First State Investments ICVC

368  Download (0)

Full text

(1)

First State Investments ICVC

Annual Report

(2)

Page No. 1 1 1 3 4 4 5 6 8 10

Asia Pacific equity funds 17

32 49 64 79

Emerging market bond funds 91

114

Emerging market equity funds 133

148 164

Global equity funds 181 196 211 227 240 255 Infrastructure funds 271

Latin America funds 288

302

Global Interest rates & Currency Funds Financial Statements

Notes to the Financial Statements

Investment review* and financial statements for:

First State Global Emerging Markets Sustainability Fund First State Global Agribusiness Fund

First State Global Emerging Markets Leaders Fund First State Greater China Growth Fund

First State Indian Subcontinent Fund First State Asia Pacific Sustainability Fund Report of the Authorised Corporate Director*

Independent auditor's report

Statement of Depositary's responsibilities and report of the Depositary to the shareholders of First State Investments ICVC for the year ended 31 July 2015

Contents

Authorised Corporate Director's report*

Statement of the Authorised Corporate Director's responsibilities in respect of the financial statements of the Company* Information about the Company*

Changes to the prospectus and instrument of incorporation * The Investment Manager

First State Global Emerging Markets Fund First State Emerging Markets Bond Fund

First State Emerging Markets Local Currency Bond Fund First State Asia Pacific Fund

First State Asia Pacific Leaders Fund

First State Global Listed Infrastructure Fund First State Worldwide Leaders Fund First State Worldwide Equity Fund

Multi-assets funds

First State Diversified Growth Fund First State Latin America Fund First State Global Resources Fund

First State Global Interest Rates and Currency Fund First State Worldwide Sustainability Fund

(3)

Contents

Property securities funds 331

345

362 363

* Collectively, these items, along with the investment reviews disclosed within the individual sub-fund reports, comprise the Authorised Corporate Director's report for the purposes of the rules contained in the Financial Services Authority’s Collective Investment Schemes Sourcebook.

Corporate directory*

First State Asian Property Securities Fund

About First State Investments

(4)

• •

We are pleased to present the Annual Report and Financial Statements for First State Investments ICVC (the "Company"), which provides information on each of the 21 sub-funds of the Company (each a "Fund") for the year ended 31 July 2015. The report of the Company's Auditors which is unqualified is set out on page 6.

Authorised Corporate Director's report

Changes to the prospectus and instrument of incorporation of First State Investments ICVC

since 31 July 2014

In this document we provide a review of selected financial markets followed by detailed information on each of the Funds within the Company. This information includes an investment report, performance summary, top 10 holdings, country breakdowns, and financial statements of each sub-Fund.

Information about the Company

The Company is an open-ended investment company ("OEIC") with variable capital. The Company is structured as an umbrella company authorised as a UCITS scheme and operates under chapter 5 of the Collective Investment Schemes Sourcebook (the “Sourcebook”).

Different Funds may be established from time to time by First State Investments (UK) Limited, the authorised corporate director of the Company (the “Authorised Corporate Director” or the “ACD”) with the approval of the Financial Conduct Authority (the “FCA”) and the agreement of the Company’s depositary, National Westminster Bank plc. Each Fund may issue different classes of share and within each class there may be different types of share. Further classes and types of share may be established from time to time by the ACD with the approval of the FCA and the agreement of the Depositary. On the introduction of any new Fund or class or type of share, a revised prospectus will be prepared setting out the relevant details of each Fund or class.

During the year and up to the date of this report, the following changes were made to the Company which were reflected in the Prospectus and/or Instrument of Incorporation:

o the launch of a new fund, the First State Global Interest Rates and Currency Fund the base currency of which is US Dollars;

Each Fund is invested as if it were individually authorised as the type of scheme known as a UCITS scheme, as specified in the Sourcebook. For investment purposes, the assets of each Fund will be treated as separate from those of every other Fund and will be invested in accordance with the investment objective and investment policy applicable to that Fund. The shareholders are not liable for the debts of the Company. A shareholder is not liable to make any further payment to the Company after paying the purchase price of Shares. Whilst the provisions of the OEIC Regulations provide for segregated liability between Funds, these provisions are subject to the scrutiny of the courts and it is not free from doubt, in the context of claims brought by local creditors in foreign courts or under foreign law contracts, that the assets of the Fund will always be ‘ring fenced’ from the liabilities of other Funds of the Company.

The FCA approved an update to the Prospectus on the 3 September 2014. The main updates to the Prospectus were: o the inclusion of Gross Share Classes, these are not eligible for United Kingdom investors.

o the change of address of the Company;

o confirmation that subscriptions and redemptions should be sent to the Registrar and not the ACD;

o amendments to the Fees and Expenses section making it more transparent to the investor what the fees and expenses are for;

o the inclusion of a new risk, the ‘Additional Derivatives Risk’. This is applicable to the First State Global Interest Rates and Currency Fund; o the inclusion of a new generic risk, the ‘Fixed Income Transferable Securities’ risk that is applicable to all funds;

o minor amendments to the ‘Derivatives Risk’ that is applicable to all funds; o new inclusions and amendments to the various sections within ‘Taxation’; o inclusion of a new section in Appendix I on leverage; and

o amendments in Appendix III covering the First State Global Interest Rates and Currency Fund.

The FCA approved an update to the Instrument of Incorporation on the 3 September 2014. The main update was the inclusion of the First State Global Interest Rates and Currency Fund.

(5)

(continued)

Authorised Corporate Director's report

• •

The FCA approved an update to the Prospectus and the Instrument of Incorporation on the 20 April 2015. The main updates to the Prospectus were:

o clarification on the concept of “Currency Hedged Share Class” used by the Company, and consequent update of risk factor R (“Currency o minor amendments to the ‘Taxation’ section; and

o minor amendments to Appendix III with regard to investment in collective investment schemes.

o insertion of new language in relation to the, “Protection of Client Money”; o update of the Risk Factor A13 entitled “Derivatives Risk”;

Investment Manager or of the Sub-Investment Managers;

o amendments to Appendix II (“Eligible Securities and Derivatives Markets”) to (i) reorder the eligible markets list alphabetically, (ii) reflect o update of risk factors D (“China Market Risk”) and E (“Investment in China A Shares Risk”) in relation to the implementation of the

State Global Emerging Markets Fund, First State Global Emerging Markets Leaders Fund, First State Global Emerging Markets Sustainability o the inclusion of new Class Z Shares, this class is reserved for and is only available for subscription by institutional investors or clients of the o the amendment of the Gross classes definition;

The FCA approved an update to the Prospectus on the 2 March 2015. The main update to the Prospectus was a minor amendment made to the Prospectus to reflect the sub-delegation arrangement between the Investment Manager and First State Investments (Singapore) in regards to the First State Global Interest Rates and Currency Fund.

o update of sections “Material Contracts” (in “General Information”) and “The Investment Manager” (in “Management and

Fund) and (iv) add the Ghana Stock Exchange for the First State Global Emerging Markets Sustainability Fund; Hedged Share Classes Risk”);

investment in China A Shares via the QFII regime for certain sub-funds of the Company;

to the Currency Hedged Share Classes, (ii) clarify the wording on global exposure and leverage, (iii) update the performance figures, (iv) the references to global exposure and leverage in certain sub-funds’ appendices;

o amendments to Appendix III (“Investment Management and Borrowing Powers of the Company”) to allow investment in collective The FCA approved an update to the Prospectus on the 10 December 2014. The main update to the Prospectus was a minor correction to the First State Global Interest Rates and Currency Fund.

