MARTIN CURRIE Global Portfolio Trust plc Registered in Scotland, no 192761

ANNUAL REPORT YEAR TO 31 JANUARY 2015

www.martincurrieglobal.com FINANCIAL HIGHLIGHTS

Total returns* Year ended 31 January 2015 Year ended 31 January 2014 Net asset value per share** 16.1% 8.1% Benchmark 17.3% 10.5% Share price 17.4% 9.8%

Income Year ended 31 January 2015 Year ended 31 January 2014 Revenue return per share*** 3.92p 3.76p

Dividend per share 4.10p 4.00p

Ongoing charges**** Year ended 31 January 2015 Year ended 31 January 2014

Ongoing charges 0.73% 0.75%

Performance fee ­— ­— Ongoing charges plus performance fee 0.73% 0.75%

* The combined effect of the rise and fall in the share price, net asset value or benchmark together with any dividend paid. ** The net asset value is exclusive of income with dividends reinvested. *** For details of calculation, refer to note 2 on page 33. **** Ongoing charges (as a percentage of shareholders’ funds) are calculated using average net assets over the year. The ongoing charges figure has been calculated with the AIC’s recommended methodology. ABOUT MARTIN CURRIE GLOBAL PORTFOLIO TRUST PLC CONTENTS

A global strategy for long-term growth Overview Martin Currie Global Portfolio Trust plc (‘the Company’) offers investors a core equity Chairman’s statement 2 portfolio. It invests in global equities for long-term growth and is well diversified across Manager’s review 4 around 60 individual holdings. Portfolio summary 6 Portfolio holdings 7 Managed discount Strategic report 9 Board of directors 12 The Company manages its discount to ensure that the Company’s share price trades Report of the directors 13 at, or around, net asset value (‘NAV’) in normal market conditions. Proven management team Governance Your Board has appointed Edinburgh based Martin Currie Investment Management Corporate governance statement 19 Limited (‘Martin Currie’ or the ‘investment manager’) to manage the portfolio. Tom Directors’ remuneration statement 22 Walker is a portfolio manager with over 25 years experience and is the Martin Currie Independent auditors’ report 24 director responsible for the Company, a role he has fulfilled since 2000. Tom is supported by Martin Currie’s regional and global sector research teams. Financial review Income statement 28 Balance sheet 29 Reconciliation of movements in Objective shareholders’ funds 30 Long-term capital growth in excess of the capital return of the FTSE World index Cash flow statement 31 Notes to the financial statements 32 Benchmark FTSE World index Investor information Directors and advisers 42 Capital structure Glossary 43 How to invest 45 103,063,375 ordinary shares of 5p, each entitled to one vote

Dividends paid January, April, July and October CHAIRMAN’S STATEMENT 2

Welcome to your annual report, covering the 12 months to 31 January 2015. It is a highly competitive environment with over 20 companies competing in our peer group, and I am pleased to report that your Company has enjoyed top quartile share price performance against the peer group over the year. This year Tom Walker marks his 15th anniversary as your manager. During this long tenure the Company has enjoyed a sustained period of good investment performance, and I look forward to this continuing. I believe that there are four core elements that help to set your Company apart: an actively managed global portfolio of the world’s leading large-cap companies; a consistently high dividend yield relative to the peer group; liquidity for shareholders to buy and sell without the risk of a material discount; and a focus on minimising costs. Performance Strong performance in most of the world’s major stockmarkets has provided good returns this year. The Company’s share price rose by 14.7% which exceeded the FTSE World benchmark return of 14.4% helped by the share price at the end of the year being at a small premium to the net asset value (NAV). If the effect of dividends is included, the share price total return for the Company was in line with the index at 17.4% and 17.3% respectively. The underlying return on the Company’s NAV per share of 16.1% was however, behind the benchmark. A performance fee is therefore not payable this year.

Income and dividendsefl This year Tom Walker During the year, interim dividends of 2.7p were paid in July, October and January and the Board has declared a fourth interim dividend of 1.4p which will be paid on 24 April 2015 marks his 15th to shareholders on the register at 10 April 2015. This will bring total dividend payments anniversary as your for the period to 4.1p per share, representing an increase of 2.5% on the previous year and maintains the Company’s position as having a relatively high dividend yield in the manager. During Association of Investment Companies’ (AIC) global sector. this long tenure the Liquidity Company has enjoyed The 'zero discount' policy represents a significant advantage, both for existing shareholders and in attracting new investors. It ensures that the Company’s shares can a sustained period always be sold at close to NAV in normal market conditions. Since its introduction, the discount has been virtually eliminated and shares have occasionally traded at a premium of good investment during the year. Share buybacks are an essential part of this strategy but I am pleased to performance, and I report that the majority of shares bought back were reissued during the year. The Board is committed to the policy and the benefits it offers. look forward to this Ongoing charges continuing. The Board set a target for ongoing charges for the year to be less than 0.75% which has been achieved and this steady trend of improving value for shareholders is expected to continue. The Company has delivered savings in the directors’ fees and other administration costs offset by a modest additional investment in improving our Neil Gaskell shareholder communications. Chairman, Martin Currie Global Portfolio Trust plc OVERVIEW OVERVIEW 3 Legg Mason is now an independently managed of Martin Currie. Martin Currie the purchase During the year Legg Mason (LM) completed Group. the flagship internationalinvestment affiliate of LM and becomes within the LM equity business Investment Management Update Investment Management Manager Company). Backed by his team of investment life of the as manager (almost the entire 15th anniversary Walker’s 2015 marks Tom of change, challenge and opportunity. an eventful period the Company well through stockpicking skills have served Tom’s professionals, the attacks of 9/11 that closed the end of the technology bubble, of events caused market turbulence including Since 2000, a number crisis that triggered the sub-prime mortgage and Bernie Madoff, by Enron a week, corporate fraud as exemplified US stockmarkets for to ongoing bank bail-outs, and experimental the world, ultimately leading markets around and rocked crunch in 2008 a global credit and India into world of China we have enjoyed the amazing growth easing. On the flip side of the coin, of quantitative programmes returns for stockmarkets. some positive periods of sustained markets opening up to investment and frontier financial powers, new in the market and with about 120% return of 195% compared for the last 15 years have seen a total their shares Those who have held on bank deposits. interest have been earned 40% which would from around in but also short-term risks, and having such an experienced manager as Tom long-term opportunities great Global investment offers of the Company. place is a distinctive strength is a comprehensive source of information and includes regular manager of information and includes regular source is a comprehensive website at www.martincurrieglobal.com The Company’s reports. updates and outlook videos, monthly performance factsheets and independent research your Company; contact details can be regarding I thank you for your continued support. Please contact me if you have any questions found at the back of this report. Updates and resources New tax year like qualify for tax efficient wrapper products shares you that the Company’s As the new tax year begins in April, I would like to remind can as well as many other investment wrappers that individual savings account (ISA) and self-invested personal pension (SIPP) products, be used, including those designed for children. The economic outlook for the year ahead will be shaped by the broadly positive impact of the lower crude oil prices as well as the positive impact of will be shaped by the broadly The economic outlook for the year ahead of the US economy is a continued strength of central banks to avoid deflation and stimulate their economies. The ongoing efforts will also undoubtedly be challenges, in Asia. There for growth the prospects as are particularly important element in this outlook among stocks from that the strategy of actively selecting the best growth believes or the Middle East, and the Board perhaps in Europe in the a sound basis for continuing the positive long-term performance of your investment larger companies provides the world’s Company. Outlook Alternative Investment Fund Managers Directive (AIFMD) Alternative Investment Fund of the investment fund industry last year aimed at improving oversight additional regulatory introduced Union directive This European Union. On 16 July 2014, the Company obtained approval for funds managed and/or marketed in the European investor protection is the most believes this structure as a small UK alternative fund manager (AIFM) under the AIFMD. The Board investment to register for the Company. and lowest-cost option of implementing this regulation appropriate Neil Gaskell 2015 30 March MANAGER’S REVIEW 4

Market review Returns from global equities over the last year have been excellent and this is especially the case for UK-based investors, for whom the benefit has been enhanced by the dollar’s strength against sterling. Our benchmark index, the FTSE World, delivered a total return of 17.3%, which, in the context of near-zero interest rates and considerable political and economic uncertainty, strikes me as very healthy. While many companies have enjoyed good earnings growth over the last year, stockmarket returns have generally outpaced earnings as investors have sought more attractive opportunities than the paltry interest rates on offer on bank deposits. By region, the USA provided the best returns of the major markets, up 24.6%; emerging market equities also performed well, up 15.3%, after a difficult few years. European market returns were the poorest, up 7.3%, though of course, there was a very large spread here: Greece fell 60%! Returns from equities have diverged widely depending on region and sector

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25 The world is faced 20 with some real political 15 32.3% 24.6% 10 crises… as such I will 17.3% 15.3% 5 concentrate on… 7.3% % 0 companies whose (2.8%) World USA Emerging Europe Healthcare (5) products or services ex UK Oil & Gas continue to find appeal (10) in uncertain times (15)

Source: FTSE GBP Total Returns for one year to 31 January 2015.

Tom Walker However, in the second half of the financial year, it was the collapse in the oil price that Manager, Martin Currie was the most significant influence on markets around the world: Brent crude fell 53% to Global Portfolio Trust plc US$53 per barrel. Hardly surprisingly, companies in the oil and gas sector saw significant share price declines as a result and that sector was the worst performing, falling 15% in the six months. Countries that rely heavily on oil exports, such as Russia, Norway and Brazil also suffered market declines and currency weakness. Consumers have enjoyed some benefit from lower energy costs and that may bolster consumption. In anticipation of that, consumer services was the strongest performing sector in the last six months. The US economy has continued to make modest progress but Japan and the eurozone have failed to break out of their slump. As a result, we have seen further measures of quantitative easing in Japan and Europe while the US Federal Reserve has been able to cease that policy, though not to increase interest rates yet. China’s economy has also slowed and there too, authorities have made attempts to bolster growth through monetary stimulus. Unquestionably, the strong performance of equity markets has been fuelled, not by growth, but by the sheer weight of money in circulation. OVERVIEW OVERVIEW 5 How to resolve the Ukraine crisis and reintegrate Russia while crisis and reintegrate the Ukraine How to resolve over Crimea. Russia maintains its sovereignty while in the eurozone to remain How to allow Greece in the union. maintaining any credibility terrorism. How to end religious he world is faced with some real political crises. Among them: some real he world is faced with Outlook T › › › it is at least well known and While this list is not comprehensive, both negative scope for is probably much discussed. As such, there Not helped byand positive surprise as these situations develop. the global economic outlook continues these issues, however, as in our vocabulary a reappeared to deteriorate. Deflation has of central banks to stimulate and the best efforts threat present in the US, the have thus far failed. Even economic recovery broad is important becauseeconomy is not yet out of the woods, which on that US recovery. reliant of the world is increasingly the rest that ‘the annual report All that said, I concluded in last year’s but could risevaluation of US equities… has risen considerably for global history would suggest’ (I use the US as a proxy higher, of late and therefore equities because they have performed best Those valuations have look most expensive on simple measures). do so. Markets are indeed risen higher and could continue to our political. However, vulnerable to shocks, be they economic or is that a wall rates or low interest experience in these times of zero any market setback. of money greets make value-added to it is hard That sounds complacent but, clearly, political outlook. As such, I will comment on the ‘big picture’ seeking out companies whose concentrate on the ‘small picture’, or services continue to find appeal in uncertain times and products price appears underrated. whose share Walker Tom 2015 30 March

portfolio activity 16.1% lagged that of the return of NAV The Company’s 12-month period by just over 1%. I reported benchmark over the half year stage so it was the environment outperformance at the the year that counted against performance,in the second half of in the oil price (which I did not foresee). including the collapse in the energy and stocks were Most of our worst-performing sectors. Concerns focused on the impact on dividend resources debt since the lower oil price haspayments and balance-sheet cash flows. an immediate detrimental impact on corporate A this with asset sales and number of companies have addressed the ignoring In my view, capital expenditure. cuts to projected and activity expenditure very short term, these announced cuts in prices the conditions for the next boom in energy creating are supply becomesin a few years time as demand picks up and offering are inadequate. As such, many stocks in the sector decent upside longer term. as well as ourLooking at performance in the year as a whole, stocks, Orixenergy investments, our two Japanese financial operational despite reasonable and Mitsubishi UFJ did poorly, allow should A healthier Japanese market environment results. rating. At the other end of the scale, these stocks an improved as High Street our holding in L Brands (known better in the and Bath & Bodyworks) was our top contributor, Secret Victoria’s in its home market of the US and increasingly strongly growing contributor – the iPhone Apple was our next best internationally. given the Perhaps unsurprisingly, 6 is its latest success story. nine of our top 10 contributors outperformance of that country, so it is worth highlighting the one that was US-based, were services multinationalnot. UK-based life insurance and financial UK and has enjoyedPrudential operates in Asia, America and the regions. in all three good growth I made a number of additions to the portfolio during the driven by stock specifics These investment decisions are year. significantly exposed to the US but many of the additions are TJX, cable company Comcast economy: for example retailer company Ashtead. In Japan, and UK-quoted equipment rental was added Komatsu, a construction equipment manufacturer, as we believe its earnings in this cycle, though have troughed may be drawn out. Our disposals during the year the recovery challenged by strong is being growth where included McDonald’s, competition; speciality chemicals and sustainable technologies after strong stretched valuation appeared firm Johnson Matthey’s Mitsui & Company was performance; and Japanese trading group sold to make way for Komatsu. not changed the shape of the portfolio has In summary, and transactions have Performance significantly over the year. including oil and gas, and we to resources, our exposure reduced have higher weightings in the industrial and consumer services we continue to focus the portfolio, importantly, sectors. More 60 companies that we believe can combine to investing in around generate long-term outperformance. Investment performance andInvestment performance PORTFOLIO SUMMARY 6

Portfolio distribution by region 31 January 2015 31 January 2015 31 January 2014 31 January 2014 Company FTSE World index Company FTSE World index North America 52.2% 56.4% 52.2% 53.8% Developed Europe ex UK 15.3% 16.0% 15.3% 17.1% United Kingdom 12.9% 7.6% 12.6% 8.6% Developed Asia Pacific ex Japan 9.3% 6.5% 9.5% 6.7% Japan 6.2% 8.5% 6.7% 8.8% Global Emerging Markets 2.5% 4.8% 2.0% 4.8% Middle East 1.6% 0.2% 1.7% 0.2% 100.0% 100.0% 100.0% 100.0%

