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PACIFIC ASSETS TRUST PLC - Half-yearly Report.

                           Pacific Assets Trust plc
             Unaudited Half Year Results For The Six Months Ended
                                 31 July 2013
                                Company Summary
                                Key Statistics
                                                    As at      As at
                                                  31 July 31 January
                                                     2013       2013 %
change Share price                                        163.0p
147.5p    +10.5 Net asset value per share
168.2p     160.6p     +4.7 Discount of share price to net asset value
3.1%       8.2%        - per share Shareholders' funds
196.5m     187.6m     +4.7 Market capitalisation
190.5m     172.4m    +10.5
                                               Six months   One year
                                                       to         to
                                                  31 July 31 January
                                                     2013       2013
Share price (total return)*                        +12.3%     +30.9% Net
asset value per share (total return)*           +6.9%     +24.8% MSCI
All Country Asia ex Japan Index (total         -1.1%     +12.1% return,
sterling adjusted)* *Source: Morningstar
                                               Year ended Year ended
                                               31 January 31 January
Dividends                                            2013       2012
Final dividend per share                            2.60p      2.60p
- Half Year's Highs/Lows                               High
Low Net asset value per share                          178.2p     152.5p
Share price                                        167.1p     143.0p
Discount of share price to net asset value           1.4%      12.2% per
share** **Discount high - Narrowest discount in period Discount low -
Widest discount in period Chairman's Statement "Following
excellent performance last year I am pleased to report that the current
financial year has started strongly." Performance Following
excellent performance last year I am pleased to report that the current
financial year has started strongly. During the six month period ended
31 July 2013, the Company's share price total return was +12.3% and
the net asset value total return was +6.9%. This compares to a total
return from the sterling adjusted MSCI All Country Asia ex Japan Index
of -1.1%. The Company was the best performing member of its peer group
during the period under review. Significantly, it has also been the best
performer since the appointment of First State as the Company's
Investment Manager in July 2010. The Company's strong share price
performance reflected a decrease in the share price discount to net
asset value per share from 8.2% as at 31 January 2013 to 3.1% as at 31
July 2013. Further information on the Company's investment strategy
can be found in our Investment Manager's review beginning on page
4. Share Capital and Discount Policy The Company's strong share
price performance relative to net asset value has continued since the
half year end and as at 27 September 2013 it was trading at a (2.3%
discount). The Board continues to monitor this closely. At the last
Annual General Meeting, the Company renewed the authorities to issue and
to purchase its own shares. The Board will use the authority to purchase
shares to ensure that the discount between the Company's share
price and the net asset value per share is not out-of-line with the
share price discount of similar peer group investment companies. During
the past six months and to the date of this report there have been no
repurchases of shares. Similarly, it will make shares available to the
market if a sustained premium to net asset value were to develop.
Revenue Account and Dividend As mentioned in the Annual Report, the net
revenue generated during the year to 31 January 2013 fell when compared
to the previous year due to a reduction in the overall yield from
portfolio investments. However, the Board has continued its drive to
control costs, and this has, in part, helped to achieve an unchanged
level of net income for the period of [pounds sterling]2.1m. The Board
reminds shareholders that it remains the Company's policy to pursue
capital growth for shareholders with income being a secondary
consideration. The Board I am delighted to welcome James Williams onto
the Board with effect from 1 October 2013. James brings with him a
wealth of experience having held a number of senior roles at Baring
Asset Management, including Chief Investment Officer and Head of
International Business (Asia, Europe, Middle East and U.S.). He is
currently a non-executive Director of Investors Capital Trust PLC and
JPMorgan American Investment Trust PLC and was formerly a non-executive
Director of Close Brothers Group PLC and Royal London Growth &
Income Trust PLC. A resolution proposing his election to the Board will
be considered by shareholders at the Annual General Meeting of the
Company to be held on 24 June 2014. Regulatory The Board has noted that
the Alternative Investment Fund Managers Directive (the
'Directive') was written into UK legislation with effect from
22 July 2013. There is a one-year transition period within which the
Company must comply with the provisions of the Directive, which includes
the appointment of an Alternative Investment Fund Manager
('AIFM'). The Board, together with its advisers, is currently
