Aberdeen Global - Annual Report and Accounts 20080930

7/28/2019 Aberdeen Global - Annual Report and Accounts 20080930

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Aberdeen GlobalAnnual Report and Accounts

For the year ended 30 September 2008


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Contents

Incorporation...............................................................................................................................................................................................................................................................................1

Chairmans Statement ............................................................................................................................................................................................................................................................2

Investment Managers Review .............................................................................................................................................................................................................................................2

Net Asset Value History .......................................................................................................................................................................................................................................................3

Summary of Historic Information ......................................................................................................................................................................................................................................5

Aberdeen Global - Combined Statements ......................................................................................................................................................................................................................6

American Opportunities .........................................................................................................................................................................................................................................................7

Asia Pacific ................................................................................................................................................................................................................................................................................11

Asia Pacific and Japan ...........................................................................................................................................................................................................................................................15

Asia Pacific and Australasian Bond ..................................................................................................................................................................................................................................17

Asian Smaller Companies ....................................................................................................................................................................................................................................................21Australasian Equity ................................................................................................................................................................................................................................................................25

China Opportunities ..............................................................................................................................................................................................................................................................29

Emerging Markets ..................................................................................................................................................................................................................................................................32

Emerging Markets Bond .......................................................................................................................................................................................................................................................39

Emerging Markets Smaller Companies ..........................................................................................................................................................................................................................46

European Equity ......................................................................................................................................................................................................................................................................52

European High Yield Bond ..................................................................................................................................................................................................................................................56

European Opportunities (Ex UK) ......................................................................................................................................................................................................................................63

High Yield Bond ......................................................................................................................................................................................................................................................................67

India Opportunities ...............................................................................................................................................................................................................................................................72

Japan Smaller Companies ...................................................................................................................................................................................................................................................76

Japanese Equity .......................................................................................................................................................................................................................................................................80

Responsible World Equity ...................................................................................................................................................................................................................................................84

Sterling Corporate Bond ......................................................................................................................................................................................................................................................89

Sterling Financials Bond .......................................................................................................................................................................................................................................................94

Technology ...............................................................................................................................................................................................................................................................................98

UK Opportunities ................................................................................................................................................................................................................................................................ 102

World Bond ........................................................................................................................................................................................................................................................................... 107

World Equity ......................................................................................................................................................................................................................................................................... 112

Notes to the Financial Statements .............................................................................................................................................................................................................................. 117

Report of the Rviseur dEntreprises............................................................................................................................................................................................................................ 128

Management and Administration ................................................................................................................................................................................................................................ 129

General Information ...........................................................................................................................................................................................................................................................131

Further Information ............................................................................................................................................................................................................................................................133


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Aberdeen Global 1

Aberdeen Global (the Company or the Fund) was incorporated as a socit anonyme, qualifying as a socit dinvestissement capitalvariable on 25 February 1988 for an unlimited period and commenced operations on 26 April 1988. It is registered under number B27471 atthe Register of Commerce at the District Court of Luxembourg.

As at 30 September 2008, the Company has issued shares in the following Funds:

American Opportunities

Asia Pacific

Asia Pacific and Australasian Bond

Asian Smaller Companies

Australasian Equity

China Opportunities

Emerging Markets

Emerging Markets Bond

Emerging Markets Smaller Companies

European Equity

European High Yield Bond

European Opportunities (Ex UK)

High Yield Bond

India Opportunities

Japan Smaller Companies

Japanese Equity

Responsible World Equity

Sterling Corporate Bond

Sterling Financials Bond

Technology

UK Opportunities

World Bond

World Equity

The full name of each Fund is constituted by the name of the Company, Aberdeen Global, followed by a hyphen and then the specific nameof the Fund. Throughout the Financial Statements, the Funds are referred to by their short names as indicated above.

No subscriptions can be received on the basis of this document. Subscriptions are only valid if made on the basis of the current prospectus.

Please see the Notes to the Financial Statements for changes during the year.

Incorporation


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2 Aberdeen Global

Review of operationsAggregate funds under management for Aberdeen Global (theFund) decreased from $15.4 billion to $9.8 billion during the year.

This was in the main attributable to tumultuous conditions in worldstockmarkets, as the credit crunch bit. The MSCI World Index, forexample, fell over 25.6% during the 12 months to 30 September.Although a number of our larger Asian and Emerging Market sub-funds significantly out-performed their respective indices over theyear, there was a significant impact to investor sentiment and toclient asset allocation decisions, resulting in substantial net outflowsfrom the Fund over the year.

Turning to specifics, shareholders should be aware that recentmarket conditions have given rise to reduced liquidity in certaincorporate bonds, with increased price volatility being a feature of themarket. This has had the effect of widening the spread betweenbuying and selling prices in many securities. There is therefore anincreased likelihood of a dilution adjustment being applied to tradingin shares of the funds, as the Board seeks to protect the interestsof shareholders from the potentially dilutive impact of trading. It isalso the case that volatile markets have led to increased instances offair value pricing being applied in respect of published fund prices,where last available stock market prices are adjusted to accountfor significant market movements in order to give a fairer price forunderlying assets where the relevant stock markets are closed attime of pricing.

Fund developmentsAberdeen Global Responsible World Equity Fund was launchedon 2 November 2007. The Fund applies additional overlays ofenvironmental, social and governance considerations to Aberdeens

established global equity process and, where an investee companyspractices are considered to be lacking or deficient with regard tothese criteria, the Investment Manager will encourage the companyto adopt more responsible practices. The Fund has proven popularwith investors, and had over US$60million in assets by the year end.Following the year-end we have renamed a number of the sub-fundswithin the Fund, effective 1 October 2008. The changes in namehave been made to represent the objective of these sub-funds moreclearly and transparently, and to bring consistency across Aberdeensfund ranges. Details can be found within the website www.aberdeen-asset.com/global.

As of 1 January 2009, Aberdeen Global Services S.A., a wholly-ownedsubsidiary of Aberdeen Asset Management, will assume Registrar,Transfer Agent and Domiciliary Agent responsibilities replacing State

Street Bank Luxembourg. A dedicated team, based in Luxembourg,has been trained specifically to perform these tasks and clients mayexpect to receive a more tailored service, directly from Aberdeenpersonnel going forward.

Your Board is aware of the impact that stockmarket falls havehad on fund shareholder value. Market conditions remain verychallenging and we support the Investment Managers continuedapplication of their consistent and established investment approachas being appropriate. We have also been pro-active in securingcertain reductions in fees charged to the funds by third party serviceproviders which will benefit many shareholders over the comingyear.

CG LittleChairman 9 December 2008

Investment reviewGlobal equities plummeted in the year under review as the sub-prime crisis led to unprecedented deleveraging in global credit

markets. Lending was brought to a halt and only massive liquidityinjections from central banks and the taxpayer-funded rescue ofseveral major financial institutions prevented the financial systemcollapsing.

US and European markets started on a relatively strong note, butthe positive momentum was short-lived as declining house pricesand the fall in value of collateralised debt obligations led to bankwritedowns and a widespread loss of investor confidence. In thisway, problems in the financial arena soon infected the broadereconomy. Company activity slowed, while sharply higher fuel andfood costs began to affect margins as well as consumer demand. Atfirst, it was hoped that emerging markets could come to the rescue,but these export-dependent economies were hit hard by their oildependency. At the same time, shipments began to fall.

Investors appeared to take market falls in their stride, but in March,the dramatic public rescue of broker Bear Stearns signalled themounting difficulties confronting Wall Street. As other institutionsquickly became endangered, there was widespread astonishmentat the level of their off-balance sheet exposure, and uncertainty asto how to respond. A dramatic succession of bank failures followed,leading the Federal Reserve to seek Congressional support for aUS$700billion bailout package. In Europe, there were similar callson public funds. This culminated finally in coordinated global policyaction, including blanket deposit guarantees.

Equities overall had a dismal time, and emerging markets werehit disproportionately by capital flight, with leveraged investorsscrambling to raise dollars as they faced redemptions at home. Bond

markets generally outperformed equities, particularly sovereignbonds. In the first half of the year, the deterioration in US economicdata, subsequent downward revision to global growth, heightenedrisk aversion and a flight to safety out of equities provided strongsupport. In the second half, however, monetary tightening tocombat rising inflation initially led to an increase in yields, but in thefinal three months, as inflation eased, growth deteriorated rapidlyand policy quickly turned with interest rate cuts led by Australiaand New Zealand. Their moves quickly led to the unwinding of thecarry trade, causing their currencies to plunge as well. Weaker trade,capital flight and, consequently, access to funds have hit emergingeconomies.

While we are encouraged by governments coordinated efforts toease monetary policy and inject more liquidity into the financialsystem, it has come at a price. Some major financial institutionsin the US and UK are now in effect in public hands. Marketshave arguably accepted the necessity of this and understandgovernments will go to extraordinary lengths to avert a breakdownof the financial system. The markets are now pricing in a prolongeddownturn and the developed world is in effect in recession already.Markets may well retest new lows and we expect there to be apremium on companies with visible, sustainable cashflows. Inthe main, this shift should suit our managers. Their emphasis ongood company fundamentals was costly in relative performanceas markets soared through much of 2006. Now that equities haveexperienced wholesale falls, that emphasis has meant there havebeen few reasons to adjust portfolios and, generally, relativeperformance has improved. We hope that such outperformance can

be consolidated further in the downturn.

