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Company INVESCO Asia Trust PLC

Annual Financial Report

Released 07:00 02-Jul-2013
Number 32201-F013

Annual Financial Report

Invesco Asia Trust plc                             

                     Annual Financial Report Announcement                      

                  For the Financial Year Ended 30 April 2013                   


The benchmark index of the Company is the MSCI All Countries Asia Pacific ex
Japan Index (total return), measured in sterling.

Performance Statistics

                                                      At          At           
                                                30 April    30 April          %
                                                    2013        2012     change
Total Return Statistics (1):                                                   
  - Diluted net asset value (2) (NAV)                                     +11.9
  - Share Price                                                           +12.3
  - Benchmark index                                                       +18.3
Capital Statistics                                                             
Net assets (£'000)                               195,528     164,741      +18.7
  - gross                                           5.6%        3.8%           
  - net                                             5.1%        3.6%           
NAV per ordinary share:                                                        
  - basic                                         184.6p      176.6p       +4.5
  - diluted (2)                                   184.6p      168.6p       +9.5
Benchmark index (1)                                311.1       271.7      +14.5
Mid-market price per ordinary share               164.0p      149.4p       +9.8
Discount per ordinary share (2):                                               
  - cum income                                     11.2%       11.4%           
  - ex income                                       9.6%        9.7%           


(1)Source: Thomson Reuters Datastream.

(2)As there are no longer any subscription shares, the diluted NAV is the
equivalent of the undiluted (basic) NAV.


                                                    YEAR        YEAR           
                                                   ENDED       ENDED           
                                                30 April    30 April          %
                                                    2013        2012     change
Gross income (£'000)                               4,557       4,738       -3.8
Net revenue available for ordinary shares (£       3,328       3,593       -7.4
Dividend per share                                  3.2p        3.2p          -
Ongoing charges ratio†                             1.08%       1.05%           
Revenue return per ordinary share - diluted         3.3p        3.8p           



Performance and Prospects

The financial year to 30 April 2013 was a volatile period for Asian markets,
with global macroeconomic issues dominating again. It began with further
concerns over the sustainability of the euro, a weak patch in the US economy,
fears of a hard-landing in China and with economically sensitive companies in
Asia performing poorly. However, the commitment of the major central banks to
maintaining loose monetary policy convinced equity markets that another
liquidity crisis could be avoided. This triggered a rally in Asian equity
markets towards the end of 2012. Against this backdrop, the value of the
portfolio increased over the period, but regrettably performance has lagged
that of the benchmark index, the MSCI All Countries Asia Pacific ex Japan (in
sterling terms). On a total return basis, the net asset value per share of the
Company increased by 11.9% compared to the benchmark index which returned
18.3%. The Company's share price rose from 149.4p to 164p and the ex-income
discount to net asset value at which the shares traded ended the year
relatively unchanged from the prior year at 9.6%

Taking advantage of the low valuations available, the investment managers
positioned the portfolio in markets and stocks that had been most impacted by
investor caution over the global economic situation. However, over the
financial year Asian markets have continued to be led by relatively defensive
stocks despite their higher valuations. Whilst the portfolio was underweight in
Australia, it was overweight in China, Hong Kong and South Korea, and this was
a key reason for underperformance. In the opinion of the investment managers,
the Australian dollar had become overvalued and represented a significant risk
to capital for a sterling-based investor. In addition, the reasons for
Australia's status as a safe haven, namely its AAA sovereign rating, above
average interest rates and a positive commodity price cycle, were felt to be on
the wane. Conversely, concerns about economic developments in China and South
Korea, Asia's two cheapest markets, seemed adequately reflected in those
markets' valuations. Over the reporting year the Australian market outperformed
and the Australian dollar remained strong. However, in the first month of the
new financial year the Australian dollar has weakened by around 5.2% against
sterling, positively impacting the relative performance of the Company.

Continuation Vote, Tender Offer and Discount Control

Shareholders are given the opportunity to vote on the future of the Company
every three years and at the forthcoming Annual General Meeting an ordinary
resolution is being proposed that the Directors be released from their
obligation to convene an Extraordinary General Meeting proposing a special
resolution that the Company be wound up on a voluntary basis. The Directors
continue to believe that a wind-up would not serve shareholders' best interests
and that the combination of the management expertise of the investment managers
and the encouraging prospects we foresee for the markets in which we invest
will be of benefit to shareholders.

In 2012 the Board proposed a tender offer at the end of the Company's 2012-2013
financial year (subject to necessary shareholder approval) for up to 15% of the
Company's issued share capital, at a 2% discount to NAV after deduction of the
costs of the tender, if the Company's shares had traded over the year to 30
April 2013 at an average discount of more than 10% to NAV (fully diluted, ex
income). As a result of the average discount over the year being 10.9%, the
Board is seeking the approval of shareholders to implement such a tender offer
at a separate general meeting to be held after the conclusion of the Company's
Annual General Meeting. The Board has also concluded that it would be in
shareholders' interests to extend the discount control arrangements for a
further year.

The Board considers it desirable that the Company's shares do not trade at a
significant discount to NAV and believes that, in normal market conditions, the
shares should trade at a price which on average represents a discount of less
than 10% to NAV. To enable the Board to take action to deal with any material
overhang of shares in the market it seeks authority from shareholders annually
to buy back shares. Shares may be repurchased when, in the opinion of the
Board, the discount is higher than desired and shares are available in the
market. The Board is of the view that the principal purpose of share
repurchases is to enhance net asset value for remaining shareholders, although
it may also assist in addressing the imbalance between the supply of and demand
for the Company's shares and thereby reduce the scale and volatility of the
discount at which the shares trade in relation to the underlying net asset

Subscription Share Exercise and Share Buy Backs

As I explained in my statement in the half-yearly financial report,
subscription shareholders had their final opportunity to exercise their right
to subscribe for ordinary shares of the Company at a price of 125p per share.
As result, 17,648,153 ordinary shares were allotted in mid-September 2012 and
the Company subsequently bought back 2,678,325 of these shares into treasury.

The Company also bought back a further 2,223,899 ordinary shares, of which
598,899 were retained in treasury and 1,625,000 were cancelled. These buy backs
resulted in an enhancement to NAV of £1,008,000 (0.6%). At the period end, the
issued share capital consisted of 110,338,910 ordinary shares, of which
3,277,224 were held in treasury.