reviewing the options open to the Company and will ensure that all
documentation and processes to enable the Company to comply with the
Directive are in place within the transition period. Outlook The
deterioration in the short-term outlook for a number of countries in
Asia remains a concern and comes within the context of excessive
monetary growth in the USA and Europe being wound down. Your Board
continues to believe that your investment manager's efforts to
identify well managed companies which embrace a sustainable approach to
business will provide superior returns over the longer term. David
Nichol Chairman 27 September 2013 Investment Manager's Review
"The choice is this: impose capital controls or let the Fed run
your economy." Robin Harding, FT, Wed 28 August, 2013. Most Asian
countries chose the latter and are now feeling the consequences. Much of
the rise in Asian asset prices over the past few years has been
attributable to the fall-out from the extreme monetary policies being
pursued in the U.S. and Europe. As abundant liquidity from the West
found its way into most, if not all, Asian asset classes, from property
to Government debt to equity prices, many asset prices have re-rated
beyond levels warranted by improvements in the underlying fundamentals
of these assets. In recent months this process has started to reverse as
markets finally realised that the monetary printing presses will not be
left on indefinitely. As a result, the "hot" money has started
to exit most Asian asset classes. Despite the immediate fall in the
share prices of many of the Company's holdings, the reduced
presence of "hot" money in Asian financial markets is good
news for the Company's long-term investors. Most obviously, share
prices of some of our favourite companies have finally started to return
to more acceptable levels, allowing us to slowly increase the
Company's stakes in some of Asia's best companies that were
hitherto out-of-reach on valuation grounds. As importantly, the removal
of temporary liquidity in the region has shone a bright light on the
structural weaknesses still inherent in some Asian countries, most
notably India and Indonesia, which both suffer from infrastructure
bottlenecks, weak governance and glaring fiscal and current account
deficits. In both countries, a rapidly depreciating currency has turned
what was a long-festering "mini-crisis" into a full-blown
economic crisis that has finally got the attention of policymakers and
Government officials as a sense of panic and urgency has taken hold. It
is too early to tell whether the Indian and Indonesian Governments will
be able to overcome short-term political pressures and deliver
meaningful long-term structural reforms but the faster the currencies
continue to depreciate, the greater the chances of success. Most, if not
all, Asian countries will be affected should the reversal of these
"hot" flows of capital away from the region continue. The
degree to which they are affected will depend in large part on the
relative health of their underlying economies. For example, in contrast
to India and Indonesia, the Philippines remains in particularly good
shape, thanks to a large, steady stream of remittances of foreign
earnings from its large overseas workforce and an economy just at the
beginning of a cyclical upturn. Elsewhere, we, like many others, remain
concerned that the investment-intensive, state-orchestrated Chinese
economic model may be storing up serious structural problems within its
huge banking system. Should Chinese savers start to lose confidence, it
is not clear whether China's traditional capital controls would be
able to hold back the subsequent exodus of domestic capital. Performance
Given our long-term focus, it is difficult for us to comment on
short-term performance trends, other than to note performance
contribution at an individual stock level. Four of the worst
contributors in the portfolio over the period are Indian companies. In
part this reflects the dramatic shift in market sentiment towards India
and the subsequent currency weakness. In the case of EID Parry (India)
and Tube Investments of India, both part of the highly regarded
Murugappa Group from Chennai, it also reflects the fact that both
companies are experiencing a period of cyclical weakness in demand for
their products. In the case of the latter, the slowdown in the Indian
economy has affected short-term demand for their bicycles. Their
manufacturing facilities have also been affected by an unusually high
level of power cuts in Tamil Nadu, a sobering reminder of the challenges
still facing Indian manufacturing companies today. Despite these
short-term challenges, our long-term investment conviction remains
intact. In terms of the best performing holdings, it is a very stock
specific story. Improving corporate governance (Tech Mahindra) (India),
the on-going drive to switch from heavy diesel oil and coal to cleaner,
greener gas in China (Towngas China), strong leisure demand for bicycles
(Giant Manufacturing) (Taiwan), solar panels (Delta Electronics
(Thailand)) and healthy soya-based milk drinks (Vitasoy International
Holdings) (Hong Kong) were at the top of the list. Given the random walk
taken by markets over anything other than the long-run, it is entirely
possible that these companies may appear at the bottom of the list next
time! However, we remain convinced that these sustainability tailwinds
will help provide good quality companies with the opportunity to
significantly grow their earnings, and share prices, over the long-run.
