REG-INVESCO Asia Trust: Final Results - Part 2

- Part 2: For the preceeding part double click [ID:nPRrJ20BBa]

stockmarkets. 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. Additionally, performance is geared by bank borrowings which may
accentuate any decline in performance. Other significant risks include
consistent underperformance by the Manager, or the market rating of the Company
failing to reflect good performance.

While the Board obviously cannot influence market movements, it is vigilant in
monitoring and taking steps to mitigate the effects of falls in markets should
they occur. As has been indicated, the performance of the Manager is carefully
monitored by the Board, and the continuation of the Manager's mandate is
revisited every six months. The Board has established guidelines to ensure that
the investment policy that it has approved is pursued by the Manager. 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 net asset value;
and there are in place both buy-back and issuance facilities to assist in the
management of this process.

The Company is subject to various laws and regulations by virtue of its status
as an investment trust and its listing on the London Stock Exchange. A breach
of s.842 ICTA could lead to the Company being subject to capital gains tax on
the profits arising from the sale of its investments. A serious breach of other
regulatory rules might lead to suspension from the Stock Exchange or to a
qualified Audit Report. Other control failures, either by the Manager or any
other of the Company's service providers, might result in operational or
reputational problems, erroneous disclosures or loss of assets through fraud,
as well as breaches of regulations.

The Manager reviews the level of compliance with s.842 ICTA and other financial
regulatory requirements on a daily basis. All transactions, income and
expenditure are reported to the Board. The Board regularly considers all risks,
the measures in place to control them and the possibility of any other risks
that could arise. The Board ensures that satisfactory assurances are received
from service providers. The Manager's Compliance Officer produces regular
reports for review by the Company's Audit Committee.

Risks and Risk Management Policies are also detailed in the financial
statements in the Annual Financial Report.

Directors' Responsibility Statement

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 that law the Directors have elected to prepare financial
statements in accordance with United Kingdom Generally Accepted Accounting
Practice. The financial statements are required by law to 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, 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, to the best of their knowledge, state that:

 the financial statements, prepared in accordance with United Kingdom
Generally Accepted Accounting Practice, give a true and fair view of the
assets, liabilities, financial position and loss of the Company; and

 the Report of the Directors 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.

The Directors are responsible for keeping proper accounting records that
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 1985. 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.

David Hinde

Chairman

Signed on behalf of the Board of Directors

19 June 2008

Income Statement for the year ended 30 April

2008 2007

Revenue Capital Total Revenue Capital Total

Return Return Return Return Return Return

�'000 �'000 �'000 �'000 �'000 �'000

Gains on - 17,239 17,239 - 9,623 9,623
investments

Gains/(losses) on
foreign

currency - 50 50 - (160) (160)
revaluation

Income 3,247 - 3,247 2,816 - 2,816

Investment
management

fee (250) (750) (1,000) (208) (624) (832)

Other expenses (441) (30) (471) (419) (46) (465)

Return before
finance

costs and 2,556 16,509 19,065 2,189 8,793 10,982
taxation

Finance costs (120) (361) (481) (95) (285) (380)

Return on ordinary

activities 2,436 16,148 18,584 2,094 8,508 10,602
before tax

Tax on ordinary (674) 182 (492) (660) 267 (393)
activities

Net return on
ordinary

activities after
tax for

the financial 1,762 16,330 18,092 1,434 8,775 10,209
year

Return per
ordinary

share:

Basic 1.8p 16.2p 18.0p 1.3p 8.3p 9.6p

The total column of this statement represents the Company's profit and loss
account prepared in accordance with the accounting polices detailed in note 1
to the financial statements. The supplementary revenue and capital columns are
both prepared under guidance published 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

Capital

Share Redemp- Capital Capital

Share Premium tion Special Reserve Reserve - Revenue
-

Capital account Reserve Reserve realised Unrealised Reserve Total

�'000 �'000 �'000 �'000 �'000 �'000 �'000 �'000

FOR THE YEAR
ENDED 30 APRIL
2007

At 30 April 10,596 74,588 650 25,796 (28,357) 21,727 2,209 107,209
2006

Net return for - - - - 7,101 1,674 1,434 10,209
the year

Final dividend - - - - - - (1,272) (1,272)