Following the slightly early payment of an interim dividend in 2012 to assist
the Manager in their outsourcing of some administration, the dividend reverts
to a final, with the Board recommending a final dividend of 3.2p per ordinary
share (2012: interim 3.2p), maintaining the 2012 level despite an increase of
16,023,153 in the number of shares in issue. The dividend, which is subject to
the approval of shareholders at the Annual General Meeting, will be payable on
13 August 2013 to shareholders on the register on 19 July 2013. The shares will
go ex-dividend on 17 July 2013.


Relative to other parts of the world Asia continues to have good growth
prospects, supported by strong fundamentals and structural trends that can be
expected to remain intact over the medium-term. These trends are most evident
in the emerging countries of South East Asia, where there is robust domestic
consumption growth and growing evidence of an investment cycle. However, one
must be mindful of over exuberance from local and foreign investors and there
are signs of widening current account deficits in Thailand and Indonesia, where
export growth is struggling to keep up with the growth in imports. Meanwhile,
inflation remains moderate in most countries across Asia but appears to have
bottomed, with any further easing of monetary policy unlikely unless global
macroeconomic conditions worsen markedly.

The slowdown in Asian economic growth and corporate earnings stabilised in the
latter half of 2012, when a modest recovery took place. However, recent
economic indicators have generally fallen short of expectations, which is
unsurprising given the anaemic demand from developed markets where an extended
deleveraging cycle continues to act as a headwind for growth. In China, there
are growing concerns over the strength of the economy. We do not expect a
strong rebound as the authorities have stressed the need to control rapid
credit growth while retaining a commitment to rebalancing the economy towards
consumption, with less emphasis on fixed asset investment which has boosted
growth in the past.

Given recent positive momentum in Asian equity markets, valuations now appear
reasonable considering the earnings growth rates expected, especially when
compared with those found in developed markets. However, broader market
direction will continue to be influenced by global macroeconomic conditions,
with general investor risk appetite and liquidity conditions likely to remain
the dominant swing factors. As such, I expect stock selection to be of
paramount importance, and remain confident that we can continue to find
attractive investment opportunities.


As was announced on 2 April 2013, I shall be stepping down from the board after
the AGM in August. I have been a director of the Company for ten years and
chairman since 2005 and I think it is time to give way to a new face. I would
like to thank my colleagues and the team at Invesco Perpetual for all the
support they have given me. I am delighted that Carol Ferguson has agreed to
take over the chair as I know I will be leaving your Company in safe hands. In
addition, Owen Jonathan was appointed a director on 1 March 2013 and I am
confident that with his legal background and knowledge of Asia the composition
and experience of the Board is appropriate for taking the Company forward.

Annual General Meeting

The Company's AGM will be held at 12 noon on 8 August 2013 at 30 Finsbury
Square, London EC2A 1AG. The Directors and the investment managers, Stuart
Parks and Ian Hargreaves, will be available at the meeting to answer
shareholder questions. The Directors have considered all the resolutions
proposed in the Notice of AGM and, in their opinion, consider them all to be in
the interests of shareholders as a whole. The Directors therefore recommend
that shareholders vote in favour of each resolution.

David Hinde


1 July 2013



Market & Economic Review

Asian equity markets made solid gains over the last twelve months. Global
macroeconomic risks have eased and investor risk appetite returned, with
European policymakers intervening to contain the risks of a Eurozone debt
crisis, while developed market central banks have continued to run loose
monetary policies, which has offered support to risk assets, including emerging
market equities. However, somewhat surprisingly given the improved
macroeconomic conditions, market leadership has come from relatively defensive
stocks, despite their higher valuations, thanks to the higher yield and steady
growth they offer, rather than the more attractively valued, economically
sensitive or cyclical sectors which might have been expected to lead in such a

Market sentiment also improved with signs that China's economy was stabilising.
However, its equity market has lost momentum in recent months as economic data,
although relatively strong by global standards, has been slightly weaker than
expected. Real GDP growth slowed to 7.7% year-on-year in the first quarter of
2013, against expectations that it would slightly exceed the 7.9% growth
achieved the previous quarter. Other indicators such as manufacturing
purchasing manager's indices (PMI), retail sales and industrial production have
been reasonably robust, but reflect slower growth than that recorded in recent
years. There have also been concerns over additional tightening measures as the
authorities seek to control rising house prices in tier-1 cities and the fast
growth of non-bank social financing. It appears therefore, that the market
continues to adjust to the reality of slower growth from China, as the economy
gradually shifts away from investment-driven growth.

ASEAN markets have continued to outperform the broader region thanks to strong
domestic demand and positive credit cycles. Australia and Singapore also made
strong gains over the period, supported by positive returns from stocks that
offer high dividend yields. The attractiveness of steadily growing higher
yielding stocks in a low interest rate world has also seen sectors such as real
estate and banks outperform the broader market, while the energy and materials
sectors have lagged due to falling commodity prices.

The slowdown in India's economy appears to have come to an end and we believe
the medium-term outlook has improved on the back of a more promising reform
agenda. However, progress is likely to be gradual and returns from India's
equity market have been dampened by the lack of a pick-up in the economy.
Finally, Korea's equity market has lagged the Asian region due to lingering
concerns over the strength of its domestic economy, with relatively high levels
of household debt by Asian standards continuing to act as a headwind for

In corporate news, Samsung Electronics and Taiwan Semiconductor Manufacturing
reported strong earnings growth driven by demand for smartphones and tablets,
although there are near-term headwinds for the sector with signs that sales of
smartphones may start to ease. Meanwhile, conglomerates Hutchison Whampoa and
Jardine Matheson have reported robust full year earnings across their diverse
business units.

Company Performance

In the twelve months to the end of April 2013, the Company's net asset value
increased by 11.9% (total return, in sterling terms), which was behind that of
the benchmark, the MSCI All Countries Asia Pacific ex-Japan index, which
returned 18.3% (total return, in sterling terms).