By sector 31 January 2015 31 January 2015 31 January 2014 31 January 2014 Company FTSE World index Company FTSE World index Financials 21.7% 21.3% 22.3% 21.8% Industrials 17.6% 12.4% 14.0% 12.8% Consumer services 15.8% 11.2% 12.8% 10.7% Healthcare 9.4% 11.4% 10.4% 10.1% Technology 9.1% 10.8% 9.9% 10.0% Oil and gas 7.2% 7.2% 10.3% 8.5% Consumer goods 6.4% 13.6% 6.4% 13.2% Basic materials 5.7% 5.1% 8.1% 5.9% Telecommunications 4.7% 3.5% 3.8% 3.7% Utilities 2.4% 3.5% 2.0% 3.3% 100.0% 100.0% 100.0% 100.0%

By asset class (including cash and borrowings) 31 January 2015 31 January 2014 Equities 98.5% 99.7% Cash 1.5% 0.3% 100.0% 100.0%

Largest 10 holdings 31 January 2015 31 January 2015 31 January 2014 31 January 2014 Market value % of total Market value % of total £000 portfolio £000 portfolio JP Morgan Chase 6,883 3.8 6,279 3.8 Prudential 6,576 3.6 4,886 3.0 L Brands 6,451 3.5 2,554 1.6 Roche 6,411 3.5 4,236 2.6 Apple 6,003 3.3 4,484 2.7 United Technologies 5,666 3.1 5,042 3.1 Lockheed Martin 5,330 2.9 3,828 2.3 Verizon Communications 4,861 2.7 — — Schneider Electric 4,557 2.5 3,246 2.0 eBay 4,460 2.5 4,013 2.4 OVERVIEW OVERVIEW

3.8 3.5 3.3 3.1 2.9 2.7 2.5 2.4 2.3 2.0 2.0 1.9 1.8 1.8 1.8 1.6 1.5 1.5 1.5 1.4 1.3 1.2 1.2 1.2 1.0 1.0 3.5 2.5 1.9 1.6 1.4 1.3 1.1 0.9 0.6 0.5 15.3 52.2 7 portfolio % of total

£ 880,139 6,883,393 6,451,152 6,003,014 5,665,917 5,330,396 4,861,496 4,460,481 4,404,068 4,203,857 3,679,984 3,592,280 3,392,105 3,355,198 3,289,100 3,224,048 2,910,499 2,812,856 2,709,872 2,657,292 2,519,241 2,320,212 2,195,518 2,194,976 2,151,648 1,860,415 1,791,097 6,410,812 4,556,906 3,429,169 2,862,735 2,560,754 2,443,885 1,972,596 1,678,825 1,053,503 27,849,324 94,920,115 Market value Country Switzerland France France Germany France Belgium France Norway Italy Norway

Sector Healthcare Financials Consumer services Technology Industrials Industrials Telecommunications Consumer services Utilities Basic materials Consumer services Financials Consumer goods Consumer services Healthcare Healthcare Technology Consumer services Consumer services Industrials Financials Healthcare Financials Oil and gas Technology Healthcare Basic materials Industrials Industrials Consumer services Oil and gas Consumer goods Financials Financials Oil and gas Oil and gas

Developed Europe ex UK Developed Europe PORTFOLIO HOLDINGS North America Roche JP Morgan Chase L Brands Apple United Technologies Lockheed Martin Communications Verizon eBay Sempra Energy Industries LyondellBasell CVS Health American International Group Phillip Morris International TJX Companies AbbVie Pfizer Microsoft Comcast Century Fox Twenty-First Pentair Bank of Montreal Cooper Companies PNC Financial Chevron Solutions Cognizant Technology Anthem Praxair Schneider Electric Safran ProSiebenSat.1 Media ProSiebenSat.1 Total Anheuser-Busch Inbev Anheuser-Busch SCOR DNB ENI Seadrill PORTFOLIO HOLDINGS 8

Market value % of total Sector Country £ portfolio

United Kingdom 23,444,133 12.9 Prudential Financials 6,575,936 3.6 HSBC Holdings Financials 3,860,341 2.1 BG Group Oil and gas 3,654,879 2.0 Ashtead Group Industrials 3,004,360 1.7 Rio Tinto Basic materials 2,281,646 1.3 BHP Billiton Basic materials 2,057,285 1.1 Royal Dutch Shell Oil and gas 1,229,028 0.7 Candover Investments Private equity 780,658 0.4

Developed Asia Pacific ex Japan 16,906,057 9.3 M1 Telecommunications Singapore 3,592,743 2.0 Jardine Matheson Holdings Industrials Singapore 3,224,538 1.8 Woolworths Consumer services Australia 2,225,764 1.2 China Construction Bank Financials Hong Kong 2,215,102 1.2 China Merchants Holdings Industrials Hong Kong 2,154,866 1.2 United Overseas Bank Financials Singapore 2,007,497 1.1 CNOOC Oil and gas Hong Kong 1,485,547 0.8

Japan 11,235,215 6.2 Toyota Consumer goods 3,708,897 2.0 Mitsubishi UFJ Financial Group Financials 3,444,798 1.9 Orix Financials 2,284,203 1.3 Komatsu Industrials 1,797,317 1.0

Global Emerging Markets 4,551,145 2.5 Taiwan Semiconductor Manufacturing Technology Taiwan 2,492,126 1.4 Company PT Astra International Consumer goods Indonesia 2,059,019 1.1

Middle East 2,892,407 1.6 Check Point Software Technologies Technology Israel 2,892,407 1.6

Total portfolio holdings 181,798,396 100.0 OVERVIEW OVERVIEW 9

Grow the number of shares in issue and thereby improve the efficiency of the Company while increasing liquidity; and of the Company while increasing the efficiency improve in issue and thereby the number of shares Grow communication with shareholders. and regular transparent Deliver clear, Deepen demand for the Company’s shares by meeting or exceeding expectations of existing shareholders and winning new by meeting or exceeding expectations of existing shareholders shares Deepen demand for the Company’s shareholders;

Business model portfolio of the investment of its funds in a diversified through to deliver a competitive return to its shareholders The Company seeks by the approved index, the policy in excess of the FTSE World growth objective of delivering long-term capital assets with the primary the investment portfolio, investment manager to manage appoints and oversees an independent The Board shareholders. Company’s with tax, legal and compliance ensures liabilities of the Company, policies to manage the assets and financial decides the appropriate envisage do not performance. The directors on the investment manager’s to shareholders regularly and reports requirements regulatory future. in the foreseeable any change in this model . trusts please visit www.theaic.co.uk information on investment For more Financial of capital; the use of gearing; and the management of the risks to asset and liabilities The main focus is: the management of shareholder the Company. both the manager’s should reflect Growth capital is long-term growth. principal goal for the management of shareholder The Board’s demand exists to do this without diluting the value of existing when sufficient investment performance and the issuance of shares committed to a progressive remains also expects to pay dividends each year and the board the board capital. However, shareholder launch in dividends each year since the Company’s in maintained or increased dividend policy over the longer term. This has resulted 1999. that larger and price does not fall materially below the NAV that the share discount’ policy which ensures The Company operates a ‘zero back as part of this policy are bought price discount. Shares the share as they wish without increasing investors can sell as many shares when demand exists which the market cannot supply. and reissued held in treasury › › to performance, outlook and significant website which contains information relating the Company’s This is achieved primarily through mail, public the Company utilises best practice marketing tools such as advertising, direct In addition, developments as they occur. with existing and potential institutional shareholders. also meets regularly Walker, Tom The manager, and research. relations The marketing strategy seeks to: › Marketing Risk management the investment policy guidelines set by the Board. with investment risk in accordance Risk management is largely focused on managing reviews, the portfolio will be managed. The Board has established risk parameters with the investment manager within which The Board but not excessive risk being is sufficient there by the manager to ensure risk metrics presented meeting, the relevant at each board taken within the portfolio. and competitive regulated in an increasingly mainly to the challenges of managing the Company The wider corporate risks relate has put in place and which are which the Board each actively managed using the mitigation measures market place. These risks are discussed on pages 10 and 11 of this report. Investment market leaders in their industries and have are large capitalisation blue chip equities; companies which The Company invests in predominantly diversified portfolio of international potential due to earnings, resulting price appreciation assets or valuation anomalies. The superior share analysis. selected on the basis of detailed research 60 high conviction stocks only around quoted companies is active and focused, containing portfolio both outperforms and also underperforms inevitably involve periods when the Company’s This active portfolio management policy will index). FTSE World benchmark, which is the reference by the Company’s the market as a whole (as represented overweight its than 5% except that: no stock may be more to select stocks, discretion does not impose any limits on the manager’s The Board than its or less in a sector must not be 15% more be limited to 25% of total assets; and holdings index weighting; emerging markets exposure portfoliothe in stocks conviction high the by dominated is risk investment that ensures manager the this, Beyond index. benchmark the of share factor (for example, a higher oil macroeconomic on a particular not lead to unintended reliance and that the combination of stocks held does rates). price or lower interest contained in the portfolio on pages 4 and 5 and details are review in the manager’s discussed asset allocation and actual holdings are Current 6, 7 and 8. summary and portfolio holdings on pages Strategy principal strategies are: The Board’s STRATEGIC REPORT STRATEGIC STRATEGIC REPORT 10

Finance (continued) The Company is not currently geared based on the manager’s view of the outlook for the market. The Board carefully considers the Company’s gearing on a regular basis and the manager advises the Board to employ gearing when he has high conviction that the market could rise significantly. The current parameters state that borrowing must not exceed 20% of net assets. If the Board were to decide that the conditions had been met to employ gearing, the Company would need to appoint an external Alternative Investment Fund Manager (‘AIFM’) under the new European AIFM Directive. Please refer to page 15 for further details. The Company does not currently use derivatives for the purpose of mitigating investment risk, although the manager may hedge an excessive concentration of currency risk into sterling should this situation arise. The Board manages risk to both assets and liabilities through its oversight of the investment manager’s risk management systems and its active monitoring of both costs and the risks inherent in financial liabilities. The Board is committed to its policy of keeping shareholders regularly informed about the Company’s performance and, in particular, giving an objective and transparent report on the underlying investment performance of the manager. The formal interim and annual financial statements provide a comprehensive review of the overall position, compliant with best practice as recommended by the Financial Reporting Council.

Principal risks and uncertainties Risk and mitigation The Company’s business model is longstanding and resilient to most of the short term uncertainties that it faces, which the Board believes are effectively mitigated by its internal controls and its oversight of the investment manager, as described in the table below. Its principal risks and uncertainties are therefore largely longer term and driven by the inherent uncertainties of investing in global equity markets. The Board believes that it is able to respond to these longer term risks and uncertainties with effective mitigation so that both the potential impact and the likelihood of these seriously affecting shareholders’ interests are materially reduced. Risks are regularly monitored at board meetings and the Board’s planned mitigation measures are described in the table below. As part of its annual strategy meeting, the Board carried out a robust assessment of the principal risks facing the Company. The Board has identified the following principal risks to the Company:

Risk Mitigation Loss of S1158-9 tax Loss of S1158-9 tax status would have serious consequences for the attractiveness of the Company’s shares. status The Board considers that, given the regular oversight of this risk the likelihood of this risk occurring is minimal. Long-term The Board monitors the implementation and results of the investment process with the manager, who investment attends all board meetings and reviews data that show statistical measures of the Company’s risk profile. underperformance Were long-term investment underperformance to emerge despite the mitigation measures taken by the investment manager, the Board would be able to take appropriate action to manage this risk. Decline in overall The Board recognises that the 'zero discount' policy allows shareholders to sell their stock in any volume at size of the close to NAV. Although this improved liquidity encourages investment in the Company, it could also increase Company the risk of a significant decline in the size of the Company. The Company has a clear marketing strategy which is set by the Board and delivered by a well-resourced marketing function within the investment manager. The Board also regularly monitors key indicators for any change in the Company’s reputational risk profile. Failure to manage The Board recognises the importance of managing shareholder relations. The Board regularly monitors the list shareholder of major shareholders and the shareholder profile. relations The directors meet, from time to time, with major shareholders and the investment manager maintains regular contact with the Company’s institutional shareholders. The Company aims to provide all shareholders with a full understanding of the Company’s activities and performance by way of the annual and half-yearly reports. The Company’s website, which is independent of the investment manangers website, provides all shareholders with relevant information about the Company including its daily net asset value and monthly updates. In addition to this all shareholders have the opportunity, and are encouraged, to attend the Company’s annual general meeting ('AGM') and to give their views to the Company using the email address noted on the back page of this annual report. OVERVIEW OVERVIEW    11 Achieved (7.7%) 0.73% Actual out of 24 th 10 Target Target Outperform Less than 0.75% Top third performance third Top Description and mitigation Description and mitigation by the investment manager and the policy in July 2013 which is operated discount' adopted a 'zero The Board of the impact on the reputation could be a serious There clearly set out by the Board. using parameters broker, this will not happen in normal believes that not followed, but the Board were Company if the parameters market conditions. basis, investment manager on a regular and continued appointment of the the performance reviews The Board engagement committee. via the management appointment of Martin Currie was of the investment manager and, if the continued is independent The Board be appointed. a new investment manager would of shareholders, not in the best interest considers the meeting. The Board at every board by the Board The liquidity of the Company is monitored loss of index it to happen the resulting to be very low but were likelihood of failing the index liquidity test assets. the Company’s investors would reduce Net asset value performance relative to the benchmark Net asset value performance relative peers Performance against the Company’s Ongoing charges Risk Discount management policy The investment manager ceases to manage effectively investment trusts or its reputation fails Index liquidity test 2. Performance against Company’s peers 2. Performance against Company’s 1. Net asset value performance relative to benchmark 1. Net asset value performance relative Summary of KPIs 3. Ongoing charges Following the ongoing assessment of the principal risks facing the Company, and its current position, the Board is confident that position, the Board its current and principal risks facing the Company, Following the ongoing assessment of the of internal believes that the processes and meet its liabilities as they fall due. The Board Company will be able to continue in operation to be effective. that the Company has adopted and oversight by the investment manager continue control The Board assesses the net asset return compared to the total return of the FTSE World Index. It is measured on a financial year basis Index. It is measured of the FTSE World total return to the compared assesses the net asset return The Board year period. three and assessed over a rolling years to 31 January return The net asset value total for the Company for the three This KPI was not achieved for this financial year. years, the Index over the same period. Over the last three to a total return of 49.4% for the FTSE World 2015 was 41.7% compared of emerging markets while areas stocks and certain commodity reliant downturn weakness in resource in the commodity cycle caused performance lagged the benchmark partly due The Company’s sector. the US market and the healthcare performance were very strong selection in the consumer and Stock like the USA and healthcare. sectors and underweight in areas to being overweight in the resource in the basic materials, industrial and utilities sectors. oil and gas sectors was also a negative which outweighed positive stock selection statement on pages 2 and 3 and to the benchmark see the chairman’s information on the one year performance relative For more on pages 4 and 5. review manager’s 2. to a range of 14 competitor funds within the AIC Global sector and 9 price total performance relative monitors the share The Board The Company ranked 10th, with a year period. This KPI was not achieved for this financial year. three open-ended funds over a rolling years to 31 January 2015. for the Company of 51.8% over the three price total return share 3. it meets its target by maintaining cost discipline and focus on basis to ensure monitors ongoing charges ('OGC') on a regular The Board 0.75% for from 0.73%, a reduction 2015 were value adding activities. This KPI was achieved, the OGC for the year ended 31 January of reducing expects to continue a steady trend board the year end 31 January 2014 and 0.84% for the year end 31 January 2013. The the OGC. 1 Key Performance Indicators and Performance in achieving the Company’s uses certain key performance indicators (‘KPIs’) to monitor and assess its performance The Board objectives. BOARD OF DIRECTORS 12