The FCA approved an update to the Prospectus on the 28 October 2014. The main updates to the Prospectus were:

o the Instrument was amended to reflect the clarification of the concept of “Currency Hedged Share Class” that was inserted in the investment schemes to a level above 10% and minor other updates in line with COLL;

place of business, performance figures and the update of the biography of one of the ACD’s directors; and o minor amendments to the ‘Fees and Expenses’ section;

o minor other updates (e.g. new definition of “Second Scheme”, updates of the Registrar’s principal place of business, the Auditor’s principal Administration”) in order to better reflect the ACD’s approach;

The FCA approved an update to the Prospectus and the Instrument of Incorporation on the 5 May 2015. The main updates to the Prospectus were:

o addition of certain risk factors for certain sub-funds of the Company, omitted previously in error;

o amendments to Appendix I (“Investment Objectives, Policies and Other Details of the Funds”) in order to (i) reflect the clarifications relating

the renaming of the International Capital Market Association to Xtrakter, (iii) add the Nigerian Stock Exchange for several sub-funds (First

o addition of four new sub-funds, the “First State Diversified Growth Fund”, the “First State Asia All-Cap Fund”, the “First State Asia Focus o related amendments in relation to the four new sub-funds;

(6)

(continued)

Authorised Corporate Director's report

A copy of the Prospectus is available on request.

o The Instrument was amended to reflect the addition of the new sub-funds.

First State Investment Management (UK) Limited, the investment manager of the Company (the “Investment Manager”) has delegated the investment management of (a) the First State Global Resources Fund, the First State Asian Property Securities Fund, the First State Global Property Securities Fund, the First State Global Listed Infrastructure Fund and the First State Global Agribusiness Fund to Colonial First State Asset Management (Australia) Limited, a company registered in Australia, by agreement dated 8 September 2006 as amended (b) the First State Greater China Growth Fund to the First State Investments (Hong Kong) Limited, a company registered in Hong Kong, by agreement dated 24 October 2003 and (c) the First State Global Emerging Markets Fund, the First State Global Emerging Markets Leaders Fund, the First State Indian Subcontinent Fund, the First State Latin America Fund and the First State Worldwide Equity Fund to First State Investments (Singapore), a company registered in Singapore, by agreement dated 7 January 2013 (as amended).

o Minor typographical updates for clarification; and

The Investment Manager

o correction of a typographical error which stated the minimum initial subscription of the First State Indian Subcontinent Fund Class B GBP shares as £000k rather than the correct £500k;

All of the sub-funds have been prepared on a going concern basis with the exception of the First State Global Interest Rates and Currency Fund which the Authorised Corporate Director intends to terminate within one year of the date of approval of the financial statements and therefore the financial statements of this Fund have been prepared on a basis other than going concern. In applying this basis of preparation, the assets and liabilities of this Fund continue to be stated at their fair values which materially equate to their residual values. No adjustments were necessary in the Fund's financial statements to reduce assets to their realisable values, to provide for liabilities arising from the termination and to reclassify fixed assets and long-term liabilities as current assets and liabilities.

The FCA approved an update to the Prospectus on the 17 June 2015. The main update to the Prospectus was an amendment of the leverage in the First State Diversified Growth Fund, increasing it from 105% to 500%.

We hope that you find this report informative and that it answers any questions you may have about your investment with First State Investments. If you have any additional queries in relation to your investment, or one of our Funds, please contact our Client Services team on 0800 587 4141(+44 131 525 8870 if calling from outside the UK).

Also, a copy of the long form Annual Report and Accounts may be obtained by calling our Client Services team or by writing to them at Client Services, First State Investments (UK) Limited, 23 St Andrew Square, Edinburgh EH2 1BB.

(7)

● ● ● ● ● ● ● 15 October 2015

keep proper accounting records and to manage the Company in accordance with the Sourcebook, the Instrument of Incorporation and the prospectus. The ACD is responsible for taking reasonable steps for the prevention and detection of fraud and other irregularities.

First State Investments (UK) Limited First State Investments (UK) Limited

Director 15 October 2015

J Breyley G Ferguson

Report of the Authorised Corporate Director

This report has been approved by the Authorised Corporate Director, First State Investments (UK) Limited, and signed on its behalf in accordance with the requirements of the OEIC Regulations and the Sourcebook.

Director

make judgements and estimates which are reasonable and prudent;

comply with the disclosure requirements of the Statement of Recommended Practice relating to Financial Statements of Authorised Funds issued by the Investment Association (IA) formerly know as the Investment Management Association (IMA) in October 2010 ("the IMA SORP 2010");

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in operation; and

comply with the prospectus, the Instrument of Incorporation and applicable accounting standards;

keep proper accounting records which enable it to demonstrate that the financial statements as prepared comply with the above requirements;

In preparing the Financial Statements the ACD is required to:

The Open-Ended Investment Companies Regulations 2001 (SI 2001/1228, as amended) (the “OEIC Regulations”) and the Sourcebook require the ACD to prepare financial statements for each annual and semi-annual accounting period which give a true and fair view of the financial position of the Company and of its net revenue and the net capital gains on the property of the Company for the year.

select suitable accounting policies and then apply them consistently;

Statement of the Authorised Corporate Director's responsibilities

in respect of the financial statements of the Company

(8)

(I)

(II)

Edinburgh

has carried out the issue, sale, redemption and cancellation, and calculation of the price of the Company’s shares and the application of the Company’s revenue in accordance with the COLL, the OEIC Regulations, the Instrument of Incorporation and Prospectus of the Company and, where applicable,

has observed the investment and borrowing powers and restrictions applicable to the Company.

Statement of Depositary's responsibilities and report of the Depositary to the shareholders of First

State Investments ICVC ('the Company') for the year ended 31 July 2015

The Depositary is responsible for the safekeeping of all custodial assets of the Company which is entrusted to it, for verifying ownership and maintaining a record of all other assets of the Company, and for the collection of income that arises from those assets.

It is the duty of the Depositary to take reasonable care to ensure that the Company is managed in accordance with the Financial Conduct Authority's ('FCA') Collective Investments Schemes Sourcebook ('COLL') the Open-Ended Investment Companies Regulations 2001 (S1 2001/2008) ('OEIC Regulations'), the Company’s Instrument of Incorporation and Prospectus, and where applicable, the FCA's Investment Funds Sourcebook (FUND'), in relation to the pricing of, and dealings in shares in the Company; the application of revenue of the Company; and the investment and borrowing powers applicable to the Company.

Having carried out such procedures as we consider necessary to discharge our responsibilities as Depositary of the Company, it is our opinion, based on the information available to us and the explanations provided, that in all material respects the Company, acting through the Authorised Corporate Director:

15 October 2015

(9)

● ● ● ● ● ● ● ● ●

The financial statements of First State Investments ICVC (the 'Company'), which are prepared by First State Investments (UK) Limited (the “Authorised Corporate Director”), comprise:

This opinion is to be read in the context of what we say in the remainder of this report. Our opinion

In our opinion the financial statements, defined below:

In applying the financial reporting framework, the Authorised Corporate Director has made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), the Statement of Recommended Practice ‘Financial Statements of Authorised Funds’ issued by the Investment Management Association (the “Statement of Recommended Practice for Authorised Funds”), the Collective Investment Schemes sourcebook and the Instrument of Incorporation.

In forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosures made in note 1 to the financial statements concerning the basis of accounting for First State Global Interest Rates and Currency Fund, for which the Authorised Corporate Director has confirmed their intention to terminate within one year of the date of approval of the financial statements. Accordingly, the going concern basis of accounting is no longer appropriate and the financial statements for this Fund have been prepared on a basis other than going concern as described in note 1 to the financial statements. No adjustments were necessary in the Fund's financial statements to reduce assets to their realisable values, to provide for liabilities arising from the termination and to reclassify fixed assets and long-term liabilities as current assets and liabilities.

the distribution tables.