Portfolio Positioning During the period, we held one-on-one meetings
with the senior management of over five hundred Asian companies, each of
which are potential candidates for investment. However, our long-term
investment horizon and conviction in the Company's current
investments meant that the portfolio itself remains substantially
unchanged over the six months under review. A new position was initiated
in Weifu High-Technology Group, the leading manufacturer of fuel
injection Investment Manager's Review Continued systems for the
automotive sector in China. The Company is well placed to contribute to,
and benefit from, a shift towards tighter vehicle emissions standards in
China. The company has also benefitted from a long-term partnership with
the highly regarded Bosch Group, dating back over twenty years. Weifu
High-Technology Group aside, we continue to struggle to generate many
new investment ideas in China. There are three main reasons for this.
Firstly, corporate governance and management quality remain a challenge.
Second, even where we are comfortable with management, we often struggle
to get comfortable with long-term political alignment. So few Chinese
companies are in charge of their own destiny. For example, we are
looking closely at a well-managed port operator in mainland China. While
we are comfortable with the quality of the underlying business, we have
no idea what returns the Chinese Government will allow the company to
achieve over the next five to ten years. The third challenge in China is
valuation, with many of our favourite companies still trading on
extremely extended valuations. As a result, we primarily invest in China
indirectly, through companies such as Chroma ATE and Delta Electronics
(both Taiwan) and Vitasoy International Group (Hong Kong). Elsewhere,
extremely stretched valuations led us to reduce investment in some of
the largest positions, including Taiwan Semiconductor Manufacturing
(Taiwan), Manila Water (Philippines), Towngas China (China) and
Kasikornbank (Thailand). The proceeds were reinvested primarily to
increase the holdings in two Indian exporters, Tech Mahindra and Dr.
Reddy's Laboratories. Tech Mahindra is the final reincarnation of
Satyam Computer Services, the Indian software services company that was
bankrupted under its previous owner. The company is now under new
management and new stewardship in the shape of the Mahindra and Mahindra
Group, in which we have much conviction. Dr. Reddy's is one of
India's leading providers of affordable medicines, and has been
successful in building a strong export business. Overseas earnings now
account for over three quarters of earnings. In terms of complete
disposals, we said goodbye to Wipro (India), another Indian software
services company which has struggled to make the generational change in
management required following the standing down from day-to-day duties
of its visionary founder. We also completely disposed of the holding in
Ayala Land (Philippines) on valuation grounds, although the Company
remains an indirect investor via its shares in parent company, Ayala
Corporation. Engagement and Voting During the period we undertook our
annual review of engagement issues for the portfolio's major
holdings. We firmly believe the mantra "there is no such thing as a
perfect company" so look to identify the one or two things we would
have investee companies change if we could. We then decide the approach
we will take to engagement (e.g. writing a letter or through regular
dialogue) and try to set a timeframe for the engagement (perhaps the
most challenging part). Examples of some of the issues we engaged on
during the period include: - Inappropriate, chauvinistic advertising
with a consumer company - Palm oil sourcing and plastic bottled water
with another consumer company - Improved focus on responsible banking
and environmental risks in lending with a bank - Customer service levels
relative to peers with a telecoms company In each case, we engaged for
investment reasons. The more these companies are able to address such
issues, the more attractive the potential risk-adjusted returns become.