Top: David Kidd, Tom Walker (manager), Mike Balfour. Bottom: Gillian Watson, Neil Gaskell (chairman), Victoria Timlin (Martin Currie Investment Management Limited – company secretary),

Neil Gaskell, Non-executive director Gillian Watson, Non-executive director Chairman Gillian is currently senior managing director at ES Noble & Company Limited, the Edinburgh based boutique investment bank. She is also a Neil was appointed as a non-executive director of the Company on director of Meallmore Limited and a non-executive director of Scottish 24 November 2011 and became chairman on 22 May 2012. Before Enterprise and The Royal Edinburgh Military Tattoo Limited. Gillian has this, he worked for 35 years with Shell and retired as group treasurer worked in corporate finance, strategy and business development across of the Royal Dutch Shell Group and director of Shell International. various industry sectors and, until March 2013, was chief executive Neil is currently chairman of Aberdeen Japan Investment Trust. He officer of Giltech Limited. Gillian sits on the Scottish Enterprise West was previously a non-executive director of Wellstream Group and Regional Advisory Board, The University of Strathclyde’s Commercial Integra Group and is former chairman of Hydrodec Group. Neil is and Innovation Advisory Board and is a Trustee of the Boswell Trust. also a governor of the London School of Economics. Gillian was appointed to the Board on 1 April 2013. Mike Balfour, Non-executive director Chairman of the audit committee Mike is a member of the Institute of Chartered Accountants of Scotland and chief executive at Thomas Miller Investment Ltd. Prior to this, Mike was chief executive at Glasgow Investment Managers and chief investment officer at Edinburgh Fund Managers Limited. Mike brings 29 years of investment management experience to the Board, as well as knowledge of the investment trust industry. Mike was appointed to the Board on 28 January 2010. David Kidd, Non-executive director Senior independent director David is a director of The Law Debenture Pension Trust Corporation P.L.C, which acts as independent trustee for over 200 pension schemes including many FTSE-100 companies. He has over 30 years’ investment management experience, having been chief investment officer of the Royal Bank of Scotland’s investment management arm, the charity specialists Chiswell Associates and the private bank Arbuthnot Latham. He is a non-executive director of The Salvation Army International Trustee Company and of Shires Income plc, and a trustee of the Golden Charter Trust. David was appointed to the Board on 1 October 2005. OVERVIEW OVERVIEW 13 If the cumulative performance over the relevant period is over the relevant If the cumulative performance 1% then no performance fee is less than or equal to payable. period is If the cumulative performance over the relevant than 1%, a performance fee is payable. If the greater relevant has risen over the final year of the NAV Company’s performance over period, this fee is 15% of the cumulative has fallen. NAV that year and 7.5% if the Company’s is 1% of The maximum performance fee that is payable period. as at the last day of the relevant NAV Company’s Performance fee is also entitled to a performance fee The investment manager be met and the key terms and related should certain criteria of the performance fee are definitions of the calculation summarised below. › › › Definitions: February the 1 period is from Relevant period: the relevant a performance fee was following the last financial year in which relevant The financial year. paid, to the end of the current is 1 February 2012 to period for the year end 31 January 2015 NAV is the ex-income NAV 31 January 2015. The Company’s any accrual for performance fee and adjusted for the before buybacks. For the year end 31 January 2015 the impact of share period is over the relevant NAV performance of the Company’s 31.3%. Index. For the year benchmark is the FTSE World The Company’s of the benchmark end 31 January 2015 the capital performance period was 38.0%. over the relevant change of the Cumulative performance is the percentage change in the less the percentage per share NAV Company’s benchmark. For the year capital performance of the Company’s end 31 January 2015 the cumulative performance for the is no performance fee period is (6.7%) therefore relevant payable for the year end 31 January 2015 (2014: £nil).

In the event that the Company terminates the agreement the agreement In the event that the Company terminates is entitled to otherwise than set out above, Martin Currie compensation equivalent to four times the basic receive quarterly management fee payable. Six month notice period. to be capable Immediate termination if Martin Currie ceases of carrying on investment business.

Investment management fee Martin Currie is paid an investment management fee of 0.5% of Martin of the Company per annum, calculated quarterly. the NAV and administration services to the secretarial Currie also provides fee for the year ended Company; the annual secretarial 31 January 2015 was £50,654 (2014: £50,000). › › › Main features of the contractual arrangement with Main features of the contractual the investment manager Continued appointment of the investment manager Continued appointment of the investment conducts an annual performance appraisal of the The Board criteria, including investment manager against a number of and investment performance operational performance, results the recent and other contractual considerations. Following engagement appraisal carried out by the management considers it is in the committee on 27 January 2015, the Board appointment to continue with the of shareholders best interests based on the expected of Martin Currie as investment manager Legg Mason and its benefits of its acquisition in June 2014 by term. good investment performance over the longer The investment manager The investment manager Martin Currie is an internationalin equity specialist based money for a wide range of global clients. Edinburgh, managing focused on selecting stocks through is Its investment process constructing well- and research fundamental proprietary closely monitors portfolios. The Board balanced high conviction attends the manager, Walker, and Tom investment performance a detailed update to the Board. meeting to present each board to challenge the manager on uses this opportunity The Board management. any aspect of the portfolio’s Business review REPORT DIRECTORS THE OF review business Incorporating REPORT OF THE DIRECTORS 14 Incorporating business review

Further contractual arrangements The Company has outsourced its operational infrastructure to third party organisations. Contracts and service level agreements have been defined to ensure that the service provided by each of the third party organisations is of a sufficiently professional and technically high standard. The Board actively monitors performance against these criteria. Counterparty risk on each service provider is analysed with the Board monitoring any identified risks. Further details of the Company’s service providers can be found in the investor information section on page 42. Performance and outlook of the Company Please refer to the chairman’s statement on pages 2 and 3 and the manager’s review on pages 4 and 5 for an update on the performance of the Company over the year and outlook for 2015. Board diversity The nominations committee considers diversity, including the balance of skills, knowledge, gender and experience, amongst other factors when reviewing the composition of the Board. It does not consider that it is appropriate to establish targets or quotas in this regard. The Board comprises four non-executive directors of whom one is a woman, thereby constituting 25% female representation. The Company has no employees as its investments are managed by Martin Currie, the appointed investment manager. Environmental matters and social/community issues As an externally managed investment company with no employees, the Company has no policies in place in relation to environmental, social or community issues. The Company’s greenhouse gas emissions are negligible. Statement regarding annual report and accounts Following a detailed review of the financial statements by the audit committee, the directors consider that taken as a whole they are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company’s performance, business model and strategy. OVERVIEW OVERVIEW 15 Trends likely to affect future to affect likely Trends performance Voting policy and the UK Stewardship Code policy and the UK Stewardship Voting for voting at investee The Company has delegated responsibility meetings to Martin Currie, who votes in company shareholder with its corporate governance and responsible accordance gives that Martin Currie aware are The directors investing policy. consideration to operational performance, corporate social and corporate governanceresponsibility issues, among other has made. The Board factors when investment decisions are Code and adoption of the UK Stewardship noted Martin Currie’s can be found at a copy of the policies and voting records . www.martincurrie.com/home/about_us/our_policies Please refer to the chairman’s statement on pages 2 and 3 and statement on pages 2 and 3 to the chairman’s Please refer the on pages 4 to 5 for information on review the manager’s of the Company. performance the future likely to affect trends Regulatory The European AIFM Directive works closely with its advisers and the AIC as The Board changes. of any regulatory it is aware to ensure appropriate as a small approval On 16 July 2014, the Company obtained believes this is the most UK AIFM, The Board registered for the and lowest cost level of this regulation appropriate Company. the that it is in determine in the future Should the Board it would be some borrowing, to introduce interest Company’s to appoint an external depositary necessary under the regulations by the Financial Conduct and AIFM who would also be supervised be implemented is confident that this could The Board Authority. the investment without adversely affecting as and when required, management of the portfolio. 2014 7.8% 0.0% 2.5% 16.6% 80.9% capital 100.0% % of equity

% of 0.3% 2.0% 2015 7.9% 22.6% 75.1% 100.0% shareholders DC Thomson & Company Limited Shareholders analysis as at 31 January 2015 Banks & nominee companies Insurance & investment companies Other holders Individuals & trustees As at 31 January Voting rights Voting ordinary in its of the following interest The Company is aware capital. share The Company repurchased 2,956,941 shares to be held in treasury at to be held in treasury shares 2,956,941 The Company repurchased 2.8% of the This represented during the year. a cost of £4,964,000 a nominal value of £147,847 During capital and had called up share at a treasury from 1,727,145 shares reissued the Company the year, As at 31 January 2015 the issued sharetotal value of £3,098,000. (excluding shares shares capital of the Company was 103,063,375 2014 was capital as at 31 January The issued share held in treasury). held in treasury). 104,293,171 (excluding shares Share capital The directors present their report and the audited financial statements of the the audited financial present their report and The directors 2015. the year ended 31 January Company for The net revenue return for the year after expenses, interest for the year after expenses, interest return The net revenue and taxation was £4,030,000 (2014: £3,910,000), equivalent (2014: 3.8 pence). Interim to a return of 3.92 pence per share The dividends totalling 2.7 pence have been paid during the year. a fourth interim dividend of 1.4 pence per recommend directors at be payable on 24 April 2015 to holders on the register share the close of business on 3 April 2015, making a total for the year as at 31 reserves of 4.1 pence (2014: 4.0 pence). The revenue £5,619,000 and £186,000 of this will be used January 2015 are to fund the fourth interim dividend. Revenue and dividends Corporate governance statement corporate governance statement is set out on The Company’s of the directors. pages 19 to 21 and forms part of this report With fees the exception of the management and secretarial fees (disclosed on page 23) and (disclosed on page 16), directors’ no were (disclosed on page 22) there shareholdings directors’ the financial year. party transactions through related Related party transactions REPORT OF THE DIRECTORS 16 Incorporating business review