Report on the financial statements

What we have audited

the aggregated statement of total return of the Company for the year then ended;

the notes to the Company’s financial statements and each of the Company’s Funds, which include a summary of significant accounting policies and other explanatory information; and

Independent Auditor's report to the Shareholders of First State Investments ICVC

give a true and fair view of the financial position of the Company and each of the Funds as at 31 July 2015 and of the net revenue/(expenses) and the net capital gains/(losses) of the scheme property of the Company and each of the Funds for the year then ended; and

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, the Statement of Recommended Practice for Authorised Funds, the Collective Investment Schemes sourcebook and the Instrument of Incorporation.

the aggregated balance sheet of the Company as at 31 July 2015;

the balance sheets as at 31 July 2015 together with the statements of total return and statements of changes in net assets attributable to shareholders of each of the Company’s Funds;

the aggregated statement of change in net assets attributable to shareholders of the Company for the year then ended; Emphasis of Matter - Basis of preparation

What an audit of financial statements involves

whether the accounting policies are appropriate to the Company’s and each of the Company’s Fund's circumstances and have been consistently applied and adequately disclosed;

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) (“ISAs (UK & Ireland)”). An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of:

(10)

(continued)

Independent Auditor's report to the Shareholders of First State Investments ICVC

● ● ● ● (a) (b)

Opinions on matters prescribed by the Collective Investment Schemes sourcebook

In our opinion:

Other matters on which we are required to report by exception

Propriety of accounting records and information and explanations received

we have obtained all the information and explanations we consider necessary for the purposes of the audit; and

the information given in the Authorised Corporate Director’s Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Under the Collective Investment Schemes sourcebook we are required to report to you if, in our opinion: proper accounting records have not been kept; or

the financial statements are not in agreement with the accounting records and returns. We have no exceptions to report arising from this responsibility.

Responsibilities for the financial statements and the audit

Our responsibilities and those of the Authorised Corporate Director

As explained more fully in the Authorised Corporate Director’s Responsibilities Statement set out on page 4, the Authorised Corporate Director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and ISAs (UK & Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

This report, including the opinions, has been prepared for and only for the Company’s members as a body in accordance with paragraph 4.5.12 of the Collective Investment Schemes sourcebook as required by paragraph 67(2) of the Open-Ended Investment Companies Regulations 2001 and for no other purpose.

We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

PricewaterhouseCoopers LLP

Chartered Accountants & Statutory Auditors Edinburgh

15 October 2015

Notes:

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The maintenance and integrity of the Company website is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were initially presented on the website.

(11)

Notes £'000 £'000 £'000 £'000

Net capital gains 2 710,551 478,138

Revenue 3 354,970 311,246 4 (183,576) (176,312) 6 (41) (39) 171,353 134,895 5 (19,744) (28,002) 151,609 106,893 862,160 585,031 6 (175,145) (135,219) 687,015 449,812 £'000 £'000 £'000 £'000 15,144,878 16,121,770 - 16,858 2,249,128 1,565,661 (2,492,459) (3,129,205) (243,331) (1,563,544) 2,028 1,945 - (558) 687,015 449,812 152,558 118,789 1 -2,089 (194) 15,745,238 15,144,878

Assets transferred from OEICs*

31 July 2014 31 July 2015

Unclaimed distributions

Opening net assets attributable to shareholders Amounts receivable on issue of shares

Dilution adjustment Stamp duty reserve tax

Less: Amounts payable on cancellation of shares

Movement in currency adjustment on consolidation

Change in net assets attributable to shareholders from investment activities Retained distribution on accumulation shares

Closing net assets attributable to shareholders

*Relating to the transfer of assets from an external party.

for the year ended 31 July 2015

Finance costs: Distributions and equalisation

Aggregated Statement of change in net assets attributable to shareholders

Expenses Income:

Change in net assets attributable to shareholders from investment activities Finance costs: interest

Net revenue before taxation Taxation

Net revenue after taxation

Total return before distributions and equalisation

Aggregated Statement of total return

31 July 2015 31 July 2014

(12)

31 July 2015 31 July 2014 Notes £'000 £'000 14,613,630 14,242,225 8 159,456 130,602 9 1,135,085 900,006 1,294,541 1,030,608 15,908,171 15,272,833 Derivative liabilities (919) (687) 10 (147,770) (115,866) (301) (875) (13,943) (10,527) (162,014) (127,268) (162,933) (127,955) 15,745,238 15,144,878 Bank overdrafts Creditors

Cash and bank balances Total other assets Total assets Liabilities

Aggregated Balance sheet

as at 31 July 2015

Debtors

Notes to the Aggregated financial statements are on pages 10 to 16.

Total liabilities

Distribution payable on income shares

Net assets attributable to shareholders Total other liabilities

Portfolio of investments Assets

(13)

1. (a) (b) (c) (d) (e)

Dividends from the UK Real Estate Investment Trusts ("UK REITs") are recognised as distributable revenue when the securities are quoted ex-dividend.

Gains and losses, including exchange differences in the valuation of investments held at the balance sheet date, including unrealised exchange differences, are treated as capital.

Distribution policy

The whole of the Fund’s revenue after expenses must be distributed at the end of its financial year. Interim distributions will usually be for the whole of the revenue, after charging expenses determined at the end of the interim accounting period. The Authorised Corporate Director may, however, in exceptional circumstances distribute a lesser amount, for the interim period.

Dividends received from UK REITs are split into PID (Property Income Distributions) and Non-PID components for tax purposes. Revenue Dividends from US Real Estate Investment Trusts ("REITs") are recognised as distributable revenue when the securities are quoted ex-dividend. On receipt of the capital/revenue split in the following calendar year, the allocation of the dividend is adjusted within the financial statements. Exchange rates

All the other Funds make dividend distributions.

Dividends on equities are recognised when the security is quoted ex-dividend. Other revenue is accounted for on an accruals basis. UK dividends are shown net of tax credits.

All of the sub-funds have been prepared on a going concern basis with the exception of the First State Global Interest Rates and Currency Fund which the Authorised Corporate Director intends to terminate within one year of the date of approval of the financial statements and therefore the financial statements of this Fund have been prepared on a basis other than going concern. In applying this basis of preparation, the assets and liabilities of this Fund continue to be stated at their fair values which materially equate to their residual values. No adjustments were necessary in the Fund’s financial statements to reduce assets to their realisable values, to provide for liabilities arising from the termination and to reclassify fixed assets and long-term liabilities as current assets and liabilities.

as at 31 July 2015

Accounting and distribution policies

Notes to the Aggregated Financial Statements

Basis of accounting

The financial statements have been prepared under the historical cost basis, as modified by the revaluation of investments. The financial statements have adopted the principles of theStatement of Recommended Practice for the Financial Statements of UK Authorised Funds

issued by the Investment Association (IA), formerly known as the Investment Management Association (IMA) in October 2010, (the "IMA SORP 2010").

Basis of valuation of investments

Over the Counter (OTC) derivatives (including cross currency swaps) are held at fair value.

The value of the Funds as at 31 July 2015 was calculated using the bid market value of investments as at 12:00 midday on 31 July 2015, net of any accrued interest. Investments for which published market values are not available are included at the Authorised Corporate Director’s valuation.

Open forward currency contracts are shown in the portfolio statement and are valued using quoted forward rate.

