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 3 OVERVIEW OVERVIEW Manager 2015 marks Tom Walker’s 15th anniversary as manager (almost the entire life of the Company). Backed by his team of investment professionals, Tom’s stockpicking skills have served the Company well through an eventful period of change, challenge and opportunity. Since 2000, a number of events caused market turbulence including the end of the technology bubble, the attacks of 9/11 that closed US stockmarkets for a week, corporate fraud as exemplified by Enron and Bernie Madoff, the sub-prime mortgage crisis that triggered a global credit crunch in 2008 and rocked markets around the world, ultimately leading to ongoing bank bail-outs, and experimental programmes of quantitative easing. On the flip side of the coin, we have enjoyed the amazing growth of China and India into world financial powers, new frontier markets opening up to investment and some positive periods of sustained returns for stockmarkets. Those who have held their shares for the last 15 years have seen a total return of 195% compared with about 120% in the market and around 40% which would have been earned from interest on bank deposits. Global investment offers great long-term opportunities but also short-term risks, and having such an experienced manager as Tom in place is a distinctive strength of the Company. Investment Management Update Legg Mason During the year Legg Mason (LM) completed the purchase of Martin Currie. Martin Currie is now an independently managed investment affiliate of LM and becomes the flagship international equity business within the LM Group. Alternative Investment Fund Managers Directive (AIFMD) This European Union directive introduced additional regulatory oversight of the investment fund industry last year aimed at improving investor protection for funds managed and/or marketed in the European Union. On 16 July 2014, the Company obtained approval to register as a small UK alternative investment fund manager (AIFM) under the AIFMD. The Board believes this structure is the most appropriate and lowest-cost option of implementing this regulation for the Company. Outlook 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 ongoing efforts of central banks to avoid deflation and stimulate their economies. The continued strength of the US economy is a particularly important element in this outlook as are the prospects for growth in Asia. There will also undoubtedly be challenges, perhaps in Europe or the Middle East, and the Board believes that the strategy of actively selecting the best growth stocks from among the world’s larger companies provides a sound basis for continuing the positive long-term performance of your investment in the Company. New tax year As the new tax year begins in April, I would like to remind you that the Company’s shares qualify for tax efficient wrapper products like individual savings account (ISA) and self-invested personal pension (SIPP) products, as well as many other investment wrappers that can be used, including those designed for children. Updates and resources The Company’s website at www.martincurrieglobal.com is a comprehensive source of information and includes regular manager updates and outlook videos, monthly performance factsheets and independent research reports. I thank you for your continued support. Please contact me if you have any questions regarding your Company; contact details can be found at the back of this report. Neil Gaskell 30 March 2015 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.