Aberdeen Global

Aberdeen Global
Annual Report and Accounts

For the year ended 30 September 2008
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. ....................................................................................................................................................................................................................................................21 Australasian 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
Incorporation
Aberdeen Global (the Company or the Fund) was incorporated as a socit anonyme, qualifying as a socit dinvestissement capital variable on 25 February 1988 for an unlimited period and commenced operations on 26 April 1988. It is registered under number B27471 at the 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 name of 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.
Aberdeen Global
Chairmans Statement
Investment Managers Review
Review of operations Aggregate funds under management for Aberdeen Global (the Fund) decreased from $15.4 billion to $9.8 billion during the year. This was in the main attributable to tumultuous conditions in world stockmarkets, as the credit crunch bit. The MSCI World Index, for example, fell over 25.6% during the 12 months to 30 September. Although a number of our larger Asian and Emerging Market subfunds significantly out-performed their respective indices over the year, there was a significant impact to investor sentiment and to client asset allocation decisions, resulting in substantial net outflows from the Fund over the year. Turning to specifics, shareholders should be aware that recent market conditions have given rise to reduced liquidity in certain corporate bonds, with increased price volatility being a feature of the market. This has had the effect of widening the spread between buying and selling prices in many securities. There is therefore an increased likelihood of a dilution adjustment being applied to trading in shares of the funds, as the Board seeks to protect the interests of shareholders from the potentially dilutive impact of trading. It is also the case that volatile markets have led to increased instances of fair value pricing being applied in respect of published fund prices, where last available stock market prices are adjusted to account for significant market movements in order to give a fairer price for underlying assets where the relevant stock markets are closed at time of pricing. Fund developments Aberdeen Global Responsible World Equity Fund was launched on 2 November 2007. The Fund applies additional overlays of environmental, social and governance considerations to Aberdeens established global equity process and, where an investee companys practices are considered to be lacking or deficient with regard to these criteria, the Investment Manager will encourage the company to adopt more responsible practices. The Fund has proven popular with investors, and had over US$60million in assets by the year end. Following the year-end we have renamed a number of the sub-funds within the Fund, effective 1 October 2008. The changes in name have been made to represent the objective of these sub-funds more clearly and transparently, and to bring consistency across Aberdeens fund ranges. Details can be found within the website www.aberdeenasset.com/global. As of 1 January 2009, Aberdeen Global Services S.A., a wholly-owned subsidiary 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 may expect to receive a more tailored service, directly from Aberdeen personnel going forward. Your Board is aware of the impact that stockmarket falls have had on fund shareholder value. Market conditions remain very challenging and we support the Investment Managers continued application of their consistent and established investment approach as being appropriate. We have also been pro-active in securing certain reductions in fees charged to the funds by third party service providers which will benefit many shareholders over the coming year.
CG Little
Investment review Global equities plummeted in the year under review as the subprime crisis led to unprecedented deleveraging in global credit markets. Lending was brought to a halt and only massive liquidity injections from central banks and the taxpayer-funded rescue of several major financial institutions prevented the financial system collapsing. US and European markets started on a relatively strong note, but the positive momentum was short-lived as declining house prices and the fall in value of collateralised debt obligations led to bank writedowns and a widespread loss of investor confidence. In this way, problems in the financial arena soon infected the broader economy. Company activity slowed, while sharply higher fuel and food costs began to affect margins as well as consumer demand. At first, it was hoped that emerging markets could come to the rescue, but these export-dependent economies were hit hard by their oil dependency. 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 the mounting difficulties confronting Wall Street. As other institutions quickly became endangered, there was widespread astonishment at the level of their off-balance sheet exposure, and uncertainty as to how to respond. A dramatic succession of bank failures followed, leading the Federal Reserve to seek Congressional support for a US$700billion bailout package. In Europe, there were similar calls on public funds. This culminated finally in coordinated global policy action, including blanket deposit guarantees. Equities overall had a dismal time, and emerging markets were hit disproportionately by capital flight, with leveraged investors scrambling to raise dollars as they faced redemptions at home. Bond markets generally outperformed equities, particularly sovereign bonds. In the first half of the year, the deterioration in US economic data, subsequent downward revision to global growth, heightened risk aversion and a flight to safety out of equities provided strong support. In the second half, however, monetary tightening to combat rising inflation initially led to an increase in yields, but in the final three months, as inflation eased, growth deteriorated rapidly and policy quickly turned with interest rate cuts led by Australia and New Zealand. Their moves quickly led to the unwinding of the carry trade, causing their currencies to plunge as well. Weaker trade, capital flight and, consequently, access to funds have hit emerging economies. While we are encouraged by governments coordinated efforts to ease monetary policy and inject more liquidity into the financial system, it has come at a price. Some major financial institutions in the US and UK are now in effect in public hands. Markets have arguably accepted the necessity of this and understand governments will go to extraordinary lengths to avert a breakdown of the financial system. The markets are now pricing in a prolonged downturn and the developed world is in effect in recession already. Markets may well retest new lows and we expect there to be a premium on companies with visible, sustainable cashflows. In the main, this shift should suit our managers. Their emphasis on good company fundamentals was costly in relative performance as markets soared through much of 2006. Now that equities have experienced wholesale falls, that emphasis has meant there have been few reasons to adjust portfolios and, generally, relative performance has improved. We hope that such outperformance can be consolidated further in the downturn. Aberdeen International Fund Managers Limited
Chairman
9 December 2008 9 December 2008

Aberdeen Global
Net Asset Value History
Numbers are shown in USD terms (unless otherwise stated).

Share Class A-2 B-2 D-2 - GBP I-2 Z-2 A-2 B-2 D-2 - GBP I-2 A-1 A-2 B-1 A-2 A-2 D-2 - GBP I-2 Z-2 A-2 - AU$ B-2 - AU$ A-2 D-2 - GBP I-2 Z-2 A-2 B-2 D-2 - GBP I-2 Z-2 A-1 A-2 B-1 B-2 I-1 I-2 Z-2 A-2 D-2 - GBP I-2 Z-2 A-2 - EUR B-2 - EUR I-2 - EUR Z-2 - EUR A-1 - EUR A-2 - EUR A-2G B-1 - EUR B-2 - EUR D-1 - GBP D-2 - GBP I-2 - EUR Z-2 - EUR NAV per Share 30.9.08 13.29 11.68 7.38 8.75 9.21 42.39 36.21 23.59 43.30 3.76 5.51 3.73 18.47 10.25 18.78 7.84 24.56 21.57 14.92 8.29 15.22 8.13 36.06 33.66 20.12 36.61 8.32 15.16 23.58 15.19 22.10 15.34 9.46 22.73 8.10 4.49 8.21 8.25 28.35 25.89 8.07 6.00 10.57 7.33 5.98 9.72 4.81 8.52 7.38 10.70 NAV per Share 30.9.07 16.37 14.53 8.06 58.48 50.47 28.85 59.29 4.00 5.74 3.98 10.86 24.53 12.08 24.77 31.15 27.63 22.89 11.27 23.16 48.25 45.50 23.84 48.72 10.96 17.28 25.25 17.31 23.91 17.47 23.98 11.90 5.84 11.99 11.91 44.47 41.02 44.65 8.73 14.05 8.69 13.10 6.07 NAV per Share 30.9.06 14.20 12.73 7.59 41.69 36.34 22.31 41.91 3.85 5.35 3.83 18.13 9.70 18.15 23.74 21.26 14.33 7.66 14.39 32.23 30.74 17.30 32.37 16.66 23.02 16.70 21.94 41.24 38.55 8.85 13.46 8.85 12.69 Portfolio TurnoverH As at 30.9.08 50.27% 50.27% 50.27% 50.27% 50.27% (73.93%) (73.93%) (73.93%) (73.93%) (27.78%) (27.78%) (27.78%) (98.78%) (98.78%) (98.78%) (98.78%) (30.72%) (30.72%) (46.03%) (46.03%) (46.03%) (46.03%) (59.64%) (59.64%) (59.64%) (59.64%) (59.64%) 154.76% 154.76% 154.76% 154.76% 154.76% 154.76% 154.76% (8.59%) (8.59%) (8.59%) (8.59%) (2.83%) (2.83%) (2.83%) (2.83%) (82.33%) (82.33%) (82.33%) (82.33%) (82.33%) (82.33%) (82.33%) (82.33%) (82.33%) TER % As at 30.9.08 1.78 2.78 1.78 1.24 0.24 1.93 2.93 1.93 1.17 1.75 1.75 2.75 2.02 2.02 1.23 0.23 1.79 2.79 2.05 2.01 1.22 0.22 1.77 2.77 1.77 1.24 0.27 1.74 1.74 2.71 2.71 1.22 1.22 0.22 2.16 2.16 1.37 0.37 1.79 2.79 1.25 0.25 1.48 1.48 1.48 2.48 2.48 1.48 1.48 0.94 0.19
3
Fund American Opportunities
Asia Pacific
Asia Pacific and Australasian Bond
Asia Pacific and JapanA Asian Smaller Companies
Australasian Equity China Opportunities
Emerging Markets
Emerging Markets BondB
Emerging Markets Smaller CompaniesC
European Equity
European High Yield Bond
Aberdeen Global
Net Asset Value History continued
Fund European Opportunities (Ex UK) Fixed Interest OpportunitiesD High Yield Bond India Opportunities
Japan Smaller CompaniesE
Japanese Equity
Responsible World EquityF
Sterling Corporate Bond Sterling Financials Bond Technology
UK Opportunities
World Bond World Equity
Share NAV per NAV per NAV per Class Share 30.9.08 Share 30.9.07 Share 30.9.06 A-2 - EUR 7.39 11.07 10.44 D-2 - GBP 5.88 7.74 7.07 D-1 - GBP 1.05 D-1 - GBP 0.8748 1.0944 1.08 A-2 58.58 82.96 57.09 D-2 - GBP 32.58 40.85 30.55 I-2 59.74 83.85 57.37 Z-2 6.59 A-2 - JPY 501.68 772 D-2 - GBP 2.65 3.30 I-2 - JPY 461.42 773 A-2 - JPY 236.25 365 391 B-2 - JPY 201.89 315 340 D-2 - GBP 1.25 1.56 A-2 7.55 I-2 7.45 Z-2 7.48 D-1 - GBP 0.9186 1.0069 1.05 A-2 - GBP 1.7142 1.6925 1.64 A-2 2.40 3.35 2.70 B-2 2.20 3.10 2.53 D-2 - GBP 1.34 1.65 1.44 I-2 8.34 A-2 - GBP 11.66 16.13 14.76 B-2 - GBP 10.19 14.24 13.16 D-1 - GBP 11.15 15.79 14.70 D-1 - GBP 1.3262 1.1405 1.20 A-2 11.78 15.11 12.56 B-2 10.82 14.01 11.77 D-2 - GBP 6.55 7.44 6.72 I-2 7.74 Z-2 12.02 15.18 -
Portfolio TurnoverH As at 30.9.08 6.75% 6.75% 19.54% (31.80%) (31.80%) (31.80%) (31.80%) 13.34% 13.34% 13.34% 1.28% 1.28% 1.28% 4.29% 4.29% 4.29% 5.47% 33.91% (27.79%) (27.79%) (27.79%) (27.79%) (5.74%) (5.74%) (5.74%) 193.84% 14.45% 14.45% 14.45% 14.45% 14.45%
TER % As at 30.9.08 1.73 1.77 1.54 2.15 2.15 1.36 0.36 1.80 1.80 1.26 1.77 2.77 1.77 1.76 1.22 0.22 1.61 1.04 2.08 3.08 2.08 1.29 1.72 2.72 1.72 1.19 1.73 2.73 1.73 1.19 0.19
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) (Average fund value over 12 months) x 100
= Portfolio Turnover
Exchange Rates - US$ US$ - AUD - - US$ US$ - JPY
30.9.08 1.799900 1.240402 1.256150 1.432870 105.172510
30.9.07 2.031300 1.134003 1.431800 1.418704 115.207010
30.9.06 1.870000 1.340856 1.475950 1.266977 117.951872
Aberdeen Global
Summary of Historic Information

Net Asset Value 30.09.08 Fund Base Currency (000)
Net Asset Value 30.09.07 (000)
Net Asset Value 30.09.06 (000)
American Opportunities Asia Pacific Asia Pacific and Australasian Bond Asia Pacific and JapanA Asian Smaller Companies Australasian Equity China Opportunities Emerging Markets Emerging Markets BondB Emerging Markets Smaller CompaniesC European Equity European High Yield Bond European Opportunities (Ex UK) Fixed Interest OpportunitiesD High Yield Bond India Opportunities Japan Smaller CompaniesE Japanese Equity Responsible World EquityF Sterling Corporate Bond Sterling Financials Bond Technology UK Opportunities World Bond World Equity Consolidated Total
New Fund launched 17 April 2007 and then subsequently closed on 26 October 2007. The Fund changed its name from Sovereign High Yield Bond on 30 March 2007. 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.
A B C
US Dollars US Dollars US Dollars US Dollars US Dollars Australian Dollars US Dollars US Dollars US Dollars US Dollars Euro Euro Euro Sterling Sterling US Dollars Japanese Yen Japanese Yen US Dollars Sterling Sterling US Dollars Sterling Sterling US Dollars
58,934 3,889,186 3,374 420,471 74,230 411,716 849,974 356,403 95,297 39,884 225,705 76,687 28,060 1,963,482 3,964,232 10,323,778 61,250 12,357 33,891 67,173 36,490 37,595 746,227 9,876,716
77,160 7,472,634 6,063 6,192 489,709 82,620 838,690 906,993 537,624 113,328 116,918 375,234 144,081 43,762 2,779,282 6,436,584 16,487,626 13,740 36,749 77,257 56,046 34,368 604,761 15,459,269
16,326 5,540,149 1,170 446,549 58,729 723,872 219,105 191,399 39,070 112,015 64,647 23,857 49,715 1,959,235 1,360,239 14,265 41,419 75,827 35,485 44,066 79,739 9,973,099
Aberdeen Global
Aberdeen Global - Combined Statements
Combined Statement of Net Assets As at 30 September 2008 Assets US$000 Investments in securities at market value (note 2.2) 9,663,576 Cash at bank 119,541 Interest and dividends receivable 53,649 Subscriptions receivable 22,922 Receivable for investments sold 138,389 Unrealised gains on forward foreign exchange contracts (note 2.6) 4,572 Other assets 691 Total assets 10,003,340
Combined Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Other income Bank interest received Total income Expenses Gross Management fee Less: Management fee cross holdings Net Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Distribution fee (note 4.3) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Expense cap refunded by Investment Manager (note 4.8) Mauritius Income Tax (note 11) Annual tax (note 4.9) Bank interest paid Total expenses Net gains from investments US$000 401,130 1,184 6,852 409,166
190,582 (4,442) 186,140 3,740 13,550 614 9,565 2,010 3,570 (48) 1,103 5,446 20 225,710 183,456 1,332,436 (19,357) (5,898) 1,490,637
Liabilities Payable for investments purchased Taxes and expenses payable Redemptions payable Unrealised losses on forward foreign exchange contracts (note 2.6) Other liabilities* Total liabilities Net assets at the end of the year
10,554 19,708 69,595 1 26,766 126,624 9,876,716
*Includes a provision in respect of Thailand capital gains tax of US$ 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 15,459,269 Exchange rate effect on opening net assets (20,982) Net gains from investments 183,456 Realised gains on investments 1,332,436 Currency exchange losses (19,357) Realised losses on forward foreign exchange contracts (5,898) Decrease in unrealised appreciation on investments (5,165,198) Unrealised currency exchange losses (904) Decrease in unrealised depreciation on open forward foreign exchange contracts 7,979 Proceeds from shares issued 8,268,548 Payments for shares redeemed (10,144,766) Net equalisation received (note 10) 943 Dividends paid (note 5) (18,810) Net assets at the end of the year 9,876,716
Realised gains on investments Currency exchange losses Realised losses on forward foreign exchange contracts Net realised gains Decrease in unrealised appreciation on investments Unrealised currency exchange losses Decrease in unrealised depreciation on open forward foreign exchange contracts Net decrease in assets as a result of operations
(5,165,198) (904)
7,979 (3,667,486)
The accompanying notes form an integral part of these financial statements.
Aberdeen Global
American Opportunities
Performance For the year ended 30 September 2008, the value of the American Opportunities - A Accumulation shares decreased by 18.8% compared to a decrease of 22.0% in the benchmark, the S&P 500 Index. Managers review US equity markets fell steeply during the 12 months to September 2008, with the benchmark S&P 500 Index down by 24% in US dollar terms. By sector, consumer staples and health care were the top performers given their defensive profiles, whereas financials fared the worst. Credit markets imploded, causing the historic failure of major investment banks, with some such as Bear Stearns taken over and others, notably Lehman Brothers, left to go under. Along the way, the government made explicit its guarantee behind troubled federal mortgage agencies Freddie Mac and Fannie Mae; it also made available billions in credit to keep markets liquid. The financial crisis unravelled slowly. Problems initially seemed confined to the credit derivatives market and affected only a handful of participants. However, as the magnitude of the financial crisis became more evident, markets witnessed credit issues ripple across the banking sector and into the broader economy. Financial leverage that had previously driven economic growth began to unwind, leaving credit markets illiquid as default risk aversion and a lack of visibility restricted investors. For that reason, policymakers employed progressively more radical measures to aid financial markets: the government unveiled a US$168bn stimulus package to boost the economy, the Fed cut interest rates six times to 2% and regulators temporarily banned the 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 a modified version days later). Meanwhile, economic data emitted contrary signals: while producer prices hit a 27-year high, driven by wholesale energy prices, the continued fall in housing prices, as well as the sharp contraction in manufacturing pointed to a slowdown. Those hopes that economic growth 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 poor job market. With the weakening of the domestic economy, capital outflows increased. Commodity prices spiked early on speculation that global demand would remain robust. Expectations for global growth evaporated and commodities fell sharply in mid-summer.
Portfolio review The Fund outperformed the benchmark S&P 500 Index over the 12-months, driven by positive stock selection. The Funds largest contribution to return was its underweight to financials and avoidance of the well-publicised disasters. Conversely, the Funds exposure to health care detracted from performance, specifically holdings in managed care providers, which struggled throughout the year. At the stock level, rising commodities benefited our energy holdings EOG Resources and Apache Corp, while homebuilder Toll Brothers saw positive returns as the company managed business well through the environment and given the companys strong balance sheet. The Fund also benefited from strong returns in tobacco company UST and specialty chemical maker Rohm & Hass, after both companies were bid for. Aerospace company Textron Inc was the main detractor, as slowing business jet demand and concerns within the companys financing arm led to a sell-off in shares. Technology companies Motorola and EMC, as well as managed care provider United Health Group saw weak performance during the year. In portfolio activity, we took advantage of market weakness to introduce technology companies Oracle Corp and Alliance Data Systems, given what we saw as attractive long-term prospects and solid business franchises. Additionally, we also introduced oil service provider Schlumberger after a sell off in commodities led valuations to become more attractive. Conversely, we sold communications company Motorola and insurance broker Willis Group as the outlook for both companies deteriorated. Throughout the year, the Fund carefully managed its exposure to energy as commodity prices spiked. Additionally, we increased our positions selectively across specific financial companies on price weakness and a stabilizing environment. Outlook The world remains stunned by the state of economic paralysis that the financial debacle has brought about. There has been unprecedented policy action by regulators and authorities. Aid to beleaguered banks has totalled hundreds of billions of dollars. The global economy will survive, but pain may be heightened in the near term. American companies historically have been more agile in managing through difficult periods. But the lower spending rate of American consumers worried about job losses and home values remains an unanswerable question. Against this dismal backdrop exist, a number of companies at attractive valuations that will endure and prosper. There have been a number of company failures and we maintain weaker companies will still struggle, thereby creating opportunities for the strong to grow and take market share.
Aberdeen Global American Opportunities Fund
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Subscriptions receivable Receivable for investments sold Total assets Liabilities Payable for investments purchased Taxes and expenses payable Total liabilities Net assets at the end of the year 154 126 280 58,934 US$000 57,659 977 87 36 455 59,214
Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Other income Bank interest Total income Expenses Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Distribution fee (note 4.3) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Annual tax (note 4.9) Total expenses Net losses from investments Realised losses on investments Currency exchange gains Realised losses on forward foreign exchange contracts Net realised losses Decrease in unrealised appreciation on investments Net decrease in assets as a result of operations 1,034 37 6 2 75 11 33 35 1,233 (186) (988) 45 (64) (1,193) (12,977) (14,170) US$000 980 9 58 1,047
Statement of Changes in Net Assets For the year from 1 October 2007 to 30 September 2008 Net assets at the beginning of the year Net losses from investments Realised losses on investments Currency exchange gains Realised losses on forward foreign exchange contracts Decrease in unrealised appreciation on investments Proceeds from shares issued Payments for shares redeemed Net equalisation paid (note 10) Net assets at the end of the year US$000 77,160 (186) (988) 45 (64) (12,977) 21,917 (25,972) (1) 58,934
Share Transactions For the year from 1 October 2007 to 30 September 2008 Shares outstanding at the beginning of the year Shares issued during the year Shares redeemed during the year Shares outstanding at the end of the year Net asset value per share A-2 761,869 1,273,512 (514,048) 1,521,333 13.29 B-2 13,713 (2,618) 11,095 11.68 D-2(GBP) 3,939,633 88,700 (1,189,241) 2,839,092 7.38 I-2 1 1 8.75 Z-2 153,181 (59,907) 93,274 9.21
Portfolio Statement
As at 30 September 2008
Market value Description Quantity US$000
Percentage of total net assets %
Consumer Discretionary - 9.13% BorgWarner 29,550 932 Macys 43,850 758 Stanley Works 16,850 683 Staples 36,500 794 TJX Companies 18,611 563 Toll Brothers 33,700 821 VF Corp 10,800 827 5,378
1.58 1.29 1.16 1.35 0.96 1.39 1.40 9.13
Consumer Staples - 11.31% Kraft 33,950 1,082 PepsiCo 14,400 1,003 Philip Morris International 25,850 1,210 Procter & Gamble 19,980 1,334 Supervalu 38,800 877 Sysco 22,100 689 UST 7,250 471 6,666
1.84 1.70 2.05 2.26 1.49 1.17 0.80 11.31
Energy - 12.54% Apache 14,100 1,394 Ensco 19,200 1,035 EOG Resources 15,100 1,281 Exxon Mobil 23,832 1,765 Hess Corp 14,700 1,119 Schlumberger 10,800 797 7,391
2.37 1.76 2.17 2.99 1.90 1.35 12.54
Financials - 14.69% Aflac 15,400 789 Allstate 21,200 914 Assurant 14,250 708 Capital One Financial 16,150 711 Goldman Sachs 5,500 664 JPMorgan Chase 32,350 1,326 Royal Bank of Canada 29,995 1,360 State Street 17,400 766 Wells Fargo 31,850 1,059 Zions Bancorp 10,400 356 8,653
1.34 1.55 1.20 1.21 1.13 2.25 2.31 1.30 1.80 0.60 14.69
Health Care - 14.49% Aetna 45,600 1,607 Johnson & Johnson 22,300 1,492 Pfizer 52,400 925 Quest Diagnostics 23,290 1,170 St Jude Medical 17,800 737 United Health Group 50,400 1,058 Wyeth 23,440 858 Zimmer Holdings 11,091 685
2.73 2.53 1.57 1.99 1.25 1.80 1.46 1.16 14.49

9
8,532
Portfolio Statement continued
Industrials - 11.44% 3M 16,089 1,067 Canadian National Railway 22,300 1,073 Deere & Co 13,330 637 Emerson Electric 19,000 731 ITT Corp 13,450 715 Textron Inc 29,950 824 United Technologies 24,815 1,406 US Airways Group 51,500 288 6,741
1.81 1.82 1.08 1.24 1.21 1.40 2.39 0.49 11.44
Information Technology - 14.24% Alliance Data Systems 17,300 984 Anixter 11,800 661 Cisco Systems 55,500 1,209 Cognizant Technology Solutions 38,150 803 EMC 81,550 935 Intel 50,650 875 Microsoft 55,000 1,376 ON Semiconductor 126,750 779 Oracle Corp 41,600 781 8,403
1.67 1.12 2.05 1.36 1.59 1.48 2.32 1.32 1.33 14.24
Materials - 1.94% Dow Chemical 36,950 1,144 Telecommunication Services - 3.02% Telus 21,750 792 Windstream Corp 91,700 989 1,781
1.94
1.34 1.68 3.02
Utilities - 2.46% Allegheny Energy 10,950 389 PPL Corp 29,090 1,059 1,448 Fair value adjustment (note 2.2) 1,522 Total investments Other net assets Total
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.
0.66 1.80 2.46 2.58 97.84 2.16 100.00
57,659 1,275 58,934
10
Asia Pacific
Performance For year ended 30 September 2008, the value of the Asia Pacific - A Accumulation shares decreased by 27.5% compared to a decrease of 37.6% in the benchmark, the MSCI AC Asia Pacific ex Japan Index. Managers review After having set new records last October, Asian equities fell with increasing severity through the rest of the year under review. Initial optimism that Asia might somehow decouple from decelerating growth in the West gave way to a deepening crisis in the global financial system. As the crisis spread, some of Wall Streets most respected names were toppled as if they were start-ups. Policymakers struggled to find an effective response, such was the speed with which events unfolded. After billions were provided in liquidity (a result of banks refusing to lend), the US Treasury put forward a US$700bn rescue package, a revised version of which Congress passed. In Asia, China and Korea were among the biggest market fallers, with their benchmark indices losing more than 40% each in US dollar terms. Earlier on, still-high commodity prices had supported markets in more resource-led economies, while hopes of political change had lifted Thailand and Taiwan. In the second half, however, capital flight saw regional shares plunge more than their counterparts in developed markets despite their better fundamentals. Foreign investors, such as hedge funds, were forced to unwind positions to meet redemptions elsewhere. Initially, Asia had appeared able to withstand the downturn in the US. Regional growth was solid, with exporters shifting their shipments to Europe. Economic conditions, however, steadily deteriorated. At the turn of the year, export-reliant economies, particularly those in China, Hong Kong, Korea and Singapore, had started 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, spiked on the back of record food and fuel prices. A build-up in speculative positions added to these price pressures. Policymakers were thus in a quandary, confronted with having to tame inflation without arresting growth. But price pressures soon passed, enabling their focus to turn to the slowdown. To this end, Taiwan launched a stimulus package, while Korea and Indonesia cut taxes. Political uncertainty increased over the year. In Korea, president Lee Myung-Bak was forced to reshuffle his cabinet after backing down from his bid to resume US beef imports. The leadership crisis in Thailand and Malaysia continued to play out. Thai prime minister Somchai Wongsawat, the brother-in-law of former leader Thaksin Shinawatra, is now under pressure to step down. He had taken over from Samak Sundaravej, who was forced out of office for alleged corruption and conflicts of interest. Malaysian prime minister Abdullah Badawi is planning to step down in favour of his deputy after the poor showing at the polls left the ruling coalition in turmoil, while opposition leader Anwar Ibrahim was sworn in to parliament. He had won a by-election after having served a five-year ban from politics.
Portfolio review For the year under review, the Aberdeen Global Asia Pacific Fund fell 27.5% in US dollar terms, outperforming the benchmark MSCI AC Asia Pacific ex Japan index, which declined 37.6%. We introduced Singapore-listed Fraser & Neave, a regional food and beverages company with additional interests in property and publishing. We added to several holdings on price weakness, such as Hong Kong-listed lender Standard Chartered and semiconductor equipment-maker ASM Pacific. Conversely, we sold Australias Leighton Holdings, an exceptionally rewarding long-term position, as well as Malaysias Maybank, a relatively recent holding, on concerns over its lack of focus, including the recent spate of overseas acquisitions. We also divested Korean lender Kookmin Bank, accepting its repurchase offer, and tidied up the small holding in Taiwanese lender, Sinopac, whose management failed to live up to expectations. In addition, we reduced several holdings after strong runs in their share price, including Malaysias Public Bank and Hong Kong-listed utility CLP. Outlook The worst of the credit crisis may appear to be behind us, but its overriding characteristic is that it keeps presenting fresh points of stress. In recent days, central banks, realising the systemic nature of the problem, have acted in unison, cutting interest rates, providing new lines of liquidity, guaranteeing loans and, in the US, even lending to money markets. Their response has quickly gone beyond ideology to embrace a more pragmatic approach of taking stakes in institutions until the trouble subsides. This has helped shortterm interbank rates to ease somewhat, although confidence is still extremely fragile. With a recession almost a certainty across developed economies, focus has shifted to lessening its severity. Asia is likely to suffer as well, albeit to a smaller degree. Hope lies in the regions robust household, corporate and national balance sheets. But Chinas sharp slowdown is a major worry, with third-quarter growth decelerating more than expected. Fortunately, Beijing has the capital to spend (as do other Asian governments) and at the time of writing, has introduced 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 for the slack left by Asias shrinking export markets. Receding inflation should relieve some pressure on corporate margins and wages, even though prices tend to be sticky downwards. We expect corporate earnings to level off or even decline over the next 12 to 18 months. Consensus estimates appear optimistic still and we think it is too soon to call a bottom, despite markets having fallen a long way since they peaked a year ago. Over the long term, however, we are confident that Asia will not just weather the downturn, but emerge the stronger for it.
Aberdeen Global Asia Pacific Fund
11
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Subscriptions receivable Receivable for investments sold Total assets Liabilities Taxes and expenses payable Redemptions payable Other liabilities* Total liabilities Net assets at the end of the year US$000 3,800,732 14,798 11,971 10,020 125,361 3,962,882 8,327 44,469 20,900 73,696 3,889,186
Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Other income Bank interest Total income Expenses Gross Management fee Less: Management fee cross holdings Net Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Distribution fee (note 4.3) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Annual tax (note 4.9) Total expenses Net gains from investments Realised gains on investments Currency exchange losses Realised losses on forward foreign exchange contracts Net realised gains Decrease in unrealised appreciation on investments Unrealised currency exchange losses Net decrease in assets as a result of operations US$000 166,337 291 2,793 169,421
100,029 (3,971) 96,058 1,057 5,163 374 3,781 888 1,268 2,564 111,153 58,268 814,367 (10,314) (94) 862,227 (2,461,609) (506) (1,599,888)
Statement of Changes in Net Assets For the year from 1 October 2007 to 30 September 2008
US$000
Share Transactions For the year from 1 October 2007 to 30 September 2008 A-2 B-2 D-2(GBP) I-2 Shares outstanding at the beginning of the year 110,667,131 1,013,428 12,315,270 3,849,511 Shares issued during the year 31,065,765 1,532 1,870,799 12,938,635
Net assets at the beginning of the year 7,472,634 Net gains from investments 58,268 Realised gains on investments 814,367 Currency 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 2,578,015 Payments for shares redeemed (4,557,276) Net equalisation paid (note 10) (4,299) Net assets at the end of the year 3,889,186
Shares redeemed during the year (70,445,510) (481,194) (7,086,508) (4,160,301) Shares outstanding at the end of the year 71,287,386 533,766 7,099,561 12,627,845 Net asset value per share 42.39 36.21 23.59 43.30 The accompanying notes form an integral part of these financial statements.
12
Portfolio Statement
Australia - 7.98% QBE Insurance Group * 7,550,431 160,486 Rio Tinto 1,840,000 112,949 Tabcorp Holdings 5,710,956 37,017 310,452
4.13 2.90 0.95 7.98
China - 4.80% China Mobile * 10,000,221 98,885 PetroChina * 81,000,810 83,300 Zhejiang Expressway * 8,250,170 4,818 187,003
2.54 2.14 0.12 4.80
Hong Kong - 20.50% ASM Pacific Technology * 9,959,420 57,200 CLP Holdings * 2,200,926 17,658 Dah Sing Banking 10,099,621 10,341 Dah Sing Financial 6,563,009 27,246 Dairy Farm International 14,027,063 70,205 Giordano International * 31,477,573 10,831 Hang Lung Group * 16,608,186 52,553 Hang Lung Properties * 15,750,442 36,244 Jardine Strategic Holdings * 9,878,539 138,300 Standard Chartered 4,975,426 118,568 Sun Hung Kai Properties * 7,025,426 70,870 Swire Pacific A * 675,491 5,884 Swire Pacific B 77,208,092 133,177 Wing Hang Bank * 6,332,239 48,137 797,214
1.47 0.45 0.27 0.70 1.81 0.28 1.35 0.93 3.56 3.05 1.82 0.15 3.42 1.24 20.50
India - 14.75% Aberdeen Global - India Opportunities Fund 23,175,093 152,724 GAIL 260,000 13,520 GAIL GDR 2,350,060 20,679 GlaxoSmithKline Pharmaceuticals 1,261,550 32,054 Grasim Industries 1,080,560 39,334 HDFC 1,900,000 86,165 Hero Honda 2,485,500 46,683 ICICI Bank 3,500,048 40,663 Infosys Technologies 2,100,600 63,451 New India Investment Trust 4,780,000 10,711 Satyam Computer Services 10,680,500 67,350 573,334
3.93 0.35 0.53 0.82 1.01 2.22 1.20 1.05 1.63 0.28 1.73 14.75
Indonesia - 1.70% Unilever Indonesia 83,310,036 65,985 Malaysia - 4.89% British American Tobacco 3,500,020 42,302 Bumiputra Commerce 21,600,030 48,136 Public Bank (Alien) 34,350,714 99,491
1.70
1.09 1.24 2.56 4.89

