   8.6
UK)
Fresenius      Germany       2,426,399    2.1
Medical
Annheuser-     Belgium       2,411,557    2.0
Busch Inber
ABB            Switzerland   1,437,942    1.2
Tecnicas       Spain         1,342,547    1.1
Reunidas
Tognum         Germany       907,724      0.8
National Bank  Greece        856,548      0.7
of Greece
Cintra         Spain         788,961      0.7
Concesiones
De
Infraestructu
ras De
Transport

Global                       4,418,270    3.7
Emerging
Markets
Taiwan         Taiwan        1,768,074    1.5
Semiconductor
PT Astra       Indonesia     1,341,448    1.1
International
Infosys        India         1,308,748    1.1
Technologies

Japan                        3,406,997    2.9
Nintendo       Japan         1,798,089    1.5
Mitsui &       Japan         1,608,908    1.4
Company

Developed                    2,869,438    2.4
Asia
China Mobile   China         1,522,889    1.3
New World      Hong Kong     1,346,549    1.1
Development

Total                        39,976,301   33.9
Overseas
Investments


Private        Country       Market       % of
Equity                       Value £      total
                                          portfolio
F& C Private   UK            4,604,017    3.9
Equity
`Ordinary'
F & C Private  UK            1,865,866    1.6
Equity
`Restricted'
Candover       UK            833,040      0.7
Investments
SVG Capital    UK            180,320      0.2

Total Private                7,483,243    6.4
Equity
Investments

Total                        117,918,535  100.00
portfolio


Risks and Uncertainties

Risk and mitigation
The board closely monitors the risks of the company. The board carries out a
risk workshop as part of its annual strategy meeting and has identified the
following as key risks to the company. The board has also implemented specific
mitigating measures to reduce the probability and impact of each risk to the
greatest extent possible.

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 was last tested in November 2008 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 Rules. The board relies on the
services of its company secretary and its professional advisers to ensure
compliance.  Details of how the board monitors the services provided by Martin
Currie and the key elements designed to provide effective internal control are
included within the Internal Control section of the Corporate Governance Report.

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.  At the year end bank borrowings
were nil. In accordance with the investment policy the limit on gearing is 20%
of net assets. The company's investment portfolio is not directly exposed to
interest rate risk and there are no fixed rate securities held as at 31 January
2009 (2008:nil).

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.

Counterparty risk - Martin Currie Investment Management monitors counterparty
relationships on behalf of Martin Currie Portfolio Investment Trust plc. This
process includes identifying major counterparties, mapping exposure and
analysing the risks through the company's risk, compliance, dealing, operations
and middle office teams. The aim is to enable the board of Martin Currie
Portfolio Investment Trust to determine an appropriate level of counterparty
risk exposure, and to diversify or mitigate this, as required. This process is
subject to continual monitoring and review any recommendations made to the
board.


Directors' Responsibility
Company law requires the directors to prepare accounts for each financial year
which give a true and fair view of the state of affairs of the company as at the
end of the year and of the net return for the year. In preparing those accounts,
the directors are required to:
_ select suitable accounting policies and then apply them consistently;
_ make judgements and estimates that are reasonable and prudent; and
_ state whether applicable accounting standards have been followed, subject to
any material departures disclosed and explained in the accounts.

The directors confirm that the accounts comply with the above requirement.

The directors are responsible for ensuring that proper accounting records are
kept which disclose with reasonable accuracy at any time the financial position
of the company and enable them to ensure that the accounts comply with the
Companies Act 1985 and 2006. They are also responsible for safeguarding the
assets of the company and hence for taking reasonable steps for the prevention
and detection of fraud and other irregularities.

The accounts are published on the www.martincurrieportfolio.com website, which
is
maintained by the company's investment manager. The maintenance and integrity of
the website maintained by Martin Currie is, so far as it relates to the company,
the responsibility of Martin Currie.

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 give
a true and fair view of the assets, liabilities, financial position and net
return of the company.

Furthermore, each director certifies 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.


