REG-INVESCO Asia Trust: Final Results

Invesco Asia Trust plc

Annual Financial Report Announcement

for the Financial Year Ended 30 April 2009

FINANCIAL INFORMATION AND PERFORMANCE STATISTICS

The benchmark index of the Company is the MSCI All Countries Asia Pacific ex
Japan Index (adjusted for sterling)

Performance Statistics

At At

30 April 30 April %

2009 2008 change

Net assets (£'000) 98,667 118,862 -17.0

Actual gearing 100 102

Asset gearing 100 101

Net asset value (`NAV') per ordinary
share:

- from balance sheet 105.1p 126.7p -17.0

- after charging proposed final 103.6p 125.2p -17.3
dividend (capital NAV)

Benchmark Index(i) - capital return 190.6 247.9 -23.1

Mid-market price per ordinary share 94.5p 112.8p -16.2

Discount per ordinary share on capital 8.8% 9.9%
NAV

Total Returns(i):

- NAV -16.2

- Benchmark Index -20.3

(i) Source: Thomson Financial Datastream.

Revenue

Gross income (£'000) 2,711 3,247 -16.5

Net revenue available for ordinary 1,463 1,762 -17.0
shares (£'000)

Dividend per share 1.5p 1.5p

Total expense ratio 1.0% 1.3%

Return per Ordinary Share

Revenue return 1.6p 1.8p

Capital return (21.6)p 16.2p

Total return (20.0)p 18.0p

CHAIRMAN'S STATEMENT

Performance and Prospects

The issues which were growing in importance at the time of the previous annual
report, including weaker global growth and stress in financial sectors,
increased in significance over the last twelve months. These factors combined
to create a global recession from which Asia was unable to escape, despite not
having the structural weaknesses of Western economies. Authorities in the
region responded quickly by cutting interest rates and implementing large
fiscal packages to fill the void left by the sharp contraction in global
activity. Whilst the period was characterised by weakness in both economic data
and in equity markets, it ended with a tone of cautious optimism based on signs
that the worst of the economic slump may have passed. Over a period of
unprecedented volatility, the net asset value per ordinary share fell 16.2%,
compared to the benchmark, the MSCI All Countries Asia Pacific ex Japan index
adjusted for sterling, which fell 20.3% (all figures are on a total return
basis). The Company's share price dropped from 112.8p to 94.5p, while the
discount to net asset value at which the shares traded narrowed to 8.8%, from
9.9% at the start of the year.

Dividend

The Board is pleased to recommend a final dividend of 1.5p per ordinary share
(2008: 1.5p). The dividend, which is subject to the approval of shareholders at
the Annual General Meeting, will be payable on 14 August 2009 to shareholders
on the register on 17 July 2009. £55,000 will be carried forward to the Revenue
Reserve.

Gearing

The Company has a £15 million uncommitted revolving credit facility. During the
second part of the year and at the year-end, the Company was ungeared. Since
the year-end, the Manager has drawn down a modest amount and at the latest
practical time before publication of this document, the gearing was 102 based
on a draw-down of £1,500,000.

Board Renewal

There has been some change to the membership of the Board over the past months.
On 10 March 2009, Carol Ferguson and Tom Maier were appointed new Directors of
the Company and we look forward to their contribution in the future.

On 30 April 2009, Sir Robin McLaren retired from the Board. Having been a
Director of the Company since 1995 he had decided that it was time for him to
step down. The Board thanks Sir Robin warmly for his invaluable and important
contribution to the Company's business during his 14 years' service as a
Director. His presence will be sorely missed and his colleagues wish him all
the very best for the future.

Robin Baillie has informed the Board that he will stand down from the Board
following the 2010 Annual General Meeting.

Proposed Bonus Issue of Subscription Shares

Together with this annual financial report, shareholders will have received
documentation in respect of a proposed bonus issue of subscription shares to
shareholders pro rata on a one-for-five basis. An Extraordinary General Meeting
will follow this year's Annual General Meeting to ask for shareholders'
approval to the proposal, the details of which can be found in the enclosed
prospectus and in my letter to shareholders.

Special Business at the Annual General Meeting

* Share Issues and Buy Backs

Pursuant to Ordinary Resolution 10 and Special Resolution 11, the Board seeks
authority from shareholders to issue new ordinary shares, if necessary, while
disapplying pre-emption rights. This authority was denied by shareholders at
the last AGM, but the Board considers that it is prudent to have the power to
issue shares as and when they consider it appropriate. New shares and any held
in treasury would not be issued at prices below the prevailing net asset value,
and shares held in treasury would only be reissued on terms that are seen to be
in the best interests of shareholders.