13
189,929
Philippines - 2.72% Ayala Land 251,837,322 49,466 Bank of the Philippine Islands 58,119,424 56,462 105,928
1.27 1.45 2.72
Singapore - 21.73% City Developments * 17,450,779 107,307 Fraser & Neave Limited 25,800,000 64,885 Oversea-Chinese Banking Corp * 32,000,215 160,508 Singapore Airlines * 8,350,600 83,303 Singapore Technologies Engineering * 64,600,971 120,663 Singapore Telecommunications * 51,250,862 116,523 United Overseas Bank * 11,320,929 133,051 Venture Corp * 10,883,030 58,547 844,787
2.76 1.67 4.13 2.14 3.10 3.00 3.42 1.51 21.73
South Korea - 7.71% Daegu Bank 2,924,490 25,361 Hyundai Motor (Pref) 300,290 5,774 Pusan Bank 3,488,570 30,469 Samsung Electronics (Pref) 504,000 154,902 Shinsegae 180,000 83,524 300,030
0.65 0.15 0.78 3.98 2.15 7.71
Sri Lanka - 0.77% Commercial Bank of Ceylon 3,554,187 3,445 DFCC Bank 6,108,073 5,638 Dialog Telekom 73,606,300 5,435 Keells (John) 15,737,023 12,565 National Development Bank 2,857,725 3,416 30,499
0.09 0.14 0.13 0.32 0.09 0.77
Taiwan - 5.92% Fubon Financial 54,001,000 37,795 Taiwan Mobile 45,200,975 71,478 TSMC 74,300,805 120,955 230,228
0.97 1.84 3.11 5.92
Thailand - 4.26% PTT Exploration & Production (Alien) 25,000,045 93,585 Siam Cement (Alien) 17,900,636 71,758 Total investments Other net assets Total
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. 14
2.41 1.85 4.26 97.73 2.27 100.00
165,343 3,800,732 88,454 3,889,186
Asia Pacific and Japan

Closure of Fund The Fund was closed on 26 October 2007. The Manager is in the process of winding the Fund up. Performance For the period 1 October 2007 to 26 October 2007, the value of the Asia Pacific and Japan - A Accumulation shares increased by 1.6% compared to an increase of 3.0% in the benchmark, the MSCI AC Asia Pacific Index. Managers review The Fund was terminated on 26 October 2007, following the redemption of a major shareholder, and all positions were closed out.
Aberdeen Global Asia Pacific and Japan Fund
15
Statement of Net Assets As at 30 September 2008 Assets Cash at bank Other assets Total assets Liabilities Taxes and expenses payable Other liabilities* Total liabilities Net assets at the end of the year *Includes a provision in respect of Thailand capital gains tax of US$ 69,423. US$000 42 36 78
Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Bank interest Total income Expenses Management fee (note 4.6) Administration fee (note 4.1) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Operational expenses (note 4.7) Total expenses Net gains from investments Realised gains on investments Currency exchange losses Net realised gains Decrease in unrealised appreciation on investments Unrealised currency exchange losses Net increase in assets as a result of operations US$000 16 4 20
9 69 78
9 (9) (13) 23 10 10 517 (4) 523 (400) (5) 118
Statement of Changes in Net Assets For the year from 1 October 2007 to 30 September 2008 Net assets at the beginning of the year Net gains from investments Realised gains on investments Currency exchange losses Decrease in unrealised appreciation on investments Unrealised currency exchange losses Proceeds from shares issued Payments for shares redeemed Net equalisation paid (note 10) Net assets at the end of the year US$000 6,192 10 517 (4) (400) (5) 178 (6,487) (1)
Share Transactions For the year from 1 October 2007 to 30 September 2008 Shares outstanding at the beginning of the year Shares issued during the year Shares redeemed during the year Shares outstanding at the end of the year Net asset value per share The accompanying notes form an integral part of these financial statements. A-2 570,137 12,856 (582,993)
16
Aberdeen Global Asia Pacific and Japan Fund
Asia Pacific and Australasian Bond

Performance For year ended 30 September 2008, the value of the Asia Pacific and Australasian Bond - A Accumulation shares decreased by 4.2% compared to a decrease of 1.0% in the benchmark, the iBoxx PanAsia (ex China) Index. Managers review In the first half of the year under review, the majority of local currency Asian fixed income markets through to end March 2008 saw yields moving lower. This was somewhat counterintuitive given that this period was characterised by a sharp rise in regional inflation, driven first and foremost by considerable food price inflation and by record highs in oil prices. In addition, fourth quarter 2007 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 economic data which among other things showed continued US housing market weakness, deterioration in the Consumer Confidence indices and worsening employment data. Momentum behind the financial market crisis also picked up with key global financial institutions announcing larger than expected asset write-downs. This Led the Fed to ease policy rates by 250 basis points (bps) in the first half of the review period, leading to a sharp rally in US yields and correlated move in Asian fixed income markets. The second half of the review period saw dichotomous performance in regional bond markets. In the first three months through to end-June 2008 regional inflation surged to multi-year highs driven by a surge in oil prices from US$100 per barrel at the end-March 2008, up to US$145 per barrel moving into the start of July. Food prices, most significantly rice, also saw massive appreciation. This was far in excess of anything budgeted by governments, with those countries subsidising food and/or fuel seeing significant pressure on their fiscal balances. Subsequently, markets like India, Indonesia, Malaysia, Taiwan and even China moved to reduce subsidies and raise domestic fuel prices spurring acute inflation. India, Indonesia and Philippines saw double digit inflation, and while the Fed had eased an additional 25 bps in April, Asia was forced to begin to tighten monetary policy. From first quarter bond yield lows to second quarter bond yield highs, markets sold off anywhere from 100 to 400 bps. In the final three months through to end-September, reverberations from the intensifying US and increasingly global financial market turmoil led to significant downward revisions to global and Asian growth. Even though Asian central banks were broadly still tightening into August and in some case September, bond markets
through the third quarter of 2008 pared about half of the second quarters losses. The market went into extreme risk reduction mode with outflows from regional equity markets providing some support for bonds. Additionally, oil prices dropped sharply back to below US$100 per barrel and inflation numbers began to show signs of stabilising. The main exception was Indonesia, which got caught up in a general emerging market asset unwind, and with volatility spiking way above 2001/2002 highs, saw bond yields heading back up to retest multi-year highs. With respect to Asian currency performance the two halves of the year in review also saw sharp contrasts. In the first half to endMarch 2008, with weakness in the global economy emanating from the USA and Asian fundamental data remaining firm, most Asian currencies moved to multi-year, post Asian financial crisis highs versus the US dollar. In the final six months through to endSeptember, economic fundamentals played a lesser role in driving regional currencies as risk aversion reached extreme levels, and a flight to safety saw capital flowing out of regional equity markets and currencies, which proved to be US dollar supportive. Asian currencies significantly underperformed the US dollar broadly, with the Chinese yuan being the main exception, and the currencies with weaker economic fundamental support; South Korean won, Indian rupee and Philippine peso, underperforming significantly. Portfolio review In the first six months in review to end-March 2008, the bias for bond trades over the year were for risk reduction due to the mounting inflation threat, in particular reducing market exposure to Indonesian bonds and increasing it to Singapore, a more defensive allocation. This continued into the second half of the year, reducing to underweight Thai bond exposure and further shortening duration, while moving to neutral from overweight market exposure to South Korea and Malaysia. Post the bond market sell off in June and July, the portfolio took the opportunity to rebuild positions, reducing market underweights and short duration positions. In particularly the Fund increased market overweights in South Korea and Indonesia and reduced the underweight to Hong Kong. Following strong Asia currency performance in the first quarter of 2008 the Fund retained a bias to be short Asian currencies during the remainder of the year, favouring short positions in ringgit, peso, Singapore dollar and South Korean won, while maintaining some long exposure to rupiah.
Aberdeen Global Asia Pacific and Australasian Bond Fund
17
Outlook The outlook for Asia is very bond positive. Growth is easing and growth expectations are coming down but likely still remain too high. Although data looks reasonably firm in a lot of cases, given the outlook for developed markets, there is a strong chance that we see a marked deterioration in growth data across the region moving into and over 2009. In this environment oil and commodity prices should continue to trend lower and favourable base effects in the first part of 2009 will see regional inflation decline sharply. This will provide policymakers with plenty of leeway to move to a significantly more accommodative 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 region to be seen firstly in the export sectors of most countries, particular those regions where exports are still growing by 20-30%. While numerous policy makers are likely to pin their hopes on China to act as a buffer to weaker global growth in 2008, we suspect that Chinese imports will also soften notably as global growth slows. The region does approach the slowdown in global growth in a much better position than in previous cycles. Positive fiscal balances, strong external accounts, firm corporate balance sheets and much improved liquidity will cushion Asia from the impending global recession, but not isolate it. Asian fundamentals will remain attractive particular against global markets, and once financial market conditions and risk aversion stabilize potentially in the first half of 2009, Asian currencies will look attractive given current valuations.
18
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Subscriptions receivable Unrealised gains on forward foreign exchange contracts (note 2.6) Other assets Total assets Liabilities Taxes and expenses payable Redemptions payable Total liabilities Net assets at the end of the year US$000 3,190 281 28 25 21 48 3,593
Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Other income Bank interest Total income Expenses Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Expense cap refunded by Investment Manager (note 4.8) Annual tax (note 4.9) Total expenses Net gains from investments Realised losses on investments Currency exchange losses Realised losses on forward foreign exchange contracts Net realised losses Decrease in unrealised depreciation on investments US$000 274 5 12 291
88 36 6 27 1 11 (48) 3 124 167 (313) (11) (9) (166)
28 191 219 3,374
(263)
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 6,063 Net 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 forward foreign exchange contracts 49 Proceeds from shares issued 9,315 Payments for shares redeemed (11,561) Net equalisation paid (note 10) (4) Dividends paid (note 5) (59) Net assets at the end of the year
Increase in unrealised appreciation on forward foreign exchange contracts Net decrease in assets as a result of operations Share Transactions For the year from 1 October 2007 to 30 September 2008 Shares outstanding at the beginning of the year Shares issued during the year Shares redeemed during the year Shares outstanding at the end of the year Net asset value per share A-1 666,181 A-2 586,946
49 (380)
B-1 8,010
838,335
993,328
(1,160,597) (1,207,934)
343,919
372,340
8,010
3.76
5.51
3.73
3,374 The accompanying notes form an integral part of these financial statements.
19
Portfolio Statement
Security
Coupon (%)
Maturity
Nominal
Market Value US$000
Hong Kong - 20.48% Hong Kong Government Hong Kong Government Hong Kong Government Indonesia - 12.68% Indonesia Government Indonesia Government Indonesia Recapital South Korea - 23.09% Korea Treasury Bond Korea Treasury Bond Korea Treasury Bond Malaysia - 10.94% Malaysia Government Malaysia Government Malaysia Government Philippines - 3.41% Philippine Government Singapore - 11.65% Singapore Government Singapore Government Thailand - 12.30% Thailand Government Thailand Government
3.52 4.53 4.40
22/03/10 18/06/12 22/08/13
750,000 1,850,000 2,400,000
100 256 335 691 254 155 19 428 564 55 160 779 66 301 2 369 115
2.96 7.59 9.93 20.48 7.53 4.59 0.56 12.68 16.72 1.63 4.74 23.09 1.96 8.92 0.06 10.94 3.41
10.00 12.50 10.75
15/07/17 15/03/13 15/05/16
2,850,000,000 1,487,000,000 200,000,000
4.75 5.00 5.50
10/03/12 10/09/16 10/09/17
713,000,000 70,200,000 200,000,000
3.756 4.262 4.72
28/04/11 15/09/16 30/09/15
230,000 1,045,000 5,000
7.125
02/11/13
5,550,000
3.75 4.00
01/09/16 01/09/18
350,000 180,000
258 135 393 89 326 415 3,190
7.65 4.00 11.65 2.64 9.66 12.30 94.55
5.125 5.25
13/03/18 12/05/14
2,850,000 10,550,000
Transferable securities Forward foreign exchange contracts - 0.62%

Settlement Date Buy Amount Sell Amount
Buy
Sell
Unrealised Percentage of gains/(losses) total net assets % US$000
USD USD USD PHP IDR
KRW IDR PHP USD USD
12/11/08 06/10/08 14/10/08 14/10/08 06/10/08
83,000 114,000 312,000 14,490,216 1,043,670,000
91,457,700 1,043,670,000 14,490,216 302,383 109,744
7 4 4 5 1 21 3,211 163 3,374
0.21 0.12 0.12 0.15 0.02 0.62 95.17 4.83 100.00
Unrealised gains on forward foreign exchange contracts Total investments Other net assets Total
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.
20
Asian Smaller Companies

Performance For the year ended 30 September 2008, the value of the Asian Smaller Companies - A Accumulation shares decreased by 24.7% compared to a decrease of 45.0% in the benchmark, the MSCI AC Asia Pacific ex Japan Small Cap Index. Change in Benchmark The Fund changed its benchmark from the MSCI AC Asia Pacific ex Japan Index to the MSCI AC Asia Pacific ex Japan Small Cap Index on 1 October 2007. Managers review In the 12 months under review, Asian small-cap shares, like their larger 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 failures heightened risk aversion, triggering a widespread sell-off across asset classes. Policymakers resorted to a series of unprecedented measures to shore up confidence and stabilise credit markets, among them massive liquidity injection; government guarantees and the nationalisation of various financial institutions. These initiatives, however, failed to calm investors. By the end of the year, the MSCI AC Asia Pacific ex Japan Small Cap Index was sharply lower, with last years high-flyers China and India among the worst performers. Resource-based markets, such as Australia and Indonesia, also did poorly, dragged down by the pullback in commodity prices. Inflation, which had been a major threat earlier, with oil reaching US$140 per barrel, quickly faded. This was because rising prices hit growth but did not persist long enough to feed into wages. But since the second-half of the year, economic growth has slowed progressively across the region, as external demand and domestic consumption cooled. Export-reliant countries, notably China and Thailand reported a slower second-quarter GDP growth; and Singapore slipped into a recession and downgraded its growth forecasts. Policymakers in Hong Kong, Thailand and Taiwan unveiled stimulus packages, while Korea, Indonesia and Malaysia cut taxes to counter the downturn. The speed at which Asian economies were decelerating led to a shift in economic policies. Double-digit inflation in countries including Indonesia, India and Vietnam prompted central banks to hike interest rates. Lately there has been a movement towards monetary easing. Several central banks, including China, cut interest rates in September to boost growth (for the mainland, it was the first reduction in six years). Portfolio review The Fund outperformed the benchmark MSCI AC Asia Pacific ex Japan Small Cap Index over the volatile year under review, testimony to the quality of our holdings.
Portfolio activity was brisk, the more significant transactions including the introduction of Hong Kongs ASM International; Indonesian bank Permata; Swiss cement-producer Holcims Indonesian subsidiary, Holcim Indonesia, which should start to benefit from its restructuring efforts; Malaysian plantation company United Malacca; Malaysias YNH, a property developer with a substantial landbank in prime locations; Star Publications, which owns a leading English-language daily; Bumrungrad Hospital, a Thai healthcare group that is expanding into international markets; and Thai retailer Minor Corp, which is trading at a discount to its underlying assets. Against this, we sold Hong Kong footwear-maker Kingmaker for better opportunities elsewhere, and stock exchange operator Bursa Malaysia, after a strong run-up in its share price. We also accepted the takeover offers for Singapores Robinson & Co, the Ascott Group and Straits Trading, which provided us with good exits. We took partial profits in dry bulk shipper Pacific Basin, Korean Reinsurance, plantations company MP Evans, and Sri Lankas Distilleries Co after a strong run. Outlook We expect Asian equity markets to remain unsettled for some time, as the fallout from the credit contagion and deteriorating economic conditions continues to depress investor sentiment. The immediate moment 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 a worsening stand-off between the elected government and powerful protesters. In Malaysia, Abdullah Badawi is stepping down as prime minister much earlier than planned in a bid to appease internal critics following relative failure at the polls in January. While in the Philippines, president Gloria Arroyo is facing yet another impeachment complaint over alleged corruption, vote-rigging and other misconduct. The severity of credit deleveraging has already pushed most of the developed world to the edge of recession. Asia is unlikely to escape unscathed but given its stronger household, corporate and national balance sheets, the region may not suffer the same degree of damage. Few financials are directly affected. Nonetheless, even economic powerhouses like China and India have started to feel the effects. Chinas growth slowed sharply in the third quarter, while Indias GDP growth is expected to decelerate to around 7% for the fiscal year 2008/09, after rising by 9% or more over the past few years. On the positive side, easing inflationary pressures should bring some relief to companies and give policymakers more flexibility to stimulate growth. We expect corporate earnings to flatten or even decline but are optimistic that Asia, with its well-managed companies and strong balance sheets, will weather the downturn.
Aberdeen Global Asian Smaller Companies Fund
21
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Subscriptions receivable Total assets Liabilities Payable for investments purchased Taxes and expenses payable Redemptions payable Other liabilities* Total liabilities US$000 411,589 10,693 1,741 1 424,024
Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Other income Bank interest Total income Expenses Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Annual tax (note 4.9) Total expenses Net gains from investments Realised gains on investments Currency exchange losses Net realised gains Decrease in unrealised appreciation on investments Unrealised currency exchange gains Net decrease in assets as a result of operations US$000 17,572 14 701 18,287
1,497 689 343 1,024 3,553
6,275 207 444 377 74 161 175 7,713 10,574 34,434 (106) 44,902 (177,741) 24 (132,815)
Net assets at the end of the year 420,471 *Includes a provision in respect of Thailand capital gains tax of US $1,024,360.
Statement of Changes in Net Assets For the year from 1 October 2007 to 30 September 2008 Net assets at the beginning of the year Net gains from investments Realised gains on investments Currency exchange losses Decrease in unrealised appreciation on investments Unrealised currency exchange gains Proceeds from shares issued Payments for shares redeemed Net equalisation received (note 10) Net assets at the end of the year US$000 489,709 10,574 34,434 (106) (177,741) 24 386,960 (323,648) 265 420,471
Share Transactions For the year from 1 October 2007 to 30 September 2008 A-2 D-2(GBP) I-2 Shares outstanding at the beginning of the year 8,213,582 11,573,192 175,868 Shares issued during the year Shares redeemed during the year Z-2
5,652,734
169,613
20,707 24,857,106
(2,850,771) (9,904,962)
(1,988,580)
Shares outstanding at the end of 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

