TIDMMCP

RNS Number : 2085O

Martin Currie Pacific Trust PLC

26 May 2015

MARTIN CURRIE PACIFIC TRUST PLC (the "company")

Annual Financial Results

Year to 31 March 2015

The financial information set out below does not constitute the company's statutory accounts for the year ended 31 March 2015 or financial period ended 31 March 2014 but is derived from those accounts. Statutory accounts for 2014 have been delivered to the Registrar of Companies and those for 2015 will be delivered following the company's annual general meeting.

The auditor's have reported on those accounts; their report was 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.

A copy of the annual report and accounts has also been submitted to the National Storage Mechanism and will shortly be available for inspection at: www.Hemscott.com/nsm.do

The annual general meeting of the company will be held at the offices of Martin Currie, 1 Bartholomew Lane, London, EC2N 2AX on 6 July 2015 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 March 2015, which are required to be published are set out on the following pages.

Financial summary

Key data

 
                                      As at      As at  % change 
                              31 March 2015   31 March 
                                                  2014 
---------------------------  --------------  ---------  -------- 
 Net asset value per share 
  (cum income)                       361.2p     313.4p      15.2 
---------------------------  --------------  ---------  -------- 
 Net asset value per share 
  (ex income)                        358.7p     307.6p      16.6 
---------------------------  --------------  ---------  -------- 
 Share price                         320.8p     263.8p      21.6 
---------------------------  --------------  ---------  -------- 
 Discount(++)                         11.2%      15.8% 
---------------------------  --------------  ---------  -------- 
 

Total returns+

 
                       Year ended  13 month period ended 
                    31 March 2015         31 March 2014* 
-----------------  --------------  --------------------- 
 Net asset value 
  per share(#)              19.3%                (10.7%) 
-----------------  --------------  --------------------- 
 Share price                24.8%                 (8.8%) 
-----------------  --------------  --------------------- 
 

Income

 
                       Year ended    13 month period   % change 
                         31 March              ended 
                             2015    31 March 2014** 
--------------------  -----------  -----------------  --------- 
 Revenue return per 
  share                     4.82p              8.31p     (42.0) 
--------------------  -----------  -----------------  --------- 
 Dividend per share         7.50p              7.50p        0.0 
--------------------  -----------  -----------------  --------- 
 

Ongoing charges(*)

 
                    Year ended   13 month period 
                      31 March    ended 31 March 
                          2015             2014* 
-----------------  -----------  ---------------- 
 Ongoing charges          1.2%              1.3% 
-----------------  -----------  ---------------- 
 

Source: Martin Currie Investment Management Limited.

The combined effect of the rise or fall in the net asset value or share price, together with any dividends paid.

++Figures are inclusive of income in line with the Association of Investment Companies ('AIC') guidance.

(#) The net asset value is exclusive of income with dividends re-invested.

* The company changed its year end to 31 March effective 31 March 2014.

** Ongoing charges are calculated as a percentage of shareholders' funds using average net assets over the year and, for the 13 month period ended 31 March 2014, are annualised figures, calculated in line with the AIC's recommended methodology.

Chairman's statement

Performance

Asian markets performed positively over the year to 31 March 2015 and this was reflected in better results for your company. The net asset value ('NAV') increased by 15.2% over the year while the share price rose by 21.6%. Expressed as total return including income, the NAV increased 19.3% and the share price rose 24.8%. To put this into context, the total return of the MSCI Asia ex Japan Index was up 24.7% in sterling terms for the year to 31 March 2015. Furthermore, these results have been achieved in a year of important change with the rebranding of the company to the new investment mandate in July 2014.

The fall in oil and commodity prices have benefitted Asian consumption across the region. With no consequent pressure on inflation, Asian central banks have been able to cut interest rates, while the Chinese authorities have embarked on aggressive monetary easing to combat fiscal retrenchment, stimulate the real estate and stock markets to head off mounting pressures on economic growth, which stalled to almost zero in real terms according to some commentators. After a period of underperformance, Asian stock markets picked up from July 2014 both on a relative and absolute basis. Shareholders have also benefitted from the weakness of sterling. The overall tone in stock markets continues to be set by the major central banks and is particularly affected by US monetary policy. An improving US economy appears insufficiently robust to suggest any urgency for a hike in interest rates by the Federal Open Markets Committee. Although the backdrop is still dogged by geopolitical turbulence and uncertainties - including potential confrontations in North Korea and the South China Sea, Asian stock valuations have moved closer to historical averages but remain attractive given secular growth trends.

New investment mandate - Asia Long-Term Unconstrained ('ALTU')

Shareholders overwhelmingly voted to adopt the Asia Long-Term Unconstrained or 'ALTU' strategy proposed by the board at a General Meeting on 10 July 2014. The full rationale for the change is laid out in the UK Listing Authority ('UKLA') circular sent to shareholders in May 2014. Martin Currie introduced ALTU in open-ended form in 2008 and has achieved high double digit annual returns since then. Your company now offers shareholders access to this strategy in closed-end form with the attraction of a discount to net assets and daily dealing unlike the open-ended product. Of course, the disadvantage remains the relative lack of liquidity - although daily volume in the company's shares has picked up by nearly 20% to an average of 50,737 in the calendar year to date compared to 42,436 for the same period in 2014.

As previously reported in detail to shareholders, we now have an absolute rather than relative investment objective - abandoning the customised MSCI Asia including Japan index previously used as a benchmark and removing the requirement to invest in Japan and Australasia. Consequently, the company has been reclassified as an Asia ex Japan peer group as defined by the AIC. The new mandate allows the manager a high degree of flexibility to invest with conviction in a concentrated portfolio, currently comprising 28 stocks. The investment process involves rigorous stock selection and a long-term approach to fulfil the objective of achieving returns commensurate with Asian region nominal GDP growth rates. We have seen an encouraging start. Since 1 August 2014, the NAV has risen by 12.3% and the share price by 14.9% in the period to 31 March 2015. Furthermore, the discount to NAV has narrowed over that period from 12.9% to 11.2%, broadly in line with our peers in the AIC Asia ex Japan sector.

Continuation vote

We will hold a continuation vote at the Annual General Meeting ('AGM') this July to confirm that shareholders want the company to continue in its present form. The board commends confirmation of the ALTU strategy to shareholders and accordingly recommends that shareholders vote in favour of the resolution for continuation. However, the board believes it is also in the best interests of shareholders to have the opportunity to vote for continuation on a more frequent basis. Therefore, a resolution is being put to the AGM to amend the company's articles of association so that a continuation vote is held every three years rather than every five years. If this resolution is passed along with the continuation resolution, it will result in the next continuation vote of the company being held in 2018.

Name change

A proposal will also be put to shareholders at the AGM, seeking approval to change the name of the company to the Martin Currie Asia Unconstrained Trust plc. Your board believes the proposed new name reflects the company's investment mandate and geographical positioning.

Revenue and dividends

Subject to shareholders' approval, the board recommends a final dividend of 5.00p to be paid on 7 August 2015 to shareholders on the register on 17 July. Together with the interim dividend a total dividend for the year of 7.50p is unchanged from last year. Earnings per share at 4.82p fell from the previous year, which actually represented a 13-month period because of the change in year end from February to March in 2014 and because of the transition to the new mandate. In future, shareholders cannot expect the same level of dividend increases as over the last five years partly because of the utilisation and consequent run down of revenue reserves and partly because of the new mandate investing in companies positioned for growth. Nevertheless, the board is cognisant of the importance of income to shareholders within the total return equation and will be exploring options to grow the level of dividend.

Board

John Scott will retire from the board following the conclusion of the AGM after 13 years of service. On behalf of shareholders and fellow directors both past and present, I would like to extend gratitude and appreciation for his most valuable contributions over this period. Anja Balfour will take over as chairman of the audit committee.

Regulation

Under the Alternative Investment Fund Managers Directive ('AIFMD') the company was required to appoint an external depositary and an external AIFM which is supervised by the Financial Conduct Authority. As disclosed in the interim report, the company appointed Martin Currie Fund Management Limited on 22 July 2014 as its AIFM, an associated company of Martin Currie Investment Management Limited. References to Martin Currie or investment manager within this report refer to the services provided by Martin Currie Investment Management Limited or Martin Currie Fund Management Limited. No changes are proposed to the way the company's assets are invested as a result of AIFMD.

Investment manager

As reported previously to shareholders, Martin Currie is now an independently managed investment affiliate of Legg Mason, one of the world's largest asset management groups with more than US$700 billion under management. The board welcomes this development and Legg Mason's support of Martin Currie's investment trust business.

