Witan Pacific Investment Trust : Annual Financial Report

WITAN PACIFIC INVESTMENT TRUST PLC

(the 'Company')

ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 31 JANUARY 2020

Witan Pacific Investment Trust plc announces that its 2020 Annual Report and Accounts has been published. The full report can be accessed via the Company's website atwww.witanpacific.com and will be circulated to shareholders shortly.

The Annual General Meeting of the Company will be held on 29 June 2020 at 2.30pm. The Company continues to keep arrangements for the AGM under review, but if the AGM proceeds as a physical meeting, it will be held as a closed meeting at 14 Queen Anne's Gate, London SW1H 9AA. Attention is drawn to the important information below under the heading Annual General Meeting.

The Directors have proposed the payment of a final dividend of 4.60p per Ordinary share which, if approved by shareholders at the forthcoming Annual General Meeting, will be payable on 3 July 2020 to shareholders whose names appear on the register at the close of business on 12 June 2020 (ex-dividend 11 June 2020).

This announcement includes certain extracts from the 2020 Annual Report and Accounts. Any references to page numbers or sections in the following text are references to pages and sections in that report.

STRATEGIC REPORT

FINANCIAL SUMMARY

for the year ended 31 January 2020

Key data

	2020	2019	% change
NAV per share	363.49p	352.54p	3.1%
Share price2	333.00p	303.00p	9.9%
Discount1	8.4%	14.1%

Total return

	2020	2019
NAV per share	5.2%	-7.4%
Share price1,2	12.3%	-10.3%
Benchmark3	8.7%	-5.4%

Income

	2020	2019	% change
Revenue per share	7.15p	7.88p	-9.3%
Dividend per share	7.15p	7.00p	2.1%

Ongoing charges¹

	2020	2019
Excluding performance fees	1.00%	1.03%
Including performance fees	1.07%	1.03%

1 The financial statements below set out the required statutory reporting measures of the Company's financial performance. In addition to these, the Board assesses the Company's performance against a range of non-statutory reporting criteria which are viewed as particularly relevant for investment trusts ('Alternative Performance Measures'), which are summarised below and explained in greater detail in the Strategic Report, under the heading 'Key Performance Indicators' below. Definitions of the terms used are set out below.

2 Source: Morningstar.

3 Source: Morningstar. The benchmark for Witan Pacific Investment Trust plc is the MSCI AC Asia Pacific Free Index.

LONG-TERM PERFORMANCE ANALYSIS

for the year ended 31 January 2020

Total returns since inception of multi-manager structure (31 May 2005)

	Cumulative return	Annualised return
NAV per share1	236.25%	8.6%
Share price2	255.5%	9.0%
Benchmark3	243.0%	8.8%

Total returns over each of the past five financial years (twelve months to 31 January)

	2020	2019	2018	2017	2016
NAV per share1	5.2%	-7.4%	17.3%	30.7%	-5.6%
Share price2	12.3%	-10.3%	22.1%	26.1%	-3.5%
Benchmark3	8.7%	-5.4%	17.9%	35.3%	-5.9%

Total returns over three, five and ten years

	3 year return		5 year return		10 year return
	Cumulative	Annualised	Cumulative	Annualised	Cumulative	Annualised
NAV per share1	14.3%	4.6%	41.0%	7.1%	114.7%	7.9%
Share price2	23.0%	7.2%	49.7%	8.4%	143.3%	9.3%
Benchmark3	21.2%	6.6%	54.2%	9.1%	126.9%	8.5%

¹ Source: Morningstar/Witan Investment Services. Alternative Performance Measure (see below).

² Source: Morningstar. Alternative Performance Measure (see below).

³ Source: Morningstar. The benchmark for Witan Pacific Investment Trust Plc is the MSCI AC Asia Pacific Free Index

CHAIR'S STATEMENT

SUMMARY

· NAV total return of 5.2% for the year, compared with benchmark 8.7%

· Final dividend of 4.6p, making 7.15p for the year (+2.1%)

· Share price total return of 12.3%

· Covid-19 impact highly uncertain

· Region's long term attraction remains

Market background

Over the year under review, Asia Pacific equities underperformed most major regions as a series of local and global factors conspired to limit the upside of the region's markets. The primary concerns surrounded US/China trade negotiations, US Federal reserve policy, pro-democracy demonstrations in Hong Kong and the lack of global economic growth. Despite these headwinds, equity markets ended the year higher with our benchmark, the MSCI AC Asia Pacific Free index, up 8.7% in sterling terms. Asian equity markets started the year positively following the US Federal Reserve's suspension of its plans to raise interest rates. This gave the Asian Central banks more flexibility with their own monetary policies helping to support the growth of their respective economies. Markets continued to be influenced by the ongoing trade negotiations between the US and China through the year. The signing of a 'Phase One' deal as the year drew to a close in January was viewed positively by markets though quickly followed by concerns surrounding the impact of the rapidly spreading coronavirus (Covid-19) which led to falls of 2.4% in Asian markets in January 2020. As you will be well aware, the spread of the Covid-19 has resulted in significant market falls and volatility since then.

During our financial year, there was a wide divergence in the performance of Asian markets. Taiwan, the best performing market returned 28.7% closely followed by the China A share market which returned 28.5%, helped by MSCI's increased weighting of China A shares in its Emerging Markets Index. The developed markets in the region on the whole did better than the emerging markets with Japan and Australia gaining by 11.4% and 14.7% respectively. Japan was led higher by high-tech, healthcare and speciality materials companies while Australia enjoyed a resurgence in fortunes on the back of an improving economic environment. South Korea and the ASEAN nations were impacted by the global trade uncertainty and a slowing economic outlook. The regional laggard was Thailand which was down 8.7% having been one of the top performers in the last financial year. Pro-democracy demonstrations in Hong Kong hit retail sales there and the Hong Kong market ended the year lower. Elections in India and Australia were initially positive for markets though both leaders have been under pressure (Modi for treatment of non-Hindu minorities and Morrison for handling of bushfires). Both countries have seen their GDP growth rates slow.

The best and worst performing sectors reversed position during the year compared with the previous year. The worst performing sectors were the energy and utilities sectors. The energy sector was held back by lower oil prices while the defensive qualities of many utility companies led to underperformance in the second half of the year. In addition, both sectors are seen as structurally challenged in a world which is paying closer attention to Environmental, Social and Governance (ESG) issues. Technology, the worst performing sector last year, topped the tables this year returning over 23%. The technology sector benefitted from the return of the semiconductor cycle which was boosted by demand for processors especially in Internet of Things and 5G applications. Taiwan was the main beneficiary of this with the country's (and Company's) largest holding, Taiwan Semiconductor Manufacturing Corp (TSMC), producing a total return of over 50%.

Performance

The Company's net asset total return was 5.2% and the share price total return was 12.3% compared to the benchmark's total return of 8.7%. The NAV and share price hit an all time high in January but fell back due to the emergence of Covid-19 in China. Aberdeen outperformed the benchmark whereas disappointingly the other three managers underperformed. Manager performance is covered in detail in the Investment Review which follows my statement.

I remind shareholders of the corporate announcement made in February 2019. In summary, this stated that if the Company does not deliver NAV total return outperformance of its benchmark over the period from 31 January 2019 to 31 January 2021, the Board will put forward proposals which would include a full cash exit at close to NAV for all shareholders.

I am disappointed to report that the Company had not delivered NAV total return outperformance over the measurement period at the year-end. Including the period subsequent to the year-end, the NAV total return from 31 January 2019 to 1 May 2020 was -1.7% compared with the benchmark total return of 0.9% over the same period. The Board continues to monitor performance closely and is considering the available options in the best interests of shareholders and the Company, should the performance target not be met. In that event, any proposal that the Board might put to shareholders would include the opportunity to realise cash should shareholders so wish. The Board will update shareholders at the appropriate time, expected to be no later than the end of the first week of February 2021.

Dividend

The Board aims to increase the ordinary dividend in real terms over the long term. It has done so for each of the last fifteen years. Following the interim dividend of 2.55p paid in October 2019, the Board is proposing a final dividend of 4.6p per share. Last year's revenue earnings were exceptionally high being 21% higher than the year ended January 2018. This year's revenue earnings are down on last year though 10% higher than the previous year.

Subject to shareholder approval, the final dividend will be paid in July, with the shares trading ex-dividend on 11 June 2020. This will make a total dividend of 7.15p per share for the year, a rise of 2.1% on last year. This increased dividend equates to a yield of 2.3% based on the share price at the time of writing of 317p.

The Board believes that the payment 7.15p for the full year, which is equal to, but not more than, the year's revenue earnings per share, is a prudent stance as there is significant uncertainty surrounding earnings for the year ahead as companies deal with the threats posed by Covid-19. There are likely to be significant dividend cuts, which will impact on our earnings. We are, however, fortunate to enter this period of uncertainty with a sizable revenue reserve. It is likely that the Company will use some of these reserves to help supplement the Company's income in the current financial year.

Discount

The discount at the year-end was 8.4%. During the year, we repurchased 1,251,965 shares at a cost of £4.2m at an average discount of 10.5%. This added approximately 0.8p per share of value. Since the year-end, in line with most Investment Trusts, our discount range has widened and we have continued to buy back shares.

Environmental, Social and Governance (ESG)

ESG is a growing focus both of shareholders and our investment managers and the companies they invest in. All

our investment managers employ ESG analysts and they each have their own ESG policies as well as being signatories to the UN-supported Principles for Responsible Investment. ESG factors are used to filter out or to help value potential investments. Such due diligence also helps our managers to engage with otherwise attractive investee companies with a view to improving their standards and help put them in a stronger position to generate sustainable shareholder returns. Many Asian companies (especially those in countries such as Japan and South Korea) have attracted criticism for governance standards which fall short of generally accepted best practices. Any improvement in governance, as well as environmental and social standards, within the region could have a disproportionately positive effect on the value which investors may attribute to Asian companies in future.

Covid-19

Since the year end markets have fallen sharply, ending the bull market run as the Covid-19 virus has spread across the globe causing many thousands of fatalities. Measures taken to contain its spread have impacted economic growth and will undoubtedly result in a global recession, although its longevity and long-term impact are, as yet, unknown. Central banks have eased monetary policy and governments have unveiled enormous fiscal measures to alleviate some of the economic and social impact of the virus. Since our year-end, Sterling has fallen versus most Asian currencies which has to some extent cushioned the fall in the NAV. Notwithstanding this, the NAV has fallen by 6.6% since the year-end (as at 1 May 2020). This fall, whilst disappointing, represents a significant improvement compared to the 16.4% decline witnessed at the low for the period on 19th March. Whilst this recovery is welcome, it may be many months before normality returns and stock market volatility subsides. In the meantime, the Board is focused on ensuring the effective management of the Company and its portfolio managers. It has reviewed and is satisfied with their business continuity plans and the implementation thereof.

Outlook

It is difficult to predict how long it will take for businesses to return to their normal modus operandi. The pandemic

began in China which now appears to have contained it and has started to reopen its factories. Long-term growth forecasts for mainland China remain strong. Some sectors such as travel, will be much more hurt than others, and some companies will be casualties of the imposed tough operating conditions. From an investment perspective, an active approach to selecting stocks rather than tracking indices should prove particularly valuable in this investment climate although it may take time for these investment decisions to bear fruit. Eventually, however, Asia's economic spirits will prevail, and this, together with the extraordinary measures provided by governments and central banks, are likely to stimulate positive returns once fear subsides and the global economy reopens for business. The region's long-term attractions remain, underpinned by structural drivers such as high educational standards, rising discretionary consumption, and advances in technology.

Annual General Meeting

It is intended that the Annual General Meeting ('AGM') of the Company will be held on 29 June 2020. Further details will be made available via an announcement to the London Stock Exchange and through statements on our website. The formal Notice of AGM will be provided to shareholders under separate cover. The well-being of our shareholders is vitally important to us and if the AGM proceeds on 29 June 2020 as a physical meeting then, in light of current restrictions on movement and gatherings in England (which prohibit public gatherings of more than two people), we expect shareholders to stay at home as they will be prohibited from attending the AGM. Therefore, I encourage you to vote on the resolutions but not to attend in person. In the meantime, should you wish to get in touch with me please do so via the Company Secretary whose details are below.

