Annual Financial Report

RNS Number : 6546E

Aberdeen All Asia Inv Tst PLC

01 June 2012

 



ABERDEEN ALL ASIA INVESTMENT TRUST PLC

ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 MARCH 2012

1.       CHAIRMAN'S STATEMENT

Highlights

•      Net Asset Value  + 4.4%

•      Share Price  + 5.8%

I am pleased to report that your Company has delivered another year of solid performance. This was a significant achievement in the light of the extremely challenging backdrop, as the West's sovereign and fiscal ills took their toll on sentiment and triggered fluctuations in global financial markets. Performance was resilient with net asset value ("NAV") on a total return basis rising by 4.4% over the period. By comparison, the benchmark, the MSCI All Countries Asia Pacific (including Japan) Index, posted a decline of 3.7%. The share price gained 5.8% to 318p, as the discount to NAV narrowed to 11.5%. The outperformance has been sustained over a longer period of time supported by the Manager's focus on investing for the long term in quality stocks backed by healthy fundamentals. In the past five years, the Company has generated a cumulative total return of more than 50% compared with about 22% for the benchmark index. The Board's buy-back policy was continued, aimed at improving liquidity, and total buy-backs in the year were about £2.7m or 5.3% of the trust's average NAV.

Performance

Asian equities posted modest losses over the year under review, but this belied one of the most tumultuous periods in recent times. Far from a decoupling, the increasing interconnectedness of markets and economies was laid bare. Europe's debt woes exerted immense pressure on world stock markets. Deleveraging in Western economies inflicted collateral damage on emerging economies, thus weakening external demand for Asian exports. Capital repatriation in the flight to liquidity squeezed investment flows into the region. Policy tightening in China, high oil prices and Thailand's floods added to the market uncertainty.

Stock markets reached a nadir in October, with Asia's regional benchmark sinking to its lowest level in more than a year. Without the stabilising effect of quantitative easing this time round, the severity of the sell-off was a rude wake-up call to policymakers. Major central banks swiftly undertook unprecedented coordinated efforts to support the global financial system. In addition, the European Central Bank pumped massive liquidity into debt markets. These actions appeared to arrest concerns over systemic risk. In Asia, inflation generally receded in line with moderating regional growth, providing scope for a more accommodative policy stance. Risk appetite improved significantly, which sparked a sharp market rebound towards the end of the period, while the influx of liquidity buoyed asset prices.

Your Company's portfolio generated better returns vis-à-vis local benchmarks across most of the region. Of note was the excellent showing by the portfolio holdings in Japan. While the underweight to Japan detracted from performance as post-earthquake reconstruction buoyed sentiment, this was more than offset by the positive contribution from your Company's holdings, in particular exporters and automotive companies. The exception was Australia which underperformed as our holdings faced specific challenges last year. A more in-depth analysis of portfolio performance is contained within the Manager's review.

Gearing, which was raised from 9.2% to 10.2% during the year, benefited performance. During the market's trough between August and October, the Manager raised the level of borrowing, which peaked at 14.6%, and invested selectively in holdings whose valuations had become even more appealing post the sell-off. The market's sharp pick-up thereafter proved this to be a well-timed move and, towards the period end, some holdings were pared and the proceeds used to trim back gearing.

Revenue and Dividend

The Board is proposing to shareholders a final dividend per share of 4.75p (2011 - 3.25p) payable on 27 July 2012 to shareholders on the register as at close of business on 29 June 2012; the ex-dividend date will be 27 June 2012. This will be the fourth dividend paid to shareholders since the establishment of the Company in its present form in 1998.  Revenue return per share increased from 4.65p to 6.03p as dividend flows in the portfolio improved. This has again produced earnings in excess of the level that the Company is allowed to retain under the rules for Investment Trusts.

Investment Manager

The Board has reviewed the performance of the Manager. The performance and strengths of the Manager's investment team in the region confirm the Board in its view that the continuing appointment of Aberdeen Asset Management Asia as Manager, on the present terms, is in the interests of shareholders as a whole. This strong performance in the year to 31 March 2012, with the Net Asset Value of the Company outperforming the Index by 8.1%, means that the Manager has earned a performance fee of £426,000. This is calculated as 15% of the portfolio's outperformance of the benchmark during the period, and is about 0.73% of the value of the portfolio at the end of the year. 

Changes to the Company's Articles of Association

At the Annual General Meeting of the Company, which will be held at Bow Bells House, 1 Bread Street, London EC4M 9HH at 11.00 a.m. on Tuesday, 24 July 2012, under Resolution No.10, a special resolution, various amendments to the Company's Articles of Association are proposed, largely to implement those changes required under the Companies Act 2006. In addition, new investment trust tax rules came into effect for accounting periods beginning on or after 1 January 2012, one of which is that there is no longer a prohibition on the distribution as a dividend of surpluses arising from the realisation of investments.  Accordingly, your Board considers it prudent to propose at the same time an amendment to remove this prohibition. It is not the Board's intention at present to change the Company's dividend policy, and any such change would first be notified to shareholders.

Outlook

The global financial and economic outlook remains fragile. The Eurozone problems seem likely to restrict European economic performance for some time, while the US economy is growing only at about 2 to 3 % per annum. In Asia, the picture is more positive because of both the underlying robustness of the Asian economies, and their potential to grow strongly.