At 30 April 10,596 74,588 650 25,796 (21,256) 23,401 2,371 116,146
2007

FOR THE YEAR
ENDED 30 APRIL
2008

Net return for - - - - 21,963 (5,633) 1,762 18,092
the year

Final dividend - - - - - - (1,378) (1,378)

Shares
bought-back

and cancelled (1,213) - 1,213 (13,998) - - - (13,998)

At 30 April 9,383 74,588 1,863 11,798 707 17,768 2,755 118,862
2008

Balance Sheet

at 30 April

2008 2007

�'000 �'000

Fixed assets

Investments held at fair value 120,155 123,057

Current assets

Debtors 555 527

Cash at bank 1,123 1,360

1,678 1,887

Creditors: amounts falling due within one year (2,858) (8,749)

Net current liabilities (1,180) (6,862)

Total assets less current liabilities 118,975 116,195

Provisions (113) (49)

Total net assets 118,862 116,146

Capital and reserves

Share capital 9,383 10,596

Share premium account 74,588 74,588

Other reserves:

Capital redemption reserve 1,863 650

Special reserve 11,798 25,796

Capital reserve - realised 707 (21,256)

Capital reserve - unrealised 17,768 23,401

Revenue reserve 2,755 2,371

Total Shareholders' funds 118,862 116,146

Net asset value per ordinary share

Basic 126.7p 109.6p

These financial statements were approved and authorised for issue by the Board
of Directors on 19 June 2008.

David Hinde

Chairman

Signed on behalf of the Board of Directors

Cash Flow Statement

for the year ended 30 April

2008 2007

�'000 �'000

Cash inflow from operating activities 979 1,021

Servicing of finance (483) (382)

Taxation (206) (179)

Capital expenditure and financial investment 20,299 (34)

Dividends paid (1,378) (1,272)

Net cash inflow/(outflow) before management of
liquid

resources and financing 19,211 (778)

Management of liquid resources 412 (468)

Financing (19,498) 1,200

Increase/(decrease) in cash in the year 125 (46)

Reconciliation of cash flow to movement in net
debt

Increase/(decrease) in cash in the year 125 (46)

Cash outflow/(inflow) from movement in debt 5,500 (1,200)

Cash (inflow)/outflow from (decrease)/increase (412) 468
in liquid resources

Change in net debt resulting from cash flows 5,213 (778)

Translation differences 50 (160)

Movement in net debt in the year 5,263 (938)

Net debt at beginning of year (6,640) (5,702)

Net debt at end of year (1,377) (6,640)

Notes

1. Basis of Preparation

Accounts Basis

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' issued by the Association of Investment Companies in 2005.

2. Income

2008 2007

�'000 �'000

Income from investments

UK dividends 19 18

Overseas dividends 2,817 2,636

Scrip dividends 385 151

3,221 2,805

Other income

Deposit interest 26 11

Total income 3,247 2,816

3. Investment management fee

2008 2007

Revenue Capital Total Revenue Capital Total

�'000 �'000 �'000 �'000 �'000 �'000

Investment 250 750 1,000 208 624 832

management fee

4. Return per Ordinary Share

The revenue, capital and total return per ordinary share is based on each
applicable return on ordinary activities after tax and on 100,690,977 (2007:
105,962,425) ordinary shares, being the weighted average number of shares in
issue throughout the year.

5. Net asset value

The net asset value per ordinary share and the net assets attributable at the
year end were as follows:

Net asset value Net assets

per share attributable

2008 2007 2008 2007

Pence Pence �'000 �'000

Ordinary shares

- Basic 126.7 109.6 118,862 116,146

The basic net asset value per ordinary share is based on the net assets at the
year-end and on 93,837,425 (2007: 105,962,425) ordinary shares, being the
number of ordinary shares in issue at the year-end.

The Annual Financial Report Announcement is not the Company's statutory
accounts. The above results for the year ended 30 April 2008 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 2007 and
2008 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 s.237(2) or (3) of the Companies Act 1985. The
financial information for 2007 is derived from the statutory accounts for 2007
which have been delivered to the Registrar of Companies. The 2008 accounts will
be filed with the Registrar of Companies in due course.

The Annual General Meeting of the Company will be held at 12.00 noon on 6
August 2008 at 30 Finsbury Square, London EC2A 1AG.

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.

By order of the Board

Invesco Asset Management Limited

19 June 2008

END
nPRrJ20BBb