Aberdeen InternationalFund Managers Limited 9 December 2008

Chairmans Statement Investment Managers Review


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Aberdeen Global 3

Net Asset Value History

Numbers are shown in USD terms (unless otherwise stated).

FundShareClass

NAV per

Share30.9.08

NAV per

Share30.9.07

NAV per

Share30.9.06

Portfolio

TurnoverHAs at 30.9.08

TER %As at 30.9.08

American Opportunities A-2 13.29 16.37 14.20 50.27% 1.78

B-2 11.68 14.53 12.73 50.27% 2.78

D-2 - GBP 7.38 8.06 7.59 50.27% 1.78

I-2 8.75 - - 50.27% 1.24

Z-2 9.21 - - 50.27% 0.24

Asia Pacific A-2 42.39 58.48 41.69 (73.93%) 1.93

B-2 36.21 50.47 36.34 (73.93%) 2.93

D-2 - GBP 23.59 28.85 22.31 (73.93%) 1.93

I-2 43.30 59.29 41.91 (73.93%) 1.17

Asia Pacific and Australasian Bond A-1 3.76 4.00 3.85 (27.78%) 1.75

A-2 5.51 5.74 5.35 (27.78%) 1.75B-1 3.73 3.98 3.83 (27.78%) 2.75

Asia Pacific and JapanA A-2 - 10.86 - - -

Asian Smaller Companies A-2 18.47 24.53 18.13 (98.78%) 2.02

D-2 - GBP 10.25 12.08 9.70 (98.78%) 2.02

I-2 18.78 24.77 18.15 (98.78%) 1.23

Z-2 7.84 - - (98.78%) 0.23

Australasian Equity A-2 - AU$ 24.56 31.15 23.74 (30.72%) 1.79

B-2 - AU$ 21.57 27.63 21.26 (30.72%) 2.79

China Opportunities A-2 14.92 22.89 14.33 (46.03%) 2.05

D-2 - GBP 8.29 11.27 7.66 (46.03%) 2.01

I-2 15.22 23.16 14.39 (46.03%) 1.22

Z-2 8.13 - - (46.03%) 0.22

Emerging Markets A-2 36.06 48.25 32.23 (59.64%) 1.77B-2 33.66 45.50 30.74 (59.64%) 2.77

D-2 - GBP 20.12 23.84 17.30 (59.64%) 1.77

I-2 36.61 48.72 32.37 (59.64%) 1.24

Z-2 8.32 10.96 - (59.64%) 0.27

Emerging Markets BondB A-1 15.16 17.28 16.66 154.76% 1.74

A-2 23.58 25.25 23.02 154.76% 1.74

B-1 15.19 17.31 16.70 154.76% 2.71

B-2 22.10 23.91 21.94 154.76% 2.71

I-1 15.34 17.47 - 154.76% 1.22

I-2 9.46 - - 154.76% 1.22

Z-2 22.73 23.98 - 154.76% 0.22

Emerging Markets Smaller CompaniesC

A-2 8.10 11.90 - (8.59%) 2.16D-2 - GBP 4.49 5.84 - (8.59%) 2.16

I-2 8.21 11.99 - (8.59%) 1.37

Z-2 8.25 11.91 - (8.59%) 0.37

European Equity A-2 - EUR 28.35 44.47 41.24 (2.83%) 1.79

B-2 - EUR 25.89 41.02 38.55 (2.83%) 2.79

I-2 - EUR - 44.65 - (2.83%) 1.25

Z-2 - EUR 8.07 - - (2.83%) 0.25

European High Yield Bond A-1 - EUR 6.00 8.73 8.85 (82.33%) 1.48

A-2 - EUR 10.57 14.05 13.46 (82.33%) 1.48

A-2G 7.33 - - (82.33%) 1.48

B-1 - EUR 5.98 8.69 8.85 (82.33%) 2.48

B-2 - EUR 9.72 13.10 12.69 (82.33%) 2.48

D-1 - GBP 4.81 6.07 - (82.33%) 1.48

D-2 - GBP 8.52 - - (82.33%) 1.48

I-2 - EUR 7.38 - - (82.33%) 0.94

Z-2 - EUR 10.70 - - (82.33%) 0.19


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4 Aberdeen Global

Fund

Share

Class

NAV per

Share 30.9.08

NAV per

Share 30.9.07

NAV per

Share 30.9.06

Portfolio

TurnoverH

As at 30.9.08

TER %

As at 30.9.08European Opportunities (E UK) A-2 - EUR 7.39 11.07 10.44 6.75% 1.73

D-2 - GBP 5.88 7.74 7.07 6.75% 1.77

Fied Interest OpportunitiesD D-1 - GBP - - 1.05 - -

High Yield Bond D-1 - GBP 0.8748 1.0944 1.08 19.54% 1.54

India Opportunities A-2 58.58 82.96 57.09 (31.80%) 2.15

D-2 - GBP 32.58 40.85 30.55 (31.80%) 2.15

I-2 59.74 83.85 57.37 (31.80%) 1.36

Z-2 6.59 - - (31.80%) 0.36

Japan Smaller CompaniesE A-2 - JPY 501.68 772 - 13.34% 1.80

D-2 - GBP 2.65 3.30 - 13.34% 1.80

I-2 - JPY 461.42 773 - 13.34% 1.26

Japanese Equity A-2 - JPY 236.25 365 391 1.28% 1.77

B-2 - JPY 201.89 315 340 1.28% 2.77D-2 - GBP 1.25 1.56 - 1.28% 1.77

Responsible World EquityF A-2 7.55 - - 4.29% 1.76

I-2 7.45 - - 4.29% 1.22

Z-2 7.48 - - 4.29% 0.22

Sterling Corporate Bond D-1 - GBP 0.9186 1.0069 1.05 5.47% 1.61

Sterling Financials Bond A-2 - GBP 1.7142 1.6925 1.64 33.91% 1.04

Technology A-2 2.40 3.35 2.70 (27.79%) 2.08

B-2 2.20 3.10 2.53 (27.79%) 3.08

D-2 - GBP 1.34 1.65 1.44 (27.79%) 2.08

I-2 8.34 - - (27.79%) 1.29

UK Opportunities A-2 - GBP 11.66 16.13 14.76 (5.74%) 1.72

B-2 - GBP 10.19 14.24 13.16 (5.74%) 2.72D-1 - GBP 11.15 15.79 14.70 (5.74%) 1.72

World Bond D-1 - GBP 1.3262 1.1405 1.20 193.84% 1.19

World Equity A-2 11.78 15.11 12.56 14.45% 1.73

B-2 10.82 14.01 11.77 14.45% 2.73

D-2 - GBP 6.55 7.44 6.72 14.45% 1.73

I-2 7.74 - - 14.45% 1.19

Z-2 12.02 15.18 - 14.45% 0.19

Net Asset Value History continued

Source: Aberdeen Asset Management.A New Fund launched 17 April 2007 and then subsequently closed on 26 October 2007.B The Fund changed its name from Sovereign High Yield Bond on 30 March 2007.C New Fund launched 26 March 2007.D The Fund liquidated on 10 July 2007.E New Fund launched 20 April 2007.F New Fund launched 2 November 2007.G Hedged share class.H (Purchase of securities and Sales of securities) - (Subscriptions of shares and Redemptions of shares)

= Portfolio Turnover(Average fund value over 12 months) x 100

Echange Rates 30.9.08 30.9.07 30.9.06 - US$ 1.799900 2.031300 1.870000

US$ - AUD 1.240402 1.134003 1.340856

- 1.256150 1.431800 1.475950 -US$ 1.432870 1.418704 1.266977US$ - JPY 105.172510 115.207010 117.951872


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Aberdeen Global 5

Net Asset

Value

Net Asset

Value

Net Asset

Value

30.09.08 30.09.07 30.09.06Fund Base Currency (000) (000) (000)

American Opportunities US Dollars 58,934 77,160 16,326

Asia Pacific US Dollars 3,889,186 7,472,634 5,540,149

Asia Pacific and Australasian Bond US Dollars 3,374 6,063 1,170

Asia Pacific and JapanA US Dollars - 6,192 -

Asian Smaller Companies US Dollars 420,471 489,709 446,549

Australasian Equity Australian Dollars 74,230 82,620 58,729

China Opportunities US Dollars 411,716 838,690 723,872

Emerging Markets US Dollars 849,974 906,993 219,105

Emerging Markets BondB US Dollars 356,403 537,624 191,399

Emerging Markets Smaller CompaniesC US Dollars 95,297 113,328 -

European Equity Euro 39,884 116,918 39,070

European High Yield Bond Euro 225,705 375,234 112,015

European Opportunities (Ex UK) Euro 76,687 144,081 64,647

Fixed Interest OpportunitiesD Sterling - - 23,857

High Yield Bond Sterling 28,060 43,762 49,715

India Opportunities US Dollars 1,963,482 2,779,282 1,959,235

Japan Smaller CompaniesE Japanese Yen 3,964,232 6,436,584 -

Japanese Equity Japanese Yen 10,323,778 16,487,626 1,360,239

Responsible World EquityF US Dollars 61,250 - -

Sterling Corporate Bond Sterling 12,357 13,740 14,265Sterling Financials Bond Sterling 33,891 36,749 41,419

Technology US Dollars 67,173 77,257 75,827

UK Opportunities Sterling 36,490 56,046 35,485

World Bond Sterling 37,595 34,368 44,066

World Equity US Dollars 746,227 604,761 79,739

Consolidated Total 9,876,716 15,459,269 9,973,099A New Fund launched 17 April 2007 and then subsequently closed on 26 October 2007.B The Fund changed its name from Sovereign High Yield Bond on 30 March 2007.C New Fund launched 26 March 2007.D The Fund liquidated on 10 July 2007.E New Fund launched 20 April 2007.F New Fund launched 2 November 2007.