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



Income Statement

                   Year to 31 January       Year to 31 January
                   2009                     2008

             Notes Revenue  Capital Total   Revenue  Capital  Total
                   £000     £000    £000    £000     £000     £000

Net (losses)   8     -     (62148) (62148)    -       187      187
/ gains on
investments
Net currency  12     -         48      48     -        96       96
gains
Income         3   6003       349    6352   5125    12269    17394
Investment         (266)     (531)   (797)  (345)    (690)   (1035)
management
fee
VAT          16     350      1033    1383     -         -       -
recoverable
on
Investment
management
fee
Performance          -         -       -      -     (1862)   (1862)
fee
Other        6     (448)       -     (448)  (474)       -     (474)
expenses
Net return         5639    (61249) (55610)  4306    10000    14306
before
finance
costs and
taxation
Finance      4       (3)       (8)    (11)  (186)   (358)     (544)
costs: debt
Finance      5    (5511)    61073   55562  (4028)  (10403)  (14431)
costs:
shareholders
' funds
Finance      5        -       184     184      -      761      761
costs:
repurchase
of shares
Net return          125         -     125     92        -       92
on ordinary
activities
before
taxation
Taxation on  7     (125)        -    (125)   (92)       -     (92)
ordinary
activities
Return                -         -       -      -        -       -
attributable
to
shareholders
Returns per           -         -       -      -        -       -
ordinary
share


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 year.
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.


Balance Sheet

                    As at 31         As at 31
                    January 2009     January 2008

               Note  £000   £000     £000    £000

Non-current
assets
Investments at
fair value
through profit
or loss
Listed on the               77,943            119,189
stock exchange
in the UK
Listed on                   39,976             54,444
stock
exchanges
abroad
               8           117,919            173,633

Current Assets
Debtors and    9     1,704                300
Prepayments
Cash at bank   10    6,544             26,020

                     8,248             26,320

Creditors
Amounts        11   (1,443)           (12,311)
falling due
within one
year

Net current                  6,805             14,009
assets
Net Asset      5           124,724            187,642
Value
attributable
to
shareholders

Net Asset                    93.1p              137.2p
Value per
ordinary share


Statement of Cash Flow

               Note    Year to 31       Year to 31
                       January 2009     January 2008

                        £000   £000     £000    £000
Net cash       13             2,484           16,379
inflow from
operating
activities

Servicing of
finance
Finance Cost:           (123)         (475)
debt
Finance Cost:         (4,220)       (3,441)
Shareholders
funds
Net Cash                     (4,343)          (3,916)
outflow from
servicing of
finance
Capital
Expenditure
and Financial
Investment
Purchase of          (31,188)      (41,582)
investments
Sales of              25,905        62,479
investments
Net Cash                     (5,283)          20,897
(outflow)/infl
ow from
capital
expenditure
and financial
investment
Net Cash                     (7,142)          33,360
(outflow)/infl
ow before
financing

Financing

Repurchase of                (2,952)          (8,985)
ordinary share
capital
Short term     14            (9,471)            (492)
bank
borrowings

(Decrease)/    14           (19,565)          23,883
increase in
cash



Notes to the Financial Statements
1 Accounting policies
a) Basis of preparation - The financial statements have been prepared in
accordance with 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. They have also been prepared on
the assumption that approval as an investment trust will continue to be granted.

The Company continues to adopt the going concern basis in the preparation of the
annual financial statements.

When the company was launched in 1999, a right to redeem shares every five years
was built into its Articles of Association. The next such opportunity to redeem
takes place on 31 May 2009, following the AGM on 20 May 2009.  The Board is
satisfied that the likelihood of large scale redemptions is sufficiently low
such that there is no material uncertainty and the use of the going concern
basis of accounting therefore remains appropriate.

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. Stock 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 derecognised
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.

The valuation of forward currency contracts are included on the balance sheet.
Periodic changes to these valuations are recognised as unrealised gains and
losses in the income statement.

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

g) Transactions in foreign currencies are recorded at the rate ruling at the
date of the transaction.  Monetary assets and liabilities denominated in foreign
currencies are retranslated at the rate of exchange ruling at the balance sheet
date. Any gain or loss arising from a change in exchange rate subsequent to the
date of the transaction is included as an exchange gain or loss in the capital
reserve or the revenue account depending on whether the gain or loss is of a
capital or revenue nature.

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) Capital reserve - Gains or losses on realisation of investments and changes
in fair values of investments still held, are transferred to the capital
reserve.  The capital element of the management fee and relevant finance costs
are charged to this reserve.  Any associated tax relief is also credited to this
reserve.

Share buy backs are funded through the special distributable reserve.