We were also active on the proxy voting front. Examples of where we
voted against shareholder resolutions on behalf of the Company included
voting against general approval to transact any and all other business
brought before the annual meeting of shareholders (most of our
Philippine and Taiwanese holdings!) and voting against poorly designed
remuneration schemes. For example, we voted against schemes which had
insufficiently long vesting periods and an overgenerous discount for
share issues to management leading to poor alignment with minority
shareholders such as the Company. Outlook In short, we remain concerned
that the worst is not yet behind us. The global economy remains
artificially supported. Such support cannot last indefinitely, and as
and when it is pulled way, the implications for Asia may be profound. As
a result, we will be delighted if we are able to preserve, in real
terms, the capital of the Company at current levels in the short-term.
As always, we believe the greatest challenge when investing in Asia is
not to generate returns when times are good, but to try and hold on to
as much of these returns as possible when times are not so good.
Fortunately, we don't pride ourselves on the strength of our
economic or market predictions. Instead, our job is simply to get on
with striving to identify good quality companies which are well
positioned to contribute to, and benefit from, Asia's shift towards
a more genuinely sustainable development path. We believe this approach
will stand the Company in good stead in its search to achieve attractive
risk-adjusted returns in Asia over the long-term. David Gait Senior
Investment Manager First State Investment Management (UK) Limited 27
September 2013 Portfolio as at 31 July 2013
                                                       % of total
                                               Market assets less
                                            valuation     current
Country of Investment                 Sector*              [pounds
sterling]'000 liabilities incorporation Towngas China
Utilities           10,396         5.3        Cayman
                                                                        Islands AmorePacific               Consumer Staples     9,276
4.7   South Korea Tech Mahindra              Information          9,164
4.7         India
                           Technology DBS Group
Financials           8,890         4.5     Singapore Marico
Consumer Staples     8,709         4.4         India Taiwan
Semiconductor       Information          7,505         3.8        Taiwan
Manufacturing Company      Technology Manila Water
Utilities            6,850         3.5   Philippines Kasikornbank
Financials           6,800         3.5      Thailand Public Bank
Financials           6,248         3.2      Malaysia Samsung Fire &
Marine      Financials           6,054         3.1   South Korea
Insurance Ten largest investments                        79,892
40.7 Delta Electronics          Information          5,745         2.9
Thailand (Thailand)                 Technology Axiata
Telecom Services     5,620         2.8      Malaysia Dabur India
Consumer Staples     5,590         2.8         India DGB Financial
Financials           5,281         2.7   South Korea Globe Telecom
Telecom Services     5,157         2.6   Philippines Singapore
Telecom Services     4,857         2.5     Singapore Telecommunications
Chroma ATE                 Information          4,513         2.3
                           Technology E.Sun Financial Holdings
Financials           4,350         2.2        Taiwan Dr. Reddy's
Laboratories   Health Care          4,266         2.2         India Uni-
President Enterprise  Consumer Staples     4,161         2.1
Taiwan Twenty largest investments                    129,432        65.8
Idea Cellular              Telecom Services     3,640         1.9
India SembCorp Industries        Industrials          3,481         1.8
Singapore Singapore Post             Industrials          3,127
1.6     Singapore Hongkong & China Gas       Utilities
3,116         1.6     Hong Kong Delta Electronics (Taiwan) Information
2,938         1.5        Taiwan
                           Technology Infosys
Information          2,870         1.5         India
                           Technology Bank of the Philippine
Financials           2,786         1.4   Philippines Islands Sheng Siong
Consumer Staples     2,609         1.3     Singapore MTR
Industrials          2,401         1.2     Hong Kong Sabana Shari'
ah Compliant Financials           2,285         1.1     Singapore REIT
Thirty largest investments                    158,685        80.7
Mindray Medical            Health Care          2,205         1.1
                                                                        Islands China Mengniu Dairy        Consumer Staples     2,083
1.0        Cayman
                                                                        Islands Giant Manufacturing        Consumer             1,878
1.0        Taiwan
                           Discretionary Linde India
