Final Results

Martin Currie Portfolio Investment Trust plc

Annual report
Year to 31 January 2010

The financial information set out below does not constitute the company's
statutory accounts for the years ended 31 January 2010 or 2009 but is derived
from those accounts.  Statutory accounts for 2009 have been delivered to the
Registrar of Companies and those for 2010 will be delivered following the
company's annual general meeting.  The auditors have reported on those
accounts; their reports were unqualified, did not draw attention to any matters
by way of emphasis without qualifying their report and did not contain
statements under s498(2) or (3) Companies Act 2006.

Copies of the Annual Report and Accounts for the year ended 31 January 2010 have
been submitted to the UK Listing Authority and will shortly be available for
inspection at the UK Listing Authority's Document Viewing Facility situated at:

Financial Services Authority
25 The North Colonnade
Canary Wharf
London
E14 5HS.

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

The annual general meeting of the company will be held at the offices of Martin
Currie, Saltire Court, 20 Castle Terrace, Edinburgh, EH1 2ES on Wednesday 21 May
2010 at 12.30pm.  Full notice of the meeting can be found within the Annual
Report and Accounts.

The unedited full text of those parts of the annual report and accounts for the
year ended 31 January 2010, which require to be published are set out on the
following pages.

Financial Summary

Key data

                  As at       As at
                  31 January  31 January
                  2010        2009
Net asset value   122.2p      93.1p
per share

FTSE All-Share    2,660.5     2,078.9
index

Share price       113.5p      89.8p

Discount*         7.1%        3.5%

*Figures shown are inclusive of income as per AIC guidance.  The discount
calculated, exclusive of income, was 5.6% (2009: 0.11%).



Total returns+

                  For the year   For the year
                  ended 31       ended 31
                  January 2010   January 2009
Net asset value   37.1%          (31.9%)
per share*
FTSE All-Share    33.2%          (27.8%)
index
Share price       30.9%          (26.0%)

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

* Figures shown are inclusive of income as per AIC guidance.  In line with
investment guidelines, the discount excluding income was 5.6% (2009: 0.11%).

Income

                  As at 31      As at 31
                  January 2010  January 2009
Revenue per       2.8p          4.1p
share**
Dividend per      3.5p          3.5p
share

**For details of calculation, refer to note 2

Total expenses***
(as a percentage of shareholders' funds)

                   For the year  For the year
                   ended         ended
                   31 January    31 January
                   2010          2009

Excluding          0.9%          0.8%
performance fees

Performance Fees   -             -

Total              0.9%          0.8%

***Total expenses (as a percentage of shareholders' funds) are calculated using
average net assets over the period.


Chairman's Statement

Welcome to your 2010 annual report.  The recovery in world stock markets which we
reported in the half-year financial statement continued for the remainder of our
financial year. In the 12-month period to 31 January 2010 the company's net
asset value per share returned 37.1% compared to -31.9% in the previous
financial year. The benchmark FTSE All-Share index returned 33.2% over the
same period.

The returns below show the share price and net asset value total returns (with
income reinvested) against the company's benchmark index over the past five
years. Despite this year's outperformance, no performance fee is payable to the
manager in this financial year as the underperformance to the year end 31
January 2009 will have to be recovered before a performance related fee will
become due.

5 year share price return

FTSE                +30.2%
All-Share
Index

Martin Currie       +52.0%
Portfolio share
price

Net asset value per +48.7%
share


Source: Fundamental Data

While the company's benchmark is the FTSE All-Share index, reflecting a
substantial portion of the assets and the domicile of our shareholders, the
manager has flexibility to choose the best stocks internationally and to have a
part of the portfolio in private equity. The performance of each tier in the
strategy for the financial year under review is detailed below:

  ·    The UK equity portion of the portfolio rose by 32.8%;
  ·    The international portion of the portfolio rose by 37.1%;
  ·    After a substantial fall of 65% last year, the private equity portion rose by 64.6%.

Revenues and Dividends

The company's primary objective is capital growth and we do not constrain the
manager's freedom to select the best investments by specifically seeking
dividend yield. Moreover, in the past year corporate dividends have come under
severe pressure, particularly in the UK's traditionally higher yielding
financial sector, while deposit rates have fallen to record low levels. Thus,
the company's revenue return fell by 30.8% in the 12 months under review
compared to the previous year, even though it included the further VAT reclaim
payment of £329,000 which we reported in the half year financial statements.
Nevertheless, we know that dividends are important to shareholders and their
payment is a significant discipline; your board is recommending an unchanged
final dividend of 2.5p per share (making 3.5p for the year), which will be paid
on 21 June 2010 to shareholders on the register as at 4 June 2010. This requires
us to draw on our reserves.


The Board

We are delighted to welcome Mike Balfour as a director of the company, particularly given his experience of investment
trusts and fund management. He replaces Ian Bodie, whose service to the company I recognised in my half year statement.

It is with much regret that I announce Douglas Kinloch Anderson's decision to
retire as a director of the company at the forthcoming Annual General Meeting.
Douglas has served the company with enormous commitment since inception, as a
director, chairman of the marketing and communications committee and, since
2003, as senior independent director; we shall greatly miss his wise and
practical counsel.

Looking Ahead

As Tom Walker discusses in his manager's review, global equity markets have
responded positively to the interventions of governments and central banks
around the world. Yet, as Tom explains, many challenges remain, not least with
fiscal deficits. Growth cannot be taken for granted across the board, which is
why we believe it has never been more important to be selective at the company
level. For this reason your portfolio will continue to hold companies with
strong balance sheets, attractive valuations and good growth opportunities,
diversified across a wide range of industries globally.

The domestic economic outlook merits particular caution. As a result, our
portfolio continues to look beyond the borders of the United Kingdom both by
increasing our weighting in stocks quoted overseas and by selecting UK quoted
companies that give us greater exposure to overseas earnings.