Susan Platts-Martin

Chair

6 May 2020

Company Secretary contact details:

Link Company Matters Limited

Beaufort House, 51 New North Road, Exeter, EX4 4EP

email: [e-mail]

INVESTMENT REVIEW

for the year ended 31 January 2020

Performance summary

Manager performance

It was another frustrating year for the majority of Witan Pacific's managers as the environment outlined in the Chair's statement was ill-suited to their current portfolio positioning. Three of the four managers underperformed the benchmark, with Aberdeen being the sole positive contributor to relative returns. Aberdeen's focus on the best quality companies was well placed to benefit in an uncertain environment for Asian markets. These companies, with strong franchises, solid balance sheets and healthy cash flows, were favoured over the more cyclical or consumer focused stocks owned elsewhere in the portfolio. Aberdeen's total return of 14.7% was solidly ahead of the benchmark's total return of 8.7%. Matthews gave up a significant degree of the outperformance since appointment as retail, resources and automobile stocks were key detractors from returns as was their exposure to the Chinese consumer. A total return of 2.4% was a disappointing result from a manager whose long-term record has served Witan Pacific well. Robeco's investment style made up some ground in the final quarter as value stocks came back into favour, but not by enough to overcome the relative underperformance they had suffered in the first half of the year. Their portfolio ended the year 4.2% behind the benchmark. Dalton enjoyed some significant successes this year including owning two of the region's best performing companies; GDS Holdings (a Chinese data centre operator) and Shin Zu Shing (a Taiwanese manufacturer of precision hinges for technology applications). Unfortunately, these gains were largely offset by losses elsewhere resulting in a portfolio return of 4.3%. Over the longer-term, Aberdeen has produced annualised returns of 10.6% compared with the 8.8% achieved by the benchmark since 2005 and Matthews is up 10.1% (annualised) versus 9.4% for the benchmark since their appointment in 2012. Robeco and Dalton are both behind benchmark since appointment in 2017.

In terms of individual stock contribution to returns, the Company's largest position, Taiwan Semiconductor Manufacturing Company, made the greatest contribution. Indeed, technology and high-precision industries were well represented in the list of contributors over the year with Samsung Electronics, Hoya Corporation (electro-optical products), Shin Zu Shing, Shin-Etsu Chemical (semiconductor silicon), MediaTek (semiconductor manufacturer) all making significant contributions. Other successes included Breville, the Australian kitchen appliance manufacturer and Chugai Pharmaceutical in Japan. On the negative side were China Petroleum & Chemical Corp (SINOPEC), China Mobile, Seven & I (Japanese convenience retail), China Resources Power,

Turquoise Hill Resources (copper mines) and LG Chemical (industrial petrochemicals and plastics).

Japan makes up the largest single country allocation of our portfolio. Despite this, it remains the largest underweight position relative to the benchmark. Being underweight Japan was a headwind for performance as the Tokyo stock market outperformed its emerging market counterparts. The portfolio was also held back by owning certain Japanese stocks which were particularly exposed to the fortunes of the Chinese consumer. The ebb and flow of US/China trade negotiations was a key influence on Asian equity sentiment throughout the year and was not particularly helpful to manager performance.

Portfolio manager performance for the year ended 31 January 2020 and from appointment to 31 January 2020

		Managed assets1		Performance		Annualised performance2
	Appointment date	£m	%	Manager %	Benchmark %	Manager %	Benchmark %
Matthews	30 April 2012	88.0	39.6	+2.4	+8.7	+10.1	+9.4
Aberdeen	31 May 2005	58.5	26.4	+14.7	+8.7	+10.6	+8.8
Robeco	28 Sept 2017	55.0	24.8	+4.5	+8.7	+2.4	+4.9
Dalton	28 Sept 2017	20.4	9.2	+4.3	+8.7	-2.6	+4.9

Source: BNP Paribas. All performance figures are disclosed on a pre-fee basis.

Notes:

1 Excluding cash balances held centrally by the Company.

2 Since appointment.

Portfolio composition

The Company's overall portfolio is the result of individual stock selection decisions made by the managers and geographic and sector weightings are the result of these decisions rather than the result of 'top-down' asset allocation although, of course, portfolio distribution is closely monitored. The top 50 investments are shown below and the resulting country and sector allocation is shown below.

The Company's three largest country allocations are to Japan, China and South Korea which together account for 69% of the portfolio. Taiwan, Singapore, India and Australia make up a combined 24%, with the balance of 7% spread across the smaller markets of the region. Of course, the country of domicile may have little bearing on a company's fortunes or the source of its revenues. In Japan, for example, only c. 45% of revenues of Japanese listed companies emanate from their home market. The majority of revenues come from overseas with the US (25%) being the largest foreign source of revenue. The rest of Asia is approximately 20% while Europe accounts for much of the balance. This regional and global inter-dependence has been seen as one of Asia's strengths in recent years but, in a post Covid-19 world, there is a concern that globalisation could stall as major importers, such as the US, may look to 'onshore' sensitive supply chains or diversify away from reliance on individual countries. Clearly it is too early to provide a definitive answer to this particular threat, but the matter is clearly being debated at the highest levels. Therefore, it is of some comfort that major economies such as China and India are becoming increasingly dependent on their domestic economies rather than relying on being the outsource centres for developed world corporations.

There were 18 new entrants to the list of top 50 stocks this year. Many were the result of relative share price performance or additions to existing holdings but there were also six new purchases. These included Gree Electrical Appliances (China, air conditioning), Hitachi (Japan, conglomerate), Katitas (Japan, real estate management), Bandai Namco (Japan, toys and video games), Netlink (Singapore, internet infrastructure) and Keppel DC REIT (Singapore, data centres). Overall, there were 44 outright sales from the portfolio and 47 new positions purchased out of a total of 213 holdings. This level of portfolio activity is similar to the previous year which in turn was a little higher than has been typical of our managers in the past. This suggests that they are continuing to find interesting investment opportunities despite what, by industry standards, remains relatively low portfolio turnover. This is due, in part, to a broadening of the opportunity set but also down to a widening of the valuation differentials between the companies within Witan Pacific's investment universe.

The active share of the portfolio, a commonly used measure of active management, (where a portfolio identical to the benchmark has an active share of 0% while one with no holdings in common with its benchmark has an active share of 100%) was 69% (2019: 73%). The active share of our managers ranged from 78% to 99%. The forecast Price/Earnings ratio for the portfolio was 13.5 at the year-end compared with 14 for the benchmark (2019:12.5 and 12.7) indicating that Asian equities were 25% cheaper than their US counterparts (2019: 25%). Clearly, market moves post the year-end and revised earnings forecasts will have influenced the headline figures but, taken together, these statistics indicate that the portfolio is rationally valued and well diversified.

Of course, as we have seen in the recent years, active managers can go through fallow periods where positive relative performance proves elusive. This is especially the case when a small number of the largest companies are dominating stock market performance. To help demonstrate how narrow this leadership has been, we examined how many companies have contributed to the benchmark's total return in any given period. Last year half of the benchmark's 8.7% total return came from the share price performance of just 14 companies. This is approximately half as many companies as contributed a similar proportion to the positive return achieved over the last decade. Not only has performance been focused in a small number of companies but also large companies significantly outperformed their smaller brethren last year. This phenomenon was unhelpful to Witan Pacific which has approximately 30% of its portfolio invested in medium or smaller companies while the benchmark has a little over 10% in such enterprises. It is the collective managers' belief that the pendulum will swing back in favour of these companies, particularly those that are currently overlooked due to their size or a challenged business environment, assuming they are equipped to navigate the current earnings recession. Of course, in the current uncertainty, it is hard to predict when this recovery in fortunes will occur. What is clear, however, is that the clouds which are currently overshadowing the world will pass and that stock markets, being forward looking, will respond to signs that Covid-19 is being contained. This will allow the patient investor to benefit from a resumption in growth aided by the massive economic stimulus that governments around the world have provided to help limit the impact of the virus. In general, Asian economies and corporations entered the current crisis better placed than many western counterparts to weather the storm and are well placed to reap the rewards of a brighter future.

Portfolio Information

Geographical allocation

Country	Portfolio at 31 January 20201	Benchmark at 31 January 20202
Australia	6%	10%
China/Hong Kong	28%	26%
India	5%	6%
Indonesia	2%	1%
Japan	32%	37%
Malaysia	-	1%
Philippines	1%	1%
Singapore	6%	2%
South Korea	9%	7%
Taiwan	7%	7%
Thailand	2%	2%
Vietnam	2%	-
	100%	100%

¹Source: BNP Paribas - portfolio represents investments excluding cash.

²Source: MSCI.

Sector allocation

Sector	Portfolio at 31 January 20201	Benchmark at 31 January 20202
Communication Services	7%	10%
Consumer Discretionary	17%	15%
Consumer Staples	9%	6%
Energy	2%	3%
Financials	20%	19%
Health Care	6%	7%
Industrials	10%	12%
Information Technology	17%	14%
Materials	5%	6%
Real Estate	6%	5%
Utilities	1%	3%
	100%	100%

1 Source: BNP Paribas.

2 Source: MSCI.

Portfolio manager information

Dalton Investments LLC ('Dalton') is an independent investment boutique established in Santa Monica, California in 1999. Dalton manages US$3.4bn (as at 31 December 2019) in strategies focused on Asian, global and emerging market equities. The firm is independently owned by its founders, each of whom has over 30 years of investment experience, as well as the firm's senior employees.

Strategy

Dalton's Asia strategies are managed by James B. Rosenwald III, co-founder of Dalton Investments and noted authority on Asia equity investment. He is supported by multi-cultural, multi-lingual analyst teams located Santa Monica, Tokyo, Mumbai and Sydney. Dalton follows a disciplined value investment process to identify good businesses trading at a significant discount to intrinsic value and whose management share an alignment of interest with shareholders.

Aberdeen Asset Managers Limited ('Aberdeen')is a subsidiary of Aberdeen Asset Management PLC and part of the Standard Life Aberdeen PLC group of companies. Aberdeen Standard Investments is a brand of the investment businesses of Aberdeen Asset Management and Standard Life Investments. Aberdeen has delegated management of the Company's assets to Aberdeen Standard Investments (Asia) Limited (also part of the Standard Life Aberdeen PLC group of companies) which was established in Asia in 1992 and, as at 31 December 2019, was managing £47.3bn of assets in Asia. The Asia Pacific Equities team, made up of over 40 fund managers in the region, is headed up by Flavia Cheong. The team follow a fundamental investment style emphasising the identification of good quality companies on reasonable valuations relative to their growth potential.

Strategy

Aberdeen are buy-and-hold investors, focusing on companies that its research analysts identify as high quality.

This involves assessing each company on five key factors; namely the durability of the business model & moat, the attractiveness of the industry, the strength of financials, the capability of management, and our assessment of the company's ESG credentials.

Matthews International Capital Management LLC ('Matthews Asia') is an independent, privately owned firm, and the largest dedicated Asia investment specialist in the United States. Matthews believes in the long-term growth of Asia and employs a bottom-up, fundamental investment philosophy with a focus on long-term investment performance. As at 31 December 2019, Matthews Asia had US$27.3bn in assets under management.

Strategy

The Company is invested in a segregated portfolio that is managed according to the Matthews Asia Dividend Strategy; the lead portfolio manager is Yu Zhang, CFA, and the Co-Managers are Robert Horrocks, PhD, Vivek Tanneeru and Sherwood Zhang, CFA. The Asia Dividend Strategy employs a fundamental, bottom-up investment process to select dividend paying companies with sustainable long-term growth prospects, strong business models, quality management teams and reasonable valuations. The Asia Dividend Strategy is a total-return strategy focused on a balance between stable dividend yielding companies and companies with attractive dividend growth prospects, in order to provide both capital growth and a sustainable dividend yield. The strategy invests in companies of all sizes and has significant exposure to small and mid-cap stocks.

Robeco Institutional Asset Management B.V. ('Robeco') is a pure-play international asset manager founded in 1929 with headquarters in Rotterdam, the Netherlands, and 17 offices worldwide. A global leader in sustainable investing since 1995, its unique integration of sustainable as well as fundamental and quantitative research enables the company to offer institutional and private investors an extensive selection of active investment strategies, for a broad range of asset classes. As at 31 December 2019, Robeco had EUR 173 billion in assets under management, of which EUR 149 billion is committed to ESG integration. Robeco is a subsidiary of ORIX Corporation Europe N.V.

Strategy

Robeco's investment approach combines a value approach with awareness of business and price momentum with the aim of constructing portfolios of attractively-valued shares while avoiding value traps. Whilst their portfolio may have similar geographic weightings to the benchmark, it will tend to look very different from the benchmark as it has a high active share which is the result of active bottom-up stock selection. The aim is for performance to be driven by stock selection rather than country, macro-economic or political factors.