Summary of Historic Information



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6 Aberdeen Global

Combined Statement of Net Assets

As at 30 September 2008

Assets US$000Investments in securities at market value (note 2.2) 9,663,576Cash at bank 119,541Interest and dividends receivable 53,649Subscriptions receivable 22,922Receivable for investments sold 138,389Unrealised gains on forward foreign exchange contracts(note 2.6) 4,572Other assets 691

Total assets 10,003,340

Liabilities

Payable for investments purchased 10,554Taxes and expenses payable 19,708Redemptions payable 69,595Unrealised losses on forward foreign exchange contracts(note 2.6) 1Other liabilities* 26,766

Total liabilities 126,624

Net assets at the end of the year 9,876,716

*Includes a provision in respect of Thailand capital gains tax ofUS$ 23,223,947.

Combined Statement of Changes in Net Assets

For the year from 1 October 2007 to 30 September 2008

US$000

Net assets at the beginning of the year 15,459,269Exchange rate effect on opening net assets (20,982)Net gains from investments 183,456Realised gains on investments 1,332,436Currency exchange losses (19,357)Realised losses on forward foreign exchange contracts (5,898)

Decrease in unrealisedappreciation on investments (5,165,198)Unrealised currency exchange losses (904)Decrease in unrealised depreciation on openforward foreign exchange contracts 7,979Proceeds from shares issued 8,268,548Payments for shares redeemed (10,144,766)Net equalisation received (note 10) 943Dividends paid (note 5) (18,810)


Combined Statement of Operations


Income US$000Income from investments 401,130Other income 1,184Bank interest received 6,852

Total income 409,166

Epenses

Gross Management fee 190,582Less: Management fee cross holdings (4,442)

Net Management fee (note 4.6) 186,140

Administration fee (note 4.1) 3,740Custodian fee (note 4.2) 13,550Distribution fee (note 4.3) 614Domiciliary agent, registrar, payingand transfer agent fees (note 4.4) 9,565Management company fees (note 4.5) 2,010Operational expenses (note 4.7) 3,570Expense cap refunded by Investment Manager (note 4.8) (48)Mauritius Income Tax (note 11) 1,103Annual tax (note 4.9) 5,446Bank interest paid 20

Total epenses 225,710

Net gains from investments 183,456

Realised gains on investments 1,332,436Currency exchange losses (19,357)Realised losses on forward foreignexchange contracts (5,898)

Net realised gains 1,490,637

Decrease in unrealisedappreciation on investments (5,165,198)

Unrealised currency exchange losses (904)

Decrease in unrealised depreciation on openforward foreign exchange contracts 7,979

Net decrease in assets as a result of operations (3,667,486)

The accompanying notes form an integral part of these financialstatements.

Aberdeen Global - Combined Statements


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Aberdeen Global 7American Opportunities Fund

American Opportunities


Performance

For the year ended 30 September 2008, the value of the AmericanOpportunities - A Accumulation shares decreased by 18.8%compared to a decrease of 22.0% in the benchmark, the S&P 500Index.

Managers review

US equity markets fell steeply during the 12 months to September2008, with the benchmark S&P 500 Index down by 24% in US dollarterms. By sector, consumer staples and health care were the topperformers given their defensive profiles, whereas financials faredthe worst. Credit markets imploded, causing the historic failure ofmajor investment banks, with some such as Bear Stearns taken overand others, notably Lehman Brothers, left to go under. Along theway, the government made explicit its guarantee behind troubledfederal mortgage agencies Freddie Mac and Fannie Mae; it alsomade available billions in credit to keep markets liquid.

The financial crisis unravelled slowly. Problems initially seemedconfined to the credit derivatives market and affected only a handfulof participants. However, as the magnitude of the financial crisisbecame more evident, markets witnessed credit issues ripple acrossthe banking sector and into the broader economy. Financial leveragethat had previously driven economic growth began to unwind,leaving credit markets illiquid as default risk aversion and a lack ofvisibility restricted investors.

For that reason, policymakers employed progressively more radical

measures to aid financial markets: the government unveiled aUS$168bn stimulus package to boost the economy, the Fed cutinterest rates six times to 2% and regulators temporarily bannedthe short-selling of financial stocks. Towards the end of the year,the House of Representatives rejected the initial US$700bn package,which affected sentiment across the globe (only to approve amodified version days later).

Meanwhile, economic data emitted contrary signals: while producerprices hit a 27-year high, driven by wholesale energy prices, thecontinued fall in housing prices, as well as the sharp contraction inmanufacturing pointed to a slowdown. Those hopes that economicgrowth could hold up proved short-lived, with second-quarter

economic growth decelerating to an annualised rate of 1.9%.Consumer confidence fell to a 16-year low, owing partly to a poorjob market. With the weakening of the domestic economy, capitaloutflows increased. Commodity prices spiked early on speculationthat global demand would remain robust. Expectations for globalgrowth evaporated and commodities fell sharply in mid-summer.

Portfolio review

The Fund outperformed the benchmark S&P 500 Index over the12-months, driven by positive stock selection. The Funds largestcontribution to return was its underweight to financials andavoidance of the well-publicised disasters. Conversely, the Fundsexposure to health care detracted from performance, specificallyholdings in managed care providers, which struggled throughout theyear.

At the stock level, rising commodities benefited our energy holdingsEOG Resources and Apache Corp, while homebuilder Toll Brotherssaw positive returns as the company managed business well throughthe environment and given the companys strong balance sheet.The Fund also benefited from strong returns in tobacco companyUST and specialty chemical maker Rohm & Hass, after bothcompanies were bid for. Aerospace company Textron Inc was themain detractor, as slowing business jet demand and concerns withinthe companys financing arm led to a sell-off in shares. Technologycompanies Motorola and EMC, as well as managed care providerUnited Health Group saw weak performance during the year.

In portfolio activity, we took advantage of market weakness tointroduce technology companies Oracle Corp and Alliance DataSystems, given what we saw as attractive long-term prospects andsolid business franchises. Additionally, we also introduced oil serviceprovider Schlumberger after a sell off in commodities led valuationsto become more attractive. Conversely, we sold communicationscompany Motorola and insurance broker Willis Group as the outlook

for both companies deteriorated.Throughout the year, the Fund carefully managed its exposure toenergy as commodity prices spiked. Additionally, we increased ourpositions selectively across specific financial companies on priceweakness and a stabilizing environment.

Outlook

The world remains stunned by the state of economic paralysisthat the financial debacle has brought about. There has beenunprecedented policy action by regulators and authorities. Aid tobeleaguered banks has totalled hundreds of billions of dollars. Theglobal economy will survive, but pain may be heightened in the

near term. American companies historically have been more agilein managing through difficult periods. But the lower spending rateof American consumers worried about job losses and home valuesremains an unanswerable question.

Against this dismal backdrop exist, a number of companies atattractive valuations that will endure and prosper. There have been anumber of company failures and we maintain weaker companies willstill struggle, thereby creating opportunities for the strong to growand take market share.


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8 Aberdeen Global

American Opportunities Fund

Statement of Net Assets


Assets US$000

Investments in securities at market value (note 2.2) 57,659

Cash at bank 977

Interest and dividends receivable 87

Subscriptions receivable 36

Receivable for investments sold 455

Total assets 59,214

Liabilities

Payable for investments purchased 154

Taxes and expenses payable 126

Total liabilities 280

Net assets at the end of the year 58,934

Statement of Changes in Net Assets


US$000

Net assets at the beginning of the year 77,160

Net losses from investments (186)

Realised losses on investments (988)

Currency exchange gains 45

Realised losses on forward foreign exchange contracts (64)

Decrease in unrealised appreciation on investments (12,977)

Proceeds from shares issued 21,917

Payments for shares redeemed (25,972)

Net equalisation paid (note 10) (1)


Statement of Operations


Income US$000

Income from investments 980

Other income 9

Bank interest 58

Total income 1,047

Epenses

Management fee (note 4.6) 1,034

Administration fee (note 4.1) 37

Custodian fee (note 4.2) 6

Distribution fee (note 4.3) 2

Domiciliary agent, registrar, paying andtransfer agent fees (note 4.4) 75

Management company fees (note 4.5) 11

Operational expenses (note 4.7) 33

Annual tax (note 4.9) 35

Total epenses 1,233

Net losses from investments (186)

Realised losses on investments (988)


Realised losses on forward foreignexchange contracts (64)

Net realised losses (1,193)


Net decrease in assets as a result of operations (14,170)

Share Transactions


A-2 B-2 D-2(GBP) I-2 Z-2

Shares outstanding at the beginning of the year 761,869 13,713 3,939,633 - -

Shares issued during the year 1,273,512 - 88,700 1 153,181

Shares redeemed during the year (514,048) (2,618) (1,189,241) - (59,907)

Shares outstanding at the end of the year 1,521,333 11,095 2,839,092 1 93,274

Net asset value per share 13.29 11.68 7.38 8.75 9.21The accompanying notes form an integral part of these financial statements.