With Special Resolution 12, the Board seeks renewed authority to undertake buy
backs of the Company's ordinary shares. As last year, we are proposing that
shares so acquired by the Company can be held in treasury with a view to their
resale, if appropriate, or later cancellation. Shares that are purchased but
not cancelled are known as Treasury Shares. The holding of Treasury Shares is
restricted to 10% of each class of a Company's share capital. During the year,
the Board has not bought back any shares and no shares are held in treasury.

* Calling General Meetings at 14 Days' Notice

It is expected that the new EU Shareholder Rights Directive that comes into
effect on 3 August 2009 will amend the Companies Act 2006 so that the notice
period for a general meeting will be 21 days (at present 14 days). However,
companies are able to pass a special resolution permitting them to continue to
call general meetings (other than AGMs) on a 14 day notice period if they allow
voting by electronic means.

Approval of Special Resolution 13 will therefore enable the Board to call any
general meetings other than AGMs on 14 days' notice, should that be necessary.

The Board recommends that shareholders vote in favour of all resolutions as
each of the Directors intend to do in respect of their own shares.

Outlook

A degree of uncertainty continues to surround the near-term outlook for Asian
economies. Demand from Western trading partners remains weak as businesses and
consumers reduce leverage, whilst the extent to which Asian domestic growth can
offset this remains unclear. However, the commitment of Asian governments and
central banks to supporting growth is not in dispute and there is growing
evidence that their efforts have been successful. Key economic indicators
including exports and industrial production have stabilised and China, which
remains an important regional driver, has been among the earliest to
demonstrate the potential for recovery.

The outlook for Asia is also supported by its intrinsic advantages. Asia has a
large and youthful population that will be critical to support growth over the
long-term. While Western economies are shackled by high levels of debt,
financial sectors reliant on government support and the prospect of rising tax
burdens to fund sovereign borrowing, Asia has high savings rates and
governments with generally sound finances. These factors are positive for
Asia's growth outlook, particularly relative to other world economies, and they
are likely to help Asian businesses to grow earnings in the years ahead.
Valuations, at around 1.6 times book value, are not demanding in an historical
context and the Company has the potential to capitalise on current stock
specific opportunities as well as what we see as the region's longer-term
growth prospects.

I look forward to seeing shareholders at the Annual General Meeting of the
Company on 12 August 2009, when there will be opportunities for them to meet
members of the Board and the Investment Manager.

David Hinde

Chairman

3 July 2009

MANAGER'S REPORT

Market & Economic Review

Asian equity markets experienced a difficult period during the 12 months under
review against a poor economic backdrop. Whilst Asian economies were reasonably
resilient during the early part of the period, the declining global economy and
weakening Western financial sector led to a fall in activity across the region.
Against this background, investors moved into perceived `safe-haven' assets as
risk aversion increased and the outlook for growth weakened.

In China, economic performance in the early part of the period remained robust,
though it had already started to slow from previous highs. In April 2008,
exports were still growing in excess of 20% year-on-year, but inflation
remained a concern. Chinese authorities tried to cool lending growth by
increasing bank reserve requirements. By the end of the period, inflation had
turned negative with food and oil prices dropping heavily, whilst interest
rates and reserve requirements had been lowered dramatically. With Western
economies in turmoil, exports were a prominent casualty and recorded double
digit annualised falls early in the year. The weak external situation combined
with weakness in certain domestic areas, such as housing, led to an inevitable
easing in the pace of economic growth. First quarter growth in 2009 of 6.1% was
the slowest rate of expansion for almost a decade, well behind the 10.6%
achieved in the first quarter of 2008. However, whilst many other leading
global economies sank into recession, China's economy continued to grow and
government initiatives helped to mitigate some of the downward pressures. In
November 2008, authorities announced a RMB4 trillion (US$586 billion) stimulus
plan, which signalled their commitment to maintaining growth, and by the end of
the period there were signs that these measures were feeding through to the
economy.

The chain of events characterised by stalling export demand, faltering growth
and the implementation of interest rate cuts and stimulus measures was common
throughout the region. Countries that are particularly sensitive to export
demand fared the worst, for example Hong Kong and Singapore recorded GDP
contractions of -7.8% year-on-year and -10.1% year-on-year respectively in the
first quarter of 2009. Early in the year Singapore's government had outlined
stimulus plans totalling just under US$14 billion to help slow the pace of
decline and similar measures were undertaken across the region, including
spending plans valued at US$26 billion, US$13 billion and US$6 billion in
Australia, Korea and Taiwan respectively.