Outlook

Liquidity always drives stock markets and a change in monetary tailwinds could create an ebb tide squeezing US dollar funding in Asian and emerging markets. Equally, black swans are fledging with geopolitical tensions evident both in the region and elsewhere; certainly, black flags threaten to destabilise the Middle East. However, Asia retains its inexorable attractions for equity investors. The gap from weak global demand is being superseded by stronger intra regional trade as the ASEAN Economic Community becomes a single market. While the consumption story is well known, less so is the remarkable growth in spending on social media. Infrastructure spending around the region is forecast to be as high as US$3.5 trillion by 2020 with the new 'Silk Road' and as India emerges as a powerhouse. Asia is no longer just about a mercantilist export led growth model and remains a fertile hunting ground of investment opportunity for Andrew Graham and his team. The current portfolio appears well positioned to capture these trends.

The board will also continue to monitor political and regulatory developments both with the Scottish Government's agenda and the introduction of MIFID II proposals that investment trusts should be categorised as 'complex instruments' which could confuse retail investors over the merits of the sector so recently promoted by the Retail Distribution Review.

Harry Wells

26 May 2015

Manager's review

Market review

It has been an eventful financial year, both for your company and the markets in which we invest. In the 12 month period to the end of March 2015, Asian equities returned 24.7% in sterling terms, as measured by the MSCI AC Asia ex Japan Index.

Political change was a significant driver of Asian markets during the 12 months. At the start of the reporting period, Narendra Modi won an emphatic victory in India's General Election, securing the country's first majority government for 30 years. This led to renewed optimism on the outlook for India, quickly reflected in share prices which were bid higher through the year. Meanwhile, expectations for Chinese growth were reduced as the impact of reforms and a far-reaching anti-corruption drive negatively impacted spending, while a soft European economy dampened activity in the export sector. This all changed in the second half of the year, as signs of a recovery in export momentum, particularly to the US, combined with more supportive domestic policy steps to reignite interest in Chinese stocks. When the central bank reduced interest rates in November, the Shanghai Composite Index surged, as local investors buying on margin poured into the market.

In Thailand, the stock market ground higher in the immediate months after the military coup d'état in May. But as it became clear that outside the tourism sector there were few signs of improving activity, this momentum faded. In Indonesia early enthusiasm stemming from the election of Joko Widodo as president faded as it became apparent that his reliance on a coalition for power was already creating challenges for his policy agenda. Adjusted for a weaker rupiah, the Indonesian stock market made little headway over the period under review.

From a policy perspective, interest rates were cut in China, Korea, Indonesia, India and Thailand. There are a number of factors at play here - not least disappointing growth - but falling commodity prices, especially oil, have the potential to remove inflation risk in the short term raising the prospect of further accommodative measures, especially given that real interest rates are at post-global financial crisis highs in several countries.

Earnings expectations were, in general, revised down as the year progressed; this partly reflects a tendency among analysts and companies to have optimistic forecasts that are typically lowered as the year progresses. Overall, the scale of downgrades moderated as the year played out and, more recently, earnings expectations have stabilised. 2014 ended up being a subdued year for earnings, with overall reported net profit growth of 4%. Unsurprisingly, 2014 earnings growth was particularly weak in the energy and materials sectors. On the positive side, financials, healthcare and utilities all recorded double-digit earnings gains, while in quarter-on-quarter terms, the standout positive performer in the final quarter of the year was the technology sector.

Against a backdrop of moderating growth expectations globally, thematic interest in Asian markets was confined to a few areas only. Aside from enthusiasm for an Indian recovery and an eleventh-hour revival of interest in Chinese shares, stability or growth in earnings and dividends, or improving return on equity, were much in demand and stocks offering any of these re-rated through the year. The decline in bond yields also supported real asset stocks, such as REITs, as well as higher yielding low-growth stocks. Shares of companies in the Apple supply chain also performed well in anticipation of strong demand for the iPhone 6 series and launch of the Apple Watch. The portfolio benefitted from some of these themes.

Performance and activity

The 12 months under review encompass a period of substantial change in the company's investment policy. This change was executed in the first half of the fiscal year and the interim report for the six months to the end of September 2014 covers this in some detail. The full-year performance therefore includes a period of slightly more than three months when the portfolio was managed under the old investment mandate (a relative return Asia Pacific strategy that included Japan and Australia in its benchmark), and a transition month during which the portfolio was repositioned along the lines of Martin Currie's Asia Long Term Unconstrained ('ALTU') investment strategy. From August, the investment mandate formally moved to the ALTU strategy, subject to the investment guidelines of the company, with a view to providing returns commensurate with Asia ex Japan nominal GDP growth measured on a three-year rolling basis.

The NAV expanded by 19.3% in sterling terms in the year to the end of March 2015, helped by good performance of a number of portfolio holdings and a positive currency tailwind. Given the transition discussed above, this is a satisfactory result and reflects particularly strong gains from our investments in the telecom, financial, technology and consumer staples sectors. From a country perspective, our holdings listed in India, Hong Kong, China and Singapore were the main contributors to performance. Our exposure to the gaming sector was the principal detractor.

Positive contributors

AIA Group. Life insurer AIA Group performed well through the year on the back of a strong operating performance. This was reflected in good financial year 2014 results released at the end of February. The company has continued to deliver attractive growth and margin improvement. In keeping with the management goal of a progressive dividend, the company's dividend-per-share growth was 17.5% year on year ('yoy').

Infosys. The shares of this Indian IT service company have benefitted from improved expectations about the new business pipeline, with more business verticals indicating healthy demand. At the same time, analysts believe that Infosys has the greatest potential among peers to return excess cash to shareholders - although there are no imminent decisions likely on this matter. In our view, while the direction of travel is positive in terms of growth, we expect it to be lumpy on a quarterly basis.

Samsonite. Luggage maker Samsonite also performed well. The market has warmed to the new CEO's long-term vision for the company, despite results that were, at best, only in line with expectations. After an initial fall on the back of results, the stock has risen on positive guidance for 2015. We expect the company to begin to benefit from lower raw material costs from the second half of the year, although some of the cost savings will be reinvested in marketing.

China Mobile. China Mobile moved higher as the company continued its improved performance in the 4G era. Finally moving away from its uncompetitive home-grown 3G technology and poor handset line up, China Mobile has continued with the turnaround story we had been patiently waiting for. While the stable dividend payout ratio remains a source of frustration to some, we are encouraged by management's efforts on marketing costs and handset subsidies. The increasing percentage of data traffic being handled on China Mobile's WiFi network underlines its improvement in network quality.

Detractors

SJM Holdings. The Macau gaming sector performed poorly due to continuing concerns about falling mass-market table yields and rising labour costs squeezing margins across the sector. We believe these issues are at least, in part, cyclical and are manageable. In our view, the long-term potential for SJM, as well as the gaming sector in Macau, is attractive, as the market becomes accessible to a greater number of people, the product offering broadens and additional capacity is added to the market. Valuations are becoming increasingly appealing. With an attractive dividend - albeit pressured somewhat by capex commitments - and a strong brand, we believe SJM is well positioned to weather this turbulent period.

Genting. A sharp decline in VIP gaming revenues at Genting's Singapore gaming and leisure asset Resorts World Sentosa in the second half due to a combination of weak Chinese VIP demand and an adverse win ratio underpinned a 12% yoy earnings decline. While VIP demand is likely to remain sluggish, especially as the Singapore operation scales back credit provision, resilient mass market and normalising win ratio should see earnings improve. In Malaysia, capacity additions are underway at Genting's Malaysian casino resort via the company's Genting Integrated Tourism Plan, with investment of approximately MYR5 billion (approximately GBP900 million), encompassing new hotel, retail, gaming and theme-park facilities which will progressively open in the second half of 2016. Genting continues to expand its global gaming franchise, with new resorts in the pipeline for Jeju (South Korea) and Las Vegas. We expect the market to gradually focus its attention on these developments as 2015 progresses. The company is attractively valued and offers interesting growth angles, a strong balance sheet and improving free cash flow potential.

ENN Energy. Chinese gas distributor ENN Energy sold off after the company agreed to buy its chairman's North American liquid natural gas refuelling station business. While we are not enthusiastic about these assets in the near term, we believe the stock market overreacted, with the share price falling significantly more than the value of the deal. Some extra decline was warranted, as ENN has jeopardised its solid reputation for capital allocation, but the sell-off seemed excessive. ENN still has a good long-term future and we have retained our position in the stock. We believe the period of heavy investment at ENN has reached its peak and anticipate rising free cash flow over the next several years which should also translate into an increase in ENN's dividend-payout ratio.

Activity

In the interim report, we gave details on the portfolio's mandate transition and the trading activity this entailed. We confine our comments below to post-transition activity in the portfolio through to the end of March 2015.