TOP FIFTY INVESTMENTS
as at 31 January 2020

Rank	Description	Country	% of total investments	Value £'000
1	Taiwan Semiconductor The world's largest dedicated semiconductor foundry	Taiwan	3.9	8,352
2	Samsung Electronics Global market leader in semiconductors, mobile phones, televisions and OLED panels	South Korea	3.8	8,284
3	Aberdeen Global Indian Equity Fund UCITS fund providing cost-effective access to a concentrated portfolio of Indian equities	India	2.3	4,846
4	AIA Group A leading insurance and wealth management service provider in the Asia Pacific region	Hong Kong	1.8	3,841
5	Ping An Insurance Personal and Corporate insurance and services across Greater China	China	1.7	3,748
6	Aberdeen Global China A Share Fund UCITS fund providing cost-effective access to a concentrated portfolio of Chinese equities	China	1.7	3,678
7	Minth Group Auto-parts manufacturer with clients representing over 80% of the world's car production	China	1.5	3,259
8	Hyundai Mobis Korean based manufacturer of automotive and environmental products with global operations	South Korea	1.3	2,811
9	Hoya Corporation Japanese manufacturer of glass products for optical, electronic and medical applications	Japan	1.2	2,581
10	China Construction Bank CCB provides banking services to public, corporate and private sectors throughout China	China	1.1	2,476
11	Misumi Group Worldwide distribution of precision machine parts, automation components and industrial supplies	Japan	1.1	2,471
12	Anritsu Corporation Electronic systems, instruments and devices chiefly in the information and communication fields	Japan	1.1	2,430
13	Tencent Holdings Chinese internet and mobile value-added service provider	China	1.1	2,387
14	Seven & I Holdings Japanese convenience store operator with over 50,000 7-Eleven stores worldwide	Japan	1.0	2,232
15	LG Chemical Manufacturer of speciality chemicals used in life sciences, mobile phone, OLED and innovative battery markets	South Korea	1.0	2,182
16	Shin-Etsu Chemical A leading manufacturer of polyvinyl chloride, silicon and silicon wafers for semiconductors	Japan	1.0	2,178
17	NTT DoCoMo Japan's largest telecoms company	Japan	1.0	2,084
18	Shin Zu Shing Manufactures hinge assembly, springs and stamping parts for communication and computer products	China	1.0	2,074
19	Pigeon Corporation Manufactures baby, maternity and elderly care products distributed in Japan, China and across Asia	Japan	1.0	2,069
20	Shenzhou International Chinese textile manufacturer supplying the global branded sports goods and casual-wear market	China	1.4	2,048
21	United Overseas Bank Singaporean multinational banking organisation with over 500 offices in 19 countries	Singapore	1.0	2,046
22	BHP Group Australian multinational resources company with interests in metals, mining and petroleum production	Australia	0.9	2,020
23	China Merchants Bank Chinese commercial bank	China	0.8	1,819
24	Gree Electric Appliances The world's largest air conditioning manufacturer and industrial applications	China	0.8	1,752
25	BGF Retail A food and beverage retail chain operating over 8,000 convenience stores throughout South Korea	South Korea	0.8	1,658
26	CK Hutchison Holding company including ports, telecoms, retail, infrastructure, energy and leasing operations	Hong Kong	0.8	1,658
27	Sun Art Retail Leading Chinese hypermarket operator with 450 sites in over 200 cities as well as a strong online presence	China	0.8	1,630
28	Hitachi Manufacturer of communications and electronic equipment, heavy electrical and industrial machinery and consumer electronics	Japan	0.7	1,614
29	Kao Corporation Manufacturer of speciality chemicals, edible oils/acids and beauty, healthcare and homecare products	Japan	0.7	1,598
30	HKBN Hong Kong based broadband network provider with mobile broadband licence	Hong Kong	0.7	1,593
31	Japan Exchange Asia's largest stock exchange by market cap and third largest by trading volume	Japan	0.7	1,549
32	Thai Beverage Thailand's largest beverage company with overseas operations in Scotland, Singapore and China	Singapore	0.7	1,531
33	Lixll Group Manufacturer of aluminium housing materials including doors, windows and curtain walls	Japan	0.7	1,510
34	ICICI Bank Retail and corporate banking services across India	India	0.7	4,497
35	Katitas Co Japanese real estate agency and property management	Japan	0.7	1,492
36	Keyence Corporation Manufactures and sells sensors and measuring instruments used in factory automation equipment	Japan	0.7	1,464
37	WH Group Chinese meat and food processing company	China	0.7	1,460
38	Bank Central Asia One of South-East Asia's largest banks offering financial services to both individual and business customers	Indonesia	0.7	1,443
39	Breville Group Manufacturer of small domestic appliances marketed under various brands around the world	Australia	0.7	1,441
40	Sumitomo Mitsui Financial One of the market leaders in the Japanese banking and financial services industry	Japan	0.7	1,400
41	Bandai Namco Japanese toy and video games manufacturer	Japan	0.6	1,392
42	China Resources Land Property Investment and Development and ancillary services	Hong Kong	0.6	1,374
43	BELLSYSTEM24 Japanese CRM solutions provider including call centre outsourcing, technology and consulting services	Japan	0.6	1,358
44	NetLink NBN Singapore's Next Generation Broadband Network provider	Singapore	0.6	1,353
45	Keppel DC Reit Asia's first pure-play data centre REIT	Singapore	0.6	1,353
46	Minda Industries Designs and manufacturers switches and other components for cars, motorcycles and off-road vehicles	Indonesia	0.6	1,344
47	Yuexiu Transport Infrastructure Invests in, develops and managers toll roads, expressways and bridges in China	China	0.6	1,330
48	Globe Telecom Provider of mobile and fixed-line telecoms services to Philippine individuals and business consumers	Philippines	0.6	1,297
49	DBS Group Full service investment bank involved in consumer banking, brokerage and asset management	Singapore	0.6	1,267
50	Nifco Manufacturers synthetic fasteners and plastic components for automobiles and home appliances	Japan	0.6	1,263

The value of the fifty largest holdings represents 51.6% (31 January 2019: 48.8%) of the Company's total investments. The full portfolio listing is published monthly (with a three-month lag) on the Company's website. The country shown is the country of incorporation or, in the case of funds, the country of risk.

CORPORATE REVIEW

Witan Pacific is an investment trust, which was founded in 1907 and has been listed on theLondon Stock Exchange since its foundation. It operates an outsourced business model, under the direction and supervision of the Board of Directors.

Strategic Report

The Strategic Report below has been prepared in accordance with the requirements of Section 414 of the Companies Act 2006 and best practice. Its purpose is to provide information to the shareholders of the Company and help them to assess how the Directors have performed their duty to promote the success of the Company, in accordance with Section 172 of the Companies Act 2006.

Strategy and investment policy

Investment policy

The Company's investment objective is to provide shareholders with capital and income growth from a diversified portfolio of investments in the Asia Pacific region designed to outperform the MSCI AC Asia Pacific Index in sterling terms. Since 2005, the Company has followed a multi-manager approach, using a blend of active portfolio managers with the aim of outperforming the benchmark. The investment policy includes investments in a wide range of regional markets, including the main Southeast Asian and North Asian markets as well as Japan, India and Australia. The range of investment opportunities for the portfolio managers is not limited to the constituents of the benchmark or benchmark weightings. This means that Witan Pacific's portfolio is likely to differ from the benchmark. Witan Pacific invests primarily in equities: in normal circumstances the Board expects the portfolio's equity exposure to be a minimum of 90% of net assets. Therefore, the overall performance of regional equity and currency markets and the operating performance of specific companies selected by the managers is likely to have the most significant impact on the performance of the Company's net asset value.

Investment risk is managed through:

■ the selection of at least two portfolio managers. Details of the proportion of assets managed by them are set out above;

■ the portfolio managers are required to spread their investments over a number of securities within the region;

■ monitoring of portfolio manager performance and portfolios. Portfolio manager performance against the benchmark is set out above; and

■ monitoring of sector and country allocations of the manager portfolios and of the resulting combined portfolio.

Implementation of the investment policy in the year

During the year, the Company invested its assets with a view to spreading investment risk and, in accordance with the investment objective set out above, maintained a diversified portfolio, the analysis of which is shown above.

The Directors receive regular reports on investment activity and portfolio construction at meetings of the Board, as well as periodically outside of these meetings.

The Board holds an annual strategy meeting. The Directors use the strategy day to consider, amongst other things, the relevance of the investment mandate, the multi-manager approach, the marketing of the Company and the discount. It further believes that, if superior returns are achieved over the long term, the discount should narrow. As a result of its strategy discussions in February 2019, the Board announced that if outperformance is not achieved between 1 February 2019 and 31 January 2021, proposals will be put to shareholders, including a full cash exit at close to NAV.

The Company sponsors a marketing programme provided by Witan Investment Services Ltd. (WIS). This programme communicates with private investors and their financial advisers, as well as professional investors, to help them make informed decisions about whether investing in the Company's shares can help them to meet their investment objectives.

The unbundling of investment management from the Company's other necessary services has provided transparency of the Company's cost base as well as flexibility in case it becomes desirable to change the service provider in a particular area. The Board takes care to ensure strict monitoring and control of costs and expenses.

Please also see the Chair's Statement and the Investment Review for further commentaries on the year.

Business model

The Company is an investment trust and aims to provide shareholders with capital and income growth from a diversified portfolio of investments in the Asia Pacific region. The Board achieves this through:

■ the selection of suitable portfolio managers;

■ the choice of investment benchmark;

■ investment guidelines and limits;

■ the appointment of providers for other services required by the Company; and

■ the maintenance of an effective system of oversight, risk management and corporate governance.

The Board's role in investment management

Although the Board retains overall risk and portfolio management responsibility, it appointed the portfolio managers after a disciplined selection process focused on their scope to add value and their fit with the overall balance of the portfolio. The selection of individual investments is delegated to these external portfolio managers, subject to investment limits and guidelines.

The portfolio is managed in four segregated accounts, held at the Company's custodian. This enables the Company to view the portfolio as a whole and to analyse its risks and opportunities as well as those at the level of each portfolio manager's portfolio.

Information regarding the proportion of Witan Pacific's assets managed by each and of their performance during the year is set out above.

Our selected benchmark

The Company's benchmark is a reference point for a comparison of results from an investment in Witan Pacific.

The benchmark is the MSCI AC Asia Pacific Free Index in sterling terms, with gross dividends reinvested ('MSCI Index' or 'benchmark').

The benchmark is a widely diversified regional index which includes the principal countries in the Asia Pacific region. The portfolio managers select stocks which they consider attractive, wherever they are located in the region. As a result, the geographical location of the holdings differs from the benchmark. The geographical distribution of the portfolio and of the benchmark are set out above.

Priorities for the year ahead

For the year ending 31 January 2021, the key priorities for Witan Pacific include:

■ Investment. Monitor and manage the portfolio managers with the objective of delivering outperformance of the benchmark to shareholders whilst assessing the risk approach of each portfolio manager.

■ Performance. The Board is committed to securing outperformance of the benchmark and therefore announced that, if outperformance is not achieved between 1 February 2019 and 31 January 2021, proposals will be put to shareholders, including a full cash exit at close to NAV.

■ Governance.Ensure effective oversight of all service providers and compliance with all applicable rules and guidelines, and monitor supplier risk including cyber risk.

■ Costs.Monitor and manage costs carefully, with a view to achieving an ongoing charges ratio in line with the Company's target of 1% or less per annum.

■ Marketing and Communications. Communicate Witan Pacific's distinct investment approach to existing and potential shareholders. The marketing programme, in combination with the buy-back policy, aims to reduce the Company's discount over time.

■ Covid-19. There is currently significant uncertainty in relation to the impact of the spread of Covid-19. The Board will monitor its impact both on its investments and also on its suppliers.

Dividend policy

The Company aims to grow its dividend in real terms over the long term. The Company has substantial levels of revenue reserves available to smooth the effect of temporary fluctuations in dividends from investments, where this is viewed as prudent and beneficial for shareholders. Shareholders agreed at the 2013 AGM to amend the Articles of Association ('Articles') to permit the distribution of Capital Reserves as dividends. The Company has stated that this is to confer flexibility in pursuing its investment objectives and that it would be the norm for dividend payments to be funded from revenue over the cycle.

The Company paid a final dividend for the previous year of 4.50p in June 2019 and an interim dividend of 2.55p in October 2019 for the year under review. The Company has proposed a final dividend for 2019/20 of 4.60p, making a total payment for the year of 7.15p per share. This is an increase of 2.1% on the previous year, which compares with a 1.8% rise in the Consumer Price Index ('CPI') during the year.

Please see commentary in Chair's statement on dividends, particularly in relation to the potential impact of Covid-19 on investee company dividends.

Key performance indicators

The Board monitors success in implementing the Company's strategy against a range of Key Performance Indicators ('KPIs') which are viewed as significant measures of success over the longer term. Although performance relative to the KPIs is also monitored over shorter periods, it is success over the long term that is viewed as more important, given the inherent volatility of short-term investment returns. The principal KPIs in place for the year under review are set out below, with a record (in italics) of the Company's performance against them during the year.

NAV total return and total shareholder return^*.

Long-term outperformance of the combined portfolios compared with the benchmark is a key objective.

The NAV total return was 5.2%, underperforming the benchmark total return of 8.7%, while the share price total return was 12.3%. Since the adoption of the multi-manager strategy in 2005, the NAV total return was 236.2%, underperforming the benchmark return of 243.0%. The share price total return was 255.5% reflecting the narrowing of the discount (see below).

Investment performance by the individual portfolio managers.

Long-term outperformance relative to the benchmark is sought.