VAT recovery - VAT recovered will be recognised with the same split by which
they were paid, ie management fees two thirds capital and one third revenue.
Performance fees wholly capital.

k) 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. 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 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.

l) Shareholders funds - Under FRS25 "Financial instruments: Disclosure and
presentation", when shares are issued, any component that creates a financial
liability in the balance sheet is 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.

                      Year to      Year to
                      31           31
                      January      January
                      2009         2008
Returns and Net
Asset Value

The Return and Net
Asset Value per
ordinary share are
calculated with
reference to the
following figures:

Revenue Return
Revenue Return             -           -
attributable to
ordinary
shareholders
Add back finance    £5,511,000  £4,028,000
costs: shareholders
funds
                    £5,511,000  £4,028,000

Weighted average   135,792,258 142,254,259
number of shares in
issue during period

Return per ordinary      4.06p       2.83p
share
Capital return
Capital return              -           -
attributable to
ordinary share
holders
(Deduct)/add back (£61,073,000)£10,403,000
finance costs:
shareholders funds
Deduct finance       (£184,000)  (£761,000)
costs: gain on
repurchase of
shares
                  (£61,257,000) £9,642,000


Weighted average   135,792,258 142,254,259
number of shares in
issue during year
Return per ordinary    (45.11p)      6.78p
share
Total return
Total return per       (41.05p)      9.61p
ordinary share

Net asset value per     As at 31       As at 31
share                   January        January
                        2009           2008
Net assets              £124,720,000   £187,642,000
attributable to
shareholders
Number of shares in      133,990,458    136,716,072
issue at the year
end
Net asset value per            93.1p         137.2p
share



3.

                   Year to   Year to
                   31        31
                   January   January
                   2009      2008
                   £000      £000
Income
From listed
investment
UK equities        4,235     4,092
International      1,133     861
equities
Stock dividends    164       1

Other income
Interest on        449       171
deposits
Underwriting       22        -
commission
                   6,003     5,125


In addition, during the year ended 31 January 2009, the company received capital
dividends of £312,000 and £37,000.  These related to capital distributions from
F&C Private Equity Trust and ABB Limited respectively. During the year to 31
January 2008, the company received a capital dividends of £11,273,000, £692,000
and £304,000.  These related to capital distributions from F&C Private Equity
Trust, Intercontinental Hotels and MAN Group plc respectively.

4.

          Year to                    Year to
          31 January 2009            31 January 2008

          Revenue  Capital  Total    Revenue  Capital  Total
          £000     £000     £000     £000     £000     £000

Finance
Costs:
debt
Interest        3       8      11       186       358    544
payable
on bank
loans and
overdraft
s
                3       8      11       186       358    544


5.

             Year to                  Year to
             31 January 2009          31 January 2008
             Revenue  Capital  Total  Revenue Capital   Total
             £000     £000     £000   £000    £000      £000


Finance
Costs:
shareholders
' funds
Year ended        -        -      -     2,727       -   2,727
31 January
2007 - final
dividend of
1.90p
Year ended        -        -      -       714       -     714
31 January
2008 -
interim
dividend of
0.50p
Year ended     2,871       -  2,871         -       -       -
31 January
2007 - final
dividend of
2.10p
Year ended     1,356       -  1,356         -       -       -
31 January
2009 -
interim
dividend of
1.00p
Unclaimed        (7)       -    (7)         -       -       -
dividends
refunded
Movement in    1,291 (61,073)(59,782)     587   10,403  10,990
net assets
attributable
to
shareholders
               5,511 (61,073)(55,562)   4,028   10,403  14,431



Set out below are the total dividends payable in respect of the financial year,
which forms the basis on which the requirements of Section 842 of the Income and
Corporation Taxes Act 1988 are considered.


                              2009         2008
                              £'000        £'000
Interim dividend of 1.00p for 1,356        714
the year ended 31 January
2009 (2008: 0.50p)
Proposed final dividend of    3,350        2,871
2.50p for the year ended 31
January 2009 (2008: 2.10p)
                              4,706        3,585
Movements in net assets
attributable to shareholders
Closing net assets            124,724      187,642
attributable to shareholders
Less: opening net assets      (187,642)    (186,398)
attributable to shareholders
                              (62,918)     1,244
Cost of repurchase of         2,952        8,985
ordinary shares in year
Gain on repurchase of         184          761
ordinary shares in year
                              (59,782)     10,990


6.