While the Company delivered positive returns over the period, our performance
has lagged that of the benchmark. This is largely due to stock selection and
asset allocation in Australia, where our large underweight position, relative
to the benchmark, has acted as a significant headwind for performance as its
equity market has outperformed. Our positioning is largely driven by our belief
that the Australian dollar is overvalued. Since the global financial crisis,
the Australian dollar has been considered a relative `safe-haven'. However,
given the current global macro environment, with the US economy showing signs
of recovery and China's appetite for Australia's resources slowing, we believe
the currency should weaken, although it has proven enduringly resilient. Over
the period, Australian stocks have generated strong returns, particularly banks
and retailers which offer attractive dividend yields. Our limited exposure in
these areas of the market detracted significantly from overall performance.
Furthermore, our holding in Newcrest Mining detracted as the improved global
backdrop saw gold-related stocks fall from favour.

Stock selection in China was also a significant detractor from overall
performance. We have been surprised by how long the economic slowdown has acted
as a headwind for consumer-related sectors, and our holdings in retailers and
media companies have disappointed with weaker-than-expected earnings. The
uncertain economic outlook has also impacted sentiment towards holdings in
energy stocks such as CNOOC and China Shenhua Energy. Elsewhere, stock
selection in Chinese internet companies detracted, with our holding in Baidu
more than cancelling out the positive impact of our holding in NetEase. Baidu,
typically referred to as the "Google of China", has been hit by concerns over
competition and the monetisation of mobile search. We believe valuation levels
underestimate the company's dominant position and the high growth
characteristics of the industry, exemplified by Baidu's 1Q revenue growth of
40% y-o-y.

Our limited exposure in more defensive areas of the market, such as the
utilities and telecom services sectors, has also detracted. These areas have
outperformed in the period supported by the stable nature of their earnings and
high dividend payout ratios.

On the other hand, stock selection in industrials added value, particularly our
holding in Jardine Matheson which continued to deliver robust earnings against
a background of slowing growth. Our overweight position in the Philippines and
stock selection in Thailand and Indonesia also contributed positively, with
holdings in banks and real estate companies proving well placed to capitalise
on increasing loan demand and buoyant property markets. Our limited exposure in
the energy and materials sectors also added value, as these areas
underperformed over the period.

Outlook for Asian Economies and Markets

Although recent macroeconomic data from Asia has generally fallen short of
expectations, a modest recovery in economic growth and corporate earnings
appears to be underway. The emerging countries of South-East Asia continue to
generate strong levels of growth, with robust domestic consumption and growing
evidence of an investment cycle in the Philippines, Thailand and Indonesia.
Meanwhile, recent economic data from China has been mixed and we believe that,
although it is recovering, the upturn in China's economy is likely to be
moderate given the authorities' commitment to rebalancing the economy towards
consumption, and less emphasis on investment-led growth.

Meanwhile, inflation remains moderate in most countries across Asia, with
further easing of monetary policy unlikely unless global macroeconomic
conditions worsen markedly. Consensus earnings growth forecasts for Asia
Pacific ex Japan companies in 2013 have stabilised in recent months and
currently stand at around 13%, bringing current valuation levels for the region
to 12.7 times 2013 earnings. We believe these are reasonable valuation levels
relative to history.

Company Strategy

During the year we introduced a target of between 50 and 60 stock holdings, as
being the number that would allow for sufficient diversification while still
allowing exposure to the broad range of opportunities in the region. As a
result, by the year end the number of stocks held had reduced from 72 to 63.


The Company offers diversified exposure to the Asia Pacific ex-Japan region, a
region that continues to offer attractive earnings growth potential over the
medium-term. We remain focused on companies that we believe possess strong
competitive advantages and undervalued earnings growth prospects. As such, we
continue to have considerable exposure in the technology sector, with
relatively high weightings in Samsung Electronics and Taiwan Semiconductor
Manufacturing. These companies are global leaders in their industry and are key
beneficiaries of the move away from PCs to smartphones and tablets, but remain
attractively valued in our view. We have also continued to add exposure in
Chinese internet companies, which are fundamentally undervalued in our opinion
whilst generating strong free cash flow.

Our main overweight position relative to the benchmark index is in Hong Kong,
where we continue to believe that there are a number of stock specific
opportunities. We favour franchises with what we consider to be undervalued
exposure to consumer demand growth, including Jardine Matheson, which is
largely focussed on the ASEAN region, and Hutchison Whampoa which has Hong Kong
and European-focused operations. We also hold large positions in what we
believe to be high quality, but undervalued financials with global (HSBC and
Standard Chartered) or pan-Asian exposure (AIA Group).

Our overweight position in China is largely driven by exposure to
consumer-related areas of the market, including retailers and Chinese internet
companies. Given signs of stabilisation in China's economy and the attractive
valuations on offer, we have also increased our cyclical exposure, adding to
existing positions in China Shenhua Energy and CNOOC, as well as Korean
steelmaker POSCO. We introduced into the portfolio a new holding in Qingling
Motors, as we believe the market is underestimating that company's earnings
growth potential. We have also added a holding in the Hong Kong based airline
Cathay Pacific Airways, which in our view was trading at close to trough
valuations and at what we consider to be the bottom of the earnings cycle.

We remain underweight in Australia, particularly its banks, as we believe it is
at a later stage in the credit cycle and has a lower growth profile compared to
other economies in the region. We also believe the Australian dollar is
overvalued. However, we still have significant exposure in financials across
Asia, preferring to hold high quality, but undervalued banks in Korea, and have
continued to add to holdings in banks which we believe have the potential to
grow their loan books profitably. For example, we have added a significant
position in ICICI Bank, which we believe is well placed to capitalise on
increased loan demand in India thanks to its strong balance sheet and market
leading franchise. This addition has also reversed our small underweight
position in India to a small overweight, reflecting our increased confidence in
the medium-term outlook for the country, where we see the gradual progress of a
significant reform agenda as being a positive development. Finally, the
portfolio also continues to have selective exposure to smaller companies (with
market cap of less than US$1 billion), which offer the opportunity to deliver
superior returns being at an earlier stage in their growth cycle.

Stuart Parks Ian Hargreaves

Investment Managers

1 July 2013



at 30 April 2013

Ordinary shares unless stated otherwise

† MSCI and Standard & Poor's Global Industry Classification Standard.