Recognition of revenue

Emerging Markets Bond Fund, Emerging Markets Local Currency Bond Fund and Global Interest Rates and Currency Fund satisfied the qualifying investments test of Section 19 The Authorised Investment Funds (Tax) Regulations 2006 (S2006/964) throughout the period. All distributions made are therefore made as interest distributions.

Amounts in overseas currencies are translated at the exchange rates ruling at the close of business on 31 July 2015. Transactions denominated in foreign currencies are converted to sterling at the exchange rate ruling at the date of the transaction.

(14)

(continued) as at 31 July 2015

Notes to the Aggregated Financial Statements

(f) (g) (h) (i) (a) (b) (c) (j)

SDRT is charged at a maximum of 0.5% of the value of shares redeemed. Although the Authorised Corporate Director has the power to impose SDRT at the time of the share transaction it is not the Authorised Corporate Director’s policy to impose the charge to shareholders at that point. Instead, the SDRT will be charged by the Depositary to the Fund. However, in certain circumstances the Authorised Corporate Director does reserve the right at the time of dealing to charge shareholders. The SDRT is either reduced or does not apply if the Fund holds overseas investments or certain other classes of securities.

For example:

on a Fund experiencing net purchases (ie purchases less redemptions) as this could lead to trading which results in a dilutive effect; Taxation

Provision is made for corporation tax at the current rate on the excess of taxable revenue over allowable expenses. UK dividend revenue is disclosed net of any related tax credits. Overseas dividends are disclosed gross of any foreign tax suffered, the tax element being separately disclosed in the taxation note.

On 1st February 2005 single swinging pricing was adopted for the Funds of the Company. The ACD reserves the right at its sole discretion to impose a dilution adjustment.

Dilution adjustment

Stamp duty reserve tax (SDRT)

on a Fund experiencing net redemptions (ie redemptions less purchases) as this could lead to trading which results in a dilutive effect; and Equalisation applies only to shares purchased during the distribution period (group 2 shares). It is the average amount of revenue included in the purchase price of all group 2 shares and is refunded to holders of these shares as a return of capital. Being capital repayment, it is not liable to income tax but must be deducted from the cost of the shares for capital gains tax purposes.

Equalisation

See the prospectus for full details.

All expenses, other than those relating to transaction fees and stamp duty reserve tax, are charged against the revenue property of the Fund. In the case of First State Asian Property Securities Fund, Global Property Securities Fund, Global Listed Infrastructure Fund, Emerging Markets Bond Fund and Emerging Markets Local Currency Bond Fund, all expenses are borne by the capital property of the Fund for distribution purposes. Management, registrar and dealing fees are charged directly to the share classes to which they relate. Other expenses are charged on a proportional basis.

where there may be a dilutive effect which, in the opinion of the ACD requires the application of a dilution adjustment in the interests of existing/continuing shareholders and potential shareholders.

Applying effective yield to the revenue calculation may result in either higher or lower revenue depending whether funds hold more bonds purchased at a discount or purchased at a premium. Where the funds hold more bonds purchased at a discount than at a premium, income will be higher.

Where the full initial charge is levied on investment into any fund that is soft closed (soft closed meaning that the fund can still be accessed by investors, however, a charge is levied in an attempt to control the size of a fund by discouraging inflows) in the interests of protecting existing investors’ returns, the Investment Manager has paid this in to the relevant fund. This is recognised on a cash basis for the individual share classes of the soft closed funds. Prior to it being paid into the fund, the Investment Manager will exercise discretion on whether to donate some or all of this revenue to charity or reimburse back to the funds for the benefit of the existing shareholders.

Treatment of expenses

Tax is calculated using the marginal basis i.e. the tax effect of revenue and expenditure is allocated between capital and income on the same basis as the particular item to which it relates. Deferred taxation is provided for on all timing differences that have originated but not reversed at the balance sheet date. Deferred taxation is not recognised on permanent differences. Any liability to deferred tax is provided at the average rate of tax enacted, or substantively enacted. Deferred tax assets are only recognised where it is more likely than not that there will be suitable taxable profits against which the future reversal of underlying timing differences can be deducted. Deferred tax assets and liabilities are not discounted to reflect the time value of money. Withholding tax on accrued overseas dividends is netted off against accrued revenue in the debtors note.

Prior to 30 March 2014 SDRT was charged at a maximum of 0.5% of the value of the shares redeemed. From 30 March 2014, no SDRT is charged on the surrender of shares in each Fund, with the exception of surrenders in respect of which a shareholder receives a non-pro rata in specie redemption resulting in a transfer of underlying assets. In this instance, the SDRT will be a liability of the recipient of the underlying assets.

(15)

(continued) as at 31 July 2015

Notes to the Aggregated Financial Statements

(k)

(l)

(a) (b) (c)

assets and liabilities, including net assets attributable to shareholders, are translated at the closing rate at the balance sheet date;

proceeds from subscriptions and amounts paid on redemption of shares are translated at average rates, which approximate the rates prevailing at the dates of the transactions; and

income and expenses are translated at average exchange rates. Other matters

Where the transactions are used to protect or enhance investments, the gains/losses are treated as capital and included within gains/losses on investments in the Statement of total return. Any open positions in these types of transactions at the year end are included in the Balance sheet at their mark to market value.

Foreign currency translation

Items included in the Company’s financial statements are measured using the primary economic environment in which it operates (the “functional currency”). The functional currencies of each Fund are GBP with the exception of First State Emerging Markets Local Currency Bond Fund and First State Global Interest Rates and Currency Fund which have adopted USD as their functional currencies.

The Company has adopted GBP as the presentation currency for the Company as a whole. The Company’s results and financial position are translated from the respective Fund's functional currency to the Company’s presentation currency, as follows:

Derivative financial instruments

The treatment of the returns on forward currency contracts depend upon the nature of the transaction. Where these transactions are used to protect or enhance revenue, the revenue and expenses are included within net revenue in the Statement of total return.

A number of the ICVC Funds are in the process of reclaiming tax, retrospectively for the last 5 years, with the local tax authorities in France, Taiwan and Belgium. On receipt, these amounts will be treated as windfall amounts in to the Funds and will form part of any distributable income. During the financial period, four sub-funds (Indian Subcontinent/ Asia Pacific Sustainability/ Asia Pacific and GEM Sustainability) in the Company received assessments from the Indian tax authorities regarding Minimum Alternative Tax (‘MAT’). These assessments were appealed, as the Company believes MAT should not apply to foreign portfolio investors/ foreign institutional investors with no permanent establishment in India. In September 2015, the Indian Government released a statement agreeing that Indian MAT should not apply to investors such as the Company and that the Government will amend legislation or issue a circular to reflect this. No provision for MAT has been recognised in the NAV of any of the four sub-funds.

High Court claim

In December 2006, the European Court of Justice found that the taxation by HMRC of portfolio dividends received from entities situated in EU/EEA countries prior to 1 July 2009 was discriminatory. In addition the same court found in November 2012 that the differing taxation of UK and foreign dividends (both from EU member states and third countries) is contrary to EU law. Judgement, however, is still to be given in the UK courts in respect of the test case, the Franked Income Investment Group Litigation order. The Company has made claims against HMRC to recover tax paid in the circumstances outlined above, however it should be noted that the interest which each sub fund has in these claims has not been recognised in the financial statements as the timing and amount of any benefit is uncertain. In the event claims are successful, any monies awarded by the court will be paid to the relevant funds as a windfall to those shareholders who remain in the sub-fund at the date of payment of the claims.