In Taiwan and Korea, exports recorded year-on-year declines of 44% and 34%
respectively in January, as demand from key trading partners fell heavily.
Although still contracting, the pace of decline moved off these lows in
subsequent months, adding to hopes that the worst of the current downturn may
have been seen. Industrial production data from these two countries also
contributed to the early signs of stabilisation as year-on-year declines again
hit lows in January and then showed some evidence of recovery. Taiwan also
benefited from an improvement in cross-straits links with China. Towards the
end of the period, equity markets in Taiwan rose sharply on news that the
Chinese government was set to lift the ban on investments in the country. The
news was accompanied by the announcement that China Mobile is to purchase a 12%
stake in Far EasTone, which could lead the way for future investments in Taiwan
by Chinese companies. India, like China, also proved to be resilient and whilst
the pace of growth slowed, the economy continued to expand. Having grown by
8.8% in the first quarter of 2008, growth had eased to 5.3% by the final
quarter of the year, which still represented a robust level of expansion by
comparison with peers both within Asia and in the West.

In a difficult economic climate, steep equity market declines were seen across
Asia. The heaviest falls occurred in October and November following the demise
of Lehman Brothers, and also in the first 2 months of 2009, although, unlike
developed markets, Asia did not go through October lows unlike Developed
markets, as concerns surrounding the global economic outlook and the weakness
of bank balance sheets intensified. China's equity markets were extremely
volatile and the Shanghai Composite index dropped by more than 50% before
bottoming and rising by over 45% from its low by the end of the period. At
their lows, many Asian markets had lost more than half their value from the
start of the period, but the strong rally from early March of this year saw a
significant part of those losses recouped. Equity markets in Hong Kong, Korea
and Taiwan all rose more than 40% from their lows and the Indonesian equity
market gained more than 50%. The improvement in markets was based around
perceptions that the worst of the economic slowdown had passed. The bounce in
prices helped to mitigate part of the earlier steep falls, but could not
prevent indices in the region closing in negative territory over the period as
a whole.

Company Performance

In the year ended 30 April 2009, the Company's net asset value declined by
16.2% (total return, £), but a stronger performance than the benchmark, the
MSCI All Countries Asia Pacific ex Japan Index, which fell 20.3% (total return,
£). Although the relative return was above the benchmark, the Company's
negative absolute performance was a consequence of elevated volatility and a
number of exceptional events that resulted in equity markets globally falling
in value. These included the failure, acquisition or government rescue of high
profile Western banking groups.

At a sector level, the Company's exposure to industrial conglomerates, e.g.
Beijing Enterprise Holdings, was positive for performance, and stock selection
in the sector was strong. The exposure to the insurance sector was beneficial
and stock selection was again strong, with China Insurance International
providing a robust performance. A low exposure to the commercial banking sector
was positive, but stock selection detracted from overall performance with Dah
Sing Banking Group providing a disappointing return. Stock selection within
food products was also negative, including the holding in Global Bio-Chem
Technology, as its average selling prices fell substantially in the second half
of the year.

At a country level, the low exposure to Australia was positive as the country's
equity market is dominated by financials and resources groups which suffered
during the period. The high weighting in Hong Kong also added to returns.
Whilst a low exposure to Korea for the majority of the period was positive,
stock selection detracted from performance.

Outlook for Asian economies and markets

As Asia continues to adjust to the global slowdown, year-on-year comparisons
leave many of Asia's key economic indicators in negative territory. However,
there are some indications that the pace of decline has started to slow.
Looking ahead, we believe that the negative annual comparisons will continue to
abate further into the year, particularly from the third quarter onwards. This
should signal that the trough of the current cycle has passed. However, our
cautiously optimistic outlook is predicated on developed economies also
stabilising and the Western financial system improving. In neither case do we
require robust recovery, but rather that conditions stop deteriorating and
stabilise gradually. This would add impetus to Asia's recovery, which is
already likely to outpace that of the West because of Asia's stronger economic
fundamentals. Asia's banking systems are generally healthy, with relatively low
loan to deposit ratios and high levels of capital. Domestic demand is supported
by generally low levels of sovereign, corporate and personal debt. Asia has
also seen sustained loosening of monetary policy over recent months which,
allied to government stimulus measures, should help to underpin future growth.
Corporate earnings have seen significant declines from recent years' highs and
the outlook remains tough. Whilst we are not expecting a strong rebound in
corporate profits during the year, we are optimistic about the longer-term
potential for Asian businesses, and despite the recent rally in markets we
believe that the challenging earnings environment is largely discounted in
valuations.