                                                               at market   % of
                                                                   Value  Port-
company                      industry group†       country         £'000  folio
Samsung Electronics          Semiconductors &      South Korea    13,399    6.5
Hutchison Whampoa            Capital Goods         Hong Kong       8,136    4.0
Jardine Matheson - Singapore Capital Goods         Hong Kong       7,236    3.5
Taiwan Semiconductor         Semiconductors &      Taiwan          6,992    3.4
Manufacturing                Semiconductor                                     
Industrial & Commercial Bank Banks                 China           5,740    2.8
of ChinaH                                                                      
Kasikornbank                 Banks                 Thailand        5,647    2.7
NetEase - ADR                Software & Services   China           4,856    2.4
CNOOCR                       Energy                China           4,795    2.3
HSBC - Hong Kong Reg         Banks                 United          4,690    2.3
ICICI                        Banks                 India           4,556    2.2
Top Ten Holdings                                                  66,047   32.1
Hon Hai Precision Industry   Technology Hardware & Taiwan          4,523    2.2
Standard Chartered           Banks                 United          4,394    2.1
Shinhan Financial            Banks                 South Korea     4,353    2.1
Baidu - ADR                  Software & Services   China           4,313    2.1
United Phosphorus            Materials             India           4,271    2.1
POSCO                        Materials             South Korea     4,260    2.1
BHP Billiton                 Materials             Australia       4,140    2.0
Housing Development Finance  Banks                 India           4,049    2.0
China MobileR                Telecommunication     China           4,042    2.0
Hyundai Motor - Preference   Automobiles &         South Korea     3,963    1.9
Shares                       Components                                        
Top Twenty Holdings                                              108,355   52.7
Daphne International         Consumer Durables &   Hong Kong       3,551    1.7
Hyundai Mobis                Automobiles &         South Korea     3,543    1.7
AIA Group                    Insurance             Hong Kong       3,471    1.7
Westpac Banking              Banks                 Australia       3,364    1.6
Bank Negara Indonesia        Banks                 Indonesia       3,362    1.6
Australia & New Zealand      Banks                 Australia       3,305    1.6
Wharf                        Real Estate           Hong Kong       2,985    1.5
Mindray Medical              Health Care Equipment China           2,969    1.5
International -              & Services                                        
LG Fashion                   Consumer Durables &   South Korea     2,957    1.4
Cathay Pacific Airways       Transportation        Hong Kong       2,957    1.4
Top Thirty Holdings                                              140,819   68.4
Korean Reinsurance           Insurance             South Korea     2,896    1.4
China Shenhua EnergyH        Energy                China           2,872    1.4
Cheung Kong                  Real Estate           Hong Kong       2,842    1.4
Metro Pacific Investments    Diversified           Philippines     2,797    1.4
E.Sun Financial              Banks                 Taiwan          2,749    1.3
Goodpack                     Transportation        Singapore       2,748    1.3
Far Eastern New Century      Capital Goods         Taiwan          2,741    1.3
                                                                       - US Common Stock   Software & Services   China           2,710    1.3
Filinvest Land               Real Estate           Philippines     2,694    1.3
Infosys                      Software & Services   India           2,668    1.3
Top Forty Holdings                                               168,536   81.8
HKR International            Real Estate           Hong Kong       2,545    1.3
DGB Financial                Banks                 South Korea     2,544    1.2
China Resources EnterpriseR  Food & Staples        China           2,518    1.2
QBE Insurance                Insurance             Australia       2,370    1.2
Newcrest Mining              Materials             Australia       2,122    1.0
Qingling MotorsH             Automobiles &         China           2,048    1.0
Korea Investment             Diversified           South Korea     2,013    1.0
Digital China                Technology Hardware & China           1,914    0.9
China Life Insurance         Insurance             Taiwan          1,892    0.9
Metropolitan Bank & Trust    Banks                 Philippines     1,889    0.9
Top Fifty Holdings                                               190,391   92.4
LT                           Food, Beverage &      Philippines     1,856    0.9
  - Keppel                   Energy                Singapore       1,799    0.9
  - Keppel REIT              Real Estate           Singapore          51      -
Pacific Basin Shipping       Transportation        Hong Kong       1,718    0.9
Wumart StoresH               Food & Staples        China           1,701    0.8
Venture                      Technology Hardware & Singapore       1,506    0.7
E-House China - ADR          Real Estate           China           1,453    0.7
Yageo                        Technology Hardware & Taiwan          1,423    0.7
Charm Communications - ADR   Media                 Hong Kong       1,151    0.6
Samsonite International      Consumer Durables &   Hong Kong         897    0.5
China Taiping InsuranceR     Insurance             China             860    0.4
Top Sixty Holdings                                               204,806   99.5
Treasury Wine Estates        Food, Beverage &      Australia         808    0.4
Greatview Aseptic Packaging  Materials             China             191    0.1
Dart Energy                  Energy                Australia          78      -
Total holdings of 63 (2012:                                      205,883  100.0

H: H-Shares - shares issued by companies incorporated in the People's Republic
of China (PRC) and listed on the Hong Kong Stock Exchange.

R: Red Chip Holdings - holdings in companies incorporated outside the PRC,
listed on the Hong Kong Stock Exchange, and controlled by PRC entities by way
of direct or indirect shareholding and/or representation on the board.