The focus of policy in China being to engineer a soft landing, and political problems in India, suggest that growth may also be slower than in the past. However, Japan's economy is recovering rapidly from the effects of the tsunami last year and, although the pace may moderate, it is currently helpful. The immediate outlook in Asia therefore remains for moderating but still strong growth when compared with the rest of the world. Asia, while not being decoupled, is likely to become a positive driver of world economic performance in the years to come.

Although Asian markets will continue to be swayed by risks to the global economy, which may imply some short-term volatility, there are good opportunities for Asian businesses both to expand within Asia and to expand global market share. Your Company is positioned well to benefit from this economic backdrop, and your Manager's style of investing in companies with balance sheet strength, cash flow and experienced management should continue to stand the portfolio in good stead. Over the long run, the region's impressive fundamentals underpin the outlook for investment performance. Your Board therefore remains confident both in the long-term prospects of the region and in the good performance of your Company.

Neil Gaskell

Chairman

1 June 2012

2.       MANAGER'S REVIEW

Overview

Asian stockmarkets came under pressure during a year marked by intense volatility, particularly during the first half. Initially, investors were cheered by positive corporate earnings, but, as the year wore on, increasingly negative developments in the developed world dented confidence. Risk aversion continued to build in the wake of the deepening Eurozone debt crisis, the unprecedented downgrade of the US sovereign credit rating and lacklustre data across developed nations. Anxieties over a possible hard landing in China raised questions over the health of the global economy. Towards the year-end, however, losses were pared following the massive liquidity injections in the global financial system, which led stockmarkets in the region to snap back. The improvement in US economic data and the Federal Reserve's commitment to keep interest rates low until 2014 also lifted sentiment.

While most Asian economies fared relatively well compared to the West, they were not immune to the problems in Europe. Japan fell into a recession, owing in part to the strength in the yen and its impact on exports. The region's main economic powerhouses, China and India, also witnessed a deceleration in growth, as evident from the slowdown in manufacturing activity. In particular, China's expansion rate was its slowest in two and a half years.

In view of their cooling economies, policymakers made supporting growth their priority. Their jobs were made easier as inflation eased, allowing them to reverse their monetary tightening stance. Notably, China and India lowered the reserve requirement ratio for banks.

On the political front, the region witnessed several watershed elections, which had significant bearing on national stability and policymaking. In Japan, Yoshihiko Noda became the country's sixth prime minister in five years, highlighting the fluidity of the domestic political structure. The lack of decisive leadership was also apparent in India's Congress-led coalition. The party not only suffered losses in state elections amid a series of corruption scandals, but also backtracked on important economic reforms. Thailand saw Yingluck Shinawatra become the nation's first female prime minister following her Puea Thai Party's majority victory, indicating a return towards populist policies. Elsewhere, the election of Hong Kong's pro-Beijing candidate Leung Chun-ying as chief executive foreshadows the challenges he faces in balancing local issues and ties with the mainland.

Portfolio review

In the 12 months to end March 2012, the fund's performance resisted the direction of the MSCI AC Asia Pacific Index - the portfolio's net asset value rose by 4.4% in sterling terms, with the share price rising by 5.8%, compared with the benchmark's total return of -3.7%.

Japan, where we are underweight, continued to be the top contributor to portfolio outperformance, thanks to solid stock selection there. The positive performance reflected the remarkable recovery of exporters in particular. Shin-Etsu Chemical, Fanuc and Canon resumed production much earlier than expected, following the natural disasters last March. In the more defensive consumer-oriented sectors, personal goods manufacturer Unicharm and convenience store operator Seven & i were supported by firm demand.

The underweight to China also benefited the portfolio. The Chinese stockmarket was one of the main laggards in the region, dragged down by the financial sector. Sentiment was affected by the increasingly tight credit environment and the downgrade of the official growth forecast.

Among our holdings, India, Hong Kong and Taiwan stood out. Although the Indian stockmarket was battered by persistently high inflation and policy stasis, motorcycle maker and distributor Hero MotoCorp's share price was driven by healthy domestic demand and Hero Investments' acquisition of Honda Motor's 26% stake. This erased any uncertainty over the company's outlook following the termination of its partnership with Honda. But valuations have since become quite fairly valued and we have exited the stock. In Hong Kong, both Jardine Strategic and its unit, Dairy Farm, were lifted by positive earnings. Elsewhere, Taiwan Semiconductor Manufacturing's shares outperformed as its technological lead, coupled with a net cash balance sheet, reassured investors.

Unfortunately, our holdings in Australia did not fare too well. Natural disasters in the country hindered mining group Rio Tinto's output and QBE Insurance, which saw record catastrophe claims during the review period. Concerns over cost inflation and China's economic slowdown affected Rio Tinto as well. Meanwhile, QBE was weighed down by low yields on the investment portfolio coupled with a series of natural disasters, the worst being the floods in Thailand. Nevertheless, we remain comfortable with both holdings, because of their well-diversified global businesses which are guided by capable management.

During the review period, market volatility presented attractive opportunities to introduce quality companies with good fundamentals. For example, we initiated a position in Singapore-headquartered Keppel Corporation. The company's offshore and marine division won record orders totalling S$10 billion in 2011, the majority of which were for its proprietary designs. Backed by a solid balance sheet, decent dividend yield and despite operating in a cyclical industry, Keppel has developed a leading position in building rigs for deep-water oil and gas exploration. The company also has property and infrastructure divisions.