Bought - LG Household & Health care ('LG H&H'). The company is transitioning from a Korean home, personal care and beverage company into a global cosmetics house. Having increased margins impressively over the last five years, we believe there is more scope to raise profitability, both from product mix shifts and within categories. Latterly, there have been two major concerns driving the company's valuation down and creating this buying opportunity. First was concern over a possible acquisition of Elizabeth Arden in the US. LG H&H's later withdrawal from this process shows a good degree of discipline, in our opinion. Second, there has been some concern over the CEO's intentions to leave the business. We believe the team behind him is capable and responsible for large amounts of the improvement we have seen over the years.

Bought - Tata Consultancy Services ('TCS'). TCS is our second holding in the Indian IT sector after Infosys. The business drivers for TCS are numerous: the increased use of outsourcing; expansion into new countries; market-share gains by Indian companies; the natural advantages of size that favour participation in the biggest and hardest projects; and the continual changes in IT technology. Of course there will be cyclical upswings and downswings, but behind this is a long-term structural growth opportunity.

Sold - Hindustan Unilever. We sold our position in Indian consumer-goods company Hindustan Unilever on valuation grounds. Hindustan Unilever remains an excellent operator with an enviable market position, but the valuation had skewed the risk/reward balance against us. We believe that the market has prematurely priced in a sales recovery and a full gain to former margins from lower commodity prices. We will monitor the stock for any disappointment on either issue and will be happy to buy back at a lower price.

Outlook

In 2015, Asian earnings (ex Japan and ex Australia) growth is currently forecast to be 9% yoy and, for 2016 10% yoy. These are the most conservative set of earnings growth forecasts that we have seen for five years, and give us some comfort that expectations are reasonably well grounded. We are still seeing modest downward revisions to growth overall, although the earnings picture appears to be relatively attractive when compared with the rest of the world. According to data released in early March, MSCI Asia ex Japan earnings-per-share ('EPS') revisions beat MSCI World EPS revisions in seven of the past eight months; meanwhile, 2014 ended with return on equity at 12.3%, up slightly from 2013's 12% and ending a declining trend in place since 2010.

Earnings growth for Asia (ex Japan) in 2015 is now forecast to be better than the US and Europe, which is interesting given that Asian stocks collectively trade on lower multiples of earnings and book value than their US and European counterparts (for example, forward price-to-earnings ratio of 13x for Asia (ex Japan) versus over 17x for the US and over 16x for Europe); Asia ex Japan valuations are however slightly above their five-year averages and approximately in line with their 10-year averages.

With the decline of energy prices and inflationary pressure in general, real interest rates have not come down much in Asia (ex Japan), which, in combination with subdued growth of current account surpluses in the region, has meant that financial conditions have tightened somewhat since the summer. While this is a constraint on growth, it also means that central banks have policy levers at their disposal should growth falter. We have already seen some easing of policy in the region and expect to see more in the months ahead.

Asia is currently enjoying a windfall from lower energy and other commodity prices - we think it is unlikely to provide much of a direct stimulus for consumption spending in the region but it has given a number of governments the opportunity to roll back fuel-price subsidies in a politically acceptable way, freeing up funding for much-needed investment in other areas such as infrastructure, education and health. It is impossible to say how long lower energy prices will persist, but we are hopeful that at least some of this subsidy elimination is intended to be permanent.

From a risk perspective, we are monitoring the possible fallout from the extended rally by the US dollar on countries with persistent deficits and weak foreign-exchange reserve positions, especially relative to their external funding requirements.

We remain optimistic about the growth of trade within the Asian region. At the end of 2015, the 10 members of ASEAN will become a single market, supporting the free flow of goods and services across the ASEAN economic community ('AEC'). The prospects are encouraging. With a population of some 620 million (larger than the European Union or North America), this could be an economic powerhouse in the making. The AEC will have the third-largest labour force in the world behind China and India, as well as a growing consumer class. Taken together as an integrated regional economy, the member states of the AEC comprise the world's seventh-largest economy. The possibilities are sufficiently encouraging that far-sighted corporations are already in the process of positioning themselves to take advantage.

Although only two new stocks were added to the portfolio in the second half of the year, this belies the considerable amount of effort expended on looking at new candidates for inclusion. In some cases we were put off by the deeper understanding we gained through our forensic accounting work of the liability profile of a business, or the structure of its returns. In other cases we found well-run companies but concluded that evolutions in the competitive environments in which they operated seriously challenged their chances of sustaining an attractive level of return. For other stocks the valuations were not sufficiently compelling upon final analysis and we have deferred purchase to a later date and at a lower price. In the meantime, the seven-strong team involved in researching new investment ideas for your company continue to see much that is of interest and we look forward to researching these and building future returns.

Andrew Graham

26 May 2015

PORTFOLIO SUMMARY

Portfolio distribution as at 31 March 2015 (%)

 
                       China & Hong   India   Singapore   Malaysia    UK   Taiwan 
                               Kong 
--------------------  -------------  ------  ----------  ---------  ----  ------- 
 Financials                    12.1       -         7.4          -     -        - 
 Consumer goods                 6.9     6.2           -        1.7     -        - 
 Utilities                      5.3       -           -          -     -        - 
 Consumer services              8.1       -         1.8        3.7     -        - 
 Industrials                    4.1       -         4.4          -     -        - 
 Telecommunications             5.8       -         6.6          -     -        - 
 Technology                       -    10.3           -          -     -      5.5 
--------------------  -------------  ------  ----------  ---------  ----  ------- 
 Total portfolio               42.3    16.5        20.2        5.4     -      5.5 
--------------------  -------------  ------  ----------  ---------  ----  ------- 
 Total portfolio 
  (31.03.2014)                 24.9     3.9         5.0        2.7   3.1      7.6 
--------------------  -------------  ------  ----------  ---------  ----  ------- 
 
 
                       Korea   Thailand   Japan   Australia   Indonesia   Total 
--------------------  ------  ---------  ------  ----------  ----------  ------ 
 Financials                -        4.0       -           -           -    23.5 
 Consumer goods          6.1          -       -           -           -    20.9 
 Utilities                 -          -       -           -           -     5.3 
 Consumer services         -          -       -           -           -    13.6 
 Industrials               -          -       -           -           -     8.5 
 Telecommunications        -          -       -           -           -    12.4 
 Technology                -          -       -           -           -    15.8 
--------------------  ------  ---------  ------  ----------  ----------  ------ 
 Total portfolio         6.1        4.0       -           -           -   100.0 
--------------------  ------  ---------  ------  ----------  ----------  ------ 
 Total portfolio 
  (31.03.2014)          10.0        5.6    24.4        11.9         0.9   100.0 
--------------------  ------  ---------  ------  ----------  ----------  ------ 
 
 
 By asset class (including    31 March 2015   31 March 2014 
  cash and borrowings) 
---------------------------  --------------  -------------- 
 Equities                             94.0%          101.7% 
 Cash                                  6.0%            1.3% 
 Borrowings                            0.0%          (3.0)% 
---------------------------  --------------  -------------- 
                                     100.0%          100.0% 
---------------------------  --------------  -------------- 
 
 
 Largest holdings                    31 March 2015   31 March 2015            31 March 2014   31 March 2014 
                                      Market value      % of total             Market value      % of total 
                                                         portfolio                                portfolio 
                                            GBP000                                   GBP000 
-------------------------  -----------------------  --------------  -----------------------  -------------- 
 AIA Group                                   9,960             7.7                    4,222             3.1 
 China Mobile                                7,529             5.8                    3,009             2.2 
 Taiwan Semiconductor                        7,134             5.5                    5,333             3.9 
 Infosys                                     7,127             5.5                    2,240             1.7 
 Samsung Electronics                         6,231             4.8                    6,088             4.5 
-------------------------  -----------------------  --------------  -----------------------  -------------- 
 Tata Consultancy 
  Services                                   6,166             4.8                        -               - 
 Samsonite International                     5,672             4.4                    1,726             1.3 
 Jardine Matheson 
  Holdings                                   5,672             4.4                        -               - 
 HSBC Holdings                               5,633             4.4                    2,296             1.7 
 Singtel                                     5,597             4.3                        -               - 
-------------------------  -----------------------  --------------  -----------------------  -------------- 
 United Overseas 
  Bank                                       5,333             4.1                    2,607             1.9 
 Television Broadcasts                       5,269             4.1                    1,863             1.4 
 Johnson Electric 
  Holdings                                   5,243             4.1                    1,281             1.0 
 Siam Commercial 
  Bank                                       5,128             4.0                        -               - 
 Genting Berhad                              4,773             3.7                    2,138             1.6 
-------------------------  -----------------------  --------------  -----------------------  -------------- 
 Hero Motocorp                               4,284             3.3                      583             0.4 
 Global Logistic 
  Properties                                 4,276             3.3                    2,842             2.1 
 ENN Energy                                  4,139             3.2                    1,372             1.0 
 Maruti Suzuki India                         3,736             2.9                    1,542             1.1 
 Tsingtao Brewery                            3,204             2.5                        -               - 
-------------------------  -----------------------  --------------  -----------------------  -------------- 
 