Industrials          1,858         1.0         India Vitasoy
International      Consumer Staples     1,842         0.9     Hong Kong
Holdings Uni- President China       Consumer Staples     1,496
0.8        Cayman
                                                                        Islands Tube Invetments of India   Industrials          1,402
0.7         India Standard Foods             Consumer Staples     1,055
0.6        Taiwan Ayala Corporation          Financials           1,012
0.6   Philippines ENN Energy                 Utilities            1,000
0.5        Cayman
                                                                        Islands Forty largest investments                     174,516
88.9 *MSCI sector classifications Portfolio as at 31 July 2013 Continued
                                                       % of total
                                               Market assets less
                                            valuation     current
Country of Investment              Sector*                 [pounds
sterling]'000 liabilities incorporation National Trust Bank
Financials                974         0.5     Sri Lanka Kotak Mahindra
Bank     Financials                949         0.5         India XL
Axiata               Telecom Services          817         0.4
Indonesia Bharti Airtel           Telecom Services          809
0.4         India Simplo Technology       Information               803
0.4        Taiwan
                        Technology Cholamandalam           Financials
683         0.3         India Investment & Finance Mahindra
Lifespace      Industrials               669         0.3         India
Developers Marico Bangladesh       Consumer Staples          644
0.3    Bangladesh Swire Properties        Financials                530
0.3     Hong Kong EID Parry (India)       Materials                 505
0.3         India Fifty largest                                 181,899
92.6 investments Hemas Holdings          Industrials               497
0.2     Sri Lanka Godrej Consumer         Consumer Staples          471
0.2         India Products Weifu High-Technology   Information
179         0.1         China Group                   Technology Total
portfolio                               183,046        93.1 Net current
assets                             13,485         6.9 Total assets less
196,531       100.0 current liabilities *MSCI sector classifications
Income Statement for the six months ended 31 July 2013
                         (Unaudited)             (Unaudited)
                      Six months ended        Six months ended
Year ended
                        31 July 2013            31 July 2012
31 January 2013
                   Revenue Capital   Total Revenue Capital   Total
Revenue Capital   Total
                     [pounds sterling]'000   [pounds
sterling]'000   [pounds sterling]'000   [pounds
sterling]'000   [pounds sterling]'000   [pounds
sterling]'000   [pounds sterling]'000   [pounds
sterling]'000   [pounds sterling]'000 Gains on investments
held at fair value through       -  11,820  11,820       -  13,489
13,489       -  35,724  35,724 profit or loss Exchange differences on
currency balances                 -      61      61       -     (8)
(8)       -    (97)    (97) Income (note 2)      2,829       -   2,829
2,703       -   2,703   4,168       -   4,168 Investment management,
management and performance fees (note 3)        (232) (2,021) (2,253)
(187) (1,121) (1,308)   (395) (1,811) (2,206) Other expenses       (259)
(2)   (261)   (246)     (3)   (249)   (538)    (19)   (557) Return on
ordinary   2,338   9,858  12,196   2,270  12,357  14,627   3,235  33,797
37,032 activities before taxation Taxation on          (229)       -
(229)   (155)       -   (155)   (262)       -   (262) ordinary
activities Return               2,109   9,858  11,967   2,115  12,357
14,472   2,973  33,797  36,770 attributable to equity shareholders
Return per ordinary share (p) (note 4)     1.8     8.4    10.2     1.8
10.6    12.4     2.6    28.9    31.5 The Total column of this statement
represents the Company's Income Statement. The Revenue and Capital
columns are supplementary to this and are both prepared under guidance
published by the Association of Investment Companies (AIC). All revenue
and capital items in the Income Statement derive from continuing
operations. The Company had no recognised gains or losses other than
those declared in the Income Statement. Reconciliation of Movements in
Shareholders' Funds for the six months ended 31 July 2013
                                              (Unaudited) (Unaudited)
                                               Six months  Six months
                                                    ended       ended
                                                  31 July     31 July
                                                     2013        2012
sterling]'000       [pounds sterling]'000     [pounds
sterling]'000 Opening shareholders' funds
187,602     153,870   153,870 Return for the period
11,967      14,472    36,770 Dividends paid