Other expenses                2009         2008
                              £'000        £'000
Auditors' remuneration -      23           19
audit services
Auditors' remuneration - non- 1            -
audit services
Bank charges (including       29           37
custody fees)
Directors' fees               127          120
Irrecoverable VAT             26           22
Legal fees                    9            8
Marketing                     21           53
Printing and postage          35           31
Registration fees             24           19
Secretarial fee               64           61
Other                         89           104
                              448          474

Performance Fee
The performance fee for the year ended 31 January 2009 was nil (2008:
£1,862,000).

7.


            Year to            Year to
            31 January 2009    31 January 2008

            Reven  Capi  Tota  Reven  Capi  Tot
            ue     tal   l     ue     tal   al
            £000   £000  £000  £000   £000  £00
                                            0
Taxation
on
ordinary
activities
Foreign     125    -     125   92     -     92
Tax

As at 31 January 2009, the company had unutilised management expenses of £16.5
million (2008: £17.8 million), non-trading loan relationship deficit of
£4,778,000 and eligible unrelieved foreign tax of £495,000 carried forward. This
has been generated because such a large part of the company's income is derived
from dividends from UK companies. The company is not expected to generate
taxable income in a future period in excess of deductible expenses for that
period and, accordingly, is unlikely to be able to reduce future tax liabilities
by offsetting these losses.

Due to the company's status as an investment trust and the intention to continue
to meet the conditions required to obtain approval in the foreseeable future,
the company has not provided deferred tax on capital gains and losses arising on
the revaluation or disposal of investments.

The corporation tax rate was 30% until 31 March 2008 and 28% from 1 April 2008
giving an effective rate of 28.33%. The tax charge for the year differs from the
charge resulting from applying the standard rate of corporation tax in the UK
for an investment trust company. The differences are explained below.

                              2009         2008
                              £'000        £'000
Net return before taxation    (55,621)     13,762

Corporation tax at effective  (15,759)     4,129
rate of 28.33% (2008: 30%)

Adjustments:
UK dividends not taxable      (1,246)      (1,228)
Losses/(gains) on investments 17,609       (56)
not taxable
Capital distributions not     (99)         (3,681)
taxable
Currency gains not taxable    (14)         (29)
Movement in taxable accrued   9            (12)
income
Overseas tax written off      125          92
Excess management and loan    (500)        877
expenses

Current year tax charge       125          92



8.

Investments           As at 31   As at 31
                      January    January
                      2009       2008
                      £000       £000
Opening valuation     173,633    195,332
Opening unrealised    (30,230)   (40,623)
gains
Opening Cost          143,403    154,709
Purchases at cost     32,414     40,593
Disposal proceeds     (25,980)   (62,479)
Less: net             (6,163)    10,580
(loss)/profit on
disposal of
investments
Disposal at cost      (32,143)   (51,899)
Closing cost          143,674    143,403
Investment holding    (25,755)   30,230
(losses)/gains
Valuation as at 31    117,919    173,633
January


(losses)/gains on     As at 31   As at 31
investments           January    January
                      2009       2008
                      £000       £000
Net (loss)/profit on  (6,163)    10,580
disposal of
investments
Net loss on           (55,985)   (10,393)
revaluation of
investments
                      (62,148)   187


The transaction cost in acquiring investments during the year were £139,000
(2008:£139,000). For disposals, transaction costs were £32,000 (2008: £122,000).

During the year there was a write down in the book cost of F&C Private Equity
Trust A shares of £153,000 (2008: £5,936,000) and ABB Limited shares of £9,000
(2008: £nil) which were reflected in the realised net loss of £6,163,000 (2008:
net profit £10,580,000).  These were as a result of capital repayments made in
June and July 2008 respectively.


9.

                      2009       2008
                      £000       £000
Debtors: amounts
falling due within
one year
Dividends receivable  136        212
Amount due from       75         -
brokers
Taxation recoverable  39         13
Other debtors         1,454      75
                      1,704      300

Other debtors includes VAT recoverable of £1,383,000 (2008: nil) on management
and performance fees previously paid by the company as detailed in note 16.



10.

                      2009       2008
                      £000       £000
Cash at bank
Sterling bank         6,544      26,020
account
                      6,544      26,020


11.