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Aberdeen Global 9American Opportunities Fund

Portfolio Statement


Percentage of

Market value total net assets

Description Quantity US$000 %

Consumer Discretionary - 9.13%

BorgWarner 29,550 932 1.58Macys 43,850 758 1.29Stanley Works 16,850 683 1.16Staples 36,500 794 1.35TJX Companies 18,611 563 0.96Toll Brothers 33,700 821 1.39VF Corp 10,800 827 1.40

5,378 9.13

Consumer Staples - 11.31%

Kraft 33,950 1,082 1.84PepsiCo 14,400 1,003 1.70Philip Morris International 25,850 1,210 2.05Procter & Gamble 19,980 1,334 2.26Supervalu 38,800 877 1.49Sysco 22,100 689 1.17UST 7,250 471 0.80

6,666 11.31

Energy - 12.54%

Apache 14,100 1,394 2.37Ensco 19,200 1,035 1.76

EOG Resources 15,100 1,281 2.17Exxon Mobil 23,832 1,765 2.99Hess Corp 14,700 1,119 1.90Schlumberger 10,800 797 1.35

7,391 12.54

Financials - 14.69%

Aflac 15,400 789 1.34Allstate 21,200 914 1.55Assurant 14,250 708 1.20Capital One Financial 16,150 711 1.21Goldman Sachs 5,500 664 1.13

JPMorgan Chase 32,350 1,326 2.25Royal Bank of Canada 29,995 1,360 2.31State Street 17,400 766 1.30Wells Fargo 31,850 1,059 1.80Zions Bancorp 10,400 356 0.60

8,653 14.69

Health Care - 14.49%

Aetna 45,600 1,607 2.73Johnson & Johnson 22,300 1,492 2.53Pfizer 52,400 925 1.57Quest Diagnostics 23,290 1,170 1.99St Jude Medical 17,800 737 1.25United Health Group 50,400 1,058 1.80Wyeth 23,440 858 1.46Zimmer Holdings 11,091 685 1.16

8,532 14.49


12/136

10 Aberdeen Global

American Opportunities Fund

Industrials - 11.44%

3M 16,089 1,067 1.81Canadian National Railway 22,300 1,073 1.82Deere & Co 13,330 637 1.08Emerson Electric 19,000 731 1.24ITT Corp 13,450 715 1.21Textron Inc 29,950 824 1.40United Technologies 24,815 1,406 2.39US Airways Group 51,500 288 0.49

6,741 11.44

Information Technology - 14.24%Alliance Data Systems 17,300 984 1.67Anixter 11,800 661 1.12Cisco Systems 55,500 1,209 2.05Cognizant Technology Solutions 38,150 803 1.36EMC 81,550 935 1.59Intel 50,650 875 1.48Microsoft 55,000 1,376 2.32ON Semiconductor 126,750 779 1.32Oracle Corp 41,600 781 1.33

8,403 14.24

Materials - 1.94%

Dow Chemical 36,950 1,144 1.94

Telecommunication Services - 3.02%

Telus 21,750 792 1.34Windstream Corp 91,700 989 1.68

1,781 3.02

Utilities - 2.46%

Allegheny Energy 10,950 389 0.66PPL Corp 29,090 1,059 1.80

1,448 2.46

Fair value adjustment (note 2.2) 1,522 2.58

Total investments 57,659 97.84

Other net assets 1,275 2.16

Total 58,934 100.00

All securities held at the year end are transferable except where otherwise stated.All securities are listed on an official exchange except where otherwise stated.All investments are in ordinary or common stocks and shares except where otherwise stated.There are no transferable securities and money market instruments dealt in another regulated market except as otherwise stated.

Portfolio Statement continued

Percentage of




13/136

Aberdeen Global 11Asia Pacific Fund

Asia Pacific


Performance

For year ended 30 September 2008, the value of the Asia Pacific - AAccumulation shares decreased by 27.5% compared to a decrease of37.6% in the benchmark, the MSCI AC Asia Pacific ex Japan Index.

Managers review

After having set new records last October, Asian equities fell withincreasing severity through the rest of the year under review. Initialoptimism that Asia might somehow decouple from deceleratinggrowth in the West gave way to a deepening crisis in the globalfinancial system. As the crisis spread, some of Wall Streetsmost respected names were toppled as if they were start-ups.Policymakers struggled to find an effective response, such was thespeed with which events unfolded. After billions were provided inliquidity (a result of banks refusing to lend), the US Treasury putforward a US$700bn rescue package, a revised version of whichCongress passed.

In Asia, China and Korea were among the biggest market fallers, withtheir benchmark indices losing more than 40% each in US dollarterms. Earlier on, still-high commodity prices had supported marketsin more resource-led economies, while hopes of political changehad lifted Thailand and Taiwan. In the second half, however, capitalflight saw regional shares plunge more than their counterpartsin developed markets despite their better fundamentals. Foreigninvestors, such as hedge funds, were forced to unwind positions tomeet redemptions elsewhere.

Initially, Asia had appeared able to withstand the downturn inthe US. Regional growth was solid, with exporters shifting theirshipments to Europe. Economic conditions, however, steadilydeteriorated. At the turn of the year, export-reliant economies,particularly those in China, Hong Kong, Korea and Singapore, hadstarted to feel the impact of flagging Western consumer demand,and by the second quarter, growth rates had decelerated sharply.

Inflation, which was relatively benign at the start of the year, spikedon the back of record food and fuel prices. A build-up in speculativepositions added to these price pressures. Policymakers were thusin a quandary, confronted with having to tame inflation withoutarresting growth. But price pressures soon passed, enabling their

focus to turn to the slowdown. To this end, Taiwan launched astimulus package, while Korea and Indonesia cut taxes.

Political uncertainty increased over the year. In Korea, presidentLee Myung-Bak was forced to reshuffle his cabinet after backingdown from his bid to resume US beef imports. The leadershipcrisis in Thailand and Malaysia continued to play out. Thai primeminister Somchai Wongsawat, the brother-in-law of former leaderThaksin Shinawatra, is now under pressure to step down. He hadtaken over from Samak Sundaravej, who was forced out of officefor alleged corruption and conflicts of interest. Malaysian primeminister Abdullah Badawi is planning to step down in favour of hisdeputy after the poor showing at the polls left the ruling coalition

in turmoil, while opposition leader Anwar Ibrahim was sworn in toparliament. He had won a by-election after having served a five-yearban from politics.

Portfolio review

For the year under review, the Aberdeen Global Asia Pacific Fund fell27.5% in US dollar terms, outperforming the benchmark MSCI ACAsia Pacific ex Japan index, which declined 37.6%.

We introduced Singapore-listed Fraser & Neave, a regional foodand beverages company with additional interests in property andpublishing. We added to several holdings on price weakness, suchas Hong Kong-listed lender Standard Chartered and semiconductorequipment-maker ASM Pacific.

Conversely, we sold Australias Leighton Holdings, an exceptionallyrewarding long-term position, as well as Malaysias Maybank, arelatively recent holding, on concerns over its lack of focus, includingthe recent spate of overseas acquisitions. We also divested Koreanlender Kookmin Bank, accepting its repurchase offer, and tidied up

the small holding in Taiwanese lender, Sinopac, whose managementfailed to live up to expectations. In addition, we reduced severalholdings after strong runs in their share price, including MalaysiasPublic Bank and Hong Kong-listed utility CLP.

Outlook

The worst of the credit crisis may appear to be behind us, but itsoverriding characteristic is that it keeps presenting fresh points ofstress. In recent days, central banks, realising the systemic nature ofthe problem, have acted in unison, cutting interest rates, providingnew lines of liquidity, guaranteeing loans and, in the US, evenlending to money markets. Their response has quickly gone beyond

ideology to embrace a more pragmatic approach of taking stakesin institutions until the trouble subsides. This has helped short-term interbank rates to ease somewhat, although confidence is stillextremely fragile.

With a recession almost a certainty across developed economies,focus has shifted to lessening its severity. Asia is likely to sufferas well, albeit to a smaller degree. Hope lies in the regions robusthousehold, corporate and national balance sheets. But Chinas sharpslowdown is a major worry, with third-quarter growth deceleratingmore than expected. Fortunately, Beijing has the capital to spend(as do other Asian governments) and at the time of writing, hasintroduced sweeping measures to lift its property sector.