Currently, many Asian economies, particularly the most export-orientated, are
either in or approaching recession but several, including China and India are
likely to post GDP growth in 2009. Over time, we expect them to help bring
other Asian economies out of recession, and recent data from these economies
has been encouraging. In China, this has been assisted by the vast stimulus
package announced in November of last year, which is now feeding through into
the real economy. China's corporate sector has also seen substantial loan
growth, with the annual lending target already met. This has led to concerns
about a rise in non-performing loans, and over the medium-term there may be an
increase but we believe it will be manageable as much of the lending has been
to state-led institutions to build much needed infrastructure. Healthcare is
also an area that is experiencing significant investment. This has positive
long-term implications, as stronger state provision would encourage greater
domestic consumption and could see the traditionally high savings rates in
China come down. We do not envisage China returning to double-digit rates of
expansion, but we expect growth to be positive and to be well ahead of
performance globally in the medium-term.

We expect Asia's contribution to global GDP to become increasingly significant
in the years ahead, which would be positive for its equity markets. The region
is not beset by the structural financial sector issues of the West and we
believe it is in a good position to benefit as global economies start to
recover.

Strategy

The Company is positioned to benefit from a sustainable recovery in Asian
economies but at the same time we believe our valuation focus helps to limit
the potential downside. Consumer demand is a prominent theme within the Trust
as we seek to exploit the long-term potential of the Chinese consumer sector.
The current exposure is through holdings in companies such as Hengan, Wumart
and China Green, which have strong growth prospects and good earnings
visibility. We have indirect exposure also to the consumer through the real
estate and insurance sectors. We feel that valuations among property groups
reflect an overly pessimistic outlook and the immature nature of the insurance
sector in China offers the potential for sustainable growth. The semiconductor
sector is another area of focus where we hold quality companies, including
Samsung Electronics and Taiwan Semiconductor Manufacturing. We believe these
will emerge from the economic slowdown with stronger competitive positions and
enhanced earnings potential.

In our view, many traditional defensive sectors, including utilities and
telecoms, are overvalued and already discount an optimistic outlook. The
Company has low exposure in these areas and in energy and materials, where we
expect the economic background to remain a constraint for earnings in the
near-term. We prefer to focus on areas where valuations are undemanding and
prospects for sustainable earnings growth are strong.

Geographically we favour China, as, in our view, it is best placed to recover
from the global downturn. Although the price-to-book value has rebounded to
1.6x on average, it remains below the historical average and we believe that
attractive opportunities still exist at the company level. We continue to have
low exposure to Australia which has the least attractive equity market
prospects in our view.

Our focus continues to be on companies with sound balance sheets which can
provide reliable earnings and robust levels of cash flow. Valuation is integral
to our investment strategy and we seek exposure to businesses where we feel
future growth potential is not adequately reflected in stock prices.