Creditors             2009       2008
                      £000       £000
Amounts falling due
within one year
Due to brokers        1,226      -
Due to Martin Currie  167        2,650
Other creditors       50         231
Overdrawn US Dollar   -          158
bank account
Bank borrowings       -          9,272
                      1,443      12,311

Information with regard to transactions with related parties is provided in the
Report of the Directors for interest risk analysis in respect of debtors and
creditors refer to note 17.

12.

                Total     Called up  Capital     Special          Capital   Revenue
                £000      ordinary   redemption  distributable    reserve   reserve
                          share      reserve     reserve          £000      £000
                          capital    £000        £000
                          £000
Memorandum
- Net asset
value
attributable
to shareholders
As 31       187,642       6,835      9,182       152,090          11,820    7,715
January
2008
Ordinary     (2,952)       (136)       136        (2,952)              -        -
shares
bought back
during the
period
Losses on    (6,163)          -          -             -          (6,163)       -
realisation
of
investments
at fair
value
Realised         48           -          -             -              48        -
currency
gain during
the period
Movement in (55,985)          -          -             -         (55,985)       -
fair value
losses
Capitalised    (539)          -          -             -            (539)       -
expenses
Capital         349           -          -             -             349        -
dividends
received
VAT           1,033           -          -             -           1,033        -
recoverable
on expenses
Net revenue   5,511           -          -             -               -     5,511
Dividends    (4,220)          -          -             -               -    (4,220)
paid
Reallocation of   -           -          -             -           1,291    (1,291)
shareholders
funds
As at 31    124,724       6,699      9,318       149,138         (48,146)    7,715
January
2009



Called up share       As at 31     As at 31
capital               January      January
                      2009         2008
                      £000         £000
Ordinary shares 5p
Authorised            £50,000,000  £50,000,000

Ordinary shares in    136,716,072  143,527,886
issue at beginning
of the year
Ordinary shares       (2,725,614)  (6,811,814)
bought back during
the year
Ordinary shares in    133,990,458  136,716,072
issue at end of the
year


The total cost of share buybacks for the year to 31 January 2009 was £2,952,000
(2008: £8,985,000)

Called up share       Realised   Investment  Total
capital               capital    holding     capital
                      reserve    gains/(loss reserve
                      £000       es) £000    £000
At 31 January 2008    (18,410)   30,230      11,820
Losses on             (6,163)    -           (6,163)
realisation of
investments at fair
value
Movement in fair      -          (55,985)    (55,985)
value losses
Realised currency     48         -           48
gain during the year
Capitalised expenses  (539)      -           (539)
Capital dividends     349        -           349
received
VAT recoverable on    1,033      -           1,033
capital expenses
Transfer from         1,291      -           1,291
revenue reserve
At 31 January 2009    (22,391)   (25,755)    (48,146)


The above split in capital reserve is shown in accordance with provisions of the
Statement of Recommended Practice `Financial Statements of Investment Trust
Companies and Venture Capital Trusts'.







13.

               2009           2008
               £000           £000
Reconciliatio
n of net
return before
finance costs
and taxation
to net cash
inflow from
operating
activities
Return on      (55,610)       14,306
ordinary
activities
before
finance costs
and taxation
Adjustments
for:
Losses/(gains  62,148         (187)
) on
investments
Effect of      (48)           (96)
foreign
exchange
rates
Increase in    (1,303)        (12)
dividends
receivable
and other
debtors
(Decrease)/in  (2,552)        2,464
crease in
other
creditors and
other
accruals
Overseas       (151)          (96)
withholding
tax suffered
Net cash       2,484          16,379
inflow from
operating
activities


14.

            As at 31    Cash Flow   Exchange     As at 31
            Jan 2008    £000        Movement     Jan 2009
            £000                    £000         £000
Cash at     26,020      (19,718)    242          6,544
bank and
in hand
Overdrawn   (158)       153         5            -
US Dollar
Bank
Account
Bank        (9,272)     9,471       (199)        -
borrowings
- falling
due within
one year

Net         16,590      (10,094)    48           6,544
cash/(debt
)


            As at 31    Cash Flow   Exchange     As at 31
            Jan 2007    £000        Movement     Jan 2008
            £000                    £000         £000
Cash at     2,065       24,025      (70)         26,020
bank and
in hand
Overdrawn   (18)        (142)       2            (158)
US Dollar
Bank
Account
Bank        (9,928)     492         164          (9,272)
borrowings
- falling
due within
one year

Net         (7,881)     24,375      96           16,590
cash/(debt)


In the year to 31 January 2008, the trust had a revolving loan facility of up to
£30,000,000 with Lloyds TSB Scotland plc.  The trust had to ensure that its
total assets at all times equaled or exceeded 200% of the borrowing of the
borrower and its subsidiaries.  The loan facility has since lapsed and the trust
has no borrowing as at 31 January 2009.