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. I would like to invite all shareholders to attend the Annual
General Meeting of the company to be held at 12.30pm on 21 May 2010 at the
offices of Martin Currie, Saltire Court, 20 Castle Terrace, Edinburgh, EH1 2ES.

Peter Berry
Chairman


Manager's Review

Performance

Equity markets staged a major recovery in the year under review. The FTSE All-
Share index returned 33.2%, while the company's Net Asset Value per share did
better, returning 37.1%. The scale of the recovery seemed to fly in the face of
a depressing economic backdrop. However, it must be remembered that investors
were staring into an abyss of uncertainty just 12 months ago. With a real risk
of widespread corporate insolvencies, many companies were valued accordingly, so
the recovery came from a very low level.

Led by mining stocks and financials, the UK stock market fared among the best in
the developed world, although emerging markets were even stronger performers.

Private equity, which suffered particularly badly as the banking system imploded
in 2008, bounced back strongly. While credit markets remain tight for private
equity investors, share prices recovered on improving confidence. Our overseas
investments also did well. Strategically, we were overly cautious in our
expectations for the recovery, so that holding cash, albeit at low levels, and
the slightly defensive tilt of our portfolio, restrained the degree of
outperformance.

After last year's collapse, it is certainly good to be reporting a year of
rising equity values. But it does not compensate for what has been a decade of
disappointing equity returns. On a total return basis, our share price has
returned a modest 27% over the past 10 years, while the FTSE All Share index has
actually declined 11% in the same period.

Review

The enormous stimulation of growth that has been dispensed in various packages
by central banks and governments around the world has succeeded in turning the
world economy around. There are still pockets of recession and unemployment
remains elevated, but the worst appears to be behind us.

The transfer of debt from the private sector (banks) to the public sector
(taxpayers) and the low levels to which interest rates have been cut have
relieved pressure on banks, consumers and other borrowers. Yet it is clear that
pressure remains; banks are unwilling to lend and consumers are reluctant to
borrow.

So it is still too early to be confident that growth will be self sustaining
once the stimulus is removed, and it is clear that for many countries, like
Greece, Spain and the UK, removing the stimulus is only a matter of time and
addressing their fiscal deficits is critical.

Many companies have strong balance sheets and are much less indebted than
previously. Consequently, corporate results have generally stabilised, and in
some cases rebounded, with many well ahead of market expectations. This has
contributed to the strong showing from equity markets over the last year.

United Kingdom

The UK economy is one of the global laggards, and its recovery remains fragile.
GDP grew by 0.1% in the last quarter of 2009 and may yet return to negative
territory in the near future. Of particular concern is the uncertain political
outcome of the next few months. The impending General Election has undoubtedly
influenced the way the recession has been handled. Post election, some difficult
decisions will have to be taken and these will require strong leadership.
Currency markets are already anxious and a hung parliament would do little to
calm nerves.

A key positioning of our portfolio is our limited exposure to the banking
sector. The banks have raised capital and shored up their balance sheets and, in
that sense, things have improved for them. I remain concerned that their growth
rates will be subdued for some time, that regulation will influence the returns
they will be able to deliver for shareholders, and that the credit cycle may
have more nasty surprises yet to impact their balance sheets. Of the UK quoted
banks we hold only HSBC, which continues to pay a dividend, has strong capital
ratios and good access to higher growth emerging countries.

This global tilt is increasingly reflected in our UK quoted portfolio. Our UK
quoted portfolio now represents 57% of our equity assets (down from 60% 12
months ago) and within that, selling companies like BT to buy global satellite
operator Inmarsat (as we did last year) clearly results in an even greater tilt
towards non-UK earnings. We have also sold Land Securities in the last year and
are cautious on property as an asset class.

Our main exposure to the UK economy is in the defensive area of supermarkets,
where we hold Tesco and Morrisons; in utilities, where we hold Centrica; and in
support services, where we hold Babcock International. Marston's, the pub
operator, is clearly more cyclical, but offers a healthy dividend yield. Other
holdings do have UK earnings but they represent a small proportion of the whole.
While individual stocks ultimately drive the decision making process, caution
towards the UK economy is a clear theme in the portfolio.

International

International equity markets rose over the year (the FTSE World ex-UK index rose
26.4% in sterling terms), led, as is often the case, by emerging markets. While
there are exceptions, in general the developed world is in deficit while the
emerging world is in surplus. Stimulating economic growth using accumulated
surpluses, as China has done, is clearly a much more comfortable dynamic than
increasing deficits further in order to achieve growth, as much of the western
world has been forced to do. Globalisation means that there is a mutual need and
we do not believe that decoupling is likely or possible. But companies with good
revenue flows from the emerging world are likely to enjoy more opportunities for
growth than those with no such exposure.

Currency was a significant determinant of returns. The euro (and sterling)
strengthened over the year while the dollar and yen were weak. So Europe (and
the UK) were the best performing developed markets, while the US lagged and
Japan barely rose at all. Resolving the fiscal deficits of several Eurozone
countries will be key to stemming the recent correction in the euro. Currency is
likely to remain critical to returns in the year ahead but, on balance, we
expect most currencies to be stronger than sterling.

Overseas markets continue to offer differentiated growth opportunities. Long
term holdings like Apple, Indian software services company, Infosys and
Indonesian auto assembler, PT Astra International, were among our best
contributors to performance over the past 12 months. We sold out of Potash
Corporation of Saskatchewan, where aggressive pricing has led to a decline in
demand, and we also sold Petro Canada and Cintra, both of which were taken over
during the period. As in the UK, we have limited exposure to banks. During the
period we added JP Morgan, the US investment bank and sold out of National Bank
of Greece.