Foreign retrospective tax claims Retail distribution review

Following the Financial Conduct Authority's recent “Retail Distribution Review” a total of 5,082 conversions were made from A to B share classes for an aggregate amount of approximately £1,634.2 million across all Funds of First State Investments ICVC during the period 1 August 2014 to 31 July 2015 (1 August 2013 to 31 July 2014 4,940 conversions and £944.9 million).

(16)

2. 31 July 2015 31 July 2014 £'000 £'000 691,445 539,129 (424) (2) (9,127) 1,804 28,657 (62,793) 710,551 478,138 3. 31 July 2015 31 July 2014 £'000 £'000 20,214 19,744 (156) 1,748 292,179 256,756 194 180 100 66 8,471 5,387 - 2,565 17,724 10,896 715 589 1,208 633 5,661 2,861 5,251 5,411 (81) (2) 3,470 4,412 1 -19 -354,970 311,246 4. 31 July 2015 31 July 2014 £'000 £'000 171,755 165,252 (4) (22) 171,751 165,230 1,860 2,063 178 188 3,131 2,850 4,894 3,777 1,762 2,204 9,965 9,019 183,576 176,312 Other expenses: Audit fee

†Other expenses includes £200,373 (31/07/14: £145,540) paid to PwC for Non-audit services rendered in relation to tax. Registrar fees

for the year ended 31 July 2015

Notes to the Aggregated Financial Statements

(continued)

Net capital gains

The net capital gains during the year comprise:

Safe custody charges Other expenses†

*Prior year figures have been reanalysed to reclass revenue from overseas REITs and bank deposits.

ACD's periodic charge rebate

Property revenue from UK REITs - Non PID Non-derivative securities

Payable to the ACD, associates of the ACD, and agents of either of them: ACD's periodic charge

Currency hedge gains/(losses) Front end load income Swap Income

Total expenses Derivative contracts

Revenue

Forward foreign exchange currency contracts

Overseas scrip dividends Currency gains/(losses) Net capital gains

Dividends from UK companies Overseas taxable revenue*

Property revenue from UK REITs - PID Overseas non-taxable revenue

UK scrip dividends

Property revenue from overseas REITs*

Class action

Expenses

Distributions from Regulated Collective Investment Schemes: Offshore distribution non taxable

Total revenue

Interest on capital revenue from Brazilian companies Interest from bank deposits*

Interest from government and fixed interest securities

Payable to the Depositary, associates of the Depositary, and agents of either of them: Depositary's fees

(17)

for the year ended 31 July 2015

Notes to the Aggregated Financial Statements

(continued)

5. 31 July 2015 31 July 2014 £'000 £'000 (a) 225 129 (225) (129) 13,517 15,643 6,234 12,334 3 10 3 6 - 2 19,757 27,995 (13) 7 (13) 7 19,744 28,002 (b) 171,353 134,895 34,268 26,978 (4,042) (3,948) (3,543) (2,690) (58,595) (51,507) (225) (129) 71 (61) 33,275 32,011 13,517 15,643 (876) (404) 1 -- 2 (314) (237) 3 6 (20) (13) 6,234 12,334 3 10 19,757 27,995

Taiwan capital gains tax

OEICs are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation.

Taiwan capital gains tax Taxation

Deferred taxation Indian capital gains tax

Indian capital gains tax

Movement in excess management expenses Factors affecting current tax charge for the year:

Adjustments in respect of prior years

Brazilian IOF tax

Irrecoverable overseas tax Corporation tax

The tax assessed for the year is lower than (2014: higher than) the standard rate of corporation tax in the UK for an OEIC of 20% (2014: 20%). The differences are explained below:

Total current tax (note 5b) Double tax relief

Adjustments in respect of prior years

UK dividends* Brazilian IOF tax

Total taxation

Expenses not deductible for tax purposes Overseas tax expensed

Irrecoverable overseas tax

Corporation tax of 20% (2014: 20%) Analysis of charge in year:

Double tax relief

Current tax charge for year (note 5a) Tax deductible interest distributions Net revenue before taxation

Non taxable scrip dividends* Effects of:

Overseas non-taxable revenue*

*As an authorised OEIC these items are not subject to corporation tax.

Property revenue from UK REITs - Non PID Total deferred tax (note 5c)

(18)

for the year ended 31 July 2015

Notes to the Aggregated Financial Statements

(continued)

6.

Distributions and equalisation and interest

31 July 2015 31 July 2014 £'000 £'000 47,362 35,491 126,222 98,760 1,057 566 174,641 134,817 7,782 6,105 (7,278) (5,703) 175,145 135,219 41 39 175,186 135,258 7. 31 July 2015 31 July 2014 £'000 £'000 151,609 106,893 2,010 1,353 782 1,510

Expenses charged to capital* 15,243 13,751

Tax relief on expenses charged to capital (739) (639)

Taiwan capital gains tax* 3 7

Indian capital gains tax 6,234 12,334

Brazilian IOF tax 3 10

175,145 135,219 8. 31 July 2015 31 July 2014 £'000 £'000 96,061 34,391 27,996 61,567 33,747 33,194 (1) (1) 1,654 1,440 (1) 11 159,456 130,602 9. 31 July 2015 31 July 2014 £'000 £'000 1,134,236 900,006 849 -1,135,085 900,006

ACD expenses recoverable

Movement between net revenue and net distributions

Details of the distribution per share are set out in the distribution tables in the individual sub-funds' financial statements.

Net revenue after taxation Final distributions

Add: revenue deducted on cancellation of shares

Debtors

Accrued revenue

Amounts receivable for issue of shares Sales awaiting settlement

Total debtors Revenue deficit Interim distributions

Net distributions for the year Interest from bank deposits

Deduct: revenue received on issue of shares Income tax withheld

Total finance costs

The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprises:

* Prior year figures have been reanalysed to disclose Taiwan capital gains tax.

Cash and bank balances

Amounts held at futures clearing houses and brokers Movement in net income as a result of conversions

Net distributions for the year

Overseas tax recoverable

Total cash and bank balances Accrued ACD's periodic charge rebate Cash and bank balances

(19)

for the year ended 31 July 2015

Notes to the Aggregated Financial Statements

(continued)

10. 31 July 2015 31 July 2014 £'000 £'000 92,426 84,880 36,334 14,101 18,455 16,471 13 26 542 388 147,770 115,866 11.

31 July 2015 31 July 2014 31 July 2015 31 July 2014

£'000 £'000 £'000 £'000 5,656,989 5,197,477 5,998,335 6,783,011 250,652 2,784 251,411 2,784 5,907,641 5,200,261 6,249,746 6,785,795 8,214 7,963 (8,455) (10,365) 2,695 3,288 (5,640) (6,696) 10,909 11,251 (14,095) (17,061) 6,102,553 5,211,512 6,235,651 6,768,734

*Purchases and/or sales of derivatives contracts do not incur transaction costs. 12.

13. 14. 15.

Annual ACD charges are disclosed within the individual sub-funds' Financial Statements. Share classes

Contingent liabilities and commitments are disclosed within the individual sub-funds' Financial Statements. Trades in the year before transaction costs

Total net trades in the year after transaction costs Purchases awaiting settlement

Contingent liabilities and commitments

Sales Analysis of total trade costs:

Non-derivative securities

Total costs Accrued expenses

Portfolio transaction costs

Purchases

Derivatives and other financial instruments are disclosed within the individual sub-funds' Financial Statements. Derivatives and other financial instruments

Deferred taxation

Derivative contracts* Creditors

Related parties are disclosed within the individual sub-funds' Financial Statements. Amounts payable for cancellation of shares

Related parties Total creditors

Taxes Commissions Income tax payable

(20)

Risks and reward profile

Lower risk Higher risk 

Potentially lower rewards Potentially higher rewards

1 2 3 4 5* 6 7

1 2 3 4 5* 6 7

1 2 3 4 5* 6 7

1 2 3 4 5* 6 7

For further information on risks, please refer to the risk factors section in the Company's prospectus.