Over the year, Aberdeen outperformed the benchmark, while Dalton, Matthews and Robeco underperformed. Aberdeen and Matthews have both outperformed the benchmark since appointment. Dalton and Robeco have both underperformed since appointment in 2017. Details are shown above.

Annual growth in the dividend.

The Company's aim is to deliver increases in real terms, ahead of UK inflation.

The dividend for the year ended 31 January 2020 rose (subject to shareholder approval) by 2.1%, compared with an inflation rate (CPI) of 1.8% during the year. Since the adoption of the multi-manager strategy, dividends have grown at an annualised rate of 13.6% compared with an annualised inflation rate of 2.2%.

Discount to NAV*.

Avoid excessive fluctuations in the discount and avoid a discount which is anomalously wide compared with other trusts investing in the region by the use of share buy-backs, subject to market conditions.

The discount ended the financial year at 8.4% compared with 14.1% a year earlier. The average discount of the Company over the year was 10.3% (2019: 14.6%).

The Company bought back 1.25m shares during the year at an average discount of 10.5% (2.0% of shares in issue (excluding treasury shares) at the prior year end), which both mitigated discount volatility and added 0.8p to net asset value.

The level of ongoing charges*.

Costs are managed with the objective of delivering an ongoing charges figure of less than 1% (excluding performance fees). Where higher charges arise, these are carefully evaluated to ensure there is a net benefit for shareholders. The increasingly stringent regulatory environment has resulted in additional pressure on costs. The Board considers its level of costs remains competitive compared to similar investment opportunities.

The ongoing charges figure excluding performance fees was 1.00% (2019: 1.03%) while the ongoing charges figure including performance fees was 1.07% (2019: 1.03%). The ongoing charges figure including performance fees is higher this year as the one manager with a performance fee structure significantly outperformed the benchmark.

*Alternative Performance Measure not defined under UK GAAP. For definitions see Glossary.

Gearing and the use of derivatives

Borrowings and gearing

The Company has the power under its Articles to borrow up to 100% of the adjusted total of capital and reserves. However, in accordance with the Alternative Investment Fund Managers' Directive ('AIFMD'), the Company was registered by the FCA as a Small Registered UK Alternative Investment Fund Manager ('AIFM') with effect from 1 April 2014. To retain its Small Registered UK AIFM status, the Company is unable to employ gearing. It is therefore the Company's approach not to employ gearing, subject to periodic review of the costs and benefits of full AIFM authorisation.

The Company's segregated portfolio managers are not permitted to borrow within their portfolios, but may hold cash if deemed appropriate.

Use of derivatives

The Company's delegated managers are not permitted to use derivatives or to gear their portfolios, nor does the Company use derivatives itself.

Market liquidity and discount

The Board believes that it is in shareholders' interests to buy back the Company's shares when they are standing at a substantial and anomalous discount to the Company's NAV. The objective is to avoid excessive fluctuations in the discount and avoid a discount which is anomalously wide compared with other trusts investing in the region by the use of buy-backs, subject to market conditions. The purchase of shares priced at a discount to NAV per share will, all other things being equal, increase the Company's NAV per share and benefit the Company's share price. During the year, the Company bought back 1,251,965 shares into treasury, at times when supply and demand in the market were out of balance and the discount was particularly wide. This added 0.8p to NAV per Ordinary share.

Since the year end to 1 May 2020, the Company has repurchased a further 102,155 Ordinary shares, which have been placed into treasury. Treasury shares may only be reissued at a premium to the prevailing NAV.

Witan Pacific is an investment trust, so the purpose of 'marketing' is to provide effective communication of developments at the Company to existing and potential shareholders to help sustain a liquid market in the Company's shares. Clear communication of the Company's investment objective and its success in executing its strategy make it easier for investors to decide how Witan Pacific fits in with their own investment objectives. Other things being equal, this should help the shares to trade at a narrower discount, from which all shareholders would clearly benefit.

In view of these potential benefits, the Company has felt for many years that it is beneficial to incur the limited costs of operating a marketing programme (through WIS) in order to disseminate information about our investment strategy and performance more widely. This programme communicates with private and professional investors, financial advisers and intermediaries using a range of media (including direct meetings, press interviews and advertising through traditional media and the internet). The Company also provides an informative and easy to use website (www.witanpacific.com) to enable investors to make informed decisions about including Witan Pacific shares in their investment portfolios.

S.172 (1) Statement

Background

Directors have a duty (under section 172 of the Companies Act 2006) to promote the success of a company for the benefit of shareholders as a whole. In doing so, a company must have regard to other broader matters including the likely long-term consequences of any decision, and on the need to foster a company's relationships with its employees, suppliers, customers and others and to have regard to their interests, the impact of a company on the community and the environment, and the desirability of maintaining a reputation for high standards of business conduct.

Stakeholders

The Board seeks to understand the needs and priorities of the Company's stakeholders and these are taken into account during all its discussions and as part of its decision-making. During the year under review, the Board discussed which parties should be considered as stakeholders of the Company and concluded that, as the Company is an externally managed investment trust and does not have any employees or customers in the traditional sense, its key stakeholders comprise its shareholders, suppliers (comprising mainly its portfolio managers, executive manager, third party service providers and advisers), but they also take account of the Company's responsibilities to regulators and to the environment and the wider community. The section below discusses the actions taken by the Company to ensure that the interests of stakeholders are taken into account.

Shareholders The Board is committed to maintaining open channels of communication and to engage with shareholders in a manner which they find most meaningful, in order to gain an understanding of the views of shareholders. These include: § Annual General Meeting- Whilst the Company welcomes and encourages attendance and participation from shareholders at the AGMs, in view of specific restrictions this year in relation to Covid-19, attendance at the AGM is likely to be, exceptionally, severely restricted (see Chair's Statement). Under normal circumstances, shareholders have the opportunity to meet the Directors and the Executive Manager and to address questions to them directly and there are presentations on the Company's performance and the future outlook; § Publications- The Annual Report and Half-Year results are made available on the Company's website and are circulated to those shareholders requesting hard copies. These reports provide shareholders with a clear understanding of the Company's portfolio and financial position. This information is supplemented by a monthly factsheet which is available on the website and the publication of which is announced via the stock exchange. Feedback and/or questions the Company received from shareholders help the Company evolve its reporting, aiming to render the reports and updates transparent and understandable; § Shareholder concerns- In the event shareholders wish to raise issues or concerns with the Directors, they are welcome to do so at any time by writing to the Chair at the registered office. The Senior Independent Director and other members of the Board are also available to shareholders if they have concerns that have not been addressed through the normal channels; and § Investor Relations updates - at every Board meeting, the Directors receive updates from the Executive Manager on the share trading activity, share price performance, the Company's share register and investor relations. To gain a deeper understanding of the views of its shareholders and potential investors, on behalf of the Company, the Executive Manager carries out a program of one to one and group meetings with existing and potential shareholders to update them on the strategy and performance of the Company. Other Stakeholders

The Executive and portfolio managers - Maintaining a close and constructive working relationship with the Executive Manager (WIS) and the portfolio managers is crucial as the Board. The portfolio managers aim to achieve long term returns, in line with the Company's investment objective. WIS has a critical role in monitoring the portfolio managers and assisting the Board in its review of their performance. The Board meets with the Executive Manager at least every quarter, and there is also regular e-mail correspondence. The Board has visited its portfolio managers at their main overseas offices every other year; has at least annual video conference calls with them, receives monthly reports, and also has regular e-mail contact either direct or via WIS. Further details on the investment management and executive management arrangements can be found below. § Suppliers - The Board maintains regular contact with its key external providers and receives regular reporting from them, both through the Board and committee meetings, as well as outside of the regular meeting cycle. Their advice and views are routinely taken into account. The Audit Committee formally assesses their performance, fees and continuing appointment annually to ensure that the key service providers continue to function at an acceptable level and are appropriately remunerated to deliver the expected level of service. The Audit Committee also reviews and evaluates the financial reporting control environments in place at each service provider. § Regulators - The Company regularly considers how it meets various regulatory and statutory obligations and follows voluntary and best-practice guidance, and how any governance decisions it makes can have an impact on its stakeholders, both in the shorter and in the longer-term. § Environment and Community - In view of the out-sourced nature of the Company's operations, the Company has very little direct impact on the community or the environment. However, the Directors recognise that the portfolio managers can influence an investee company's approach to Environmental, Social and Governance (ESG) matters, and therefore discusses ESG matters regularly with its portfolio managers (see section on ESG). The above mechanisms for engaging with stakeholders are kept under review by the Directors and will be discussed on a regular basis at Board meetings to ensure that they remain effective. Should the shareholders and other stakeholders of the Company wish to contact the Chair of the Company, they can do so by contacting the registered office of the Company or by sending an email for the attention of the Chair [e-mail]. Culture The Board agrees that establishing and maintaining a healthy corporate culture, based on integrity, ethical behaviour, good governance and openness, will support the delivery of its purpose and strategy, and is essential both to the reputation of the Company and to its success. The interaction and relationships between Board members and between the Board and its stakeholders are particularly important. The Board seeks to promote a culture of openness, debate and integrity, both in its own internal discussions and through ongoing dialogue and engagement with all of its service providers. The Board recognises that it is essential that the Chair and the Board lead by example. The Company seeks to comply both with relevant codes of corporate governance and with general best practice. It has a number of policies and procedures in place to assist with maintaining a culture of good governance including those relating to diversity, Directors' conflicts of interest and Directors' dealings in the Company's shares. The Board assesses and monitors compliance with these policies as well as the general culture of the Board through Board meetings and in particular during the annual evaluation process which is undertaken by each Director (for more information see the corporate governance statement section in the full Annual Report).

Corporate and operational structure

Investment management arrangements

Each of the portfolio managers, Aberdeen, Dalton, Matthews and Robeco, is entitled to a base management fee, levied on the assets under management. The base management fee rates for managers in place at 31 January 2020 ranged from 0.2% to 0.85%. The weighted average base management fee was 0.56%. In addition, one portfolio manager (which is also entitled to the lowest base fee) is entitled to a performance fee, calculated according to investment performance relative to the benchmark. These agreements can be terminated on one month's notice. Further details on fee arrangements are set out on in the full Annual Report.

The Company's external portfolio managers may use certain services which are paid for, or provided by, various brokers. In return, they may place business, including transactions relating to the Company, with those brokers.

Operational management arrangements

In addition to the appointment of external managers, Witan Pacific contracts with third parties for the supporting services it requires, including:

■ WIS for Executive Management services; WIS has experience of the issues arising in operating a multi-manager structure, and manages and monitors the outsourced structure and relationships, provides commentary on investment issues and provides marketing services. The Executive Manager reports to the Board on key aspects at all Board meetings as well as drawing attention as required to matters requiring non-routine review by the Board;

■ BNP Paribas Securities Services for investment accounting and administration;

■ JP Morgan Chase Bank, N.A. for investment custody services;

■ Link Market Services Limited for company secretarial services (through Link Company Matters Limited);

■ the Company also takes specialist advice on regulatory and compliance issues and, as required, procures legal, investment consulting, financial and tax advice;

■ as with investment management, the contracts governing the provision of these services are formulated with legal advice where necessary and stipulate clear objectives and guidelines for the level of service required; and

■ Share Savings Plan. WIS no longer manages the Share Savings Plan, and holders have been offered alternative means of holding their shares.. The Board encourages all shareholders to subscribe to the Company's newsletters and factsheets, which can be done on the Company's website.

Premises and staffing

Witan Pacific has no premises nor employees.

Environmental, human rights, employee, social and community issues

The Company's core investment activities are undertaken by Aberdeen, Dalton, Matthews and Robeco, which consider policies relating to environmental and social matters as part of their investment process. The Company has therefore not reported on these or community issues. The Company is not within the scope of the Modern Slavery Act 2015 as it has insufficient turnover and is therefore not obliged to make a human trafficking statement. The Board reviews its portfolio managers' reports on their policies relating to environmental, social and corporate governance issues and discusses the managers' approaches with them. The portfolio managers are also prepared to use their votes in these areas as part of the proper management of the investments made on the Company's behalf and the Board periodically reviews their approaches with them.

The Board of Directors consists of one female and three male non-executive Directors. It is the Directors' policy to appoint individuals on merit whilst taking into account the balance of skills and experience required by the Board. The Board's diversity policy is set out in the full Annual Report.

Key Information Document

The European Union's Packaged Retail Investment and Insurance based Products ('PRIIP's) Regulations cover Investment Trusts and require boards to prepare a key information document ('KID') in respect of their companies. Witan Pacific's KID is available on the Company's website. Investors should note that the processes for calculating the risks, costs and potential returns in the KID are prescribed by EU law and the Company has no discretion over the format or content of the document.

The illustrated performance returns in the KID cannot be guaranteed and, together with the prescribed cost calculation and risk categorisation, may not reflect figures for the Company derived using other methods. Accordingly, the Board recommends that investors also take account of information from other sources, including the Annual Report.