(3,038)     (3,038)   (3,038) Closing shareholders' funds
196,531     165,304   187,602 Balance Sheet as at 31 July 2013
                                             (Unaudited) (Unaudited)
                                                   As at       As at
As at
                                                 31 July     31 July
                                                    2013        2012
sterling]'000       [pounds sterling]'000     [pounds
sterling]'000 Fixed assets Investments held at fair value through
183,046     157,763   173,990 profit or loss Current assets Debtors
 485         894       518 Cash at bank
14,878       7,658    15,124
                                                  15,363       8,552
15,642 Creditors (amounts falling due within one        (1,878)
(1,011)   (2,030) year) Net current assets
13,485       7,541    13,612 Net assets
196,531     165,304   187,602 Capital and reserves Share capital
14,606      14,606    14,606 Share premium account
4           4         4 Capital redemption reserve
1,648       1,648     1,648 Special reserve
14,572      14,572    14,572 Capital reserve
160,346     129,048   150,488 Revenue reserve
5,355       5,426     6,284 Equity shareholders' funds
196,531     165,304   187,602 Net asset value per ordinary share (p)
(note       168.2       141.5     160.6 5) Cash Flow Statement for the
six months ended 31 July 2013
                                             (Unaudited) (Unaudited)
                                              Six months  Six months
                                                   ended       ended
                                                 31 July     31 July
                                                    2013        2012
sterling]'000       [pounds sterling]'000     [pounds
sterling]'000 Net cash inflow from operating activities
566       1,290     1,904 Servicing of finance
-           -         - Financial investment Purchases of investments
(21,251)    (25,791)  (40,030) Sales of investments
23,416      28,097    49,277 Net cash inflow from financial investment
2,165       2,306     9,247 Equity dividends paid
(3,038)     (3,038)   (3,038) (Decrease)/increase in cash
(307)         558     8,113 Reconciliation of net cash flow to movement
in net funds (Decrease)/increase in cash resulting from         (307)
558     8,113 cash flows Exchange differences on currency balances
61         (8)      (97) Movement in net funds
(246)         550     8,016 Net funds at beginning of period
15,124       7,108     7,108 Net funds at period end
14,878       7,658    15,124 Reconciliation of net return before finance
costs and taxation to net cash flow from operating activities Net return
before finance costs and taxation      12,196      14,627    37,032
Gains on investments                            (11,820)    (13,489)
(35,724) Exchange differences on currency balances           (61)
8        97 Irrecoverable withholding tax on investment        (213)
(174)     (294) income Changes in working capital and other non-cash
items                                       464         318       793
Net cash inflow from operating activities            566       1,290
1,904 Notes to the Accounts 1. Basis of preparation The condensed
financial statements have been prepared under the historical cost
convention, except for the measurement of investments which are valued
at fair value, and in accordance with applicable accounting standards,
the Statement of Recommended Practice 'Financial Statements of
Investment Trust Companies and Venture Capital Trusts' dated
January 2009 and the UK Accounting Standards Board's Statement
'Half Yearly Financial Reports'. The same accounting policies
that were used for the year ended 31 January 2013 have been applied in
these financial statements. 2. Income
                                            (Unaudited) (Unaudited)
                                             Six months  Six months
                                                  ended       ended
                                                31 July     31 July
                                                   2013        2012
sterling]'000       [pounds sterling]'000     [pounds
sterling]'000 Investment income
2,829       2,703     4,168 Total income
2,829       2,703     4,168 3. Investment Management fee, Management and
Performance fees
                        (Unaudited)           (Unaudited)
                     Six months ended      Six months ended         Year
                       31 July 2013          31 July 2012         31
January 2013
                   Revenue Capital Total Revenue Capital Total Revenue
Capital Total
                     [pounds sterling]'000   [pounds
sterling]'000 [pounds sterling]'000   [pounds
sterling]'000   [pounds sterling]'000 [pounds
sterling]'000   [pounds sterling]'000   [pounds
sterling]'000 [pounds sterling]'000 Investment             185
556   741     151     452   603     318     952 1,270 management fee -
First State Management fee -        47     140   187      36     109