In the Indian subcontinent, we initiated exposure to Sri Lanka through the purchase of John Keells Holdings, which has interests ranging from retail to transport. The island-state has opened up following the end of the civil war and consumer-oriented companies are well positioned to gain from the improved domestic economic prospects. Against this, our Indian exposure was reduced following the divestment of Hindustan Unilever and GlaxoSmithKline India. As in the case of Hero MotoCorp, valuations of these companies have remained elevated, despite the sharp declines in the local stockmarket and elsewhere.

In raising our exposure to financial holdings such as Hong Kong-listed AIA and HSBC, we had disposed of several small positions in Dah Sing Financial and Wing Hang Bank in Hong Kong, along with BS Financial Group and DGB Financial Group in Korea. We also sold Japan's Mitsubishi Estate because we have been disappointed with its expansion plans over the years and are concerned about management's distraction with non-core investments. In Korea, we divested retailers Shinsegae and E-Mart as we have adequate consumer exposure elsewhere such as Seven & i, Unicharm and Unilever Indonesia.

Outlook

Short-term sentiment may have improved but confidence is still very much vulnerable to the uncertain economic backdrop, underscored by the downgrade in China's full-year growth forecast. The revised GDP estimate reflects the mainland's phase of its growth cycle and the challenges it faces, particularly in the property sector. Globally, developments elsewhere present further headwinds. Europe's persistent debt problems and lingering doubts over the resilience of the US recovery could increase risk aversion. Meanwhile, geopolitical tensions in the Middle East and their implications on the oil price are also likely to weigh heavily on the region, given that emerging Asia consumes about 25% of the world's total oil output. In view of slowing economic activity and persistent price pressures, stagflation could be a key risk for the region, thus complicating the policymaking process for central banks.

While we are cognisant of the macroeconomic risks, Asia's prospects over the longer term still appear positive. Countries in the region still possess fiscal stability and viable monetary policies. The region's dependence on external demand should gradually decrease, while rising domestic consumption and investment could buttress growth. Corporate results have also been encouraging, albeit the pace of earnings growth has slowed as expected. Nevertheless, valuations are reasonable and we maintain our disciplined investment approach - taking profits when share prices have climbed too fast, and adding to conviction holdings at reasonable levels. 

Aberdeen Asset Management Asia Limited

Manager

1 June 2012

3.       BUSINESS REVIEW

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

Investment Objective

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

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

Investment Policy

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

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

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

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

Benchmark

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

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

Capital Structure

At 31 March 2012 the Company had a capital structure comprising voting capital of 14,591,572 Ordinary shares of 10p and 700,000 Ordinary shares held in treasury. After the year end, the 700,000 Ordinary shares held in treasury were cancelled. At 1 June 2012, these numbers were unchanged.

The Company also had bank borrowings, at 31 March 2012, of US$7,820,000, equivalent to approximately £4,895,000, and JPY179,000,000, equivalent to approximately £1,361,000, which rank for repayment ahead of any capital return to shareholders.

Total Assets and Net Asset Value

The Company had total assets of £58.7m and a net asset value* of 359.38 pence per Ordinary share at 31 March 2012.

Risk

Investment in emerging securities markets in the Asia-Pacific region, or in companies that derive significant revenue or profit from the Asia-Pacific region, involves a greater degree of risk than that usually associated with investment in more developed securities markets, including the risk of social, economic or political instability, which may have an adverse effect on economic returns or restrict investment opportunities.

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

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

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

The major risks associated with the Company are:

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

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

· Gearing risk: the Company currently uses gearing in the form of bank loans of US$7,820,000 (equivalent to approximately £4,895,000) and JPY179,000,000 (equivalent to approximately £1,361,000) under its loan facility of £10,000,000.

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

The particular risks of investment in Asia include:

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

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

· Companies in the Asia-Pacific region are not, in all cases, subject to the equivalent accounting, auditing and financial standards of those in the United Kingdom; and

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

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

Duration

The Company does not have a fixed life. However, under the Articles of Association, if in the 90 days preceding the Company's financial year-end (31 March) the Ordinary shares have been trading, on average, at a discount in excess of 12% to the underlying net asset value over the same period, notice will be given of a resolution to be proposed at the following Annual General Meeting to approve the continuation of the Company. In the 90 days to 31 March 2012, the Ordinary shares traded at an average discount of 11.57% to the underlying net asset value, therefore no resolution will be put to the Company's shareholders at the forthcoming AGM.

4.       STATEMENT OF DIRECTORS' RESPONSIBILITIES

The Directors 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 laws). 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 and profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

•      select suitable accounting policies and then apply them consistently;

•      make judgments and estimates that are reasonable and prudent;

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

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

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They 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 are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

To the best of my knowledge:

•      the financial statements have been prepared in accordance with the applicable accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and that

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

Neil Gaskell

Chairman

1 June 2012

5.    RESULTS

Financial Highlights

	31 March 2012	31 March 2011	% change
Total assets	£58,695,000	£59,536,000	-1.4
Total equity shareholders' funds (net assets)	£52,439,000	£53,805,000	-2.5
Share price (mid market)	318.00p	304.00p	+4.6
Net asset value per share	359.38p	347.30p	+3.5
Discount to net asset value	11.5%	12.5%
MSCI AC Asia Pacific (including Japan) Index (in Sterling terms){B}	79.24	84.70	-6.4
Actual gearing{A}	10.2%	9.2%
Potential gearing{A}	11.9%	10.7%
Operating costs
Total expense ratio{A}	1.33%	1.26%
Earnings
Total return per share	12.05p	32.46p
Revenue return per share	6.03p	4.65p
Proposed final dividend per share	4.75p	3.25p
Revenue reserves (prior to payment of proposed final dividend)	£1,434,000	£1,012,000
{A} Calculated excluding performance fee and other expenses charged to capital.
{B} Index figures stated on a capital only basis.