Private equity

Private equity was one of the areas of the market that was sold most heavily in
2008 and has bounced considerably in the market recovery. It is too early to say
that markets have normalised, but some of the issues that were faced a year ago
have been mitigated. Balance sheets have been strengthened, commitments reduced
and a number of sales have occurred which have allowed investors to exit and
repay debt or, in rare cases, recycle capital. There have been very few new
deals done as capital - both debt and equity - remains very tight.

We slightly increased our exposure to SVG Capital at low levels and it has
continued to recover. However, our best performance came from our holding in F&C
Private Equity ordinary shares. It was oversold in the downturn and more than
doubled in the period. It remains at an attractive 35% discount to its net asset
value.

Outlook

Governments and central banks around the world have turned the global economy
around and this has been reflected in stock markets over the past 12 months.
Yet, many challenges remain. In the banking sector, regulation will be increased
and the `too big to fail' conundrum remains unresolved. Rising fiscal deficits
in the developed world need to be reversed. Near zero interest rates and
quantitative easing are policies for a crisis. Until these policies normalise,
can we really say the crisis is over?

These are complicated issues and they do confuse the outlook. Growth cannot be
taken for granted across the board - for example retailers should not count on
consumers spending liberally while unemployment is high and tax rates rising.
However, when we look at companies in which we invest, we see strong balance
sheets, attractive valuations and good growth opportunities in many industries
and in different parts of the world. There will be winners and losers even in
sectors threatened by sluggish demand.

The need to focus on specific companies and to maintain a global perspective has
never been greater.


Tom Walker
8 April 2010





Portfolio Summary

Portfolio distribution as at 31 January

By Region            2010      2009
United  Kingdom     57.3%     59.7%

International*      33.8%     33.9%

Private              8.9%      6.4%
Equity
                   100.0%    100.0%

*International       2010      2009
North America       15.9%     16.3%
Europe (ex UK)       8.5%      8.6%
Global Emerging      4.9%      3.7%
Markets
Japan                2.3%      2.9%
Developed Asia       2.2%      2.4%


By Sector(excluding
cash and private    2010 Company   2010 FTSE
equity)                            All Share Index

Oil and gas         18.6%          18.2%
Financials          14.4%          22.7%
Consumer Services   11.5%          9.9%
Industrials         11.2%          7.0%
Healthcare          10.8%          7.9%
Basic Materials     10.3%          11.3%
Consumer goods      9.5%           12.2%
Technology          8.8%           1.6%
Utilities           2.7%           3.6%
Telecommunications  2.2%           5.8%
                    100.0%         100.0%


By Asset Class      2010          2009
(including cash
and borrowings)
Equities            94.8%         94.7%
Cash                 5.2%          5.3%
                   100.0%        100.0%


Largest 10           2010          2010         2009           2009
Holdings             Market Value  % of total   Market Value   % of total
                     £000          portfolio    £000           portfolio


BP                   11,228         8.3         10,341         8.8
HSBC Holdings        10,951         8.1         6,777          5.8
F&C Private Equity   10,843         8.0         6,470          5.5
Trust*
GlaxoSmithKline      7,479          5.5         8,196          7.0
BHP Billiton         6,341          4.7         4,387          3.7
British American     4,744          3.5         4,759          4.0
Tobacco
BG                   4,098          3.0         5,166          4.4
Xstrata              4,090          3.0           823          0.7
Royal Dutch          3,854          2.8         4,175          3.5
Shell
Tesco                3,621          2.7         3,332          2.8

*Ordinary and restricted voting shares combined

United Kingdom
Portfolio           Sector           Market Value £       % of total
                                                           portfolio

Financials                           15,005,978            11.0
HSBC Holdings       Banks            10,950,553             8.1
Prudential          Life Insurance    2,075,673             1.5
Amlin               Nonlife           1,129,157             0.8
                    Insurance
MAN Group           General Finance     850,595             0.6

Oil and Gas                          19,180,001            14.1
BP                  Oil and Gas      11,227,884             8.3
                    producers
BG                  Oil and Gas       4,098,311             3.0
                    producers
Royal Dutch         Oil and Gas       3,853,806             2.8
Shell               producers

Healthcare                            7,478,847             5.5
GlaxoSmithKline    Pharmaceuticals    7,478,847             5.5
                   & biotechnology

Basic                                10,431,510             7.7
Materials
BHP Billiton        Mining            6,341,097             4.7
Xstrata             Mining            4,090,413             3.0

Consumer                              4,744,116             3.5
Goods
British             Tobacco           4,744,116             3.5
American
Tobacco

Telecommunications                    2,669,007             2.0

Inmarsat       Telecommunications     2,669,007             2.0


Consumer                              9,627,978             7.1
Services
Tesco          Food and Drug          3,620,826             2.7
               retailers
Morrison (W)   Food and Drug          2,885,683             2.1
Supermarkets   retailers
Intercontinen  Leisure and            2,391,575             1.8
tal Hotels     Hotels
Marstons       Beverages                729,894             0.5

Industrials                           6,756,352             5.0
Weir           Industrial             2,101,695             1.6
               Engineering
Babcock        Support                2,060,273             1.5
International  services
BAE Systems    Aerospace &            1,496,949             1.1
               defence
Inchscape      Automobiles &          1,097,435             0.8
               parts

Utilities                             1,917,132             1.4
Centrica       Gas, Water &           1,917,132             1.4
               Multiutilities

Total United                         77,810,921            57.3
Kingdom
Investments


International  Country          Market value          % of total
Portfolio                       £                      portfolio

North America                       21,530,526             15.9
Anadarko       United States         2,277,997              1.7
Petroleum
Walmart        United States         2,192,430              1.6
CVS            United States         2,044,498              1.5
Apple          United States         1,982,955              1.5
Cisco Systems  United States         1,846,525              1.4
Gilead         United States         1,813,439              1.3
Sciences
Wellpoint      United States         1,706,342              1.3
Ultra          United States         1,544,434              1.1
Petroleum
Newmont        United States         1,409,587              1.0
Mining
Southern       United States         1,367,549              1.0
Foster         United States         1,246,039              0.9
Wheeler
JP Morgan      United States         1,187,527              0.9
Chase
Monsanto       United States           911,204              0.7