We expect pump-priming to figure more prominently in the region,as policymakers try to stimulate domestic demand to make up forthe slack left by Asias shrinking export markets. Receding inflationshould relieve some pressure on corporate margins and wages, eventhough prices tend to be sticky downwards. We expect corporateearnings to level off or even decline over the next 12 to 18 months.Consensus estimates appear optimistic still and we think it is toosoon to call a bottom, despite markets having fallen a long waysince they peaked a year ago. Over the long term, however, we areconfident that Asia will not just weather the downturn, but emergethe stronger for it.


14/136

12 Aberdeen Global

Asia Pacific Fund

Statement of Net AssetsAs at 30 September 2008

Assets US$000Investments in securities at market value (note 2.2) 3,800,732Cash at bank 14,798Interest and dividends receivable 11,971Subscriptions receivable 10,020Receivable for investments sold 125,361

Total assets 3,962,882

LiabilitiesTaxes and expenses payable 8,327Redemptions payable 44,469Other liabilities* 20,900



*Includes a provision in respect of Thailand capital gains tax ofUS$ 20,899,868.

Statement of Changes in Net AssetsFor the year from 1 October 2007 to 30 September 2008

US$000Net assets at the beginning of the year 7,472,634

Net gains from investments 58,268Realised gains on investments 814,367Currency exchange losses (10,314)Realised losses on forward foreign exchange contracts (94)Decrease in unrealised appreciation on investments (2,461,609)Unrealised currency exchange losses (506)Proceeds from shares issued 2,578,015Payments for shares redeemed (4,557,276)

Net equalisation paid (note 10) (4,299)Net assets at the end of the year 3,889,186

Statement of OperationsFor the year from 1 October 2007 to 30 September 2008

Income US$000Income from investments 166,337Other income 291Bank interest 2,793

Total income 169,421

Epenses

Gross Management fee 100,029Less: Management fee cross holdings (3,971)

Net Management fee (note 4.6) 96,058

Administration fee (note 4.1) 1,057Custodian fee (note 4.2) 5,163Distribution fee (note 4.3) 374Domiciliary agent, registrar, paying andtransfer agent fees (note 4.4) 3,781Management company fees (note 4.5) 888Operational expenses (note 4.7) 1,268Annual tax (note 4.9) 2,564

Total epenses 111,153


Realised gains on investments 814,367Currency exchange losses (10,314)Realised losses on forward foreign exchange contracts (94)

Net realised gains 862,227

Decrease in unrealised appreciation on investments (2,461,609)


Net decrease in assets as a result of operations (1,599,888)

Share TransactionsFor the year from 1 October 2007 to 30 September 2008

A-2 B-2 D-2(GBP) I-2Shares outstanding

at the beginningof the year 110,667,131 1,013,428 12,315,270 3,849,511

Shares issuedduring the year 31,065,765 1,532 1,870,799 12,938,635

Shares redeemedduring the year (70,445,510) (481,194) (7,086,508) (4,160,301)

Shares outstandingat the end ofthe year 71,287,386 533,766 7,099,561 12,627,845

Net asset valueper share 42.39 36.21 23.59 43.30



15/136

Aberdeen Global 13Asia Pacific Fund

Portfolio Statement


Percentage of



Australia - 7.98%

QBE Insurance Group * 7,550,431 160,486 4.13Rio Tinto 1,840,000 112,949 2.90Tabcorp Holdings 5,710,956 37,017 0.95

310,452 7.98

China - 4.80%

China Mobile * 10,000,221 98,885 2.54PetroChina * 81,000,810 83,300 2.14Zhejiang Expressway * 8,250,170 4,818 0.12

187,003 4.80

Hong Kong - 20.50%

ASM Pacific Technology * 9,959,420 57,200 1.47CLP Holdings * 2,200,926 17,658 0.45Dah Sing Banking 10,099,621 10,341 0.27Dah Sing Financial 6,563,009 27,246 0.70Dairy Farm International 14,027,063 70,205 1.81Giordano International * 31,477,573 10,831 0.28Hang Lung Group * 16,608,186 52,553 1.35Hang Lung Properties * 15,750,442 36,244 0.93Jardine Strategic Holdings * 9,878,539 138,300 3.56Standard Chartered 4,975,426 118,568 3.05

Sun Hung Kai Properties * 7,025,426 70,870 1.82Swire Pacific A * 675,491 5,884 0.15Swire Pacific B 77,208,092 133,177 3.42Wing Hang Bank * 6,332,239 48,137 1.24

797,214 20.50

India - 14.75%

Aberdeen Global - India Opportunities Fund 23,175,093 152,724 3.93GAIL 260,000 13,520 0.35GAIL GDR 2,350,060 20,679 0.53GlaxoSmithKline Pharmaceuticals 1,261,550 32,054 0.82Grasim Industries 1,080,560 39,334 1.01

HDFC 1,900,000 86,165 2.22Hero Honda 2,485,500 46,683 1.20ICICI Bank 3,500,048 40,663 1.05Infosys Technologies 2,100,600 63,451 1.63New India Investment Trust 4,780,000 10,711 0.28Satyam Computer Services 10,680,500 67,350 1.73

573,334 14.75

Indonesia - 1.70%

Unilever Indonesia 83,310,036 65,985 1.70

Malaysia - 4.89%

British American Tobacco 3,500,020 42,302 1.09Bumiputra Commerce 21,600,030 48,136 1.24Public Bank (Alien) 34,350,714 99,491 2.56

189,929 4.89


16/136

14 Aberdeen Global

Asia Pacific Fund


Philippines - 2.72%

Ayala Land 251,837,322 49,466 1.27Bank of the Philippine Islands 58,119,424 56,462 1.45

105,928 2.72

Singapore - 21.73%

City Developments * 17,450,779 107,307 2.76Fraser & Neave Limited 25,800,000 64,885 1.67Oversea-Chinese Banking Corp * 32,000,215 160,508 4.13Singapore Airlines * 8,350,600 83,303 2.14Singapore Technologies Engineering * 64,600,971 120,663 3.10

Singapore Telecommunications * 51,250,862 116,523 3.00United Overseas Bank * 11,320,929 133,051 3.42Venture Corp * 10,883,030 58,547 1.51

844,787 21.73

South Korea - 7.71%

Daegu Bank 2,924,490 25,361 0.65Hyundai Motor (Pref) 300,290 5,774 0.15Pusan Bank 3,488,570 30,469 0.78Samsung Electronics (Pref) 504,000 154,902 3.98Shinsegae 180,000 83,524 2.15

300,030 7.71

Sri Lanka - 0.77%

Commercial Bank of Ceylon 3,554,187 3,445 0.09DFCC Bank 6,108,073 5,638 0.14Dialog Telekom 73,606,300 5,435 0.13Keells (John) 15,737,023 12,565 0.32National Development Bank 2,857,725 3,416 0.09

30,499 0.77

Taiwan - 5.92%

Fubon Financial 54,001,000 37,795 0.97Taiwan Mobile 45,200,975 71,478 1.84TSMC 74,300,805 120,955 3.11

230,228 5.92

Thailand - 4.26%

PTT Exploration & Production (Alien) 25,000,045 93,585 2.41Siam Cement (Alien) 17,900,636 71,758 1.85

165,343 4.26

Total investments 3,800,732 97.73


Total 3,889,186 100.00

All securities held at the year end are transferable except where otherwise stated.All securities are listed on an official exchange except where otherwise stated.All investments are in ordinary or common stocks and shares except where otherwise stated.There are no transferable securities and money market instruments dealt in another regulated market except as otherwise stated. Managed by subsidiaries of Aberdeen Asset Management PLC.* A portion of the stock is on loan at the year end.

Percentage of




17/136

Aberdeen Global 15Asia Pacific and Japan Fund

Asia Pacific and Japan


Closure of Fund

The Fund was closed on 26 October 2007. The Manager is in theprocess of winding the Fund up.

Performance

For the period 1 October 2007 to 26 October 2007, the value of theAsia Pacific and Japan - A Accumulation shares increased by 1.6%compared to an increase of 3.0% in the benchmark, the MSCI ACAsia Pacific Index.

Managers review

The Fund was terminated on 26 October 2007, following theredemption of a major shareholder, and all positions were closedout.


18/136

16 Aberdeen Global

Asia Pacific and Japan Fund



Assets US$000

Cash at bank 42

Other assets 36

Total assets 78

Liabilities


Other liabilities* 69


Net assets at the end of the year

*Includes a provision in respect of Thailand capital gains tax of

US$ 69,423.