Portfolio holdings

 
 Portfolio holdings                   Market value   % of total portfolio 
                                            GBP000 
-----------------------------------  -------------  --------------------- 
 China & Hong Kong                          54,465                   42.3 
-----------------------------------  -------------  --------------------- 
 AIA Group                                   9,960                    7.7 
 China Mobile                                7,529                    5.8 
 Samsonite International                     5,672                    4.4 
 HSBC Holdings                               5,633                    4.4 
 Television Broadcasts                       5,269                    4.1 
 Johnson Electric Holdings                   5,243                    4.1 
 ENN Energy                                  4,139                    3.2 
 Tsingtao Brewery                            3,204                    2.5 
 SJM Holdings                                2,829                    2.2 
 Hong Kong & China Gas                       2,695                    2.1 
 Café de Coral Holdings                 2,292                    1.8 
-----------------------------------  -------------  --------------------- 
 
 Singapore                                  26,118                   20.2 
-----------------------------------  -------------  --------------------- 
 Jardine Matheson Holdings                   5,672                    4.4 
 Singtel                                     5,597                    4.3 
 United Overseas Bank                        5,333                    4.1 
 Global Logistic Properties                  4,276                    3.3 
 M1                                          2,944                    2.3 
 Dairy Farm International Holdings           2,296                    1.8 
-----------------------------------  -------------  --------------------- 
 
 India                                      21,313                   16.5 
-----------------------------------  -------------  --------------------- 
 Infosys                                     7,127                    5.5 
 Tata Consultancy Services                   6,166                    4.8 
 Hero Motocorp                               4,284                    3.3 
 Maruti Suzuki India                         3,736                    2.9 
-----------------------------------  -------------  --------------------- 
 
 Korea                                       7,945                    6.1 
-----------------------------------  -------------  --------------------- 
 Samsung Electronics                         6,231                    4.8 
 LG Household & Health Care                  1,714                    1.3 
-----------------------------------  -------------  --------------------- 
 
 Taiwan                                      7,134                    5.5 
-----------------------------------  -------------  --------------------- 
 Taiwan Semiconductor                        7,134                    5.5 
 
 Malaysia                                    6,991                    5.4 
-----------------------------------  -------------  --------------------- 
 Genting Berhad                              4,773                    3.7 
 British American Tobacco                    2,218                    1.7 
-----------------------------------  -------------  --------------------- 
 
 Thailand                                    5,128                    4.0 
-----------------------------------  -------------  --------------------- 
 Siam Commercial Bank                        5,128                    4.0 
-----------------------------------  -------------  --------------------- 
 
 Total portfolio                           129,094                  100.0 
-----------------------------------  -------------  --------------------- 
 

Principal risks and uncertainties

Risk and mitigation

The company's business model is longstanding and resilient to most of the short term uncertainties that it faces, which the board believes are effectively mitigated by its internal controls and the oversight of the investment manager, as described in the table below. The principal risks and uncertainties are therefore largely longer term and driven by the inherent uncertainties of investing in equity markets. The board believes that it is able to respond to these longer term risks and uncertainties with effective mitigation so that both the potential impact and the likelihood of these seriously affecting shareholders' interests are materially reduced.

One new uncertainty is the political landscape in the United Kingdom where the board is closely monitoring the Scottish Government's agenda and developments which might have an effect on economic, legislative and regulatory implications for the company.

Risks are regularly monitored at board meetings and the board's planned mitigation measures are described in the table below.

The board has identified the following principal risks to the company:

 
Risk                         Mitigation 
---------------------------  --------------------------------------------------- 
Loss of S1158-9 tax          Loss of S1158-9 tax status would have serious 
 status                       consequences for the attractiveness of the 
                              company's shares. The board considers that, 
                              given the regular oversight of this risk 
                              carried out by the investment manager and 
                              reviewed by them, the likelihood of this 
                              risk occurring is minimal. 
---------------------------  --------------------------------------------------- 
Failure to manage            The board recognises the importance of managing 
 shareholder relations        shareholder relations. At each meeting, the 
                              board reviews the list of key shareholders. 
                              The board also receives feedback from the 
                              investment manager based on the outcome of 
                              its meetings with shareholders. Shareholders 
                              are encouraged to give their views by using 
                              the email address noted on the back page 
                              of the annual report. 
---------------------------  --------------------------------------------------- 
The investment manager       The board reviews the performance and continued 
 ceases effectively           appointment of the investment manager on 
 to manage investment         a regular basis, via the management engagement 
 trusts or its reputation     committee. 
 fails 
                              The board is independent of the investment 
                              manager and so, if the continued appointment 
                              of Martin Currie was not in the best interest 
                              of shareholders, a new investment manager 
                              would be appointed. 
---------------------------  --------------------------------------------------- 
Investment underperformance  The board manages the risk of investment 
                              underperformance by relying on the integrity 
                              of the investment manager's investment process. 
 
                              The board monitors the implementation and 
                              results of the investment process with the 
                              investment manager, which attends all board 
                              meetings, and reviews data that show statistical 
                              measures of the company's risk profile. Please 
                              see the chairman's statement and manager's 
                              review for further details on investment 
                              performance, processes and risks. 
---------------------------  --------------------------------------------------- 
Gearing/interest rate        From time to time the company finances its 
 risk                         operations through bank borrowings. The board 
                              monitors such borrowings (gearing) closely. 
                              Details are provided in note 11 to the financial 
                              statements. There were no borrowings as at 
                              31 March 2015. There were no fixed income 
                              securities held at 31 March 2015 and the 
                              company's investment portfolio is only indirectly 
                              exposed to interest rate risk. 
---------------------------  --------------------------------------------------- 
Foreign currency risk        Although the company is based in the UK, 
                              its portfolio of investments principally 
                              consists of overseas stocks. As a result, 
                              the company's sterling balance sheet and 
                              income statement can be significantly affected 
                              by movements in the local currencies of these 
                              stocks. 
 
                              In addition to the overseas investments, 
                              during the year the company also had non-sterling 
                              cash deposits and a multi-currency loan facility. 
                              At 31 March 2015 the company held a balance 
                              of GBP13,000 in Taiwanese dollars (31 March 
                              2014 of GBP57,000 in Singapore dollars, GBP53,000 
                              in Japanese yen and GBP2,000 in Taiwanese 
                              dollars). While historically the company 
                              has not hedged the risk of sterling against 
                              the currencies in which investments it holds 
                              are denominated, it reserves the right to 
                              do so if it feels it is appropriate. 
---------------------------  --------------------------------------------------- 
Operational risk             The company has outsourced its entire operational 
                              infrastructure to third party providers. 
                              Please see annual report for a list of the 
                              company's advisers. Contracts and service 
                              level agreements have been defined to ensure 
                              that the service provided by each third party 
                              provider is of a sufficiently professional 
                              and technically high standard. The board 
                              carries out an annual evaluation of the investment 
                              manager and gives feedback to the investment 
                              manager through the management engagement 
                              committee. Periodically the board requests 
                              that representatives from other third party 
                              service providers also attend board meetings 
                              to give the board the opportunity to ensure 
                              controls are in place so that service standards 
                              are delivered to meet the company's requirements. 
---------------------------  --------------------------------------------------- 
Counterparty risk            Most transactions are made delivery versus 
                              payment on recognised exchanges. The risk 
                              to the company of default is therefore minimised. 
 
                              Investment transactions are only carried 
                              out with approved brokers. Counterparty risk 
                              indicators are regularly reviewed by the 
                              investment manager and appropriate action 
                              taken, including, if necessary, removing 
                              brokers from the approved list. 
 
                              Cash is held only with approved counterparties. 
---------------------------  --------------------------------------------------- 
 

Directors' Responsibilities

Statement of directors' responsibilities

The directors of the company are responsible for preparing the strategic report, the report of the directors, the corporate governance statement, the directors' remuneration statement 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 (UK 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 year. 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; 

-- 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 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.

Each of the directors confirms that, to the best of their knowledge:

-- the financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (UK Accounting Standards and applicable law), give a true and fair view of the assets, liabilities, financial position and profit of the company; and

-- the strategic review, the report of the directors and managers, review 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 it faces.

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 review, strategic report and the report of the directors.

The financial position of the company as at 31 March 2015 is shown on the balance sheet. The cash flows of the company, and the income statement are also set out below.

Note 16 below sets out the company's risk management policies, including those covering market risk, liquidity risk and credit risk.

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 diversified 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 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 at least one year from the date of this annual report. As required by the company's articles of association, an ordinary resolution will be proposed at this year's AGM for the continuation of the company. The directors recommend that shareholders vote in favour of the continuation resolution and, based on initial discussions with shareholders, believe that the resolution is likely to be carried. Accordingly, the directors continue to use the going concern basis in the preparation of the accounts.