Stuart Parks

Investment Manager

3 July 2009

INVESTMENTS IN ORDER OF VALUATION

Classification of Investments

at 30 April 2009

Ordinary shares unless stated otherwise

R Red Chip Holdings

H H-Shares

At % of
Market

Value Portfolio

Company Principal Activity Country £'000

Samsung Electronics Technology Hardware South Korea 5,528 5.6
Equipment

Taiwan Semiconductor Semiconductors Taiwan 4,977 5.1

Manufacturing

Jardine Matheson Capital Goods Hong Kong 4,435 4.5

Wharf Diversified Financials Hong Kong 3,319 3.4

QBE Insurance Insurance Australia 3,066 3.1

China InsuranceR Insurance Hong Kong 3,000 3.0

Far Eastern Textile Capital Goods Taiwan 2,765 2.8

China MobileR Telecommunication Hong Kong 2,550 2.6
Services

Ping An InsuranceH Insurance China 2,528 2.6

United Phosphorus Materials India 2,337 2.4

Top Ten Holdings 34,505 35.1

BHP Billiton Materials Australia 2,326 2.4

Shinsegae Food & Staples Retailing South Korea 2,047 2.1

Housing Development Banking India 1,967 2.0
Finance

China Life Insurance Taiwan 1,949 2.0

Cheung Kong Real Estate Hong Kong 1,863 1.9

West China Cement Materials United 1,816 1.8
Kingdom

KT&G Food, Beverages & Tobacco South Korea 1,766 1.8

China Green Food, Beverages & Tobacco Hong Kong 1,743 1.8

Bank of ChinaH Banking China 1,724 1.7

Bharti Airtel Telecommunication India 1,698 1.7
Services

Top Twenty Holdings 53,404 54.3

Newcrest Mining Materials Australia 1,534 1.6

Hengan International Household & Personal Hong Kong 1,530 1.5
Products

Jain Irrigation Capital Goods India 1,435 1.5

Infosys Technologies Software & Services India 1,422 1.4

Beijing EnterpriseR Capital Goods Hong Kong 1,405 1.4

SK Telecom Telecommunication South Korea 1,404 1.4
Services

PetrochinaH Energy China 1,393 1.4

Industrial & Banking China 1,390 1.4
Commercial

Bank of ChinaH

Sina Software & Services China 1,311 1.3

Macquarie Korea Transportation South Korea 1,283 1.3
Infrastructure

Top Thirty Holdings 67,511 68.5

Keppel Capital Goods Singapore 1,267 1.3

Polaris Securities Diversified Financial Taiwan 1,231 1 2

Korea Electric Power Utilities South Korea 1,228 1.2

Downer Commercial & Professional Australia 1,204 1.2
Services

Venture Technology Hardware Singapore 1,171 1.2
Equipment

Hon Hai Precision Technology Hardware Taiwan 1,162 1.2
Equipment

APA Utilities Australia 1,160 1.2

Delta Electronics Technology Hardware Taiwan 1,095 1.1
Equipment

Daegu Bank Banking South Korea 1,088 1.1

China Petroleum & Energy China 1,050 1.1
ChemicalH

Top Forty Holdings 79,167 80.3

At % of
Market

Value Portfolio

Company Principal Activity Country £'000

Dah Sing Banking Banking Hong Kong 1,050 1.1

HKR International Real Estate Hong Kong 1,036 1.0

Posco Materials South Korea 985 1.0

Westpac Banking Banking Australia 956 1.0

Filinvest Land Real Estate Philippines 944 1.0

Wumart StoresH Food & Staples Retailing China 904 0.9

PTT Energy Thailand 900 0.9

Chroma ATE Technology Hardware Taiwan 860 0.9
Equipment

Cosco PacificR Transportation Hong Kong 854 0.9

Korean Reinsurance Insurance South Korea 854 0.9

Top Fifty Holdings 88,510 89.9

Unilever Indonesia Household & Personal Indonesia 851 0.9
Products

M.P. Evans Food, Beverages & Tobacco United 759 0.8
Kingdom

Zhejiang ExpresswayR Transportation China 748 0.8

CPN Retail Growth Real Estate Thailand 724 0.7

Wah Lee Industrial Capital Goods Taiwan 700 0.7

Parkway Life Real Real Estate Singapore 679 0.7

Noble Capital Goods Hong Kong 612 0.6

Hong Kong Aircraft Transportation Hong Kong 589 0.6

Bandar Raya Real Estate Malaysia 459 0.5
Development
62 0.1
Ords

Warrants

521 0.6

Global Bio-Chem Materials Hong Kong 493 0.5
Technology

Top Sixty Holdings 95,186 96.8

Tambang Batubara Materials Indonesia 433 0.4

Petra Foods Food, Beverages & Tobacco Singapore 374 0.4

Taiwan Sogo Shingkong Commercial & Professional Taiwan 374 0.4
Security Services

Banco De Oro Banking Philippines 358 0.4
Universal

China Real Estate Real Estate United 358 0 4
Opportunities Kingdom

Dickson Concept Retailing Hong Kong 348 0.3

Singapore Petrol Energy Singapore 345 0.3