Statement of directors’ Role of the Board responsibilities Investment companies have a board of directors whose duty it is to govern the Company to secure the best possible return for The directors are responsible for preparing the annual report, shareholders within the framework set out in the Company’s the directors’ remuneration report and the financial statements Articles of Association – in other words, to look after the in accordance with applicable law and regulations. interests of shareholders. Company law requires the directors to prepare financial Your Board of four experienced independent non-executive statements for each financial year. Under that law the directors directors now meets five times a year on a formal basis and on have prepared the financial statements in accordance with an ad-hoc basis when required, to consider the Company’s United Kingdom Generally Accepted Accounting Practice strategy and monitor the Company’s performance. The directors (United Kingdom Accounting Standards and applicable law). are directly answerable to shareholders. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair The Board formally evaluates its investment manager every year, view of the state of affairs of the Company and of the profit or reporting to shareholders why it is appropriate for the loss of the Company for that period. In preparing these financial investment manager to continue. statements, the directors are required to: Your Board takes this responsibility extremely seriously. › select suitable accounting policies and then apply them Your Board also serves shareholders by ensuring that the consistently; interests of the investment manager are aligned as closely as › make judgements and accounting estimates that are possible with those of shareholders. reasonable and prudent; An investment trust board provides a very specific and proactive › state whether applicable UK Accounting Standards have form of direct oversight of the investment of the shareholders’ been followed, subject to any material departures disclosed funds. and explained in the financial statements respectively; and › prepare the financial statements on the going concern basis Directors unless it is inappropriate to presume that the Company will As set out in the Board of directors on page 12, each of Neil continue in business. Gaskell, Mike Balfour, David Kidd and Gillian Watson is a director of the Company. Gill Nott was also a director of the The directors are responsible for keeping adequate accounting Company during the reporting period but retired on 18 June records that are sufficient to show and explain the Company’s 2014. transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to The financial statements are published on the Company’s ensure that the financial statements and the directors’ website (www.martincurrieglobal.com) which is maintained remuneration report comply with the Companies Act 2006. by the investment manager. The directors are responsible for the They are also responsible for safeguarding the assets of the maintenance and integrity of the Company’s website. Company and hence for taking reasonable steps for the Legislation in the United Kingdom governing the preparation prevention and detection of fraud and other irregularities. and dissemination of financial statements may differ from legislation in other jurisdictions. Each of the directors, whose names and functions are listed in the Board of directors on page 12 confirm that, to the best of their knowledge: › the financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), give a true and fair view of the assets, liabilities, financial position and profit of the Company; and › the report of the directors and manager’s review include a fair, balanced and understandable 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. OVERVIEW OVERVIEW 17 so far as each of the directors is aware, there is no relevant there is aware, so far as each of the directors auditors are audit information of which the Company’s and unaware; has taken all the steps that they ought toeach of the directors of to make themselves aware in order have taken as a director audit information and to establish that theany relevant of that information. aware auditors are Company’s › › Effectiveness of the external audit process of the external audit Effectiveness of the externalThe audit committee evaluated the effectiveness auditor and the external prior to making a audit it undertook of PwC at the forthcoming on the re-appointment recommendation ofAGM. This evaluation involved an assessment of the effectiveness performance against criteria including qualification, the auditor’s of the independence and effectiveness expertise and resources, the performance of the external Having reviewed audit process. itauditor as described above, the audit committee considered of PwC as external the re-appointment to recommend appropriate and a in office its willingness to remain PwC has expressed auditor. it as auditor to the Company and to to re-appointment resolution payable will to determine the remuneration authorise the directors at the forthcoming AGM. be proposed Disclosure of information to the auditors of the directors In the case of each of the persons who are was approved: Company at the time when this report Action service party by third valued using stock exchange prices provided Actively traded listed investments are which is report, annual internal control manager’s the investment The audit committee reviewed providers. and controls on by independent external and which details the systems, processes reported accountants securities, including the application of exchange rate the daily pricing of equity and fixed interest around movements. split of returns by the audit committee annually taking into account the long-term from The allocation is reviewed historical and prospective the objectives of the Company and current, the portfolio, both historic and projected; yields. to as referred year, for the internal reports control the investment manager’s The audit committee reviewed of investment income. the recording around and controls above, which details the systems, processes The investment administration function is outsourced by Martin Currie to State Street Bank and Trust Company Bank and Trust by Martin Currie to State Street The investment administration function is outsourced carried having The directors, by the Company to State Street. also outsourced Custodial services are (‘State Street’). are satisfied that State Street are and subsequently with State Street out due diligence at the time of appointment Martin Currie on the from reports regular The audit committee receive providers. acceptable outsource and internal which Martin Currie controls procedures processes, of these arrangements, State Street’s effectiveness internal as part of controls State Streets and checked. The external auditors also review have themselves reviewed be found on pages Further details can satisfactory. to the audit committee that these were their audit and reported 24 to 27. Matter Accuracy of portfolio valuation Allocation of expenses between revenue and capital Revenue recognition Strength of processes and internal controls at outsourced providers A competitive tender for the audit of the Company was last held in auditors, PwC were October 2010, following which the current every audit engagement partner will rotate selected. The Company’s senior statutory the current policy, five years. Under the rotation asauditor has been engaged for the fifth year and will be replaced senior statutory auditor The incoming the senior statutory auditor. has shadowed the incumbent during the 2015 audit process. The Company has been advised that, following Legg Mason’s of Martin Currie, PwC will become the auditor of Martinpurchase not to have the same auditorsCurrie. The Audit Committee prefers will seek to as those of the management company and therefore the end of 2015. appoint a new audit firm before Auditors’ rotation The Company has in place a policy governing the and controlling of non-audit services by the externalprovision auditors, so as to This is achieved by their independence and objectivity. safeguard independence may be non-audit work where prohibiting or conflicts arise. Any non-audit work other than taxcompromised each of the audit committee in specific approval advice requires case. The audit fees amounted to £22,340 for the year ended 31 January 2015 (2014: £22,100). Non-audit fees amounted to £nil for the year ended 31 January 2015 (2014: £nil). the audit committee concludes that the Following review, independent. auditors, PwC, remain Company’s Auditors’ independence Audit committee report Audit committee Gaskell. Neil except the chairman of the Board, the directors by Mike Balfour and comprises all of is chaired The audit committee the externalauditors’ plan for and approved considered the year, of the audit and, during the scope and results reviews The audit committee committee is on page 20. of the 2015. A full list of the responsibilities statements for the year ended 31 January the audit of the financial committee which would cause it to did not highlight any issues to the audit audit, PricewaterhouseCoopers LLP (PwC) At the conclusion of the which is audit report weaknesses. PwC issued an unqualified it highlight any fundamental internal nor did control qualify its audit report to 27.included on pages 24 likely to impact the Company’s and risks, both operational and financial, takes account of the most significant issues The audit committee to the financial statements: audit committee in relation by the considered following significant issues were financial statements. The REPORT OF THE DIRECTORS 18 Incorporating investment policy and business review

Going concern status Disapplication of statutory pre-emption rights The Company’s business activities, together with the factors likely to Resolution 9 proposed as a special resolution would, if passed, affect its future development, performance and position are set out give the directors authority under s571 and s573 of the in the chairman’s statement, manager’s review, strategic report and Companies Act 2006, to allot shares for cash in certain the report of the directors. circumstances as if s561 of the Companies Act 2006 did not apply. (s561 requires, when shares are to be allotted for cash, The financial position of the Company as at 31 January 2015 is such new shares first be offered to existing shareholders in shown on the balance sheet on page 29. The cash flows of the proportion to their existing holdings of shares). This authority Company are set out on page 31. would enable the directors to issue shares for cash to take Note 15 on pages 38 to 40 sets out the Company’s risk advantage of changes in market conditions that may arise in management policies, including those covering market risk, liquidity order to increase the amount of the Company’s issued share risk and credit risk. capital. The purpose of such an increase would be to improve the liquidity of the market in the Company’s shares and to spread the In accordance with the Financial Reporting Council’s guidance on fixed cost of administering the Company over a wider base. The going concern and liquidity risk issued in October 2009, the directors directors believe that this would increase the investment have undertaken a rigorous review of the Company’s ability to attractions of the Company to the benefit of existing continue as a going concern. The Company’s assets consist of a shareholders. diverse portfolio of listed equity shares which, in most circumstances, are realisable within a very short timescale. The directors are The resolution, if passed, will give the directors power to allot for mindful of the principal risks and uncertainties disclosed on pages cash equity securities of the Company up to a maximum of 10 and 11 and have reviewed revenue forecasts and they believe £512,397 (being an amount equal to 10% of the issued share that the Company has adequate financial resources to continue capital of the Company as at 25 March 2015, the latest its operational existence for the foreseeable future and for at least practicable date before printing) without the application of pre- one year from the date of signing of these financial statements. emption rights described above. The authority contained in Accordingly, the directors continue to adopt the going concern basis Resolution 9 will continue until the AGM of the Company in in preparing these financial statements. 2016. Re-issue of treasury shares Resolution 10, proposed as a special resolution, would give the Annual general meeting directors authority to re-issue shares from treasury within the The annual general meeting (‘AGM’) of the Company will be following parameters: held at Saltire Court, 20 Castle Terrace, Edinburgh, EH1 2ES at › any discount level at which such equity securities may be 12.30pm on 11 June 2015. sold or transferred out of treasury is always less than the Special resolutions average discount at which the equity securities held in treasury were purchased; Purchase of own shares and treasury shares Each year the directors seek authority from shareholders to › a cap will be set on the dilutive impact of reissuing out of purchase the Company’s own shares. The directors recommend treasury at a maximum of 0.2% per year; and that shareholders renew this authority detailed in resolution 8. › shares will be held in treasury for a maximum period of 12 Any shares purchased pursuant to the authority will be held in months, after which they will be cancelled. treasury or cancelled. The authority would lapse at the earlier of the Company’s next AGM or 15 months after the date of the The Board intends to use share issuance powers in the same resolution. way that buyback powers are used to enhance shareholder value and improve the liquidity of our shares. The purpose of holding shares in treasury is to allow the Company to reissue those shares quickly and cost effectively in Recommendation accordance with the parameters set out in resolution 10. The directors believe all the resolutions proposed are in the best interests of the Company and shareholders as a whole and recommend all shareholders to vote in favour of all the resolutions. The results of the votes on the resolutions at the AGM will be published on the Company’s website (www.martincurrieglobal.com).

Neil Gaskell Chairman 30 March 2015 OVERVIEW GOVERNANCE 19 The principles of the AIC code The principles of has up of 21 principles and the Company The AIC code is made principles with the exception of principle complied with all such Details of the AIC principles and 11 which is not applicable. with them can be found on the how the Company complies . website at www.martincurrieglobal.com Company’s For the reasons set out in the AIC guide and as explained in the set out in the For the reasons considers these UK Corporate Governance Code, the Board being position of the Company, to the not relevant provisions has The Company an externally investment company. managed of these provisions. further in respect not reported therefore

he role of the chief executive; the role and remuneration; executive directors’ the need for an internal audit function.

CORPORATE GOVERNANCE STATEMENT STATEMENT GOVERNANCE CORPORATE › › › Compliance the principles and has considered of the Company The Board AIC Code of Corporate Governance of the recommendations Corporate Governance to the AIC Guide (AIC code) by reference (AIC guide). The AIC code, as for investment companies all the principles set out guide, addresses explained by the AIC Governancein the UK Corporate out Code, as well as setting of on issues that are and recommendations additional principles Company. to the specific relevance against the principles and reporting considers that The Board to the AIC AIC code and by reference of the recommendations Governanceguide (which incorporates the UK Corporate Code), better information to shareholders. will provide of recommendations The Company has complied with all of the provisions relevant the AIC code and, except as set out below, of the UK Corporate Governance Code: CORPORATE GOVERNANCE STATEMENT 20

Board committees Marketing and communications committee The marketing and communications committee's responsibilities Management engagement committee include: The management engagement committee’s responsibilities include: › considering the marketing strategy for the Company; › reviewing the Company's communications with its › reviewing the continuing appointment of the investment shareholders; manager; › reviewing the Company's marketing budget; and › reviewing the performance of the investment manager in › reviewing the design and contents of the Company's terms of investment performance and the company financial statements. secretarial and administration services provided; › reviewing the performance of the personnel employed by The marketing and communications committee met twice the investment manager in relation to the provision of such during the year. services; and Composition – all directors and chaired by Gillian Watson. › reviewing the terms of the investment management agreement, to ensure that it remains competitive and in the Audit committee best interests of shareholders. The audit committee's responsibilities include: The committee met once during the year. › monitoring and reviewing the integrity of financial statements; Composition – all directors and chaired by Neil Gaskell. › internal financial controls; Nominations committee › the independence, objectivity and effectiveness of the The nominations committee’s responsibilities include: external auditors; › making recommendations to the Board in relation to the › assessing the skills, knowledge, experience and diversity appointment, evaluation and dismissal of the external required on the Board and the extent to which each are auditors, their remuneration, terms of their engagement and represented; reviewing their independence and objectivity; › establishing processes for the review of the performance of › developing and implementing policy on the engagement of the Board committees and the Board as a whole; the external auditors to supply non-audit services; and › establishing processes for the identification of suitable › reporting to the Board, identifying any matter in respect of candidates for appointment to the Board; which it considers that action or improvement is needed and › overseeing succession planning for the Board; making recommendations as to the steps to be taken. › in relation to any director retiring by rotation who is proposing to stand for re-election, the committee will review the retiring The audit committee met twice during the year. In addition the director's performance during the period in which they have been audit committee chairman had two further sessions with the a member of the Board; and investment manager. › to consider the directors’ remuneration policy and approve any Composition – Mike Balfour (chairman), David Kidd and Gillian changes to directors’ remuneration arising as a result of such Watson. policy. The nominations committee met once during the year. Composition – all directors and chaired by Neil Gaskell.

Directors’ meetings The following table shows the number of formal board and board committee meetings held during the year and the number attended by each director or committee member.

Marketing and Formal board Management Nominations communications meetings engagement committee Audit committee committee committee (5 meetings) (1 meeting) (2 meetings) (1 meeting) (2 meetings) Mike Balfour 5 1 2 1 2 Neil Gaskell 5 1 n/a 1 2 David Kidd 5 1 2 1 2 Gill Nott* 2 n/a 1 n/a 1 Gillian Watson 4 1 2 1 2

*Retired on 18 June 2014. OVERVIEW GOVERNANCE 21

investment and related cash transactions are completely and transactions are cash investment and related in a timely manner; and settled accurately recorded identified voting instructions are corporate actions and proxy recorded and and then processed and generated respectively accurately and in a timely manner; in the proper investment income is accurately recorded period; from prices obtained valued using current investments are independent external pricing sources; completely and accurately cash and securities positions are party data; and to third and reconciled recorded accurately calculated and investment management fees are recorded. Internal control and risk management systems in Internal control and reporting process relation to the financial system of Company’s for the responsible are The directors assets, the Company’s to safeguard designed internal control, that financial ensure and records accounting maintain proper the business, or published, is reliable. information used within that monitor the place stringent controls Martin Currie has in process: the financial reporting following activities of › › › › › › designed to manage The system of internal can only be control to achieve business rather than eliminate the risk of failure but not only reasonable, can provide objectives and therefore mis-statement or absolute, assurance against fraud, material loss. Board set out above, the By the means of the procedures the Company’s of the effectiveness confirms that it has reviewed 31 January 2015 systems of internal for the year ended control of these financial statements. and to the date of approval Neil Gaskell Chairman 2015 30 March reviews the risk profile of the Company and considers of the Company and considers the risk profile reviews meeting. investment risk at every board reviews the terms of the investment management reviews agreement; and the operations on the internal reports controls reviews and of the investment manager and of the custodian; reviews an internal control report as provided to the Board to the Board as provided an internal report reviews control details This report twice yearly by the investment manager. and management issues, error significant risks, regulatory complaint handling; › and for identifying, evaluating is an ongoing process There Company as managing the significant risks faced by the with the accords outlined on pages 10 and 11. This process paper entitled ‘Internal Control: Financial Reporting Council’s on the Combined Code’. Guidance for Directors of internal the Board During the course of its review controls, has not identified or been advised of any failings or weaknesses which it has determined to be significant and is content with the arrangements. › › › Internal control Rules require and Transparency Disclosure The AIC Code and the of the the effectiveness to review at least annually, directors, description system of internal and include a control Company’s process. to the financial reporting relating of the main features are and all administrative services Since investment management by Martin Currie, the Company’s to the Company provided mainly comprises monitoring the system of internal control Currie, including the operating by Martin services provided that they meet the to ensure established by them, controls not have an business objectives. The Company does Company’s on the risk and internal audit function of its own, but relies This arrangement is compliance department of Martin Currie. The audit committee also carries out a kept under review. Bank and Trust of the activities carried out by State Street review contracted by the Company. Company who are the committees, reviews or through either directly The Board, by of internal system control of the Company’s effectiveness as follows: monitoring the operation of the key controls DIRECTORS’ REMUNERATION STATEMENT 22

Remuneration statement Annual report on remuneration The Board has prepared this report in accordance with the For the year to 31 January 2015, the non-executive directors requirements of the Large and Medium-sized Companies and received a fee of £22,000 per annum, the audit committee Groups (Accounts and Reports) (Amendment) Regulations 2013. chairman received a fee of £24,500 and the chairman a fee of £35,000 per annum. An ordinary resolution to approve this report will be put to the members at the AGM. During the year the nominations committee considered the directors’ fees in the context of the benchmark data from it’s peer Company law requires the Company’s auditors to audit certain of group. With effect from 1 February 2015, it was agreed that the the disclosures provided in this report. Where disclosures have been non-executive directors’ fees be increased by £500 per annum and audited they are indicated as such. The auditors’ opinion is included the chairman of the audit committee’s fee be increased by £1,500. in their report on pages 24 to 27. There will be no increase in the chairman’s fee. No additional Directors' remuneration policy discretionary payments were made in the year, or in the previous As the Board is composed wholly of non-executive directors, the year. nominations committee considers directors’ remuneration in The graph on the following page compares, for the ten financial addition to its nominations function. years ended 31 January 2015, the totals return (assuming all The Board’s policy is that the remuneration of non-executive dividends are reinvested) to ordinary shareholders compared to the directors should reflect the experience of the Board as a whole, be total return of the benchmark. fair and comparable to that of other investment trusts that are Directors’ shareholdings (audited) similar in size, have a similar capital structure and have similar investment objectives (principally global growth). It is intended that As at 31 January 2015 2014 this policy will continue for the year ended 31 January 2016 and Mike Balfour 10,000 10,000 subsequent years. The fees for the non-executive directors are determined within the limits set out in the Company’s Articles of Neil Gaskell 12,000 12,000 Association. Directors are entitled to be reimbursed for any David Kidd 10,000 10,000 reasonable expenses properly incurred by them in connection with Gill Nott* — 45,000 the performance of their duties. Directors are not eligible for Gillian Watson — — bonuses, pension benefits, share options, long-term incentive schemes or other benefits. *Retired on 18 June 2014. Directors do not have service contracts but are provided with letters The shareholdings detailed above have not changed between 31 of appointment. January 2015 and 30 March 2015, the date of signing the accounts. All directors are appointed for an initial term covering the period from the date of that appointment until the first AGM at which Approval they are requested to stand for election in accordance the An ordinary resolution for the approval of the directors’ Company’s Articles of Association. Thereafter the directors retire by remuneration policy report and annual report on remuneration will rotation at least every three years. There is no notice period and no be put to shareholders at the forthcoming AGM. provision for compensation upon early termination of appointment. On behalf of the Board The directors’ remuneration policy will be put to shareholders’ vote at least once every three years.