Income statement

 
                                                 Year ended 31 March                        13 month period to 31 
                                                         2015                                          March 2014 
-----------------------------  ------  --------------------------------------  ---------------------------------- 
                                Notes         Revenue      Capital      Total   Revenue      Capital        Total 
                                               GBP000       GBP000     GBP000    GBP000       GBP000       GBP000 
-----------------------------  ------  --------------  -----------  ---------  --------  -----------  ----------- 
 Net gains/(losses) 
  on investments                    8               -       19,997     19,997         -     (18,375)     (18,375) 
 Net currency gains/(losses)                     (54)           60          6         -          214          214 
 Income                             2           2,999            -      2,999     4,874            -        4,874 
 Investment management 
  fee                                           (328)        (657)      (985)     (481)        (962)      (1,443) 
 Other expenses                     4           (549)            -      (549)     (551)            -        (551) 
-----------------------------  ------  --------------  -----------  ---------  --------  -----------  ----------- 
 
   Net return on ordinary 
   activities before 
   finance costs and 
   taxation                                     2,068       19,400     21,468     3,842     (19,123)     (15,281) 
 Interest payable 
  and similar charges               3            (34)         (68)      (102)      (26)         (52)         (78) 
-----------------------------  ------  --------------  -----------  ---------  --------  -----------  ----------- 
 
   Net return on ordinary 
   activities before 
   taxation                                     2,034       19,332     21,366     3,816     (19,175)     (15,359) 
 Taxation on ordinary 
  activities                        5           (138)            -      (138)     (304)            -        (304) 
-----------------------------  ------  --------------  -----------  ---------  --------  -----------  ----------- 
 
   Transfer to/(from) 
   reserves                        13           1,896       19,332     21,228     3,512     (19,175)     (15,663) 
 
   Returns per ordinary 
   share                            7           4.82p       49.15p     53.97p     8.31p     (45.38p)     (37.07p) 
-----------------------------  ------  --------------  -----------  ---------  --------  -----------  ----------- 
 

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 ('SORP') 2009.

All revenue and capital items in the above statement derive from continuing operations.

No operations were acquired or discontinued in the year.

The notes form part of these financial statements.

A statement of total recognised gains and losses is not required as all gains and losses of the company have been reflected in the above statement.

Balance sheet

 
                                                       As at 31 March        As at 31 March 
                                                                 2015                  2014 
                                           Note    GBP000      GBP000    GBP000      GBP000 
----------------------------------------  -----  --------  ----------  --------  ---------- 
 Non-current assets 
 Investments at fair value through 
  profit or loss 
 Listed on stock exchanges abroad                             129,094               131,396 
 Listed on the stock exchange 
  in the UK                                                         -                 4,221 
----------------------------------------  -----  --------  ----------  --------  ---------- 
                                           8                  129,094               135,617 
 Current assets 
 Debtors                                   9          371                 1,155 
 Cash at bank                              10       8,278                 1,725 
----------------------------------------  -----  --------  ----------  --------  ---------- 
                                                    8,649                 2,880 
 Creditors 
 Amounts falling due within one 
  year                                     11       (403)               (6,076) 
----------------------------------------  -----  --------  ----------  --------  ---------- 
 Net current assets                                           (8,246)               (3,196) 
----------------------------------------  -----  --------  ----------  --------  ---------- 
 
  Total assets less current liabilities                       137,340               132,421 
 Capital and reserves 
 Called-up share capital                   12      19,753                21,865 
 Share premium                                      6,084                 6,084 
 Capital redemption reserve                13       3,428                 1,316 
 Capital reserve                           13     105,400                99,525 
 Revenue reserve                           13       2,675                 3,631 
----------------------------------------  -----  --------  ----------  --------  ---------- 
 Total shareholders' funds                                    137,340               132,421 
 
 Net asset value per ordinary 
  share of 50p                             7                   361.2p                313.4p 
----------------------------------------  -----  --------  ----------  --------  ---------- 
 

Martin Currie Pacific Trust plc is registered in Scotland, company number SCO92391.

The financial statements were approved by the board of directors on 26 May 2015 and signed on its behalf by Harry Wells, Chairman

Reconciliation of movement in shareholders funds

 
                                          Note   Year ended 31   13 month period 
                                                    March 2015     31 March 2014 
                                                        GBP000            GBP000 
---------------------------------------  -----  --------------  ---------------- 
 Revenue in the year available for 
  distribution                                           1,896             3,512 
 Dividends paid                           6            (2,852)           (3,802) 
---------------------------------------  -----  --------------  ---------------- 
                                                         (956)             (290) 
 Other recognised gains/(losses)                        19,332          (19,175) 
---------------------------------------  -----  --------------  ---------------- 
 
   Net increase/(decrease) in reserves                  18,376          (19,465) 
 Cost of ordinary shares bought back                  (13,457)             (113) 
 Opening shareholders' funds                           132,421           151,999 
---------------------------------------  -----  --------------  ---------------- 
 Closing shareholders' funds                           137,340           132,421 
---------------------------------------  -----  --------------  ---------------- 
 

Statement of cash flow

 
                                       Note     Year ended 31 March       13 month period 
                                                               2015      to 31 March 2014 
                                                  GBP000     GBP000      GBP000    GBP000 
------------------------------------  -----  -----------  ---------  ----------  -------- 
 Net cash inflow from operating 
  activities                           14                     1,701                 2,164 
 Servicing of finance 
 Interest Paid                                     (103)                   (67) 
------------------------------------  -----  -----------  ---------  ----------  -------- 
 Net cash outflow from servicing 
  of finance                                                  (103)                  (67) 
 Capital expenditure and financial 
  investment 
 Purchase of investments                       (102,936)               (49,643) 
 Proceeds from sales of investments              128,201                 46,973 
------------------------------------  -----  -----------  ---------  ----------  -------- 
 Net cash inflow/(outflow) 
  from capital expenditure and 
  financial investment                                       25,265               (2,670) 
 Equity dividends paid                                      (2,852)               (3,802) 
------------------------------------  -----  -----------  ---------  ----------  -------- 
 Net cash inflow/(outflow) 
  before financing                                           24,011               (4,375) 
 Financing 
 Purchase of ordinary share 
  capital                                       (13,457)                  (113) 
 Net movement in short- term 
  borrowings                                     (3,972)                  4,278 
------------------------------------  -----  -----------  ---------  ----------  -------- 
 Net cash inflow/(outflow) 
  from financing                                           (17,429)                 4,165 
------------------------------------  -----  -----------  ---------  ----------  -------- 
 Increase/(decrease) in cash 
  for the year                         15                     6,582                 (210) 
------------------------------------  -----  -----------  ---------  ----------  -------- 
 Reconciliation of net cash 
  flow to movements in net funds 
 Increase in cash                                             6,582                 (210) 
 Exchange movements                                            (29)                  (57) 
------------------------------------  -----  -----------  ---------  ----------  -------- 
 Movement in net funds in the 
  period                                                      6,553                 (267) 
 Opening net cash                                             1,725                 1,992 
------------------------------------  -----  -----------  ---------  ----------  -------- 
 Closing net cash                                             8,278                 1,725 
------------------------------------  -----  -----------  ---------  ----------  -------- 
 

1. Accounting policies

(a) Basis of preparation - The financial statements have been prepared on a going concern basis and in accordance with applicable UK company law and 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.

(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) 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. Interest receivable and payable and management expenses 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.

(d) Investments - Investments have been designated upon initial recognition as at 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 at fair value. Subsequent to initial recognition, investments are valued at fair value. Movements in the fair value of investments and gains/losses on the sale of investments are taken to the income statement as a capital item. The company's listed investments are valued at bid price.

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

(f) Foreign currencies are translated at the rates of exchange ruling on the balance sheet date. Most investors are resident in the UK therefore sterling is believed to be the functional currency as it is the reporting currency. Revenue received and interest paid in foreign currencies are translated at the rates of exchange ruling at the transaction date.

(g) All financial assets and liabilities are recognised in the financial statements at fair value.

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

(i) Capital reserve - Gains or losses on realisation of investments and changes in fair values of investments which are readily convertible to cash, without accepting adverse terms, are transferred to the capital reserve. Share buybacks are funded through the capital reserve.

(j) Taxation - The tax effect of different items of income/gains and expenditure/losses is allocated between revenue and capital on the same basis as the particular item to which it relates, under the marginal method, using the company's effective rate of tax. Deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions of 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.

(k) Year end - In 2014, the board changed the company's year end from February to March in order to align it better with normal reporting periods. Accordingly, the 12-month reporting period ended on 28 February 2014 was extended to a 13-month accounting period ended on 31 March 2014.