Dabur India Household & Personal India 188 0.2
Products

Jardine Strategic Capital Goods Hong Kong 173 0.2

Krisassets Capital Goods Malaysia 87 0.1

Top Seventy Holdings 98,224 99.9

Shandong WeigaoR Healthcare Equipment & China 76 0.1
Services

Bharat Heavy Capital Goods India 16 0.0

TOTAL 98,316 100.0

CLASSIFICATION OF INVESTMENTS BY COUNTRY/SECTOR

at 30 April

2009 2008

At % of At % of

Valuation Portfolio Valuation Portfolio

£'000 £'000

Australia

Materials 3,860 4.0 6,638 5.6

Consumer Discretionary - - 393 0.3

Industrials 1,204 1.2 1,669 1.4

Financials 4,022 4.1 2,460 2.1

Utilities 1,160 1.2 1,163 1.0

10,246 10.5 12,323 10.4

China

Energy 2,443 2.5 771 0.6

Consumer Staples 904 0.9 667 0.6

Consumer Discretionary - - 691 0.6

Industrials 748 0.8 694 0.6

Healthcare 76 0.1 - -

Financials 5,642 5.7 701 0.6

Information Technology 1,311 1.3 2,384 2.0

11,124 11.3 5,908 5.0

Hong Kong

Energy - - 1,618 1.3

Consumer Staples 3,273 3.3 1,021 0.9

Materials 493 0.5 - -

Consumer Discretionary 348 0.3 2,099 1.8

Industrials 8,068 8.2 4,873 4.0

Financials 10,268 10.4 16,021 13.3

Telecommunication Services 2,550 2.6 6,306 5.2

Utilities - - 3 -

25,000 25.3 31,941 26.5

India

Consumer Staples 188 0.2 2,482 2.0

Materials 2,337 2.4 2,480 2.1

Consumer Discretionary - - 1,112 0.9

Industrials 1,451 1.5 1,996 1.7

Financials 1,967 2.0 965 0.8

Information Technology 1,422 1.4 1,981 1.6

Telecommunication Services 1,698 1.7 1,237 1.0

9,063 9.2 12,253 10.1

Indonesia

Consumer Staples 851 0.9 641 0.5

Materials 433 0.4 1,097 0.9

Industrials - - 333 0.3

1,284 1.3 2,071 1.7

CLASSIFICATION OF INVESTMENTS BY COUNTRY/SECTOR

Continued

2009 2008

At % of At % of

Valuation Portfolio Valuation Portfolio

£'000 £'000

Malaysia

Consumer Discretionary - - 604 0.5

Industrials 87 0.1 74 0.1

Financials 521 0.6 1,699 1.4

Utilities - - 428 0.4

608 0.7 2,805 2.4

Philippines

Consumer Staples - - 417 0.3

Financials 1,302 1.4 2,413 2.0

1,302 1.4 2,830 2.3

Singapore

Energy 345 0.3 2,598 2.2

Consumer Staples 374 0.4 660 0.6

Industrials 1,267 1.3 2,923 2.4

Healthcare - - 1,367 1.1

Financials 679 0.7 2,505 2.1

Information Technology 1,171 1.2 1,106 0.9

3,836 3.9 11,159 9.3

South Korea

Consumer Staples 3,813 3.9 - -

Materials 985 1.0 1,138 0.9

Industrials 1,283 1.3 4,099 3.4

Financials 1,942 2.0 6,283 5.2

Information Technology 5,528 5.6 5,218 4.3

Telecommunication Services 1,404 1.4 - -

Utilities 1,228 1.2 - -

16,183 16.4 16,738 13.8

Taiwan

Materials - - 186 0.2

Consumer Discretionary - - 1,637 1.4

Industrials 3,839 3.9 1,236 1.0

Financials 3,180 3.2 7,130 6.0

Information Technology 8,094 8.3 7,840 6.5

15,113 15.4 18,029 15.1

Thailand

Energy 900 0.9 - -

Financials 724 0.7 816 0.7

1,624 1.6 816 0.7
CLASSIFICATION OF INVESTMENTS BY COUNTRY/SECTOR

Continued

2009 2008

At % of At % of

Valuation Portfolio Valuation Portfolio

£'000 £'000

Other

Materials 1,816 1.8 748 0.6

Financials 358 0.4 1,335 1.1

Consumer Staples 759 0.8 1,199 1.0

2,933 3.0 3,282 2.7

Total 98,316 100.0 120,155 100.0

RELATED PARTY TRANSACTIONS

David Hinde, the Chairman of the Company, is a non-executive director of Dah
Sing Banking Group, and the Fund holds shares in that company equivalent to
1.1% (2008: 1.3%) of the value of the portfolio. The Board has delegated
authority for investment selection to the Manager and the Manager has selected
this investment independently in accordance with the investment objective set
out in the annual financial report. The Board as a whole reviews the investment
portfolio on a regular basis and is satisfied that the investment was selected
in an objective manner and that no conflict of interest has arisen as a result
of the selection of this stock.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risk factors relating to the Company can be divided into the
following areas:

Investment Objective

The Company's investment objective is described in the annual financial report.
There is no guarantee that the Company's investment objective will be achieved
or will provide the returns sought by the Company.