Classification of Investments by Country/Sector

at 30 April

                                             2013                 2012        
                                              AT      % of        AT      % of
                                       Valuation Portfolio Valuation Portfolio
                                           £'000               £'000          
Consumer Staples                             808       0.4       515       0.3
Energy                                        78         -       358       0.2
Financials                                 9,039       4.4     5,402       3.2
Industrials                                    -         -     1,758       1.0
Materials                                  6,262       3.0     6,184       3.6
                                          16,187       7.8    14,217       8.3
Consumer Discretionary                     2,048       1.0     1,251       0.7
Consumer Staples                           4,219       2.0     5,237       3.1
Energy                                     7,667       3.7     6,032       3.5
Financials                                 8,053       3.9     9,641       5.7
Health Care                                2,969       1.5         -         -
Industrials                                    -         -     4,263       2.5
Information Technology                    13,793       6.7     7,881       4.6
Materials                                    191       0.1         -         -
Telecommunication Services                 4,042       2.0     4,654       2.7
                                          42,982      20.9    38,959      22.8
Hong Kong                                                                     
Consumer Discretionary                     5,599       2.8     7,969       4.7
Financials                                11,843       5.9     8,675       5.1
Industrials                               20,047       9.8    12,261       7.2
Materials                                      -         -       223       0.1
Telecommunication Services                     -         -     1,893       1.1
                                          37,489      18.5    31,021      18.2
Financials                                 8,605       4.2     2,666       1.5
Industrials                                    -         -     1,563       0.9
Information Technology                     2,668       1.3     2,030       1.2
Materials                                  4,271       2.1     3,075       1.8
                                          15,544       7.6     9,334       5.4
Consumer Discretionary                         -         -       362       0.2
Financials                                 3,362       1.6     1,769       1.0
                                           3,362       1.6     2,131       1.2
Consumer Staples                           1,856       0.9         -         -
Financials                                 7,380       3.6     7,010       4.1
                                           9,236       4.5     7,010       4.1
Energy                                     1,799       0.9     1,991       1.2
Financials                                    51         -       620       0.4
Industrials                                2,748       1.3     3,047       1.7
Information Technology                     1,506       0.7     1,337       0.8
                                           6,104       2.9     6,995       4.1
South Korea                                                                   
Consumer Discretionary                    10,463       5.0    11,310       6.7
Consumer Staples                               -         -     1,788       1.0
Financials                                11,806       5.7    10,158       6.0
Information Technology                    13,399       6.5    11,864       6.9
Materials                                  4,260       2.1     2,415       1.4
                                          39,928      19.3    37,535      22.0
Financials                                 4,641       2.2     3,379       2.0
Industrials                                2,741       1.3         -         -
Information Technology                    12,938       6.3    12,369       7.3
                                          20,320       9.8    15,748       9.3
Financials                                 5,647       2.7     1,976       1.2
                                           5,647       2.7     1,976       1.2
Financials                                 9,084       4.4     5,818       3.4
Total                                    205,883     100.0   170,744     100.0


Principal Risks and Uncertainties

Investment Objective

There can be no guarantee that the Company will meet its investment objective.

Investment Process

At the core of the Manager's philosophy is a belief in active investment
management. Fundamental principles drive a genuinely unconstrained investment
approach, which aims to deliver attractive total returns over the long term.
The investment process emphasises pragmatism and flexibility, active
management, a focus on valuation and the combination of top-down and bottom-up
fundamental analysis. Bottom-up analysis forms the basis of the investment
process. It is the key driver of stock selection and is expected to be the main
contributor to alpha generation within the portfolio. Portfolio construction at
sector level is largely determined by this bottom-up process but is also
influenced by top-down macro economic views.

Research is structured to provide a detailed understanding of a company's key
historical and future business drivers, such as demand for its products,
pricing power, market share trends, cash flow and management strategy. This
allows the Manager to form an opinion on a company's competitive position, its
strategic advantages/disadvantages and the quality of its management. Each
member of the investment management team travels to the region between three
and four times per year. In total the team has contact with around 700
companies a year. The Manager will also use valuation models selectively in
order to understand the assumptions that brokers/analysts have incorporated
into their valuation conclusions and as a structure into which the Manager can
input its own scenarios.

Risk management is an integral part of the investment management process. Core
to the process is that risks taken are not incidental but are understood and
taken with conviction. The Manager controls stock-specific risk effectively by
ensuring that the portfolio is always appropriately diversified.

Also, in-depth and constant fundamental analysis of the portfolio's holdings
provide the Manager with a thorough understanding of the individual stock risk
taken. The internal Performance & Risk Team, an independent team, ensures that
the Manager adheres to the portfolio's investment objectives, guidelines and
parameters. There is also a culture of challenge and debate between the
investment managers regarding portfolio construction and risk.

Portfolio performance is substantially dependent on the performance of Asian
and Australasian equities. Stocks are influenced by the general health of the
economies in the Far Eastern region.

Market Risk

The Company's investments are traded on the Far Eastern, Indian and
Australasian stockmarkets as well as the UK. The principal risk for investors
in the Company is of a significant fall and/or a prolonged period of decline in
the markets. This could be triggered by unfavourable developments within the
region or events outside it.

The value of investments held within the portfolio is influenced by many
factors including the general health of the world economy, interest rates,
inflation, government policies, industry conditions, political and diplomatic
events, tax laws, environmental laws, and by changing investor demand. Such
factors are outside the control of the Board and the Manager and may give rise
to high levels of volatility in the prices of investments held by the Company.

Investment Risk

Bad performance of individual portfolio investments is mitigated as the Board
has established guidelines to ensure that the investment policy of the Company
is pursued by the investment managers who undertake continual analysis of the
fundamentals of all holdings and ensures that the Company's portfolio of
investments is appropriately diversified. The performance of the investment
managers is carefully monitored by the Board and the continuation of the
management contract is reviewed each year. Past performance of the Company is
not necessarily indicative of future performance.

A fuller discussion of the economic and market conditions facing the Company
and the current and future performance of the portfolio of the Company are
included in the Investment Managers' Report above.

Foreign Exchange Risk

The movement of exchange rates may have unfavourable or favourable impact on
returns as the majority of the assets are non-sterling denominated. This risk
can be mitigated by the use of hedging and by the use of non-sterling
denominated borrowing. The foreign currency exposure of the Company is
monitored by the Manager on a daily basis and reviewed at Board meetings.

Ordinary Shares

The market value of the ordinary shares in the Company may not reflect their
underlying NAV and may trade at a discount to it. The Board and the Manager
maintain an active dialogue with the aim of ensuring that the market rating of
the Company's shares reflects the underlying NAV and there are in place share
repurchase and issuance facilities, and a declared discount monitoring
mechanism to help the management of this process.

The value of an investment in the Company and the income derived from that
investment may go down as well as up and an investor may not get back the
amount invested.

Any tender offer would result in a decrease in the size of the Company which
could potentially affect both the liquidity of the Company's shares as well as
requiring the disposal of assets to fund the tender. A tender offer could also
materially affect the ongoing charges ratio.


Whilst the use of borrowings by the Company should enhance the total return on
the shares where the return on the Company's underlying portfolio is positive
and exceeds the cost of borrowings, it will have the opposite effect where the
underlying return is negative, further reducing the total return on the shares.