• The synthetic risk reward indicator (the SRRI) rating is not a measure of the risk of you losing your investment but describes how much the value of the Fund went up and down in the past;

• The SRRI rating is based on historical data which may not be a reliable indication of the future risks and rewards of the Fund;

• On a scale of 1 (less risky) to 7 (more risky), this Fund has a rating of 5 due to its past performance and the nature of its investments. Shares with a rating of 5 might have higher risks, but also higher returns;

Currency risk: the Fund invests in assets which are denominated in other currencies; changes in exchange rates will affect the value of the Fund. Emerging market risk: emerging markets may not provide the same level of investor protection as a developed market; they may involve a higher risk than investing in developed markets.

The Fund might also experience the following risks:

• The value of the Fund and its return is not guaranteed and may fall as well as rise. You may get back less than you originally invested. • Even the lowest rating 1 does not mean a risk free investment;

Share class A Accumulation Share class A Income Share class B Accumulation Share class B Income

• We cannot guarantee that the rating of the Fund will remain the same, it may change over time;

First State Asia Pacific Fund

Investment objective and policy

The Fund aims to achieve long-term capital growth. for the year ended 31 July 2015

Authorised Fund Manager's Report

The Fund invests in equities in the Asia Pacific region (excluding Japan, including Australasia).

The fund rose by 9.1% in sterling terms over the year and has provided returns of 36.7% and 66.7% over three and five years to 31 July 2015.

On the negative side, Asustek Computer (Taiwan: Information Technology) fell because of weak operations and XL Axiata (Indonesia: Telecom Services) was impacted by a deteriorating competitive environment. Petra Foods (Singapore: Consumer Staples) was hit by profit taking as it reached a high valuation.

• Risk is taken in order to make a higher potential return, the more risk a fund takes, the higher the potential return but the greater the risk of loss; and

Significant purchases over the period included Li & Fung (Hong Kong: Consumer Discretionary), backing the owner to rejuvenate the franchise, and Raffles Medical (Singapore: Health Care), a favoured medical franchise in Singapore with expansion plans overseas. We also bought Asustek Computer (Taiwan: Information Technology), which we believe is a good quality technology franchise with long-term potential, as it was trading on an attractive valuation.

Portfolio changes Performance

Performance was helped by Pigeon Corp (Japan: Consumer Staples) which rose on the back of rapid sales growth in China and CSL (Australia: Health Care) which gained as its key business areas performed. First State China A Shares (China: Multiple Sectors) made a positive contribution as the China A-share market rallied strongly over the year.

We sold Samsung Fire & Marine (South Korea: Financials) due to concerns over corporate governance and Axiata Group (Malaysia: Telecom Services) as we were increasingly concerned about the outlook in the core Malaysian market and weak growth. We also sold China Telecom as we would like to see more dividends paid to shareholders by such a cash generative franchise.

(21)

(continued)

First State Asia Pacific Fund

for the year ended 31 July 2015

Authorised Fund Manager's Report

Time 3 6 1 3 5 10 Since

period mths mths yrs yrs yrs yrs launch

(5.4) (4.2) 9.1 36.7 66.7 259.3 3,528.0 (12.5) (6.9) (1.5) 17.2 28.0 134.1 712.8 (10.5) (5.9) 0.8 20.0 30.1 141.9 1,297.4 1 1 1 1 1 1 1 12 mths to 12 mths to 12 mths to 12 mths to 12 mths to 31/07/15 31/07/14 31/07/13 31/07/12 31/07/11 9.1 9.3 14.6 0.1 21.8 31 July 2015 31 July 2014 % of Fund % of Fund 4.81 5.11 4.03 4.29 3.91 3.98 3.84 2.55 3.47 2.44 2.84 2.36 2.54 2.29 2.52 2.16 2.51 2.14 2.14 2.09 Quartile ranking Time Sector return % Outlook Stock name period Fund return %

Sector: IA Asia Pacific (ex-Japan).

Taiwan Semiconductor Manufacturing

Income and Accumulation.

Discrete performance as at 31 July 2015 Fund return %

Benchmark return %

Cumulative performance as at 31 July 2015

A recent team visit to India left us heartened by the positive response of CEOs we met in relation to the long-term potential of Modi’s economic reforms. We continue to find high quality companies in the Indian market which should provide reasonable returns over the long-term, although it remains very difficult to find companies in the broader Asia Pacific region at current valuations. Despite a large fall in China, we are not buying any Mainland positions because the quality of the companies is unchanged. We maintain high cash levels because of the extended valuations of quality companies in the region.

Past performance should not be used as a guide to future performance, which is not guaranteed. Benchmark: MSCI AC Asia Pacific (ex-Japan) Index.

Oversea-Chinese Banking Cheung Kong Holdings

Ten largest holdings

Hong Kong & China Gas Stock name

CSL CSL

Types of shares

Hong Kong & China Gas AIA Group

DBS Group Holdings Brambles

Kotak Mahindra Bank

Brambles Newcrest Mining

Axiata Group

Standard Foods Taiwan Semiconductor Manufacturing

AIA Group DBS Group Holdings

(22)

Holdings Market value £'000 Total net assets % UNITED KINGDOM (0.40%*)‡ 2,099 0.28

19,721,832 Chaarat Gold Holdings 1,430 0.19

223,076 REA Holdings 669 0.09

CANADA (0.00%*) 1,926 0.25

2,608,695 Myanmar Investments International 1,926 0.25

869,565 Myanmar Investments International Warrants Expiry 18 June 2021 -

-JAPAN (1.74%*) 7,496 0.97 385,300 Pigeon 7,496 0.97 AUSTRALIA (12.78%*) 93,047 12.10 5,267,729 Brambles 26,703 3.47 802,549 CSL 37,000 4.81 3,089,032 Newcrest Mining 16,206 2.11 1,417,374 ResMed CDI 5,283 0.69 473,055 Woodside Petroleum 7,855 1.02 CHINA (6.61%*) 7,664 1.00

3,358,989 Weifu High-Technology Group 'B' 7,664 1.00

HONG KONG (16.56%*) 138,401 17.99

7,150,000 Aeon Credit Service Asia 3,399 0.44

4,692,000 AIA Group 19,565 2.54

665,700 ASM Pacific Technology 3,859 0.50

5,572,000 Cathay Pacific Airways 8,445 1.10

3,169,756 CK Hutchison Holdings 30,111 3.91

10,440,000 Convenience Retail Asia 3,545 0.46

7,210,000 Greatview Aseptic Packaging 2,711 0.35

14,813,093 Hong Kong & China Gas 19,384 2.52

909,600 Hong Kong Aircraft Engineering 5,789 0.75

19,512,000 Li & Fung 9,664 1.26

1,559,000 Link REIT** 5,888 0.77

5,126,000 Minth Group 6,512 0.85

18,344,000 Public Financial Holdings 5,925 0.77

24,526,000 Singamas Container Holdings 2,519 0.33

13,709,000 Tao Heung Holdings 3,474 0.45

26,414,000 Trinity 2,581 0.34

5,217,931 Vitasoy International Holdings 5,030 0.65

INDIA (21.53%*) 186,177 24.20

740,868 Cholamandalam Investment and Finance 5,101 0.66

222,005 CMC 4,318 0.56

339,495 Container Corporation of India 5,593 0.73

1,757,005 Cyient 9,577 1.24

371,734 Dr Reddy's Laboratories 15,211 1.98

2,962,802 EID Parry India 4,396 0.57

477,882 Godrej Consumer Products 6,533 0.85

2,437,301 Godrej Properties 6,546 0.85

1,611,469 Great Eastern Shipping 5,584 0.73

1,130,117 Housing Development Finance 15,127 1.97

3,375,835 Idea Cellular 5,857 0.76

4,920,629 IDFC 7,379 0.96

First State Asia Pacific Fund

as at 31 July 2015

(23)