Cost analysis

The Company exercises strict scrutiny and control over costs. Any negotiated savings in investment management or other fees will directly reduce the costs for shareholders. The information on costs is collated in a single table below. This indicates the main cost headings in money terms and as a percentage of net assets.

Category of costs1	Year ended 31 January 2020		Year ended 31 January 2019
	£m	% of average net assets	£m	% of average net assets
Management fees2	1.48	0.65	1.61	0.69
Other expenses	0.81	0.36	0.80	0.34
Non-recurring expenses	(0.03)	(0.01)	(0.01)	0.00
Ongoing charges3	2.26	1.00	2.40	1.03
Portfolio manager performance fees	0.16	0.07	-	-
Ongoing Charges including performance fees	2.42	1.07	2.40	1.03
Portfolio transaction costs	0.27	0.12	0.27	0.11

¹ For a full breakdown of costs, see notes 3 and 4 below.

²Figures inclusive of fees paid to WIS.

³ Ongoing charges exclude performance fees, if payable. No performance fees were payable in 2018/19.

Principal risks and uncertainties

The Audit Committee regularly (at least annually) reviews the risks facing the Company by maintaining a detailed record of the identified risks in the form of a Risk Matrix which assesses the likelihood of such risks occurring and the severity of the potential impact of such risks. This enables the Board to take action and develop strategies in order to mitigate the effect of such risks to the extent possible. An analysis of financial risks can be found in note 16 to the financial statements below.

A robust assessment of the principal risks has been carried out, including a review of those risks which would threaten the Company's business model, future performance, solvency or liquidity. Emerging risks are considered at each Audit Committee meeting. An assessment is made on the threat and means of mitigation. A record is maintained and emerging risks are incorporated in the Risk Matrix as and when necessary.

Information about the Company's internal control and risk management procedures can be found in the Audit Committee Report in the full Annual Report.

The Board has identified the following as being the principal risks and uncertainties facing the Company:

Risk	Mitigation
Inappropriate business strategy and/or changes in the financial services market leads to lack of demand for the Company's shares and to an increase in the discount of the share price to the NAV.	The Board reviews its strategy at an annual strategy meeting. It considers investor feedback, consults with its broker and reviews its marketing strategy. It regularly reviews its discount control policy. The strategy is considered in the context of developments in the wider financial services industry.
Adverse market conditions, particularly in equities and currencies, lead to a fall in NAV.	The Company's exposure to equity market risk and foreign currency risk is an integral part of its investment strategy. Adverse markets may be caused by a range of factors including economic conditions, political change, natural disasters and health epidemics. Volatility in markets from such factors can be higher in less developed markets. Market risk is mitigated to a degree by careful selection of portfolio managers and appropriate portfolio diversification.
Poor investment performance, including through inappropriate asset allocation, leads to value loss for shareholders in comparison to the benchmark or the peer group.	The performance of the portfolio managers is reviewed at each Board meeting, and compared against the benchmark and similar investment opportunities. Exposures against companies and countries are reviewed against benchmark exposure to identify the highest risk exposures. In a multi-manager structure, different portfolio construction styles can mitigate underperformance. The Board reviews the investment strategies of the managers at least annually.
A reduction in income received from the companies in which it invests, from adverse currency movements, or from portfolio re-allocation could lead either to lower dividends being paid by the Company or to dividends being paid out of reserves.	The Board reviews forecast income at each Board meeting, and also receives longer-term views on income from the portfolio managers. The Company has substantial revenue reserves which can be utilised without requiring the use of other reserves.
Operational failure leads to reputational damage and potential shareholder loss. Operational issues could include: errors, control failures, cyber attack or business discontinuity at service providers.	The Audit Committee reviews the controls including business continuity procedures at the service providers and requires appropriate reports. Separate records of investments are maintained by the portfolio managers, custodian and fund accountants, and are reconciled. The Executive Manager also monitors the performance and controls of third party providers.
Tax and regulatory change or breach leads to the loss of investment trust status and, as a consequence, the loss of the exemption from taxation of capital gains. Change in tax, regulation or laws could make the activities of the Company more complicated, more costly or even not possible. Other regulatory breaches (including breaching the listing rules, market abuse regulations and AIFMD) could result in reputational damage and costs. Regulatory change can also increase the costs of operating the Company.	Compliance with investment trust status regulations is reviewed at each Board meeting. The Board reviews compliance with other regulatory, tax and legal requirements and is kept informed of forthcoming regulatory changes.

Covid-19

Since January 2020 the spread of Covid-19 has been a fast emerging risk to the Company. There are a number of risks. Firstly, the disruption to demand and supply chains, and general uncertainty around the eventual severity, has caused significant volatility in markets with consequences for the value of the Company's investments. Secondly, the potential disruption to the Company's service providers could lead to impairment in the level of service provided to the Company. The Company addresses the market risk as it does other market risk through diversification of its investments and careful monitoring of the impact on investee companies. The Company also monitors its service providers to ensure there is adequate business continuity. Thirdly, there is a risk that income received will be substantially reduced, particularly in the year to 31 January 2021. This is being monitored carefully by the Board (see Chair's statement).

EU Departure transition period

The Board has also considered the implications for the Company in connection with the uncertainty surrounding trade deals with the EU and other countries. Given the Company is invested in the Asia Pacific region, the greatest impact has been, and may continue to be, the movement of sterling against international currencies. Because the value of the Company's investments, and income received, is denominated substantially in overseas currencies, any fall in sterling will increase the value of those investments, and income received, in sterling terms. Conversely, any rise in sterling will decrease the value of those investments, and income received, in sterling terms.

Viability

In accordance with the provisions of the UK Corporate Governance Code, the Board has assessed the viability of the Company, and selected a period of five years for the assessment.

The Board considers five years to be a reasonable period for its assessment. The Board views the Company as a long-term investment vehicle, with strong financials and good liquidity in its portfolio. In selecting a five year period, the Board has balanced that view against the inherent uncertainties in equity markets.

In conducting the assessment, the Board has taken account of the following:

■ The Company is an investment trust founded in 1907, whose investment portfolio is invested in readily realisable listed securities. The portfolio is well diversified in terms of both sector and geography within its Asia Pacific remit.

■ The Company's Portfolio is invested in quoted securities which can be sold at short notice to raise cash if required. There are no unquoted securities in the portfolio.

■ The Company currently has no borrowings.

■ The expenses of the Company are reasonably predictable, modest in comparison to the assets and adequately covered by investment income (investment income to 31 January 2020 was 2.4 times total expenses), and the Board expects there to continue to be adequate cover taking account of any decline in investment income resulting from the impact of Covid-19.

The Board has also taken account of its strategy and investment policy set out in the full Annual Report, and the principal risks and uncertainties set out above. The Company operates a robust risk control framework to manage those risks and uncertainties. As part of its risk assessment, the Board has considered the potential impact of Covid-19 on the Company (see above).

The Board's assessment assumes that there is continuing demand amongst shareholders for the investment trust structure and the mandates which the Board gives its managers.

The Board has also assessed the viability of the Company in the light of the Board's statement in February 2019 and as stated in the Chair's Statement above, that unless NAV outperformance is delivered from 31 January 2019 to 31 January 2021, the Board will put forward proposals which would include the option of a full cash exit. As stated above, there are several risks resulting from the impact of Covid-19, but the Board's assessment is that there is no threat to the viability of the Company, particularly in view of the Company having no borrowings, a liquid portfolio and suppliers with strong business continuity procedures.

Taking account of all of the above, the Board confirms that it has a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the five year period of this assessment.

Approval

This Strategic Report has been approved by the Board and signed on its behalf by

Susan Platts-Martin

Chair

6 May 2020

BOARD OF DIRECTORS

Susan Platts-Martin - Chair

Dermot McMeekin - Senior Independent Director, Nomination and Remuneration Committee Chairman

Chris Ralph

Andrew Robson - Audit Committee Chairman

All of the Directors are members of the Audit Committee and of the Nomination and Remuneration Committee.

EXTRACTS FROM THE DIRECTORS' REPORT

Share capital

At 31 January 2020, there were 65,944,000 Ordinary shares of 25p each in issue (2019: 65,944,000 Ordinary shares), of which 4,812,561 were held in treasury (2019: 3,560,596 treasury shares). At the 2019 AGM, the Directors were granted authority to buy back up to a maximum of 9,266,822 Ordinary shares. At 31 January 2020, the unused authority to buy back Ordinary shares was 8,578,229 Ordinary shares. This authority will expire at the conclusion of the 2020 AGM when the Directors will seek a renewal of the authority.

During the year to 31 January 2020, the Company repurchased a total of 1,251,965 Ordinary shares to hold in treasury representing 2.0% of the shares in issue (excluding shares held in treasury) as at the prior year end. The nominal value of Ordinary shares repurchased during the year was £312,991. The total consideration for these repurchases was £4,153,000.

Following the year end, the Company has repurchased a further 102,155 Ordinary shares to hold in treasury (as at 1 May 2020), with a nominal value of £25,539. The total consideration for these repurchases was £311,000.

At 1 May 2020, there were 65,944,000 Ordinary shares of 25p each in issue. 4,914,716 Ordinary shares were held in treasury, representing 7.4% of the issued Ordinary share capital as at 31 January 2020. Each Ordinary share carries one vote, therefore, the total votes in issue were 61,029,284

The share purchases described above were performed in accordance with the Company's stated policy of buying back shares when the Company's shares are standing at a substantial and anomalous discount to their NAV.

The impact to the NAV as a result of the buy-back activity for the year ended 31 January 2020 was an enhancement of £0.5m or 8p per Ordinary share.

At the 2019 AGM, the Directors were also granted authority to allot ordinary shares up to an aggregate nominal amount of £1,546,661. No shares have been issued under this authority. This authority is due to expire at the conclusion of the next AGM, when proposals for its renewal will be sought.

Results and dividend

Revenue return after taxation	£'000
Net revenue return after taxation	4,412
Dividends paid/payable:	(1,569)
Interim dividend of 2.55p per share
Proposed final dividend of 4.6p per share	(2,807)
Residual revenue return after dividends	36
At 31 January 2020
Revenue reserve1	13,191

¹ Revenue reserve excludes the proposed final dividend for the year ended 31 January 2020 of £2,807,000. Subject to approval by shareholders at the AGM, this dividend will be payable on 3 July 2020 to shareholders on the register on 12 June 2020 (see Chair's Statement on page 4 of the Annual Report).

Going concern

The activities of the Company, together with the factors likely to affect its future development, performance, financial position and liquidity position are described in the Strategic Report. In addition, the Company's policies and processes for managing its key financial risks are described in note 16 below. The assets of the Company consist mainly of securities which are readily realisable, and, as at 31 January 2020, the Company's total assets less current liabilities were £222 million.

The assets of the Company consist mainly of securities which are readily available, and, as at 31 January 2020, the Company's net assets were £222 million. As at 1 May 2020, the Company's net assets were £207 million. The Company has no borrowings. As a consequence, the Directors believe that the Company continues to be well placed to manage its business risks successfully. After making enquiries, and assessing both the risks arising from Covid-19 (see page above) and the consequences of its corporate statement made in February 2019 (see 'Performance' in Chair's statement) the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the next year. Accordingly, they continue to adopt the going concern basis in preparing this Annual Report and Accounts.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

in respect of the Annual Report and financial statements

The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law, the Directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the net return or loss of the Company for that year.

In preparing these financial statements, the Directors are required to:

· select suitable accounting policies and then apply them consistently;

· make judgements and accounting estimates that are reasonable and prudent;

· state whether applicable UK Accounting Standards, comprising FRS 102, have been followed, subject to any material departures disclosed and explained in the financial statements; and

· prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, Directors' Report, Directors' Remuneration Report and Corporate Governance Statement that comply with that law and those regulations, and for ensuring that the Annual Report includes information required by the Listing Rules of the Financial Conduct Authority.

The financial statements are published on www.witanpacific.com, which is a website maintained by the Company's Executive Manager, Witan Investment Services Limited. The Directors are responsible for the maintenance and integrity of the Company's website. The work carried out by the Independent Auditors does not involve consideration of the maintenance and integrity of the website and accordingly, the Independent Auditors accept no responsibility for any changes that have occurred to the Annual Report and Accounts since they were initially presented on the website. Legislation in the United Kingdom governing the preparation and dissemination of the financial statements may differ from legislation in other jurisdictions.

Directors' confirmations

The Directors consider that the Annual Report and Accounts, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company's position and performance, business model and strategy.