22 Aberdeen Global Asian Smaller Companies Fund
Portfolio Statement
Hong Kong - 19.62% Aeon Credit Service 7,430,000 5,830 Aeon Stores 4,400,000 7,075 Asia Satellite Telecommunications 5,166,500 7,177 ASM International 300,000 5,491 Caf de Coral 5,000,000 8,837 Convenience Retail Asia 15,950,000 4,308 Fongs Industries 8,148,000 1,708 Giordano International 37,309,000 12,837 Hong Kong & Shanghai Hotels 2,436,258 2,366 Hong Kong Aircraft Engineering * 280,000 3,189 Hong Kong Ferry 5,000,000 3,962 Hung Hing Printing 7,202,000 1,603 Pacific Basin Shipping 2,630,000 2,148 Public Financial Holdings 17,458,000 8,836 Texwinca 8,700,000 7,134 82,501
1.39 1.68 1.71 1.31 2.10 1.02 0.41 3.05 0.56 0.76 0.94 0.38 0.51 2.10 1.70 19.62
India - 9.28% Aventis Pharma 160,299 2,755 Castrol 1,500,000 11,053 Godrej Consumer Products 3,360,000 8,089 Gujarat Gas 734,659 4,030 Jammu & Kashmir Bank 200,000 1,921 Kansai Nerolac Paints 580,990 7,375 Mphasis BFL 950,000 3,802 39,025
0.66 2.63 1.92 0.96 0.46 1.75 0.90 9.28
Indonesia - 7.99% Bank NISP 141,748,674 10,514 Bank Permata 78,185,500 7,042 Bank UOB Buana 36,391,659 4,627 Dynaplast 12,093,000 705 Holcim Indonesia 70,000,000 6,342 M.P. Evans 900,250 4,381 33,611
2.50 1.67 1.10 0.17 1.51 1.04 7.99
Malaysia - 22.03% Aeon 10,200,000 12,439 Fraser & Neave Holdings 3,000,000 7,905 Guinness Anchor 6,000,300 9,103 LPI Capital 2,500,900 7,588 Manulife Insurance 3,511,800 2,875 Oriental Holdings 7,300,000 11,340 Panasonic Manufacturing 892,000 2,758 POS Malaysia & Services 10,000,000 5,241 Star Publications 10,000,000 9,437 United Malacca 4,550,000 7,960 United Plantations 3,524,900 11,565 YNH Property 11,000,000 4,456 92,667
2.96 1.88 2.16 1.80 0.68 2.70 0.66 1.25 2.24 1.89 2.75 1.06 22.03
23
Philippines - 4.94% Asian Terminals 71,148,000 4,646 Cebu Holdings 109,646,000 4,866 Ginebra San Miguel 5,080,000 2,009 Jollibee Foods 8,788,700 9,238 20,759
1.10 1.16 0.48 2.20 4.94
Singapore - 18.12% Bukit Sembawang Estates 4,000,500 16,792 Eu Yan Sang 19,554,000 5,130 FJ Benjamin Holdings 15,100,000 3,143 Hong Leong Finance 5,100,000 10,614 SBS Transit 7,650,000 10,222 Sembcorp Marine 1,880,000 3,939 Singapore Food Industries 7,597,000 4,026 Singapore Post 6,000,000 3,998 WBL 5,500,000 11,928 Wheelock Properties 7,342,000 6,394 76,186
3.99 1.22 0.75 2.52 2.43 0.94 0.96 0.95 2.84 1.52 18.12
South Korea - 2.51% Daegu Bank 390,000 3,382 Jeonbuk Bank 798,200 4,064 Korean Reinsurance 408,000 3,126 10,572
0.80 0.97 0.74 2.51
Sri Lanka - 3.20% Aitken Spence 538,600 2,138 Chevron Lubricants Lanka 3,559,600 3,729 Commercial Bank of Ceylon 2,870,500 2,782 Dialog Telekom 1,660,340 123 Distilleries Co 2,851,900 1,816 Keells (John) 3,543,797 2,829 13,417
0.51 0.90 0.66 0.03 0.43 0.67 3.20
Thailand - 10.20% Bumrungrad Hospital (Alien) 9,583,800 9,075 Central Pattana (Alien) 9,400,000 4,585 Hana Microelectronics (Alien) 22,450,300 8,834 Minor Corporation (Alien) 4,617,300 1,579 Regional Container Line (Alien) 12,000,200 4,669 Siam Makro (Alien) 3,800,000 9,213 Tisco Bank (Alien) 10,751,000 4,896 Total investments Other net assets Total
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. 24
2.16 1.09 2.10 0.39 1.11 2.19 1.16 10.20 97.89 2.11 100.00
42,851 411,589 8,882 420,471
Australasian Equity
Performance For the year ended 30 September 2008, the value of the Australasian Equity - A Accumulation shares decreased by 21.2% compared to a decrease of 26.6% in the benchmark, the Australia All Ordinaries Index. Managers review For the 12 months under review, Australian equities, as represented by the All Ordinaries benchmark, fell 26.6% as commodity prices declined significantly towards the end of the year. As well, investor sentiment was affected by contagion from the US credit crisis, which spread to Europe and Asia, and the downgrade of global growth forecasts. At the start of the year, economic growth was robust in some areas, despite growing evidence of a slowdown. In particular, the impact of tight monetary policy on interest-rate sensitive sectors showed in the decline of both public and private building approvals. Business confidence also remained at a seven-year low. Although higher prices for iron ore and coal drove exports to a record, the trade balance returned to a deficit as oil prices hit new highs. Stronger-than-expected private sector capital expenditure failed to lift 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 tightening stance for much of the year to curb inflation, which accelerated to a 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%, as downside risks to economic growth became evident, with several areas such as consumption, household wealth, investment plans and labour demand seeing a contraction. To allay investor concerns, the RBA injected more than A$14bn into the financial system to boost liquidity. The securities regulator also banned the short-selling of all stocks to protect the domestic market, following similar moves by its 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 performance as it continued to deliver high insurance margins and accretive earnings growth. The company remains well placed to make further opportunistic acquisitions given the current market dislocation. AGL Energy also added to performance, as investors sought defensive holdings, and Lion Nathan was aided by its strong cashflow and positive outlook for the next financial year. Not holding National Australia Bank benefited the Fund, as the bank was forced to make large provisions against its portfolio of collateralised debt obligations. In portfolio activity, we introduced Fairfax Media, Tatts Group, Computershare, Orica, Incitec Pivot and Singapore Telecommunications. Against this, we sold Suncorp-Metway, owing to deterioration in its medium term outlook. We also sold Fosters Group, APN News & Media, Tattersalls, Downer EDI and Telstra. We remain invested in companies with strong earnings and cashflow, including BHP Billiton, Rio Tinto, Lion Nathan, QBE Insurance and Westpac Bank. Outlook Looking ahead, we expect to see a marked slowdown in global economic 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 domestic data continue their downward trend, the RBA is likely to continue to ease monetary policy to support growth. It has already trimmed its growth forecast for the year from 2.25% to 2%, and expects inflation to remain high in the short term. Another issue of concern would be that many companies are financially engineered. With the approaching slowdown, those with lean balance sheets could face financial difficulty. In that vein, the overinvestment by commodity producers during the boom years, as well as the huge amount of merger & acquisition activity that drove the 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 largely defensive in nature, should be able to ride out the current extreme volatility. As well, the sell off in markets should increase buying opportunities.
Aberdeen Global Australasian Equity Fund
25
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Subscriptions receivable Receivable for investments sold Total assets Liabilities Taxes and expenses payable Redemptions payable Total liabilities Net assets at the end of the year 163 1,915 2,078 74,230 AU$000 72,909 2,243 636 115 405 76,308
Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Other income Bank interest Total income Expenses Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Distribution fee (note 4.3) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Annual tax (note 4.9) Total expenses Net gains from investments Realised gains on investments Currency exchange gains Net realised gains Decrease in unrealised appreciation on investments Net decrease in assets as a result of operations 1,308 48 26 27 84 13 38 43 1,587 2,149 1,945 16 4,110 (24,955) (20,845) AU$000 3,556 10 170 3,736
Statement of Changes in Net Assets For the year from 1 October 2007 to 30 September 2008 Net assets at the beginning of the year Net gains from investments Realised gains on investments Currency exchange gains Decrease in unrealised appreciation on investments Proceeds from shares issued Payments for shares redeemed Net assets at the end of the year AU$000 82,620 2,149 1,945 16 (24,955) 52,070 (39,615) 74,230
Share Transactions For the year from 1 October 2007 to 30 September 2008 Shares outstanding at the beginning of the year Shares issued during the year Shares redeemed during the year Shares outstanding at the end of the year Net asset value per share A-2 2,544,176 1,755,238 (1,347,559) B-2 121,708 22,000 (63,779)
2,951,855 24.56
79,929 21.57
26
Portfolio Statement
Market value Description Quantity AU$000
Consumer Discretionary - 9.13% Billabong International * 120,000 1,606 Fairfax Media Ltd * 539,800 1,433 Tabcorp Holdings * 238,200 1,915 Tatts Group Ltd * 765,000 1,828 6,782
2.16 1.93 2.58 2.46 9.13
Consumer Staples - 17.48% Goodman Fielder * 862,600 1,203 Lion Nathan * 291,500 2,667 Metcash * 487,000 1,948 Wesfarmers 117,500 3,319 Woolworths 140,000 3,843 12,980
1.62 3.59 2.62 4.47 5.18 17.48
Energy - 4.95% Woodside Petroleum 71,800 3,673 Financials - 32.85% Australia & New Zealand Bank 193,900 3,612 Australian Stock Exchange * 59,500 1,803 AXA Asia Pacific Holdings * 193,200 972 Bendigo Bank * 65,500 760 Commonwealth Bank of Australia 83,000 3,545 QBE Insurance Group * 242,700 6,399 Westfield Group 162,400 2,727 Westpac Bank 211,400 4,563 24,381
4.95
4.87 2.43 1.31 1.02 4.78 8.62 3.67 6.15 32.85
Health Care - 1.25% Ramsay Health Care * 90,500 925 Industrials - 5.31% Bradken * 98,000 837 Leighton Holdings * 47,800 1,814 Toll Holdings * 185,500 1,290 3,941
1.25
1.13 2.44 1.74 5.31
Information Technology - 1.35% Computershare * 109,250 1,003 Materials - 19.12% BHP Billiton 218,500 6,783 Incitec Pivot * 216,000 1,097 Orica * 57,300 1,208 Rio Tinto * 60,300 5,101 14,189
1.35
9.14 1.48 1.63 6.87 19.12
27
Market value Description Quantity AU$000
Telecommunication Services - 1.63% Singapore Telecommunications - CDI 274,000 738 Telecom Corp of New Zealand 206,610 478 1,216
0.99 0.64 1.63
Utilities - 5.15% AGL Energy * 202,000 2,758 SP Ausnet * 1,015,500 1,061 Total investments Other net assets Total
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.
3.72 1.43 5.15 98.22 1.78 100.00
3,819 72,909 1,321 74,230
28
China Opportunities
Performance For the year ended 30 September 2008, the value of the China Opportunities - A Accumulation shares decreased by 34.8% compared to a decrease of 43.1% in the benchmark, the MSCI Zhong Hua Index. Change in Benchmark The Fund changed its benchmark from the MSCI China Index to the MSCI Zhong Hua Index on 1 October 2007. Managers review Stock markets in China and Hong Kong suffered sharp falls during the year under review. This followed the mounting global financial crisis, which started in the US and later spread to Europe, but also affected Asia. Although there were intermittent relief rallies, the downward pattern in markets was more or less uninterrupted. In particular, investors pinned their hopes on government intervention, at the global level when the US Treasury intervened to rescue Bear Stearns and later AIG, and in local markets as Beijing moved to shore up sentiment. The scale of the crisis overwhelmed such efforts. Jitters were such that by the end of the year, even Hong Kong saw a run by depositors at the Bank of East Asia (for reasons that were unfounded). Altogether, the mainland stock market lost two-thirds of its value. By September, the authorities felt compelled to intervene. Among the raft of stabilisation measures including abolishing a tax on share purchases and allowing controlling shareholders to increase their stakes more easily. Furthermore, regulators approved margin lending and short selling on a trial basis. This contrasted sharply with moves by the US and Europe to ban short selling to shore up battered financial sector stocks. Until then, Beijings main priorities had appeared to cool the overheating economy and bring inflation to heel. Rising consumer prices were exacerbated by severe snowstorms on the mainland earlier in the year. Meanwhile, despite subsidies, fuel hikes added to the pressure. Hong Kong experienced similar conditions, prompting the administration to release a HKD$11bn-worth inflation relief package. Later, with food supplies resumed, falling global commodity prices and easing demand, inflation retrenched. With that prospect in sight, the policy focus had, by the summer, shifted to slowing economic growth. Signs of Chinas sputtering economy showed export volumes slowing (particularly to key markets in the US and Europe); industrial output growth slipping (only partly because of an Olympics shutdown); and the overheated property market cooling. This confluence of factors weighed on Chinas growth rate, which fell to 10.6% and 10.1% in the first two quarters respectively, from 11.9% for 2007 as a whole. Reflecting its concerns, the government implemented progrowth measures by cutting interest rates for the first time in more than six years, lowering the reserve requirement and relaxing bank lending quotas. The pace of currency appreciation also decelerated. Hong Kong did not fare better. Despite favourable growth in the
first quarter, the economy shrank unexpectedly in the second quarter (the first time in five years) a victim of slowing exports and weakening domestic demand. Portfolio review Despite significant market fluctuations, the Fund outperformed the benchmark MSCI Zhong Hua Index during the year under review, reflecting the quality and defensiveness of our holdings. In portfolio activity, we introduced Public Financial Holdings, the subsidiary of Malaysias Public Bank in Hong Kong, which is conservatively run and will be the groups vehicle for growth on the mainland. We also topped up various positions that have been battered by the current crisis, such as IDS Group. Against this, we exited Lianhua Supermarkets, on concerns over the quality of management and in view of better opportunities elsewhere; Beijing Capital International Airport, following a strong run in its share price; and Huaneng Power International, because of the deteriorating business environment and concerns that the company would not be allowed to raise tariffs sufficiently to cover rising fuel costs. We also pared stocks that held up well during recent high market volatility, such as CLP Holdings. Outlook The global economy is rapidly losing steam and the pullback in external demand is affecting Chinas export-driven economy. Thirdquarter GDP growth eased to 9% year-on-year, the slowest pace in five years. That said, after last years torrid growth pace, a slowdown may not be all bad news, especially if it forces China to make the transition to consumer-led growth (consumption is only about a third of GDP), which would bring about more sustainable long-term growth. While its stock market has collapsed, China has stayed relatively insulated from the wider fallout from the credit crunch. Given its huge foreign exchange reserves, it can afford to pumpprime the economy via public works projects and wider social safety nets. For the moment, Hong Kong faces a bigger risk of falling into recession but its economic integration with the mainland should help cushion the brunt of the downturn in the West. The territorys government also has scope to boost spending, having prudently accumulated significant reserves during the good years. Not only are its banks (which look healthy enough) less embroiled in the still unravelling crisis, the authorities have also acted to pre-empt any trouble by injecting money into credit markets, guaranteeing all bank deposits and establishing a new facility to provide capital to banks. Meanwhile, though the present panicked environment has created buying opportunities, we continue to prefer to gain exposure to China via Hong Kong, which, by and large, offers better standards of accounting and transparency. All told, we believe that our tried and tested strategy of investing in quality companies will see us through these turbulent times.
Aberdeen Global China Opportunities Fund
29
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Subscriptions receivable Receivable for investments sold Total assets Liabilities Taxes and expenses payable Redemptions payable Total liabilities Net assets at the end of the year US$000 408,367 1,915 3,293 365 1,642 415,582
Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Other income Bank interest Total income Expenses Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Annual tax (note 4.9) Total expenses Net gains from investments Realised gains on investments Currency exchange gains Net realised gains Decrease in unrealised appreciation on investments Unrealised currency exchange losses Net decrease in assets as a result of operations Share Transactions For the year from 1 October 2007 to 30 September 2008 US$000 838,690 7,192 85,226 8 (324,310) (21) 266,906 (461,526) (449) 411,716 Net asset value per share 14.92 8.29 15.22 8.13 Shares redeemed during the year (14,610,487) (6,995,149) (152,008) (921,812) Shares outstanding at the end of the year 19,802,900 2,687,404 305,008 8,801,168 A-2 Shares outstanding at the beginning of the year 27,066,993 Shares issued during the year D-2(GBP) I-2 Z-2 US$000 19,037 63 275 19,375
863 3,003 3,866 411,716
10,316 243 424 465 97 148 490 12,183 7,192 85,226 8 92,426 (324,310) (21) (231,905)
Statement of Changes in Net Assets For the year from 1 October 2007 to 30 September 2008 Net assets at the beginning of the year Net gains from investments Realised gains on investments Currency exchange gains Decrease in unrealised appreciation on investments Unrealised currency exchange losses Proceeds from shares issued Payments for shares redeemed Net equalisation paid (note 10) Net assets at the end of the year
9,161,006 409,916
7,346,394
521,547
47,100 9,722,980
30
The accompanying notes form an integral part of these financial statements. Aberdeen Global
China Opportunities Fund
Portfolio Statement
China - 15.41% China Merchants Bank 2,300,000 5,393 China Mobile 2,210,000 21,853 CNOOC 8,710,000 9,910 PetroChina 15,830,000 16,279 Yanlord Land * 7,300,000 4,660 Zhejiang Expressway 9,150,000 5,343 63,438
1.31 5.31 2.41 3.95 1.13 1.30 15.41
Hong Kong - 83.78% Aeon Credit Service 15,092,000 11,842 Aeon Stores 15,283,000 24,573 Asia Satellite Telecommunications 6,915,000 9,606 ASM Pacific Technology * 3,274,000 18,803 Caf de Coral * 5,740,000 10,145 City E-Solutions 13,000,000 1,421 CLP Holdings 1,028,000 8,248 Convenience Retail Asia 29,100,000 7,860 Dah Sing Banking 5,012,800 5,133 Dah Sing Financial 1,960,000 8,137 Dairy Farm International 3,169,500 15,863 Fongs Industries 16,176,000 3,392 Giordano International 26,950,000 9,273 Hang Lung Group * 5,685,000 17,989 Hong Kong & Shanghai Hotels 15,900,709 15,442 Hong Kong Aircraft Engineering * 1,052,000 11,982 Hong Kong Ferry 6,106,000 4,838 Hung Hing Printing 15,236,000 3,390 IDS Group 5,752,000 7,769 Jardine Strategic Holdings * 2,564,981 35,911 Kingmaker Footwear 23,674,000 2,177 MTR 5,301,750 15,429 Pacific Basin Shipping * 6,400,000 5,227 Public Financial Holdings 7,260,000 3,675 Standard Chartered * 500,000 11,782 Sun Hung Kai Properties 1,615,000 16,292 Swire Pacific B 19,764,500 34,092 Texwinca 15,060,000 12,349 Wing Hang Bank 1,616,500 12,289 Total investments Other net assets Total
2.88 5.97 2.33 4.57 2.46 0.35 2.00 1.91 1.25 1.98 3.85 0.82 2.25 4.37 3.75 2.91 1.18 0.82 1.89 8.72 0.53 3.75 1.27 0.89 2.86 3.96 8.28 3.00 2.98 83.78 99.19 0.81 100.00
344,929 408,367 3,349 411,716
Aberdeen Global China Opportunities Fund
31
Emerging Markets
Performance For the year ended 30 September 2008, the value of the Emerging Markets - A Accumulation shares decreased by 25.3% compared to a decrease 33.0% in the benchmark, the MSCI Emerging Markets Index. Change of management fee From 1 October 2008, the Investment Manager increased the management fees payable on the A, B and D Shares of the Fund from 1.50% per annum of Net asset Value (NAV) to 1.75% per annum of NAV. Managers review Financial markets worldwide faced an exceptionally challenging year under review. A little over a year after credit problems first came to light, stock markets everywhere have fallen sharply in the wake of unparalleled losses on Wall Street. This distress has shaken the financial system to the core, resulting in the collapse of some famous names and the unprecedented public rescue of others. As confidence has evaporated and banks stopped lending to one another, problems have multiplied, necessitating more emergency liquidity, interest rate cuts and, to address ordinary savers, deposit guarantees. However, whatever the outcome of these actions, the underlying trouble, excessive lending against housing, has unwound bringing the US (and now global) economy to the brink of recession. While emerging equities have avoided the worst of the credit crunch, shares did not escape the collapse in investor confidence. On the contrary, while profits were there to be taken at first, capital flight accelerated as foreigners faced cash calls elsewhere. Earlier in the year, investors had hoped that much of the developing world would decouple from the slowing US economy and survive the liquidity squeeze, but as the year progressed this looked like wishful thinking as export demand and domestic spending began to weaken. Consequently, the MSCI Emerging Markets Index was sharply lower at the end of the year, with last years high-flyers China and India among the worst performers. Resource-rich markets, namely Russia and Brazil, also took a beating after commodity and oil prices pulled back from their initial highs, as did countries with high external financing needs, such as Turkey, Hungary and South Africa. They were further hit by sharp falls in currencies, creating a downward spiral for investors. Economic data underscored how the western financial crisis has started to impact emerging market economies, both in terms of demand for exports and softer domestic consumer sentiment. Although many developing countries are much better placed than during previous episodes of financial stress, having built up foreign exchange reserves and prevented their banks overextending themselves, the extraordinary seizing-up of global credit markets meant that few countries were able to escape decelerating growth. Since the early part of the year, the pace of expansion in many
boom nations of Asia, Latin America and eastern Europe has slowed considerably, prompting downgrades to annual growth forecasts. However, policymakers were briefly distracted by rising food and fuel-led inflation, which led to widespread monetary tightening. Only later did this threat fade. By September, for example, China had lowered its key interest rate for the first time in six years to stimulate growth; more central banks are expected to follow, although Brazil and Indonesia have so far bucked the trend. The fractious political climate in several countries exacerbated investor pessimism. In South Africa, Kgalema Motlanthe became the countrys interim president after the ruling African National Congress party forced predecessor Thabo Mbeki to resign, while Russia paid a heavy price for its incursion into Georgia and worries over government interference in investments. Argentine president Cristina Fernandezs popularity took a beating after a four-month dispute with farmers over her plan to increase taxes on some agriculture exports; in Thailand, Thaksins brother-in-law, Somchai Wongsawat, took over as prime minister after Samak Sundaravej was forced out; and Malaysian opposition leader Anwar Ibrahim, who faced new charges of sexual misconduct, was sworn in to parliament after winning a by-election. He had earlier served a five-year ban from politics. On a brighter note, political tension eased in Turkey, after the constitutional court ruled against banning the ruling AK Party for seeking to introduce Islamic law in the country. China and Taiwan relations continued to warm, at least outwardly, after the Kuomintangs Ma Ying-jeou was sworn in as the new president. Portfolio review The Fund outperformed the benchmark MSCI Emerging Markets Index during the volatile year under review, highlighting the quality of our holdings and relative defensiveness of their earnings. In portfolio activity, the more significant transactions for the year included the introduction of UK-based emerging markets lender Standard Chartered, a beneficiary of longer-term domestic consumption growth; Infosys, an Indian IT services company with solid growth prospects; and Argentine steel-pipe maker Tenaris, on upbeat prospects amid an investment boom by oil producers and on compelling valuations. We also topped up several holdings, such as retailers Lojas Renner, Truworths, Massmart; Mexican bank Banorte, Brazilian mining company Vale; Russian oil giant Lukoil; Indian cement group Grasim Industries; and Indonesian conglomerate Astra International. Against this, we trimmed Hungarian hotel chain Danubius, Taiwans Fubon Financial, Taiwan Mobile and Thai oil and gas company PTTEP. We also sold Migros before private equity firm BC Partners completed its takeover of the Turkish supermarket chain; and exited Chinese toll-road operator Zhejiang Expressway, which appeared expensive relative to investment opportunities elsewhere. Other disposals included Turkish insurer Aksigorta, Indias GAIL and Koreas Hyundai Motors.
32
Aberdeen Global Emerging Markets Fund
Outlook With no end to the credit turmoil in sight, emerging markets are likely to remain volatile. Investors had hoped that the revised US bailout package approved by the Congress at the time of writing, and the actions by major central banks to pump in emergency funding and cut interest rates would bring stability. But these efforts have so far failed to convince markets that the worst is over, with attention now turning to the possibility of a lengthy recession. For emerging economies, such an outcome has already been signalled by plunging commodity prices and further currency depreciation, as global demand for raw materials falls. Resourceheavy economies, such as Russia and Latin America, which make up a significant part of the emerging markets, are especially vulnerable to loss of export earnings. The Brazilian real and Mexican peso have weakened considerably against the US dollar in recent weeks. Increased geopolitical risks and the impact of tighter credit may pose further headwinds, while narrowing corporate margins are expected to put earnings under pressure in the months ahead. The good news is that the recent spate of sell-off means that emerging markets no longer look overvalued, or trade at a premium to developed markets. With many market benchmarks back to levels last seen several years ago, we are seeing opportunities again. We have few immediate concerns about our holdings, which have performed well from an operational point of view, although cashflow will have to be watched closely. While we are cautiously optimistic about the coming year, we do not expect much in terms of earnings growth.
33
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Subscriptions receivable Receivable for investments sold Other assets Total assets Liabilities Payable for investments purchased Taxes and expenses payable Redemptions payable Other liabilities* Total liabilities Net assets at the end of the year US$000 836,685 15,388 2,727 2,920 2,852 28 860,600
Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Other income Bank interest Total income Expenses Gross Management fee Less: Management fee cross holdings Net Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Distribution fee (note 4.3) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Annual tax (note 4.9) Total expenses Net gains from investments Realised gains on investments Currency exchange gains Realised gains on forward foreign exchange contracts Net realised gains US$000 906,993 11,181 63,394 202 13 (364,191) 21 Decrease in unrealised appreciation on investments Unrealised currency exchange gains Increase in unrealised appreciation on forward foreign exchange contracts Net decrease in assets as a result of operations US$000 23,825 53 624 24,502
10,801 (314) 10,487 313 991 14 735 151 303 327 13,321 11,181 63,394 202 13 74,790 (364,191) 21
418 1,281 7,697 1,230 10,626 849,974
Statement of Changes in Net Assets For the year from 1 October 2007 to 30 September 2008 Net assets at the beginning of the year Net gains from investments Realised gains on investments Currency exchange gains Realised gains on forward foreign exchange contracts Decrease in unrealised appreciation of investments Unrealised currency exchange gains Increase in unrealised appreciation on forward foreign exchange contracts Proceeds from shares issued Payments for shares redeemed Net equalisation received (note 10) Net assets at the end of the year
3 (289,377)
3 1,036,719 (807,829) 3,468 849,974
34
Share Transactions For the year from 1 October 2007 to 30 September 2008
A-2 Shares outstanding at the beginning of the year Shares issued during the year Shares redeemed during the year Shares outstanding at the end of the year Net asset value per share 9,052,645 5,739,225 (9,050,323) 5,741,547 36.06 B-2 37,315 880 (13,990) 24,205 33.66 D-2(GBP) 5,928,992 1,246,770 (2,083,691) 5,092,071 20.12 I-2 2,494,820 4,750,193 (2,659,371) 4,585,642 36.61 Z-2 5,465,467 44,391,714 (15,013,316) 34,843,865 8.32
35
Portfolio Statement
Argentina - 1.87% Tenaris ADR 460,000 15,879 Brazil - 13.33% Banco Bradesco (Pref) ADR 1,619,500 21,928 Lojas Renner 1,178,200 12,436 Petroleo Brasileiro (Pref) ADR 779,920 25,831 Souza Cruz 625,000 13,382 Ultrapar (Pref) 576,000 14,242 Vale ADR 1,667,000 25,538 113,357
1.87
2.58 1.46 3.04 1.57 1.68 3.00 13.33
Chile - 2.25% Banco Santander - Chile ADR 484,000 19,166 China - 5.62% China Mobile * 2,410,000 23,831 PetroChina 23,304,575 23,966 47,797
2.25
2.80 2.82 5.62
Czech Republic - 1.51% Erste Bank 253,000 12,853 Hong Kong - 6.24% Hang Lung Group 6,117,000 19,356 Standard Chartered 480,000 11,439 Swire Pacific A * 963,500 8,394 Swire Pacific B 7,964,000 13,737 52,926
1.51
2.28 1.35 0.99 1.62 6.24
Hungary - 3.32% Danubius Hotel and Spa 45,785 1,611 Gedeon Richter GDR * 148,000 26,640 28,251
0.19 3.13 3.32
India - 13.47% Aberdeen Global - India Opportunities Fund Z2 330,685 19,392 GlaxoSmithKline Pharmaceuticals 511,000 12,984 Grasim Industries GDR 56,900 2,020 Grasim Industries 300,853 10,951 HDFC 465,000 21,088 Hero Honda 849,459 15,955 ICICI Bank 795,657 9,244 Infosys Technologies 340,000 10,270 Satyam Computer Services 1,981,298 12,494 114,398
2.28 1.53 0.24 1.29 2.48 1.88 1.09 1.21 1.47 13.47
Indonesia - 1.87% P.T Astra International 8,766,000 15,860
1.87
36
Israel - 3.38% Check Point Software 556,000 11,982 Teva Pharmaceuticals ADR 386,900 16,776 28,758
1.41 1.97 3.38
Malaysia - 3.42% Bumiputra Commerce 4,655,400 10,375 Public Bank 6,458,100 18,705 29,080
1.22 2.20 3.42
Mexico - 9.69% Consorcio ARA 12,887,000 7,017 FEMSA ADR 691,609 24,255 Grupo Aeroportuario del Sureste ADS 273,000 13,292 Grupo Financiero Banorte 6,444,000 19,622 Organizacion Soriana 6,483,082 18,147 82,333
0.83 2.85 1.56 2.31 2.14 9.69
Philippines - 2.76% Ayala Land 61,529,300 12,086 Bank of the Philippine Islands 11,705,112 11,371 23,457
1.42 1.34 2.76
Russia - 2.39% Lukoil ADR 354,862 20,351 South Africa - 5.42% Massmart 3,079,002 27,453 Truworths International 5,402,855 18,593 46,046
2.39
3.23 2.19 5.42
South Korea - 7.00% Daegu Bank 570,000 4,943 Pusan Bank 660,000 5,764 Samsung Electronics (Pref) 121,000 37,189 Shinsegae 25,000 11,600 59,496
0.58 0.68 4.38 1.36 7.00
Sri Lanka - 0.66% Aitken Spence 327,400 1,299 Commercial Bank of Ceylon 832,000 806 DFCC Bank 528,750 488 Dialog Telekom 9,439,210 697 Distilleries Co 1,320,000 841 Keells (John) 1,891,755 1,510 5,641
0.15 0.09 0.06 0.08 0.10 0.18 0.66
37
Taiwan - 5.17% Fubon Financial 11,467,000 8,026 Taiwan Mobile 6,228,235 9,849 TSMC 16,015,984 26,073 43,948
0.94 1.16 3.07 5.17
Thailand - 4.21% PTT Exploration & Production (Alien) 4,500,000 16,845 Siam Cement (Alien) 4,728,800 18,956 35,801
1.98 2.23 4.21
Turkey - 4.86% Akbank * 5,502,000 28,234 BIM Birlesik Magazalar 416,240 13,053 Medya + 86,400 - Total investments Other net assets Total
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. + Unlisted transferable security. Managed by subsidiaries of Aberdeen Asset Management PLC. * A portion of the stock is on loan at the year end.
3.32 1.54 4.86 98.44 1.56 100.00
41,287 836,685 13,289 849,974
38
Emerging Markets Bond

Performance For the year ended 30 September 2008, the value of the Emerging Markets Bond - A Accumulation shares decreased by 6.7% compared to a decrease of 2.7% in the benchmark, the JP Morgan EMBIGD USD Index. Managers and portfolio review Emerging market debt had a negative performance during the year of review that was characterized by rising global risk aversion. Ongoing concerns about the impact of the sub-prime crisis, the health of US financial institutions, and global growth prospects weighed on all risk products throughout the year, prompting a series of interest rate cuts and policy responses that did little to reverse the negative sentiment in global markets. While the fundamental outlook for emerging markets remained sound, reflected by a still healthy growth outlook and a strong external position in many of the key sovereign credits, the asset class was impacted by the deteriorating global risk appetite. Overall, local currency debt outperformed with a positive return of 4.25% while hard currency debt underperformed, declining by over 8%. Lower-rated holdings in the Fund suffered the most, highlighting market concerns about their respective credit fundamentals. The news in Brazil was generally positive, as the country joined Mexico and Chile in the investment grade category (Peru also joined the list of investment grade sovereigns shortly after). The economy continued to boom on the back of strong domestic demand and robust commodity prices, which pushed inflation above the official 4.5% target, prompting the Central Bank to embark on a series of rate hikes. Unlike some other central bankers in developing countries, the language from Brazil monetary authorities was hawkish and their response was strong, which proved to be supportive for the Brazilian real but kept local rates at fairly high levels, with the 10-year benchmark breaching 15% before ending the year at 13.5%. Argentina was one of the main detractors from performance during the year, reflecting general market aversion toward high-beta credits, and concerns over the policy framework of the new Kirchner administration. When Cristina Kirchner took office in December 2007, following the Presidency of her husband Nestor Kirchner, there were hopes that the new government would address some of the bottlenecks in the economy, such as the under reporting of inflation, frozen tariff prices, the Paris Club debt restructuring and the re-opening of the 2005 commercial debt exchange. Kirchner held to her vow to cut spending, and booming agriculture prices were also supportive for an improving fiscal position, but there was little movement on the other issues. One policy that backfired was the decision to raise taxes on commodity exports, which prompted a three-month strike by the farmers and created significant political noise. The dispute concluded when the Senate overturned the
tax increases, which prompted a relief rally on Argentine debt. Nonetheless, Argentine spreads remain extremely high and access to market financing is limited, although they can turn to local pension funds and Venezuela to fulfil most of its financing gap in 2009. In September, Argentina surprised the market by announcing plans to repay the Paris Club creditors and to re-open the 2005 debt exchange, which should help alleviate high borrowing costs. Russia and Turkey remained our two top positions in the Eastern Europe, Middle East and Africa region. Russian debt performed well throughout the year with the exception of August, as all Russian assets weakened due to the fallout from the Georgian invasion. After months of uncertainty, Turkeys AKP government received some good news at the end of July, as the Constitutional Court voted 6-5 in favour of the lawsuit against the ruling party for alleged antisecular activities, but fell short of the 7-4 majority required to ban the party. The verdict sparked a big rally on Turkish assets, with the lira moving to a six-month high of 1.16 against USD while Turkish lira rates fell sharply across the board. The yield on the benchmark March 2012 government bond declined around 2% to 19%, while spreads on external debt also narrowed. Our Asian positions have had a mixed performance, with the Philippines outperforming Indonesia while Pakistan prices declined sharply due to ongoing political turmoil and deteriorating finances. Indonesia has been an overweight position in the hard currency portfolio during the year, and had a disappointing performance in the first half of 2008 due to concerns about new issuance, and the fiscal and inflation outlooks. More responsive action by policy makers, with the removal of some fuel subsidies and interest rate hikes, prompted a rebound in external and local currency debt. During the year, we added to our Indonesia position, maintained the Philippines and reduced most of our Pakistan holdings. Outlook Looking ahead, uncertainty about the health of US financial institutions and growth prospects in the G3 economies will likely weigh on emerging market debt over the short-term. While softer global growth has contributed to the recent decline in commodity prices, the fundamental outlook for emerging market remains sound. Growth in the developing economies is expected to be around 6% over the next few years, the debt profiles of the major sovereign issuers are generally healthy, and inflation appears to be peaking. Emerging market debt valuations also appear attractive, which should bode well for the asset class during a period of stability in global risk appetite.
Aberdeen Global Emerging Markets Bond Fund
39
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Subscriptions receivable Receivable for investments sold Unrealised gains on forward foreign exchange contracts (note 2.6) Total assets Liabilities Taxes and expenses payable Redemptions payable Other liabilities Total liabilities Net assets at the end of the year US$000 341,808 5,824 8,282 1,125 287 3,081 360,407
Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Other income Bank interest Total income Expenses Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Distribution fee (note 4.3) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Annual tax (note 4.9) Total expenses Net gains from investments Realised losses on investments Currency exchange losses Realised losses on forward currency exchange contracts US$000 38,379 103 39 38,521
7,147 217 299 53 361 75 121 138 8,411 30,110 (7,289) (6,545) (5,567) 10,709 (43,681) 20
709 3,092 203 4,004 356,403
Statement of Changes in Net Assets For the year from 1 October 2007 to 30 September 2008 Net assets at the beginning of the year Net gains from investments Realised losses on investments Currency exchange losses Realised losses on forward currency exchange contracts Decrease in unrealised appreciation on investments Unrealised currency exchange gains Increase in unrealised appreciation on forward currency exchange contracts Proceeds from shares issued Payments for shares redeemed Net equalisation paid (note 10) Dividends paid (note 5) Net assets at the end of the year US$000 537,624 30,110 (7,289) (6,545) (5,567) (43,681) 20
Net realised gains Decrease in unrealised appreciation on investments Unrealised currency exchange gains Increase in unrealised appreciation on forward currency exchange contracts Net decrease in assets as a result of operations
5,860 (27,092)
5,860 266,778 (417,928) (349) (2,630) 356,403
40
Shares outstanding at the beginning of the year Shares issued during the year Shares redeemed during the year A-1 A-2 1,879,008 19,320,570 458,029 8,030,234 (1,313,307) (15,421,177) B-1 234,262 1,191 (88,139) B-2 103,192 18,229 (49,297) I-1 573,149 681,967 (5,714) I-2 1,239,828 (431,328) Z-2 31,990 1,243,402 (1)
Shares outstanding at the end of the year Net asset value per share
1,023,730 11,929,627 15.16 23.58
147,314 15.19
72,124 1,249,402 22.10 15.34
808,500 1,275,391 9.46 22.73
41
Portfolio Statement
Security
Coupon (%)
Maturity
Nominal
Market Value US$000
Argentina - 5.95% Argentina Argentina Argentina Argentina Argentina Argentina Argentina Argentina Argentina Argentina Argentina Argentina Argentina Argentina Argentina Step Up Argentina VAR
1.33 3.00 7.00 7.00 8.375 8.50 9.00 9.25 9.75 10.00 11.00 11.00 11.75 11.75 8.00 0.00
31/12/38 30/04/13 17/04/17 18/03/04 20/12/03 01/07/04 24/05/05 21/10/02 26/11/03 07/12/04 04/12/05 09/10/06 07/04/09 15/06/15 26/02/08 15/12/35
780,000 13,380,000 3,430,000 750,000 3,000,000 570,000 800,000 2,500,000 1,850,000 1,000,000 5,400,000 55,000 8,530,000 8,600,000 2,100,000 23,320,000
199 5,752 2,069 162 870 239 338 1,021 769 405 1,566 16 2,474 2,494 899 1,959 21,232
0.06 1.61 0.58 0.05 0.24 0.07 0.09 0.29 0.22 0.11 0.44 0.69 0.70 0.25 0.55 5.95
Bosnia & Herzegovina - 0.63% Bosnia & Herzegovina Brazil - 10.25% Brazil Brazil Dasa Finance Corp Independencia Inte Independencia Inte ISA Capital Do Brazil Nota do Tesouro Nacional Nota do Tesouro Nacional Odebrecht Finance Ltd
3.50
11/12/17
1,981,461
2,229
0.63
6.00 7.125 8.75 9.875 9.875 8.80 10.00 10.00 7.50
15/05/45 20/01/37 29/05/18 31/01/17 15/05/15 30/01/17 01/01/14 01/01/17 18/10/17
160,000 7,210,000 3,516,000 2,430,000 2,490,000 3,760,000 19,000,000 19,840,000 2,460,000
120 7,390 3,031 1,993 1,992 3,628 8,137 8,034 2,241 36,566
0.03 2.07 0.85 0.56 0.56 1.02 2.28 2.25 0.63 10.25
China - 1.29% Parkson Retail Group Parkson Retail Group Colombia - 0.40% EEB International Dominican Republic - 3.97% Cerveceria Nacional Dominica Dominican Republic Dominican Republic
7.125 7.875
30/05/12 14/11/11
1,790,000 3,126,000
1,665 2,931 4,596 1,415
0.47 0.82 1.29 0.40
8.75
31/10/14
1,420,000
16.00 8.625 9.04
27/03/12 20/04/27 23/01/18
4,980,000 1,790,000 9,017,059
3,912 1,575 8,656 14,143
1.10 0.44 2.43 3.97
Ecuador - 3.59% Ecuador Ecuador Ecuador
9.375 10.00 12.00
15/12/15 15/08/30 15/11/12
2,020,000 4,150,000 8,678,160
1,707 3,030 8,071 12,808
0.48 0.85 2.26 3.59