Neil Gaskell Chairman 30 March 2015 OVERVIEW GOVERNANCE

6.7 24.2 35.0 21.8 18.1 21.8 £000 127.6 Jan 2015 23 2013/2014 Jan 2013 — 8.3 35.0 22.0 22.0 24.5 £000 111.8 2014/2015 Jan 2011

(audited) Jan 2009 30.4% 1 178.3% Past performance is not a guide to future returns. Past performance is not a guide to future and Martin Currie Investment Management Limited. Jan 2007 k e ic ar Pr hm e nc ar Be Sh ** * 0 20 60 40 80 Jan 2005 Retired on 18 June 2014. Retired on 21 May 2013. Retired (20) 100 140 180 120 160 200 Neil Gaskell (chairman of the Board) David Kidd Gillian Watson Gill Nott Mike Balfour (chairman of the audit committee) Ben Thomson Directors’ emoluments for the year Directors’ emoluments for Benchmark and share price total return comparison (% change over 10 years) price total return comparison Benchmark and share * ** Source: FTSE InternationalSource: Limited On 1 June 2011, the Company's benchmark changed from FTSE All-Share Index to FTSE World Index. Blended index returns are used for periods which include data prior to used for periods which include data Index. Blended index returns are Index to FTSE World FTSE All-Share from On 1 June 2011, the Company's benchmark changed 1 June 2011. % INDEPENDENT AUDITORS’ REPORT 24

Independent auditors’ report to the Our audit approach members of Martin Currie Global Overview Portfolio Trust plc Materiality: › Overall materiality: £1.8 million which represents 1% of net Report on the financial statements assets. Our opinion Audit scope: In our opinion, Martin Currie Global Portfolio Trust plc’s financial › The Company is a standalone Investment Trust Company and statements (the ‘financial statements’): engages Martin Currie Investment Management Limited (the › give a true and fair view of the state of the Company’s ‘investment manager’) to manage its assets. affairs as at 31 January 2015 and of its net return and cash › We conducted our audit of the financial statements at State flows for the year then ended; Street Global Services (the ‘administrator’) to whom the › have been properly prepared in accordance with United investment manager has, with the consent of the directors, Kingdom Generally Accepted Accounting Practice; and delegated the provision of certain administrative functions. › have been prepared in accordance with the requirements of › We tailored the scope of our audit taking into account the types the Companies Act 2006. of investments within the Company, the involvement of the third parties referred to above, the accounting processes and What we have audited controls, and the industry in which the Company operates. Martin Currie Global Portfolio Trust plc’s financial statements comprise: Areas of audit focus: › The balance sheet as at 31 January 2015; › Valuation and existence of investments › The income statement for the year then ended; › Income from investments › The cash flow statement for the year then ended; The scope of our audit and our areas of focus › The reconciliation of movements in shareholders’ funds for We conducted our audit in accordance with International Standards the year then ended; and on Auditing (UK and Ireland) ('ISAs (UK & Ireland)'). › The notes to the financial statements, which include a We designed our audit by determining materiality and assessing the summary of significant accounting policies and other risks of material misstatement in the financial statements. As in all explanatory information. of our audits, we also addressed the risk of management override Certain required disclosures have been presented elsewhere in of internal controls, including evaluating whether there was the Annual Report, rather than in the notes to the financial evidence of bias by the directors that represented a risk of material statements. These are cross-referenced from the financial misstatement due to fraud. statements and are identified as audited. The risks of material misstatement that had the greatest effect on The financial reporting framework that has been applied in the our audit, including the allocation of our resources and effort, are preparation of the financial statements is applicable law and identified as 'areas of focus' in the table overleaf. We have also set United Kingdom Accounting Standards (United Kingdom out how we tailored our audit to address these specific areas in Generally Accepted Accounting Practice). order to provide an opinion on the financial statements as a whole, and any comments we make on the results of our procedures should be read in this context. This is not a complete list of all risks identified by our audit. OVERVIEW GOVERNANCE 25 We assessed the accounting policy for income recognition for compliance with accounting the accounting policy for income recognition assessed We and the AIC SORP and performed testing to check that income had been standards with this stated accounting policy. accounted for in accordance with accounting in accordance that the accounting policies implemented were found We with and that the income has been accounted for in accordance and the AIC SORP, standards the stated accounting policy. surrounding and assessed the design and implementation of key controls understood We income. the dividend rates of investments to by agreeing In addition, we tested dividend receipts party sources. independent third to those charged reporting identified by our testing which required No misstatements were with governance. in the dividends had been received test for completeness, we tested that the appropriate To by a sample of investment to independent data of dividends declared year by reference holdings in the portfolio. dividends. Our testing did not identify any unrecorded and of dividend income between the revenue tested the allocation and presentation We set out in the capital return columns of the Income Statement in line with the requirements dividends to independent third then tested the validity of a sample of special We AIC SORP. party sources. with the AIC SORP. in accordance not treated did not find any special dividends that were We We tested the valuation of the listed equity investments to independent third party sources. third listed equity investments to independent tested the valuation of the We charged to those reporting by our testing which required identified No misstatements were with governance. for investments the holdings investment portfolio by agreeing tested the existence of the We Company. Trust Bank and State Street confirmation from to an independent custodian identified. were No differences How our audit addressed the How our audit addressed area of focus the Company’s net asset value. the Company’s income could have a material impact on income could have a material impact on This is because incomplete or inaccurate This is because incomplete or inaccurate Recommended Practice (the 'AIC SORP'). Recommended Practice (the 'AIC SORP'). Investment Companies Statement of requirements of The Association of requirements Income Statement as set out in the recognition and its presentation in the and its presentation recognition completeness of dividend income We focused on the accuracy and focused We and page 33 (notes). Report), page 32 (Accounting Policies) Refer to page 17 (Audit Committee Income financial statements. disclosed on the Balance Sheet in the element of the net asset value as investments represent the principal investments represent existence of investments because We focused on the valuation and focused We investments. of £182 million comprised listed equity of £182 million comprised The investment portfolio at the year-end at the year-end The investment portfolio Statements). and page 36 (Notes to the Financial and page 36 (Notes Report), page 32 (Accounting policies) Report), page 32 (Accounting Refer to page 17 (Audit Committee Refer to page 17 (Audit investments Valuation and existence of and existence Valuation Area of focus INDEPENDENT AUDITORS’ REPORT 26

How we tailored the audit scope Going concern We tailored the scope of our audit to ensure that we performed Under the Listing Rules we are required to review the enough work to be able to give an opinion on the financial directors’ statement, set out on page 18, in relation to going statements as a whole, taking into account the types of investments concern. We have nothing to report having performed our within the Company, the involvement of the investment manager, review. the accounting processes and controls, and the industry in which As noted in the directors’ statement, the directors have the Company operates. concluded that it is appropriate to prepare the Company’s The Company’s accounting is delegated to the administrator who financial statements using the going concern basis of maintain their own accounting records and controls and report to accounting. The going concern basis presumes that the the directors. Company has adequate resources to remain in operation, and that the directors intend it to do so, for at least one year from As part of our risk assessment, we assessed the control environment the date the financial statements were signed. As part of our in place at both the investment manager and the administrator to audit we have concluded that the directors’ use of the going the extent relevant to our audit. This assessment of the operating concern basis is appropriate. and accounting structure in place at both organisations involved obtaining and reading the relevant control reports issued by the However, because not all future events or conditions can be independent auditor of the investment manager and the predicted, these statements are not a guarantee as to the administrator in accordance with generally accepted assurance Company’s ability to continue as a going concern. standards for such work. We then identified those key controls at the administrator on which we could place reliance to provide audit Other required reporting evidence. We also assessed the gap period of four months between the period covered by the controls report and the year-end of the Consistency of other information company. Following this assessment, we applied professional judgement to determine the extent of testing required over each Companies Act 2006 opinion balance in the financial statements, including whether we needed In our opinion the information given in the Strategic to perform additional testing in respect of those key controls to report and the Report of the directors for the financial support our substantive work. For the purposes of our audit, we year for which the financial statements are prepared is determined that additional testing of controls in place at the consistent with the financial statements. administrator was not required because additional substantive ISAs (UK & Ireland) reporting testing was performed. Under ISAs (UK & Ireland) we are required to report to you if, in our opinion Materiality The scope of our audit was influenced by our application of › the information in the Annual Report is: materiality. We set certain quantitative thresholds for materiality. materially inconsistent with the information in the These, together with qualitative considerations, helped us to audited financial statements; or determine the scope of our audit and the nature, timing and extent apparently materially incorrect based on, or of our audit procedures and to evaluate the effect of misstatements, materially inconsistent with, our knowledge of the both individually and on the financial statements as a whole. Company acquired in the course of performing Based on our professional judgement, we determined materiality for our audit; or the financial statements as a whole as follows: otherwise misleading. We have no exceptions to report arising from this responsibility. Overall materiality £1.8 million (2014: £1.6 million) › the statement given by the directors on page 16, in How we determined it 1% of net assets accordance with provision C.1.1 of the UK Corporate Governance Code (‘the Code’), that they consider the Annual Report taken as a whole to be fair, balanced Rationale for We have applied this benchmark, a and understandable and provides the information benchmark applied generally accepted auditing practice necessary for members to assess the Company’s for investment trust audits in the performance, business model and strategy is absence of indicators that an materially inconsistent with our knowledge of the alternative benchmark would be Company acquired in the course of performing our appropriate and because we believe audit. We have no exceptions to report arising from this provides an appropriate and this responsibility. consistent year-on-year basis for our audit. › the section of the Annual Report on page 17, as required by provision C.3.8 of the Code, describing We agreed with the Audit Committee that we would report to the work of the Audit Committee does not them misstatements identified during our audit above £90,000 appropriately address matters communicated by us to (2014: £80,000) as well as misstatements below that amount that, the Audit Committee. We have no exceptions to in our view, warranted reporting for qualitative reasons. report arising from this responsibility. OVERVIEW 27 whether the accounting policies are appropriate to the appropriate policies are whether the accounting and have been consistently circumstances Company’s disclosed; applied and adequately accounting estimates made of significant the reasonableness and by the directors; of the financial statements. the overall presentation What an audit of financial statements involves What an audit of evidence about the amounts and An audit involves obtaining to give statements sufficient in the financial disclosures from free the financial statements are assurance that reasonable This whether caused by fraud or error. material misstatement, of: includes an assessment › › › and examine information, using sampling and other test We necessary to auditing techniques, to the extent we consider basis for us to draw conclusions. a reasonable provide control understanding the audit evidence through obtain We at the investment manager and the administrator, environment and substantive procedures. all the financial and non-financial In addition, we read material information in the Annual Report to identify statements and to inconsistencies with the audited financial materially incorrect identify any information that is apparently the knowledge based on, or materially inconsistent with, by us in the course of performing the audit. If we acquired or material misstatements of any apparent become aware for our report. inconsistencies we consider the implications (Senior Statutory Auditor) Lindsay Gardiner LLP for and on behalf of PricewaterhouseCoopers Accountants and Statutory Auditors Chartered Edinburgh 2015 30 March adequate accounting records have not been kept, or returns records adequate accounting from have not been received adequate for our audit by us; or branches not visited and the part of the Directors’ the financial statements not in agreement to be audited are Remuneration Report and returns. with the accounting records we have not received all the information and explanations all the we have not received for our audit; or we require As explained more fully in the Statement of Directors’ fully in the Statement of Directors’ As explained more responsible are Responsibilities set out on page 16, the directors of the financial statements and for being for the preparation satisfied that they give a true and fair view. an opinion on the is to audit and express Our responsibility with applicable law and ISAs financial statements in accordance us to comply with the require Those standards (UK & Ireland). for Auditors. Ethical Standards Auditing Practices Board’s and for including the opinions, has been prepared This report, with members as a body in accordance only for the Company’s Chapter 3 of Part 16 of the Companies Act 2006 and for no do not, in giving these opinions, accept or other purpose. We for any other purpose or to any other assume responsibility is shown or into whose hands it person to whom this report in by our prior consent agreed expressly may come save where writing. Our responsibilities and those of the directors Our responsibilities and those of Corporate governance statement the part of to review required Under the Listing Rules we are to the Company’s the Corporate Governance Statement relating of the UK Corporate compliance with ten provisions having performed have nothing to report Governance Code. We our review. Other Companies Act 2006 reporting to to report required Under the Companies Act 2006 we are of Directors’ you if, in our opinion, certain disclosures have no not made. We specified by law are remuneration this responsibility. arising from exceptions to report In our opinion, the part of the Directors’ Remuneration Report In our opinion, the part of the Directors’ with in accordance prepared to be audited has been properly the Companies Act 2006. Directors’ remuneration Companies Act Directors’ Remuneration Report – 2006 opinion › › this responsibility. arising from no exceptions to report have We › Adequacy of accounting records and information Adequacy of accounting received and explanations to to report required Act 2006 we are Under the Companies you if, in our opinion: INCOME STATEMENT 28