Each of the Directors, whose names and functions are listed above, confirm that, to the best of their knowledge:

· the financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', and applicable law), give a true and fair view of the assets, liabilities, financial position and net loss of the Company;

· the Strategic Report includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

On behalf of the Board

Susan Platts-Martin

Chair

6 May 2020

INCOME STATEMENT

for the year ended 31 January 2020

			Year ended 31 January 2020			Year ended 31 January 2019
	Revenue	Capital	Revenue	Capital	Total	Revenue	Capital	Total
	note	note	£'000	£'000	£'000	£'000	£'000	£'000
(Gains/(losses) on investments held at fair value through profit or loss		8	-	7,997	(21,782)	-	(21,782)	(21,782)
Exchange losses		14	-	(189)	(123)	-	(123)	(123)
Investment income	2		6,073	-	6,577	6,577	-	6,577
Management fees	3	3	(307)	(1,110)	(1,613)	(403)	(1,210)	(1,613)
Performance fees		3	-	(164)	(164)	-	-	-
Other expenses	4	14	(809)	(54)	(850)	(796)	(54)	(850)
Net (loss)/return before taxation			4,894	6,480	(17,791)	5,378	(23,169)	(17,791)
Taxation	5	5	(482)	(107)	(424)	(424)	-	(424)
Net (loss)/return after taxation			4,412	6,373	(18,215)	4,954	(23,169)	(18,215)
(Loss)/return per Ordinary share - pence	6	6	7.15	10.33	(28.96)	7.88	(36,84)	(28,96)

All revenue and capital items in the above statement derive from continuing operations. The total columns of this statement represent the Income Statement of the Company. The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies.

The notes below form an integral part of these financial statements.

BALANCE SHEET

as at 31 January 2020

	Note	2020 £'000	2019 £'000
Fixed assets
Investments held at fair value through profit or loss	8	215,358	215,797
Current assets
Debtors	9	756	1,424
Cash at bank and in hand		7,386	4,310
		8,142	5,734
Creditors
Performance fee	10	(66)	-
Amounts falling due within one year	10	(1,128)	(1,602)
		(1,194)	(1,602)
Net current assets		6,948	4,132
Total assets less current liabilities		222,306	219,929
Provision for liabilities and charges	11	(98)	-
Net assets		222,208	219,929
Capital and reserves
Called up share capital	12	16,486	16,486
Share premium account		5	5
Capital redemption reserve	13	41,085	41,085
Capital reserves	14	151,441	149,221
Revenue reserve	14	13,191	13,132
Total shareholders' funds		222,208	219,929
Net asset value per Ordinary share - pence	15	363.49	352.54

The financial statements were authorised and approved by the Board of Directors of Witan Pacific Investment Trust plc on 6 May 2020 and signed on its behalf by:

Susan Platts-Martin, Chair

The notes below form an integral part of these financial statements.

Company Registration Number 91798

NOTES TO THE FINANCIAL STATEMENTS

for the year ended 31 January 2019

1 Significant accounting policies

(a) Basis of accounting

The financial statements have been prepared in accordance with Generally Accepted Accounting Practice in the UK ('UK GAAP'), including the Companies Act 2006, Financial Reporting Standard 102 ('FRS 102') and with the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts'. They have also been prepared on a going concern basis and on the assumption that approval as an investment trust will continue to be granted. The accounting policies have been applied consistently throughout the year. As stated above, after making enquiries, and assessing both the risks arising from Covid-19 (see above ) and the consequences of its corporate statement made in February 2019 (see 'Performance' in Chair's statement), the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the next year. Accordingly, they continue to adopt the going concern basis in preparing this Annual Report and Accounts. The accounting policies have been applied consistently throughout the year.

The financial statements have been prepared under the historical cost basis except for the measurement of fair value of investments. In applying FRS 102, financial instruments have been accounted for in accordance with Sections 11 and 12 of the standard. All of the Company's operations are of a continuing nature.

As an investment fund, the Company has the option, which it has taken, not to present a cash flow statement. A cash flow statement is not required when an investment fund meets all the following conditions: substantially all of the entity's investments are highly liquid and are carried at market value; and where a Statement of Changes in Equity is provided.

(b) Valuation of investments

All investments have been designated upon initial recognition as fair value through profit or loss. This is because all investments are considered to form part of a group of financial assets which is evaluated on a fair value basis, in accordance with the Company's documented investment strategy, and information about the grouping is provided internally on that basis.

Investments are recognised and de-recognised at trade date where a purchase or sale is under a contract whose terms require delivery within the timeframe established by the market concerned, and are measured initially at fair value. Subsequent to initial recognition, investments are valued at fair value through profit or loss.

Listed investments have been designated by the Board as held at fair value through profit or loss and accordingly are valued at fair value, deemed to be bid market prices for quoted investments and therefore included in Level 1 investments. Investments included in Level 2 under the Fair Value Hierarchy disclosures in note 16(g) consist of unlisted reportable funds within the portfolio, these being Aberdeen Global Indian Equity UCITS and Aberdeen Global China A Equity UCITS. These are priced daily using their net asset value, which is the fair value.

Changes in the fair value of investments held at fair value through profit or loss and gains and losses on disposal are recognised in the Income Statement as 'Gains or losses on investments held at fair value through profit or loss'. Also included within this caption are transaction costs in relation to the purchase or sale of investments, including the difference between the purchase price of an investment and its bid price at the date of purchase. All purchases and sales are accounted for on a trade date basis.

(c) Foreign currency

The results and financial position of the Company are expressed in pounds sterling, which is the functional and presentation currency of the Company and rounded to the nearest £'000.

The Directors, having regard to the currency of the Company's share capital and the predominant currency in which the Company operates, have determined the functional currency to be pounds sterling. The results and financial position of the Company are therefore expressed in pounds sterling.

Transactions recorded in foreign currencies during the year are translated into sterling at the appropriate daily exchange rates. Monetary assets and liabilities denominated in overseas currencies (including equity investments) at the year end date are translated into sterling at the exchange rates ruling at that date.

Any gains or losses on the translation of foreign currency balances, whether realised or unrealised, are taken to the capital or revenue return of the Income Statement, depending on whether the gain or loss is of a capital or revenue nature.

(d) Income

Income from equity shares is brought into the revenue return of the Income Statement (except where, in the opinion of the Directors, its nature indicates it should be recognised as capital return) on the ex-dividend date, or where no ex-dividend date is quoted, when the Company's right to receive payment is established.

Where the Company has elected to receive its dividends in the form of additional shares rather than in cash, the amount of the cash dividend foregone is recognised as revenue. Any excess in the value of the shares received over the amount of the cash dividend is recognised in the capital reserve.

Any bank interest and underwriting commission is accounted for on an accruals basis.

(e) Expenses including finance costs

Finance costs are accounted for on an accruals basis. Finance costs are charged 25% to the revenue return and 75% to capital return of the Income Statement.

The management fees are charged 25% to the revenue return and 75% to the capital return of the Income Statement.

All other expenses are charged to the revenue return of the Income Statement, with the exception of the following which are charged to the capital return of the Income Statement:

· performance fees/repayments insofar as they relate to capital performance; and

· expenses incidental to the acquisition or disposal of investments.

All expenses are accounted for on an accruals basis.

(f) Taxation

The tax effect of different items of expenditure is allocated between capital and revenue on the marginal basis using the Company's effective rate of corporation taxation for the accounting period.

Deferred taxation is provided on all timing differences that have originated but not been reversed by the year end date other than those differences regarded as permanent. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will be suitable profits from which the reversal of timing differences can be deducted. Any liability to deferred tax is provided at the average rate of tax expected to apply. Deferred tax assets and liabilities are not discounted to reflect the time value of money.

(g) Segmental reporting

The Directors are of the opinion that the Company is engaged in a single segment of business, being investment business.

(h) Repurchase of Ordinary shares

The cost of repurchasing Ordinary shares including related stamp duty and transaction costs is taken directly to equity and dealt with in the Statement of Changes in Equity. Share repurchase transactions are accounted for on a trade date basis.

(i) Capital reserves

Capital reserve arising on investments sold

The following transactions are accounted for in this reserve:

· gains and losses on the realisation of fixed asset investments;

· realised exchange differences of a capital nature;

· costs of professional advice, including irrecoverable VAT, relating to the capital structure of the Company;

· other capital charges and credits charged or credited to this account in accordance with the above policies; and

· cost of purchasing Ordinary share capital.

Capital reserve arising on investments held

The following transactions are accounted for in this reserve:

· increase and decrease in the valuation of investments held at year end; and

· unrealised exchange differences of a capital nature.

(j) Dividends payable

In accordance with FRS 102, final dividends are not accrued in the financial statements unless they have been approved by shareholders before the year end date. Interim dividends are recorded in the financial statements when they are paid. Dividends payable to equity shareholders are recognised in the Statement of Changes in Equity when they have been approved by shareholders in the case of a final dividend, or paid in the case of an interim dividend and become a liability of the Company.

(k) Critical accounting estimates

In the application of the Company's accounting policies, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not always readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may vary from these estimates. Excluding the provisions as at 31 January 2020 of £153,000 for performance fees payable (2019: none), the Directors do not consider there are any such items in the financial statements.

Details of the performance fee and the basis for the calculation of performance fees payable at the Balance Sheet date is disclosed in note 11, including the assumptions made by the Directors in computing the provision.

2 Investment income

	2020 £'000	2019 £'000
Income from investments held at fair value through profit and loss:
Overseas dividends	5,867	6,235
UK dividends	150	311
Scrip dividends	26	27
Total dividend income	6,043	6,573
Other income:
Bank interest	2	2
Other income	28	2
Total other income	30	4
Total income	6,073	6,577

3 Management and performance fees

	2020	2019
	'000	£'000
Charged to revenue return:
Management fees1	370	403
	370	403
Charged to capital return:
Management fees1	1,110	1,210
	1,110	1,210
Total management fees	1,480	1,613
Performance fees charged to capital return	164	-

¹The management fees stated above include fees paid to Witan Investment Services Limited of £258,000 (2019: £290,000).

Management fees are charged 75% to capital return and 25% to revenue return respectively.

The allocation percentages approximate to the split of historic returns between capital and income and reflect the Board's expectation of the long-term split of returns in compliance with the Statement of Recommended Practice for 'Financial Statements of Investment Trust Companies and Venture Capital Trusts'. Performance fees, when payable, will be charged wholly to the capital account.

Further details of management fees can be found in note 11 and 17 respectively.

4 Other expenses

	2019	2018
	£'000	£'000
Auditors' remuneration:
- for audit services	34	33
Custody fees	99	103
Directors' emoluments: fees for services to the Company	129	142
Directors' expenses and travel1	48	1
Marketing2	155	145
Printing and postage	17	27
Secretarial and Administration fees	168	158
Directors' and Officers' liability insurance	7	7
Registrars' fees	26	32
Professional fees3	38	64
Sundry expenses	88	84
	809	796

^{1 Costs in 2020 relate primarily to a Board visit to the Asia pacific region, which is conducted every two to three years to meet the portfolio managers and the other industry participants.}

^{2 The marketing expense stated above includes fees paid to Witan Investment Services Limited of £75,000 (2019: £75,000).}

^{3 Costs in the current year include professional fees in respect of reclaims of foreign taxes, professional fees in relation to foreign tax compliance and fees for advice on the introduction of GDPR.}

Additional information concerning transactions with Directors and Directors' fees can be found in the Directors' Remuneration Report in the full Annual Report.

5 Taxation

a) Analysis of tax charge for the year

	2020	2020	2020	2019	2019	2019
	Revenue	Capital	Total	Revenue	Capital	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Overseas taxation	482	107	589	424	-	424
Total taxation	482	107	589	424	-	424

(b) Factors affecting tax charge for the year

The effective UK corporation tax rate is 19% (2019: 19.00%). The tax assessed for the year is lower(2019: higher) than the UK corporation tax rate. The differences are explained below:

	2020	2020		2019	2019
	Revenue	Capital	2020	Revenue	Capital	2019
	return	return	Total	return	return	Total
	£'000	£'000	£'000	£'000	£'000	£'000
Net (loss)/return before taxation	4,894	6,480	11,374	5,378	(23,169)	(17,791)
Corporation tax at 19.00% (2019: 19.00%)	930	1,231	2,161	1,022	(4,402)	(3,380)
Effects of:
Non-taxable overseas dividends	(1,110)	-	(1,110)	(1,181)	-	(1,181)
Non-taxable UK dividends	(19)	-	(19)	(59)	-	(59)
Other non-taxable income	(5)	-	(5)
Overseas taxation	482	107	589	424	-	424
Disallowed expenses	-	10	10	-	10	10
Realised gains on non-reporting offshore funds	-	5	5	-	7	7
Tax effect of expensed double taxation relief	(1)	-	(1)	-	-	-
Excess management expenses and finance costs	205	238	443	218	230	448
Net capital returns not subject to tax1	-	(1,484)	(1,484)	-	4,155	4,155
Tax charge for the year	482	107	589	424	-	424

¹ These items are not subject to corporation tax within an investment trust company provided the Company obtains approval from HM Revenue & Customs ('HMRC') that the requirements of Sections 1158-1159 of the Corporation Tax Act 2010 have been met.

(c) Deferred taxation

The Company has not recognised a deferred tax asset of £3,454,000 (2019: £3,063,000) arising as a result of excess management expenses and interest paid. These expenses will only be utilised if the Company has profits chargeable to corporation tax in the future. It is unlikely that the Company will generate sufficient taxable profits in the future to utilise these expenses and deficits and therefore no deferred tax asset has been recognised.