42
Security
Coupon (%)
Maturity
Nominal
Market Value US$000
Egypt - 1.98% Egypt Government Egypt Government + Egypt Government + Egypt Government
0.00 9.10 9.10 9.35
14/04/09 12/07/10 20/09/12 16/08/10
15,000,000 7,100,000 14,450,000 3,825,000
2,553 1,287 2,510 710 7,060
0.72 0.36 0.70 0.20 1.98
El Salvador - 2.61% El Salvador El Salvador
7.65 8.25
15/06/35 10/04/32
5,280,000 4,110,000
5,201 4,110 9,311
1.46 1.15 2.61
Gabon - 2.02% Gabonese Republic Ghana - 1.31% Ghana Georgia - 1.48% Georgia Indonesia - 8.27% Indonesia Indonesia Indonesia Indonesia Government Indonesia Government Indonesia Recapital Bond Majapahit Majapahit
8.20
12/12/17
7,430,000
7,207
2.02
8.50
04/10/17
5,090,000
4,670
1.31
7.50
15/04/13
5,840,000
5,269
1.48
6.875 8.50 13.40 11.00 9.00 13.45 7.25 7.75
17/01/18 12/10/35 15/02/11 15/12/12 15/09/13 15/08/11 28/06/17 17/10/16
4,590,000 4,090,000 11,540,000,000 40,200,000,000 47,800,000,000 36,460,000,000 7,060,000 1,590,000
4,177 4,099 1,236 4,008 4,350 3,935 6,283 1,422 29,510
1.17 1.15 0.35 1.12 1.22 1.10 1.76 0.40 8.27
Iraq - 1.04% Iraq + Israel - 0.56% Israel Electric Corp Kazakhstan - 0.43% HSBK Europe Mexico - 8.03% Mex Bonos Desarr Fixed Rate Mex Bonos Desarr Mexico Mexico Mexico Pemex Project Funding Master Trust
5.80
15/01/28
5,540,000
3,712
1.04
7.25
15/01/19
2,020,000
1,988
0.56
9.25
16/10/13
1,990,000
1,524
0.43
10.00 7.25 10.00 6.05 8.30 6.62
20/11/36 15/12/16 05/12/24 11/01/40 15/08/31 15/06/38
89,420,000 65,540,000 14,080,000 4,740,000 2,590,000 5,000,000
9,621 5,528 1,448 4,260 3,069 4,662 28,588
2.70 1.55 0.41 1.20 0.86 1.31 8.03
43
Security
Coupon (%)
Maturity
Nominal
Market Value US$000
Nigeria - 3.55% GTB Finance KFW
8.50 8.50
29/01/12 18/01/11
4,160,000 1,122,500,000
3,806 8,845 12,651
1.07 2.48 3.55
Pakistan - 0.14% Pakistan
6.875
01/06/17
1,080,000
513
0.14
Panama - 0.37% Panama Peru - 7.10% Peru Peru Peru
8.875
30/09/27
1,100,000
1,310
0.37
6.55 7.84 8.20
14/03/37 12/08/20 12/08/26
15,920,000 8,560,000 24,330,000
14,726 2,739 7,847 25,312
4.13 0.77 2.20 7.10
Philippines - 3.50% Philippines Philippines Philippines Philippines
7.75 8.25 9.50 9.375
14/01/31 15/01/14 02/02/30 18/01/17
840,000 452,000 5,270,000 3,830,000
892 488 6,584 4,495 12,459
0.25 0.14 1.85 1.26 3.50
Russia - 7.18% Alfa Bank Evraz Group Evraz Group Gaz Capital GPB (Gazprombk) Eurobond Red Arrow Intl Leasing RS Finance (RSB) RSHB Capital (Russ AG BK) Transcapitalinvest
8.635 8.25 8.875 7.288 7.25 8.375 7.50 7.75 8.70
22/02/17 10/11/15 24/04/13 16/08/37 22/02/10 30/06/12 07/10/10 29/05/18 07/08/18
1,650,000 4,070,000 2,350,000 3,060,000 60,000,000 92,647,485 1,410,000 10,410,000 3,140,000
1,205 2,971 1,875 2,218 2,250 3,415 985 7,892 2,774 25,585
0.34 0.83 0.53 0.62 0.63 0.96 0.28 2.21 0.78 7.18
Serbia - 1.09% Serbia Turkey - 2.02% Turkey Turkey
3.75
01/11/24
4,430,000
3,871
1.09
10.00 16.00
15/02/12 07/03/12
3,910,000 5,260,000
3,332 3,875 7,207
0.93 1.09 2.02
Ukraine - 4.93% Alfa Bank Ukraine Ukraine Ukraine (UBS) CLN Ukraine Issuance (Alfa Bank) London Ukrsots Bank CLN (Credit Suisse)
9.75 6.75 9.125 9.25 12.00
22/12/09 14/11/17 21/06/10 26/07/10 26/04/10
2,540,000 6,060,000 3,200,000 2,550,000 27,000,000
2,222 4,696 3,140 2,125 5,385 17,568
0.62 1.32 0.88 0.60 1.51 4.93

44
Security
Coupon (%)
Maturity
Nominal
Market Value US$000
Uruguay - 6.46% Republic Orient Uruguay Uruguay Uruguay Uruguay Uruguay
4.25 5.00 7.625 7.875 8.00
05/04/27 14/09/18 21/03/36 15/01/33 18/11/22
25,210,000 105,710,000 3,790,000 3,180,000 9,360,000
1,203 5,686 3,619 3,069 9,407 22,984
0.34 1.60 1.02 0.86 2.64 6.46
Venezuela - 5.76% Petroleos de Venezuela + Venezuela Venezuela Venezuela
5.25 5.75 9.00 10.75
12/04/17 26/02/16 07/05/23 19/09/13
14,750,000 11,900,000 730,000 4,004,000
8,481 7,794 511 3,734 20,520 341,808
2.38 2.19 0.14 1.05 5.76 95.91
Transferable securities Forward foreign exchange contracts - 0.86%

Settlement Date Buy Amount Sell Amount
Buy
Sell
Unrealised Percentage of gains/(losses) total net assets % US$000
USD USD USD USD USD USD USD USD TRY USD TRY ARS USD USD MXN USD BRL USD ZAR RUB MXN THB
MXN ARS THB ZAR PEN EGP IDR TRY USD EUR USD USD TRY RUB USD MXN USD BRL USD USD USD USD
16/10/08 10/11/08 16/10/08 16/10/08 10/11/08 10/11/08 10/11/08 16/10/08 16/10/08 16/10/08 16/10/08 10/11/08 16/10/08 10/11/08 16/10/08 16/10/08 10/11/08 10/11/08 16/10/08 10/11/08 16/10/08 16/10/08
1,010,598 1,871,495 2,919,722 3,377,880 3,608,927 3,969,215 4,046,808 4,076,277 5,204,000 5,625,704 5,812,000 5,840,000 6,558,672 7,006,780 10,569,000 18,399,021 20,141,000 22,125,917 27,121,000 32,000,000 78,121,000 99,145,000
10,300,000 5,840,000 99,145,000 27,121,000 10,834,000 21,377,000 39,112,395,000 5,204,000 4,157,641 3,593,000 4,610,869 1,874,799 8,315,000 175,166,000 995,628 190,109,000 12,263,092 36,548,000 3,340,702 1,243,201 7,302,973 2,944,609
74 30 125 (11) 94 (74) 4 (86) 476 (63) (34) 52 153 (35) 1,122 (2,071) 3,631 (87) 9 (203) (25) 3,081 344,889 11,514 356,403
0.02 0.01 0.04 0.03 (0.02) (0.02) 0.13 (0.02) (0.01) 0.01 0.04 (0.01) 0.31 (0.58) 1.02 (0.02) (0.06) (0.01) 0.86 96.77 3.23 100.00
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. + Unlisted transferable security. Aberdeen Global Emerging Markets Bond Fund
45
Emerging Markets Smaller Companies

Performance For the year ended 30 September 2008, the value of the Emerging Markets Smaller Companies - A Accumulation shares decreased by 32.0% compared to a decrease of 44.3% in the benchmark, the MSCI Emerging Markets Small Cap Index. Change in Benchmark The Fund changed its benchmark from the MSCI Emerging Markets Index to the MSCI Emerging Markets Small Cap Index on 1 October 2007. Managers review The year under review was exceptionally volatile for global financial markets. Emerging small-cap stocks were not spared the wild gyrations in the broader markets as the credit crunch spread and intensified. A little over a year after credit problems first came to light, stock markets everywhere have fallen sharply in the wake of unparalleled losses on Wall Street. This distress has shaken the financial system to the core, resulting in the collapse of some famous names and the unprecedented public rescue of others. As confidence has evaporated and banks stopped lending to one another, problems have multiplied, necessitating more emergency liquidity, interest rate cuts and, to address ordinary savers, deposit guarantees. However, whatever the outcome of these actions, the underlying trouble, excessive lending against housing, has unwound bringing the US (and now global) economy to the brink of recession. Although emerging smaller companies had almost negligible exposure to the highly leveraged securities mainly linked to US mortgages, they did not escape the collapse in investor confidence. On the contrary, while profits were there to be taken at first, capital flight accelerated as foreigners faced cash calls elsewhere. Earlier in the year, investors had hoped that much of the developing world would decouple from the slowing US economy and survive the liquidity squeeze, but as the year progressed, this looked like wishful thinking as export demand and domestic spending began to weaken. The flight from risk has dealt a particularly savage blow to emerging markets smaller companies. The MSCI Emerging Markets Small Cap Index tumbled more than 44% over the 12-months, compared to the MSCI Emerging Markets Indexs decline of around 33%. Resource-rich markets, namely Russia and Brazil, took a beating after commodity and oil prices pulled back from their initial highs, as did countries with high external financing needs, such as Turkey, Hungary and South Africa. They were further hit by sharp falls in currencies, creating a downward spiral for investors. Economic data underscored how the western financial crisis has started to impact emerging market economies, both in terms of demand for exports and softer domestic consumer sentiment. Although many developing countries are much better placed than during previous episodes of financial stress, having built up foreign exchange reserves and prevented their banks overextending themselves, the extraordinary seizing-up of global credit markets
meant that few countries were able to escape decelerating growth. Since the early part of the year, the pace of expansion in many boom nations of Asia, Latin America and eastern Europe has slowed considerably, prompting downgrades to annual growth forecasts. However, policymakers were briefly distracted by rising food and fuel-led inflation, which led to widespread monetary tightening. Only later did this threat fade. By September, for example, China had lowered its key interest rate for the first time in six years to stimulate growth; more central banks are expected to follow, although Brazil and Indonesia have so far bucked the trend. The fractious political climate in several countries exacerbated investor pessimism. In South Africa, Kgalema Motlanthe became the countrys interim president after the ruling African National Congress party forced predecessor Thabo Mbeki to resign, while Russia paid a heavy price for its incursion into Georgia and worries over government interference in investments. Argentine president Cristina Fernandezs popularity took a beating after months of dispute with farmers over her plan to increase taxes on some agriculture exports; in Thailand, Thaksins brother-in-law, Somchai Wongsawat, took over as prime minister after Samak Sundaravej was forced out; and Malaysian opposition leader Anwar Ibrahim, who faced new charges of sexual misconduct, was sworn in to parliament after winning a by-election. He had earlier served a fiveyear ban from politics. On a brighter note, political tension eased in Turkey, after the constitution court ruled against banning the ruling AK Party for seeking to introduce Islamic law in the country. China and Taiwan relations continued to warm, at least outwardly, after the Kuomintangs Ma Ying-jeou was sworn in as the new president. Portfolio review The Fund outperformed the benchmark MSCI Emerging Markets Small Cap Index during the volatile year under review, highlighting the quality of our holdings and relative defensiveness of their earnings. Portfolio activity was brisk during the year, but the more significant transactions included initiating new positions in several companies, such as Brazilian property developer CR2, on compelling valuations; Bumrungrad Hospital, a Thai healthcare group that is expanding into international markets; cement maker Holcim Indonesia, which offers exposure to the domestic infrastructure spending; and Indias Kansai Nerolac. We also topped up several holdings, such as healthcare equipment and services provider Cremer, Multiplan, Egyptian bank NGSB, Hungarian property developer Ablon Group, and South African retailers Massmart and Truworths. Against this, we sold Hungarian hotel chain Danubius; Indian paint manufacturer Asian Paints on valuation grounds; Indian pharmaceutical company Nicholas Piramal; Malaysian stock exchange operator Bursa; and Thai retailer Big C Supercenter. Other stocks that were trimmed over the year included Hong Kongs Public Financial Holdings, Brazilian car rental firm Localiza, and Malaysian food and beverage company Fraser & Neave Holdings.
46
Aberdeen Global Emerging Markets Smaller Companies Fund
Outlook Emerging small-cap shares are expected to remain unsettled in the coming months, with no end to the credit turmoil in sight. Investors had hoped that the revised US bailout package approved by the Congress at the time of writing, and the actions by major central banks to pump in emergency funding and cut interest rates would bring stability. But these efforts have so far failed to convince markets that the worst is over, with attention now turning to the possibility of a lengthy recession. For emerging economies, such an outcome has already been signalled by plunging commodity prices and further currency depreciation, as global demand for raw materials falls. Resourceheavy economies, such as Russia and Latin America, which make up a significant part of the emerging markets, are especially vulnerable to loss of export earnings. The Brazilian real and Mexican peso have weakened considerably against the US dollar in recent weeks. Increased geopolitical risks and the impact of tighter credit may pose further headwinds, while narrowing corporate margins are expected to put earnings under pressure in the months ahead. The good news is that the recent spate of sell-off means that emerging markets no longer look overvalued, or trade at a premium to developed markets. With many market benchmarks back to levels last seen several years ago, we are seeing opportunities again. We have few immediate concerns about our holdings, which have performed well from an operational point of view, although cashflow will have to be watched closely. We are cautiously optimistic about the coming year but do not expect much in terms of earnings growth.
47
Statement of Net Assets As at 30 September 2008

Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Subscriptions receivable Other assets* Total assets Liabilities Payable for investments purchased Taxes and expenses payable Redemptions payable Total liabilities Net assets at the end of the year *Includes a provision in respect of Thailand capital gains tax of US$ 27,950. US$000 93,200 2,513 123 74 28 95,938
Statement of Operations For the year from 1 October 2007 to 30 September 2008
Income Income from investments Other income Bank interest Total income Expenses Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Annual tax (note 4.9) Total expenses Net gains from investments Realised gains on investments Currency exchange gains Realised losses on forward foreign exchange contracts Net realised gains Decrease in unrealised appreciation on investments Unrealised currency exchange losses Net decrease in assets as a result of operations US$000 3,916 4 100 4,020
479 156 6 641 95,297
913 81 161 87 17 74 24 1,357 2,663 1,218 89 (23) 3,947 (44,911) (58) (41,022)
Statement of Changes in Net Assets For the year from 1 October 2007 to 30 September 2008
Net assets at the beginning of the year Net gains from investments Realised gains on investments Currency exchange gains Realised losses on forward foreign exchange contracts Decrease in unrealised appreciation on investments Unrealised currency exchange losses Proceeds from shares issued Payments for shares redeemed Net equalisation received (note 10) Net assets at the end of the year US$000 113,328 2,663 1,218 89 (23) (44,911) (58) 55,501 (32,657) 147 95,297
Shares outstanding at the beginning of the year Shares issued during the year Shares redeemed during the year A-2 D-2(GBP) I-2 Z-2
2,867,433
1,969,821
4,685,110
1,493,538
962,506
707,374
1,936,867
(2,550,893)
(1,333)
(2) (427,174)
Shares outstanding at the end of the year 1,810,078 Net asset value per share
2,930,994
707,373 6,194,803
8.10
4.49
8.21
8.25

48 Aberdeen Global Emerging Markets Smaller Companies Fund
Portfolio Statement
Brazil - 14.79% American Banknote 246,000 1,725 CR2 Empreendim 144,000 535 Cremer 310,000 1,691 Localiza Rent a Car 190,100 1,001 Lojas Renner 233,000 2,459 Multiplan Empreendimentos 296,000 2,309 Obrascon Huarte Lain Brasil 126,000 1,863 Saraiva Livreiros 156,000 1,853 Ultrapar (Pref) 27,000 668 14,104
1.81 0.56 1.77 1.05 2.59 2.42 1.95 1.94 0.70 14.79
Egypt - 2.27% National Societe General Bank 464,107 2,163 Hong Kong - 12.28% Aeon Stores 921,000 1,481 Caf de Coral * 880,000 1,555 Dah Sing Banking 1,800,000 1,843 Giordano International * 5,352,000 1,842 Hong Kong & Shanghai Hotels 2,083,000 2,023 Pacific Basin Shipping 900,000 735 Public Financial Holdings 4,400,000 2,227 11,706
2.27
1.55 1.63 1.93 1.93 2.13 0.77 2.34 12.28
Hungary - 0.89% Ablon Group 627,718 846 India - 9.26% Castrol 248,294 1,830 GlaxoSmithKline Pharmaceuticals 50,000 1,270 Godrej Consumer Products 1,044,109 2,514 Kansai Nerolac Paints 107,015 1,358 Mphasis Ltd 240,352 962 Piramal Healthcare 120,000 860 Piramal Life 7,422 21 8,815
0.89
1.92 1.33 2.65 1.43 1.01 0.90 0.02 9.26
Indonesia - 3.68% Bank NISP 15,000,000 1,113 Bank Permata 15,468,000 1,393 Holcim Indonesia 11,000,000 997 3,503
1.17 1.46 1.05 3.68
49
Malaysia - 11.86% Aeon 2,015,600 2,458 Fraser & Neave Holdings 780,000 2,055 Guinness Anchor 750,200 1,138 Oriental Holdings 1,135,700 1,764 POS Malaysia & Services 1,350,000 708 SP Setia 1,100,000 993 United Plantations 666,100 2,186 11,302
2.59 2.16 1.19 1.85 0.74 1.04 2.29 11.86
Mexico - 5.73% Grupo Aeroportuario del Spon ADR 231,000 2,608 Grupo Continental 919,000 1,960 Sare Holding 2,308,000 891 5,459
2.74 2.06 0.93 5.73
Philippines - 1.78% Jollibee Foods 1,610,900 1,693 Qatar - 1.58% Qatar Insurance 32,000 1,504 Singapore - 0.49% Petra Foods 760,000 471 South Africa - 8.39% African Oxygen 540,000 1,779 City Lodge Hotels 183,450 1,579 Massmart 308,000 2,746 Truworths International 548,000 1,886 7,990
1.78
1.58
0.49
1.87 1.66 2.88 1.98 8.39
South Korea - 2.69% Daegu Bank 115,000 997 Korean Reinsurance 115,433 885 Pusan Bank 78,000 681 2,563
1.05 0.93 0.71 2.69
Sri Lanka - 1.38% Commercial Bank of Ceylon 500,000 485 Dialog Telekom 3,000,000 222 Distilleries Co 156,600 100 Keells (John) 640,000 511 1,318
0.51 0.23 0.10 0.54 1.38
50
Thailand - 9.86% Aeon Thana Sinsap 950,000 865 Bumrungrad Hospital 600,000 568 Electricity Generating 395,100 745 Hana Microelectronics 4,870,000 1,916 Regional Container Line 2,800,000 1,089 Siam City Cement 258,700 1,231 Siam Makro 780,200 1,891 Thai Stanley Electric 339,600 1,096 9,401
0.91 0.60 0.78 2.01 1.14 1.29 1.98 1.15 9.86
Turkey - 10.87% Aksigorta * 864,000 2,983 BIM Birlesik Magazalar 101,349 3,178 Cimsa Cimento * 438,000 1,705 Turk Ekonomi Bankasi * 2,488,827 2,496 Total investments Other net assets Total
3.13 3.33 1.79 2.62 10.87 97.80 2.20 100.00
10,362 93,200 2,097 95,297
51
European Equity
Performance For the year ended 30 September 2008, the value of the European Equity - A Accumulation shares decreased by 36.3% compared to a decrease of 29.3% in the benchmark, the FTSE World Europe Index. Managers review European shares suffered heavy losses during a turbulent year for financial markets, with the FTSE World Europe Index closing more than 29% lower in euro terms at the end of the year under review. Months of simmering worries over the deepening global financial turmoil boiled over in September, when the credit contagion spread from the US to Europe through a series of bank failures. This led to panic sell-offs that were among the worst ever on record for some developed markets. Governments responded with emergency fund injections into money markets. They also bailed out distressed lenders and guaranteed bank deposits. UK regulators even banned short-selling of financial stocks in a bid to halt the steep falls, a move that was widely imitated. Such unprecedented action, however, failed to stem the market falls as the crisis brought economies to the brink of recession. Also weighing on sentiment over the year was a spike in oil and commodity prices, which fuelled inflationary pressures. Indeed, the year saw turmoil in the credit markets gradually spread from being a localised financial problem to engulf the global economy. A drop in business investment and consumer spending caused the Eurozone economy to slide into its first quarter-onquarter contraction in over a decade, with worrying signs of weakness in Germany. Ireland, which had seen a housing boom, became the first economy to succumb, while GDP growth in the UK stalled in the second quarter, prompting the government to commit 1.6bn to resuscitate the housing market. Continental Europe, which is less consumption-driven, was less immediately affected. Still, manufacturing and services activities were sluggish, with companies expecting a further slowdown on the back of export weakness. Consumer and business confidence waned. Despite this backdrop, inflation persisted. The European Central Bank (ECB) controversially raised interest rates to a seven-year high of 4.25%, even as signs of a slowdown multiplied. The Bank of England (BOE), however, trimmed rates three times to 5%, in response to growing growth risks. Shortly after the end of the year under review, major central banks, including the ECB and the BOE, cut
interest rates by 0.5% in a synchronised global response to restore confidence and stem one of the worst sell-offs in recent history. This appeared to signal a sea change in attitude, with policymakers likely to adopt a looser monetary policy stance in the months ahead. Portfolio review The Fund underperformed the benchmark FTSE World Europe Index over the year. In portfolio activity, we introduced the well-managed German ATM maker Wincor Nixdorf, which appeared inexpensive, and British newspaper publisher Daily Mail & General Trust, whose media businesses have robust earnings growth potential. Against this, we sold UK supermarket chain Sainsbury and Spanish winemaker Baron de Ley after a strong run-up in their share prices. We exited Swiss bank UBS, owing to the disclosure of additional sub-prime exposure and a weakened balance sheet position, as well as Greek mobile wireless operator Cosmote and UK media group Emap after bidders emerged. We also disposed of our holdings in French carmaker Peugeot on the back of concerns over rising costs and weakening demand, as well as UK property developer Minerva and Germany-focused property management fund Dawnay Day Treveria on valuation grounds. Outlook Recession risks for Europe have increased. Frozen credit markets show few signs of thawing even as the global financial crisis continues to claim new victims. Companies will find access to credit difficult at a time when the global economy is also slowing. Falling demand and higher financing costs may lead firms to cut back on spending and hiring. Consumption is also likely to fall as households rebuild savings, amid rising unemployment. The easing of inflationary pressures, due to falling oil and commodity prices, may help alleviate the impact on corporate margins and wages. Given these headwinds, the economic outlook appears challenging. We remain fairly cautious in the short term and expect markets to stay volatile. This leads us to be especially vigilant in assessing opportunities focusing on businesses that are easy to understand, well-managed with good long-term prospects and sound balance sheets.
52
Aberdeen Global European Equity Fund
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Subscriptions receivable Receivable for investments sold Other assets Total assets Liabilities Taxes and expenses payable Redemptions payable Total liabilities Net assets at the end of the year e000 39,385 537 117 1 493 72 40,605
Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Other income Bank interest Total income Expenses Gross Management fee Less: Management fee cross holdings Net Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Distribution fee (note 4.3) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Annual tax (note 4.9) Total expenses Net gains from investments Realised losses on investments Currency exchange gains Net realised losses Decrease in unrealised appreciation on investments Unrealised currency exchange gains Net decrease in assets as a result of operations e000 2,484 30 14 2,528
82 639 721 39,884
970 (1) 969 51 18 9 73 11 27 29 1,187 1,341 (3,911) 12 (2,558) (27,253) 1 (29,810)
Statement of Changes in Net Assets For the year from 1 October 2007 to 30 September 2008 Net assets at the beginning of the year Net gains from investments Realised losses on investments Currency exchange gains Decrease in unrealised appreciation on investments Unrealised currency exchange gains Proceeds from shares issued Payments for shares redeemed Net equalisation paid (note 10) Net assets at the end of the year e000 116,918 1,341 (3,911) 12 (27,253) 1 25,559 (72,710) (73) 39,884
Share Transactions For the year from 1 October 2007 to 30 September 2008 A-2 Shares outstanding at the beginning of the year 2,600,472 Shares issued during the year Shares redeemed during the year B-2 I-2 Z-2
31,083
108,392
2,067,059
(1,762,592)
(16,750)
(1) (495,230)
Shares outstanding at the end of the year 946,272 Net asset value per share
14,333
1,571,829
28.35
25.89
8.07

Aberdeen Global European Equity Fund 53
Portfolio Statement
Market value Description Quantity e000
Austria - 5.61% Erste Bank * 17,000 600 Flughafen Wien 11,500 493 Immofinanz * 152,000 344 OMV 26,800 801 2,238
1.50 1.24 0.86 2.01 5.61
Belgium - 1.49% Belgacom 23,000 595 France - 13.77% BNP Paribas * 20,000 1,266 Casino * 11,500 712 Compagnie de Saint-Gobain 20,500 739 Gaz de France 28,500 1,004 Renault 10,800 476 Schneider Electric 10,300 612 Total 16,500 687 5,496
1.49
3.17 1.79 1.85 2.52 1.19 1.53 1.72 13.77
Germany - 16.17% BMW 23,000 628 BMW (non voting) 8,100 174 Commerzbank 82,000 866 Deutsche Post 41,500 608 Deutsche Postbank 20,000 547 Linde 12,300 901 MAN 11,500 550 Praktiker 69,000 421 Puma 2,400 468 ThyssenKrupp 29,500 628 Wincor Nixdorf 16,200 657 6,448
1.57 0.44 2.17 1.52 1.37 2.27 1.38 1.06 1.17 1.57 1.65 16.17
Italy - 5.97% ENI 43,000 791 Intesa Sanpaolo 263,000 1,008 Italcementi 88,500 580 2,379
1.98 2.54 1.45 5.97
Netherlands - 4.81% ING Groep 42,500 624 Philips Electronics * 39,000 740 TNT 28,000 555 1,919
1.56 1.86 1.39 4.81
Portugal - 1.41% Portugal Telecom 80,000 564
1.41
54
Spain - 4.30% BBVA * 56,000 622 Mapfre 373,000 1,083 Valenciana de Cementos Portland 305 4 1,709
1.56 2.73 0.01 4.30
Sweden - 7.92% AstraZeneca 38,000 1,168 Ericsson 93,500 619 Nordea 101,000 874 Skand Enskilda BKN A 46,000 500 3,161
2.93 1.55 2.19 1.25 7.92
Switzerland - 2.84% Zurich Financial Services 6,000 1,134 United Kingdom - 34.46% Aberdeen European Smaller Companies Fund + 269,000 2,036 AMEC * 62,000 476 Associated British Foods 89,000 798 Aviva 151,000 916 British American Tobacco 44,000 997 BT Group 430,000 853 Centrica 231,500 902 Daily Mail & General Trust * 148,500 602 Friends Provident 431,500 476 GlaxoSmithKline 57,000 856 Kesa Electricals 341,500 472 Millennium & Copthorne 192,000 598 Mothercare 176,000 765 Premier Foods 579,000 552 Schroders (non voting) 79,000 801 Tomkins * 316,500 621 Venture Production 134,000 1,021 Total investments Other net assets Total 13,742 39,385 499 39,884
2.84
5.10 1.19 2.00 2.30 2.50 2.14 2.27 1.51 1.19 2.15 1.18 1.50 1.92 1.38 2.01 1.56 2.56 34.46 98.75 1.25 100.00
55
European High Yield Bond