15.  Related party participating interests

Participat  Principal   Description  Issued       Proportion
ing         activity    of           capital      of class
Interests               shares       £000         held %
                        held
F&C         Investment  Restricted    671          10.8%
Private     trust       voting (A)
equity                  Ordinary      723          46.4%
trust plc               (B)
as at 31
January
2009

Mr Kinloch Anderson is a director of F&C Private Equity Trust plc.


16.  VAT recoverable
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 manager has submitted a claim to HMRC, which has been agreed in principle,
to refund £1,383,000 to the company for VAT charged on investment management
fees for the period 1 April 2001 to 30 September 2007 and this has been included
in these financial statements. This
repayment has been allocated to capital and revenue in line with the accounting
policy of the company for the periods in which the VAT was charged. The reclaim
for previous periods and the timescale for receipt are at present uncertain and
the company has taken no account in these
financial statements of any such repayment.

17 Derivatives and other financial instruments
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 company also has the ability to enter into derivative transactions in the
form of forward foreign currency contracts, futures and options, for the purpose
of managing currency and market risks arising from the company's activities
though there has been no exposure to such investments during the year.

The main risks the company faces from its financial instruments are (i) market
price risk (comprising interest rate risk,currency risk and other price risk),
(ii) liquidity risk and (iii) credit risk.

The board regularly reviews and agrees policies for managing each of these
risks. The manager's policies for managing these risks are summarised below and
have been applied throughout the year. The numerical disclosures exclude short-
term debtors and creditors, other than for currency disclosures.

(i) Market price risk
The fair value or future cash flows of a financial instrument held by the
company may fluctuate because of changes in market prices. This market
risk comprises three elements - interest rate risk, currency risk and other
price risk.

Interest rate risk
Interest rate movements may affect:
- the fair value of the investments in fixed interest rate securities; and
- the level of income receivable on cash deposits;

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.

The board imposes borrowing limits to ensure gearing levels are appropriate to
market conditions and reviews these on a regular basis. Borrowings comprise
fixed rate, revolving, and uncommitted facilities. The fixed rate US Dollar
facilities are used to finance opportunities at low rates and, the revolving and
uncommitted facilities to provide flexibility in the short-term. Current
guidelines state that the total borrowings will not exceed 20 per cent of the
total assets of the company.

Interest risk profile
The interest rate risk profile of the portfolio of financial assets and
liabilities at the balance sheet date was as follows:

At 31       Interest    Local       Foreign      Sterling
January     rate %      currency    Exchange     equivalent
2009                    £'000       Rate         £'000
                                    £'000
Assets
Sterling    1.55        6,544       1.000        6,544
                                                 6,544

At 31
January
2008
Assets
Sterling    5.55        26,020      1.000        26,020
                                                 26,020

Liabilitie
s
Bank        6.00        314         1.988        158
overdraft
- US
Dollar
Bank loans  5.25        18,433      1.988        9,272
- US
Dollar
                                                 9,430


Interest rate sensitivity
The sensitivity analyses below have been determined based on the exposure to
interest rates for both derivative and non-derivative instruments at the balance
sheet date and the stipulated change taking place at the beginning of the
financial year and held constant throughout the reporting period in the case of
instruments that have floating rates.

If interest rates had been 100 basis points higher or lower and all other
variables were held constant, the company's profit for the year ended 31 January
2009 would increase / decrease by £4,000 (2008 : increase / decrease by £5,000).
This is mainly attributable to the company's exposure to interest rates on its
floating rate cash balances as well as loans.