Holdings Market value £'000 Total net assets %

First State Asia Pacific Fund

as at 31 July 2015

(continued)

Portfolio statement

691,910 Infosys 7,470 0.97

677,101 Infosys ADR 7,365 0.96

2,362,758 Kotak Mahindra Bank 16,445 2.14

495,153 Lupin 8,420 1.09

305,262 Mahindra & Mahindra 4,148 0.54

565,707 Mahindra Lifespace Developers 2,532 0.33

1,976,186 Marico 8,672 1.13

717,026 Shriram Transport Finance 6,434 0.84

1,320,743 Tata Chemicals 6,488 0.84

331,259 Tata Consultancy Services 8,327 1.08

6,080,746 Tata Global Beverages 8,525 1.11

760,226 Tech Mahindra 4,032 0.52

172,446 Trent 2,098 0.27

1,009,514 Tube Investments of India 3,999 0.52

INDONESIA (1.78%*) 11,437 1.49 81,262,700 XL Axiata 11,437 1.49 MALAYSIA (2.62%*) - -PHILIPPINES (1.68%*) 13,174 1.71 277,700 Ayala 3,002 0.39 29,214,000 Manila Water 10,172 1.32 SINGAPORE (12.89%*) 122,365 15.90 15,785,100 Amtek Engineering 5,050 0.66

1,798,000 Bukit Sembawang Estates 4,123 0.54

691,200 Dairy Farm International Holdings 3,662 0.48

2,053,063 DBS Group Holdings 19,349 2.51

9,042,000 Ezion Holdings 3,653 0.47

1,297,200 Great Eastern Holdings 14,007 1.82

2,058,400 Haw Par 8,440 1.10

3,202,000 Hong Leong Finance 3,783 0.49

3,852,300 M1 5,631 0.73

6,460,629 Oversea-Chinese Banking 31,018 4.03

10,237,300 Petra Foods 13,722 1.78

4,437,620 Raffles Medical Group 9,927 1.29

SOUTH KOREA (7.37%*) 27,403 3.56

20,508 LG Household & Health Care Preference 4,479 0.58

253,468 LG Preference 5,007 0.65

434,050 Shinhan Financial Group 9,992 1.30

164,306 Youngone Holdings 7,925 1.03

SRI LANKA (0.28%*) 9,889 1.28

17,470,363 Dialog Axiata 914 0.12

(24)

Holdings Market value £'000 Total net assets %

First State Asia Pacific Fund

as at 31 July 2015

(continued)

Portfolio statement

THAILAND (0.51%*) 4,876 0.63

3,324,400 Delta Electronics Thailand 4,876 0.63

VIETNAM (0.27%*) 2,267 0.29

647,196 Vietnam Dairy Products 2,267 0.29

Portfolio of investments 733,243 95.27

Net other assets 36,391 4.73

Total net assets 769,634 100.00

For the purposes of this portfolio holdings analysis, securities are shown based on their country of listing.

‡Since the previous report the Industry Sector Classification headings have been updated by data providers. Where the portfolio statement shows Industry Sectors, the new sector names have been reflected in the report in respect of the current holdings and comparative holdings have been reanalysed where appropriate.

** Real Estate Investment Trust (REIT).

All investments held are listed, unless otherwise stated.

Stocks shown as ADRs represent American Depositary Receipts. * Comparative figures shown in brackets relate to 31 July 2014. Stocks shown as CDIs represent Chess Depositary Interests.

(25)

Share class A Accumulation 31/07/13

31/07/14 31/07/15

Share class A Income 31/07/13

31/07/14 31/07/15

Share class B Accumulation 31/07/13

31/07/14 31/07/15

Share class B Income 31/07/13

31/07/14 31/07/15

2015*

Share class B Accumulation 2011 2012 2010 2014 163.52 1.05 1.09 851.05 12.5725 1,073.45 829.99 762.58 550.22 9.3856 654.90 10.4301 833.16 702.30 9.2679 963.48 11.9389 1.07 1.06 1.10 1.08 178.61 3.5543 754.19 780.02 709.69 605.87 648.42 2012 880.09 1,104.16 133.42 979.13 131.77 0.7152 119.78 2014

Share class A Income 2010

2012

718.69

2013

Share price history and revenue record

2014 4.4546 2011 2013 760.48 96.39 967.25 176.36 161.27 -201.38 1.1079 0.7893 0.0712 3.8570 Highest share price (p) Lowest share price (p) 2011

Share class A Accumulation

515.63 Distribution per share (p) 2010 Calendar year 142.91 3.2635 111.91 2015* 137.60 64,989,894 51,791,600 987.78 516,911,571 896.94 1,084.97 561,921,981 582,923,315 52,330,464 177.56 2015* 2013 139.36 0.6551 Ongoing Charges Figure (%)

First State Asia Pacific Fund

Net Asset Value per share (p) Shares in

issue Net Asset Value

of share class (£) as at 31 July 2015

Summary Fund performance

Net asset value and ongoing charges figure

256,810,043 31,392,080 1.84 225,373,430 974.76 19,193,517 1,176,211 818.07 894.13 1.87 1.83 149.26 949,680 187,090,354 25,205,827 1,417,496 163.13 721,018 1,167,079 1.80 1.83 1.81 658,935 177.12 7.1386 775.39 11,599,468 10,956,892 1,084.57 1,226.47 17,586,172 19,454,901 11,755,849 149.60 18,967,842 5.7745 0.6115

(26)

Notes £'000 £'000 £'000 £'000

Net capital gains 2 68,690 63,896

Revenue 3 17,200 14,658 4 (10,381) (10,159) 6 - (2) 6,819 4,497 5 (526) (2,109) 6,293 2,388 74,983 66,284 6 (7,624) (4,248) 67,359 62,036 £'000 £'000 £'000 £'000 762,429 858,737 51,955 2,649 (119,480) (165,199) (67,525) (162,550) 115 366 - (1) 67,359 62,036 7,256 3,841 769,634 762,429

First State Asia Pacific Fund

Statement of total return

for the year ended 31 July 2015

Total return before distributions

Change in net assets attributable to shareholders from investment activities

31 July 2015

Finance costs: interest Income:

Expenses

for the year ended 31 July 2015

31 July 2014 31 July 2014

Net revenue before taxation Net revenue after taxation

Statement of change in net assets attributable to shareholders

Taxation

Finance costs: distributions

Opening net assets attributable to shareholders

31 July 2015

Dilution adjustment

Less: Amounts payable on cancellation of shares Amounts receivable on issue of shares

Notes to the financial statements are on pages 25 to 29.

Retained distribution on accumulation shares

Change in net assets attributable to shareholders from investment activities Stamp duty reserve tax

(27)

First State Asia Pacific Fund

31 July 2015 31 July 2014 Notes £'000 £'000 733,243 730,309 8 2,557 1,690 42,827 32,425 45,384 34,115 778,627 764,424 9 (8,830) (1,881) (163) (114) (8,993) (1,995) 769,634 762,429 Total liabilities

Notes to the financial statements are on pages 25 to 29.