Investment Process and Policy

At the core of the investment 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 selectively use valuation models in
order to understand the assumptions that the brokers/analysts have incorporated
into their valuation conclusions and as a structure into which the Manager can
input his 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 effectively controls stock-specific risk by
ensuring that portfolios are always appropriately diversified. Also, in-depth
and constant fundamental analysis of the portfolio's holdings provide the
Manager a thorough understanding of the individual stock risk taken. The
internal Performance and 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 managers
regarding portfolio construction and risk.

Portfolio performance is substantially dependent on the performance of Asian
and Australasian equities. These stocks are influenced by the general health of
the economies in the Far Eastern region. The Board recognises that market
conditions will affect portfolio performance. For a fuller discussion of the
economic and market conditions facing the Company and the prospects for future
performance, please see the Chairman's Statement and the Manager's Report in
the annual financial report.

Market Movement and Portfolio Performance

The Company's investments are traded on the Far Eastern, Indian and
Australasian 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 can be 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.

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. The
Manager strives to maximise the return from the investments held, but these
investments are influenced by market conditions and the Board acknowledges the
external influences on portfolio 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 annually. 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 buy-back facilities are in place to assist in the management of this
process. Share issuance facilities were rejected by shareholders at the AGM
held in 2008.

The past performance of the Company, and all of the investments in the
portfolio, are not necessarily indicative of future performance.

Foreign Exchange Risks

The Company will account for its activities and report its results in sterling
while investments will be made and realised in other currencies. The net asset
value of the Company will be reported in sterling. It is not generally the
Company's policy to engage in currency hedging. Accordingly, the movement of
exchange rates between sterling and the other currencies in which the Company's
investments are denominated or its borrowings are drawn down may have a
material effect, unfavourable or favourable, on the returns otherwise
experienced on the investments made by the Company.

The Ordinary Shares

The market value of, and the income derived from, the Company's ordinary shares
can fluctuate and may go down as well as up. The market value may not always
reflect the NAV per ordinary share. The market price of an ordinary share may
therefore trade at a discount to its NAV. As at 30 April 2009, an ordinary
share of the Company traded at a discount of 8.8%.

The market value of the ordinary shares will be affected by a number of
factors, including the dividend yield from time to time of the ordinary shares,
prevailing interest rates and supply and demand for those ordinary shares,
along with wider economic factors and changes in the law, including tax law and
political factors. As such, the market value of an ordinary share may vary
considerably from its underlying value. There can be no guarantee that any
appreciation in the value of the Company's investments will occur and investors
may not get back the full value of their investment.

Although the ordinary shares are listed on the Official List and admitted to
trading on the London Stock Exchange's main market for listed securities, it is
possible that there may not be a liquid market in the ordinary shares and
shareholders may have difficulties in selling them.

Derivatives

The Company may enter into derivative transactions 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 an imperfect correlation,
the Company may be exposed to greater loss than if the derivative had not been
entered into.

Gearing

Performance may be geared by way of an unsecured £15 million credit facility.
In current market conditions, there is no guarantee that the Company's bank
loan facility would be renewable at maturity or on terms acceptable to the
Company. If it were not possible to renew this facility or replace it with
another lender, the amounts owing by the Company would need to be funded by the
sale of securities.

Gearing levels may change from time to time in accordance with the Manager's
assessment of risk and reward. As a consequence of gearing, any reduction in
the value of the Company's investments would lead to a correspondingly greater
reduction in its net asset value (which is likely to affect the Company's share
price adversely). Any reduction in the number of shares in issue (for example
as a result of buy-backs) will, in the absence of a corresponding reduction in
borrowings, result in an increase in the Company's gearing.

Regulatory and Tax Related

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 s842 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 s842 ICTA and other financial
regulatory requirements on a regular 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 regular reports for review by
the Company's Audit Committee. Risks and risk management policies are also
detailed in the notes to the financial statements.

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
Company Law (as updated by 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.