Performance (total return) {A}

	1 year % return	3 year % return	5 year % return
Share price	+5.8%	+97.2%	+51.9%
Net asset value	+4.4%	+91.2%	+53.6%
MSCI AC Asia Pacific (including Japan) Index (in Sterling terms)	-3.7%	+51.7%	+22.2%
Source: Aberdeen Asset Management, Factset & Morningstar.
{A}Total return represents capital return plus dividends reinvested.

Dividends

	Rate	Ex-dividend date	Record date	Payment date
Proposed final dividend 2012	4.75p	27 June 2012	29 June 2012	27 July 2012
Final dividend 2011	3.25p	29 June 2011	1 July 2011	29 July 2011

INCOME STATEMENT

		Year ended 31 March 2012			Year ended 31 March 2011
		Revenue	Capital	Total	Revenue	Capital	Total
	Notes	£'000	£'000	£'000	£'000	£'000	£'000
Gains on investments	9	-	1,425	1,425	-	4,729	4,729
Income	2	1,788	-	1,788	1,525	-	1,525
Exchange (losses)/gains	16	-	(37)	(37)	-	51	51
Investment management fee	3	(435)	-	(435)	(408)	-	(408)
Performance fee	3	-	(426)	(426)	-	(422)	(422)
Administrative expenses	4	(253)	(32)	(285)	(238)	(23)	(261)
		_____	_____	_______	______	______	_____
Net return before finance costs and taxation		1,100	930	2,030	879	4,335	5,214
Finance costs	5	(102)	-	(102)	(88)	-	(88)
		_____	_____	_______	______	______	_____
Net return on ordinary activities before taxation		998	930	1,928	791	4,335	5,126
Taxation on ordinary activities	6	(72)	(6)	(78)	(70)	(28)	(98)
		_____	_____	_______	______	______	_____
Net return on ordinary activities after taxation		926	924	1,850	721	4,307	5,028
		_____	_____	_______	______	______	_____
Return per Ordinary share (pence)	8	6.03	6.02	12.05	4.65	27.81	32.46
		_____	_____	_______	______	______	_____
The total column of this statement represents the profit and loss account of the Company.
No Statement of Total Recognised Gains and Losses has been prepared as all gains and losses have been reflected in the Income Statement.
All revenue and capital items in the above statement derive from continuing operations.
The accompanying notes are an integral part of the financial statements.

BALANCE SHEET

		As at	As at
		31 March 2012	31 March 2011
	Notes	£'000	£'000
Fixed assets
Investments designated at fair value through profit or loss	9	58,048	59,038
		___________	___________
Current assets
Debtors	10	330	281
Cash at bank and in hand		913	776
		___________	___________
		1,243	1,057
		___________	___________
Creditors: amounts falling due within one year	11
Foreign currency bank loans		(6,256)	(5,731)
Other creditors		(596)	(559)
		___________	___________
		(6,852)	(6,290)
		___________	___________
Net current liabilities		(5,609)	(5,233)
		___________	___________
Net assets		52,439	53,805
		___________	___________
Share capital and reserves
Called-up share capital	12	1,529	1,549
Special reserve		-	398
Capital redemption reserve		2,203	2,183
Capital reserve	13	47,273	48,663
Revenue reserve		1,434	1,012
		___________	___________
Equity shareholders' funds		52,439	53,805
		___________	___________
Net asset value per Ordinary share (pence)	14	359.38	347.30
		___________	___________

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

For the year ended 31 March 2012
			Capital
	Share	Special	redemption	Capital	Revenue
	capital	reserve	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 March 2011	1,549	398	2,183	48,663	1,012	53,805
Purchase of own shares for cancellation	(6)	(102)	6	(79)	-	(181)
Purchase of own shares to be held in treasury	-	(296)	-	(2,235)	-	(2,531)
Treasury shares cancelled	(14)	-	14	-	-	-
Return on ordinary activities after taxation	-	-	-	924	926	1,850
Dividend paid (note 7)	-	-	-	-	(504)	(504)
	_____	_____	_______	______	______	_____
Balance at  31 March 2012	1,529	-	2,203	47,273	1,434	52,439
	_____	_____	_______	______	______	_____
For the year ended 31 March 2011
			Capital
	Share	Special	redemption	Capital	Revenue
	capital	reserve	reserve	reserve	reserve	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Balance at 31 March 2010	1,549	398	2,183	44,356	523	49,009
Return on ordinary activities after taxation	-	-	-	4,307	721	5,028
Dividend paid (note 7)	-	-	-	-	(232)	(232)
	_____	_____	_______	______	______	_____
Balance at  31 March 2011	1,549	398	2,183	48,663	1,012	53,805
	_____	_____	_______	______	______	_____