Performance For the year ended 30 September 2008, the value of the European High Yield Bond - A Accumulation shares decreased by 25.0% compared to a decrease of 16.4% in the benchmark, the JP Morgan Euro High Yield Bond Index. Managers review It was a tumultuous year in all markets and the high yield market was no exception. The catalyst was US housing market weakness affecting structured finance vehicles, leading to substantial bank write-downs and extremely weak credit markets. The money markets all but seized up, as banks became reluctant to lend to one another, fearing counterparty risk. This was heightened by the collapse of Bear Stearns and the myriad subsequent collapses and bail outs, culminating in the capitulation that followed the collapse of Lehman Brothers in mid September. Government bonds provided the best returns from the flight to quality with US T-Bills at one point offering negative yields, such was the demand. Investment Grade Bonds were weak with spreads trebling to over 300 basis points (bps), while the high yield market sustained heavy selling pressure from hedge funds and increasingly risk-averse investors with spreads rising from 362 bps to end the year at the high of 1173 bps. GDP Growth in Europe was initially fairly resilient, but the economy contracted slightly in the second quarter of 2008. Whilst the data for the third quarter is not yet available, it is likely to be negative; meaning the region is officially in recession. The sharp fall in construction and industry in the second quarter were the major contributors to the negative growth. Despite the headlines, financial services remain pretty robust, indeed the sector returned stable growth of 0.6% to 0.7% each quarter over the year. It can be expected that performance in this sector is likely to weaken over the coming year, however, there is a marked disparity between countries. Italy was hurt by a strong Euro in the first quarter up to the second quarter data, although the Euros sharp decline since the end of July should offer some respite. Ireland and Spain are suffering from weak housing markets, yet whilst Ireland was already in recession by the June data, this weakness has yet to filter through to Spains overall economy, as it posted the best GDP figures for Western Europe over the year. With the backdrop of growing global economic weakness, the European Central Bank was preoccupied with the threat of inflation throughout the year and held rates at 4% until July, when it raised it to 4.25%. The increase was short-lived however, as subsequent to
the September year end, it joined in the coordinated central bank efforts and cut rates by 50 bps to 3.75%. The US has seen the most radical monetary and fiscal efforts to stimulate growth and avoid a prolonged recession. The Fed Funds rate has been slashed from 5.00% to 2.25% over the year and subsequently by a further 50 bps to 1.75% as part of the globally coordinated reduction by central banks. Substantial assistance has been given to banks initially following the rescue of Bear Stearns by JP Morgan. The bail outs were expanded and expedited as a host of other banks followed a similar fate to Bear Stearns, the most damaging being the collapse of Lehman Brothers in mid September. As a sign of the times, following the reclassification of Morgan Stanley and Goldman Sachs, there are no longer any pure investment banks. Subsequent to the reporting year end, the Fed has enacted its much vaunted $700bn bail out plan. Initially this gave little comfort to the markets, as fear and uncertainty further gripped the system. However, a glimmer of hope has appeared from the steep reduction in overnight and weekly dollar LIBOR rates and more gradually in the 3 month, indicating the banks increasing willingness to lend to each other and hopefully an end to the credit-related leg of this downturn. Portfolio review There have been substantial swings in market sentiment over the year which has resulted in very large inflows and outflows. Redemptions dominated the first six months with a modest inflow in the last six months. We have kept to our investment themes avoiding motors and adding a few financials. More notable additions were to Europcar, Anglo Irish Bank, Ford Bank and Lecta, while the larger sales were Norske Skog, Unity Media, Cablecom, Cell C Holdings, HTM Sports, Chesapeake and Diversified European Credit. Outlook Over the year the Fund has had a relatively poor performance in a market where forced selling has often been indiscriminate having very little regard for fundamental values. In Europe the new issue market has been closed while defaults remain at very low levels. Company results so far have mainly been very satisfactory. It has to be expected that the world economic slowdown will clearly have an effect in Europe and defaults will rise, however the market is currently pricing in a depression of 1930s order. We would expect fiscal and monetary moves to avoid this scenario and with European high yield priced significantly cheaper than the US there is substantial value obtainable.
56
Aberdeen Global European High Yield Bond Fund
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Subscriptions receivable Receivable for investments sold Unrealised gains on forward foreign exchange contracts (note 2.6) Total assets Liabilities Taxes and expenses payable Redemptions payable Other liabilities Total liabilities Net assets at the end of the year e000 213,161 6,779 7,557 67 144 696 228,404
Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Other income Bank interest Total income Expenses Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Distribution fee (note 4.3) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Annual tax (note 4.9) Total expenses Net gains from investments Realised losses on investments Currency exchange losses Net realised losses e000 375,234 24,380 (27,093) (1,221) (81,894) 26 Increase in unrealised depreciation on investments Unrealised currency exchange gains Increase in unrealised appreciation on forward currency exchange contracts Net decrease in assets as a result of operations e000 27,700 73 464 28,237
3,118 121 52 83 240 44 85 114 3,857 24,380 (27,093) (1,221) (3,934) (81,894) 26
343 1,929 427 2,699 225,705
Statement of Changes in Net Assets For the year from 1 October 2007 to 30 September 2008 Net assets at the beginning of the year Net gains from investments Realised losses on investments Currency exchange losses Increase in unrealised depreciation on investments Unrealised currency exchange gains Increase in unrealised appreciation on forward currency exchange contracts Proceeds from shares issued Payments for shares redeemed Net equalisation paid (note 10) Dividends paid (note 5) Net assets at the end of the year
696 (85,106)
696 271,542 (330,789) (403) (4,773) 225,705
57
A-1 Shares outstanding at the beginning of the year Shares issued during the year Shares redeemed during the year Shares outstanding at the end of the year Net asset value per share A-2 A-2*(USD) B-1 B-2 D-1(GBP) D-2(GBP) I-2 Z-2
5,532,849 5,175,173
22,463,306 9,480,996
2,530,666 -
1,049,734 2,561 (248,106)
160,283 (38,931)
18,603 350,172 (29,573)
1,373,057 (141,639)
1,299,684 (685,010)
4,815,253 (10,344)
(3,462,585) (23,231,893)
7,245,437 6.00
8,712,409 10.57
2,530,666 7.33
804,189 5.98
121,352 9.72
339,202 4.81
1,231,418 8.52
614,674 7.38
4,804,909 10.70
* Hedged share class. The accompanying notes form an integral part of these financial statements.
58
Portfolio Statement
Security
Coupon (%)
Maturity
Nominal
Market Value e000
Argentina - 0.18% Argentina Argentina Telecom Argentina
0.00 7.82 9.00
15/12/35 31/12/33 15/10/11
1,541,231 622,642 15,533
99 305 11 415
0.04 0.14 0.18
Australia - 1.36% FMG Fin Canada - 0.68% Mecachrome Czech Republic - 2.31% Sazka Denmark - 2.60% FS Funding * FS Funding PIK Nordic Tel
9.75
01/09/13
3,300,000
3,069
1.36
9.00
15/05/14
3,700,000
1,545
0.68
8.50
12/07/21
6,439,535
5,216
2.31
8.875 8.40 FRN
15/05/16 18/06/15 01/05/16
3,250,000 2,500,000 1,000,000
2,791 2,138 931 5,860
1.24 0.95 0.41 2.60
France - 6.12% Akerys Calcipar Europcar Europcar Tereos Europe Thomson PERP
7.471 FRN FRN 8.125 6.375 5.75
01/08/14 01/07/14 15/05/13 15/05/14 15/04/14 25/09/15
9,000,000 2,800,000 5,000,000 6,500,000 2,300,000 8,750,000
1,035 2,017 3,075 3,475 1,530 2,691 13,823
0.46 0.89 1.36 1.54 0.68 1.19 6.12
Germany - 7.78% ATU Auto-Teile-Unger Cognis Cognis PIK Gerresheimer Holdings Grohe Holdings Nell * Unity Me VAC
FRN 9.50 0.00 7.875 FRN 8.375 8.75 9.25
01/10/14 15/05/14 15/01/15 01/03/15 15/01/14 15/08/15 15/02/15 15/04/16
4,150,000 2,500,000 5,100,082 156,000 1,500,000 6,000,000 3,000,000 4,000,000
2,200 2,100 2,779 157 1,255 2,923 2,749 3,380 17,543
0.97 0.93 1.23 0.07 0.56 1.30 1.22 1.50 7.78
Greece - 2.29% Hellas II Hellas Telecom
FRN FRN
15/01/15 15/10/12
5,750,000 2,000,000
3,450 1,723 5,173
1.53 0.76 2.29
Hungary - 2.21% Invitel Holdings PIK Magyar Telecom
FRN FRN
15/04/13 01/02/13
6,004,076 450,000
4,593 398 4,991
2.03 0.18 2.21
59
Security
Coupon (%)
Maturity
Nominal
Market Value e000
Ireland - 6.89% Anglo Irish Bank Anglo Irish Bank Perp Ardagh Glass Finance BCM Ireland Finance BCM Ireland PIK Clondalkin Industries
FRN 5.219 7.125 FRN FRN 8.00
25/06/14 29/09/16 15/06/17 15/08/16 15/02/17 15/03/14
792,000 5,250,000 4,750,000 2,500,000 11,989,496 1,750,000
642 2,307 3,800 1,963 5,575 1,295 15,582
0.28 1.02 1.68 0.87 2.47 0.57 6.89
Italy - 3.58% IT Holding Finance Wind Acquisition PIK
9.875 FRN
15/11/12 21/12/11
4,300,000 6,560,967
2,299 5,773 8,072
1.02 2.56 3.58
Lithuania - 0.76% Bite Finance International * Luxembourg - 0.41% Diversified European Credit Malta - 0.06% Global Cap Netherlands - 7.37% Carlson Wagonlit Louis No1 * Louis No1 UPC Holding *
FRN
15/03/14
2,500,000
1,725
0.76
3.10
24/07/13
1,500,000
930
0.41
5.60
02/06/16
150,000
138
0.06
FRN 10.00 8.50 8.625
01/05/15 01/12/16 01/12/14 15/01/14
4,945,000 8,000,000 10,500,000 1,000,000
3,214 5,320 7,192 903 16,629
1.42 2.36 3.19 0.40 7.37
Poland - 1.32% Zlomrex International Finance South Africa - 12.27% Consol Glass Edcon Holdings Property Ltd Edcon Proprietary Ltd Foodcorp New Reclamation Group Peermont Global Savcio Holdings
8.50
01/02/14
5,000,000
2,975
1.32
7.625 9.645 7.395 8.875 8.125 7.75 8.00
15/04/14 15/06/15 15/06/14 15/06/12 01/02/13 30/04/14 15/02/13
5,450,000 7,750,000 7,500,000 5,250,000 5,356,383 3,925,000 5,500,000
3,941 3,894 4,725 3,649 3,937 2,880 4,648 27,674
1.75 1.73 2.09 1.62 1.74 1.28 2.06 12.27
Spain - 10.60% Cirsa Capital Cirsa Finance Codere (Boats) PIK Codere Finance Lecta Regs Lecta Ono Finance
7.875 8.75 FRN 8.25 FRN FRN 10.50
15/07/12 15/05/14 15/12/15 15/06/15 15/02/14 15/02/14 15/05/14
5,500,000 5,250,000 8,446,828 4,000,000 6,500,000 6,000,000 2,250,000
3,850 3,701 4,012 3,020 4,485 3,570 1,260 23,898
1.71 1.64 1.78 1.34 1.99 1.58 0.56 10.60

60
Security
Coupon (%)
Maturity
Nominal
Market Value e000
Sweden- 3.87% Corral Finance PIK Switzerland - 5.83% Beverage Packaging Holdings Beverage Packaging Holdings Cablecom Luxembourg
FRN
15/04/10
10,578,302
8,727
3.87
8.00 9.50 8.00
15/12/16 15/06/17 01/11/16
7,200,000 8,700,000 1,000,000
5,994 6,329 826 13,149
2.66 2.80 0.37 5.83
United Kingdom - 7.95% Ardagh Glass Finance * Cammell Laird EB Holdings (Boats) PIK FCE Bank EMTN FCE Bank EMTN Ineos Group Holdings * Ineos Vinyls Finance Lehman Bros UK Cap Funding Rexam
8.875 12.00 11.00 7.125 7.125 7.875 9.125 3.875 6.75
01/07/13 15/10/10 31/03/17 16/01/12 15/01/13 15/02/16 01/12/11 28/02/49 29/06/67
3,000,000 240,000 11,693,529 1,000,000 4,500,000 4,400,000 1,000,000 4,600,000 1,000,000
2,655 12 7,732 715 3,139 2,321 650 678 17,902
1.18 0.01 3.43 0.32 1.39 1.03 0.29 0.30 7.95
United States - 8.02% Avery Weightronics + Avery Weightronics Warrants + Dura Operating General Motors GMAC Momentive Performance + Polypore Rockwood Specialities + Sensata Travelport Travelport TRW Automotive +
9.00 8.38 FRN 9.00 8.75 7.63 9.00 8.74 10.88 6.38
01/05/09 05/07/33 30/06/09 01/12/14 15/05/12 15/11/14 01/05/16 01/09/14 01/09/16 15/03/14
42,700 12,484 2,250,000 2,250,000 1,200,000 5,500,000 500,000 250,000 6,500,000 5,000,000 5,500,000 1,000,000
2 11 930 846 3,795 455 231 4,192 3,600 3,273 790 18,125 213,161
0.41 0.37 1.68 0.20 0.10 1.86 1.60 1.45 0.35 8.02 94.46
Transferable securities
61
Forward foreign exchange contracts - 0.29%

Unrealised Percentage of gains/(losses) total net assets % e000
Buy
Sell
Settlement Date
Buy Amount
Sell Amount
EUR USD EUR USD USD EUR USD EUR USD EUR EUR USD USD USD USD
USD EUR USD EUR EUR USD EUR USD EUR USD USD EUR EUR EUR EUR
03/12/08 16/10/08 24/10/08 16/10/08 24/10/08 24/10/08 24/10/08 24/10/08 16/10/08 16/10/08 03/12/08 16/10/08 16/10/08 24/10/08 03/12/08
139,000 168,896 211,000 212,268 266,776 313,000 359,377 511,000 528,354 682,000 695,000 716,560 6,857,808 7,115,000 7,123,000
205,667 118,000 298,536 137,000 185,000 443,372 240,000 729,737 357,000 998,830 1,000,018 497,000 4,677,944 4,500,886 4,863,643
(4) 3 11 1 4 11 2 11 (15) (2) 3 106 462 103 696 213,857 11,848 225,705
(0.01) 0.05 0.20 0.05 0.29 94.75 5.25 100.00
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. + Unlisted transferable security. * A portion of the stock is on loan at the year end.
62
European Opportunities (Ex UK)

Performance For the year ended 30 September 2008, the value of the European Opportunities (Ex UK) - A Accumulation shares decreased by 33.3% compared to a decrease of 28.9% in the benchmark, the FTSE World Europe ex UK Index. Managers review European equities closed sharply lower in the year under review, with the benchmark FTSE World Europe ex UK Index declining by about 29% in euro terms. The pace of selling quickened with the spread of the credit contagion from the US to the Europe. Governments scrambled to contain the fallout, via emergency bailouts, liquidity boosts and even guarantees on bank deposits. These actions sparked brief counter-trend rallies but failed to staunch the overall sell-off as fears of a recession grew. Over the year, a spike in oil and commodity prices also fuelled inflationary pressures, making policy responses more difficult. Economic growth started weak and remained that way, although the Continents German heartland briefly kept hopes of faster growth alive. However, in the second quarter, the Eurozone economy suffered its first quarter-on-quarter contraction in 10 years, on the back of cooling investment and consumer spending, especially in the debt-driven peripheral economies. The weakness in Germany was particularly worrying. As the liquidity crunch fed through to the broad economy, manufacturing and services activity slowed. Ireland became the first economy to go into recession, with others on the brink. Unsurprisingly, both consumer and business confidence weakened, with companies expecting a further slowdown on signs of export weakness. The European Central Bank (ECB) maintained its hawkish stance against inflation, raising interest rates once to a seven-year high of 4.25%. However, in a stark sign of changing priorities owing to the financial crisis, the ECB, along with five other central banks, cut interest rates by 0.5% in a coordinated response a few days after the year end.
Portfolio review The Fund underperformed the benchmark FTSE World Europe ex UK Index over the year. In portfolio activity, we introduced pharmaceutical company Roche, which appeared increasingly attractive in light of recent price weakness, and Swiss cement maker Holcim, which is well placed to benefit from continued growth, given its large exposure to emerging markets. Conversely, we sold UBS, following further write-downs and the opaque nature of its balance sheet; Huhtamaki, on anticipation of further difficulties in the companys planned restructuring; and Peugeot, on concerns over cost inflation and weakening demand. We also exited Cosmote, Dawnay Day Treveria, Folli Follie, Hypo Real Estate, Thomson and Zehnder Group in view of better opportunities elsewhere. Outlook Recession risks for Europe have increased. Credit markets remain frozen as the global financial crisis continues to escalate, despite government intervention. Euro-zone companies will find access to credit increasingly difficult at a time when the global economy is also slowing. Falling demand and higher financing costs may lead firms to cut back on spending and hiring. Consumption is also likely to fall as households rebuild savings, amid rising unemployment. The easing of inflationary pressures, due to falling oil and commodity prices, may help alleviate the impact on corporate margins and wages. That said, the economic outlook appears challenging. We remain fairly cautious on the short-term outlook for profit growth across the region and expect markets to stay volatile for so long as there remains such uncertainty over the financial sector. This leads us to be especially vigilant in assessing opportunities as we continue to seek out businesses which are easy to understand, wellfinanced and managed with good long-term prospects.
Aberdeen Global European Opportunities (Ex UK) Fund
63
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Subscriptions receivable Other assets Total assets Liabilities Taxes and expenses payable Redemptions payable Total liabilities Net assets at the end of the year e000 74,457 2,009 141 111 172 76,890
Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Other income Bank interest Total income Expenses Gross Management fee Less: Management fee cross holdings Net Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Annual tax (note 4.9) Total expenses Net gains from investments Realised losses on investments Currency exchange gains Net realised losses Increase in unrealised depreciation on investments Unrealised currency exchange gains Net decrease in assets as a result of operations e000 3,690 81 31 3,802
1,725 (3) 1,722 61 37 110 17 31 53 2,031 1,771 (12,200) 15 (10,414) (32,879) 3 (43,290)
180 23 203 76,687
Statement of Changes in Net Assets For the year from 1 October 2007 to 30 September 2008 Net assets at the beginning of the year Net gains from investments Realised losses on investments Currency exchange gains Increase in unrealised depreciation on investments Unrealised currency exchange gains Proceeds from shares issued Payments for shares redeemed Net equalisation paid (note 10) Net assets at the end of the year e000 144,081 1,771 (12,200) 15 (32,879) 3 9,649 (33,515) (238) 76,687
Share Transactions For the year from 1 October 2007 to 30 September 2008 Shares outstanding at the beginning of the year Shares issued during the year Shares redeemed during the year Shares outstanding at the end of the year Net asset value per share A-2 353,417 1,655 (346,709) D-2(GBP) 12,644,185 1,020,117 (3,290,199)
8,363 10,374,103 7.39 5.88
64
Portfolio Statement
Austria - 5.60% Erste Bank * 33,300 1,175 Flughafen Wien 24,200 1,037 Immofinanz * 254,600 575 OMV 50,600 1,512 4,299
1.53 1.35 0.75 1.97 5.60
Belgium - 1.74% Belgacom 51,500 1,334 European Composite - 4.76% Aberdeen European Smaller Companies Fund + 482,000 3,648 France - 17.32% Air Liquide 16,700 1,287 BNP Paribas * 41,700 2,640 Casino * 23,700 1,468 Compagnie de Saint-Gobain * 38,800 1,398 Gaz de France 51,500 1,815 Kesa Electricals 581,000 804 Renault * 20,400 899 Schneider Electric * 20,900 1,242 Total 41,700 1,736 13,289
1.74
4.76
1.68 3.44 1.91 1.82 2.37 1.05 1.17 1.62 2.26 17.32
Germany - 26.04% Adidas * 42,700 1,606 BMW 56,400 1,541 Commerzbank 136,000 1,437 Deutsche Lufthansa 99,300 1,382 Deutsche Post 102,000 1,494 Deutsche Postbank 42,300 1,157 E.ON 39,800 1,371 Linde 29,100 2,131 MAN 24,200 1,157 Metro 36,800 1,328 MTU Aero Engines 59,600 1,161 Praktiker 112,600 688 Puma 5,100 994 ThyssenKrupp 58,600 1,247 Wincor Nixdorf 31,400 1,273 19,967
2.09 2.01 1.87 1.80 1.95 1.51 1.79 2.78 1.51 1.73 1.51 0.90 1.30 1.63 1.66 26.04
Italy - 8.08% ENI 106,200 1,954 Hera 535,500 1,066 Intesa Sanpaolo 533,500 2,045 Italcementi 172,000 1,127 6,192
2.55 1.39 2.67 1.47 8.08
65
Netherlands - 6.91% ING Groep 82,000 1,205 Philips Electronics * 76,300 1,447 TNT 60,200 1,193 Unilever 75,200 1,448 5,293
1.57 1.89 1.56 1.89 6.91
Portugal - 1.53% Portugal Telecom 166,300 1,173 Spain - 6.59% Baron de Ley 28,200 1,290 BBVA 128,000 1,421 Mapfre 806,400 2,343 5,054
1.53
1.68 1.85 3.06 6.59
Sweden - 7.21% AstraZeneca 56,500 1,736 Ericsson * 186,800 1,236 Nordea 184,000 1,592 Skand Enskilda BKN A 88,600 963 5,527
2.26 1.61 2.08 1.26 7.21
Switzerland - 11.31% Holcim 25,900 1,295 Nestle 56,700 1,697 Novartis 56,400 2,103 Roche Holdings 13,200 1,448 Zurich Financial Services 11,300 2,136 8,679
1.69 2.21 2.73 1.89 2.79 11.31
United States - 0.00% Strategic Diagnostics 1,578 2 Verigen + 8,334 - Total investments Other net assets Total
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. + Unlisted/Unquoted transferable security. Managed by subsidiaries of Aberdeen Asset Management PLC. * A portion of the stock is on loan at the year end.
97.09 2.91 100.00
2 74,457 2,230 76,687
66
High Yield Bond

Performance For the year ended 30 September 2008, the value of the High Yield Bond D Income shares decreased by 12.9% on a total return basis compared to a decrease of 8.2% in the benchmark, a composite index made up of 30% of the JP Morgan Euro High Yield Bond Index and 70% of the JP Morgan Sterling High Yield Index. Change of management fee From 1 October 2008, the Investment Manager increased the management fees payable on the A and D Shares of the Fund from 1.25% per annum of Net asset Value (NAV) to 1.50% per annum of NAV and I shares from 0.75% per annum of Net asset Value (NAV) to 0.85% per annum of NAV. Managers review It was a tumultuous year in all markets and the high yield market was no exception. The catalyst was US housing market weakness affecting structured finance vehicles, leading to substantial bank write-downs and extremely weak credit markets. The money markets all but seized up, as banks became reluctant to lend to one another, fearing counterparty risk. This was heightened by the collapse of Bear Stearns and the myriad subsequent collapses and bail outs, culminating in the capitulation that followed the collapse of Lehman Brothers in mid September. Government bonds provided the best returns from the flight to quality with US T-Bills at one point offering negative yields, such was the demand. Investment Grade Bonds were weak with spreads trebling to over 300 basis points (bps), while the high yield market sustained heavy selling pressure from hedge funds and increasingly risk-averse investors with spreads rising from 362 bps to end the year at the high of 1173 bps. Initially GDP Growth in Europe was initially fairly resilient, but the economy contracted slightly in the second quarter. Whilst the data for the third quarter is not yet available, it is likely to be negative; meaning the region is officially in recession. The sharp fall in construction and industry in the second quarter were the major contributors to the negative growth. Despite the headlines, financial services remain pretty robust, indeed the sector returned stable growth of 0.6% to 0.7% each quarter over the year. However, it can be expected that performance in this sector is likely to weaken over the coming year. There is a marked disparity between countries. Italy was hurt by a strong Euro up to the second quarter data, although the Euros sharp decline since the end of July should offer some respite. Ireland and Spain are suffering from weak housing markets, but whilst Ireland was already in recession by the June data, this weakness has yet to filter through to Spains overall economy, as it posted the best GDP figures for Western Europe over the year. With the backdrop of growing global economic weakness, the European Central Bank (ECB) was preoccupied with the threat of inflation throughout the year and held rates at 4% until July, when it raised it to 4.25%. The increase was short-lived however, as subsequent to the September year end, it joined in the coordinated central bank efforts and cut rates by 50 bps to 3.75%.
Aberdeen Global High Yield Bond Fund
The UK has seen deteriorating quarterly growth throughout the year, with the second quarter 2008 figure being flat. UK GDP is expected to contract when the third quarter figures are released. Faced with a similar conundrum to the ECB over inflation and growth, the Monetary Policy Committee sided with the doves and reduced rates from 5.75% at the beginning of the period to 5.00% by April. Rates were then held at that level until the decision was taken to reduce them by a further 50 basis points to 4.50% as part of the coordinated global central bank reduction. The US has seen the most radical monetary and fiscal efforts to stimulate growth and avoid a prolonged recession. The Fed Funds rate has been slashed from 5.00% to 2.25% over the year and subsequently by a further 50 bps to 1.75% as part of the globally coordinated reduction by central banks. Substantial assistance has been given to banks following the rescue of Bear Stearns by JP Morgan. The bail outs were expanded and expedited as a host of other banks followed a similar fate to Bear Stearns; the most damaging being the collapse of Lehman Brothers in mid September. As a sign of the times, following the reclassification of Morgan Stanley and Goldman Sachs, there are no longer any pure investment banks. Subsequent to the reporting year end, the Fed has enacted its much-vaunted US$700bn bail out plan. Initially this gave little comfort to the markets, as fear and uncertainty further gripped the system. However, a glimmer of hope has appeared from the steep reduction in overnight and weekly dollar LIBOR rates and more gradually in the 3 month, indicating the banks increasing willingness to lend to each other and hopefully an end to the credit-related leg of this downturn. In currency markets, sterling has weakened considerably, falling 13% against the resurgent US Dollar and 12% against the Euro. Portfolio review With no new issues and modest redemptions, we have been a net seller of securities, although the redemption of bonds such as Chelsea Village, Seehafen Rostock and Pipe Holdings has limited the need for action. We have established a holding in Anglo Irish Bank while we made sales including Premier Farnell, AES, Cell C Holdings, Polypore, Johnson Diversey, Chesapeake, FMG and Argentina. Outlook Over the year the Fund has had a relatively poor performance in a market where forced selling has often been indiscriminate, having very little regard for fundamental values. In Europe the new issue market has been closed while defaults remain at very low levels. It has to be expected that the world economic slowdown will clearly have an effect in Europe and defaults will rise, however the market is currently pricing in a depression of 1930s order. We would expect fiscal and monetary moves to avoid this scenario and with European high yield priced significantly cheaper than the US there is substantial value obtainable.
67
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Subscriptions receivable Receivable for investments sold Total assets Liabilities Taxes and expenses payable Redemptions payable Other liabilities Total liabilities Net assets at the end of the year 54 1 719 774 28,060 000 26,755 718 1,101 35 225 28,834
Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Other income Bank interest Total income Expenses Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Annual tax (note 4.9) Total expenses Net gains from investments Realised losses on investments Currency exchange gains Net realised gains Increase in unrealised depreciation on investments Unrealised currency exchange losses Net decrease in assets as a result of operations 451 16 8 42 5 13 17 552 3,084 (321) 1 2,764 (7,126) (2) (4,364) 000 3,590 9 37 3,636
Statement of Changes in Net Assets For the year from 1 October 2007 to 30 September 2008 Net assets at the beginning of the year Net gains from investments Realised losses on investments Currency exchange gains Increase in unrealised depreciation on investments Unrealised currency exchange losses Proceeds from shares issued Payments for shares redeemed Net equalisation paid (note 10) Dividends paid (note 5) Net assets at the end of the year
68
Share Transactions For the year from 1 October 2007 to 30 September 2008 000 43,762 3,084 (321) 1 (7,126) (2) 4,134 (12,391) (80) (3,001) 28,060
Shares outstanding at the beginning of the year Shares issued during the year Shares redeemed during the year Shares outstanding at the end of the year Net asset value per share
D-1 39,985,745 4,071,906 (11,980,808) 32,076,843 0.8748
Portfolio Statement
Security
Coupon (%)
Maturity
Nominal
Market Value 000
Argentina - 1.59% Argentina Inversora De Electrica Inversora De Electrica Provincia De Misiones + Provincia De Misiones Telecom Argentina
0.00 6.50 8.65 0.00 6.00 9.00
15/12/35 26/12/17 16/09/49 01/08/06 01/08/06 15/10/11
3,297,507 1,104,411 109,463 125,000 125,000 27,960
169 245 14 3 16 447
0.60 0.87 0.05 0.01 0.06 1.59
Australia - 1.32% FMG Fin Canada - 1.07% Mecachrome Czech Republic - 2.96% Sazka Denmark - 1.22% FS Funding * France - 3.04% Akerys Europcar Legrand Tereos Europe Thomson PERP
9.75
01/09/13
500,000
370
1.32
9.00
15/05/14
900,000
299
1.07
8.50
12/07/21
1,287,907
830
2.96
8.875
15/05/16
500,000
342
1.22
FRN 8.125 8.50 6.375 5.75
01/08/14 15/05/14 15/02/25 15/04/14 25/09/15
575,000 400,000 289,000 300,000 1,250,000
53 170 164 159 306 852
0.19 0.61 0.58 0.57 1.09 3.04
Germany - 8.97% ATU Auto-Teile-Unger Cognis Gerresheimer Holdings Kabel Deutschland Nell * Unity Me VAC
FRN 9.50 7.875 10.75 8.375 8.75 9.25
01/10/14 15/05/14 01/03/15 01/07/14 15/08/15 15/02/15 15/04/16
750,000 750,000 450,000 300,000 750,000 750,000 400,000
316 502 360 231 291 547 269 2,516
1.13 1.79 1.28 0.82 1.04 1.95 0.96 8.97
Greece - 1.53% Hellas II FRN 15/01/15 900,000 430 1.53
Hungary - 2.85% Invitel Holdings PIK Magyar Telecom
FRN 10.75
15/04/13 15/08/12
712,146 500,000
434 366 800
1.55 1.30 2.85
69
Security
Coupon (%)
Maturity
Nominal
Market Value 000
Ireland - 3.52% Anglo Irish Bank Anglo Irish Bank Ardagh Glass Finance BCM Ireland PIK
5.25 5.219 7.125 FRN
05/10/49 29/09/49 15/06/17 15/02/17
300,000 350,000 250,000 1,420,974
182 122 159 526 989
0.65 0.43 0.57 1.87 3.52
Italy - 3.24% IT Holdings Parmalat Capital Finance + Wind Acquisition PIK
9.875 9.375 FRN
15/11/12 02/12/17 21/12/11
650,000 1,350,000 902,885
277 632 909
0.99 2.25 3.24
Netherlands - 4.93% Carlson Wagonlit Louis No1 * Louis No1
FRN 10.00 8.50
01/05/15 01/12/16 01/12/14
500,000 1,100,000 1,000,000
259 582 545 1,386
0.92 2.07 1.94 4.93
Poland - 1.27% Zlomrex International Finance South Africa - 5.42% Consol Glass Edcon Holdings Proprietary Ltd Edcon Holdings Property Ltd Foodcorp New Reclamation Group + Peermont Global
8.50
01/02/14
750,000
355
1.27
7.625 FRN FRN 8.875 8.125 7.75
15/04/14 15/06/14 15/06/15 15/06/12 01/02/13 30/04/14
500,000 600,000 500,000 250,000 918,237 100,000
288 301 200 138 537 58 1,522
1.03 1.07 0.71 0.49 1.91 0.21 5.42
Spain - 7.46% Cirsa Capital Cirsa Finance Codere (Boats) PIK Codere Finance Lecta Regs Lecta Ono Finance
7.875 8.75 FRN 8.25 FRN FRN 10.50
15/07/12 15/05/14 15/12/15 15/06/15 15/02/14 15/02/14 15/05/14
850,000 800,000 873,810 600,000 250,000 250,000 500,000
474 449 330 361 137 118 223 2,092
1.69 1.60 1.18 1.29 0.49 0.42 0.79 7.46
Sweden - 3.38% Corral Finance PIK Switzerland - 2.50% Beverage Packaging Holdings Beverage Packaging Holdings
FRN
15/04/10
1,444,941
949
3.38
8.00 9.50
15/12/16 15/06/17
450,000 700,000
298 405 703
1.06 1.44 2.50
70
Security
Coupon (%)
Maturity
Nominal
Market Value 000
United Kingdom - 22.99% Ardagh Glass Finance British Airways Cammell Laird Carron Energy Castle Holding * Castle Holco 4 Ltd Corporate Services EB Holdings (Boats) Energis / Chelys + Energis / Chelys + Greycoat + Heating Finance Impellam Group Plc Ineos Group Holdings Lehman Bros UK Cap Funding + Mutual Securitisation Northern Rock Peel Holdings Pipe Holdings REA Finance Real Estate Opportunities Royal & Sun Alliance Scotia Holdings + Virgin Media
8.875 7.25 12.00 9.80 FRN 9.875 10.00 11.00 9.125 9.50 9.50 7.875 7.875 3.875 7.392 5.625 9.875 9.75 9.50 7.50 8.50 8.50 9.75
01/07/13 23/08/16 15/10/10 30/09/11 15/05/14 15/05/15 29/04/11 31/03/17 15/03/10 15/06/06 30/09/03 31/03/14 15/02/16 28/02/49 30/09/12 13/01/15 30/04/11 01/11/13 31/12/17 31/05/11 08/12/14 26/03/02 15/04/14
700,000 500,000 840,000 612,668 900,000 200,000 327,330 2,450,073 6,250,000 1,975,000 1,500,000 545,000 27,589 1,500,000 200,000 395,634 100,000 26,000 250,000 350,000 500,000 300,000 995,000 500,000
493 458 33 567 383 67 327 1,290 182 13 630 396 84 28 128 351 316 294 405 6,445
1.76 1.63 0.12 2.02 1.36 0.24 1.17 4.60 0.65 0.05 2.25 1.41 0.30 0.10 0.46 1.25 1.13 1.05 1.44 22.99
United States - 16.09% AES American Standard Avery Weightronics + Avery Weightronics Warrants + Constellation Brands Dura Operating General Motors HCA Inc Iron Mountain Johnson Diversey Momentive Performance + Polypore Rockwood Specialities + Sensata Travelport Travelport Viatel Warner Music
8.375 8.25 8.50 9.00 6.00 8.75 7.25 9.625 9.00 8.75 7.625 9.00 FRN 10.875 8.125
01/03/11 01/06/09 15/11/09 01/05/09 23/05/12 01/11/10 15/04/14 15/05/12 01/12/14 15/05/12 15/11/14 01/05/16 01/09/14 01/09/16 15/04/14
50,000 225,000 120,750 31,212 124,000 1,000,000 500,000 579,000 500,000 100,000 600,000 400,000 300,000 750,000 850,000 950,000 6 800,000
50 234 4 122 4 251 568 431 72 330 290 221 385 487 450 620 4,519 26,755 1,305 28,060
0.18 0.83 0.01 0.43 0.01 0.89 2.02 1.54 0.26 1.18 1.03 0.79 1.37 1.74 1.60 2.21 16.09 95.35 4.65 100.00
Total investments Other net assets Total