The Company may enter into derivative transactions approved by the Board for
efficient portfolio management. Derivative instruments can be highly volatile
and expose investors to a high risk of loss. There is a risk that the returns
on the derivative do not exactly correlate to the returns on the underlying
investment, obligation or market sector being hedged against. If there is
imperfect correlation, the Company may be exposed to greater loss than if the
derivative had not been entered into.

Reliance on Third Party Service Providers

The Company has no employees and the Directors have all been appointed on a
non-executive basis. The Company is reliant upon the performance of third party
service providers for its executive function. The Company's most significant
contract is with the Manager, to whom responsibility both for the Company's
portfolio and for the provision of company secretarial and administrative
services are delegated. The Company has other contractual arrangements with
third parties to act as auditor, registrar, custodian and broker. Failure by
any service provider to carry out its obligations to the Company in accordance
with the terms of its appointment could have a materially detrimental impact on
the operation of the Company and could affect the ability of the Company to
successfully pursue its investment policy and expose the Company to
reputational risk.

In particular, the Manager performs services which are integral to the
operation of the Company. The Manager may be exposed to the risk that
litigation, misconduct, operational failures, negative publicity and press
speculation, whether or not it is valid, will harm its reputation. Any damage
to the reputation of the Manager could result in counterparties and third
parties being unwilling to deal with the Manager and by extension the Company.
This could have an adverse impact on the ability of the Company to pursue its
investment policy.

The Board seeks to manage these risks in a number of ways:

• The Manager monitors the performance of all third party providers in relation
to agreed service standards on a regular basis, and any issues and concerns are
dealt with promptly and reported to the Board. The Manager formally reviews the
performance of all third party providers and reports to the Board on an annual

• The Board reviews the performance of the Manager at every board meeting and
otherwise as appropriate. The Board has the power to replace the Manager and
reviews the management contract formally once a year.

• The day-to-day management of the portfolio is the responsibility of Stuart
Parks and Ian Hargreaves, who are part of the Invesco Perpetual Asian Equities
team, who have worked in equity markets for 28 years and 19 years, respectively
and have been the investment managers of the Company since 2004. The Board has
adopted guidelines within which the investment managers are permitted wide
discretion. Any proposed variation outside these guidelines is referred to the
Board and the guidelines themselves are reviewed at every board meeting.

• The risk that the investment managers might be incapacitated or otherwise
unavailable is mitigated by the fact that they work closely with each other and
they also work within, and are supported by, the wider Invesco Perpetual Asian
Equities team.


The Company is subject to various laws and regulations by virtue of its status
as a public limited company, its status as an investment trust and its listing
on the Official List of the UK Listing Authority.

Loss of investment trust status for tax purposes could lead to the Company
being subject to tax on any realised capital profits on the sale of its
investments. A serious breach of other regulatory rules could lead to
suspension from the Official List, a fine or a qualified audit report. Other
control failures, either by the Manager or any other of the Company's service
providers, could result in operational or reputational problems, erroneous
disclosures or loss of assets through fraud, as well as breaches of

The Alternative Investment Fund Managers Directive will impose obligations on
the Company and the Manager which may have significant consequences for the
Company and may increase its compliance and regulatory costs. Failure to meet
these obligations may impair the Manager's ability to manage the investments of
the Company, which may materially affect the Company's ability to implement its
investment strategy and achieve its investment objective.

The Manager reviews compliance with tax and other financial regulatory
requirements on a daily basis. All transactions, income and expenditure are
reported to the Board. The Board regularly considers all perceived risks and
the measures in place to control them. The Board ensures that satisfactory
assurances are received from service providers. The Manager's Compliance and
Internal Audit Officers produce reports regularly for review by the Company's
Audit Committee.



in respect of the preparation of the annual financial report

The Directors are responsible for preparing the annual financial report in
accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each
financial year. Under the law the Directors have elected to prepare financial
statements in accordance with United Kingdom Generally Accepted Accounting
Practice. Under company law, the Directors must not approve the accounts unless
they are satisfied that they give a true and fair view of the state of affairs
of the Company and of the profit or loss of the Company for that period.

In preparing these financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgments and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed; and

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

The Directors are responsible for keeping adequate accounting records which 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 which
enable them to ensure that the financial statements comply with the Companies
Act 2006 (CA 2006). They have general responsibility for taking such steps as
are reasonably open to them to safeguard the assets of the Company and to
prevent and detect fraud and other irregularities.

Under applicable law and regulations, the Directors are also responsible for
preparing a Directors' Report, a Directors' Remuneration Report and a Corporate
Governance Statement that comply with that law and those regulations.

In so far as each of the Directors is aware:

• there is no relevant audit information of which the Company's Auditor is
unaware; and

• the Directors have taken all steps that they ought to have taken to make
themselves aware of any relevant audit information and to establish that the
Auditor is aware of that information.

This information is given and should be interpreted in accordance with
provision s418 of CA 2006.

The Directors of the Company each confirm to the best of their knowledge that:

• the financial statements, prepared in accordance with UK Generally Accepted
Accounting Practice, give a true and fair view of the assets, liabilities,
financial position and net return of the Company; and

• this annual financial report includes a fair review of the development and
performance of the business and the position of the Company, together with a
description of the principal risks and uncertainties that it faces.

David Hinde


Signed on behalf of the Board of Directors

1 July 2013


Income Statement

for the year ended 30 April

                                         2013                     2012           
                                Revenue Capital   Total Revenue  Capital    Total
                                 return  return  return  return   return   return
                          Notes   £'000   £'000   £'000   £'000    £'000    £'000
Gains/(losses) on                     -  17,236  17,236       - (10,169) (10,169)
Losses on foreign                     -   (869)   (869)       -    (318)    (318)
currency revaluation                                                             
Income                        2   4,557       -   4,557   4,738        -    4,738
Investment management fee     3   (339) (1,016) (1,355)   (313)    (940)  (1,253)
Other expenses                    (538)    (11)   (549)   (476)      (5)    (481)
Return before finance             3,680  15,340  19,020   3,949 (11,432)  (7,483)
costs and taxation                                                               
Finance costs                      (35)   (106)   (141)    (22)     (66)     (88)
Return on ordinary                3,645  15,234  18,879   3,927 (11,498)  (7,571)
activities before tax                                                            
Tax on ordinary                   (317)       -   (317)   (334)        -    (334)
Net return on ordinary            3,328  15,234  18,562   3,593 (11,498)  (7,905)
activities after tax for                                                         
the financial year                                                               
Return per ordinary                                                              
Basic                         4    3.3p   15.0p   18.3p    3.8p  (12.2)p   (8.4)p
Diluted                       4    3.2p   14.9p   18.1p    3.8p  (12.2)p   (8.4)p