CASHFLOW STATEMENT

		Year ended		Year ended
		31 March 2012		31 March 2011
	Notes	£'000	£'000	£'000	£'000
Net cash inflow/(outflow) from operating activities	15		353		(256)
Servicing of finance
Bank and loan interest paid			(114)		(81)
Taxation
Capital gains tax on sale of Indian shares			(6)		(28)
Financial investment
Purchases of investments		(5,400)		(6,618)
Sales of investments		8,038		3,885
Expenses allocated to capital		(6)		(3)
			______		______
Net cash inflow/(outflow) from financial investment			2,632		(2,736)
			______		______
Equity dividends paid			(504)		(232)
			______		______
Net cash inflow/(outflow) before financing			2,361		(3,333)
Financing
Purchase of Ordinary share capital		(2,712)		-
Loan drawn down		477		3,514
		______	______	______	______
Net cash (outflow)/inflow from financing			(2,235)		3,514
			______		______
Increase in cash	16		126		181
			______		______
Reconciliation of net cash flow to movements in net debt
Increase in cash as above			126		181
Increase in borrowings			(477)		(3,514)
			______		______
Change in net debt resulting from cash flows			(351)		(3,333)
Exchange movements			(37)		51
			______		______
Movement in net debt in the year			(388)		(3,282)
Opening net debt			(4,955)		(1,673)
			______		______
Closing net debt	16		(5,343)		(4,955)
			______		______

NOTES :

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

		2012	2011
2.	Income	£'000	£'000
	Income from investments designated at fair value through profit and loss
	UK dividend income	184	105
	Overseas dividends	1,415	1,268
	Scrip dividends	189	150
		______	______
		1,788	1,523
		______	______
	Other income
	Underwriting commission	-	2
		______	______
	Total income	1,788	1,525
		______	______

		2012			2011
		Revenue	Capital	Total	Revenue	Capital	Total
3.	Investment management fee	£'000	£'000	£'000	£'000	£'000	£'000
	Investment management fee	435	-	435	408	-	408
	Performance fee	-	426	426	-	422	422
		______	______	______	______	______	______
	Total	435	426	861	408	422	830
		______	______	______	______	______	______
	During the year the management fee was payable monthly in arrears and was based on an annual amount of 0.75% of total assets less current liabilities of the Company valued monthly. The agreement is terminable on six months' notice. The balance due to AAM Asia at the year end was £37,000 (2011 - £73,000).
	AAM Asia is entitled to a performance related fee of up to 15% of the portfolio's outperformance of the MSCI AC Asia Pacific (including Japan) Index (in Sterling terms) for the year in question.
	In the event that the Company outperforms this benchmark, but the year end net asset value per Ordinary share is less than at the previous year end, the performance fee is capped at 0.3% of year end net asset value. The performance fee is only payable where the final net asset value on which the fee is calculated exceeds the net asset value (adjusted by any change in the benchmark index over the period) on which the last performance fee was paid.
	There was a performance fee due to AAM Asia for the year ended 31 March 2012 in the sum of £426,000 (2011 - £422,000).

		2012			2011
		Revenue	Capital	Total	Revenue	Capital	Total
4.	Administrative expenses	£'000	£'000	£'000	£'000	£'000	£'000
	Investor relations/Marketing initiative	44	-	44	38	-	38
	Directors' fees	70	-	70	63	-	63
	Safe custody fees	21	6	27	20	3	23
	Transaction costs on investment purchases	-	26	26	-	20	20
	Auditors' remuneration:
	- audit of the financial statements{A}	20	-	20	20	-	20
	- other	-	-	-	1	-	1
	Other	98	-	98	96	-	96
		______	______	_____	______	______	_____
		253	32	285	238	23	261
		______	______	_____	______	______	_____
	{A} Includes work carried out on the Directors' Remuneration Report, Statement of Corporate Governance and Directors' Report.
	The Company has an agreement with Aberdeen Asset Managers Limited ("AAM") for the provision of marketing services in relation to the Company's participation in the Aberdeen Investment Trust Share Plan and ISA. The total fees paid and payable under the agreement were £44,000 (2011 - £38,000) and the accrual to AAM at the year end was £2,000 (2011 - £nil).
	No pension contributions were made in respect of any of the Directors.
	The Company does not have any employees.

		2012			2011
		Revenue	Capital	Total	Revenue	Capital	Total
5.	Finance costs	£'000	£'000	£'000	£'000	£'000	£'000
	Interest on bank loans and overdrafts	102	-	102	88	-	88
		______	______	_____	______	______	_____

			2012			2011
			Revenue	Capital	Total	Revenue		Capital		Total
6.	Taxation on ordinary activities		£'000	£'000	£'000	£'000		£'000		£'000
	(a)	Analysis of charge for the year
		Capital gains tax on sale of Indian shares	-	6	6	-		28		28
		Irrecoverable overseas taxation	72	-	72	70		-		70
			______	______	_____	______		______		_____
		Current taxation	72	6	78	70		28		98
			______	______	_____	______		______		_____
	(b)	Factors affecting current tax charge for the year
		The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The differences can be explained below:
							2012		2011
							£'000		£'000
		Net return on ordinary activities before taxation					1,928		5,126
							______		______
		Net return on ordinary activities multiplied by standard rate of corporation tax in the UK of 26% (2011 - 28%)					501		1,435
		Effects of:
		UK dividend income					(48)		(30)
		Gains on investments not subject to UK tax					(371)		(1,324)
		Currency losses/(gains) not taxable					10		(14)
		Tax on capital expenses					119		125
		Capital gains tax on sale of Indian shares					6		28
		Irrecoverable overseas withholding tax suffered					72		70
		Excess management expenses and loan relationship deficits not utilised in period					204		205
		Non-taxable overseas dividends					(417)		(397)
		Expenses not deductible for tax purposes					2		-
							______		______
		Current tax charge for the year					78		98
							______		______
	(c)	Provision for deferred taxation
		At 31 March 2012 the Company had surplus management expenses and loan relationship debits with a tax value of £1,151,000 (2011 - £930,000) in respect of which a deferred tax asset has not been recognised. This is because the Company is not expected to generate taxable income in the future in excess of deductible expenses of that future period, and accordingly, it is unlikely that the Company will be able to reduce future tax liabilities through the use of existing surplus expenses.