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. + Unlisted/Unquoted transferable security. * A portion of the stock is on loan at the year end. Aberdeen Global High Yield Bond Fund
71
India Opportunities
Performance For the year ended 30 September 2008, the value of the India Opportunities - A Accumulation shares decreased by 29.4% compared to a decrease of 37.8% in the benchmark, the MSCI India Index. Managers review Over the 12 months under review, Indian equities fell sharply on recession fears, after reaching a record high in December. Materials stocks bore the brunt of the sell-off as the construction and real estate industries slowed. The year began on an upbeat note, boosted by positive economic data and the massive influx of foreign funds. Even with the emergence of the US credit crisis, local equities maintained their upward trajectory, buoyed by robust corporate earnings and consumption. Domestic factors such as the weakening rupee and an extension of tax holidays for IT companies also helped sentiment. However, as bank write-downs escalated overseas and commodity prices spiked, this triggered big falls. Fast forward to September and the sell-off in the stock market had become a full-scale rout. The collapse of Lehman Brothers in the US spooked markets around the world. As fears about the safety of money market funds rose, investors began withdrawing money. Banks dependent on these markets for short-term liquidity buckled, and had to be rescued by various governments in Europe. This culminated with US legislators rejecting an initial US$700bn financial rescue plan at the end of September. In the local banking system, liquidity also seized up, causing Indian interbank rates to shoot up by 41%. To unblock choked-up markets, the central bank has relaxed its monetary policy, although it had initially favoured a tighter stance to combat high inflation. As wholesale prices rose from under 4% to double digits, costlier imports had worsened the trade deficit, while the oil and fertiliser subsidy bill had risen beyond expectations, adding burden to state finances. In response, the Reserve Bank of India raised the cash reserve ratio six times from 7.5% to 9%. Meanwhile, weakening growth in the developed world took a toll on the domestic economy. GDP growth, which has averaged 9% year-on-year in the past few years, slowed to 7.9% in the quarter ended March, as the manufacturing and utilities sectors softened. Industrial production grew sluggishly in August. On the bright side, merchandise exports in the April-August period expanded by 35.1%, while foreign direct investment during the same period was a record US$14.8bn.
Portfolio review The Fund fell by 29.4%, outperforming the benchmark, which declined by 37.8%. Over the year, we sold energy firms Bharat Petroleum and Oil & Natural Gas, following a run-up in their share prices. Unlike elsewhere, lower oil prices benefit Indian energy companies because of the states mandate to sell fuel below cost. The subsidy burden had made the operating environment difficult and we felt there were better opportunities elsewhere. We also topsliced stocks that had done well, such as Hero Honda and Sun Pharmaceutical. Against this, we bought Bharti Airtel, one of the leading players in the local cellular market, as well as Bosch, a consumer goods manufacturer. We topped up holdings like ABB India, DLF and Infosys, on price weakness. Outlook We suspect the Indian market may have further to fall, given the ongoing global liquidity crisis and uncertainty because of the upcoming elections, even though valuations have fallen substantially. Nonetheless, the countrys economic fundamentals remain strong. They continue to be supported by strong domestic consumption, which is being fuelled by a growing and affluent professional middle class, low consumer debt and significant infrastructure spending. Regulators have also recognised the severity of the financial crisis and have cut the reserve ratio thrice in one week in mid-October. At the corporate level, earnings growth is likely to drop to single digits. The good news is that Indian companies have built strong balance sheets over the past few years and have the means to make acquisitions, whether it is of weaker rivals at home or abroad. For example, Tata Consultancy Services purchased US-based Citigroups back office unit for US$505m. So although equity markets in the next six months are likely to remain volatile, and the outlook for earnings growth appears dim, we believe our conservative, value-driven investment style stands the portfolio in good stead. The Sensex Indexs trailing price-earnings ratio has fallen from an unsustainable 27.9 to 13.3 over the year, giving us opportunities to buy quality stocks at attractive prices. In the long run, we are confident that this strategy will continue to produce superior results.
72
Aberdeen Global India Opportunities Fund
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Subscriptions receivable Receivable for investments sold Total assets Liabilities Payable for investments purchased Taxes and expenses payable Redemptions payable Total liabilities Net assets at the end of the year US$000 1,944,244 17,298 4,793 6,998 5 1,973,338
Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Bank interest Total income Expenses Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Mauritius Income Tax (note 12) Annual tax (note 4.9) Total expenses Net losses from investments US$000 37,404 100 37,504
31,284 579 5,582 1,844 386 660 1,103 871 42,309 (4,805) 389,417 (2,267) 382,345 (1,149,648) (123) (767,426)
1,343 4,582 3,931 9,856 1,963,482
Statement of Changes in Net Assets For the year from 1 October 2007 to 30 September 2008 Net assets at the beginning of the year Net losses from investments Realised gains on investments Currency exchange losses Increase in unrealised depreciation on investments Unrealised currency exchange losses Proceeds from shares issued Payments for shares redeemed Net equalisation received (note 10) Net assets at the end of the year US$000 2,779,282 (4,805) 389,417 (2,267) (1,149,648) (123) 2,449,910 (2,498,489) 205 1,963,482
Realised gains on investments Currency exchange losses Net realised gains Increase in unrealised depreciation on investments Unrealised currency exchange losses Net decrease in assets as a result of operations
Share Transactions For the year from 1 October 2007 to 30 September 2008 Shares outstanding at the beginning of the year Shares issued during the year Shares redeemed during the year Shares outstanding at the end of the year Net asset value per share A-2 18,553,809 6,279,963 (15,463,769) 9,370,003 58.58 D-2(GBP) 14,694,380 1,977,090 (11,245,073) 5,426,397 32.58 I-2 246,878 771,587 (930,920) 87,545 59.74
Z-2
200,349,734 (34,728,945) 165,620,789 6.59
73
Portfolio Statement
Consumer Discretionary - 8.58% Bosch Ltd 808,367 68,696 Hero Honda 5,310,000 99,732 168,428
3.50 5.08 8.58
Consumer Staples - 9.70% Godrej Consumer Products 14,269,165 34,352 Hindustan Lever 15,600,000 85,550 ITC Ltd 17,500,000 70,425 190,327
1.75 4.36 3.59 9.70
Financials - 21.61% Bank of Baroda 6,554,000 41,871 DLF 6,000,000 45,322 Housing Development Finance Corp 4,105,000 186,162 ICICI Bank 9,670,000 112,344 ING Vysya Bank 4,726,280 22,264 Jammu & Kashmir Bank 1,718,000 16,503 424,466
2.13 2.31 9.48 5.72 1.13 0.84 21.61
Health Care - 12.52% Aventis Pharma 1,043,576 17,939 GlaxoSmithKline Pharmaceuticals 3,228,116 82,021 Piramal Healthcare 9,209,946 65,983 Piramal Life 328,722 948 Sun Pharmaceutical 2,440,000 79,005 245,896
0.91 4.18 3.36 0.05 4.02 12.52
Industrials - 5.89% ABB India 4,377,377 75,341 Container Corporation of India 2,272,341 40,276 115,617
3.84 2.05 5.89
Information Technology - 22.57% CMC 960,000 8,906 Infosys Technologies 5,800,000 175,196 Mphasis Ltd 6,538,000 26,163 Satyam Computer Services 23,800,000 150,079 Tata Consultancy Services 5,870,000 82,972 443,316
0.45 8.92 1.33 7.64 4.23 22.57
Materials - 7.03% Asian Paints 1,800,000 46,064 Grasim Industries 2,111,300 76,854 ICI India 1,076,000 11,228 Paper Products 4,961,820 3,736 137,882
2.35 3.92 0.57 0.19 7.03
74
Telecommunication Services - 3.48% Bharti Airtel 4,048,336 68,371 Utilities - 7.64% GAIL 8,580,000 75,499 GAIL GDR 69,100 3,593 Gujarat Gas 6,128,000 33,619 Tata Power 1,910,000 37,230 Total investments Other net assets Total
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.
3.48
3.85 0.18 1.71 1.90 7.64 99.02 0.98 100.00
149,941 1,944,244 19,238 1,963,482
75
Japan Smaller Companies

Performance For the year ended 30 September 2008, the value of the Japan Smaller Companies - D Accumulation shares decreased by 35.2% compared to a decrease of 29.9% in the benchmark, the Russell Nomura Small Cap Index. Managers review The year under review saw Japanese equities fall sharply, as the US financial crisis hit major economies in Europe and took a toll on markets worldwide. When US lawmakers voted down the Treasurys first US$700bn bail-out plan (they eventually agreed on a revised version), markets plunged into chaos and a global credit contraction ensued, prompting the Bank of Japan to pump in some 25trillion into frozen credit markets. Domestic economic and political troubles, coupled with gathering global recession fears, further dampened investor sentiment. On the macroeconomic front, the economy shrunk in the second quarter of the year, after two preceding quarters of expansion which were led by brisk exports and capital investment. Rising oil and commodity prices as well as weakening exports to the US and Europe (Japans largest export markets), halted the six-year growth momentum. As the domestic outlook clouded, the Bank of Japan cut its growth forecast and kept the benchmark interest rate at a paltry 0.5%. Besides denting growth, high commodity prices (which have since fallen from their peaks) also pushed both consumer and producer prices to multi-year highs. Notably, wholesale inflation jumped to 7.2% but the consumer price index rose just 2.4%. Large companies pressured their suppliers small firms to slash prices. To keep their clients, many small enterprises had little option but to absorb the rising overheads. Their margins became increasingly squeezed as a result. In turn, they froze headcount and kept wages stagnant. Sluggish wage growth in a softening jobs market (small and medium-sized enterprises provide the bulk of employment) and rising inflation, which left households with lower disposable incomes, crimped domestic demand and compounded small firms woes. Their problems were aggravated by tightening credit as the financial maelstrom widened: small enterprises had difficulties raising funds. The domestic political situation heightened economic uncertainty. The wrangling between the ruling LDP and the oppositiondominated upper house led to the central bank being left without a governor for several weeks, after the opposition vetoed two LDP appointees to the job. Masaaki Shirakawa was eventually chosen, ending the standoff. Tensions came to the forefront again when prime minister Yasuo Fukuda, who had earlier reshuffled the cabinet and unveiled an economic stimulus package, quit after a few ineffectual months in office. Former foreign minister Taro Aso was ushered in as the new prime minister. He has since formed a new government (albeit a series of gaffes has already claimed one minister) and is reportedly mulling a bigger stimulus package.
Portfolio review The Fund underperformed the benchmark Russell Nomura Small Cap Index during the year under review. In portfolio activity, we introduced several new stocks with healthy growth prospects and interesting business models. These included regional bank Musashino Bank, building maintenance company Aeon Delight, sports shoemaker ASICS, sensor maker Optex, parking lot operator Park 24, medical equipment manufacturer Mani, medical testing equipment manufacturer Sysmex and specialty chemicals maker Japan Pure Chemical. Against this, we exited Bank of Nagoya, whose business prospects appeared limited in a highly competitive environment; as well as video rental chain Culture Convenience Club, Daihen and Meisei Industrial, engine parts manufacturer Daido Metal, commercial facilities designer Ask Planning Centre and entertainment centre operator Round One, because of their rather poor and uncertain outlook. Outlook At the time of writing, Japan looks to be heading into a recession. The chief concern is that Japans export-driven economy is now worryingly vulnerable to shaky export markets. The strengthening yen, largely a consequence of the unwinding of the carry trade, has also an indirect impact on smaller companies: more expensive exports mean large firms become less competitive, which in turn is likely to hurt their suppliers. Furthermore, nervousness in markets remains, as the impact of the unfinished financial crisis on economic growth is still unclear. The recent decline in commodity prices, however, is one short-term fillip for businesses. With these caveats, the coming months are likely to be challenging. Still, the countrys relatively solid fundamentals offer a reason for optimism. The economy may be slowing but Japan has no housing bubble. Its banks are sound (with relatively low exposure to subprime investments), having recovered from its own banking crisis in the 1990s. Companies have, in general, trimmed their debts, and the more agile ones are seizing opportunities (via several high-profile overseas acquisitions) from recent market developments. That said, smaller enterprises may fare worse than their larger counterparts: many will continue to find it hard to pass on cost increases to their large exporter customers. Further, the sector is also more dependent on domestic consumption, which remains sluggish. We believe that our focus on strong company fundamentals will prevail in the long run, and that our portfolio remains in good shape to weather difficulties ahead.
76
Aberdeen Global Japan Smaller Companies Fund
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Total assets Liabilities Taxes and expenses payable Redemptions payable Unrealised losses on forward foreign exchange contracts (note 2.6) Total liabilities Net assets at the end of the year JP000 3,899,113 41,867 34,087 3,975,067
Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Other income Total income Expenses Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Annual tax (note 4.9) Bank interest Total expenses Net losses from investments Realised losses on investments Currency exchange losses Realised losses on forward foreign exchange contracts Net realised losses Increase in unrealised depreciation on investments Unrealised currency exchange gains Decrease in unrealised appreciation on forward foreign exchange contracts Net decrease in assets as a result of operations JP000 85,921 1,184 87,105
8,380 2,348 107 10,835 3,964,232
76,139 5,109 1,035 3,331 777 2,720 2,337 964 92,412 (5,307) (331,413) (4,956) (1) (341,677) (1,800,383) 50
(107) (2,142,117)
Statement of Changes in Net Assets For the year from 1 October 2007 to 30 September 2008 JP000 Net assets at the beginning of the year 6,436,584 Net losses from investments (5,307) Realised losses on investments (331,413) Currency exchange losses (4,956) Realised losses on forward foreign exchange contracts (1) Increase in unrealised depreciation on investments (1,800,383) Unrealised currency exchange gains 50 Decrease in unrealised appreciation on forward foreign exchange contracts (107) Proceeds from shares issued 607,964 Payments for shares redeemed (938,199) Net assets at the end of the year
Share Transactions For the year from 1 October 2007 to 30 September 2008 Shares outstanding at the beginning of the year Shares issued during the year Shares redeemed during the year Shares outstanding at the end of the year Net asset value per share A-2 89,687 49,661 D-2(GBP) 8,249,830 269,559 I-2 1 849,741
(40,534) (1,498,311)
(1)
98,814 501.68
7,021,078 2.65
849,741 461.42
3,964,232
77
Portfolio Statement
Market value Description Quantity JP000
Banks - 11.75% Awa Bank 278,000 168,607 Hiroshima Bank * 307,000 117,888 Musashino Bank 21,800 65,509 Sapporo Hokuyo 220 114,180 466,184
4.25 2.97 1.65 2.88 11.75
Chemicals - 9.01% Japan Pure Chemical * 181 55,567 Kureha Corp 252,000 143,262 Mandom * 56,900 158,609 357,438
1.40 3.61 4.00 9.01
Construction - 3.09% Okumura Corp * 309,000 122,519 Electrical Appliances - 6.72% Optex Co 63,700 61,629 Roland DG Corp * 51,700 97,583 Sysmex Corp * 22,900 107,286 266,498
3.09
1.55 2.46 2.71 6.72
Electric Power & Gas - 2.47% Shizuoka Gas Co * 255,500 97,984 Information & Communication - 5.39% Intage * 79,800 124,688 Okinawa Cellular Telephone Co * 548 88,995 213,683
2.47
3.15 2.24 5.39
Land Transportation - 0.92% Seino Holdings Co * 74,000 36,556 Machinery - 11.88% Mani * 19,300 112,326 Nabtesco 126,000 105,273 New Tachikawa Aircraft Co 40,700 165,446 Teikoku Piston Ring Co * 164,800 87,756 470,801
0.92
2.83 2.66 4.18 2.21 11.88
Other Financing Business - 1.13% Japan Asia Investment Co 221,000 44,642 Real Estate - 6.06% Park 24 * 142,000 82,999 Sankei Building * 339,300 156,926 239,925
1.13
2.09 3.97 6.06
78
Retail Trade - 12.81% ASICS * 119,000 96,985 Maxvalu Tokai * 107,900 132,987 Parco * 134,300 148,200 San-A Co 38,900 129,148 507,320
2.45 3.36 3.74 3.26 12.81
Services - 17.86% Aeon Delight Co 40,300 98,231 Heian Ceremony Service Co 322,900 145,951 Marusei Co 50,000 22,000 Nissin Healthcare * 126,000 135,765 Resort Trust * 87,820 86,591 USS Co 21,950 148,382 Yomiuri Land Co * 226,000 71,303 708,223
2.48 3.68 0.55 3.43 2.18 3.74 1.80 17.86
Transportation Equipment - 9.26% FCC Co * 108,200 149,641 Musashi Seimitsu Industry Co 66,900 122,996 Showa Aircraft Industry 163,000 94,703 367,340
3.77 3.10 2.39 9.26
Transferable securities
3,899,113
98.35
Forward foreign exchange contracts - Nil

Buy Sell Settlement Date Buy Sell Amount Amount Unrealised gains/ (losses) JP000 Percentage of total net assets %
GBP
JPY
02/10/08
26,637
5,149,174
(107) (107) 3,899,006 65,226 3,964,232
98.35 1.65 100.00
Unrealised losses on forward foreign exchange contracts Total investments Other net assets Total
79
Japanese Equity
Performance For the year ended 30 September 2008, the value of the Japanese Equity - A Accumulation shares decreased by 35.3% compared to a decrease of 31.4% in the benchmark, the Topix Index. Managers review Japanese equities fell steeply over the year under review, as the sub-prime lending crisis became a global financial catastrophe, bringing economic growth almost to a halt. Markets worldwide faced remarkable volatility as credit defaults triggered a wave of highprofile collapses on Wall Street. This led to unprecedented public intervention, both to secure the financial system and to rescue individual firms (to prevent further collapses). While the rescue efforts were led by the US Treasury, with the worst problems in the US, its US$700bn bailout was at first rejected by Congress, and it was only with coordinated efforts by central banks to cut interest rates and boost liquidity that a measure of calm was achieved internationally. In Japan, the central bank injected some 25trillion into its financial system, but the worsening global slowdown, coupled with domestic economic malaise and the lack of clear political leadership, compounded the market uncertainty. Although Japans financial institutions were largely unscathed they have been too busy rebuilding balance sheets since the last crisis to have ventured into derivative trading the starting point for the economy was already weak. True, the end of 2007 saw a sixth year of expansion, albeit one that had rested on export growth, not spending at home. As US demand started to fade, the economy then took a turn for the worse early in the year and contracted in the second quarter. This reflected soaring oil and commodity prices, which pushed inflation to a decade high (although excluding energy costs, core consumer prices rose minimally). The Bank of Japan downgraded its economic outlook and, left with little room to manoeuvre its monetary policy, kept its benchmark lending rate unchanged. At the time of writing, Japan is on the verge of a recession. Unsurprisingly, the dismal economic picture fuelled pessimism among companies and households. This translated into muted corporate investment and consumption. Companies, in a bid to remain competitive amid rising costs, were reluctant to employ or increase wages. Correspondingly, the weakening job market and flat income growth, coupled with the return of inflation (after years of being caught in a deflationary spiral), curtailed consumer spending. Exporters, which faced sharp declines in shipments, reduced output and capital spending, while small and medium-sized enterprises were snared by rising costs. Confronted with a flagging economy, the government rolled out a 11.7trillion stimulus package, which was soon dismissed as ineffectual.
Meanwhile, the gridlock in parliament led to the ruling LDPs choice to become central bank governor being vetoed by the oppositioncontrolled upper house, leaving the post vacant for weeks. This, however, was merely a prelude to the abrupt resignation of prime minister Yasuo Fukuda, after less than a year in office. But his successor, former foreign minister Taro Aso, has fared as poorly. After unveiling a new cabinet, the fledgling administration suffered a setback when the transport minister was forced to resign four days later. Portfolio review The Fund fell by 35.3% over the year under review, underperforming the benchmark Topix Index, which declined by 31.4%. Positive asset allocation was outweighed by negative stock selection. In asset allocation, our underweight to basic materials and overweight to financials contributed most to performance, while our lack of exposure to utilities and overweight to technology detracted from relative return. In stock selection, our holdings in the industrials sector boosted performance, but those in financials and consumer services cost the Fund. In portfolio activity, proven business models and healthy balance sheets were the common theme among our three new holdings: regional lender Bank of Yokohama, robot manufacturer Fanuc and sports shoemaker ASICS. We also added to Mitsubishi Estate and Nabtesco on valuation grounds. Against this, we sold TV broadcaster Nippon Television as conditions in the domestic TV advertising market remain challenging. High exposure to consumer-related bad loans also saw us exit banks Mizuho and Mitsubishi UFJ. Outlook Battered economies in the US and Europe Japans largest export markets bode ill for Japans exports. Shipments to China and other emerging markets have risen, but with a global downturn, exports to these regions will decline as well. There is also growing concern that the recent dramatic surge in the yen will present considerable headwinds: it increases the price of Japanese exports, making them less competitive overseas, and diminishes the value of overseas earnings. That said, the outlook for Japan looks upbeat compared to other developed countries. The economy is slowing but Japan has a relatively healthy banking system. Companies have, in general, cleaned up their balance sheets significantly, and the more nimble ones are finding opportunities. Indeed, some large financial institutions have bought into distressed Western banks, reviving memories of trophy acquisitions two decades ago. This time, they are expected to integrate better.
80
Aberdeen Global Japanese Equity Fund
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Subscriptions receivable Total assets Liabilities Taxes and expenses payable Redemptions payable Total liabilities Net assets at the end of the year JP000 10,207,753 45,015 96,817 293 10,349,878
Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Other income Total income Expenses Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Distribution fee (note 4.3) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Annual tax (note 4.9) Bank interest Total expenses Net gains from investments Realised losses on investments Currency exchange losses Net realised losses Increase in unrealised depreciation on investments Unrealised currency exchange losses Net decrease in assets as a result of operations JP000 240,557 242 240,799
21,623 4,477 26,100 10,323,778
196,609 5,984 2,613 157 13,282 1,973 5,230 6,329 1,113 233,290 7,509 (864,462) (19,269) (876,222) (4,722,097) (144) (5,598,463)
Statement of Changes in Net Assets For the year from 1 October 2007 to 30 September 2008 Net assets at the beginning of the year Net gains from investments Realised losses on investments Currency exchange losses Increase in unrealised depreciation on investments Unrealised currency exchange losses Proceeds from shares issued Payments for shares redeemed Net equalisation received (note 10) Net assets at the end of the year JP000 16,487,626 7,509 (864,462) (19,269) (4,722,097) (144) 2,919,953 (3,485,904) 566 10,323,778
Share Transactions For the year from 1 October 2007 to 30 September 2008 Shares outstanding at the beginning of the year Shares issued during the year Shares redeemed during the year Shares outstanding at the end of the year Net asset value per share A-2 2,817,926 B-2 D-2(GBP) 102,720 42,208,990
2,043,157
- 7,911,924
(2,939,244)
(56,168) (8,358,062)
1,921,839 236.25
46,552 41,762,852 201.89 1.25
81
Portfolio Statement
Banks - 13.39% Bank of Kyoto 355,000 373,992 Bank of Yokohama 653,000 328,459 Hiroshima Bank 924,000 354,816 Sapporo Hokuyo 627 325,413 1,382,680
3.62 3.18 3.44 3.15 13.39
Chemicals - 7.27% Mandom 127,700 355,964 Shin-Etsu Chemical Co * 80,400 394,362 750,326
3.45 3.82 7.27
Construction - 7.67% Daito Trust Construction 65,000 252,200 Okumura Corp * 493,000 195,475 Sekisui House 360,000 344,340 792,015
2.44 1.89 3.34 7.67
Electrical Appliances - 20.54% Canon 119,000 456,365 FANUC 47,500 367,888 Keyence Corp 16,800 349,776 Omron Corp 234,100 377,720 Ricoh 213,000 308,957 Rohm 45,500 260,033 2,120,739
4.42 3.56 3.39 3.66 2.99 2.52 20.54
Machinery - 6.29% Amada Co * 690,000 392,265 Nabtesco 291,000 243,131 Takuma Co * 50,000 13,200 648,596
3.80 2.36 0.13 6.29
Other Financing Business - 2.81% Orix Corp 23,040 289,613 Pharmaceuticals - 9.23% Astellas Pharma 94,700 414,312 Takeda Pharmaceuticals * 102,400 538,624 952,936
2.81
4.01 5.22 9.23
Real Estate - 4.51% Mitsubishi Estate 231,000 466,042 Retail Trade - 8.90% ASICS 180,000 146,700 Parco 397,400 438,531 Seven & I Holdings 110,920 333,037 918,268
4.51
1.42 4.25 3.23 8.90
82
Transportation Equipment - 18.27% Aisin Seiki Co 126,900 321,057 FCC Co 251,800 348,239 Honda Motor Co 143,900 446,090 Toyota Motor Corp 101,000 443,390 Yamaha Motor Co 230,900 327,762 Total investments Other net assets Total
3.11 3.37 4.33 4.29 3.17 18.27 98.88 1.12 100.00
1,886,538 10,207,753 116,025 10,323,778
83
Responsible World Equity