David Hinde

Chairman

Signed on behalf of the Board of Directors

3 July 2009

INCOME STATEMENT

for the year ended 30 April

2009 2008

Revenue Capital Total Revenue Capital Total

return return return return return return

£'000 £'000 £'000 £'000 £'000 £'000

(Losses)/gains on

investments - (19,748) (19,748) - 17,239 17,239

(Losses)/gains on foreign

currency revaluation - (98) (98) - 50 50

Income 2,711 - 2,711 3,247 - 3,247

Investment management

fee (165) (496) (661) (250) (750) (1,000)

Other expenses (437) (23) (460) (441) (30) (471)

Return before finance

costs and taxation 2,109 (20,365) (18,256) 2,556 16,509 19,065

Finance costs (11) (34) (45) (120) (361) (481)

Return on ordinary

activities before tax 2,098 (20,399) (18,301) 2,436 16,148 18,584

Tax on ordinary activities (635) 149 (486) (674) 182 (492)

Net return on ordinary

activities after tax for

the financial year 1,463 (20,250) (18,787) 1,762 16,330 18,092

Return per ordinary share:

Basic 1.6p (21.6)p (20.0)p 1.8p 16.2p 18.0p

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
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

Capital

Share Share Redemption Special Capital Revenue

Capital Premium Reserve Reserve Reserve reserve Total

£'000 £'000 £'000 £'000 £'000 £'000 £'000

At 30 April 2007 10,596 74,588 650 25,796 2,145 2,371 116,146

Net return for - - - - 16,330 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 2008 9,383 74,588 1,863 11,798 18,475 2,755 118,862

Net return for - - - - (20,250) 1,463 (18,787)
the year

Final dividend - - - - - (1,408) (1,408)

At 30 April 2009 9,383 74,588 1,863 11,798 (1,775) 2,810 98,667

BALANCE SHEET

at 30 April

2009 2008

£'000 £'000

Fixed assets

Investments designated at fair value 98,316 120,155

Current assets

Debtors 651 555

Cash at bank 568 1,123

1,219 1,678

Creditors: amounts falling due within one (795) (2,858)
year

Net current assets/(liabilities) 424 (1,180)

Total assets less current liabilities 98,740 118,975

Provisions (73) (113)

Total net assets 98,667 118,862

Capital and reserves

Share capital 9,383 9,383

Share premium 74,588 74,588

Other reserves:

Capital redemption reserve 1,863 1,863

Special reserve 11,798 11,798

Capital reserve (1,775) 18,475

Revenue reserve 2,810 2,755

Total Shareholders' funds 98,667 118,862

Net asset value per ordinary share

Basic 105.1p 126.7p

CASH FLOW STATEMENT

for the year ended 30 April

2009 2008

£'000 £'000

Cash inflow from operating activities 1,405 979

Servicing of finance (41) (483)

Taxation (112) (206)

Capital expenditure and financial investment 2,199 20,299

Dividends paid (1,408) (1,378)

Net cash inflow before management of liquid

resources and financing 2,043 19,211

Management of liquid resources 56 412

Financing (2,500) (19,498)

(Decrease)/increase in cash in the year (401) 125

Reconciliation of cash flow to movement in net funds
/(debt)

(Decrease)/increase in cash in the year (401) 125

Cash outflow from movement in debt 2,500 5,500

Cash inflow from decrease in liquid resources (56) (412)

Change in net funds/(debt) resulting from cash flows 2,043 5,213

Translation differences (98) 50

Movement in net funds/(debt) in the year 1,945 5,263

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

Net funds/(debt) at end of year 568 (1,377)

NOTES

1. Basis of Preparation

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 2009.

2. Income

2009 2008

£'000 £'000

Income from investments

Overseas dividends 2,599 2,817

Scrip dividends 58 385

UK dividends 19 19

Total dividend income 2,676 3,221

Other income

Interest 35 26

Total income 2,711 3,247

3. Investment management fee

2009 2008

Revenue Capital Total Revenue Capital Total

£'000 £'000 £'000 £'000 £'000 £'000

Investment management fee 167 503 670 250 750 1,000

VAT recovered on

management fees (2) (7) (9) - - -

165 496 661 250 750 1,000

4. Return per Ordinary Share

The revenue, capital and total returns per ordinary share are based on each
applicable return on ordinary activities after tax and on 93,837,425 (2008:
100,690,977) 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

2009 2008 2009 2008

Pence Pence £'000 £'000

Ordinary shares

- Basic 105.1 126.7 98,667 118,862

The basic net asset value per ordinary share is based on the net assets at the
year-end and on 93,837,425 (2008: 93,837,425) 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 2009 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 2008 and
2009 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 2008 is derived from the statutory accounts for 2008 which have
been delivered to the Registrar of Companies. The 2009 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 12
August 2009 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

3 July 2009

END