US$000


Net gains from investments 10

Realised gains on investments 517

Currency exchange losses (4)

Decrease in unrealised appreciation on investments (400)


Proceeds from shares issued 178


Net equalisation paid (note 10) (1)

Net assets at the end of the year



Income US$000

Income from investments 16

Bank interest 4

Total income 20

Epenses

Management fee (note 4.6) 9

Administration fee (note 4.1) (9)

Domiciliary agent, registrar, paying and

transfer agent fees (note 4.4) (13)


Total epenses 10


Realised gains on investments 517

Currency exchange losses (4)

Net realised gains 523

Decrease in unrealised appreciation on investments (400)


Net increase in assets as a result of operations 118

Share Transactions


A-2

Shares outstanding at the beginning of the year 570,137

Shares issued during the year 12,856

Shares redeemed during the year (582,993)

Shares outstanding at the end of the year

Net asset value per share

The accompanying notes form an integral part of these financial

statements.


19/136

Aberdeen Global 17Asia Pacific and Australasian Bond Fund

Asia Pacific and Australasian Bond


Performance

For year ended 30 September 2008, the value of the Asia Pacificand Australasian Bond - A Accumulation shares decreased by 4.2%compared to a decrease of 1.0% in the benchmark, the iBoxx Pan-Asia (ex China) Index.

Managers review

In the first half of the year under review, the majority of localcurrency Asian fixed income markets through to end March 2008saw yields moving lower. This was somewhat counterintuitivegiven that this period was characterised by a sharp rise in regionalinflation, driven first and foremost by considerable food priceinflation and by record highs in oil prices. In addition, fourth quarter2007 GDP growth numbers showed reassuring resilience to the US& global slowdown, emerging stronger than expected. However,the market was focussed firmly on the deteriorating US economicdata which among other things showed continued US housingmarket weakness, deterioration in the Consumer Confidence indicesand worsening employment data. Momentum behind the financialmarket crisis also picked up with key global financial institutionsannouncing larger than expected asset write-downs. This Led theFed to ease policy rates by 250 basis points (bps) in the first half ofthe review period, leading to a sharp rally in US yields and correlatedmove in Asian fixed income markets.

The second half of the review period saw dichotomous performancein regional bond markets. In the first three months through toend-June 2008 regional inflation surged to multi-year highs drivenby a surge in oil prices from US$100 per barrel at the end-March2008, up to US$145 per barrel moving into the start of July. Foodprices, most significantly rice, also saw massive appreciation. Thiswas far in excess of anything budgeted by governments, with thosecountries subsidising food and/or fuel seeing significant pressureon their fiscal balances. Subsequently, markets like India, Indonesia,Malaysia, Taiwan and even China moved to reduce subsidies andraise domestic fuel prices spurring acute inflation. India, Indonesiaand Philippines saw double digit inflation, and while the Fed hadeased an additional 25 bps in April, Asia was forced to begin totighten monetary policy. From first quarter bond yield lows tosecond quarter bond yield highs, markets sold off anywhere from

100 to 400 bps.

In the final three months through to end-September, reverberationsfrom the intensifying US and increasingly global financial marketturmoil led to significant downward revisions to global andAsian growth. Even though Asian central banks were broadly stilltightening into August and in some case September, bond markets

through the third quarter of 2008 pared about half of the secondquarters losses. The market went into extreme risk reduction modewith outflows from regional equity markets providing some supportfor bonds. Additionally, oil prices dropped sharply back to belowUS$100 per barrel and inflation numbers began to show signs ofstabilising. The main exception was Indonesia, which got caughtup in a general emerging market asset unwind, and with volatilityspiking way above 2001/2002 highs, saw bond yields heading backup to retest multi-year highs.

With respect to Asian currency performance the two halves of theyear in review also saw sharp contrasts. In the first half to end-March 2008, with weakness in the global economy emanatingfrom the USA and Asian fundamental data remaining firm, mostAsian currencies moved to multi-year, post Asian financial crisishighs versus the US dollar. In the final six months through to end-September, economic fundamentals played a lesser role in drivingregional currencies as risk aversion reached extreme levels, and aflight to safety saw capital flowing out of regional equity marketsand currencies, which proved to be US dollar supportive. Asiancurrencies significantly underperformed the US dollar broadly, withthe Chinese yuan being the main exception, and the currencies withweaker economic fundamental support; South Korean won, Indianrupee and Philippine peso, underperforming significantly.

Portfolio review

In the first six months in review to end-March 2008, the biasfor bond trades over the year were for risk reduction due to themounting inflation threat, in particular reducing market exposure toIndonesian bonds and increasing it to Singapore, a more defensiveallocation. This continued into the second half of the year, reducingto underweight Thai bond exposure and further shortening duration,while moving to neutral from overweight market exposure to SouthKorea and Malaysia.

Post the bond market sell off in June and July, the portfolio tookthe opportunity to rebuild positions, reducing market underweightsand short duration positions. In particularly the Fund increasedmarket overweights in South Korea and Indonesia and reduced theunderweight to Hong Kong.

Following strong Asia currency performance in the first quarter of2008 the Fund retained a bias to be short Asian currencies duringthe remainder of the year, favouring short positions in ringgit, peso,Singapore dollar and South Korean won, while maintaining somelong exposure to rupiah.


20/136

18 Aberdeen Global

Asia Pacific and Australasian Bond Fund

Outlook

The outlook for Asia is very bond positive. Growth is easing andgrowth expectations are coming down but likely still remain toohigh. Although data looks reasonably firm in a lot of cases, given theoutlook for developed markets, there is a strong chance that we seea marked deterioration in growth data across the region moving intoand over 2009. In this environment oil and commodity prices shouldcontinue to trend lower and favourable base effects in the first partof 2009 will see regional inflation decline sharply. This will providepolicymakers with plenty of leeway to move to a significantly moreaccommodative policy stance, a process that has only just begun,and potentially enable bond markets to test multi-year lows.

Overall, we continue to expect potential weakness across the regionto be seen firstly in the export sectors of most countries, particularthose regions where exports are still growing by 20-30%. Whilenumerous policy makers are likely to pin their hopes on China toact as a buffer to weaker global growth in 2008, we suspect thatChinese imports will also soften notably as global growth slows.The region does approach the slowdown in global growth in a muchbetter position than in previous cycles. Positive fiscal balances,strong external accounts, firm corporate balance sheets and muchimproved liquidity will cushion Asia from the impending globalrecession, but not isolate it.

Asian fundamentals will remain attractive particular against globalmarkets, and once financial market conditions and risk aversionstabilize potentially in the first half of 2009, Asian currencies will

look attractive given current valuations.


21/136

Aberdeen Global 19Asia Pacific and Australasian Bond Fund



Assets US$000Investments in securities at market value (note 2.2) 3,190Cash at bank 281Interest and dividends receivable 28Subscriptions receivable 25Unrealised gains on forward foreign exchangecontracts (note 2.6) 21Other assets 48

Total assets 3,593

Liabilities


Redemptions payable 191




For the year from 1 October 2007 to 30 September 2008US$000

Net assets at the beginning of the year 6,063Net gains from investments 167

Realised losses on investments (313)Currency exchange losses (11)Realised losses on forward foreign exchange contracts (9)Decrease in unrealised depreciation on investments (263)Increase in unrealised appreciation on forwardforeign exchange contracts 49Proceeds from shares issued 9,315Payments for shares redeemed (11,561)Net equalisation paid (note 10) (4)Dividends paid (note 5) (59)




Income US$000Income from investments 274Other income 5Bank interest 12

Total income 291

Epenses

Management fee (note 4.6) 88Administration fee (note 4.1) 36Custodian fee (note 4.2) 6Domiciliary agent, registrar, paying andtransfer agent fees (note 4.4) 27

Management company fees (note 4.5) 1Operational expenses (note 4.7) 11Expense cap refunded by Investment Manager (note 4.8) (48)Annual tax (note 4.9) 3

Total epenses 124


Realised losses on investments (313)Currency exchange losses (11)Realised losses on forwardforeign exchange contracts (9)

Net realised losses (166)

Decrease in unrealiseddepreciation on investments (263)

Increase in unrealised appreciationon forward foreign exchange contracts 49

Net decrease in assets as a result of operations (380)

Share Transactions


A-1 A-2 B-1Shares outstanding at thebeginning of the year 666,181 586,946 8,010

Shares issued duringthe year 838,335 993,328

Shares redeemedduring the year (1,160,597) (1,207,934)

Shares outstanding atthe end of the year 343,919 372,340 8,010

Net asset valueper share 3.76 5.51 3.73



22/136

20 Aberdeen Global

Asia Pacific and Australasian Bond Fund

Portfolio Statement


Security Coupon (%) Maturity Nominal

Market Value

US$000

Percentage of total

net assets %

Hong Kong - 20.48%Hong Kong Government 3.52 22/03/10 750,000 100 2.96Hong Kong Government 4.53 18/06/12 1,850,000 256 7.59Hong Kong Government 4.40 22/08/13 2,400,000 335 9.93

691 20.48Indonesia - 12.68%Indonesia Government 10.00 15/07/17 2,850,000,000 254 7.53Indonesia Government 12.50 15/03/13 1,487,000,000 155 4.59Indonesia Recapital 10.75 15/05/16 200,000,000 19 0.56

428 12.68South Korea - 23.09%Korea Treasury Bond 4.75 10/03/12 713,000,000 564 16.72Korea Treasury Bond 5.00 10/09/16 70,200,000 55 1.63