Commencement of Fund The Fund was launched in the year ended 30 September 2008. The first net asset value (NAV) calculation for the Fund was on 2 November 2007. Performance For the period 2 November 2007 to 30 September 2008, the value of the Responsible World Equity - A Accumulation shares decreased by 24.5% compared to a decrease of 27.8% in the benchmark, the MSCI World Index. Managers review Global equities shed 28% during the period under review, led by heavy losses in the financials and materials sectors. Prior to the period, markets had reached record highs after enjoying five years of price gains. The upward trajectory ended in October with the emergence of major sub-prime related losses and the subsequent loss of confidence. This culminated with JP Morgans acquisition of Wall Streets fifth-largest bank Bear Stearns in a government-backed deal. At this early stage though, many investors and commentators believed these problems would be contained in the banking sector. Markets rose 13% between mid-March and mid-May. By July, it was clear that the financial malaise was going to have broad-reaching consequences. The rescue of Fannie Mae and Freddie Mac erased all gains made during the two-month rally. In September, the US Treasury chose not to save Lehman Brothers. As fears mounted over the safety of money market funds, investors began withdrawing money. Financial institutions dependent on this source of short-term liquidity suddenly found themselves stranded, sparking off a wave of bank rescues in Europe. The US government cobbled together a US$700bn plan to buy toxic assets, but this was only approved the second time round. The broad decline in global markets has followed the deterioration in economic growth. The US and UK housing market bubbles have all but burst. In the Eurozones core economies of Germany, France and Italy, GDP growth has contracted. As for the emerging economies of Asia, Latin America and eastern Europe, the pace of expansion has slowed considerably, prompting downgrades to annual growth forecasts. If it is any consolation at all, inflation, which had been a major threat earlier, has receded. Over the period, the price of oil, having doubled to US$145 per barrel in March, has fallen to around US$70 today, reflecting mounting growth concerns. As price pressures faded, this allowed China, for example, to lower its key interest rate for the first time in six years. In October, the US Federal Reserve, European Central Bank, Bank of England, and the central banks of Canada, Sweden and Switzerland made coordinated emergency interest rate cuts.
Portfolio review The Fund fell by 24.5%, outperforming the benchmark, which declined by 27.8%. Our thorough SRI screening of the new investments highlighted that they all demonstrate strong and positive practices. For example, with a growing global footprint, Mapfre has implemented a robust social responsibility programme, incorporating an extensive set of human rights and labour policies; in accordance with the ILO and the UN Declaration of Human Rights. In Japan, Takeda actively monitors its environmental impact and the health and safety of its workforce. The group plans to further enhance its CSR reporting and overall levels of transparency. Since the Funds launch last November, we have bought Japans Bank of Yokohama and Takeda Pharmaceuticals; Singapore real estate operator City Developments; Australian insurer QBE; UK teleco BT Group and retailer Marks & Spencer; Swiss pharmaceutical giant Roche; US-based Sysco, Dow Chemicals, Aflac, and Procter & Gamble; German retailer Metro; and French industrial Schneider Electric. Against this, we sold Japans Mitsubishi UFJ and Bank of Kyoto; French car manufacturer Peugeot; US-based Kraft Foods, Pepsico, Wellpoint and Willis Group; and UK oil services firm Wood Group. Outlook Recession is spreading across the developed world. In the US, weakness is very evident in consumption, which makes up 70% of output. The housing markets collapse has hit jobs, retail sales and consumer confidence. As for Europe, hopes that Germanys exporters would keep the continent afloat have been dashed. Business sentiment reflects falling orders, while domestic spending has stayed muted. Meanwhile, the debt-driven countries on Europes peripheral, including the UK, Ireland and Spain, are struggling. The emerging markets, especially Asia, should fare better. Backed by massive reserves, countries have the means to spend their way out of recession. Additionally, Chinas still closed banking system may protect it from the worst of the credit crisis. However, inflation remains a problem, especially in India, where it remains at uncomfortably high levels despite the recent fall in energy prices. What this means is that equities are likely to remain volatile. While we are aware of negative newsflow, our strategy as bottom-up stock pickers is to remain focused on the non-headline grabbing fundamentals of our investments. We continue to find wellmanaged companies which generate significant levels of cash, spending that cash wisely in value-accretive projects or returning it to shareholders to make more efficient use of their balance sheet.
84
Aberdeen Global Responsible World Equity Fund
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Receivable for investments sold Other assets Total assets Liabilities Payable for investments purchased Taxes and expenses payable Total liabilities Net assets at the end of the period US$000 59,872 1,268 191 124 31 61,486
Statement of Operations For the period from 2 November 2007 to 30 September 2008 Income Income from investments Other income Bank interest Total income Expenses Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Annual tax (note 4.9) Total expenses Net gains from investments Realised losses on investments Currency exchange losses Net realised gains Unrealised depreciation on investments Unrealised currency exchange losses Net decrease in assets as a result of operations US$000 1,775 21 72 1,868
189 47 236 61,250
46 57 14 39 9 29 8 202 1,666 (812) (150) 704 (19,615) (3) (18,914)
Statement of Changes in Net Assets For the period from 2 November 2007 to 30 September 2008 Net assets at the beginning of the period Net gains from investments Realised losses on investments Currency exchange losses Unrealised depreciation on investments Unrealised currency exchange losses Proceeds from shares issued Payments for shares redeemed Net equalisation received (note 10) Net assets at the end of the period US$000 1,666 (812) (150) (19,615) (3) 80,675 (516) 5 61,250
Share Transactions For the period from 2 November 2007 to 30 September 2008 A-2 D-2(GBP) Shares outstanding at the beginning of the period - - Shares issued during the period Shares redeemed during the period Shares outstanding at the end of the period Net asset value per share I-2 - Z-2 -
611,386
7,629,247
(61,656)
(1)
549,730
7,629,247
7.55
7.45
7.48

Aberdeen Global Responsible World Equity Fund 85
Portfolio Statement
Argentina - 2.33% Tenaris ADR 41,300 1,426 Australia - 1.71% QBE Insurance Group 49,200 1,046 Austria - 0.78% Flughafen Wien 7,800 479 Belgium - 2.16% Belgacom 35,700 1,325 Brazil - 3.08% Petroleo Brasileiro (Pref) ADR 57,000 1,888 Canada - 1.94% Canadian National Railway 24,700 1,189 France - 0.77% Schneider Electric 5,537 472 Germany - 11.29% Adidas * 22,400 1,207 Commerzbank 54,800 830 Deutsche Post 58,000 1,218 Deutsche Postbank 28,500 1,116 E.ON 39,300 1,940 Metro 11,600 600 6,911
2.33
1.71
0.78
2.16
3.08
1.94
0.77
1.97 1.36 1.99 1.82 3.17 0.98 11.29
Hong Kong - 3.68% CLP Holdings 81,500 654 Swire Pacific A 183,500 1,599 2,253
1.07 2.61 3.68
India - 2.41% ICICI Bank ADR 37,600 821 Satyam Computer Services ADR 44,700 658 1,479
1.34 1.07 2.41
Italy - 4.51% ENI 39,600 1,044 Intesa Sanpaolo 313,400 1,721 2,765
1.70 2.81 4.51
86
Japan - 11.31% Amada 114,000 616 Bank of Yokohama 135,000 646 Canon 43,900 1,601 Daito Trust Construction 26,900 992 Orix 7,100 849 Takeda Pharmaceuticals 20,100 1,005 Toyota Motor Corp 29,200 1,219 6,928
1.01 1.05 2.61 1.62 1.39 1.64 1.99 11.31
Mexico - 1.38% Grupo Aeroportuario del Sureste ADS 17,400 847 Netherlands - 1.69% Philips Electronics * 38,200 1,038 Portugal - 1.15% Portugal Telecom 69,522 702 Singapore - 2.47% City Developments 120,000 738 Oversea-Chinese Banking Corp 155,000 777 1,515
1.38
1.69
1.15
1.20 1.27 2.47
South Korea - 2.89% Samsung Electronics GDR 11,600 1,772 Spain - 1.42% Mapfre 208,800 869 Sweden - 3.56% Ericsson 104,100 987 Nordea 96,300 1,194 2,181
2.89
1.42
1.61 1.95 3.56
Switzerland - 5.42% Roche Holdings 6,300 990 Zurich Financial Services 8,600 2,329 3,319
1.62 3.80 5.42
Taiwan - 3.27% TSMC ADS 230,112 2,002
3.27
87
United Kingdom - 11.66% AstraZeneca 28,300 1,246 BT Group 156,300 444 Centrica 161,000 899 Marks & Spencer * 149,600 573 Morrison (W) 191,300 871 Premier Foods 416,400 569 Vodafone 557,400 1,211 Weir Group 41,166 450 Wolseley * 117,400 881 7,144
2.03 0.72 1.47 0.94 1.42 0.93 1.98 0.73 1.44 11.66
United States - 16.37% Aflac 12,200 625 Dow Chemical 20,300 628 EOG Resources 11,400 967 Intel 70,200 1,212 Johnson & Johnson 28,000 1,873 Procter & Gamble 11,500 768 Quest Diagnostics 17,500 879 Sysco 24,300 758 Wyeth 40,100 1,467 Zimmer Holdings 13,600 840 10,017 Fair value adjustment (note 2.2) 305 Total investments Other net assets Total
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 period end.
1.02 1.03 1.58 1.98 3.06 1.25 1.44 1.24 2.40 1.37 16.37 0.50 97.75 2.25 100.00
59,872 1,378 61,250
88
Sterling Corporate Bond

Performance For the year ended 30 September 2008, the value of the Sterling Corporate Bond D Income shares decreased by 4.6% on a total return basis compared to a decrease of 3.2% in the benchmark, the iBoxx Sterling Non-Gilts (all maturities) Index. Change in Benchmark In order to better align the objectives and holdings within the Fund, from 31 March 2008 the Fund has changed its benchmark to the iBoxx Sterling Non-Gilts (all maturities) Index. The new index will provide a more representative investment universe for the Fund, and is therefore more suitable to measure performance against. Managers review A year ago the markets were seemingly recovering from the onslaught of the credit crunch which had been developing over the summer months, a year on we can look back and now know that far worse was to come. It has been an increasingly turbulent and volatile time for risk assets, culminating in catastrophic consequences in the last quarter, or more pointedly in September 2008. Government bond yields were driven lower globally, as investors hastily reduced risk. Central banks were forced to take drastic action having seemingly, for the entire year, been reluctant to acknowledge the carnage in markets the credit crunch was continuing to inflict. Looking back to the run into 2007 year end, inter bank lending rates were being squeezed higher, banks were not effectively lending fluidly to other banks, borrower selection had become key and as such problems of short term financing were problematic for the lesser capitalised or smaller borrowers. Measures had been introduced in December 2007 to help reduce some of the pressures building in the short term money market and effectively encourage the banks to continue to lend to one another, this in the long term has had little effect throughout 2008 and short term funding rates have remained painfully high, peaking at around 178 basis points (bps) above base rates and freezing the wholesale money markets. Interest rates have been reduced during the year from 5.75% to 5%, with an emergency co-ordinated cut following the dire performance of markets during September 2008. UK base rates stand now at 4.5%, with the expectations that there will be further cuts to follow. Fears are mounting over a global recession which may be deeper and longer lasting than experienced in the past. Central banks have swung from fighting inflation, which in the UK is at a high of 5.2%, to desperately trying to stave off recession. Various rescue packages are being introduced to shore up the financial sector, and help markets repair themselves. Gilt Yields, as a consequence, have fallen substantially, particularly in the short to medium sectors, two year yields are lower by 106bps at 4.01%, ten year yields are 56bps lower at 4.45%, thirty years are just 20bps lower at 4.5% being driven by inflationary expectations rather than interest rate movements. Investors have used short dated gilts as a safe haven or at least as a guarantee that you will have full capital protection. Unprecedented events have seen non government bond spreads hit historical highs; the average spread above gilts is now 250bps, having been as low as 65bps. The worst of the spread widening has been within the financial sector; although other sectors have been dragged higher, the move has not been as savage. The continued flow of bad news from the US mortgage market, along with the realisation that banks globally were also holding such bad assets, raised fears that the banks were under capitalised and those financial institutions that had quite large exposures were finding it increasingly difficult to raise capital.
Aberdeen Global Sterling Corporate Bond Fund
This has been ongoing throughout the year and as conditions in the US have worsened, so has the refinancing of financial debt, not only for banks and other corporate institutions but also the consumer. This has been a wide spread global issue and the consequences of which have been quite devastating to world economies. In the UK the first casualty to succumb to financial difficulties was Northern Rock, which was subsequently rescued by the Government. However there have since been a number of high profile casualties here and around the world, Bear Stearns, Lehman Brothers, AIG, and Bradford and Bingley to name a few, some have been luckier than others in receiving support from Government or hastily finding buyers of their business. The shape of financial markets has changed and only time will tell as to whether the damage wrought can be repaired. The resultant effect has been a credit market that has been gridlocked for most of the entire year. There has been little to no activity as investors have ceased investing in anything other than government assets. There has been very limited new issuance which has had to come extremely well priced to attract even the riskiest of investors. Some of the yields are now looking extremely attractive, but with the economic cycle very much in a recessionary environment, there is likely to be some more pain to come. Portfolio review After reducing the holdings in subordinated financial bonds during the early part of 2007, and the subsequent flight to quality away for higher yielding riskier assets as the credit crunch escalated, this short position contributed positively towards performance during the first part of the year. The weighting towards secured debt and high rated supra-nationals bonds was also a positive factor. As corporate bonds spreads widened, the Fund started to increase its exposure to financial bonds, in particular higher quality banks at the short end of the market with attractive yields. However, as the financial crisis deepened into September 2008, these bonds substantially underperformed industrial and Sovereign & Supranationals and therefore detracted from performance. In particular, the Fund had exposure to Bradford & Bingley which was nationalised by the UK government. Unlike the nationalisation of Northern Rock which saw all bonds benefit from a government guarantee, the subordinated bonds did not and fell substantially in price. The Fund continues to have a high weighting towards single A and BBB rated issuers as well as secured debentures which have performed well as credit spreads have widened. The short duration position of the Fund to benchmark over the year would have positively contributed to performance, as the long end of the UK gilt curve underperformed. In general, trading activity has been muted due to the illiquid market conditions. Outlook As the outcome of Central Bank action needs time to take effect, the markets have turned to the other worrying factor being the state of the global economy. Economic data is continuing to deteriorate and as such further interest rates cuts are being anticipated.In the UK alone at least a further 1% is priced which would take rates to 3.5%. Continuing housing market declines and anticipated higher levels of unemployment along with still high inflation, will all have a negative impact on the consumer. Credit fundamentals will impact quite negatively on corporates, as a weakening economy and high input costs take full effect. The financial sector is likely to become more regulated going forward and as such, less profitable post the credit crisis. The outlook remains quite negative for the next 12 months.
89
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Receivable for investments sold Total assets Liabilities Taxes and expenses payable Other liabilities Total liabilities Net assets at the end of the year 35 16 51 12,357 000 11,601 392 396 19 12,408
Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Bank interest Total income Expenses Gross Management fee Less: Management fee cross holdings Net Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Annual tax (note 4.9) Total expenses Net gains from investments Realised losses on investments Net realised gains Increase in unrealised depreciation on investments Net decrease in assets as a result of operations 134 (1) 133 17 2 22 2 21 18 215 613 (210) 403 (985) (582) 000 805 23 828
Statement of Changes in Net Assets For the year from 1 October 2007 to 30 September 2008 Net assets at the beginning of the year Net gains from investments Realised losses on investments Increase in unrealised depreciation on investments Proceeds from shares issued Payments for shares redeemed Net equalisation paid (note 10) Dividends paid (note 5) Net assets at the end of the year 000 13,740 613 (210) (985) 2,744 (2,932) (3) (610) 12,357
Share Transactions For the year from 1 October 2007 to 30 September 2008 Shares outstanding at the beginning of the year Shares issued during the year Shares redeemed during the year Shares outstanding at the end of the year Net asset value per share D-1 13,646,292 2,797,386 (2,991,858) 13,451,820 0.9186
90
Portfolio Statement
Security
Coupon (%)
Maturity
Nominal
Market Value 000
UK Treasury Stock - 3.83% UK Treasury UK Treasury
4.25 4.25
07/06/32 07/12/27
250,000 250,000
236 237 473
1.91 1.92 3.83
Sterling Denominated Bonds - 90.05% Australia - 2.41% AMP UK Finance + Austria - 2.05% Oesterreich Postsparkasse Canada - 1.18% Finning International Germany - 1.78% Deutsche Telekom Ireland - 2.79% Anglo Irish Bank Kilroot Electric Mutual Securitisation
7.125
06/08/09
300,000
298
2.41
6.125
20/10/14
244,000
253
2.05
5.625
30/05/13
150,000
146
1.18
7.125
26/09/12
218,000
220
1.78
5.25 9.50 7.3916
31/12/10 30/09/12
200,000 140,367 79,127
121 145 79 345
0.98 1.17 0.64 2.79
Italy - 1.16% Assicurazioni Generali Parmalat Capital Finance +
6.269 9.375
16/06/26 02/12/17
200,000 14,664
143 143
1.16 1.16
Luxemburg - 0.89% European Investment Bank Netherlands - 6.05% Bank Voor Nederlandse Gemeenten Fixed-Linked Finance Harsco Finance Neder Waterschapsbank
5.625
07/06/32
100,000
110
0.89
5.75 7.50 7.25 5.375
18/01/19 01/08/25 27/10/10 07/06/32
300,000 211,000 169,000 50,000
314 209 173 52 748
2.54 1.69 1.40 0.42 6.05
Switzerland - 0.58% Credit Suisse Group Financial 6.875 07/06/17 88,000 72 0.58
91
Security
Coupon (%)
Maturity
Nominal
Market Value 000
United Kingdom - 66.00% Anglian Water Service Anglian Water Service Anglo American Capital Annington Finance Argon Capital Aviva BAA Funding Barclays Barclays BLD Property Holdings BL Universal Bradford & Bingley Britannia Britannia Broadgate Coventry Building Society Derbyshire Building Society Derbyshire Building Society Dignity Finance Dunedin Income Growth Edinburgh Investment Trust Edinburgh Investment Trust Deb Stock Egg Banking Enterprise Inns Eskmuir Properties Fuller Smith & Turner Greycoat + Ladbrokes Group Finance LCR Finance Linde Finance Lloyds TSB Bank Mid-Sussex Water Mid-Sussex Water Mitchells & Butlers MMO2 Monks IT Morgan Stanley Nationwide Network Rail Northern Gas Northern Rock Northern Rock Peel Holdings Peel South East Punch Taverns Finance Punch Taverns Finance Scottish Investment Trust Skipton Building Society Spirit Issuer Sutton Bridge Financing Thistle Hotels THPA Finance
5.50 7.882 6.875 FRN 8.162 6.125 5.85 6.00 6.75 6.125 6.75 5.625 5.75 5.875 FRN 5.25 5.875 6.00 6.31 7.875 11.50 7.75 7.50 6.00 7.875 6.785 9.50 7.125 4.50 6.50 5.125 10.00 12.00 FRN 7.625 11.00 7.50 5.769 4.75 4.875 9.375 10.375 9.875 11.625 7.274 FRN 5.75 5.50 FRN 8.625 7.875 8.241
10/10/40 30/07/37 01/05/18 10/01/23 05/10/12 29/09/22 27/11/15 15/12/17 16/01/23 30/09/14 31/03/11 20/12/13 02/12/24 28/03/33 05/10/23 08/11/15 17/12/15 15/12/16 31/12/23 30/04/19 30/06/14 30/09/22 29/05/49 03/02/14 24/02/20 30/04/28 30/09/03 11/07/12 07/12/28 29/01/16 09/12/16 30/06/17 31/03/10 15/12/30 25/01/12 01/06/12 11/04/11 06/02/26 22/01/24 30/06/27 17/10/21 25/03/18 30/04/11 30/04/18 15/04/22 30/06/35 17/04/30 12/12/13 28/12/31 30/06/22 20/06/22 15/03/28
109,000 109,000 100,000 76,857 300,000 140,000 218,000 220,000 100,000 187,987 117,000 178,000 211,000 50,000 124,775 100,000 153,000 230,000 95,093 114,487 200,000 80,000 177,000 258,000 200,000 200,000 140,000 161,000 250,000 300,000 236,000 200,000 150,000 250,000 88,000 225,000 100,000 50,000 300,000 50,000 100,000 200,000 318,945 31,760 220,000 209,000 129,000 293,000 109,000 77,341 131,980 109,000
101 114 96 74 261 100 203 132 90 187 118 140 30 90 95 147 181 89 131 258 93 138 218 224 206 152 238 293 185 243 166 200 92 266 80 33 292 40 93 185 347 43 228 146 124 292 76 84 136 99
0.82 0.92 0.78 0.60 2.11 0.81 1.64 1.07 0.73 1.51 0.95 1.13 0.24 0.73 0.77 1.19 1.46 0.72 1.06 2.09 0.75 1.12 1.76 1.81 1.67 1.23 1.93 2.37 1.50 1.97 1.34 1.62 0.74 2.15 0.65 0.27 2.37 0.32 0.75 1.50 2.81 0.35 1.85 1.18 1.00 2.37 0.62 0.68 1.10 0.80
92
Security
Coupon (%)
Maturity
Nominal
Market Value 000
Trustco Finance Wessex Water West Bromwich Building Society Wolverhampton & Dudley Brewery
11.50 5.875 6.15 5.1576
22/02/16 30/03/09 05/04/21 15/07/19
50,000 103,000 268,000 241,000
68 103 145 190 8,155
0.55 0.83 1.17 1.54 66.00
United States - 5.16% ASIF II New York Global Funding Pacific Life Funding Travelers Ins Co
5.625 4.50 5.125 6.125
01/02/12 17/01/13 20/01/15 23/02/11
218,000 150,000 218,000 117,000
180 140 202 116 638 11,128 11,601 756 12,357
1.46 1.13 1.63 0.94 5.16 90.05 93.88 6.12 100.00
Total Sterling Denominated Bonds Total investments Other net assets Total
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. + Unlisted/Unquoted transferable security. Managed by subsidiaries of Aberdeen Asset Management PLC.
93
Sterling Financials Bond