(d) Protective claim

Witan Pacific has filed protective claims with HMRC and the UK High Court in order to seek recovery of potentially overpaid taxes from HMRC in relation to the UK's pre-2009 dividend tax rules. The claims cover historic periods in which Witan Pacific paid UK tax under Schedule D Case V. In such periods, Witan Pacific is seeking recovery of the tax paid together with interest. No tax or related interest recovery has been accrued or recognised as a contingent asset. Following the decision in the lead case, HMRC issued a Brief stating it will now consider and determine each claim individually. The value, timing and probability of the claim's success are, therefore uncertain.

6 (Loss)/return per Ordinary share

The total return per Ordinary share is based on the net return attributable to the Ordinary shares of £10,785,000 (2019: loss of £18,215,000) and on 61,677,613 Ordinary shares (2019: 62,888,550), being the weighted average number of shares in issue during the year.

The total (loss)/return can be analysed as follows:

	2020	2019
	£'000	£'000
Revenue (loss)/return	4,412	4,954
Capital (loss)/return	6,373	(23,169)
Total return	10,785	(18,215)
Weighted average number of Ordinary shares	61,677,613	62,888,550
Revenue return per Ordinary share - pence	7.15	7.88
Capital (loss)/return per Ordinary share - pence	10.33	(36.84)
Total (loss)/return per Ordinary share - pence	17.48	(28.96)

The Company does not have any dilutive securities.

7 Dividends

			2020	2019
Dividends on Ordinary shares	Record date	Payment date	£'000	£'000
Final dividend (3.25p) for the year ended 31 January 2018	18 May 2018	19 June 2018	-	2,054
Interim dividend (2.50p) for the year ended 31 January 2019	19 October 2018	29 October 2018	-	1,563
Final dividend (4.50p) for the year ended 31 January 2019	17 May 2019	18 June 2019	2,784	-
Interim dividend (2.50p) for the year ended 31 January 2020	18 October 2019	28 October 2019	1,569	-
			4,353	3,617

The proposed final dividend for the year ended 31 January 2020 is subject to approval by shareholders at the AGM and has not been included as a liability in these financial statements.

The total dividend payable in respect of the financial year which meets the requirements of Section 1158 of the Corporation Tax Act 2010 is set out below.

	2020	2019
	£'000	£'000
Revenue available for distribution by way of dividend for the year	4,412	4,954
Interim dividend 2.55p (2019: 2.50p) for the year ended 31 January 2020	(1,569)	(1,563)
Proposed final dividend of 4.60p (2019: 4.50p) for the year ended 31 January 2020
(based on 61,029,284 Ordinary shares in issue at 1 May 2020)	(2,807)	(2,784)
Retained surplus for the year	36	607

8 Investments held at fair value through profit or loss

	2020	2019
	£'000	£'000
Opening book cost	191,557	185,322
Opening Investment gains	24,240	55,243
Opening fair value	215,797	240,565
Analysis of transactions made during the year:
Purchases at cost	61,719	66,299
Sales - proceeds received	(70,155)	(69,285)
- gains on investments	7,997	9,221
Closing fair value	215,358	215,797
Closing book cost	182,404	191,557
Closing investment gains	32,954	24,240
Closing fair value	215,358	215,797

The Company received £70,155,000 (31 January 2019: £69,285,000) from investments sold in the period. The book cost of investments when they were purchased was £70,871,000 (31 January 2019: £60,064,000). These investments have been revalued overtime and until they were sold, any unrealised gains/losses were included in the fair value of investments.

Purchase transaction costs for the year ended 31 January 2020 were £88,000 (2019: £89,000). Sale transaction costs for the year ended 31 January 2020 were £128,000 (2019: £123,000). These comprise mainly charges and commission.

Substantial interests

At 31 January 2020, the Company did not hold more than 3% of one class of the share capital of any of the undertakings held as investments (2019: none).

All investment are quoted on recognised stock exchanges or are UCITS Funds with published net asset values.

9 Debtors

	2020	2019
	£'000	£'000
Sales for future settlement	329	813
Other debtors	13	23
Prepayments and accrued income	414	588
	756	1,424

10 Creditors: amounts falling due within one year

	2020	2019
Other	£'000	£'000
Purchases for future settlement	571	1,004
Accruals	557	598
Performance fee accruals	66	-
	1,194	1,602

11 Provisions for liabilities and charges

Aberdeen Asset Managers Limited ('Aberdeen') is entitled to a performance fee based on relative outperformance against the MSCI AC Asia Pacific Index (sterling adjusted total return). The performance fee is calculated according to investment performance over a three-year rolling period and is payable at a rate of 15% of the calculated outperformance relative to the benchmark (subject to a cap).

Any provisions included in the Income Statement at 31 January 2020 are calculated on the actual performance of Aberdeen relative to the benchmark index. The provision is computed applying the following assumptions:

· that the benchmark index remains unchanged;

· Aberdeen's assets under management perform in line with the benchmark index to 31 May 2020, being the date the next performance period ends; and

· the future value of assets for performance fees purposes is the same as that at the Balance Sheet date.

In addition, provisions are made where necessary for the performance periods ending 31 May 2021 and 31 May 2022, applying the same assumptions as above. The total of all these provisions as at 31 January 2020 amounts to £153,000 (31 January 2019: £nil).

Changes in the level of accrual for future performance periods could arise for one of three principal reasons: a change in the degree of relative performance, the time elapsed (since this would increase the proportion of the rolling three-year performance period to which the performance calculation would be applied) or the termination of Aberdeen's contract.

12 Called up share capital

	2019	2019	2018	2018
Equity share capital	Number	£'000	Number	£'000
Ordinary shares of 25p each:
Issued and fully paid	61,131,439	15,283	62,383,404	15,596
Held in treasury	4,812,561	1,203	3,560,596	890
	65,944,000	16,486	65,944,000	16,486

In the year ended 31 January 2020, 1,251,965 Ordinary shares were purchased to be held in treasury at a total cost of £4,153,000. In the year ended 31 January 2019, there were 852,246 shares purchased to be held in treasury at a total cost of £2,694,000.

13 Capital redemption reserve

	2020	2019
	£'000	£'000
Balance brought forward and carried forward	41,085	41,085

The capital redemption reserve is used to fund amounts equivalent to the nominal value of any of the Company's own shares purchased and cancelled.

14 Reserves

	Capital reserve arising on investments sold*	Capital reserve arising on investments held	Capital reserve total £'000	Revenue reserve* £'000
Balance brought forward	124,977	24,244	149,221	13,132
Movement during the year:
Losses on investments sold	(2,701)	-	(2,701)	-
Transfer on disposal investments	1,984	(1,984)	-	-
Movement in investment holding gains	-	10,698	10,698	-
Exchange losses	(189)	-	(189)	-
Management and performance fees	(1,274)	-	(1,274)	-
Other capital charges	(54)	-	(54)	-
Purchase of own shares	(4,153)	-	(4,153)	-
Capital gains tax	(107)	-	(107)	-
Revenue return for the year	-	-	-	4,412
Dividends paid	-	-	-	(4,353)
Balance carried forward	118,483	32,958	151,441	13,191

* Distributable reserve.

Under the terms of the Company's Articles of Association, sums standing to the credit of Capital Reserves are available for distribution only by way of redemption, purchase of any of the Company's own shares or by way of dividend. The Company may only distribute accumulated 'realised' profits.

15 Net asset value per Ordinary share

Net asset values are based on net assets of £222,208,000 (2019: £219,929,000) and on 61,131,439 (2019: 62,383,404) Ordinary shares in issue at the year end excluding shares held in treasury. The net asset value per Ordinary share at 31 January 2020 was 363.49p (2019: 352.54p).

16 Risk management policies and procedures

As an investment trust, the Company invests in equities and other investments for the long term so as to achieve its objective as stated in the full Annual Report. In pursuing its investment objective, the Company is exposed to a variety of financial risks that could result in either a reduction in the Company's net assets or a reduction in the revenue available for distribution by way of dividends.

These financial risks: market risk (comprising market price risk, currency risk and interest rate risk), liquidity risk and credit risk, and the Directors' approach to the management of these risks, are set out below. The Board of Directors and the Executive Manager coordinate the Company's risk management. The overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company's financial performance.

The Board determines the objectives, policies and processes for managing the risks that are set out below, under the relevant risk category. The policies for the management of each risk have not changed from the previous accounting period.

(a) Market risk

The fair value of an instrument held by the Company may fluctuate due to changes in market prices. Market risk comprises - market price risk (see note 16(b)), currency risk (see note 16(c)) and interest rate risk (see note 16(d)). The portfolio managers assess the exposure to market risk when making each investment decision and monitor the overall level of market risk on the whole of the investment portfolio on an ongoing basis.

(b) Market price risk

Market price risks (changes in market prices other than those arising from interest rate or currency risk) may affect the value of the quoted investments.

Management of the risk

The Board of Directors manages the risks inherent in the investment portfolios by ensuring full and timely access to relevant information from the portfolio managers and through diversification at the stock level and of management style. The Board meets regularly and at each meeting reviews investment performance. The Board monitors the portfolio managers' compliance with the Company's objectives, and is directly responsible for oversight of the investment strategy and asset allocation.

The market value of quoted investments at 31 January 2020 was £215,358,000 (2019: £215,797,000).

Concentration of exposure to market price risk

A geographical analysis of the Company's investment portfolio is shown above.. This shows the significant amounts invested in China/Hong Kong, Japan, South Korea and Singapore. Accordingly, there is a concentration of exposure to those countries, though it is recognised that an investment's country of domicile or of listing does not necessarily equate to its exposure to the economic conditions in that country.

Market price risk sensitivity

The following table illustrates the sensitivity of the return after taxation for the year and net assets to an increase or decrease of 25% (2019: 25%) in the fair value of the Company's investments. This level of change is considered to be reasonably possible based on observation of current market conditions. The sensitivity analysis is based on the Company's investments at each year end date and the investment management fees for the year ended 31 January 2020, with all other variables held constant.

	2020 Increase in fair value £'000	2020 Decrease in fair value £'000	2019 Increase in fair value £'000	2019 Decrease in fair value £'000
Income Statement - return after tax
Revenue return	(74)	74	(76)	76
Capital return	53,617	(53,617)	53,721	(53,721)
Impact on total return after tax for the year and net assets	53,543	(53,543)	53,645	(53,645)

(c) Currency risk

Most of the Company's assets, liabilities and income are denominated in currencies other than sterling (the Company's functional currency, and in which it reports its results). As a result, movements in exchange rates may affect the sterling value of those items.

Management of the risk

The portfolio managers monitor the Company's exposure to foreign currencies and report to the Board on a regular basis. The Executive Manager monitors the risk to the Company of the foreign currency exposure by considering the effect on the Company's net asset value and income of a movement in the exchange rates to which the Company's assets, liabilities, income and expenses are exposed.

Foreign currency exposure

The table below shows, by currency, the split of the Company's non-sterling monetary assets and investments that are denominated in currencies other than sterling. The exposure is shown on a direct basis and not on a look-through basis.

	HK$	KRW	US$	Yen	Other
2020	£'000	£'000	£'000	£'000	£'000
Debtors (due from brokers, dividends and other income receivable)	-	76	-	-	253
Cash at bank and in hand	2	-	298	35	68
Creditors (due to brokers, accruals and other creditors)	(416)	(47)	-	(10.8)	-
Total foreign currency exposure on net monetary items	(414)	29	298	(73)	321
Investments at fair value through profit or loss	47,466	19,992	17,645	68,129	60,825
Total net foreign currency exposure	47,052	20,021	17,943	68,056	61,146
	HK$	KRW	US$	Yen	Other
2019	£'000	£'000	£'000	£'000	£'000
Debtors (due from brokers, dividends and other income receivable)	262	-	-	460	91
Cash at bank and in hand	1	-	516	4	15
Creditors (due to brokers, accruals and other creditors)	(1,004)	-	-	-	-
Total foreign currency exposure on net monetary items	(741)	-	516	464	106
Investments at fair value through profit or loss	54,011	22,200	19,002	66,564	52,306
Total net foreign currency exposure	53,270	22,200	19,518	67,028	52,412

Foreign currency sensitivity

The sensitivity of the total return after tax for the year and the net assets in regard to the movements in the Company's foreign currency financial assets and financial liabilities and the exchange rates for the top four risk currencies are set out in the table below:

It assumes the following changes in exchange rates:

£/US$ +/- 15% (2019: 15%)

£/HK$ +/- 15% (2019: 15%)

£/Yen +/- 15% (2019: 15%)

£/KRW +/- 15% (2019: 15%)

£/Other +/- 15% (2019: 15%)

These percentages have been determined based on the average market volatility in exchange rates in the previous five years and using the Company's foreign currency financial assets and financial liabilities held at each year end date.