Europe (ex                          11,495,418              8.5
UK)
Annheuser-     Belgium               2,428,646              1.8
Busch Inbev
Tecnicas       Spain                 2,305,389              1.7
Reunidas
Fresenius      Germany               2,262,915              1.7
Medical Care
ABB            Switzerland           1,676,632              1.2
Arcelormittal  Netherlands           1,635,568              1.2
Tognum         Germany               1,186,268              0.9

Global                               6,542,440              4.9
Emerging
Markets
PT Astra       Indonesia             2,471,460              1.8
International
Infosys        India                 2,104,147              1.6
Technologies
Taiwan         Taiwan                1,966,833              1.5
Semiconductor

Japan                                3,144,373              2.3
Mitsui &       Japan                 1,823,344              1.3
Company
Nintendo       Japan                 1,321,029              1.0

Developed                            2,934,459              2.2
Asia
New World      Hong Kong             1,624,702              1.2
Development
China Mobile   Hong Kong             1,309,757              1.0

Total                               45,647,216             33.8
Overseas
Investments


Private        Country          Market Value          % of total
Equity                          £                     portfolio
F& C Private   UK                    9,443,132              7.0
Equity
`Ordinary'
F & C Private  UK                    1,399,400              1.0
Equity `RVS'
Candover       UK                      733,514              0.5
Investments
SVG Capital    UK                      467,507              0.4

Total Private                       12,043,553              8.9
Equity
Investments

Total                              135,501,690           100.00
portfolio


Going concern status

The company's business activities, together with the factors likely to affect
its future development, performance and position are set out in the Chairman's
Statement, Manager's Report and the Report of the Directors.
In accordance with the Financial Reporting Council's guidance on going concern
and liquidity risk issued in October 2009, the directors have undertaken a
rigorous review of the company's ability to continue as a going concern. The
company's assets consist of a diverse portfolio of listed equity shares which,
in most circumstances, are realisable within a very short timescale. The
directors are mindful of the principal risks and uncertainties disclosed on page
12 and have reviewed revenue forecasts and they believe that the company has
adequate financial resources to continue its operational existence for the
foreseeable future and for at least one year from the date of this annual
report. Accordingly, the directors continue to adopt the going concern basis in
preparing these accounts.

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 in January 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 December 2009 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 2006 and the UKLA Rules. The board relies on the services of
its company secretary and its professional advisers to ensure compliance.

Loss of investment team or portfolio manager - Martin Currie 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
Martin Currie.  The board monitors the implementation and results of the
investment process with the portfolio 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 period end bank
borrowings were nil. In accordance with the investment policy the limit on
gearing is 20% of total assets.

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
manager 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 monitors counterparty relationships on behalf
of Martin Currie Portfolio. This process includes identifying major
counterparties, mapping exposure and analysing the risks through the manager's
risk, compliance, dealing, operations and middle office teams. The aim is to
enable the board of Martin Currie 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 with any recommendations
made to the board.

Major regulatory change - In response to the financial crisis, the European
Commission produced a draft Alternative Investment Fund Managers Directive. The
directive was aimed at hedge funds and private equity funds but investment
trusts fall within its scope. Intense representation has taken place to ensure that the
special circumstances of investment trusts are recognised.

Liquidity test failure - In order to retain its place in the FTSE All-Share Index, the
company must satisfy the liquidity test criteria set by the FTSE at each annual
review. The liquidity of the company is monitored by the manager and the
company's broker with a report being reviewed by the board regularly.

Directors' Responsibilities

The directors of the company are responsible for preparing the directors' report
and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each
financial year. Under that law the directors have elected to prepare the
financial statements in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards and applicable law).
Under company law the directors must not approve the financial statements unless
they are satisfied that they give a true and fair view of the state of affairs
of the company and of the profit or loss of the company for that period. In
preparing those financial statements, 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 UK Accounting Standards have been followed,
       subject to any material departures disclosed and explained in the financial
       statements.

The directors are responsible for keeping proper accounting records that are
sufficient to show and explain the company's transactions and disclose with
reasonable accuracy at any time the financial position of the company and enable
them to ensure that the financial statements comply with the Companies Act 2006.
They 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 directors confirm that the accounts comply with the above requirement.

The financial statements are published on the www.martincurrieportfolio.com
website, which is maintained by the company's 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 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.

On behalf of the board
Peter Berry
Chairman
8 April 2010

Income Statement

                                                                   (restated)
                         Year to 31 January 2010             Year to 31 January 2009

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

Net gains/(losses)    8        -      36,875   36,875        -      (62,148)  (62,148)
on investments

Net currency         12        -        (51)     (51)        -          48         48
(losses)/gains

Income                3      4,325      195     4,520      6,003       349      6,352

Investment management        (222)     (444)    (666)      (266)      (531)     (797)
fee

VAT                  16        -         97       97        350       1,033     1,383
recoverable
on Investment
management fee

Other                 6      (511)      (7)     (518)      (448)         -      (448)
expenses

Net return                  3,592    36,665    40,257     5,639    (61,249)  (55,610)
before
finance
costs and
taxation

Finance              4         -         -         -        (3)         (8)     (11)
costs
Net return                  3,592     36,665    40,257     5,636    (61,257) (55,621)
on ordinary
activities
before
taxation
Taxation on          7      (102)        -      (102)     (125)        -       (125)
ordinary
activities
Return                      3,490    36,665    40,155     5,511    (61,257) (55,746)
attributable
to
shareholders
Returns per          2      2.81p     29.51p   32.32p     4.06p    (45.11p)  (41.05p)
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.
The notes to the accounts form part of these financial statements.
For details of the restatement refer to note 1(a) and 21.