Year to 31 January 2015 Year to 31 January 2014 Revenue Capital Total Revenue Capital Total Note £000 £000 £000 £000 £000 £000

Net gains on investments 7 — 22,345 22,345 — 7,193 7,193 Net currency losses 12 — (62) (62) — (14) (14) Income 3 5,213 — 5,213 5,108 — 5,108 Investment management fee 5 (290) (579) (869) (279) (558) (837) Other expenses 5 (403) — (403) (429) — (429)

Net return on ordinary activities before 4,520 21,704 26,224 4,400 6,621 11,021 taxation Taxation on ordinary activities 6 (490) — (490) (490) — (490)

Net return attributable to shareholders 4,030 21,704 25,734 3,910 6,621 10,531

Net returns per ordinary share 2 3.92p 21.10p 25.02p 3.76p 6.37p 10.13p

The total columns of this statement are the profit and loss accounts of the Company. The revenue and capital items are presented in accordance with the Association of Investment Companies (AIC) Statement of Recommended Practice. All revenue and capital items in the above statement derive from continuing operations. No operations were acquired or discontinued in the year. The notes on pages 32 to 41 form part of these financial statements. A Statement of Total Recognised Gains and Losses is not required as all gains and losses of the Company have been reflected in the above statement. There is no material difference between the net return on ordinary activities before taxation and the net return attributable to shareholders stated above and their historical cost equivalents. OVERVIEW FINANCIAL REVIEW £000 446 29 163,755 163,755 157.4p 164,201 164,201 458 729 271 (283) £000 5,707 5,224 As at 31 January 2014 26,228 10,793 116,249 £000 2,153 181,798 181,798 178.5p 183,951 183,951 289 (949) £000 5,619 5,224 2,813 3,102 As at 31 January 2015 47,932 10,793 114,383 2 9 8 7 11 11 10 Note

Net asset value per ordinary share of 5p Net asset value per ordinary share of Total shareholders’ funds Total Revenue reserve Capital reserve Special reserve distributable Special reserve Capital redemption reserve Capital redemption Capital and reserves capital Called-up share Total assets less current liabilities Total Net current assets Creditors Amounts falling due within one year Cash at bank and in hand Current assets Debtors Fixed assets value through profit or loss Investments at fair Listed on stock exchanges Neil Gaskell, Chairman The financial statements on pages 28 to 41 were approved by the Board of directors on 30 March 2015 and signed on its behalf by on 30 March of directors by the Board approved The financial statements on pages 28 to 41 were The notes on pages 32 to 41 form part of these financial statements. The notes on pages 32 to 41 form part of these in Scotland, company number 192761. plc is registered Martin Currie Global Portfolio Trust BALANCE SHEET SHEET BALANCE RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS’ FUNDS 30

Called-up Capital Special share redemption distributable Capital Revenue capital reserve reserve reserve reserve Total Note £000 £000 £000 £000 £000 £000

Reconciliation of movements in shareholders’ funds for the year to 31 January 2015 At 31 January 2014 5,224 10,793 116,249 26,228 5,707 164,201 Ordinary shares bought back during — — (4,964) — — (4,964) the year Ordinary shares issued during the — — 3,098 — — 3,098 year Gains on realisation of investments 7 — — — 8,065 — 8,065 at fair value Movement in currency gains/(losses) — — — (62) — (62) Movement in fair value gains/(losses) 7 — — — 14,280 — 14,280 Capitalised expenses — — — (579) — (579) Net revenue — — — — 4,030 4,030 Dividends paid 4 — — — — (4,118) (4,118)

At 31 January 2015 5,224 10,793 114,383 47,932 5,619 183,951

Reconciliation of movements in shareholders' funds for the year to 31 January 2014 At 31 January 2013 5,227 10,790 116,378 19,607 7,397 159,399 Ordinary shares bought back during — — (2,538) — — (2,538) the year Ordinary shares issued during the — — 2,409 — — 2,409 year Ordinary shares cancelled during the (3) 3 — — — — year Gains on realisation of investments 7 — — — 8,964 — 8,964 at fair value Movement in currency gains/(losses) — — — (14) — (14) Movement in fair value gains/(losses) 7 — — — (2,094) — (2,094) Capitalised expenses — — — (558) — (558) Capital dividends received 3 — — — 323 — 323 Net revenue — — — — 3,910 3,910 Dividends paid 4 — — — — (5,600) (5,600)

At 31 January 2014 5,224 10,793 116,249 26,228 5,707 164,201

The notes on pages 32 to 41 form part of these financial statements. OVERVIEW FINANCIAL REVIEW 409 538 (129) £000 2,841 3,297 (5,600) 31 Year ended Year 31 January 2014 323 £000 2,409 (2,538) 46,530 (44,012) £000 2,417 4,283 4,950 3,451 (1,866) (4,118) Year ended Year 31 January 2015 — £000 3,098 (4,964) 37,639 (32,689) 4 3 13 11 12 Note

Increase in cash Net cash outflow from financing Net cash outflow from Shares issued for cash Shares Financing capital share of ordinary Repurchase Net cash inflow before financing Equity dividends paid Net cash inflow from capital expenditure and Net cash inflow from financial investment Proceeds from sales of investments from Proceeds Payment to acquire investments Payment to acquire Capital expenditure and financial investment Capital expenditure Capital distributions Net cash inflow from operating activities Net cash inflow from

The notes on pages 32 to 41 form part of these financial statements. The notes on pages 32 to 41 form part of these CASH FLOW STATEMENT STATEMENT FLOW CASH NOTES TO THE FINANCIAL STATEMENTS 32

1 Accounting policies a) Basis of preparation – the financial statements have been prepared under the historical cost convention (modified to include investments at fair value through profit or loss) on a going concern basis and in accordance with applicable UK Accounting Standards and with the Statement of Recommended Practice ‘Financial Statements of Investment Trust Companies and Venture Capital Trusts’ issued in January 2009. They have also been prepared on the assumption that approval as an investment trust will continue to be granted. The Company is a UK listed company with a predominantly UK shareholder base. The results and the financial position of the Company are expressed in sterling, which is the functional and presentational currency of the Company. The accounting policies have been disclosed consistently and in line with Companies Act 2006. b) Income from investments (other than capital dividends), including taxes deducted at source, is included in revenue by reference to the date on which the investment is quoted ex-dividend, or where no ex-dividend date is quoted, when the Company’s right to receive payment is established. UK investment income is stated net of the relevant tax credit. Overseas dividends include any taxes deducted at source. Special dividends are credited to capital or revenue, according to the circumstances. Scrip dividends are treated as unfranked investment income; any excess in value of the shares received over the amount of the cash dividend is recognised as a capital item in the income statement. Income from underwriting commission is recognised as earned. c) Interest receivable and payable, management fees, performance fees and other expenses are treated on an accruals basis. d) The management fee and finance costs in relation to debt are recognised two-thirds as a capital item and one-third as a revenue item in the income statement in accordance with the board’s expected long-term split of returns in the form of capital gains and income, respectively. The performance fee is recognised 100% as a capital item in the income statement as it relates entirely to the capital performance of the Company. All expenses are charged to revenue except where they directly relate to the acquisition or disposal of an investment, in which case, they are added to the cost of the investment or deducted from the sale proceeds. e) Investments – investments have been designated upon initial recognition as fair value through profit or loss. Investments are recognised and de-recognised at trade date where a purchase or sale is under a contract whose terms require delivery within the time frame established by the market concerned, and are initially measured as fair value. Subsequent to initial recognition, investments are valued at fair value. For listed investments, this is deemed to be bid market prices. Gains and losses arising from changes in fair value are included in net profit or loss for the year as a capital item in the income statement and are ultimately recognised in the capital reserve. In accordance with FRS29, all investments have been categorised as Level 1 - quoted in an active market. f) Transaction costs incurred on the purchase and disposal of investments are recognised as a capital item in the income statements. g) Monetary assets and liabilities expressed in foreign currencies are translated into sterling at rates of exchange ruling at the date of the balance sheet or at the related forward contract rate. Transactions in foreign currency are converted to sterling at the rate ruling at the date of the transaction or, where forward foreign currency contracts have been taken out, at contractual rates and included as an exchange gain or loss in the capital reserve or the revenue account depending on whether the gain or loss is of a capital or revenue nature. h) Cash at bank comprises cash and demand deposits which are readily convertible to a known amount of cash and are subject to insignificant risk of changes in value. Other debtors and creditors (excluding borrowings) do not carry any interest, are short-term in nature and are accordingly stated at nominal value as reduced by appropriate allowances for estimated irrecoverable amounts. i) Dividend payable – under FRS21 fourth interim dividends should not be accrued in the financial statements unless they have been approved by shareholders before the Balance Sheet date. First, second and third interim dividends are only recognised when they have been paid. Dividends payable to equity shareholders are recognised in the Reconciliation of Movements in Shareholders’ Funds when they have been approved by shareholders in the case of a fourth interim dividend, or paid in the case of the first, second and third interim dividend and become a liability of the Company. j) Capital reserve – gains or losses on realisation of investments and changes in fair values of investments are transferred to the capital reserve. Any changes in fair values of investments that are not readily convertible to cash are treated as unrealised gains or losses within the capital reserve. The capital element of the management fee and relevant finance costs are charged to this reserve. Any associated tax relief is also credited to this reserve. The cost of share buybacks include the amount of consideration paid, including directly attributable costs and are deducted from the special distributable reserve until the shares are cancelled. The special distributable reserve was created through the cancellation and reclassification of the share premium account in 1999 and 2004, and thereafter the cost of the share buybacks are deducted from this reserve. k) Taxation – the charge for taxation is based upon the revenue for the year and is allocated according to the marginal basis between revenue and capital using the Company’s effective rate of corporation tax for the accounting period. l) Deferred taxation – deferred taxation is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more or a right to pay less tax in future have occurred at the balance sheet date measured on an undiscounted basis and based on enacted tax rates. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the future reversal of the underlying temporary differences can be deducted. Timing differences are differences arising between the Company’s taxable profits and its results as stated in the accounts which are capable of reversal in one or more subsequent periods. Due to the Company’s status as an investment trust company, and the intention to continue meeting the conditions required to obtain approval in the foreseeable future, the Company has not provided deferred tax on any capital gains and losses arising on the revaluation or disposal of investments. m) The Company can use derivative financial instruments to manage risk associated with foreign currency fluctuations arising on the investments in currencies other than sterling. This is achieved by the use of forward foreign currency contracts. Derivative financial instruments are recognised initially at fair value on the contract date and subsequently remeasured to the fair value at each reporting date. The resulting gain or loss is recognised as revenue or capital in the income statement depending on the nature and motive of each derivative transaction. The fair values of the derivative financial instruments are included within non-current assets or within current assets or current liabilities depending on the nature and motive of each derivative transaction. OVERVIEW FINANCIAL REVIEW

4 792 £000 As at 3.76p 6.37p 4,312 5,108 157.4p 10.13p 33 £3,910,000 £6,621,000 Year ended Year Year ended Year 104,293,171 103,917,881 103,917,881 £164,201,000 31 January 2014 31 January 2014 31 January 2014

4 690 £000 As at 3.92p 4,519 5,213 178.5p 21.10p 25.02p £4,030,000 Year ended Year Year ended Year 103,063,375 £21,704,000 102,868,296 102,868,296 £183,951,000 31 January 2015 31 January 2015 31 January 2015 Note 2 Net asset value per share Net asset value per share Net assets attributable to shareholders in issue at the year end Number of shares Return per ordinary share Return per ordinary Capital return shareholders attributable to ordinary Capital return Return share per ordinary return Total share return per ordinary Total Returns and net asset value Returns and net asset to calculated with reference are share value per ordinary The return and net asset the following figures: Revenue return shareholders to ordinary Revenue return attributable in issue during year of shares average number Weighted year in issue during average number of shares Weighted Note 3 Income from investments listed investments From UK equities International equities Other income on deposits Interest Between 1 February and 26 March 2015, 583,970 ordinary shares of 5p were bought back to treasury. of 5p were shares 2015, 583,970 ordinary Between 1 February and 26 March There are no dilutive or potentially dilutive shares in issue. dilutive shares no dilutive or potentially are There There were no capital dividends received during the year ended 31 January 2015. During the year ended 31 January 2014, the Company received a received during the year ended 31 January 2015. During the year ended 31 January 2014, the Company no capital dividends received were There Media, as shown in note 7. ProSiebenSat.1 capital dividend of £323,000 from

NOTES TO THE FINANCIAL STATEMENTS 34

Year ended 31 January 2015 Year ended 31 January 2014 Note 4 Revenue Capital Total Revenue Capital Total £000 £000 £000 £000 £000 £000

Dividends Year ended 31 January 2013 - final dividend of 2.70p — — — 2,801 — 2,801 Year ended 31 January 2014 - final dividend of 1.30p 1,345 — 1,345 — — — Year ended 31 January 2015 - first interim dividend of 928 — 928 932 — 932 0.90p (2014: 0.90p) Year ended 31 January 2015 - second interim 915 — 915 928 928 dividend of 0.90p (2014: 0.90p) Year ended 31 January 2015 - third interim dividend of 930 — 930 939 939 0.90p (2014: 0.90p) 4,118 — 4,118 5,600 — 5,600

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

Year ended Year ended 31 January 2015 31 January 2014 £000 £000 First interim dividend of 0.90p for the year ended 31 January 2015 (2014: 0.90p) 928 932 Second interim dividend of 0.90p for the year ended 31 January 2015 (2014: 0.90p) 915 928 Third interim dividend of 0.90p for the year ended 31 January 2015 (2014: 0.90p) 930 939 Proposed fourth interim dividend of 1.40p for the year ended 31 January 2015 (2014: 1.30p) 1,443 1,356 4,216 4,155

Year ended Year ended Note 5 31 January 2015 31 January 2014 £000 £000

Other expenses Advertising and public relations 48 31 Bank charges (including custody fees) 16 18 Directors' fees 112 128 Directors and officers liability insurance 14 15 Irrecoverable VAT 9 11 Legal fees 1 7 Marketing 25 22 Printing and postage 10 26 Registration fees 50 49 Secretarial fee 51 50 Other 45 50 381 407

Auditors’ remuneration Payable to PricewaterhouseCoopers LLP for the audit of the Company’s annual financial 22 22 statements 403 429