2.

 
 Income                         Year ended   13 month period 
                             31 March 2015                to 
                                    GBP000     31 March 2014 
                                                      GBP000 
-------------------------  ---------------  ---------------- 
 Income from investments 
 From listed investments 
 UK equities                             -               164 
 Overseas equities                   2,969             4,692 
 Stock dividends                        14                15 
-------------------------  ---------------  ---------------- 
                                     2,983             4,871 
 Other income 
 Interest on deposits                   16                 3 
-------------------------  ---------------  ---------------- 
                                     2,999             4,874 
-------------------------  ---------------  ---------------- 
 Total income comprises: 
 Dividends                           2,983             4,871 
 Interest                               16                 3 
-------------------------  ---------------  ---------------- 
                                     2,999             4,874 
 

3.

 
                                                  Year ended               13 month period 
                                               31 March 2015                            to 
                                                      GBP000                 31 March 2014 
                                                                                    GBP000 
                                 Revenue   Capital     Total   Revenue   Capital     Total 
                                  GBP000    GBP000    GBP000    GBP000    GBP000    GBP000 
------------------------------  --------  --------  --------  --------  --------  -------- 
 Interest payable and similar 
  charges 
 Interest payable on bank 
  loans and overdrafts                34        68       102        26        52        78 
------------------------------  --------  --------  --------  --------  --------  -------- 
 

4.

 
                                                Year ended   13 month period 
                                                  31 March                to 
                                                      2015     31 March 2014 
                                                    GBP000            GBP000 
---------------------------------------------  -----------  ---------------- 
 Other expenses 
  Bank charges                                          72                54 
 Directors' fees                                       119               137 
 Employer's national insurance contributions            11                12 
 Legal and professional fees                            69                82 
 Printing and postage                                   15                14 
 Public relations                                       53                10 
 Registration fees                                      27                28 
 Secretarial fee                                       101               106 
 Miscellaneous                                          58                86 
---------------------------------------------  -----------  ---------------- 
                                                       525               529 
 Auditors remuneration 
 Payable to Ernst & Young LLP for the 
  audit of the company's annual financial 
  statements                                            21                18 
 Payable to Ernst & Young LLP for non-audit 
  services                                               3                 4 
---------------------------------------------  -----------  ---------------- 
                                                       549               551 
---------------------------------------------  -----------  ---------------- 
 

Details of the contract between the company and Martin Currie for provision of investment management and secretarial services are given in the report of the directors.

The non-audit services relate to the assessment of 'ready to tag' accounts and design process for IXBRL purposes.

5.

 
                                            Year ended               13 month period 
                                         31 March 2015                            to 
                                                GBP000                 31 March 2014 
                                                                              GBP000 
                           Revenue   Capital     Total   Revenue   Capital     Total 
                            GBP000    GBP000    GBP000    GBP000    GBP000    GBP000 
------------------------  --------  --------  --------  --------  --------  -------- 
 Taxation on ordinary 
  activities 
 Irrecoverable overseas 
  tax                          138         -       138       304         -       304 
 

As at 31 March 2015, the company had unutilised management expenses of GBP9,089,160 (31.03.2014: GBP7,556,000) and a non-trading loan relationship deficit of GBP41,087 (31.03.2014: GBPNil) carried forward.

The effective UK corporation tax rate was 21% (31.03.2014: 23%). 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.

 
                                            Year ended   13 month period 
                                              31 March             ended 
                                                  2015     31 March 2014 
                                                GBP000            GBP000 
-----------------------------------------  -----------  ---------------- 
 Net return before taxation                     21,366          (15,359) 
-----------------------------------------  -----------  ---------------- 
 
 UK Corporation tax at effective 
  rate of 21% (31.03.2014: 23%)                  4,486           (3,545) 
 
   Adjustments: 
 Franked investment income                         (3)              (39) 
 Currency gains not taxable                        (1)              (49) 
 Non taxable stock dividends                       (3)               (3) 
 Gains / (losses) on investments 
  not taxable                                  (4,199)             4,241 
 Non taxable overseas dividends                  (614)           (1,052) 
 Overseas tax suffered                             138               304 
 Excess management expenses not utilised           344               478 
 Revenue taxable in different periods             (10)              (31) 
-----------------------------------------  -----------  ---------------- 
 Total current year tax charge                     138               304 
-----------------------------------------  -----------  ---------------- 
 

The company has an unrecognised deferred tax asset of GBP1,826,048 (31.03.2014: GBP1,587,000). This deferred tax asset arose as a result of excess management expenses and non-trading deficits on loan relationships. A non-trading loan relationship deficit is the amount of interest and similar charges on bank loans payable by the company, that has not been used to offset taxable profits.

Management expenses and non trading loan deficits are used to offset taxable revenue in order to calculate the company's UK corporation tax charge. In years where expenses exceed taxable income these expenses can be carried forward to be utilised against future taxable profits. From 1 July 2009, most overseas dividends received by investment trusts are exempt from corporation tax. As a result these balances have arisen when management expenses have exceeded taxable income.

From 1 April 2014 the main rate of corporation tax reduced from 23% to 21% and, from 1 April 2015, from 21% to 20%. There is no impact on the financial statements following this change in the rate of UK corporation tax.

6.

 
                                                    Year ended   13 month period 
                                                 31 March 2015    ended 31 March 
                                                        GBP000              2014 
                                                                          GBP000 
---------------------------------------------  ---------------  ---------------- 
 Equity dividends 
 Year ended 31 March 2015 - interim dividend               951                 - 
  of 2.50p 
 13-month period ended 31 March 2014                     1,901                 - 
  - final dividend of 5.00p 
 13-month period ended 31 March 2014 
  - interim dividend of 2.50p                                -             1,056 
 Year ended 28 February 2013 - final 
  dividend of 6.50p                                          -             2,746 
---------------------------------------------  ---------------  ---------------- 
                                                         2,852             3,802 
---------------------------------------------  ---------------  ---------------- 
 

Set out below are the total dividends payable in respect of the financial period which forms the basis on which the requirements of s1158-9 of the Corporation Taxes Act 2010 are considered.

 
                                                      Year to      13 month period 
                                                31 March 2015    ended 28 February 
                                                       GBP000                 2014 
                                                                            GBP000 
--------------------------------------------  ---------------  ------------------- 
 Proposed final dividend of 5.00p for                   1,901                    - 
  the year ended 31 March 2015 
 Interim dividend of 2.50p for the year                   951                    - 
  ended 31 March 2015 
 Final dividend of 5.00p for the 13-month 
  ended 31 March 2014                                       -                1,901 
 Interim dividend of 2.50p for the 13-month 
  ended 31 March 2014                                       -                1,056 
--------------------------------------------  ---------------  ------------------- 
                                                        2,852                2,957 
--------------------------------------------  ---------------  ------------------- 
 

There have been no share buybacks since the year end; therefore the final dividend for 2015 is based on 38,025,087 ordinary shares in issue.

7.

 
                                                    Year ended   13 month period 
                                                 31 March 2015    ended 31 March 
                                                                            2014 
---------------------------------------------  ---------------  ---------------- 
 Return and net asset value 
 The return and net asset value per ordinary 
  share are calculated with reference 
  to the following figures: 
 
  Revenue Return 
 Revenue return attributable to ordinary          GBP1,896,000      GBP3,512,000 
  shareholders 
---------------------------------------------  ---------------  ---------------- 
 Weighted average number of shares in 
  issue during year*                                39,333,104        42,252,547 
 Return per ordinary share                               4.82p             8.31p 
---------------------------------------------  ---------------  ---------------- 
 Capital return 
 Capital return attributable to ordinary         GBP19,332,000   (GBP19,175,000) 
  shareholders 
---------------------------------------------  ---------------  ---------------- 
 Weighted average number of shares in 
  issue during year*                                39,333,104        42,252,547 
 Return per ordinary share                              49.15p          (45.38p) 
---------------------------------------------  ---------------  ---------------- 
 Total return 
 Total return per ordinary share                        53.97p          (37.07p) 
 
 
                               As at 31 March   As at 31 March 
                                         2015             2014 
----------------------------  ---------------  --------------- 
 Net asset value per share 
 Net assets attributable to    GBP137,340,000   GBP132,421,000 
  shareholders 
 Number of shares in issue 
  at the year end*                 38,025,087       42,250,097 
 Net asset value per share             361.2p           313.4p 
----------------------------  ---------------  --------------- 
 

*Calculated excluding shares held in treasury.

8.