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


                                                    (Restated)*
 31 January 2010      As at 31 January 2010    As at 31 January 2009

                 Note    £000   £000                £000        £000

Non-current
assets
Investments at
fair value
through profit
or loss
Listed on The                 89,855                          77,943
Stock Exchange
in the UK
Listed on stock               45,647                          39,976
exchanges
abroad
                  8           135,502                        117,919
Current Assets
Debtors and       9      125                        1,704
Prepayments

Cash at bank     10     7,467                       6,544
                        7,592                       8,248
Creditors
Amounts falling  11     (378)                      (1,443)
due within one
year

Net current                    7,214                         6,805
assets

Net assets                   142,716                       124,724


Capitals and
reserves
Called-up share        5,842                        6,699
capital
Special reserve      131,494                      149,138

Capital               10,175                        9,318
redemption
reserve
Capital reserve      (12,772)                     (49,437)

Revenue reserve        7,977                        9,006

                                142,716                     124,724


Net Asset Value    2             122.2p                       93.1p
per ordinary
share


*For details of restatement refer to notes 1(a) and 21.
The notes to the accounts form part of these financial statements.
The financial statements were approved and authorized for issue by the board on
8 April 2010, and signed on its behalf by Peter Berry, Chairman.

Reconciliation of Movements in Shareholders' Fund


                Called     Capital     Special       Capital    Revenue
                up         redemption  distributable reserve    reserve
                ordinary   reserve     reserve
                capital
                £000        £000          £000        £000      £000

Reconciliation
of movements in
shareholders'
funds to 31
January 2010
At 31 January   6,699       9,318        149,138   (49,437)    9,006
2009 (restated)
Ordinary shares (326)        326         (6,905)        -       -
bought back
during the year
Redemption of   (531)        531         (10,739)       -       -
ordinary shares
Losses on        -            -             -       (6,623)     -
realisation of
investments at
fair value
Movement in      -            -             -          (51)     -
currency losses
Movement in      -            -             -        43,498     -
fair value
gains
Capitalised      -            -             -          (451)    -
expenses
Capital          -            -             -           195     -
dividends
received
VAT recoverable  -            -             -            97     -
on capital
expenses
Net revenue      -            -             -            -     3,490
Dividends paid   -            -             -            -    (4,519)

As at 31        5,842     10,175         131,494    (12,772)   7,977
January 2010


                Called     Capital      Special        Capital    Revenue
                up         redemption   distributable  reserve    reserve
                ordinary   reserve      reserve
                share
                £000       £000         £000           £000       £000


Reconciliation
of movements in
shareholders'
funds to 31
January 2009
At 31 January   6,835      9,182       152,090        11,820     7,715
2008 (restated)
Ordinary shares (136)        136       (2,952)           -         -
bought back
during the year
Redemption of     -           -            -             -         -
ordinary shares
Losses on         -           -            -          (6,163)
realisation of
investments at
fair value
Realised          -           -            -             48        -
currency gain
during the year
Movement in       -           -            -          (55,985)     -
fair value
losses
Capitalised       -           -            -           (539)       -
expenses
Capital           -           -            -            349        -
dividends
received
VAT recoverable   -           -            -           1,033       -
on capital
expenses
Net revenue       -           -            -                     5,511
Dividends paid    -           -            -                    (4,220)

As at 31      6,699        9,318      149,138        (49,437)    9,006
January 2009
(restated)

For details of restatement refer to notes 1(a) and 21.
The notes to the accounts form part of these financial statements.

Statement of Cash Flow

                 Note     Year to 31        Year to 31
                         January 2010      January 2009

                         £000   £000       £000    £000
Net cash inflow  13             4,886              2,484
from operating
activities

Servicing of
finance
Finance Cost:            -                 (123)
debt
Net Cash                       -                   (123)
outflow from
servicing of
finance
Capital
Expenditure and
Financial
Investment
Payment to           (16,064)            (31,188)
acquire
investments
Proceeds from         34,315              25,905
sale of
investments
Net Cash                     18,251             (5,283)
inflow/(outflow)
from capital
expenditure and
financial
investment
Equity                       (4,519)            (4,220)
dividends paid
Net Cash                     18,618             (7,142)
inflow/(outflow)
before
financing

Financing

Repurchase of    12          (6,905)            (2,952)
ordinary share
capital
Redemption of    12          (10,739)              -
ordinary shares
Short term bank  14            -                (9,471)
borrowings

Increase/(decre  14           974               (19,565)
ase) 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.
Shareholders funds - Under amended FRS 25 `Financial Instruments: Disclosure
and Presentation', where shares meet certain conditions, they may be treated as
equity. Previously the shares in Martin Currie Portfolio Investment Trust were
treated as debt, however they now meet all the conditions required to allow them
to be treated as equity and the board has decided that the early adoption of the
amended FRS 25 will be implemented in the current financial year and as a result
the shares will be treated as equity. The previous year's results have been
restated to reflect this. For restatements please refer to note 21. There is no
impact on the net asset value per share or the revenue return of the current or
prior year from the adoption of the amended FRS 25.

b) Income from investments (other than special dividends), including taxes
deducted at source, is included in revenue by reference to the date on which the
investment is quoted ex-dividend, or where no ex-dividend date is quoted, when
the company's right to receive payment is established. Franked investment income
is stated net of the relevant tax credit. Other income includes any taxes
deducted at source. Special dividends are credited to capital or revenue,
according to the circumstances. Scrip dividends are treated as unfranked
investment income; any excess in value of the shares received over the amount of
the cash dividend is recognised as a capital item in the income statement.

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

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

e) Investments - Investments have been designated upon initial recognition as
fair value through profit or loss. Investments are recognised and de-recognised
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.

The company adopted the extended disclosure requirements within FRS 29
`Financial Instruments: Disclosures' for accounting periods beginning on or
after 1 January 2009.  The extended disclosure requirements introduced a fair
value hierarchy and this is disclosed in note 19.