		2012	2011
7.	Dividends	£'000	£'000
	Amounts recognised as distributions to equity holders in the year:
	Final dividend 2011 - 3.25p (2010 - 1.50p)	504	232
		______	______
	In order to comply with the requirements of Sections 1158-1159 of the Corporation Tax Act 2010 the Company is required to make a final dividend distribution.
	The proposed final dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability.
	The table below sets out the total dividends proposed in respect of the financial year, which is the basis on which the requirements of Sections 1158 -1159 are considered. The revenue available for distribution by way of dividend for the year is £1,434,000 (2011 - £1,012,000). Presently, only the revenue reserve can be used for the distribution of dividends.
		2012	2011
		£'000	£'000
	Proposed final dividend for 2012 - 4.75p per Ordinary share (2011 - 3.25p)	693	504
		______	______
	The proposed final dividend will be paid, subject to approval at the Annual General Meeting, on 27 July 2012 to shareholders on the register at the close of business on 29 June 2012.

		2012	2012	2011	2011
8.	Return per Ordinary share	p	£'000	p	£'000
	Returns per share are based on the following figures:
	Revenue return	6.03	926	4.65	721
	Capital return	6.02	924	27.81	4,307
		______	______	_____	______
	Total return	12.05	1,850	32.46	5,028
		______	______	_____	______
	Weighted average Ordinary shares in issue		15,349,072		15,492,367
			_________		_________

		Listed	Listed
		overseas	in UK	Total
9.	Investments designated at fair value through profit or loss	£'000	£'000	£'000
	Opening book cost	39,152	3,343	42,495
	Opening investment holding gains	14,902	1,641	16,543
	Opening fair value	54,054	4,984	59,038
	Movements in the year:
	Purchases at cost (excluding transaction costs)	4,955	688	5,643
	Sales - proceeds (net of transaction costs)	(8,058)	-	(8,058)
	Sales - gains on sales	1,434	-	1,434
	Increase/(decrease) in investment holding gains	709	(718)	(9)
		______	______	______
	Closing fair value	53,094	4,954	58,048
		______	______	______
		Listed	Listed
		overseas	in UK	Total
		£'000	£'000	£'000
	Closing book cost	37,483	4,031	41,514
	Closing investment holding gains	15,611	923	16,534
		______	______	______
		53,094	4,954	58,048
		______	______	______
			2012	2011
			£'000	£'000
	Investments listed on a recognised investment exchange		58,048	59,038
			______	______
			2012	2011
	Gains on investments		£'000	£'000
	Gains on sales		1,434	1,601
	(Decrease)/increase in investment holding gains		(9)	3,128
			______	______
			1,425	4,729
			______	______
	Transaction costs
	During the year expenses were incurred in acquiring or disposing of investments designated as fair value through profit or loss. Expenses incurred in acquiring investments have been expensed through capital and are included within administration expenses in the Income Statement, whilst expenses incurred in disposing of investments have been expensed through capital and are included within gains on investments in the Income Statement. The total costs were as follows:
			2012	2011
			£'000	£'000
	Purchases		26	20
	Sales		25	11
			______	______
			51	31
			______	______

		2012	2011
10.	Debtors: amounts falling due within one year	£'000	£'000
	Amounts due from brokers	20	-
	Prepayments and accrued income	306	279
	Other loans and receivables	4	2
		______	______
		330	281
		______	______

			2012	2011
11.	Creditors: amounts falling due within one year		£'000	£'000
	(a)	Foreign currency bank loans	6,256	5,731
			______	______
		In January 2011, the Company entered into a two year £10,000,000 multi-currency revolving credit facility with Standard Chartered Bank. At the year end, US$7,820,000 (2011 - US$6,960,000) equivalent to £4,895,000 (2011 - £4,342,000) had been drawn down from Standard Chartered Bank which is due to mature on 28 June 2012. At the year end, JPY179,000,000 (2011 - JPY184,500,000) equivalent to £1,361,000 (2011 - £1,389,000) had been drawn down from Standard Chartered Bank which is due to mature on 28 June 2012.
		The terms of the loan facility with Standard Chartered Bank contain a covenant that total borrowings should not exceed 25% of the net asset value of the Company at any time and that the net asset value should not fall below £30,000,000 at any time. The Company met this covenant throughout the period.
			2012	2011
	(b)	Other creditors and accrued expenses	£'000	£'000
		Amounts due to brokers	80	-
		Performance fee	426	422
		Other creditors	90	137
			______	______
			596	559
			______	______

			2012	2011
12.	Called-up share capital		£'000	£'000
	Allotted, called-up and fully paid
	Ordinary shares of 10p each		1,459	1,549
	Treasury shares		70	-
			______	______
			1,529	1,549
			______	______
		Ordinary shares	Treasury shares	Total
		Number	Number	Number
	At 1 April 2011	15,492,367	-	15,492,367
	Ordinary shares bought back for cancellation	(60,000)	-	(60,000)
	Ordinary shares bought back to be held in treasury	(840,795)	840,795	-
	Treasury shares cancelled	-	(140,795)	(140,795)
		________	________	_________
	At 31 March 2012	14,591,572	700,000	15,291,572
		________	________	_________
	During the year, 900,795 (2011 - nil) Ordinary shares of 10p each (representing 5.9% of the issued Ordinary share capital at 31 March 2012) were bought back at a total cost of £2,712,000 (2011 - £nil) including expenses. This number includes 840,795 Ordinary shares of 10p each which were placed in treasury. Subsequent to this, 140,795 of these shares were cancelled.
	Post year end, the remaining 700,000 shares held in treasury have been cancelled.