Korea Treasury Bond 5.50 10/09/17 200,000,000 160 4.74779 23.09

Malaysia - 10.94%Malaysia Government 3.756 28/04/11 230,000 66 1.96Malaysia Government 4.262 15/09/16 1,045,000 301 8.92Malaysia Government 4.72 30/09/15 5,000 2 0.06

369 10.94Philippines - 3.41%Philippine Government 7.125 02/11/13 5,550,000 115 3.41

Singapore - 11.65%Singapore Government 3.75 01/09/16 350,000 258 7.65

Singapore Government 4.00 01/09/18 180,000 135 4.00393 11.65

Thailand - 12.30%Thailand Government 5.125 13/03/18 2,850,000 89 2.64Thailand Government 5.25 12/05/14 10,550,000 326 9.66

415 12.30

Transferable securities 3,190 94.55

Forward foreign echange contracts - 0.62%

Buy Sell

Settlement

Date

Buy

Amount

Sell

Amount

Unrealised

gains/(losses)

US$000

Percentage of

total net assets

%USD KRW 12/11/08 83,000 91,457,700 7 0.21USD IDR 06/10/08 114,000 1,043,670,000 4 0.12USD PHP 14/10/08 312,000 14,490,216 4 0.12PHP USD 14/10/08 14,490,216 302,383 5 0.15IDR USD 06/10/08 1,043,670,000 109,744 1 0.02

Unrealised gains on forward foreign echange contracts 21 0.62

Total investments 3,211 95.17Other net assets 163 4.83Total 3,374 100.00

All securities held at the year end are transferable except where otherwise stated.All securities are listed on an official exchange except where otherwise stated.All investments are in fixed interest securities and equity securities except where otherwise stated.There are no transferable securities and money market instruments dealt in another regulated market except as otherwise stated.


23/136

Aberdeen Global 21Asian Smaller Companies Fund

Asian Smaller Companies


Performance

For the year ended 30 September 2008, the value of the AsianSmaller Companies - A Accumulation shares decreased by 24.7%compared to a decrease of 45.0% in the benchmark, the MSCI ACAsia Pacific ex Japan Small Cap Index.

Change in Benchmark

The Fund changed its benchmark from the MSCI AC Asia Pacific exJapan Index to the MSCI AC Asia Pacific ex Japan Small Cap Index on1 October 2007.

Managers review

In the 12 months under review, Asian small-cap shares, like theirlarger counterparts, fell steeply after the credit crunch spread

worldwide and intensified. Fears of an accelerated global slowdown,coupled with gridlocked money markets and a string of bank failuresheightened risk aversion, triggering a widespread sell-off acrossasset classes. Policymakers resorted to a series of unprecedentedmeasures to shore up confidence and stabilise credit markets, amongthem massive liquidity injection; government guarantees and thenationalisation of various financial institutions. These initiatives,however, failed to calm investors. By the end of the year, the MSCIAC Asia Pacific ex Japan Small Cap Index was sharply lower, withlast years high-flyers China and India among the worst performers.Resource-based markets, such as Australia and Indonesia, also didpoorly, dragged down by the pullback in commodity prices.

Inflation, which had been a major threat earlier, with oil reachingUS$140 per barrel, quickly faded. This was because rising priceshit growth but did not persist long enough to feed into wages. Butsince the second-half of the year, economic growth has slowedprogressively across the region, as external demand and domesticconsumption cooled. Export-reliant countries, notably China andThailand reported a slower second-quarter GDP growth; andSingapore slipped into a recession and downgraded its growthforecasts. Policymakers in Hong Kong, Thailand and Taiwan unveiledstimulus packages, while Korea, Indonesia and Malaysia cut taxes tocounter the downturn. The speed at which Asian economies weredecelerating led to a shift in economic policies. Double-digit inflation

in countries including Indonesia, India and Vietnam prompted centralbanks to hike interest rates. Lately there has been a movementtowards monetary easing. Several central banks, including China, cutinterest rates in September to boost growth (for the mainland, itwas the first reduction in six years).

Portfolio review

The Fund outperformed the benchmark MSCI AC Asia Pacific exJapan Small Cap Index over the volatile year under review, testimonyto the quality of our holdings.

Portfolio activity was brisk, the more significant transactionsincluding the introduction of Hong Kongs ASM International;Indonesian bank Permata; Swiss cement-producer HolcimsIndonesian subsidiary, Holcim Indonesia, which should start tobenefit from its restructuring efforts; Malaysian plantation companyUnited Malacca; Malaysias YNH, a property developer with asubstantial landbank in prime locations; Star Publications, whichowns a leading English-language daily; Bumrungrad Hospital, aThai healthcare group that is expanding into international markets;and Thai retailer Minor Corp, which is trading at a discount to itsunderlying assets.

Against this, we sold Hong Kong footwear-maker Kingmaker forbetter opportunities elsewhere, and stock exchange operator BursaMalaysia, after a strong run-up in its share price. We also acceptedthe takeover offers for Singapores Robinson & Co, the Ascott Groupand Straits Trading, which provided us with good exits. We tookpartial profits in dry bulk shipper Pacific Basin, Korean Reinsurance,plantations company MP Evans, and Sri Lankas Distilleries Co after astrong run.

Outlook

We expect Asian equity markets to remain unsettled for some time,as the fallout from the credit contagion and deteriorating economicconditions continues to depress investor sentiment. The immediatemoment of danger for the financial markets appear to have passed,but it remains to be seen how long this calm will last.

At the same time, politics has flared again across the region.In Thailand, the economy has underperformed because of aworsening stand-off between the elected government and powerfulprotesters. In Malaysia, Abdullah Badawi is stepping down as primeminister much earlier than planned in a bid to appease internalcritics following relative failure at the polls in January. Whilein the Philippines, president Gloria Arroyo is facing yet anotherimpeachment complaint over alleged corruption, vote-rigging andother misconduct.

The severity of credit deleveraging has already pushed most ofthe developed world to the edge of recession. Asia is unlikely toescape unscathed but given its stronger household, corporate and

national balance sheets, the region may not suffer the same degreeof damage. Few financials are directly affected. Nonetheless, eveneconomic powerhouses like China and India have started to feel theeffects. Chinas growth slowed sharply in the third quarter, whileIndias GDP growth is expected to decelerate to around 7% for thefiscal year 2008/09, after rising by 9% or more over the past fewyears.

On the positive side, easing inflationary pressures should bringsome relief to companies and give policymakers more flexibilityto stimulate growth. We expect corporate earnings to flatten oreven decline but are optimistic that Asia, with its well-managedcompanies and strong balance sheets, will weather the downturn.


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22 Aberdeen Global

Asian Smaller Companies Fund



Assets US$000Investments in securities at market value (note 2.2) 411,589Cash at bank 10,693Interest and dividends receivable 1,741Subscriptions receivable 1

Total assets 424,024

Liabilities

Payable for investments purchased 1,497Taxes and expenses payable 689Redemptions payable 343Other liabilities* 1,024



*Includes a provision in respect of Thailand capital gains tax ofUS $1,024,360.



US$000Net assets at the beginning of the year 489,709

Net gains from investments 10,574Realised gains on investments 34,434Currency exchange losses (106)Decrease in unrealised appreciation on investments (177,741)Unrealised currency exchange gains 24Proceeds from shares issued 386,960Payments for shares redeemed (323,648)Net equalisation received (note 10) 265




Income US$000Income from investments 17,572Other income 14Bank interest 701

Total income 18,287

Epenses

Management fee (note 4.6) 6,275Administration fee (note 4.1) 207Custodian fee (note 4.2) 444Domiciliary agent, registrar, paying andtransfer agent fees (note 4.4) 377

Management company fees (note 4.5) 74Operational expenses (note 4.7) 161Annual tax (note 4.9) 175

Total epenses 7,713


Realised gains on investments 34,434Currency exchange losses (106)



Unrealised currency exchange gains 24


Share Transactions


A-2 D-2(GBP) I-2 Z-2

Shares outstanding atthe beginning

of the year 8,213,582 11,573,192 175,868

Shares issuedduring the year 5,652,734 169,613 20,707 24,857,106

Shares redeemedduring the year (2,850,771) (9,904,962) (1,988,580)

Shares outstandingat the endof the year 11,015,545 1,837,843 196,575 22,868,526

Net asset value

per share 18.47 10.25 18.78 7.84



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Aberdeen Global 23Asian Smaller Companies Fund

Portfolio Statement


Percentage of



Hong Kong - 19.62%Aeon Credit Service 7,430,000 5,830 1.39Aeon Stores 4,400,000 7,075 1.68Asia Satellite Telecommunications 5,166,500 7,177 1.71ASM International 300,000 5,491 1.31Caf de Coral 5,000,000 8,837 2.10Convenience Retail Asia 15,950,000 4,308 1.02Fongs Industries 8,148,000 1,708 0.41Giordano International 37,309,000 12,837 3.05Hong Kong & Shanghai Hotels 2,436,258 2,366 0.56Hong Kong Aircraft Engineering * 280,000 3,189 0.76