Performance fee The performance fee for the year ended 31 January 2015 was £nil (2014: £nil). Details of the management and secretarial agreements are provided on page 13. OVERVIEW FINANCIAL REVIEW

3 490 293 490 490 £000 (837) (429) Total (183) (999) £000 £000 Total 2,552 0.75% (1,266) 11,021 (1,666) 35 168,968 - January 2014 — Year ended 31 Year £000 (558) (558) £000 Capital Capital

13 490 270 490 (147) (964) £000 490 5,594 Year ended 31 January 2014 ended 31 Year Year ended 31 January 2014 Year £000 (279) (429) (708) £000 26,224 (4,766) Revenue Revenue January 2015 Year ended 31 Year 490 £000 (869) (403) Total £000 Total 0.73% (1,272) 174,718 - — £000 (579) (579) £000 Capital Capital 490 Year ended 31 January 2015 ended 31 Year Year ended 31 January 2015 Year £000 (290) (403) (693) £000 Revenue Revenue Note 5 (cont) Ongoing charges are calculated with reference Ongoing charges are to the following figures: fee Investment management Other expenses Total expenses expenses Total Average net assets over the year net assets over the Average Ongoing charges Note 6 Currency losses not taxable Currency Overseas tax suffered in excess management and loan expenses Increase year tax charge for the year current Total Net return before taxation Net return before rate of 21.33% (2014: 23.16%) Corporation tax at effective of: Effects Non taxable UK dividend income Gains on investments not taxable Overseas dividends not taxable Taxation on ordinary activities Taxation tax Foreign Full details of the investment management fee are included in the report of the directors on page 13, details of the directors' fees are included in the fees are on page 13, details of the directors' the directors of in the report included are Full details of the investment management fee statement on pages 22 and 23. remuneration directors' As of 1 April 2014, the UK Corporation tax rate fell from 23% to 21%. As of 1 April 2014, the UK Corporation tax rate fell from (2014: £22.8 million) and non-trading loan relationship As at 31 January 2015, the Company had unutilised management expenses of £24.1 million and these expenses will only of this has not been recognised tax asset in respect A deferred deficit of £4.7 million (2014: £4.7 million) carried forward. and the status as an investment trust Due to the Company’s chargeable to corporation tax in the future. be utilised if the Company has profits tax on deferred not provided the Company has future, in the foreseeable to obtain approval intention to continue to meet the conditions required or disposal of investments. capital gains and losses arising on the revaluation the main rate of corporation tax to 20% for the financial year 2015, that in the Finance Act 2013 to reduce of the provision as a result During the year, to 20%. tax asset has been remeasured deferred 1 April 2015, the unrecognised from was substantively enacted on 2 July 2013 and is effective The effective corporation tax rate was 21.32% (2014: 23.16%). The tax charge for the year differs from the charge resulting from applying the standard applying the standard from the charge resulting from corporation tax rate was 21.32% (2014: 23.16%). The tax charge for the year differs The effective explained below. are The differences trust company. rate of corporation tax in the UK for an investment NOTES TO THE FINANCIAL STATEMENTS 36

As at As at Note 7 31 January 2015 31 January 2014 £000 £000

Investments at fair value through profit or loss Opening valuation 163,755 158,894 Opening unrealised investment holding gains (25,304) (27,398)

Opening cost 138,451 131,496

Purchases at cost 33,337 40,340 Disposal proceeds (37,639) (42,349) Net profit on disposal of investments 8,065 8,964

Disposal at cost (29,574) (33,385)

Closing cost 142,214 138,451 Closing unrealised investment holding gains 39,584 25,304

Valuation as at 31 January 181,798 163,755

As at As at 31 January 2015 31 January 2014 £000 £000

Gains on investments Net profit on disposal of investments 8,065 8,964 Net gain/(loss) on revaluation of investments 14,280 (2,094) Capital distributions — 323 22,345 7,193

The transaction cost in acquiring investments during the year was £74,000 (2014: £85,000). For disposals, transaction costs were £54,000 (2014: £67,000).

As at As at Note 8 31 January 2015 31 January 2014 £000 £000

Debtors: amounts falling due within one year Dividends receivable 159 160 Taxation recoverable 124 106 Other debtors 6 5 289 271

As at As at Note 9 31 January 2015 31 January 2014 £000 £000

Cash at bank Sterling bank account 2,809 421 Non-sterling bank account 4 37 2,813 458 OVERVIEW FINANCIAL REVIEW

6 — (3) 80 10 79 (62) 73 (73) 204 283 (579) £000 £000 (81) £000 As at £000 As at 8,065 As at 5,224 14,280 47,932 26,228 5,214 5,222 reserve 37 Total capital Total 31 January 2014 31 January 2014 31 January 2014

shares shares — — — (60,000) 113,623 200,000 73 648 228 949 1,466,623 1,613,000 £000 £000 (1,613,000) As at Number of (1,466,623) Number of 104,293,171 104,439,548 104,493,171 39,584 14,280 25,304

holding gains — 87 10 71 31 January 2015 £000 £000 As at (87) 148 As at (148) 5,153 5,214 5,224 Unrealised investment — 31 January 2015 31 January 2015 (62) 924 (579) £000 8,348 8,065 — reserve shares shares 200,000 1,727,145 2,956,941 1,429,796 (2,956,941) Realised capital Number of (1,727,145) Number of 103,063,375 104,293,171 104,493,171 Ordinary shares issued from treasury during the year treasury issued from shares Ordinary in issue at end of the year shares Ordinary Ordinary shares bought back to treasury during the year bought back to treasury shares Ordinary Called-up share capital and analysis of Called-up share capital and analysis of capital reserve Called-up share capital: 5p shares Ordinary in issue at the beginning of the year shares Ordinary Note 11 Ordinary shares issued from treasury during the year treasury issued from shares Ordinary during the year treasury cancelled from shares Ordinary Treasury shares (Ordinary shares 5p) Treasury in issue at the beginning of the year shares Treasury during the year bought back to treasury shares Ordinary in issue at end of the year shares Treasury Total ordinary shares in issue and in treasury at the end in issue and in treasury shares ordinary Total of the year Note 10 Movement in currency losses Movement in currency Capitalised expenses At 31 January 2015 Movement in fair value gains of investments At 31 January 2014 of investments at fair value Gains on realisation Creditors: amounts falling due within one year Creditors: amounts Amount due to brokers Other creditors Due to Martin Currie The above split in capital reserve is shown in accordance with provisions of the Statement of Recommended Practice ‘Financial Statements of Investment of the Statement with provisions is shown in accordance The above split in capital reserve Capital Trusts’. Companies and Venture Trust The net cost of share issues from and buybacks to treasury for the year to 31 January 2015 was £1,866,000 (2014: shares bought back to treasury £129,000). bought back to treasury £1,866,000 (2014: shares for the year to 31 January 2015 was and buybacks to treasury issues from The net cost of share is as follows: The analysis of the capital reserve With the exception of management and secretarial fees (as disclosed on page 13), directors’ fees (disclosed on page 23) and directors’ shareholding shareholding directors’ fees (disclosed on page 23) and With on page 13), directors’ fees (as disclosed exception of management and secretarial the or in the prior year. the year, party transactions through no related were (disclosed on page 22) there NOTES TO THE FINANCIAL STATEMENTS 38

Year ended Year ended Note 12 31 January 2015 31 January 2014 £000 £000

Reconciliation of net return on ordinary activities before taxation to net cash inflow from operating activities Return on ordinary activities before finance costs and taxation 26,224 11,021 Adjustments for: Net gains on investments (22,345) (7,193) Effect of foreign exchange rates 62 14 Decrease in dividends receivable, interest accrued and other debtors — 9 Increase/(decrease) in other creditors and amounts due to Martin Currie 18 (28) Overseas withholding tax suffered (508) (526)

Net cash inflow from operating activities 3,451 3,297

As at 31 As at 31 As at 31 As at 31 January Cash Exchange January January Cash Exchange January Note 13 2014 flow movement 2015 2013 flow movement 2014 £000 £000 £000 £000 £000 £000 £000 £000

Analysis of changes in net funds Cash at bank and in hand 458 2,417 (62) 2,813 63 409 (14) 458 Note 14 Related party transactions With the exception of the management and secretarial fees (as disclosed on page 13), directors’ fees (disclosed on page 23) and directors’ shareholdings (disclosed on page 22), there have been no related party transactions during the year, or in the prior year. Note 15 Derivatives and other financial instruments The Company’s financial instruments comprise securities and other investments, cash balances, loans and debtors and creditors that arise directly from its operations; for example, in respect of sales and purchases awaiting settlement, and debtors for accrued income. The Company also has the ability to enter into derivative transactions in the form of forward foreign currency contracts, futures and options, for the purpose of managing currency and market risks arising from the Company’s activities. The main risks the Company faces from its financial instruments are (i) market price risk (comprising interest rate risk,currency risk and other price risk), (ii) liquidity risk and (iii) credit risk. The Board regularly reviews and agrees policies for managing each of these risks. The investment manager’s policies for managing these risks are summarised below and have been applied throughout the year. The numerical disclosures exclude short-term debtors and creditors, other than for currency disclosures. (i) Market price risk The fair value or future cash flows of a financial instrument held by the Company may fluctuate because of changes in market prices. This market risk comprises three elements – interest rate risk, currency risk and other price risk. Interest rate risk Interest rate movements may affect: › the fair value of the investments in fixed interest rate securities; and › the level of income receivable on cash deposits. The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account when making investment and borrowing decisions. The Board imposes borrowing limits to ensure gearing levels are appropriate to market conditions and reviews these on a regular basis. Borrowings may comprise fixed rate, revolving, and uncommitted facilities. Current guidelines state that the total borrowings will not exceed 20% of the total assets of the Company. The Company does not currently have any gearing. OVERVIEW FINANCIAL REVIEW

4 37 421 458 £000 Total Total £000 £000 5,985 4,683 4,462 4,191 2,997 2,394 1,566 2,809 2,813 91,462 14,673 11,053 20,735 39 Sterling Sterling 143,466 164,201 currency exposure equivalent equivalent — — — — — 65 28 36 (1) 161 289 446 157 £000 As at 31 January 2014 exposure 1.000 1.643 1.000 1.502 Monetary Foreign Foreign exchange rate exchange rate Non £000 2,969 5,949 4,683 4,462 4,191 2,394 1,567 91,301 14,608 11,053 20,578

143,177 163,755 exposure 6 monetary 61 ‘000 ‘000 421 Local Local 2,809 currency currency £000 Total Total 2,543 6,483 5,600 2,559 5,856 2,226 2,059 18,904 11,235 25,318 101,168 158,633 183,951 currency exposure

— % % — — — — — — 25 24 72 Rate Rate 0.25 0.01 158 279 £000 1,874 2,153 As at 31 January 2015 exposure Monetary Non £000 5,600 2,559 5,856 2,519 2,226 2,059 6,411 18,879 23,444 11,235 101,010 158,354 181,798 exposure monetary As at 31 January 2014 As at 31 January 2015 US dollar Euro Singapore dollar Singapore Norwegian krone Hong Kong dollar Canadian dollar Australian dollar Indonesian rupiah overseas investments Total Sterling Japanese yen Swiss franc Total Assets Sterling Assets Sterling US dollar US dollar Foreign currency risk can be investment portfolio is invested in overseas securities and the balance sheet of the Company’s A significant proportion policy to hedge this risk on a continuing basis but exchange rates. It is not the Company’s by movements in foreign significantly affected borrowings. currency time to time, match specific overseas investment with foreign from the Company may, fluctuation arising on overseas income. account is subject to currency The revenue of denomination: by currency risk exposure currency Foreign Interest rate sensitivity rates for both derivative and non-derivative to interest determined based on the exposure The sensitivity analyses below have been held constant the stipulated change taking place at the beginning of the financial year and instruments at the balance sheet date and that have floating rates. period in the case of instruments the reporting throughout year for the profit held constant, the Company’s rates had been 50 basis points higher or lower and all other variables were If interest by £2,000). This is mainly attributable to the (2014: increase/decrease by £14,000 ended 31 January 2015 would increase/decrease rates on its floating rate cash balances. to interest exposure Company’s base rate of 0.5%. This level is is the maximum possible, given the prevailing rates of 0.5% in interest As at 31 January 2015 a decrease possible based on observations of market conditions and historic trends. considered Interest risk profile at the balance sheet date was as follows: assets (comprising cash balances only) of the portfolio of financial rate risk profile The interest NOTES TO THE FINANCIAL STATEMENTS 40

The asset allocation between specific markets can vary from time to time based on the manager’s opinion of the attractiveness of the individual markets. Foreign currency sensitivity There were minimal foreign currency denominated monetary items at the year end. Other price risk Other price risks (ie changes in market prices other than those arising from interest rate or currency risk) may affect the value of the quoted investments. It is the Board’s policy to hold an appropriate spread of investments in the portfolio in order to reduce the risk arising from factors specific to a particular country or sector. The allocation of assets to international markets as detailed on page 6, and the stock selection process both act to reduce market risk. The manager actively monitors market prices throughout the year and reports to the Board, which meets regularly in order to review investment strategy. The investments held by the Company are listed on various stock exchanges worldwide. Other price risk sensitivity If market prices at the balance sheet date had been 15% higher or lower while all other variables remained constant, the return attributable to ordinary shareholders at the year ended 31 January 2015 would have increased/decreased by £27,270,000 (2014: increase/decrease of £24,563,000) and equity reserves would have increased/decreased by the same amount. This level of change is considered to be reasonably possible based on observation of market conditions and historic trends.

(ii) Liquidity risk This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. Liquidity risk is not considered to be significant as the Company’s assets comprise mainly readily realisable securities, which can be sold to meet funding commitments if necessary. (iii) Credit risk This is the risk of failure of the counter party to a transaction to discharge its obligations under that transaction that could result in the Company suffering a loss. The risk is managed as follows:

› investment transactions are carried out with a large number of brokers, whose credit rating is reviewed periodically by the portfolio manager, and limits are set on the amount that may be due from any one broker; and › cash is held only with reputable banks with high quality external credit ratings. None of the Company’s financial assets are secured by collateral. Fair values of financial assets and financial liabilities All financial assets and liabilities of the Company are included in the balance sheet at fair value or a reasonable approximation of fair value with no material difference in the carrying amount.