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 are transferred to the capital reserve.  Any
changes in fair values of investments that are not readily convertible to cash
are treated as unrealized gains or losses within 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.

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.



2.

                    Year ended   Year ended
                    31 January   31 January
                    2010         2009
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      £3,490,000   £5,511,000
attributable to
ordinary
shareholders
Average number of   124,260,224  135,792,258
shares in issue
during year
Return per ordinary   2.81p        4.06p
share
Capital return
Capital return      £36,665,000  (£61,257,000)
attributable to
ordinary
shareholders
Average number of   124,260,224  135,792,258
shares in issue
during period
Return per ordinary 29.51p       (45.11p)
share
Total return
Total return per    32.32p       (41.05p)
ordinary share


Net asset value per As at 31     As at 31
share               January      January
                    2010         2009
Net assets          £142,716,000  £124,724,000
attributable to
shareholders
Number of shares in 116,834,502  133,990,458
issue at the year
end
Net asset value per   122.2p       93.1p
share


On 31 May 2009, shareholders were given the opportunity to redeem their shares
in the company at net asset value (NAV) less costs.  Subsequently, 10,630,376
shares were redeemed.  This event together with other share buybacks reduced the
number of shares outstanding as at 31 January 2010 to 116,834,502.

Between 1 February and 7 April 2010, a further 2,725,996 ordinary shares of 5p
each have been bought back for cancellation at a cost of £3,275,552.


3.

                   2010           2009
                   £000           £000
Income from
investments
From listed
investment
UK equities        3,237          4,235
International       782           1,133
equities
Stock dividends       1             164

Other income
Interest on          31             449
deposits
Underwriting         42              22
commission
Interest on VAT     232              -
recoverable on
investment
management fees
                  4,325          6,003

Total income
comprises:
Dividends          4,020          5,532
Underwriting          42            449
commission
Interest             263             22
                   4,325          6,003

Income from
investments
Listed in the UK   3,237          4,235
Listed overseas      783          1,297
                   4,325          6,003


In addition, during the year ended 31 January 2010, the company received capital
dividends of £155,000 and £40,000.  These related to capital distributions from
F&C Private Equity Trust and ABB Limited respectively. During the year to 31
January 2009, the company received a capital dividends of £312,000 and £37,000.
These related to capital distributions from F&C Private Equity Trust and ABB
Limited respectively.

4.

                    2010                 2009

             Revenue  Capital  Total   Revenue  Capital  Total

             £000     £000      £000    £000    £000     £000
Finance
Costs
Interest     -         -         -        3        8       11
payable on
bank loans
and
overdrafts

5.

                    2010                 2009

             Revenue  Capital  Total  Revenue  Capital    Total
              £000     £000    £000   £000      £000      £000
Dividends
Year ended      -      -        -       2,871    -        2,871
31 January
2008 - final
dividend of
2.10p
Year ended      -      -        -       1,356     -       1,356
31 January
2009 -
interim
dividend of
1.00p
Year ended   3,322     -       3,322     -        -         -
31 January
2009 - final
dividend of
2.50p
Year ended   1,197     -       1,197     -        -         -
31 January
2010 -
interim
dividend of
1.00p
Unclaimed     -        -         -      (7)       -      (7)
dividends
refunded
             4,519    -       4,519     4,220     -     4,220


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.


                              2010         2009
                              £000         £000
Interim dividend of 1.00p for 1,197        1,356
the year ended 31 January
2010 (2009: 1.00p)
Proposed final dividend of    2,921        3,350
2.50p for the year ended 31
January 2010 (2009: 2.50p)
                              4,118        4,706

6.

Other expenses                2010         2009
                              £000         £000
Auditors' remuneration         21           23
audit services
Auditors' remuneration         -             1
non audit services
Bank charges (including        26           29
custody fees)
Directors' fees               120          127
Irrecoverable VAT              27           26
Legal fees                    (3)            9
Marketing                      31           21
Printing and postage           28           35
Registration fees              41           24
Secretarial fee                64           64
Advertising and public         63           (8)
relations
D&O insurance                  16           14
Retainer paid to company       30           30
broker
Other                          47           53
                              511          448

The company incurred £10,000 of expenses in relation to the VAT recovery which
has been allocated to capital and revenue in line with the accounting policy of
the company for the period which the VAT was charged.  £7,000 was charged to
capital

Performance Fee
The performance fee for the year ended 31 January 2010 was nil (2009: nil).


7.


                  2010                     2009

           Revenue  Capital   Total  Revenue   Capital   Total

            £000     £000     £000    £000      £000      £000
Taxation
on
ordinary
activities
Foreign      102        -     102     125        -       125
Tax

As at 31 January 2010, the company had unutilised management expenses of £16.9
million (2009: £16.5 million), non-trading loan relationship deficit of
£4,778,000 (2009: £4,778,000) and eligible unrelieved foreign tax of nil (2009:
£495,000) carried forward. These balances have 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.

These losses are not recognised as a deferred tax asset because the company is
not expected to generate taxable income in a future period in excess of
deductible expenses for that future 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 28% (2009: 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.

                              2010         2009
                              £000         £000
Net return before taxation    40,257       (55,621)

Corporation tax at effective  11,272       (15,759)
rate of 28% (2009: 28.33%)

Effects of:
Non taxable UK dividend       (906)        (1,246)
income
Currency losses/(gains) not     14           (14)
taxable
Capital distributions not      (54)          (99)
taxable
(Gains)/losses on investments (10,325)     17,609
not taxable
Overseas dividends non         (125)         -
taxable
Movement in income accruals     8            9
taxable on receipt
Overseas tax suffered         102          125
Increase in excess management 116          (500)
and loan expenses

Total current year tax charge 102          125



8.