Total other assets Portfolio of investments Total assets Liabilities Creditors Debtors Assets

Net assets attributable to shareholders Distribution payable on income shares Cash and bank balances

Balance sheet

(28)

1. 2. 31 July 2015 31 July 2014 £'000 £'000 68,380 66,217 11 -299 (2,321) 68,690 63,896 3. 31 July 2015 31 July 2014 £'000 £'000 6 -(335) (47) 15,592 13,351 929 897 323 269 51 19 634 169 17,200 14,658 4. 31 July 2015 31 July 2014 £'000 £'000 9,781 9,464 110 117 9 10 117 109 245 196 119 263 490 578 10,381 10,159 Currency gains/(losses)

Safe custody charges

Payable to the Depositary, associates of the Depositary, and agents of either of them: Front end load income

Depositary's fees Audit fee Total revenue

Interest from bank deposits

ACD's periodic charge

Other expenses:

Total expenses Other expenses Registrar fees

Forward foreign exchange currency contracts

Revenue

Distributions from Regulated Collective Investment Schemes: Dividends from UK companies

Overseas non-taxable revenue Overseas taxable revenue

Expenses

Please see pages 10 to 12 for accounting basis and policies. The net capital gains during the year comprise:

Non-derivative securities

First State Asia Pacific Fund

Notes to the Financial Statements

Net capital gains

Accounting basis and policies as at 31 July 2015

Overseas scrip dividends

Payable to the ACD, associates of the ACD, and agents of either of them: Offshore distribution non taxable

(29)

First State Asia Pacific Fund

(continued)

Notes to the Financial Statements

as at 31 July 2015 5. 31 July 2015 31 July 2014 £'000 £'000 (a) (733) 447 1,259 1,662 526 2,109 (b) 6,819 4,497 1,364 899 (1) -(186) (179) (3,183) (2,724) 2,006 2,004 (733) 447 1,259 1,662 526 2,109 (c) (d) 6.

Distributions and interest

31 July 2015 31 July 2014 £'000 £'000 1,851 701 5,621 3,274 7,472 3,975 208 277 (56) (4) 7,624 4,248

Overseas non-taxable revenue* UK dividends*

The tax assessed for the year is lower than (2014: higher than) the standard rate of corporation tax in the UK for an OEIC of 20% (2014: 20%). The differences are explained below:

Factors affecting current tax charge for the year: Total current tax (note 5b)

Corporation tax of 20% (2014: 20%)

Non taxable scrip dividends*

Movement in excess management expenses Irrecoverable overseas tax

Analysis of charge in year: Taxation

Irrecoverable overseas tax

There is no provision required for deferred taxation at the Balance sheet date in the current or prior year. Indian capital gains tax

Current tax charge for year (note 5a)

Deferred taxation: Effects of:

Net revenue before taxation

Finance costs

Final distribution

Net distributions for the year

Deduct: revenue received on issue of shares Add: revenue deducted on cancellation of shares

At the year end, after offset against revenue taxable on receipt, there is a potential deferred tax asset of £12,808,370 (31/07/14: £10,802,243) this relates to surplus management expenses. No deferred tax asset was recognised in the current or prior year as it was considered unlikely the Fund would generate sufficient taxable profits in the future to utilise these amounts.

Factors that may affect future tax charges:

OEICs are exempt from tax on capital gains. Therefore, any capital return is not included in the above reconciliation. *As an authorised OEIC these items are not subject to corporation tax.

The distributions take account of revenue received on the issue of shares and revenue deducted on the cancellation of shares, and comprises:

Interim distribution Indian capital gains tax

(30)

First State Asia Pacific Fund

(continued)

Notes to the Financial Statements

as at 31 July 2015 7. 31 July 2015 31 July 2014 £'000 £'000 6,293 2,388 72 37

Expenses charged to capital - 161

Indian capital gains tax 1,259 1,662

7,624 4,248 8. 31 July 2015 31 July 2014 £'000 £'000 273 346 54 19 2,230 1,325 2,557 1,690 9. 31 July 2015 31 July 2014 £'000 £'000 7,253 23 469 826 1,108 1,032 8,830 1,881 10.

31 July 2015 31 July 2014 31 July 2015 31 July 2014

£'000 £'000 £'000 £'000 269,361 257,144 334,589 419,602 269,361 257,144 334,589 419,602 457 453 (475) (706) 170 136 (421) (575) 627 589 (896) (1,281) 269,988 257,733 333,693 418,321

11. Contingent liabilities and commitments

Sales Movement in net income as a result of conversions

Portfolio transaction costs Analysis of total trade costs: Accrued expenses

Movement between net revenue and net distributions

Net revenue after taxation

Total net trades in the year after transaction costs Sales awaiting settlement

Debtors

Accrued revenue

Amounts receivable for issue of shares Total debtors

Net distributions for the year

Trades in the year before transaction costs Creditors

Total creditors

Purchases awaiting settlement

Total costs

As at 31 July 2015, the Fund had no contingent liabilities (31/07/14: £nil) and no commitments (31/07/14: £nil). Commissions

Taxes

Non-derivative securities

Purchases Amounts payable for cancellation of shares

(31)

First State Asia Pacific Fund

(continued)

Notes to the Financial Statements

as at 31 July 2015 12.

(a)

(b)

Fair value of financial assets and financial liabilities

The market value of investments is taken to equal fair value for the purposes of Financial Reporting Standard 29. Given all the activities of the Fund, none of the investments held fall within the definition of ‘investments held for trading’ as set out in Financial Reporting Standard 13.

There is no material difference between the value of the financial assets and liabilities, as shown in the Balance sheet, and their fair value.

Interest rate risk

As at 31 July 2015, 5.56% (31 July 2014: 4.25%) of the Fund's assets were interest bearing.

The Fund does not invest in either fixed or floating rate securities and interest rate risk exposure is restricted to interest receivable on bank deposits or payable on bank overdraft positions which will be affected by fluctuations in interest rates.

General

The Fund’s main liability is the redemption of any shares that investors wish to sell. In general, the ACD manages the cash to ensure that it can meet its liabilities. Assets from a fund may need to be sold if insufficient cash is available to finance such redemptions. The Fund’s holdings are reviewed on a regular basis, with particular emphasis on the market capitalisation of the issuer (securities issued by larger capitalised companies generally have greater liquidity), and the number of days it would take to trade out of a given securities position or percentage of the Fund as a whole (determined by reference to available market trading volumes). Funds that have a higher concentration of securities which are deemed to be less liquid are regularly monitored.

As a proportion of the Fund’s investment portfolio is invested in overseas securities the Balance sheet can be affected by movements in foreign exchange rates. The Investment Manager may seek to manage exposure to currency movements by using forward foreign exchange contracts or by hedging the sterling value of investments that are priced in other currencies. Income received in other currencies is converted to sterling on or near the date of receipt.

Derivatives and other financial instruments

In pursuing its investment objectives the Fund holds equity shares.

The main risk arising from the Fund’s financial instruments is market price risk. Market price risk arises mainly from uncertainty about future prices of the financial instruments held. Investment risk in the portfolio is regularly reviewed and controlled through the adoption of parameters limiting exposures to various factors such as industries, countries, and company size.

The Fund has little exposure to credit or cash flow risk. Certain transactions in securities that the Fund enters into expose it to the risk that the counter-party will not deliver the investment (purchase) or cash (sale) after the Fund has fulfilled its responsibilities. The Fund only buys and sells investments through brokers which have been approved by the ACD as an acceptable counter-party. This list is reviewed quarterly. The Fund’s assets comprise mainly realisable securities which can be readily sold in normal market conditions.

Figure

Updating...

References

Related subjects : Effect of the First 3 State