If sterling had strengthened against the currencies shown, this would have had the following effect:

			2020
	US$	HK$	Yen	KRW	Other
	£'000	£'000	£'000	£'000	£'000
Income Statement - return after tax
Revenue return	(44)	(161)	(162)	(49)	(241)
Capital return	(2,292)	(6,165)	(8,849)	(2,597)	(7,899)
Impact on total return after tax for the year and net assets	(2,336)	(6,326)	(9,011)	(2,646)	(8,140)

			2019
	US$	HK$	Yen	KRW	Other
	£'000	£'000	£'000	£'000	£'000
Income Statement - return after tax
Revenue return	(93)	(152)	(162)	(66)	(263)
Capital return	(2,468)	(7,014)	(8,645)	(2,883)	(6,792)
Impact on total return after tax for the year and net assets	(2,561)	(7,166)	(8,807)	(2,949)	(7,055)

If sterling had weakened against the currencies shown, this would have had the following effect:

			2020
	US$	HK$	Yen	KRW	Other
	£'000	£'000	£'000	£'000	£'000
Income Statement - return after tax
Revenue return	59	218	219	66	433
Capital return	3,101	8,341	11,972	3,513	10,688
Impact on total return after tax for the year and net assets	3,160	8,559	12,191	3,579	11,121

			2019
	US$	HK$	Yen	KRW	Other
	£'000	£'000	£'000	£'000	£'000
Income Statement - return after tax
Revenue return	125	206	219	90	355
Capital return	3,338	9,490	11,696	3,901	9,190
Impact on total return after tax for the year and net assets	3,463	9,696	11,915	3,991	9,545

In the opinion of the Directors, the above sensitivity analyses are not representative of the year as a whole, since the level of exposure changes frequently.

(d) Interest rate risk

Interest rate movements may affect the interest payable on the Company's variable rate borrowings where applicable.

Management of the risk

The majority of the Company's financial assets are non-interest bearing. As a result, the Company's financial assets are not subject to significant amounts of risk due to fluctuations in the prevailing levels of market interest rates.

The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into account when making investment decisions.

Interest rate exposure

The exposure at 31 January 2019 of financial assets and financial liabilities to interest rate risk is shown by reference to floating interest rates - when the interest rate is due to be reset.

	2020		2019
	Within	2020	Within	2019
	one year	Total	one year	Total
	£'000	£'000	£'000	£'000
Exposure to floating interest rates:
Cash at bank and in hand	7,386	7,386	4,310	4,310
Total net exposure to interest rates	7,386	7,386	4,310	4,310

The Company does not have any fixed interest rate exposure at 31 January 2020 (2018: nil). Interest receivable and finance costs are at the following rates:

· Interest received on cash balances, or paid on bank overdrafts, is at a margin under LIBOR or its foreign currency equivalent (2019: same).

Interest rate sensitivity

The Company is not materially, directly exposed to changes in interest rates as the majority of financial assets are equity shares which do not pay interest. Therefore, the Company's total return and net assets are not materially affected by changes in interest rates.

(e) Liquidity risk

This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities.

Management of the risk

Liquidity risk is not significant as the majority of the Company's assets are investments in quoted equities that are readily realisable.

The Board gives guidance to the portfolio managers as to the maximum amount of the Company's resources that should be invested in one company.

Liquidity risk exposure

The remaining contractual maturities of the financial liabilities at 31 January 2020, based on the earliest date on which payment can be required are as follows:

	3 months or less
		More than 3 months, not more than one year	More than one year	2020 Total	3 months or less	More than 3 months, not more than one year	More than one year	2019 Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Creditors: amounts falling due within one year	-	-	-	-	-	-	-	-
Amounts due to brokers and accruals	1,128	-	-	1,128	1,602	-	-	1,602
Performance fee	11	55	-	66	-	-	-	-
Creditors: amounts falling due in more than a year	-	-	-	-	-	-	-	-
Performance fee	-	-	98	98	-	-	-	-
	1,139	55	98	1,292	1,602	-	-	1,602

(f) Credit risk

The failure of the counterparty to a transaction to discharge its obligations under that transaction could result in the Company suffering a loss.

Management of the risk

The risk is not significant, and is managed as follows:

· investment transactions are carried out with a large number of brokers, whose credit standing is reviewed periodically by the portfolio managers;

· Cash at bank and in hand are held only with the Company's custodian, JP Morgan. None of the Company's financial assets have been pledged as collateral.

(g) Fair values of financial assets and financial liabilities

Investments are held at fair value through profit or loss. All liabilities are held in the Balance Sheet at a reasonable approximation of fair value.

Financial assets and financial liabilities are either carried in the Balance Sheet at their fair value (investments) or the Balance Sheet amount is a reasonable approximation of fair value (due from brokers, dividends and interest receivable, due to brokers, accruals and cash at bank).

Fair value hierarchy disclosures

FRS 102 requires an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy shall have the following classifications:

· Level 1: The unadjusted quoted prices in an active market for identical assets or liabilities that the entity can access at the measurement date.

· Level 2: Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the asset or liability, either directly or indirectly.

· Level 3: Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.

The financial assets and liabilities measured at fair value in the Balance Sheet are grouped into the fair value hierarchy at the reporting date as follows:

Financial assets and financial liabilities at fair value through profit or loss	Level 1 £'000	Level 2 £'000	Level 3 £'000		Total £'000
At 31 January 2020
Equity investments	206,834	8,524	-		215,358
Total	206,834	8,524	-		215,358
Financial assets and financial liabilities at fair value through profit or loss	Level 1 £'000	Level 2 £'000	Level 3 £'000		Total £'000
At 31 January 2019
Equity investments	208,530	7,267	-		215,797
Total	208,530	7,267	-		215,797

The valuation techniques used by the Company are explained in the accounting policies in note 1(b).

There were no transfers during the year between Level 1 and Level 2.

Investments classified as Level 2 are Aberdeen Global Indian Equity UCITS and Aberdeen Global China A Equity UCITS (2018: Aberdeen Global Indian Equity UCITS and Aberdeen Global China A Equity UCITS).

(h) Capital management policies and procedures

The Company's capital management objectives are:

· to ensure that it will be able to continue as a going concern; and

· to maximise the income and capital return to its equity shareholders.

The Company's capital at 31 January 2020 comprises its equity share capital and reserves that are shown in the Balance Sheet at a total of £222,208,000 (2019: £219,929,000).

The Board, with the assistance of the Executive Manager, monitors and reviews the broad structure of the Company's capital on an ongoing basis.

This review includes:

· the need to buy back equity shares, either for cancellation or to hold in treasury, which takes account of the difference between the net asset value per share and the share price (i.e. the level of share price discount or premium);

· the need for new issues of equity shares, including issues from treasury; and

· the extent to which revenue in excess of that which is required to be distributed should be retained.

The Company's objectives, policies and processes for managing capital are unchanged from the preceding accounting period. The Company is subject to several externally-imposed capital requirements:

· as a public company, the Company has a minimum share capital of £50,000; and

· in order to be able to pay dividends out of profits available for distribution by way of dividends, the Company has to be able to meet one of the two capital restriction tests imposed on investment companies by company law. These requirements are unchanged since last year, and the Company has complied with them.

17 Transactions with the managers

On 27 May 2005, the Company appointed Witan Investment Services Limited as Executive Manager. Aberdeen Asset Managers Limited ('Aberdeen') was appointed as portfolio manager on 31 May 2005. In April 2012, the Company appointed Matthews International Capital Management LLC. In September 2017, the Company appointed Robeco Institutional Asset Management B.V. and Dalton Investments LLC. The Executive Manager and portfolio managers are considered to be related parties. At the year end, the assets managed by Aberdeen included Aberdeen Global Indian Equity, £4,846,000 (2019: £4,229,000) and Aberdeen Global China A Share Fund, £3,678,000 (2019: £3,038,000), which are related to the Aberdeen portfolio manager.

Each Management Agreement can be terminated at one month's notice in writing. The Executive Management Agreement can be terminated on six months' notice. Each portfolio manager is entitled to a base management fee, at rates between 0.20% and 0.85% per annum, calculated according to the value of the assets under their management. Witan Investment Services is entitled to an annual Executive Management Fee of 0.12% of the first £200m of net assets and 0.07% of the balance of net assets over £200m (subject to a minimum of £125,000 per year), payable quarterly.

During the year ended 31 January 2020, management fees paid amounted to £1,480,000 (2019: £1,613,000). At the year end, £398,000 (2019: £450,000) was due to the managers. In addition, annual marketing fees of £75,000 were also paid to the Executive Manager under the Executive Management Agreement.

Aberdeen is also entitled to a performance fee, further details of which are provided in note 11 of these financial statements.

Fees payable during the year to the Directors and their interests in shares of the Company are considered to be related party transactions and are disclosed within the Directors' Remuneration Report in the full Annual Report. The balance of fees due to Directors at the year end was £nil (2019: £nil).

18. Post-balance sheet events

Since the year end, the spread of Covid-19 has led to substantial falls in markets, with high levels of volatility. Though the existence of Covid-19 in Asian countries was known as at 31 January 2020, the extent of its impact was not known, and therefore market valuations as at 31 January 2020 were not materially affected. The market falls thereafter impacted significantly on the net asset value of the Company, though there has been some recovery in recent weeks. Between 1 February 2020 and 1 May 2020 the published net asset value per share of the Company fell to 339.68p, a fall of -6.6%%. Please see Chair's statement for further details.

GLOSSARY (UNAUDITED)

Alternative Performance Measures:

Net asset value per share: This is the value of total assets less all liabilities of the Company. The net asset value, or NAV, per Ordinary share is calculated by dividing this amount by the total number of Ordinary shares in issue (excluding those shares held in treasury).

Net asset value total return: Total return on net asset value ('NAV'), on a cum-income value to cum-income value basis, assuming that all dividends paid out by the Company were reinvested, without transactions costs, into the shares of the Company at the NAV per share at the time the shares were quoted ex-dividend.

Total return calculation		Year ended 31 January 2020	Year ended 31 January 2019
Opening cum-income NAV per share (p)		352.54	386.58	(a)
Closing cum-income NAV per share (p)		363.49	352.54	(b)
Total dividend adjusting factor1		1.019705	1.015617	(c)
Adjusted closing cum-income NAV per share (d = b x c)		370.7	358.0	(d)
Net asset value total return (e = d/a-1)		5.2%	-7.4%	(e)

1 The dividend adjustment factor is calculated on the assumption that the dividends paid out by the Company are reinvested into the shares of the Company at the cum-income NAV at the ex-dividend date.

Ongoing charge: The ongoing charge reflects those expenses of a type which are likely to recur in the foreseeable future, whether charged to capital or revenue as a collective fund, excluding the costs of acquisition and disposal and gains or losses arising on investments. The calculation is performed in accordance with the guidelines issues by the AIC.

Premium/discount: The amount by which the market price per share is either higher (premium) or lower (discount) than the net asset value per share expressed as a percentage of the net asset value per share.

Share price total return: Share price total return, on a last traded price to last traded price basis, assuming that all dividends received were reinvested, without transaction costs, into the shares of the Company at the time the shares were quoted ex-dividend.

Total return calculation		Year ended 31 January 2020	Year ended 31 January 2019
Opening share price (p)		303	344	(a)
Closing share price (p)		333	303	(b)
Total dividend adjustment factor1		1.021753	1.018366	(c)
Adjusted closing share price (d = b x c)		340.2	308.6	(d)
Share price total return (e = d/a-1)		12.3%	-10.3%	(e)

1 The dividend adjustment factor is calculated on the assumption that the dividends paid out by the Company are reinvested into the shares of the Company at the last traded price quoted at the ex-dividend date.

NON-STATUTORY ACCOUNTS

The financial information set out above does not constitute the Company's statutory accounts for the year ended 31 January 2020 but is derived from those accounts. Statutory accounts for the year ended 31 January 2020 will be delivered to the Registrar of Companies in due course. The Auditors have reported on those accounts; their report was (i) unqualified, (ii) did not include a reference to any matters to which the Auditors drew attention by way of emphasis without qualifying their report and (iii) did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006. The text of the Auditors' report can be found in the Company's full Annual Report and Accounts on the Company's website atwww.witanpacific.com.

The audited annual financial report will be available to shareholders shortly. Copies may be obtained during normal business hours from the Company's registered office via the Company Secretary, Link Company Matters Limited, Beaufort House, 51 New North Road, Exeter, EX4 4EP and are available on the Company's website atwww.witanpacific.com.

NATIONAL STORAGE MECHANISM

A copy of the Annual Report and Accounts will be submitted shortly to the National Storage Mechanism ('NSM') and will be available for inspection at the NSM, which is situated at https://data.fca.org.uk/#/nsm/nationalstoragemechanism

The content of the Company's web pages and the content of any website or pages which may be accessed through hyperlinks on the Company's web pages or this announcement is neither incorporated into nor forms part of the above announcement.