The total return column of this statement represents the Company's profit and
loss account prepared in accordance with the UK Accounting Standards. The
supplementary revenue and capital columns are prepared in accordance with the
Statement of Recommended Practice issued by the Association of Investment
Companies. All items in the above statement derive from continuing operations
and the Company has no other gains or losses, therefore no statement of total
recognised gains and losses is presented. No operations were acquired or
discontinued in the year.


reconciliation of movements in shareholders' funds

for the year ended 30 April

                       Share   Share Redemption Special  Capital Revenue        
                     Capital Premium    Reserve Reserve  Reserve reserve   Total
                       £'000   £'000      £'000   £'000    £'000   £'000   £'000
At 30 April 2011       9,598  74,506      1,863  11,798   74,633   4,458 176,856
Final dividend -           -       -          -       -        - (2,724) (2,724)
note 5                                                                          
Net return for the         -       -          -       - (11,498)   3,593 (7,905)
Exercise of              (8)       8          -       -        -       -       -
subscription shares                                                             
into ordinary shares                                                            
Net proceeds from         82     943          -       -        -       -   1,025
issue of ordinary                                                               
shares on conversion                                                            
of subscription                                                                 
Shares bought back     (179)       -        179 (2,511)        -       - (2,511)
At 30 April 2012       9,493  75,457      2,042   9,287   63,135   5,327 164,741
Interim dividend -         -       -          -       -        - (2,980) (2,980)
note 5                                                                          
Net return for the         -       -          -       -   15,234   3,328  18,562
Exercise of            (176)     176          -       -        -       -       -
subscription shares                                                             
into ordinary shares                                                            
Net proceeds from      1,765  20,278          -       -        -       -  22,043
issue of ordinary                                                               
shares on conversion                                                            
of subscription                                                                 
Shares bought back     (163)       -        163 (6,838)        -       - (6,838)
and held in treasury                                                            
At 30 April 2013      10,919  95,911      2,205   2,449   78,369   5,675 195,528



at 30 April

                                                              2013         2012
                                                Notes        £'000        £'000
Fixed assets                                                                   
  Investments designated at fair value                     205,883      170,744
Current assets                                                                 
  Debtors                                                    1,020          814
  Cash at bank                                                 944          327
                                                             1,964        1,141
Creditors: amounts falling due within one                 (12,319)      (7,144)
Net current liabilities                                   (10,355)      (6,003)
Total net assets                                           195,528      164,741
Capital and reserves                                                           
Share capital                                       6       10,919        9,493
Share premium                                               95,911       75,457
Other reserves:                                                                
  Capital redemption reserve                                 2,205        2,042
  Special reserve                                            2,449        9,287
  Capital reserve                                           78,369       63,135
Revenue reserve                                              5,675        5,327
Total Shareholders' funds                                  195,528      164,741
Net asset value per ordinary share                                             
Basic                                               7       184.6p       176.6p
Diluted                                             7          n/a       168.6p

These financial statements were approved and authorised for issue by the Board
of Directors on 1 July 2013.

David Hinde


Signed on behalf of the Board of Directors


Cash Flow Statement

for the year ended 30 April

                                                               2013        2012
                                                  Notes       £'000       £'000
Cash inflow from operating activities                         1,870       2,268
Servicing of finance                                          (143)        (83)
Taxation                                                          -           -
Capital expenditure and financial                          (17,119)       3,315
Dividends paid                                        5     (2,980)     (2,724)
Net cash (outflow)/inflow before management                (18,372)       2,776
of liquid resources and financing                                              
Financing                                                    19,174     (1,858)
Increase in cash in the year                                    802         918

Reconciliation of cash flow to movement in net Debt

for the year ended 30 April

                                                   2013        2012
                                                  £'000       £'000
Increase in cash in the year                        802         918
Cash (inflow)/outflow from movement in debt     (3,969)         372
Change in net debt resulting from cash          (3,167)       1,290
Exchange differences                              (869)       (318)
Movement in net debt in the year                (4,036)         972
Net debt at beginning of year                   (5,959)     (6,931)
Net debt at end of year                         (9,995)     (5,959)


for the year ended 30 April 2013

1. Accounting Policies

A summary of the principal accounting policies, all of which have been
consistently applied throughout this and the preceding year is set out below:

(a) Basis of Preparation

(i) Accounting Standards Applied

The financial statements have been prepared under the historical cost
convention, except for the measurement at fair value of investments, and in
accordance with applicable United Kingdom Accounting Standards and with the
Statement of Recommended Practice (SORP) `Financial Statements of Investment
Trust Companies and Venture Capital Trusts' issued by the Association of
Investment Companies in January 2009.

(ii) Going Concern

The Company's Articles of Association require that, unless the AGM of the
Company to be held in 2013 approves an ordinary resolution releasing the
Directors from the obligation, the Directors shall convene an Extraordinary
General Meeting in 2014 at which a special resolution will be proposed to wind
up the Company. The Board intends to propose the necessary resolution at the
AGM in 2013 to seek release from the obligation to wind up the Company, and the
financial statements have therefore been drawn up on the going concern basis.
Accordingly the accounts do not include any adjustments which might arise from
the reconstruction or liquidation of the Company.

2. Income

                                                            2013         2012
                                                           £'000        £'000
Income from investments                                                      
Overseas dividends                                         4,150        4,132
Scrip dividends                                              140          484
UK dividends                                                 267          120
Total dividend income                                      4,557        4,736
Other income                                                                 
Interest                                                       -            2
Total income                                               4,557        4,738

3. Investment Management Fee

                                  2013                       2012           
                        Revenue  Capital    Total  Revenue  Capital    Total
                          £'000    £'000    £'000    £'000    £'000    £'000
Investment management       339    1,016    1,355      313      940    1,253

Details of the investment management and secretarial agreement are contained in
the Annual Financial Report. At 30 April 2013, £367,000 was due for payment in
respect of the management fee (2012: £304,000).