Investments           As at 31   As at 31
                      January    January
                      2010       2009
                      £000       £000
Opening valuation     117,919    173,633
Opening investment    25,755     (30,230)
holding
losses/(gains)
Opening Cost          143,674    143,403
Purchases at cost     14,948     32,414
Disposal proceeds    (34,240)   (25,980)
Less: net loss on     (6,623)    (6,163)
disposal of
investments
Disposal at cost      (40,863)   (32,143)
Closing cost          117,759    143,674
Investment holding    17,743     (25,755)
gains/(losses)
Valuation as at 31    135,502    117,919
January


Gains/(losses) on     As at 31   As at 31
investments           January    January
                      2010       2009
                      £000       £000
Net loss on disposal  (6,623)    (6,163)
of investments
Net gain/(loss) on    43,498     (55,985)
revaluation of
investments
                      36,875     (62,148)


The transaction cost in acquiring investments during the year were £56,000
(2009:£139,000). For disposals, transaction costs were £46,000 (2009: £32,000).

During the year there was a write down in the book cost of F&C Private Equity
Trust A shares of £189,000 (2009: £153,000) and ABB Limited shares of £36,000
(2009: £9,000) which were reflected in the realised net loss of £6,623,000
(2009: net loss £6,163,000).  These were as a result of capital repayments made
in April and July 2009 respectively.


9.

                      As at 31   As at 31
                      January    January
                      2010       2009
                      £000       £000
Debtors: amounts
falling due within
one year
Dividends receivable  51         136
Amount due from       -          75
brokers
Taxation recoverable  36         39
Other debtors         38         1,454
                      125        1,704



10.

                      As at 31   As at 31
                      January    January
                      2010       2009
                      £000       £000
Cash at bank
Sterling bank         7,466      6,544
account
Foreign bank account      1         -

                      7,467      6,544


11.

Creditors             As at 31   As at 31
                      January    January
                      2010       2009
                      £000       £000
Amounts falling due
within one year
Due to brokers        110        1,226
Due to Martin Currie  192          167
Other creditors        76           50
                      378        1,443

For interest risk analysis in respect of debtors and creditors refer to note 17.

12.


Called up share    Number     As at 31   Number    As at 31
capital            of         January    of        January
                   shares     2010       shares    2009
                              £000                 £000
Ordinary shares
5p
Authorised                    50,000               50,000
Ordinary shares 133,990,458    6,699  136,716,072   6,835
in issue at
beginning of the
year
Ordinary shares (6,525,580)    (326)   (2,725,614)  (136)
bought back
during the year
Ordinary shares (10,630,376)   (531)        -         -
redeemed during
the year
Ordinary shares  116,834,502   5,842   133,990,458  6,699
in issue at end
of the year


The total cost of share buybacks and the redemption of ordinary shares for the
year to 31 January 2010 was £17,644,000 (2009: £2,952,000)

The analysis of the capital reserve is as follows:

                      Realised   Investment  Total
                      capital    holding     capital
                      reserve    gains/(loss reserve
                      £000       es) £000    £000
At 31 January 2009    (23,682)   (25,755)    (49,437)
(restated)
Losses on             (6,623)       -        (6,623)
realisation of
investments at fair
value
Movement in fair        -        43,498      43,498
value gains
Movement in currency   (51)         -          (51)
losses
Capitalised expenses  (451)         -          (451)
Capital dividends      195          -           195
received
VAT recoverable on      97          -            97
capital expenses

At 31 January 2010   (30,515)   17,743      (12,772)


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.

               2010           2009
               £000           £000
Reconciliation
of net
return before
finance costs
and taxation
to net cash
inflow from
operating
activities
Return on      40,257         (55,610)
ordinary
activities
before
finance costs
and taxation
Adjustments
for:
(Gains)/losses  (36,875)       62,148
on
investments
Effect of         51           (48)
foreign
exchange
rates
Decrease/
(increase)in    1,501          (1,303)
dividends
receivable
and other
debtors
Increase/        51            (2,552)
(decrease)
other
creditors and
other
accruals
Overseas       (99)            (151)
withholding
tax suffered
Net cash       4,886           2,484
inflow from
operating
activities


14.

Analysis    As at 31    Cash Flow   Exchange     As at 31
of changes  Jan 2009    £000        Movement     Jan 2010
in net      £000                    £000         £000
debt
Cash at     6,544       974         (51)         7,467
bank and
in hand
Overdrawn     -           -           -            -
US Dollar
Bank
Account
Bank          -           -           -            -
borrowings
- falling
due within
one year

            6,544       974         (51)         7,467


Analysis    As at 31    Cash Flow   Exchange     As at 31
of changes  Jan 2008    £000        Movement     Jan 2009
in net      £000                    £000         £000
debt
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

            16,590      (10,094)    48           6,544



15.

Related     Principal  Description   Issued       Proportion
Party       activity   of shares     capital      of class
Participat             held          £000         held %
ing
Interests
F&C         Investment   Restricted    671          46.4%
Private     trust        voting (A)
equity
trust plc                Ordinary (B)  723          10.8%
as at 31
January
2010

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.

The manager submitted a claim to HMRC for VAT charged on investment management
fees for the period 1 April 2001 to 30 September 2007.  A refund of £1,480,000
(£1,383,000 of which was recognised in 2009) and interest of £232,000 (included
in income - see note 3) was received from HMRC during the year and repaid to the
company.  The refund 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.
Interest has been allocated entirely to revenue.  The reclaim for previous
periods is 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 may comprise
fixed rate, revolving, and uncommitted facilities. 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       Rate %      Local       Foreign      Sterling
January                 currency    Exchange     equivalent
2010                    000         Rate         £000

Assets
Sterling    -           7,466       1.000        7,466
US Dollar   -               2       1.602            1
                                                 7,467

At 31
January
2009
Assets
Sterling    1.55        6,544       1.000        6,544
                                                 6,544


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
2010 would increase / decrease by £nil (2009 : increase / decrease by £4,000).
This is mainly attributable to the company's exposure to interest rates on its
floating rate cash balances as well as loans in 2009.