		2012	2011
13.	Capital reserve	£'000	£'000
	At 1 April	48,663	44,356
	Movement in investment holdings fair value (losses)/gains	(9)	3,128
	Gains on realisation of investments at fair value	1,434	1,601
	Exchange (losses)/gains	(37)	51
	Performance fee	(426)	(422)
	Administrative expenses	(32)	(23)
	Capital gains tax on sale of Indian shares	(6)	(28)
	Purchase of own shares for cancellation	(79)	-
	Purchase of own shares to be held in treasury	(2,235)	-
		______	______
	At 31 March	47,273	48,663
		______	______
	The capital reserve includes investment holding gains amounting to £16,534,000 (2011 - £16,543,000) as disclosed in note 9.

14.	Net asset value per share
	The net asset value per share and the net asset values attributable to Ordinary shareholders at the year end calculated in accordance with the Articles of Association were as follows:
		Net asset value		Net asset values
		per share		attributable
		2012	2011	2012	2011
		p	p	£'000	£'000
	Ordinary shares	359.38	347.30	52,439	53,805
		______	______	______	______
	The movements during the year of the assets attributable to the Ordinary shares were as follows:
				2012	2011
				£'000	£'000
	Net assets attributable at 1 April			53,805	49,009
	Buyback of Ordinary shares (including expenses)			(2,712)	-
	Capital return for the year			924	4,307
	Revenue on ordinary activities after taxation			926	721
	Dividend paid			(504)	(232)
				______	______
	Net assets attributable at 31 March			52,439	53,805
				______	______
	The net asset value per Ordinary share is based on net assets, and on 14,591,572 (2011 - 15,492,367) Ordinary shares, being the number of Ordinary shares in issue at the year end.

15.	Reconciliation of net return before finance costs and taxation	2012	2011
	to net cash inflow from operating activities	£'000	£'000
	Return on ordinary activities before finance costs and taxation	2,030	5,214
	Adjustments for:
	Gains on investments	(1,425)	(4,729)
	Expenses taken to capital reserve	32	23
	Foreign exchange movements	37	(51)
	Increase in accrued income	(27)	(79)
	(Increase)/decrease in other debtors	(2)	3
	(Decrease)/increase in other creditors	(35)	14
	Increase/(decrease) in performance fee creditor	4	(431)
	Overseas withholding tax suffered	(72)	(70)
	Scrip dividends included in investment income	(189)	(150)
		______	______
	Net cash inflow/(outflow) from operating activities	353	(256)
		______	______

		1 April	Cash	Exchange	31 March
		2011	flow	movements	2012
16.	Analysis of changes in net debt	£'000	£'000	£'000	£'000
	Cash at bank	776	126	11	913
	Debts falling due within one year	(5,731)	(477)	(48)	(6,256)
		______	______	______	______
	Net debt	(4,955)	(351)	(37)	(5,343)
		______	______	______	______