 
                                               As at            As at 
                                       31 March 2015    31 March 2014 
                                              GBP000           GBP000 
-----------------------------------  ---------------  --------------- 
 Investments at fair value through 
  profit and loss 
 Opening valuation                           135,617          149,993 
 Opening investment holding gains           (10,838)         (34,391) 
-----------------------------------  ---------------  --------------- 
 Opening cost                                124,779          115,602 
 Add: additions at cost                      101,306           51,258 
-----------------------------------  ---------------  --------------- 
                                             226,085          166,860 
 Less: disposals at cost                   (120,483)         (42,081) 
-----------------------------------  ---------------  --------------- 
 Closing cost                                105,602          124,779 
 Closing investment holding gains             23,492           10,838 
-----------------------------------  ---------------  --------------- 
 
 Closing valuation                           129,094          135,617 
-----------------------------------  ---------------  --------------- 
 

Further details of the portfolio holdings are set out above. Interest rate and currency risk analyses are set out below. The valuation of listed investments is at bid value and this represents fair value.

 
                                                      As at   13 month period 
                                                   31 March    ended 31 March 
                                                       2015              2014 
                                                     GBP000            GBP000 
-----------------------------------------------  ----------  ---------------- 
 Gains/(losses) on investments 
 Realised gains for the current year                  7,343             5,178 
 Movement in investment holding gains/(losses)       12,654          (23,553) 
-----------------------------------------------  ----------  ---------------- 
 Gains/(losses) on investments                       19,997          (18,375) 
-----------------------------------------------  ----------  ---------------- 
 

Transaction costs

During the year expenses were incurred in acquiring or disposing of investments classified as at fair value through profit or loss. These have been expensed through capital and are included within gains on investments in the income statement. The total costs were as follows:

 
                  As at   13 month period 
               31 March    ended 31 March 
                   2015              2014 
                 GBP000            GBP000 
-----------  ----------  ---------------- 
 Purchases          140               116 
 Sales              262               102 
-----------  ----------  ---------------- 
 Total              402               218 
-----------  ----------  ---------------- 
 

9.

 
                                                 As at            As at 
                                         31 March 2015    31 March 2014 
                                                GBP000           GBP000 
-------------------------------------  ---------------  --------------- 
 Debtors: amounts falling due within 
  one year 
 Dividends receivable                              340              768 
 Amount due from brokers                             -              375 
 Taxation recoverable                                -                2 
 Other debtors                                      31               10 
-------------------------------------  ---------------  --------------- 
                                                   371            1,155 
-------------------------------------  ---------------  --------------- 
 

10.

 
                              As at            As at 
                      31 March 2015    31 March 2014 
                             GBP000           GBP000 
------------------  ---------------  --------------- 
 Cash at bank 
 Sterling                     8,264            1,613 
 Singapore dollar                 -               57 
 Japanese yen                     -               53 
 Taiwanese Dollar                14                2 
------------------  ---------------  --------------- 
                              8,278            1,725 
------------------  ---------------  --------------- 
 

11.

 
                                                   As at            As at 
                                           31 March 2015    31 March 2014 
                                                  GBP000           GBP000 
---------------------------------------  ---------------  --------------- 
 Creditors: amounts falling due within 
  one year 
 Interest payable and similar charges                 14               15 
 Due to brokers                                        -            1,630 
 Due to Martin Currie Investment 
  Management Ltd                                     255              363 
 Revolving bank loan                                   -            4,007 
 Other creditors                                     134               61 
---------------------------------------  ---------------  --------------- 
                                                     403            6,076 
---------------------------------------  ---------------  --------------- 
 

With the exception of management fees, directors' fees, directors' shareholdings and secretarial fees, there were no related party transactions to report throughout the financial year. For interest rate risk analysis in respect of debtors and creditors refer to note 16.

The company has a GBP20,000,000 (31 March 2014: GBP20,000,000) loan facility with Royal Bank of Scotland, which expires on 31 October 2015. Under this agreement, there were no draw downs as at 31 March 2015 (31.03.2014: JPY 688,000,000 (GBP4,007,176)). There have been no draw downs between 1 April and 21 May 2015. All creditors are payable within three months.

12.

 
                                                As at       As at 
                                             31 March    31 March 
                                                 2015        2014 
                                               GBP000      GBP000 
-----------------------------------------  ----------  ---------- 
 Called up share capital 
 Authorised: 
 66,000,000 (2014 - 66,000,000) Ordinary 
  shares of 50p each - equity                  33,000      33,000 
-----------------------------------------  ----------  ---------- 
 
 Allotted, called up and fully paid: 
 38,025,087 (2014 - 42,250,097) Ordinary 
  shares of 50p each - equity                  19,013      21,125 
-----------------------------------------  ----------  ---------- 
 
 Treasury shares: 
 1,480,785 (2014 - 1,480,785) Ordinary 
  shares of 50p each - equity                     740         740 
-----------------------------------------  ----------  ---------- 
 Total                                         19,753      21,865 
-----------------------------------------  ----------  ---------- 
 

The company has bought back 4,225,010 (31.03.2014: 37,591) shares of 50p each during the year to 31 March 2015 at a cost of GBP13,457,000 (31.03.2014: GBP113,000). The shares repurchased during the year to 31 March 2015 have been cancelled in accordance with the terms of the tender offer.

13.

 
                               Year ended 31 March 2015                               13 Month period ended 31 March 
                                                                                                                2014 
                                  Realised         Investment       Total   Realised         Investment        Total 
                                   Capital           holdings      GBP000    Capital           holdings       GBP000 
                                    GBP000    gains /(losses)                 GBP000    gains /(losses) 
                                                       GBP000                                    GBP000 
----------------------------  ------------  -----------------  ----------  ---------  -----------------  ----------- 
 Movement in reserves 
 Capital reserve 
 At 1 April                         88,687             10,838      99,525     84,422             34,391      118,813 
 Gains on realisation 
  of investments 
  at fair value                      7,343                  -       7,343      5,178                  -        5,178 
 Movement in unrealised 
  fair value gains/(losses) 
  of investments                         -             12,654      12,654          -           (23,553)     (23,553) 
 Realised currency 
  gains during the 
  year                                  60                  -          60        214                  -          214 
 Capitalised expenses                (725)                  -       (725)    (1,014)                  -      (1,014) 
 Ordinary shares 
  bought back                     (13,457)                  -    (13,457)      (113)                  -        (113) 
----------------------------  ------------  -----------------  ----------  ---------  -----------------  ----------- 
 At 31 March                        81,908             23,492     105,400     88,687             10,838       99,525 
----------------------------  ------------  -----------------  ----------  ---------  -----------------  ----------- 
 

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'.

The figure for capitalised expenses includes two-thirds of the total management fee and finance costs which are allocated to capital reserve, net of the associated tax relief.

 
                                       Year ended 31   13 Month period 
                                          March 2015    ended 31 March 
                                                                  2014 
------------------------------------  --------------  ---------------- 
 Capital redemption reserve 
 Capital redemption reserve at 
  1 April                                      1,316             1,316 
 Ordinary shares bought back for               2,112                 - 
  cancellation 
------------------------------------  --------------  ---------------- 
 Closing capital redemption reserve 
  at 31 March                                  3,428             1,316 
------------------------------------  --------------  ---------------- 
 Revenue reserve 
 Revenue reserve at 1 April                    3,631             3,921 
 Transfer to revenue reserve for 
  period                                       1,896             3,512 
 Dividends paid                              (2,852)           (3,802) 
------------------------------------  --------------  ---------------- 
 Closing revenue reserve at 31 
  March                                        2,675             3,631 
------------------------------------  --------------  ---------------- 
 

The capital redemption reserve is created when the company buys back shares for cancellation; this reserve is not distributable to shareholders.

14.

 
                                                 Year ended   13 Month period 
                                                   31 March             ended 
                                                       2015     31 March 2014 
                                                     GBP000            GBP000 
 Reconciliation of net return before 
  finance costs and taxation to net cash 
  inflow from operating activities 
 Net return before finance costs and 
  taxation                                           21,468          (15,281) 
 Adjustments for: 
 (Gains)/losses on investments                     (19,997)            18,375 
 Currency gains                                         (6)             (214) 
 Decrease/(increase) in operating debtors               409             (355) 
 Decrease in operating creditors                       (35)              (57) 
 Taxation withheld from income on investments         (138)             (304) 
----------------------------------------------  -----------  ---------------- 
 Net cash inflow from operating activities            1,701             2,164 
----------------------------------------------  -----------  ---------------- 
 

15.

 
                          At 1 April   Cash flow     Exchange   At 31 March 
                                2014      GBP000    movements          2015 
                              GBP000                   GBP000        GBP000 
-----------------------  -----------  ----------  -----------  ------------ 
 Analysis of net debt 
 Cash at bank and in 
  hand                         1,725       6,582         (29)         8,278 
 Revolving bank and in 
  hand                       (4,007)       3,972           35             - 
-----------------------  -----------  ----------  -----------  ------------ 
                             (2,282)      10,554            6         8,278 
-----------------------  -----------  ----------  -----------  ------------ 
 

For interest rate risk and currency risk analyses refer to note 16.