4. Return per Ordinary Share

                                                            2013         2012
                                                           £'000        £'000
Return per ordinary share is based on the                                    
Revenue return                                             3,328        3,593
Capital return                                            15,234     (11,498)
Total return                                              18,562      (7,905)
                                                            2013         2012
Weighted average number of ordinary shares                                   
  in issue during the year:                                                  
  - basic                                            101,744,195   94,419,356
  - dilutive potential shares arising from               619,906    3,062,250
subscription shares                                                          
  - diluted                                          102,364,101   97,481,606

The diluted return per ordinary share is based on the weighted average number
of ordinary shares in issue during the year, as adjusted in accordance with the
requirements of FRS22 `Earnings per Share'.

In calculating the diluted return, the exercise of all the subscription shares
has been assumed, with the exercise proceeds of 125p per share being used to
purchase ordinary shares at the average market price up to the subscription
share exercise date of 139.16p.

The subscription shares were dilutive when, and only when, their conversion to
ordinary shares would have decreased total earnings per ordinary share or
increased total loss per ordinary share. For the year ended 30 April 2012 there
was no dilution to the total return per ordinary share based on the average
market price for the year of 150.77p.

5. Dividends on Ordinary Shares

Dividends on shares paid in the year:

                                         2013                   2012         
                                      pence      £'000      pence       £'000
Interim/final dividend in               3.2      2,981        2.9       2,730
respect of previous year                                                     
Unclaimed dividends in respect            -        (1)          -         (6)
of prior years                                                               
                                        3.2      2,980        2.9       2,724

Dividend on shares payable in respect of the current year:

                                         2013                   2012         
                                      pence      £'000      pence       £'000
Final/interim dividend proposed         3.2      3,389        3.2       2,981

6. Share Capital

(a) Allotted, called-up and fully paid

                                                          2013         2012
                                                         £'000        £'000
105,911,686 (2012: 93,165,757) ordinary shares          10,591        9,317
of 10p each                                                                
3,277,224 (2012: nil) treasury shares of 10p               328            -
Nil (2012: 17,648,153) subscription shares of 1p             -          176
                                                        10,919        9,493

(b) Share movements

                                        ordinary     Treasury  subscription
                                          number       number        number
Number at start year                  93,165,757            -    17,648,153
Exercise of subscription shares       17,648,153            -  (17,648,153)
Shares bought back and cancelled     (1,625,000)            -             -
Shares bought back into treasury     (3,277,224)    3,277,224             -
                                     105,911,686    3,277,224             -
                                        ordinary     Treasury  subscription
                                          number       number        number
Number at start year                  94,136,605            -    18,468,305
Exercise of subscription shares          820,152            -     (820,152)
Shares bought back and cancelled     (1,791,000)            -             -
                                      93,165,757            -    17,648,153

Each subscription share conferred the right to subscribe for one ordinary share
on or around 31 August for each of the years 2010 to 2012 at an exercise price
of 125p per share. All outstanding subscription rights were exercised on 31
August 2012. As a result, 17,648,153 subscription shares were converted to
17,648,153 ordinary shares on 3 September 2012. The Company subsequently bought
back 2,678,325 of these shares into treasury. The Company also bought back a
further 2,223,899 ordinary shares at an average price of 138.50p each, of which
598,899 were retained in treasury and 1,625,000 were cancelled.

(c) Winding-up provisions

The Directors are obliged to convene an Extraordinary General Meeting (EGM) to
consider a special resolution to wind up the Company every third year from the
date of the AGM at which the Directors were released from such obligation. At
the AGM in 2010 the Directors were released from their obligation to convene an
EGM and a resolution to release the Directors from their obligation to convene
an EGM will be put to shareholders at this year's AGM.

(d) Tender offer

As explained in detail in the Annual Financial Report, the Board intends to
seek the approval of shareholders to implement a tender offer for up to 15% of
the Company's issued share capital.

7. Net Asset Value

The net asset values attributable to each share in accordance with the
Company's Articles are set out below.

                                                           2013          2012
Ordinary shareholders' funds                       £195,528,000  £164,565,000
Subscription shareholders' funds of 1p each                   -      £176,000
Total shareholders' funds                          £195,528,000  £164,741,000
Number of ordinary shares in issue, excluding       105,911,686    93,165,757
treasury shares                                                              
Net asset value per ordinary share                       184.6p        176.6p
Ordinary shareholders' funds                                n/a  £186,801,000
Number of ordinary shares in issue, excluding               n/a   110,813,910
treasury shares                                                              
Net asset value per ordinary share                          n/a        168.6p

No diluted NAV is calculated as there were no subscription shares in issue at
the year end. For 2012 the diluted net asset value per ordinary share assumed
that all outstanding subscription shares were converted into ordinary shares at
the year end based on an exercise price for the subscription shares of 125p per

8. Related Party Transactions and Transactions with the Manager

Invesco Asset Management Limited (IAML), a wholly owned subsidiary of Invesco
Limited, acts as Manager, Company Secretary and Administrator to the Company.
Details of IAML's services and fees are disclosed in the Annual Financial

Fees paid to Directors and full details of Directors' interests are disclosed
in the Annual Financial Report.

9. This Annual Financial Report Announcement is not the Company's statutory
accounts. The above results for the year ended 30 April 2013 have been agreed
with the auditors and are an abridged version of the Company's full accounts,
which have been approved and audited with an unqualified report. The 2012 and
2013 statutory accounts received unqualified reports from the Company's
auditors and did not include any reference to matters to which the auditors
drew attention by way of emphasis without qualifying the reports, and did not
contain a statement under s498 of the Companies Act 2006. The financial
information for 2012 is derived from the statutory accounts for 2012 which have
been delivered to the Registrar of Companies. The 2013 accounts will be filed
with the Registrar of Companies in due course.

10. The Audited Annual Financial Report will be posted to shareholders shortly
Copies may be obtained during normal business hours from the Company's
registered office, 30 Finsbury Square, London, EC2A 1AG. A copy of the Annual
Financial Report will be available from Invesco Perpetual on the following

11. The Annual General Meeting of the Company will be held at 12.00 noon on 8
August 2013 at 30 Finsbury Square, London EC2A 1AG.

By order of the Board

Invesco Asset Management Limited - Company Secretary

1 July 2013


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Annual Financial Report - RNS