17.	Related party disclosures
	There were no material related party transactions during the year.

18.	Financial instruments
	Risk management
	The Company's financial instruments comprise securities and other investments, cash balances, loans and debtors and creditors that arise directly from its operations; for example, in respect of sales and purchases awaiting settlement, and debtors for accrued income.
	The main financial risks that the Company faces from its financial instruments are market price risk, interest rate risk, liquidity risk and credit risk.
	The Board has established policies for managing each of these risks and reviews regularly their implementation by the Manager. The Company's policies for managing these risks are summarised below and have been applied throughout the year.
	Market price risk
	The fair value of, or future cash flows from, a financial instrument held by the Company may fluctuate because of changes in market prices. This market risk comprises two elements - security price risk and currency risk.
	Security price risk
	Changes in market prices for the Company's portfolio of securities directly affect their reported value in the Balance Sheet.
	It is the Board's investment policy for the Company's assets to be invested in a selected portfolio of securities in quoted companies. The Manager has a dedicated investment management process, which ensures that the risk inherent in this investment policy is controlled. Underlying the process is the belief that risk is not that individual stock prices fluctuate in the short term, or that movement in the value of the portfolio deviates from the benchmark but that risk is investment in poorly managed expensive companies which the Manager does not understand. In-depth research and stock selection procedures are in place based on this risk control philosophy. The portfolio is reviewed on a periodic basis by the Manager's Investment Committee and by the Board.
	Security price sensitivity
	If market prices at the Balance Sheet date had been 10% higher or lower while all other variables remained constant, the return attributable to Ordinary shareholders for the year ended 31 March 2012 would have increased/(decreased) by £5,805,000 (2011 increased/(decreased) by £5,904,000) and equity reserves would have increased/(decreased) by the same amount.
	Foreign currency risk
	All of the Company's investment portfolio is invested in overseas securities and the Balance Sheet, therefore, can be significantly affected by movements in foreign exchange rates. It is not the Company's policy to hedge this risk on a continuing basis but the Company may, from time to time, match specific overseas investment with foreign currency borrowings. The Company's borrowings, as detailed in note 11, are also in foreign currency.
	The revenue account is subject to currency fluctuation arising on dividends paid in foreign currencies. The Company does not hedge this currency risk.
	Foreign currency risk exposure by currency of denomination:
		31 March 2012			31 March 2011
			Net	Total		Net	Total
		Overseas	monetary	currency	Overseas	monetary	currency
		investments	assets	exposure	investments	assets	exposure
		£'000	£'000	£'000	£'000	£'000	£'000
	Australian Dollar	2,917	-	2,917	2,359	-	2,359
	Hong Kong Dollar	10,707	-	10,707	9,519	-	9,519
	Indian Rupee	4,212	-	4,212	6,418	-	6,418
	Indonesian Rupiah	598	-	598	590	-	590
	Japanese Yen	12,904	(1,361)	11,543	13,367	(1,270)	12,097
	Korean Won	2,171	-	2,171	3,366	-	3,366
	Malaysian Ringgit	1,728	-	1,728	1,933	-	1,933
	Philippine Peso	1,303	20	1,323	1,171	-	1,171
	Singapore Dollar	8,681	-	8,681	8,461	-	8,461
	Sri Lanka Rupee	650	-	650	-	-	-
	Taiwan Dollar	2,452	156	2,608	2,188	64	2,252
	Thailand Baht	2,092	-	2,092	2,289	-	2,289
	US Dollar	2,679	(4,792)	(2,113)	2,393	(4,142)	(1,749)
		______	______	______	______	______	______
	Total	53,094	(5,977)	47,117	54,054	(5,348)	48,706
		______	______	______	______	______	______
	Foreign currency sensitivity
	There is no sensitivity analysis included as the Company's significant foreign currency financial instruments are in the form of equity investments, which have been included within security price risk sensitivity analysis so as to show the overall level of exposure. Due consideration is paid to foreign currency risk throughout the investment process.
	Interest rate risk
	Interest rate movements may affect the level of income receivable on cash deposits and interest payable on the Company's variable rate borrowings.
	The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account when making investment and borrowing decisions.
	Interest rate sensitivity
	Movements in interest rates would not significantly affect net assets attributable to the Company's shareholders and total profit.
	Liquidity risk
	This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. Liquidity risk is not considered to be significant as the Company's assets mainly comprise readily realisable securities which can be sold to meet funding requirements if necessary and short-term flexibility is achieved through the use of loan facilities, details of which may be found in note 11.
	Liquidity risk exposure
	At 31 March 2012 and 31 March 2011 the Company's bank loans, amounting to £6,256,000 and £5,731,000, respectively, were both due for repayment or roll-over within six months along with interest due on the amount of the principal at the same time.
	Credit risk
	This is the risk of failure of the counterparty to a transaction to discharge its obligations under that transaction that could result in the Company suffering a loss.
	The risk is not significant given the relatively small amounts involved, and is managed as follows:
	·     investment transactions are carried out with a large number of brokers of good quality credit standing; and
	·     cash is held only with reputable banks with high quality external credit enhancements.
	In addition, both stock and cash reconciliations to the Custodians' records are performed on a daily basis to ensure discrepancies are investigated on a timely basis.
	None of the Company's financial assets is secured by collateral or other credit enhancements and none are past due or impaired.
	Credit risk exposure
	The amount of cash at bank and in hand of £913,000 (2011 - £776,000) and debtors of £330,000 (2011 - £281,000) in the Balance Sheet represent the maximum exposure to credit risk at 31 March.
	Fair values of financial assets and financial liabilities
	All financial assets and financial liabilities of the Company are included in the Balance Sheet at fair value.

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

20.	Contingent liabilities
	The Company had no contingent liabilities at 31 March 2012.

21.	Fair value hierarchy
	FRS 29 'Financial Instruments: Disclosures' requires an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:
	Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities;
	Level 2: inputs other than quoted prices included within Level 1 that are observable for the assets or liability, either directly (ie as prices) or indirectly (ie derived from prices); and
	Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
	All of the Company's investments are in quoted equities (2011 - same) actively traded on recognised stock exchanges, with their fair value being determined by reference to their quoted bid prices at the reporting date. The total value of the investments (2012 - £58,048,000; 2011 - £59,038,000) have therefore been deemed as Level 1.

Additional notes for Annual Financial Report:

The final dividend, subject to shareholder approval, will be paid on 27 July 2012 to shareholders on the register at the close of business on 29 June 2012. The ex-dividend date is 27 June 2012.

This Annual Financial Report announcement is not the Company's statutory accounts.  The statutory accounts for the year ended 31 March 2011 have been delivered to the Registrar of Companies.  The statutory accounts for the years ended 31 March 2011 and 31 March 2012 received an audit report which was unqualified, did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying the report and did not include a statement under section 498(2) or (3) of the Companies Act 2006.  The statutory accounts for the financial year ended 31 March 2012 have been approved by the Board and audited but will not be filed with the Registrar of Companies until after the Company's Annual General Meeting which will be held at 11.00am on Tuesday, 24 July 2012 at Bow Bells House, One Bread Street, London EC4M 9HH.

The Annual Report will be posted to shareholders in June 2012 and copies will be available from the Manager or from the Company's website (www.all-asia.co.uk*).

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

*Neither the Company's website nor the content of any website accessible from hyperlinks on that website (or any other website) is (or is deemed to be) incorporated into, or forms (or is deemed to form) part of this announcement.

For Aberdeen All Asia Investment Trust PLC

Aberdeen Asset Management PLC, Secretary

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