16. 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. No derivatives transactions were undertaken during the year. As at the year end the company held no derivatives (31.03.2014: none held).

The main risks the company faces from its financial instruments are (i) market price risk (comprising interest rate risk, foreign 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 investment 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 of 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 level of income receivable on cash deposits/payable on short term 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 risk profile

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

 
 As at 31 March      Interest   Local currency   Foreign exchange   Sterling equivalent 
  2015                 rate %             '000               rate                GBP000 
------------------  ---------  ---------------  -----------------  -------------------- 
 Assets 
 Sterling                0.25            8,264              1.000                 8,264 
 Taiwanese dollar         n/a              627             46.450                    14 
------------------  ---------  ---------------  -----------------  -------------------- 
                                                                                  8,278 
------------------  ---------  ---------------  -----------------  -------------------- 
 Liabilities              n/a              n/a                n/a                   n/a 
  Loan 
------------------  ---------  ---------------  -----------------  -------------------- 
 
 
 As at 31 March      Interest   Local currency   Foreign exchange   Sterling equivalent 
  2014                 rate %             '000               rate                GBP000 
------------------  ---------  ---------------  -----------------  -------------------- 
 Assets 
 Sterling                0.34            1,613              1.000                 1,613 
 Singapore dollar         n/a              120              2.097                    57 
 Japanese yen             n/a            9,091            171.691                    53 
 Taiwanese dollar         n/a               78             50.769                     2 
------------------  ---------  ---------------  -----------------  -------------------- 
                                                                                  1,725 
------------------  ---------  ---------------  -----------------  -------------------- 
 Liabilities 
  Loan - Japanese 
  yen                    1.19          688,000            171.691                 4,007 
------------------  ---------  ---------------  -----------------  -------------------- 
 

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 to 31 March 2015 would increase / decrease by GBP83,000 (31.03.2014: increase / decrease by GBP17,000). This is mainly attributable to the company's exposure to interest rates on its floating rate cash balances.

Foreign currency risk

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:

 
                                                   As at 31 March 2015                      13 month period ended 31 
                                                                                                          March 2014 
                       Investments   Net monetary       Total currency   Investments   Net monetary   Total currency 
                            GBP000         assets             exposure        GBP000         assets         exposure 
                                           GBP000               GBP000                       GBP000           GBP000 
-------------  -------------------  -------------  -------------------  ------------  -------------  --------------- 
 Australian 
  dollar                         -              -                    -        16,017          (169)           15,848 
 Hong Kong 
  dollar                   54,466               -              54,466         33,661             31           33,692 
 Indian 
  rupee                    21,312               -              21,312          5,329              1            5,330 
 Indonesian 
  rupiah                         -              -                    -         1,201              -            1,201 
 Japanese 
  yen                            -              -                    -        33,144        (3,842)           29,302 
 Korean 
  won                        7,945             72                8,017        13,651            107           13,758 
 Malaysian 
  ringgit                    6,991              -                6,991         3,670          (105)            3,565 
 Singaporean 
  dollar                    18,150              -              18,150          5,449              -            5,449 
 Taiwanese 
  dollar                     7,134             14                7,148        10,333              2           10,335 
 Thai baht                   5,128              1                5,129         7,658             96            7,754 
 US dollar                   7,968            267                8,235         1,283             41            1,324 
-------------  -------------------  -------------  -------------------  ------------  -------------  --------------- 
 Total                     129,094            354              129,448       131,396        (3,838)          127,558 
-------------  -------------------  -------------  -------------------  ------------  -------------  --------------- 
 

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

Foreign currency sensitivity

The following table details the company's sensitivity to a 10% increase and decrease in sterling against the relevant foreign currencies and the resultant impact that any such increase or decrease would have on net return before tax and equity shareholders' funds. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year end for a 10% change in foreign currency rates.

 
                        2015      2014 
                      GBP000    GBP000 
------------------  --------  -------- 
 Singapore dollar          -         6 
 Japanese yen              -         5 
 Taiwanese Dollar          1         - 
------------------  --------  -------- 
 Total                     1        11 
------------------  --------  -------- 
 

Other price risk

Other price risks (i.e. 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. Both the allocation of assets to international markets, and the stock selection process 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 to 31 March 2015 would have increased / decreased by GBP19,364,000 (31.03.2014: increase / decrease of GBP20,343,000 and equity reserves would have increased / decreased by the same amount). The calculations are based on the portfolio valuations, as at the respective balance sheet dates, and are not representative of the year as a whole.

(ii) Liquidity risk

This is the risk that the company will encounter difficulty in meeting obligations associated with financial liabilities. All creditors are payable within three months.

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 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 ratings are reviewed periodically by the portfolio manager. Limits are set on the exposure to any one broker. The risk to the company of default is therefore minimized.

   --      Most transactions are made delivery versus payment on recognised exchanges. 
   --      Cash is held only with reputable banks. 

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

The maximum credit risk exposure as at 31 March 2015 was GBP8,649,000 (31.03.2014: GBP2,880,000). This was due to debtors and cash as per notes 9 and 10.

Fair values of financial assets and financial liabilities

All assets and liabilities are included in the balance sheet at fair value.

17. 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 company's capital as at 31 March comprised:

 
                                            2015      2014 
                                          GBP000    GBP000 
--------------------------------------  --------  -------- 
 Equity share capital                     19,753    21,865 
 Retained earnings and other reserves    117,587   110,556 
 Total                                   137,340   132,421 
--------------------------------------  --------  -------- 
 

The Board, with the assistance of the Manager and the AIFM, monitors and reviews the broad structure of the company's capital on an ongoing basis. These reviews include:

   --      the planned level of gearing, which takes account of the manager's views on the market; 

-- the need to buy back equity shares for cancellation or to hold in treasury, which takes account of the difference between the net

-- asset value per share and the share price (i.e. the level of share price discount or premium);

   --      the need for new issues of equity shares; 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.

The Company had no net gearing at the year end (31.03.14: 102%).

18. 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 fair value measurements using a fair value hierarchy that reflects the significance of the input 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 (i.e. as prices) or indirectly (i.e. 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 as at 31 March 2015 as follows:

 
 At 31 March 2015       Note    Level 1   Level 2   Level 3     Total 
                                 GBP000    GBP000    GBP000    GBP000 
---------------------  ------  --------  --------  --------  -------- 
 Financial assets at fair 
  value 
  through profit or loss 
 Quoted Equities        (a)     129,094         -         -   129,094 
---------------------  ------  --------  --------  --------  -------- 
 Net fair value                 129,094         -         -   129,094 
-----------------------------  --------  --------  --------  -------- 
 
 
 At 31 March 2014       Note    Level 1   Level 2   Level 3     Total 
                                 GBP000    GBP000    GBP000    GBP000 
---------------------  ------  --------  --------  --------  -------- 
 Financial assets at fair 
  value 
  through profit or loss 
 Quoted Equities        (a)     135,617         -         -   135,617 
---------------------  ------  --------  --------  --------  -------- 
 Net fair value                 135,617         -         -   135,617 
-----------------------------  --------  --------  --------  -------- 
 

(a) 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.

The company's holding in Martin Currie China 'A' share fund S2 Shares has been determined using observable market inputs other than quoted prices and is therefore categorised as level 2, this holding has been valued at GBPnil as at 31 March 2014 and 31 March 2015.

19. Post balance sheet event

There were no post balance sheet events.

20. Alternative Investment Fund Managers ('AIFM') Directive

In accordance with the AIFM Directive, information in relation to the company's leverage and the remuneration of the company's AIFM, Martin Currie Fund Management ('MCFM'), is required to be made available to investors. In accordance with the Directive, the AIFM's remuneration policy is available from MCFM on request. The numerical remuneration disclosures in relation to the AIFM's first relevant accounting period (year ended 31 March 2016) will be made available in due course.

The company's maximum and actual leverage levels at 31 March 2015 are shown below:

 
 Leverage Exposure          Gross method               Commitment method 
-------------------------  -------------  ------------------------------ 
 Maximum permitted limit            275%                            175% 
 Actual                              94%                            100% 
-------------------------  -------------  ------------------------------ 
 

The Leverage limits are set by the AIFM and approved by the board and are in line with the maximum leverage levels permitted in the company's articles of association. The AIFM is also required to comply with the gearing parameters set by the board in relation to borrowings.

Website

Martin Currie Pacific Trust has its own dedicated website at www.martincurriepacific.com. This offers shareholders, prospective investors and their advisers a wealth of information about the company. Updated daily, it includes the following: latest prices, performance data, portfolio information, the investment manager's latest views, latest monthly update, research, press releases and articles, and annual and half yearly reports

This information is provided by RNS

The company news service from the London Stock Exchange

END

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