145      77     232   309 Frostrow Performance fee          -   1,325
1,325       -     560   560       -     627   627 accrual*
                       232   2,021 2,253     187   1,121 1,308     395
1,811 2,206 *Details of the performance fee basis can be found in the
Report of the Directors on page 14 of the Annual Report for the year
ended 31 January 2013. 4. Return per ordinary share The total return per
ordinary share price is based on the total return attributable to
Shareholders of [pounds sterling]11,967,000 (six months ended 31 July
2012: [pounds sterling] 14,472,000; year ended 31 January 2013: return
[pounds sterling]36,770,000) and on 116,848,386 shares (six months ended
31 July 2012: 116,848,386; year ended 31 January 2013: 116,848,386),
being the weighted average number of shares in issue. The revenue return
per ordinary share price is calculated by dividing the net revenue
return attributable to Shareholders of [pounds sterling]2,109,000 (six
months ended 31 July 2012: [pounds sterling]2,115,000; year ended 31
January 2013: [pounds sterling]2,973,000) by the weighted average number
of shares in issue as above. The capital return per ordinary share price
is calculated by dividing the net capital return attributable to
Shareholders of [pounds sterling]9,858,000 (six months ended 31 July
2012: [pounds sterling]12,357,000; year ended 31 January 2013: return
[pounds sterling]33,797,000) by the weighted average number of shares in
issue as above. 5. Net asset value per ordinary share The net asset
value per ordinary share is based on the net assets attributable to
Shareholders of [pounds sterling]196,531,000 (31 July 2012: [pounds
sterling]165,304,000; 31 January 2013: [pounds sterling] 187,602,000)
and on 116,848,386 shares in issue (31 July 2012: 116,848,386; 31
January 2013: 116,848,386). Notes to the Accounts Continued 6. 2013
accounts These are not statutory accounts in terms of Section 434 of the
Companies Act 2006 and are unaudited. Statutory accounts for the year to
31 January 2013, which received an unqualified audit report, have been
lodged with the Registrar of Companies. No statutory accounts in respect
of any period after 31 January 2013 have been reported on by the
Company's auditors or delivered to the Registrar of Companies.
Interim Management Report Principal Risks and Uncertainties The
Company's assets consist of listed securities and its main risks
are therefore market related. The Company is also exposed to currency
risk in respect of the markets in which it invests. Other risks faced by
the Company include external, investment and strategic, regulatory,
operational, and financial risks. These risks, and the way in which they
are managed, are described in more detail under the heading Principal
Risks and Risk Management within the Business Review in the
Company's Annual Report for the year ended 31 January 2013. The
Company's principal risks and uncertainties have not changed
materially since the date of that report and are not expected to change
materially for the remaining six months of the Company's financial
year. Related Party Transactions During the first six months of the
current financial year no material transactions with related parties
have taken place which have affected the financial position or the
performance of the Company during the period. Going Concern The
Directors believe, having considered the Company's investment
objectives, risk management policies, capital management policies and
procedures, and the nature of the portfolio and its expenditure
projections, that the Company has adequate resources, an appropriate
financial structure and suitable management arrangements in place to
continue in operational existence for the foreseeable future. For these
reasons, they consider there is reasonable evidence to continue to adopt
the going concern basis in preparing the accounts. Directors'
Responsibilities The Board of Directors confirms that, to the best of
its knowledge:  i. the condensed set of financial statements contained
within the Half Year
    Report has been prepared in accordance with applicable accounting
    standards; and ii. the interim management report includes a fair
review of the information
    required by 4.2.7R and 4.2.8R of the UK Listing Authority and
    Rules. The Half Year Report has not been reviewed or audited by the
Company's auditors. The Half Year Report was approved by the Board
on 27 September 2013 and the above responsibility statement was signed
on its behalf by: David Nichol Chairman Frostrow Capital LLP Company
Secretary 27 September 2013 0203 008 4913 A copy of the
Half Year Report has been submitted to the National Storage Mechanism
and will shortly be available for inspection at
The Half Year Report will also shortly be available on the
Company's website at where up to date
information on the Company, including daily NAV, share prices and fact
sheets, can also be found. 

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Publication:PR Newswire UK Disclose
Date:Sep 27, 2013
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