Hong Kong Ferry 5,000,000 3,962 0.94Hung Hing Printing 7,202,000 1,603 0.38Pacific Basin Shipping 2,630,000 2,148 0.51Public Financial Holdings 17,458,000 8,836 2.10Texwinca 8,700,000 7,134 1.70

82,501 19.62

India - 9.28%Aventis Pharma 160,299 2,755 0.66Castrol 1,500,000 11,053 2.63Godrej Consumer Products 3,360,000 8,089 1.92Gujarat Gas 734,659 4,030 0.96Jammu & Kashmir Bank 200,000 1,921 0.46Kansai Nerolac Paints 580,990 7,375 1.75Mphasis BFL 950,000 3,802 0.90

39,025 9.28

Indonesia - 7.99%Bank NISP 141,748,674 10,514 2.50Bank Permata 78,185,500 7,042 1.67Bank UOB Buana 36,391,659 4,627 1.10Dynaplast 12,093,000 705 0.17Holcim Indonesia 70,000,000 6,342 1.51M.P. Evans 900,250 4,381 1.04

33,611 7.99

Malaysia - 22.03%Aeon 10,200,000 12,439 2.96Fraser & Neave Holdings 3,000,000 7,905 1.88Guinness Anchor 6,000,300 9,103 2.16LPI Capital 2,500,900 7,588 1.80Manulife Insurance 3,511,800 2,875 0.68Oriental Holdings 7,300,000 11,340 2.70Panasonic Manufacturing 892,000 2,758 0.66POS Malaysia & Services 10,000,000 5,241 1.25Star Publications 10,000,000 9,437 2.24United Malacca 4,550,000 7,960 1.89

United Plantations 3,524,900 11,565 2.75YNH Property 11,000,000 4,456 1.06

92,667 22.03


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24 Aberdeen Global

Asian Smaller Companies Fund


Philippines - 4.94%Asian Terminals 71,148,000 4,646 1.10Cebu Holdings 109,646,000 4,866 1.16Ginebra San Miguel 5,080,000 2,009 0.48Jollibee Foods 8,788,700 9,238 2.20

20,759 4.94

Singapore - 18.12%Bukit Sembawang Estates 4,000,500 16,792 3.99Eu Yan Sang 19,554,000 5,130 1.22FJ Benjamin Holdings 15,100,000 3,143 0.75

Hong Leong Finance 5,100,000 10,614 2.52SBS Transit 7,650,000 10,222 2.43Sembcorp Marine 1,880,000 3,939 0.94Singapore Food Industries 7,597,000 4,026 0.96Singapore Post 6,000,000 3,998 0.95WBL 5,500,000 11,928 2.84Wheelock Properties 7,342,000 6,394 1.52

76,186 18.12

South Korea - 2.51%Daegu Bank 390,000 3,382 0.80Jeonbuk Bank 798,200 4,064 0.97Korean Reinsurance 408,000 3,126 0.74

10,572 2.51

Sri Lanka - 3.20%Aitken Spence 538,600 2,138 0.51Chevron Lubricants Lanka 3,559,600 3,729 0.90Commercial Bank of Ceylon 2,870,500 2,782 0.66Dialog Telekom 1,660,340 123 0.03Distilleries Co 2,851,900 1,816 0.43Keells (John) 3,543,797 2,829 0.67

13,417 3.20

Thailand - 10.20%

Bumrungrad Hospital (Alien) 9,583,800 9,075 2.16Central Pattana (Alien) 9,400,000 4,585 1.09Hana Microelectronics (Alien) 22,450,300 8,834 2.10Minor Corporation (Alien) 4,617,300 1,579 0.39Regional Container Line (Alien) 12,000,200 4,669 1.11Siam Makro (Alien) 3,800,000 9,213 2.19Tisco Bank (Alien) 10,751,000 4,896 1.16

42,851 10.20

Total investments 411,589 97.89


Total 420,471 100.00

All securities held at the year end are transferable except where otherwise stated.All securities are listed on an official exchange except where otherwise stated.All investments are in ordinary or common stocks and shares except where otherwise stated.There are no transferable securities and money market instruments dealt in another regulated market except as otherwise stated.* A portion of the stock is on loan at the year end.

Percentage of




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Aberdeen Global 25Australasian Equity Fund

Australasian Equity


Performance

For the year ended 30 September 2008, the value of theAustralasian Equity - A Accumulation shares decreased by 21.2%compared to a decrease of 26.6% in the benchmark, the Australia AllOrdinaries Index.

Managers review

For the 12 months under review, Australian equities, as representedby the All Ordinaries benchmark, fell 26.6% as commodity pricesdeclined significantly towards the end of the year. As well, investorsentiment was affected by contagion from the US credit crisis, whichspread to Europe and Asia, and the downgrade of global growthforecasts.

At the start of the year, economic growth was robust in some

areas, despite growing evidence of a slowdown. In particular, theimpact of tight monetary policy on interest-rate sensitive sectorsshowed in the decline of both public and private building approvals.Business confidence also remained at a seven-year low. Althoughhigher prices for iron ore and coal drove exports to a record, thetrade balance returned to a deficit as oil prices hit new highs.Stronger-than-expected private sector capital expenditure failed tolift second-quarter GDP growth, which slowed to 2.7% year-on-year,largely because of a drop in consumer spending.

The Reserve Bank of Australia (RBA) maintained its tighteningstance for much of the year to curb inflation, which accelerated toa two-year high during the second quarter. But in September, it cut

interest rates for the first time in seven years, by 0.25% to 7.0%, asdownside risks to economic growth became evident, with severalareas such as consumption, household wealth, investment plans andlabour demand seeing a contraction. To allay investor concerns, theRBA injected more than A$14bn into the financial system to boostliquidity. The securities regulator also banned the short-selling of allstocks to protect the domestic market, following similar moves byits US and UK counterparts.

Portfolio review

The Fund outperformed the benchmark by 5.4%. At the stock level,our core holding, QBE Insurance, contributed to relative performanceas it continued to deliver high insurance margins and accretiveearnings growth. The company remains well placed to make furtheropportunistic acquisitions given the current market dislocation. AGLEnergy also added to performance, as investors sought defensiveholdings, and Lion Nathan was aided by its strong cashflow andpositive outlook for the next financial year. Not holding NationalAustralia Bank benefited the Fund, as the bank was forced tomake large provisions against its portfolio of collateralised debtobligations.

In portfolio activity, we introduced Fairfax Media, Tatts Group,Computershare, Orica, Incitec Pivot and Singapore Telecom-munications. Against this, we sold Suncorp-Metway, owing todeterioration in its medium term outlook. We also sold FostersGroup, APN News & Media, Tattersalls, Downer EDI and Telstra.

We remain invested in companies with strong earnings andcashflow, including BHP Billiton, Rio Tinto, Lion Nathan, QBEInsurance and Westpac Bank.

Outlook

Looking ahead, we expect to see a marked slowdown in globaleconomic growth, which would continue to hurt commodity prices.But the local economy is still benefiting from high terms of trade,with the recent fall in the Australian dollar proving advantageous

to exports. However, if markets remain gridlocked and domesticdata continue their downward trend, the RBA is likely to continueto ease monetary policy to support growth. It has already trimmedits growth forecast for the year from 2.25% to 2%, and expectsinflation to remain high in the short term.

Another issue of concern would be that many companies arefinancially engineered. With the approaching slowdown, those withlean balance sheets could face financial difficulty. In that vein, theoverinvestment by commodity producers during the boom years, aswell as the huge amount of merger & acquisition activity that drovethe stock market may return to haunt more acquisitive companies.However, the governments decision to guarantee bank deposits

should boost sentiment. As such, our holdings, which are largelydefensive in nature, should be able to ride out the current extremevolatility. As well, the sell off in markets should increase buyingopportunities.


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26 Aberdeen Global

Australasian Equity Fund



Assets AU$000

Investments in securities at market value (note 2.2) 72,909

Cash at bank 2,243

Interest and dividends receivable 636

Subscriptions receivable 115

Receivable for investments sold 405

Total assets 76,308

Liabilities


Redemptions payable 1,915





AU$000



Realised gains on investments 1,945



Proceeds from shares issued 52,070





Income AU$000

Income from investments 3,556

Other income 10

Bank interest 170

Total income 3,736

Epenses

Management fee (note 4.6) 1,308

Administration fee (note 4.1) 48

Custodian fee (note 4.2) 26

Distribution fee (note 4.3) 27

Domiciliary agent, registrar, paying andtransfer agent fees (note 4.4) 84

Management company fees (note 4.5) 13


Annual tax (note 4.9) 43

Total epenses 1,587


Realised gains on investments 1,945





Share Transactions


A-2 B-2

Shares outstanding at the

beginning of the year 2,544,176 121,708

Shares issued during the year 1,755,238 22,000

Shares redeemed during the year (1,347,559) (63,779)

Shares outstanding

at the end of the year 2,951,855 79,929

Net asset value per share 24.56 21.57

The accompanying notes form an integral part of these

Aberdeen Global - Annual Report and Accounts 20080930

Documents

Transcript of Aberdeen Global - Annual Report and Accounts 20080930