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 2010
               Overseas       Net monetary    Total
               Investments    assets          currency
               £000           £000            exposure
                                              £000
US Dollar      25,602         4               25,606
Canadian       -              -               -
Dollar
Euro           9,860          -               9,860
Japanese Yen   3,144          -               3,144
Hong Kong      2,934          -               2,934
Dollar
Swiss Franc    1,636          -               1,636
Indonesian     2,471          -               2,471
Rupiah
Sterling       89,855        7,210           97,065
Total          135,502       7,214           142,716


                              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

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

Foreign currency sensitivity
There were minimal foreign currency denominated monetary items at the year end.

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
as detailed under the manager's report 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 at the year ended 31 January 2010 would have increased/decreased by
£20,325,000 (2009: increase/decrease of £17,688,000) and equity reserves 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 managed as follows:

  ·    investment transactions are carried out with a large number of brokers,
       whose credit rating is reviewed periodically by the portfolio 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
       ratings

None of the company's financial assets are secured by collateral.

Fair values of financial assets and financial liabilities
There were no borrowings as at 31 January 2010 (2009: £nil). 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 under the
investment trust rules should be retained.

The analysis of shareholders' funds is as follows:


                          As at           As at
                          31 January 2010  31 January 2009
                             £000          £000
Called up ordinary share     5,842         6,699
capital
Capital redemption reserve  10,175         9,318
Special distributable      131,494       149,138
reserve
Capital reserve            (12,772)      (48,937)
Revenue reserve              7,977         9,006
Total shareholders' funds  142,716       124,724


19 Fair value hierarchy

The company adopted the amendments to FRS 29 `Financial Instruments:
Disclosures' effective from 1 January 2009. These amendments require an entity
to classify financial assets using a fair value hierarchy that reflects the
significance of the inputs used in making the measurements. The fair value
hierarchy shall have the following levels:

  ·    Level 1: quoted prices (unadjusted) in active markets for identical assets
       or liabilities;

  ·    Level 2: inputs other than quoted prices included within Level 1 that are
       observable for the asset or liability, either directly (ie as prices) or
       indirectly (ie derived from prices); and

  ·    Level 3: inputs for the asset or liability that are not based on observable
       market data (unobservable inputs).

The financial assets and liabilities measured at fair value in the balance sheet
are grouped into the fair value hierarchy at 31 January 2010 as follows:

Financial assets at   Level 1  Level 2  Level 3 Total
fair value through    £000     £000     £000    £000
profit or loss
Quoted equities       135,502  -        -       135,502
Net fair value        135,502  -        -       135,502


Quoted equities

The fair value of the company's investments in quoted equities has been
determined by reference to their quoted bid prices at the reporting date. Quoted
equities included in Fair Value Level 1 are actively traded on recognised stock
exchanges.

There have been no movements between levels in the fair value hierarchy during
the year.

20 Post balance sheet event

Since the year end a further 2,725,996 Ordinary shares of 5p each have been
bought back for a consideration of £3,275,552.

21 Explanation of prior period adjustments

In previous years, under the terms of FRS 25 `Financial instruments: Disclosure
and Presentation', the company's shares were classified as financial liabilities
and, accordingly, there was no presentation of `Capital and reserves' within the
balance sheet and all movements in the value of shareholders' funds were
recorded through the income statement as finance costs.

Following the adoption of the amendment to FRS 25, the company's shares are now
classified as equity and are presented in this year's accounts together with the
relevant reserves within `Capital and reserves'. Movements in the value of
shareholders' funds are no longer reflected through the income statement as
finance costs.

The impact of this change in accounting policy on the current and prior year accounts
is nil, as summarised below.

As per note 1 these financial statements have incorporated the amended
requirements of FRS 25 `Financial Instruments: Disclosure and Presentation'.

                                 As                Effect        As
                                 previously        of change     restated
                                 reported          in policy     31 January 2009
                                 31 January 2009
                                 £000                £000            £000
Reconciliation of income
statement for the year ended 31
January 2009
Net losses on investments        (62,148)             -           (62,148)
Net currency gains                    48              -                48
Income                             6,352              -             6,352
Investment management fee          (797)              -             (797)
VAT recoverable on investment      1,383              -             1,383
management fees
Performance fee                      -                -               -
Other expenses                     (448)              -             (448)

Net return before finance costs  (55,610)             -           (55,610)
and taxation

Finance costs: debt                 (11)              -             (11)
Finance costs: shareholders'      55,562            (55,562)         -
funds
Finance costs: repurchase of        184              (184)           -
shares

Net return on ordinary              125            (55,746)       (55,621)
activities before taxation
Taxation on ordinary activities    (125)                 -          (125)

Return attributable to              -              (55,746)       (55,746)
shareholders

Return per ordinary share           -               (41.05)        (41.05)




                                 As                Effect        As
                                 previously        of change     restated
                                 reported          in policy     31 January 2009
                                 31 January 2009
Reconciliation of income         £000              £000            £000
statement for the year ended 31
January 2009
Non-current assets
Investments at fair value        117,919              -          117,919
through profit or loss
Current assets
Loans and receivables             1,704                -           1,704
Cash at bank                      6,544                -           6,544
Creditors
Amounts falling due within one  (1,443)               -           (1,443)
year

Net assets                      124,724              -           124,724

Net asset value attributable to 124,724           (124,724)         -
shareholders

Capital and reserves
Called-up share capital          -                   6,699        6,699
Special Reserve                  -                 149,138      149,138

Capital redemption reserve       -                   9,318        9,318
Capital reserve                  -                 (49,437)     (49,437)

Revenue reserve                  -                   9,006        9,006

Equity shareholders' funds      124,724               -         124,724



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.