Foreign currency risk
A significant proportion of the company's investment portfolio is invested in
overseas securities and the Balance Sheet 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 revenue account is subject to currency fluctuation arising on overseas
income Foreign currency risk exposure by currency of denomination:

                              31 January 2009
               Overseas       Net monetary    Total
               Investments    assets          currency
               £'000          £'000           exposure
                                              £'000
US Dollar      19,717         24              19,741
Canadian       2,471          1               2,472
Dollar
Euro           8,734          27              8,761
Japanese Yen   3,407          -               3,407
Hong Kong      2,869          -               2,869
Dollar
Swiss Franc    1,438          -               1,438
Indonesian     1,341          -               1,341
Rupiah
Sterling       77,842         6,753           84,695
Total          117,919        6,805           124,724


                              31 January 2008
               Overseas       Net monetary    Total
               Investments    assets          currency
               £'000          £'000           exposure
                                              £'000
US Dollar      24,954         (9,505)         15,449
Canadian       2,307          -               2,307
Dollar
Euro           14,436         17              14,453
Japanese Yen   4,928          -               4,928
Hong Kong      3,497          -               3,497
Dollar
Swiss Franc    2,405          -               2,405
Indonesian     1,917          -               1,917
Rupiah
Sterling       119,189        23,497          142,686
Total          173,633        14,009          187,642


The asset allocation between specific markets can vary from time to time based
on the investment manager's opinion of the attractiveness of the individual
markets.

Foreign currency sensitivity
The following table details the Group's sensitivity to a 10% increase and
decrease in sterling against the relevant foreign currencies. The sensitivity
analysis includes only outstanding foreign currency denominated monetary items
and adjusts their translation at the period end for a 10% change in foreign
currency rates. A positive number indicates an increase in profit or loss and
equity where sterling strengthens against the relevant currency.

                    2009         2008
                    £000         £000
US Dollar           -            943
Total               -            943


Other price risk
Other price risks (ie changes in market prices other than those arising from
interest rate or currency risk) may affect the value of the quoted investments.

It is the board's policy to hold an appropriate spread of investments in the
portfolio in order to reduce the risk arising from factors specific to a
particular country or sector. The allocation of assets to international markets
and the stock selection process both act to
reduce market risk. The manager actively monitors market prices throughout the
year and reports to the board, which meets regularly in order to review
investment strategy. The investments held by the company are listed on various
stock exchanges worldwide.

Other price risk sensitivity
If market prices at the balance sheet date had been 15% higher or lower while
all other variables remained constant, the return attributable to ordinary
shareholders for the year ended 31 January 2009 would have increased / decreased
by £17,688,000 (2008: increase/decrease of £26,045,000) and net assets would
have increased / decreased by the same amount.

(ii) 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
comprise mainly readily realisable securities, which can be sold to meet funding
commitments if necessary.

(iii) 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, and is managed as follows:
-investment transactions are carried out with a large number of brokers, whose
credit rating of which is taken into account so as to minimise
the risk to the company of default;
-investment transactions are carried out with a large number of brokers, whose
credit-standing is reviewed periodically by the investment
manager, and limits are set on the amount that may be due from any one broker;
and
-cash is held only with reputable banks with high quality external credit
enhancements

None of the company's financial assets are secured by collateral or other credit
enhancements.

The maximum credit risk exposure as at 31 January 2009 was £8,248,000 (2008:
£26,320,000). This was due to debtors and cash as per notes 9 and 10.

Fair values of financial assets and financial liabilities
The fair value of borrowings has been calculated at £nil as at 31 January 2009
(2008 - £9,277,000) compared to an accounts value in the financial statements of
£nil (2008 - £9,272,000) (note 14). The fair value of each loan is determined by
aggregating the expected future cash flows for that loan discounted at a rate
comprising the borrower's margin plus LIBOR. All other assets and liabilities of
the company are included in the Balance Sheet at fair value.

18 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;
- to maximise the return to its equity shareholders through an appropriate
balance of equity capital and debt; and
- the board normally seek to limit gearing to 20% of total 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 analysis of shareholders' funds is as follows:

                             As at 31      As at 31
                             January 2009  January 2008
                             £000          £000
Called up ordinary share     6,699         6,835
capital
Capital redemption reserve   9,318         9,182
Special distributable        149,138       152,090
reserve
Capital reserve              (48,146)      11,820
Revenue reserve              7,715         7,715
Total shareholders' funds    124,724       187,642


19 Post balance sheet event
Since the year end a further 515,447 Ordinary shares of 5p each have been bought
back for a consideration of £428,000.


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.