Note 16 Capital management policies and procedures The Company’s capital management objectives are:

› to ensure that the Company will be able to continue as a going concern; › to maximise the return to its equity shareholders through an appropriate balance of equity capital and debt; and › to limit gearing to 20% of total assets. The Board monitors and reviews the broad structure of the Company’s capital on an ongoing basis. This review includes the nature and planned level of gearing, which takes account of the manager’s views on the market and the extent to which revenue in excess of that which is required to be distributed under the investment trust rules should be retained. The analysis of shareholders’ funds is as follows:

As at As at 31 January 2015 31 January 2014 £000 £000 Called up ordinary share capital 5,224 5,224 Capital redemption reserve 10,793 10,793 Special distributable reserve 114,383 116,249 Capital reserve 47,932 26,228 Revenue reserve 5,619 5,707 Total shareholders' funds 183,951 164,201 OVERVIEW FINANCIAL REVIEW 41 Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). not based on observable asset or liability that are Level 3: inputs for the Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities; (unadjusted) in active markets for identical Level 1: quoted prices (ie as either directly observable for the assets or liability, 1 that are than quoted prices included within Level Level 2: inputs other prices); and from (ie derived prices) or indirectly Since the year end a further 583,970 shares of 5p each have been bought back to treasury for a consideration of £1,054,000. of 5p each have been bought back to treasury Since the year end a further 583,970 shares the main rate of corporation tax 23% to 21%. Furthermore from 1 April 2014 the main rate of corporation tax reduced From on the financial statements following this change in rate of is no impact 1 April 2015. There 21% to 20% from from will reduce corporation tax. Note 18 Post balance sheet events Note 18 Post balance sheet › of £181,798,000 or loss to the value profit held at fair value through financial assets in the form of quoted equities As at 31 January 2015 classified as Level 1) with quoted equities to the value of £163,755,000 in the fair value hierachy (31 January 2014: classified as Level 1 were no as Level 2 or 3). 2 or 3 (31 January 2014: no assets classified assets classified as Level Quoted equities to their quoted bid prices at the determined by reference investments in quoted equities have been The fair value of the Company’s date. reporting stock exchanges. actively traded on recognised Level 1 are Quoted equities included in Fair Value › › Note 17 Fair value hierarchy Note 17 Fair using a fair value hierarchy value measurements to classify fair an entity is required Instruments: Disclosures’ Under FRS 29 ‘Financial levels: shall have the following The fair value hierarchy of the inputs used in making the measurements. the significance that reflects INVESTOR INFORMATION 42

Directors and Advisers Directors Registrars Neil Gaskell (chairman) Capita Asset Services Mike Balfour The Registry David Kidd 34 Beckenham Road Gillian Watson Beckenham Kent BR3 4TU Telephone 0871 664 0300 Investment manager and company secretary www.capitaassetservices.com Martin Currie Investment Management Limited Saltire Court 20 Castle Terrace Bankers Edinburgh EH1 2ES Lloyds Banking Group plc Telephone 0131 229 5252 10 Gresham Street Fax 0131 228 5959 London EC2V 7AE www.martincurrie.com State Street Bank and Trust Company

Martin Currie Investment Management Limited is authorised 20 Churchill Place and regulated by the Financial Conduct Authority. Canary Wharf London E14 5HJ Registered office Martin Currie Global Portfolio Trust plc Custodians Saltire Court State Street Bank and Trust Company 20 Castle Terrace 20 Churchill Place Edinburgh EH1 2ES Canary Wharf Registered in Scotland, registered number 192761 London E14 5HJ

Independent auditors Brokers PricewaterhouseCoopers LLP JPMorgan Cazenove Limited Chartered Accountants and Statutory Auditors 25 Bank Street Atria One Canary Wharf 144 Morrison Street London E14 5SP Edinburgh EH3 8EX Association of Investment Companies (AIC) 9th Floor 24 Chiswell Street London EC1Y 4YY Telephone 020 7282 5555 www.theaic.co.uk

The Company is a member of the AIC (the trade body of the investment company industry).

Financial calendar – key dates 2015/2016

March/April June July Annual results announced Annual general meeting First interim dividend payment date Fourth interim dividend payment date

September October January Half-yearly results announced Second interim dividend Third interim payment date dividend payment date OVERVIEW INVESTOR INFORMATION 43 Investment trust An investment company which is based in the UK and which pay tax on gains meets certain tax conditions so that it doesn’t made within the portfolio. Internal and external AIFM the AIFM of a company may be either Under the AIFM Directive, the company and (a) another person appointed by or on behalf for managing that appointment, is responsible which, through the legal form of the company (an ‘external AIFM’); or (b) where the company permits internal management and the board chooses not to appoint an external AIFM, the company itself (an ‘internal AIFM’). An AIFM will be able to take advantage of the total assets of the companies where lighter touch regulation no it manages do not exceed: (a) f500 million (in cases where leverage is used). leverage is used); or (b) f100 million (where internal will also apply to small companies which are This regime is that AIFMs. The advantage of falling under these thresholds and will apply of the AIFM Directive not all of the requirements However, thus compliance obligations can be reduced. any rights granted under firms will not benefit from sub-threshold the AIFM Directive. Investment company A closed-ended fund which invests in a diversified portfolio of in the investment assets. Investors buy and sell their shares company on a stock exchange. Ex income or ‘xd’, this means that, if you buy theAlso shown as ‘ex div’ declared recently the most receive you won’t today, shares dividend. on stockmarkets, so for being traded all the time are Shares to be a point when buyers needs there administrative reasons the most recently will receive whether they and sellers agree will no purchased when the shares dividend. The point declared is known as the ‘ex dividend date’ the dividend longer receive ‘gone ex dividend’. The share said to have are and the shares dividend to reflect price will normally fall by the amount of the this. most still entitled to the when you’re If you buy the shares being cum dividend, this is known as the shares declared recently dividend. Gearing money to buy more At its simplest, gearing means borrowing to pay back profit assets in the hope the company makes enough and leave something extra for shareholders. the debt and interest well, perform if the investment portfolio doesn’t However, an investment company losses. The more gearing can increase gears, the higher the risk. Glossary of terms Dividend usually paid Dividends are an investment in shares. Income from Dividend or monthly. twice a year but can also be paid quarterly well as rise. income is not guaranteed and may fall as Discount price share by which the as a percentage, The amount, expressed is less than the net asset value per share. Bid price when two prices are The price at which you sell your shares price and will bequoted. This is sometimes shown as the ‘sell’ the lower of the two prices shown. Benchmark against which the performance of an An index or other measure set. or its objectives are is compared investment company will include an explanation of how theThe financial statements over the year andcompany has performed against its benchmark for any under or over performance. the reasons Assets that has value. For investment Anything owned or controlled and securities, property, include shares companies, this might cash, etc. INVESTOR INFORMATION 44

Glossary of terms (cont) Net assets Premium A measure of the size of an investment company. The total The amount, expressed as a percentage, by which the share value of all assets held, less liabilities and prior charges, price is more than the net asset value per share. including income for the current year. Share buybacks NAV per share Describes an investment company buying its own shares and A very common measure of the underlying value of a share in reducing the number of shares in existence. an investment company. Share buybacks can be used to return money to shareholders, In basic terms, the net asset value (‘NAV’) is the value of the but are also used to manage the company’s share price investment company’s assets, less any liabilities it has. The NAV discount. Discounts may reflect an imbalance between the per share is the NAV divided by the number of shares in issue. demand for shares and the number of shares in existence. The This will very often be different to the share price. The hope is that, by reducing the number of shares in existence, the difference is known as the discount or premium. buyback will help to prevent the discount widening or even reduce it. NAV total return performance A measure showing how the NAV per share has performed over Share price a period of time, taking into account both capital returns and The price of a share as determined by the stockmarket. dividends paid to shareholders. If you see a single share price shown, it’s likely that this is the The AIC shows NAV total return based on a hypothetical mid-market price. This is different to the price at which you buy investment of £100. It assumes that dividends paid to and sell the shares, which are known as the bid price (sell) and shareholders are reinvested at NAV at the time the shares are offer price (buy). quoted ex-dividend. NAV total return shows performance which isn’t affected by Treasury shares movements in discounts and premiums. It also takes into account Shares in a company’s own share capital which the company the fact that different investment companies pay out different itself owns and which can be sold to investors to raise new levels of dividends. funds. Treasury shares only come into existence when a company buys Ongoing charges back shares. Instead of cancelling the shares (i.e. they cease to Ongoing charges are the total of the Company’s expenses including exist) they are held ‘in treasury’ by the company and can be sold both the investment management fee (excluding performance fees) at a later date to raise new funds. and other costs expressed as a percentage of NAV.

Ten year record

As at 31 Revenue return Dividend Net asset value (Discount)/ Investments Net assets January per share per share per share* Premium £000 £000

2006 2.51p 2.2p 118.9p (6.8%) 179,207 179,651

2007 2.81p 2.4p 129.9p (8.0%) 195,332 186,398

2008 2.83p 2.6p 137.2p (7.8%) 173,633 187,642

2009 4.1p 3.5p 93.1p (3.5%) 117,919 124,724

2010 2.8p 3.5p 122.2p (7.1%) 135,502 142,716

2011 2.3p 3.5p 135.5p (7.7%) 146,260 147,731

2012 3.9p 3.7p 139.2p (7.3%) 142,886 145,537

2013 4.23p 3.90p 152.6p (3.4%) 158,894 159,399

2014 3.76p 4.00p 157.4p (0.6%) 163,755 164,201

2015 3.92p 4.10p 178.5p 0.6% 181,798 183,951

* Cum income OVERVIEW INVESTOR INFORMATION 45 and

(calls cost 10p per minute plus

.capitaassetservices.com Telephone 0871 664 0300 plus network extras) (calls cost 10p per min to Friday 8:30am – 5:30pm Monday    —     Youinvest (part of AJ Bell) www.youinvest.co.uk Youinvest www.barclaysstockbrokers.co.uk Stockbrokers Barclays www.charles-stanley-direct.co.uk Charles Stanley Direct Hale www.hargreave-hale.co.uk Hargreave HSDL www.halifax.co.uk/sharedealing Idealing www.idealing.com Jarvis www.jarvisim.co.uk Selftrade www.selftrade.co.uk www.share.com Sharecentre Stocktrade www.stocktrade.co.uk www.tdwaterhouse.co.uk TD Waterhouse Trading codes Trading may be asked for these when investing) (You TDIM code: MNP Reuters code: MNP.L SEDOL: 0537241 Other online platforms and stockbroking services Other online platforms and stockbroking services and execution-only stockbroking A number of real-time your portfolio andplatforms allow you to trade online, manage sites do not give you advice, they buy UK listed shares.These ‘wrapper’ sites also offer simply allow you to trade. Many of these such as ISAs, SIPPs and savings plans. products Sites include: › › › › › › › › › › › Capita Asset Services by calling the Capita directly can also buy and sell shares You dealing team on 0871 664 0311. or obtain an tax vouchers request change your address, To holding please contact Capita up-to-date valuation of your share Asset Services on 0871 664 0300 open 8.30am-5.30pm Mon-Fri). network extras, lines are Alternatively log on to www register on the share portal to access full information on your on the share register holding. Online www.capitashareportal.com 24 hour  —       . www.thewma.co.uk Junior ISA Child SIPP First Steps account Investment Dealing Account Select SIPP ISA Select Stocks and Share Contact Details Opening times Change your address Request tax vouchers Valuation voting Online proxy Dividend payment records Register and change bank mandate instructions of dividends for receipt communication shareholder Elect to receive electronically forms Request/download shareholder How to invest The registrars of the Company are Capita Asset Services. You can buy and sell shares directly by calling the Capita Dealing team on by calling the Capita Dealing team directly shares can buy and sell Capita Asset Services. You are of the Company The registrars Shareholder services Shareholder services . For other services you can contact Capita by telephone or online: services you can contact Capita by telephone For other 0870 664 0311. However you chose to invest, please ensure you are aware of any aware you are However you chose to invest, please ensure any advice or investing through charges associated with receiving listed below. providers of the third-party › information: For more www.alliancetrustsavings.com › › › › › ATS provides products to UK private investors, including Stocks products provides ATS centre ISA and SIPPs. Their website also has a research and Share making options before different you can compare where investment decisions. Their trading system i.nvest allows you to invest online, by phone or by mail. in the following shares can invest in the Company’s UK residents products: ATS Alliance Trust Savings (ATS) Alliance Trust Private client stockbrokers If you have a large sum to invest, you may want to contact a portfolio They can manage your entire private client stockbroker. find a and will advise you on your investments. To of shares Management visit the Wealth private client stockbrocker Association: Independent financial advisers number of independent financial advisers are An increasing including investment trusts within their investment an adviser who recommends find for clients. To recommendation . on investment trusts, visit www.unbiased.co.uk Ways to invest in the Company Ways INVESTOR INFORMATION 46

Checking the share price We want to make it easy for you to follow your investment and ensure that you can check the share price in the way that suits you best: Publications Financial Times, The Herald and The Scotsman. Telephone FT Cityline on 09058 171 690 simply say ‘Martin Currie Global Portfolio’ when prompted. Online www.martincurrieglobal.com www.trustnet.com

The Company has its own dedicated website at www.martincurrieglobal.com. This offers shareholders, prospective investors and their advisers a wealth of information about the Company. Updated daily, it includes the following:

› daily prices › monthly update › performance data › research › portfolio information › press releases and articles › the manager’s latest views › annual and half yearly reports

Comprehensive data

Price information – updated daily Latest Company news and announcements

Library of Company documents

Enquiries If you have an enquiry about the Company, please get in touch. 0131 229 5252 I [email protected]. Mail: please refer to our address on the back page of this report

This part of the report has been approved by Martin Currie Investment Management Limited (‘MCIM’), the investment manager of Martin Currie Global Portfolio Trust plc. MCIM is authorised and regulated by the Financial Conduct Authority. The value of shares and the income from them may go down as well as up as a result of market and currency movements. Investors may not get back the amount invested. MCIM is not authorised to give advice and generally provides information on its own services and products. This information is provided for information only and is not an invitation to acquire Martin Currie Global Portfolio Trust plc shares nor is this a personal recommendation to use any source described above. Calls may be recorded. OVERVIEW INVESTOR INFORMATION 47 [email protected]. I Enquiries please get in touch. If you have an enquiry about the Company, 0131 229 5252 on the back page of this report to our address Mail: please refer 48

How to contact us

0131 229 5252 The Chairman c/o company secretary 0131 228 5959 Martin Currie Global Portfolio Trust plc [email protected] Saltire Court 20 Castle Terrace www.martincurrieglobal.com Edinburgh EH1 2ES

Calls to the above may be recorded