Performance For the year ended 30 September 2008, the value of the Sterling Financials Bond - A Accumulation shares increased by 1.3% compared to a decrease of 1.8% in the benchmark, the iBoxx Sterling Corporate Financials 1 - 5 years Index. Change in Benchmark In order to better align the objectives and the holdings within the Fund, from 31 March 2008 the Fund has changed its benchmark to the iBoxx Sterling Corporate Financials 1 - 5 years Index. The new index will provide a more representative investment universe for the Fund, and is therefore more suitable to measure performance against. Managers review A year ago the markets were seemingly recovering from the onslaught of the credit crunch which had been developing over the summer months, a year on we can look back and now know that far worse was to come. It has been an increasingly turbulent and volatile time for risk assets, culminating in catastrophic consequences in the last quarter, or more pointedly in September 2008. Government bond yields were driven lower globally, as investors hastily reduced risk. Central banks were forced to take drastic action having seemingly, for the entire year, been reluctant to acknowledge the carnage in markets the credit crunch was continuing to inflict. Looking back to the run into 2007 year end, inter bank lending rates were being squeezed higher, banks were not effectively lending fluidly to other banks, borrower selection had become key and as such problems of short term financing were problematic for the lesser capitalised or smaller borrowers. Measures had been introduced in December 2007 to help reduce some of the pressures building in the short term money market and effectively encourage the banks to continue to lend to one another, this in the long term has had little effect throughout 2008 and short term funding rates have remained painfully high, peaking at around 178 basis points (bps) above base rates and freezing the wholesale money markets. Interest rates have been reduced during the year from 5.75% to 5%, with an emergency co-ordinated cut following the dire performance of markets during September 2008. UK base rates stand now at 4.5%, with the expectations that there will be further cuts to follow. Fears are mounting over a global recession which may be deeper and longer lasting than experienced in the past. Central banks have swung from fighting inflation, which in the UK is at a high of 5.2%, to desperately trying to stave off recession. Various rescue packages are being introduced to shore up the financial sector, and help markets repair themselves. Gilt Yields, as a consequence, have fallen substantially, particularly in the short to medium sectors, two year yields are lower by 106bps at 4.01%, ten year yields are 56bps lower at 4.45%, thirty year are just 20bps lower at 4.5% being driven by inflationary expectations rather than interest rate movements. Investors have used short dated gilts as a safe haven or at least as a guarantee that you will have full capital protection. Unprecedented events have seen non government bond spreads hit historical highs; the average spread above gilts is now 250bps, having been as low as 65bps. The worst of the spread widening has been within the financial sector; although other sectors have been dragged higher, the move has not been as savage. The continued
flow of bad news from the US mortgage market, along with the realisation that banks globally were also holding such bad assets, raised fears that the banks were under capitalised and those financial institutions that had quite large exposures were finding it increasingly difficult to raise capital. This has been ongoing throughout the year and as conditions in the US have worsened, so has the refinancing of financial debt, not only for banks and other corporate institutions but also the consumer. This has been a wide spread global issue and the consequences of which have been quite devastating to world economies. In the UK the first casualty to succumb to financial difficulties was Northern Rock, which was subsequently rescued by the Government. However there have since been a number of high profile casualties here and around the world, Bear Stearns, Lehman Brothers, AIG, and Bradford and Bingley to name a few, some have been luckier than others in receiving support from Government or hastily finding buyers of their business. The shape of financial markets has changed and only time will tell as to whether the damage wrought can be repaired. The resultant effect has been a credit market that has been gridlocked for most of the entire year. There has been little to no activity as investors have ceased investing in anything other than government assets. There has been very limited new issuance which has had to come extremely well priced to attract even the riskiest of investors. Some of the yields are now looking extremely attractive, but with the economic cycle very much in a recessionary environment, there is likely to be some more pain to come. Portfolio review Trading activity within the Fund remained muted over the period as volatility remained high in the financial sector. The Fund had redemptions in Eurohypo 6.375% 04/02/2008, a covered bond and Allstates Life Funding 6.3% 18/07/2008. These monies were reinvested into a short dated UK gilt and into Abbey National 7.125% 20/06/2011, with an attractive yield. A switch was also made in Floating Rate Notes with similar maturities, from Santander into Bank of America for a yield pickup. The average rating within the Fund is AA. The Funds exposure is mainly to senior financial debt, which has fared better than subordinated debt and will have had a positive effect on performance relative to the benchmark. However, the collapse of Lehman Brothers has resulted in a loss of 215bps arising from the Funds counterparty exposure. Outlook As the outcome of Central Bank action needs time to take effect, the markets have turned to the other worrying factor being the state of the global economy. Economic data is continuing to deteriorate and as such further interest rates cuts are being anticipated. In the UK alone at least a further 1% is priced which would take rates to 3.5%. Continuing housing market declines and anticipated higher levels of unemployment along with still high inflation, will all have a negative impact on the consumer. Credit fundamentals will impact quite negatively on corporates, as a weakening economy and high input costs take full effect. The financial sector is likely to become more regulated going forward and as such, less profitable post the credit crisis. The outlook remains quite negative for the next 12 months.
94
Aberdeen Global Sterling Financials Bond Fund
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Subscriptions receivable Total assets Liabilities Taxes and expenses payable Total liabilities Net assets at the end of the year 000 32,262 849 816 9 33,936
Statement of Operations For the period from 1 October 2007 to 30 September 2008 Income Income from investments Bank interest Total income Expenses Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Annual tax (note 4.9) Total expenses Net gains from investments Realised losses on investments Net realised gains Increase in unrealised depreciation on investments Net increase in assets as a result of operations 000 1,760 34 1,794
45 45 33,891
267 17 6 41 5 14 18 368 1,426 (898) 528 (38) 490
Statement of Changes in Net Assets For the year from 1 October 2007 to 30 September 2008 Net assets at the beginning of the year Net gains from investments Realised losses on investments Increase in unrealised depreciation on investments Proceeds from shares issued Payments for shares redeemed Net equalisation paid (note 10) Net assets at the end of the year 000 36,749 1,426 (898) (38)
Share Transactions For the year from 1 October 2007 to 30 September 2008 Shares outstanding at the beginning of the year Shares issued during the year Shares redeemed during the year Shares outstanding at the end of the year 207 (3,536) (19) 33,891 Net asset value per share A-2 21,711,784 121,092 (2,061,901) 19,770,975 1.7142
95
Portfolio Statement
Security
Coupon (%)
Maturity
Nominal
Market Value 000
Sterling Denominated Bonds - 89.28% Australia - 7.20% National Australia Bank Westpac Bank
5.25 4.875
20/01/10 13/04/11
1,000,000 1,500,000
985 1,453 2,438
2.91 4.29 7.20
Canada - 8.75% Ontario Royal Bank of Canada
5.375 4.625
28/07/09 07/12/10
1,500,000 1,500,000
1,506 1,460 2,966
4.44 4.31 8.75
Ireland - 7.79% Anglo Irish Bank Bank of Ireland
FRN 4.75
28/06/12 30/12/08
1,500,000 1,164,000
1,492 1,148 2,640
4.40 3.39 7.79
Italy - 3.52% Banca Intesa Luxemburg - 3.52% European Investment Bank Netherlands - 8.79% ABN Amro Bank Bank Nederlandse Gemeenten
FRN
04/03/10
1,200,000
1,192
3.52
4.75
06/06/12
1,200,000
1,193
3.52
4.875 4.875
20/01/10 21/04/10
1,500,000 1,500,000
1,479 1,504 2,983
4.36 4.43 8.79
Spain - 2.97% Institut Credito United Arab Emirates - 2.13% Abu Dhabi Commercial Bank United Kingdom - 18.90% Abbey National Treasury Services Alliance & Leicester GE Capital UK Funding HBOS Treasury Services Lloyds TSB Bank
5.375
17/03/10
1,000,000
1,005
2.97
5.625
16/11/11
750,000
723
2.13
7.125 4.25 6.00 4.875 9.50
20/06/11 30/12/08 11/04/13 10/02/10 01/06/09
1,500,000 1,000,000 1,000,000 1,500,000 1,500,000
1,535 992 900 1,454 1,526 6,407
4.52 2.93 2.66 4.29 4.50 18.90
96
Security
Coupon (%)
Maturity
Nominal
Market Value 000
United States - 25.71% American Express Credit ASIF III Bank of America JP Morgan Chase Met Life Global Funding I Pacific Life Funding
5.625 5.625 6.15188 6.00 5.25 6.25
18/08/09 15/06/09 02/02/11 07/12/09 19/12/08 08/02/11
1,500,000 1,500,000 1,500,000 1,500,000 1,500,000 1,500,000
1,365 1,410 1,449 1,495 1,491 1,502 8,712 30,259
4.03 4.15 4.29 4.41 4.40 4.43 25.71 89.28
Total Sterling Denominated Bonds Sterling Government Bonds - 5.91% United Kingdom - 5.91% UK Treasury Total investments Other net assets Total
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.
4.50
07/03/13
2,000,000
2,003 32,262 1,629 33,891
5.91 95.19 4.81 100.00
97
Technology
Performance For the year ended 30 September 2008, the value of the Technology - A Accumulation shares decreased by 28.4% compared to a decrease of 31.4% in the benchmark, the Merrill Lynch Technology 100 Index. Managers review Technology stocks fell sharply over the 12 months to end September 2008, reacting in a dramatic fashion to the ongoing turmoil in the financial sector. The Fund outperformed the benchmark Merrill Lynch Technology 100 Index over the period, which finished the period down over 31% in US dollar terms. IT services was the best performing sub-sector, whereas internet software companies lagged. During the year, significant activity in the technology sector included Microsofts high profile bid for Yahoo, in an attempt to catch up with Google, the leading internet search engine. The deal collapsed after the parties failed to agree on terms. Yahoos shares subsequently tumbled. The portfolio reported mixed results: in the second quarter, Dell posted poor earnings that were dragged down by aggressive price cutting, whereas Nokias sales rose as the market for handsets increased. Sentiment in equity markets got worse over the year. Problems in credit markets deteriorated to the point where interbank lending is now effectively frozen. The destabilisation of the US and Europes banking sector manifested itself in the bailout and nationalisation of several prominent financial institutions. The collapse of Lehman Brothers and regional lender Washington Mutual were among the most severe casualties. On the policy front, government intervention through massive liquidity injections failed to restore confidence, which was hurt further by recession worries and the US Congress initial rejection of a US$700bn rescue package (which was later approved). The US loosened monetary policy and relaxed existing interbank borrowing rules, whereas inflationary concerns took precedence for the European Central Bank, which raised interest rates to a seven-year high of 4.25%. In the UK, the Bank of England initially kept interest rates on hold in the face of rising price pressures, only to change its stance once the financial crisis had hit housing and consumption.
Economic data over the year slowed markedly, particularly in the West. Unemployment rose as companies cut costs, as they braced themselves for a global recession, while the US and the UK saw house prices collapse. The impact of the credit turmoil on the real economy also became increasingly evident, as asset prices suffered successive rounds of deleveraging by banks. Manufacturing and services activity in both the Eurozone and the UK decelerated, while business confidence on the Continent fell to a 10-year low. Europes second-quarter GDP shrank, while a broad-based weakness started to appear in Asia as well. On a brighter note, commodity prices, which hit new highs in July, fell as much as 25% towards the end of the year, providing some relief to companies confronted with soaring raw material costs. In particular, crude oil fell from around US$145 per barrel to around US$70 after the year end. Portfolio review We introduced Japanese factory automation systems maker Fanuc, which benefits from strong demand, and US-based ON Semiconductor, which has the potential to improve profit margins. We also added to several existing holdings which were trading at attractive valuations. Against this, we sold China Mobile on valuation grounds. We also sold US wireless equipment company Motorola, and Japanese electronics firm Rohm because of operational issues and to fund better investment opportunities elsewhere. As well, both US company CDW Computers and Greek mobile telecom firm Cosmote were divested because of their imminent takeovers, with their bid prices fully reflected in the valuations. Outlook Despite the unorthodox measures implemented by global policymakers to shore up the financial system, the market remains unstable. Nevertheless, from a stock market perspective, we view the sharp falls as buying opportunities. As economic growth slows or even contracts; corporate profits in the technology sector are likely to decline. Against this backdrop, valuations are likely to fall even further. As such, we will cautiously look to initiate new positions or add to our current holdings opportunistically.
98
Aberdeen Global Technology Fund
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Subscriptions receivable Receivable for investments sold Other assets Total assets Liabilities Taxes and expenses payable Redemptions payable Total liabilities Net assets at the end of the year US$000 66,314 53 102 72 973 5 67,519
Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Other income Bank interest Total income Expenses Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Distribution fee (note 4.3) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Annual tax (note 4.9) Total expenses Net losses from investments Realised gains on investments Currency exchange gains Net realised gains Decrease in unrealised appreciation on investments US$000 1,292 22 87 1,401
159 187 346 67,173
1,241 34 28 3 71 11 52 34 1,474 (73) 1,903 58 1,888
(26,671) (6) (24,789)
Statement of Changes in Net Assets For the year from 1 October 2007 to 30 September 2008 Net assets at the beginning of the year Net losses from investments Realised gains on investments Currency exchange gains Decrease in unrealised appreciation on investments Unrealised currency exchange losses Proceeds from shares issued Payments for shares redeemed Net equalisation received (note 10) Net assets at the end of the year US$000 77,257 (73) 1,903 58 (26,671) (6) 40,874 (26,173) 4 67,173
Unrealised currency exchange losses Net decrease in assets as a result of operations
Share Transactions For the year from 1 October 2007 to 30 September 2008 A-2 B-2 Shares outstanding at the beginning of the year 16,740,977 152,326 Shares issued during the year 8,244,777 Shares redeemed during the year D-2(GBP) I-2
6,204,526
- 1,013,542 1,286,511
(6,810,933) (54,968) (1,831,187)
(47,022)
Shares outstanding at the end of the year 18,174,821 97,358 5,386,881 1,239,489 Net asset value per share
2.40
2.20
1.34
8.34
99
Portfolio Statement
Finland - 1.59% Nokia 57,900 1,068 Germany - 8.49% SAP 56,700 2,995 Wincor Nixdorf 46,600 2,708 5,703
1.59
4.46 4.03 8.49
Hong Kong - 3.68% ASM Pacific Technology 430,000 2,470 India - 5.85% Infosys Technologies 73,700 2,226 Satyam Computer Services 270,700 1,707 3,933
3.68
3.31 2.54 5.85
Israel - 3.99% Check Point Software 124,500 2,683 Japan - 9.04% Canon 71,100 2,593 FANUC 21,500 1,583 Omron Corp * 123,300 1,892 6,068
3.99
3.86 2.36 2.82 9.04
Portugal - 2.14% Portugal Telecom 142,346 1,438 Singapore - 2.94% Venture Corporation 367,000 1,975 South Korea - 4.41% Samsung Electronics GDR 19,400 2,963 Sweden - 4.23% Ericsson * 299,920 2,843 Taiwan - 6.31% TSMC ADS 487,225 4,239 United Kingdom - 4.16% Vodafone 1,286,000 2,795
2.14
2.94
4.41
4.23
6.31
4.16
100
United States - 41.29% Adobe Systems 96,600 3,492 Cisco Systems 121,300 2,643 Dell 86,000 1,325 EMC 251,000 2,879 IBM 17,900 2,049 Intel 153,300 2,647 Microsoft 116,400 2,911 ON Semiconductor 272,700 1,677 Oracle 144,000 2,703 QUALCOMM 75,500 3,011 Texas Instruments 111,500 2,398 27,735 Fair value adjustment (note 2.2) 401 Total investments Other net assets Total
5.20 3.93 1.97 4.29 3.05 3.94 4.34 2.50 4.02 4.48 3.57 41.29 0.60 98.72 1.28 100.00
66,314 859 67,173
101
UK Opportunities
Performance For the year ended 30 September 2008, the value of the UK Opportunities - A Accumulation shares decreased by 27.7% compared to a decrease of 22.3% in the benchmark, the FTSE AllShare Index. Managers review The UK stock market fell by more than 20% during the year under review, on the back of a deepening global financial turmoil and a deteriorating domestic economy. The situation became particularly acute in September, when the credit crisis spread from the US to Europe. This followed the bankruptcy of Lehman Brothers, which had led banks to stop lending to one another. With knock-on defaults, central banks worldwide were forced into bailouts and massive money-market injections to help stabilise conditions. In the UK, lender Bradford & Bingley was nationalised, Lloyds TSB looked to acquire HBOS and regulators restricted short selling of financial stocks. Growth remained weak throughout, as the credit turmoil took an increasing toll on sentiment. The economy stalled in the second quarter, leading the central bank to cut its 2009 economic forecast and warn of further weakness ahead. The manufacturing and services sector slowed further in September. The government also announced a 1.6bn package to prop up the falling housing market, amid sharp drops in consumer and mortgage lending. Early on, inflation weighed on the market as oil and commodity prices rose to record highs. But growth concerns afterwards took precedence, and the Bank of England cut interest rates three times to 5% in the year under review. Portfolio review The Fund underperformed the benchmark FTSE All-Share Index over the year. In portfolio activity, we initiated positions in attractively valued homebuilder Persimmon, which has a solid land bank, low gearing and extensive management experience, and Rolls Royce, with its valuation well supported by a strong order book and after-sales revenues.
Conversely, we exited Barratt Developments, and sold Rio Tinto on concerns over commodity prices. We also sold Sainsbury, Resolution and HMV on strong relative performance, and divested our holding in Emap following bids for its consumer and B2B businesses, and Imperial Chemical Industries. We exited BBA on valuation grounds as well. We topped up some of our holdings on compelling valuations: Close Brothers, Daily Mail & General Trust, Premier Foods and Wolseley. We reduced Amec and HSBC on strong share price performance. Outlook Conditions appear challenging, owing to growing evidence of a global downturn, with developed economies, such as the US and Japan, already on the brink of recession. In the UK, the government has belatedly stepped in to bail out the banking system, through the guarantee of US$434bn in bank debt and the injection of US$64bn into three of its biggest banks. While this has brought a measure of stability, the sums involved place enormous strain on public finances, at a time when tax revenues are in decline. On a positive note, consumer prices are likely to ease as food-price inflation slows. This should provide more room for manoeuvre for the central bank, which has started to cut interest rates. Further monetary loosening is expected, given the sharp contraction in manufacturing activity to the lowest level in 17 years. Still, the household sector is likely to stay very muted, given the build-up in consumer debt over the past decade and the collapse of the housing market. The spectre of lay-offs will further dent confidence. The upcoming third-quarter reporting season should give a clearer indication of the impact of the credit crisis on corporate earnings. The potential for some nasty surprises is likely to weigh on market sentiment in the short term. We remain cautious but are confident that our focus on quality investments at attractive valuations will continue to offer downside protection during the current uncertainty. As valuations fall, we see opportunities to top up our favoured holdings and to invest in fundamentally strong companies.
102
Aberdeen Global UK Opportunities Fund
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Subscriptions receivable Other assets Total assets Liabilities Payable for investments purchased Taxes and expenses payable Redemptions payable Other liabilities Total liabilities Net assets at the end of the year 000 36,373 447 219 4 3 37,046
Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Other income Bank interest Total income Expenses Gross Management fee Less: Management fee cross holdings Net Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Distribution fee (note 4.3) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Annual tax (note 4.9) Total expenses Net gains from investments Realised gains on investments Net realised gains Decrease in unrealised appreciation of investments Net decrease in assets as a result of operations 000 1,998 40 15 2,053
732 (28) 704 30 2 6 53 7 19 23 844 1,209 636 1,845 (17,134) (15,289)
42 81 175 258 556 36,490
Statement of Changes in Assets For the year from 1 October 2007 to 30 September 2008 Net assets at the beginning of the year Net gains from investments Realised gains on investments Decrease in unrealised appreciation on investments Proceeds from shares issued Payments for shares redeemed Net equalisation paid (note 10) Dividends paid (note 5) Net assets at the end of the year 000 56,046 1,209 636 (17,134) 16,231 (20,042) (57) (399) 36,490
Share Transactions For the year from 1 October 2007 to 30 September 2008 A-2 Shares outstanding at the beginning of the year 2,219,297 Shares issued during the year Shares redeemed during the year Shares outstanding at the end of the year Net asset value per share B-2 D-1
59,943 1,229,113
434,045
676,844
(938,425)
(13,035) (469,533)
1,714,917 11.66
46,908 1,436,424 10.19 11.15

103
Portfolio Statement
Market value Description Quantity 000
Consumer Goods - 15.06% Automobiles & Parts - 2.08% GKN * 390,000 758 Food Producers - 6.07% Associated British Foods * 136,000 970 Premier Foods * 824,000 625 Unilever * 42,000 622 2,217 Household Goods - 3.10% McBride * 665,000 677 Persimmon * 111,501 452 1,129 Tobacco - 3.81% British American Tobacco * 77,000 1,389 Consumer Services - 20.99% Food & Drug Retailers - 4.76% Morrison (W) * 302,000 764 Tesco * 256,000 976 1,740 General Retailers - 4.97% Kesa Electricals 431,000 475 Marks & Spencer * 206,000 439 Mothercare * 261,000 903 1,817 Media - 2.74% Daily Mail & General Trust * 310,000 1,001 Travel & Leisure - 8.52% Arriva * 156,000 1,066 Ladbrokes 344,000 637 Millennium & Copthorne * 297,341 737 SFI Holdings + 46,000 - SFI Holdings Litigation Entitlements + 46,000 - Whitbread * 64,000 669 3,109
2.08 2.66 1.71 1.70 6.07 1.86 1.24 3.10 3.81
2.09 2.67 4.76 1.30 1.20 2.47 4.97 2.74 2.92 1.75 2.02 1.83 8.52
Financials - 31.00% Banks - 9.57% Barclays 215,000 704 HSBC 141,000 1,229 Royal Bank of Scotland 594,500 990 Standard Chartered 43,000 569 3,492 Collective Investment Schemes - 6.45% Aberdeen UK Emerging Companies Fund + 890,000 1,070 Aberdeen UK Mid Cap Fund + 1,760,000 1,285
104
1.93 3.37 2.71 1.56 9.57 2.93 3.52 6.45

2,355
General Financial - 4.34% Close Brothers Group 128,000 671 Schroders (non voting) 113,000 912 1,583 Life Insurance/Assurance - 6.59% Aviva 259,000 1,251 Friends Provident 527,200 463 Prudential 134,000 689 2,403 Real Estate - 4.05% Hammerson * 70,000 677 Land Securities * 54,000 667 Minerva * 380,000 133 1,477
1.84 2.50 4.34 3.43 1.27 1.89 6.59 1.86 1.83 0.36 4.05
Health Care - 6.21% Pharmaceuticals & Biotechnology - 6.21% AstraZeneca * 56,000 1,370 GlaxoSmithKline 75,000 897 2,267
3.75 2.46 6.21
Industrials - 4.83% Aerospace & Defense - 1.54% Rolls Royce Group * 170,000 561 General Industrials - 1.87% Authoriszor + 28,000 - Tomkins * 438,000 684 684 Support Services - 1.42% Wolseley * 124,000 517 Oil & Gas - 10.03% Oil & Gas Producers - 8.19% BP * 160,000 736 Royal Dutch Shell B * 79,000 1,234 Venture Production * 167,395 1,015 2,985 Oil Equipment & Services - 1.84% AMEC 110,000 672 Telecommunications - 4.94% Fixed Line Telecommunications - 2.81% BT Group * 648,416 1,025 Mobile Telecommunications - 2.13% Vodafone * 644,000 778
1.54 1.87 1.87 1.42
2.02 3.39 2.78 8.19 1.84
2.81 2.13
105
Utilities - 6.62% Gas, Water & Multiutilities - 6.62% Centrica * 399,000 1,238 National Grid * 169,000 1,176 Total investments Other net assets Total 2,414 36,373 117 36,490
3.40 3.22 6.62 99.68 0.32 100.00
106
World Bond
Performance For the year ended 30 September 2008, the value of the World Bond D Income shares increased by 19.8% on a total return basis compared to an increase of 21.1% in the benchmark, the Citigroup WGBI Index. Managers review The main focus for fixed income markets over the year was the health of the financial system and events in credit markets. Falling prices in the US housing market and imprudent lending to sub-prime borrowers led to higher than expected delinquencies and defaults in residential mortgages. This fed through to sharp falls in the value of securitised and structured debt which was widely held and triggered dramatic unwinding of leverage, risk aversion and a flight to quality in financial markets. The ensuing turmoil in the money markets led to a shortage of liquidity, prompting the government sponsored take-over of the US broker Bear Stearns by JP Morgan in March, several large regional bank failures in the US in July and asset price weakness causing financial companies to have to raise capital due to further asset write-downs and increases in loan-loss provisions. Then in September, a total of twelve major financial institutions were either bailed out by their government, nationalised, declared bankrupt or forced into a merger to ensure their survival. European governments were also provoked into action with the UK encouraging the takeover of HBOS by Lloyds, and Dexia being supported by the French and Belgian governments with Hypo, Fortis and the Icelandic banks Glitnir and Kaupthing following in the first few days of October. The rapid demise of these and other financial institutions on both sides of the Atlantic shocked markets and risk aversion and volatility spiked higher with liquidity being virtually eradicated. The variety of treatment of bond holders in the various rescue packages also heightened the level of uncertainty within the credit markets. Investment grade credit spreads gapped out and the three months to the end of September saw greater underperformance in a single quarter than had previously been seen in a year. The focus clearly changed towards the end of the year from concerns over higher inflation to concerns over lower growth. Global growth deteriorated as evidenced across most indicators and confidence indicators dropped sharply. Many parts of the world are now in or close to recession. Equity markets and commodity prices also fell sharply. Oil fell from its peak of over US$145 per barrel in June to after the end the year to just over US$70 per barrel. Key central banks had to intervene to provide liquidity and support to the market as confidence between banks mid 2008 fell to an all time low. The major central banks around the world took unprecedented action to alleviate the liquidity crisis by injecting cash into the inter-bank market and then implementing various initiatives to support the monetary system. The Federal Reserve cut rates 6 times during the year under review taking official rates from 4.75% to 2%. The Monetary Policy Committee in the UK also cut rates three times to 5.0% from 5.75%, however the European Central Bank held rates at 4.0% through most of the year until July 2008 when they raised rates to 4.25% to combat rising inflation. All three central banks then cut rates by a further 50 basis points in October in a co-ordinated global effort to restore confidence and improve liquidity. Generally short-dated bonds rallied, curves steepened and swap spreads widened particularly in shorter dated maturities. US bond yields fell sharply, the UK and Euro markets also saw yields fall but the Japanese bond market saw yields remain unchanged.
The US dollar benefited from the deterioration in growth expectations outside the US and the Japanese yen was one of the few currencies to keep pace with the US currency. Portfolio review The Fund underperformed over the twelve months, returning 19.8% versus an index return of 21.1%. Towards the latter part of the year, both our interest rates and currency decisions added value. Within interest rates, a positive contribution to performance came from a long duration position in short dated Euro and US government bonds, as did being overweight 10 year Euro government bonds versus US government bonds. In addition, an overweight position in 10 year Australian government bonds versus 10 year Canadian government bonds added value. Detracting from performance were holdings in inflation linked bonds in the US and Japan. Within currencies, our overweight position in Japanese yen against a variety of currencies contributed to performance, as did our position being underweight UK sterling. Negative for performance were being overweight Norwegian Krona against the Euro and overweight the Swiss Franc against the US dollar. Outlook October so far has seen co-ordinated rate cuts by major central banks, the US Treasurys direct purchase of commercial paper and the capital injection to a variety of banks and guaranteeing of new bank debt for a limited period first announced by the UK and then copied by most other major governments. These are the first signs that authorities see the gravity of the situation and are starting to act ahead of events rather than in reaction to them. It may be that the combination of all the actions so far are enough to stop the decline in credit markets and liquidity, however, it is difficult to see enough good news in the near term to make credit markets rally substantially. We have seen a recovery in the financial sector from the worst levels but continued provision of liquidity, confirmation that a solution to the term-funding issue has been found as well as further rate cuts will be needed to help a move of markets and economies back to a more normal situation. Although the top-tier banks in the major economies seem now to be secure, further bank defaults are to be expected in the US regional bank sector and emerging economies as weaker institutions continue to struggle to secure funding and capital against a background of declining asset quality in consumer and business lending. A weaker economy and the lack of access to funding will also weigh on nonfinancial corporate credit spreads. There is substantial pent-up supply which will need to come cheap to outstanding debt, and we expect this re-pricing of corporate risk to continue should markets reopen. We are negative on the outlook for the global economy believing that the next year or so will have substantially lower, possibly recessionary, growth. We expect declining economic growth and falling consumer confidence to combine with lower official interest rates to result in steeper yield curves. Declining growth will continue to be accompanied by declining inflation. This will make it easier for central banks in Euro and the UK to continue to cut rates substantially; the Fed will also cut rates but they clearly are closer to their lower bound. We continue to favour currencies with healthy external fundamentals, however, in these volatile markets, other factors are also in play which are hard to predict and we are unlikely to take substantial currency risk in the near term.
Aberdeen Global World Bond Fund
107
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Subscriptions receivable Receivable for investments sold Unrealised gains on forward foreign exchange contracts (note 2.6) Total assets Liabilities Payable for investments purchased Taxes and expenses payable Redemptions payable Other liabilities Total liabilities Net assets at the end of the year 000 37,304 343 427 81 2,039 263 40,457
Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Bank interest Total income Expenses Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Annual tax (note 4.9) Total expenses Net gains from investments 37,595 Realised gains on investments Currency exchange gains Realised losses on forward foreign exchange contracts Net realised gains Increase in unrealised appreciation on investments Unrealised currency exchange losses Increase in unrealised appreciation on forward foreign exchange contracts Net increase in assets as a result of operations 2,888 311 (85) 4,277 1,801 (26) 000 1,504 95 1,599
330 17 6 41 6 17 19 436 1,163
2,285 54 1 522 2,862
Statement of Changes in Net Assets For the year from 1 October 2007 to 30 September 2008 000 Net assets at the beginning of the year 34,368 Net gains from investments 1,163 Realised gains on investments 2,888 Currency exchange gains 311 Realised losses on forward foreign exchange contracts (85) Increase in unrealised appreciation on investments 1,801 Unrealised currency exchange losses (26) Increase in unrealised appreciation on forward foreign exchange contracts 595 Proceeds from shares issued 5,963 Payments for shares redeemed (8,218) Net equalisation paid (note 10) (17) Dividends paid (note 5) (1,148) Net assets at the end of the year 37,595
595 6,647
Share Transactions For the year from 1 October 2007 to 30 September 2008 Shares outstanding at the beginning of the year Shares issued during the year Shares redeemed during the year Shares outstanding at the end of the year Net asset value per share D-1 30,134,871 4,870,657 (6,656,858) 28,348,670 1.3262
108
Portfolio Statement
Security
Coupon (%)
Maturity
Nominal
Market Value 000
UK Treasury Stock - 5.10% UK Treasury UK Treasury UK Treasury UK Treasury
4.25 4.50 4.75 8.75
07/03/36 07/03/13 07/03/20 25/08/17
790,000 350,000 350,000 350,000
754 350 354 458 1,916
2.01 0.93 0.94 1.22 5.10
Canadian Dollar Denominated - 0.31% Canada - 0.31% Canada * Euro Denominated - 43.82% Belgium - 3.65% Belgium France - 2.90% France Germany - 24.54% Bundesobligation Bundesrepublic Deutsche Bundesrepublic Deutsche Deutschland Deutschland
5.75
01/06/29
180,000
117
0.31
4.00
28/03/13
1,740,000
1,372
3.65
4.25
25/10/23
1,425,000
1,091
2.90
3.50 5.50 3.25 4.25 6.25
08/04/11 04/01/31 04/07/15 04/07/14 04/01/24
1,930,000 1,340,000 3,000,000 4,180,000 850,000
1,537 1,185 2,298 3,403 804 9,227
4.09 3.15 6.11 9.05 2.14 24.54
Greece - 1.23% Hellenic Republic Hellenic Republic Italy - 6.40% Italy Italy Italy Netherlands - 4.33% Netherlands Portugal - 0.77% Portuguese ot's Total Euro Denominated Australia Dollar Denominated - 1.60% Australia - 1.60% Commonwealth Government
4.30 4.50
20/07/17 20/09/37
390,000 240,000
298 167 465 528 920 957 2,405 1,627
0.79 0.44 1.23 1.40 2.45 2.55 6.40 4.33
4.00 5.25 5.75
15/04/12 01/08/17 01/02/33
670,000 1,110,000 1,120,000
4.50
15/07/17
2,000,000
4.35
16/10/17
370,000
289 16,476
0.77 43.82
6.00
15/02/17
1,290,000
600
1.60
109
Security
Coupon (%)
Maturity
Nominal
Market Value 000
Japan Yen Denominated - 26.89% Japan - 26.89% DEPFA ACS Bank Development Bank of Japan European Investment Bank KFW KFW KFW
1.65 1.60 1.25 0.75 2.05 2.60
20/12/16 20/06/14 20/09/12 22/03/11 16/02/26 20/06/37
400,000,000 260,000,000 470,000,000 410,000,000 310,000,000 86,000,000
1,988 1,404 2,498 2,154 1,594 471 10,109
5.29 3.73 6.65 5.73 4.24 1.25 26.89
United States Dollar Denominated - 18.04% United States - 18.04% US Treasury US Treasury US Treasury US Treasury US Treasury US Treasury US Treasury US Treasury
4.00 4.25 4.50 4.625 5.375 6.25 6.875 7.25
15/02/14 15/11/14 28/02/11 31/12/11 15/02/31 15/05/30 15/08/25 15/05/16
2,600,000 1,350,000 1,900,000 1,000,000 100,000 790,000 700,000 2,250,000
1,537 810 1,124 598 65 564 514 1,568 6,780
4.10 2.15 2.99 1.59 0.17 1.50 1.37 4.17 18.04
Total ZAR Denominated - 3.47% South Africa - 3.47% European Investment Bank Transferable securities
9.00
14/09/09
20,000,000
1,306 37,304
3.47 99.23
110
Forward foreign exchange contracts - 0.70%

Unrealised Percentage of gains/(losses) total net assets % 000
Buy
Sell
Settlement Date
Buy Amount
Sell Amount
EUR SGD NOK GBP EUR CHF GBP GBP EUR GBP EUR EUR MYR CAD CHF USD GBP PLN GBP USD GBP USD NOK JPY SEK RUB TWD JPY
GBP GBP GBP EUR GBP GBP AUD JPY SEK USD JPY USD USD GBP USD JPY USD EUR ZAR TWD EUR GBP GBP GBP GBP USD USD GBP
03/12/08 03/12/08 03/12/08 03/12/08 03/12/08 03/12/08 03/12/08 03/12/08 03/12/08 03/12/08 03/12/08 03/12/08 10/11/08 03/12/08 03/12/08 03/12/08 03/12/08 03/12/08 03/12/08 10/11/08 03/12/08 03/12/08 03/12/08 03/12/08 03/12/08 10/11/08 10/11/08 03/12/08
70,000 281,000 380,000 399,376 434,000 437,000 497,157 581,021 664,305 718,772 723,091 730,000 869,000 1,120,000 1,137,000 1,222,127 1,234,532 1,338,000 1,421,485 2,347,250 3,748,626 4,388,000 6,260,000 7,260,000 8,895,000 50,500,000 70,840,000 669,286,000
55,706 107,797 36,554 500,000 349,750 216,320 1,072,000 109,630,000 6,229,000 1,300,000 109,630,000 1,035,658 266,320 569,892 1,024,930 126,870,000 2,217,697 392,652 21,100,000 70,840,000 4,729,000 2,370,872 621,928 37,325 749,394 2,151,912 2,317,964 3,310,758
2 1 (4) 5 19 (2) 23 (4) (6) 6 (7) 25 6 5 1 (1) 29 81 (22) 69 (24) 1 (26) (98) (65) 249 263 37,567 28 37,595
0.01 (0.01) 0.01 0.05 (0.01) 0.06 (0.01) (0.02) 0.02 (0.02) 0.07 0.02 0.01 0.08 0.22 (0.06) 0.18 (0.06) (0.07) (0.26) (0.17) 0.66 0.70 99.93 0.07 100.00
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. * Unlisted transferable security.
111
World Equity
Performance For the year ended 30 September 2008, the value of the World Equity - A Accumulation shares decreased by 22.0% compared to a decrease of 25.6% in the benchmark, the MSCI World Index. Managers review Global equities, which had risen to new records in 2007, fell for most of the year under review, hurt by a string of bank failures, deteriorating economic growth and rising inflation. In hindsight, there were three distinct phases. The first saw the development of the credit crisis in the US, where the mispricing of risky, structured assets led to a spate of bank write-downs and intense financial de-leveraging. Sentiment was poor, and global equities fell about 16% from September to mid-March, but many still believed that the crisis could be contained. The second was a short-lived rally in March, spurred by hopes that Bear Stearns implosion and government-assisted rescue by JP Morgan might mark the end of the turmoil. Instead, risk aversion returned as investors wondered how shaky other financial institutions might be. Those concerns became almost self-fulfilling, as credit defaults multiplied and banks refused to lend to one another. By September, the third phase had started. The US Treasury had chosen not to save Lehman Brothers, whose bankruptcy had sparked off a chain reaction that spread quickly to Europe. Between 28 September and 30 September, governments on both sides of the Atlantic rescued six major banks. Subsequently, US lawmakers rejected a hastily cobbled Treasury plan to use US$700bn to buy assets from distressed banks (only to pass a revised bill just days later). Meanwhile, authorities across developed markets poured billions into the money markets and banned the short selling of shares in financial companies. The extreme stresses in the financial system have not only put an end to some famous names, investment banking as a stand-alone entity has in effect ended for Wall Street. Recession beckons for the global economy. The problems in the US housing market have evolved into a full-scale rout, with prices falling by 16%. Car sales fell to a 16-year low. The jobless rate jumped from 4.7% to a fiveyear high of 6.1%, close to the peak reached during the dotcom bust. In the Eurozones core economies of Germany, France and Italys GDP growth contracted, as it did in Japan in the second quarter. Meanwhile, developing countries, the engines of the global economy, have also weakened. China is working through its own property bubble, while Latin American countries have suffered big capital outflows. Meanwhile, high inflation, which dominated policy decisions earlier, has receded. Over the year, the price of oil rose from less than US$80 per barrel to US$145, but the global slowdown has since tempered demand and pushed prices back to where they started. This allowed central banks to make coordinated interest rate cuts in October to shore up confidence. The Federal Reserve, which had cut interest rates six times, from 4.75% to 2%, also joined the coordinated effort.
Portfolio review The Fund fell by 22.0%, outperforming the benchmark, which declined by 25.6%. Portfolio activity was higher than usual during the year under review. We bought a number of quality companies after valuations had fallen to attractive levels. These include seamless pipe manufacturer Tenaris; UK-based plumbing and building supplies firm Wolseley; Spanish insurer Mapfre; Japans Bank of Yokohama; Singapore real estate and hotel operator City Developments; Japans Takeda Pharmaceuticals; Australian insurer QBE; Swiss pharmaceutical giant Roche; household products manufacturer Procter & Gamble; US insurer Aflac; US-based Dow Chemicals; and French industrial firm Schneider Electric. Against this, we exited Hong Kong-listed mainland companies Petrochina and China Mobile on valuation grounds. We also sold Japans Mitsubishi UFJ, Seven & I and Bank of Kyoto, as well as Frances Peugeot and US-based Willis Group, due to operational issues, as well as to fund better investment opportunities elsewhere. Finally, we divested CDW Computers and Resolution, because of private equity bids. Outlook The crisis has not yet bottomed out, and we expect further bad news to weigh on sentiment. The International Monetary Fund estimates that banks across the world still need another US$675bn in order to recapitalise fully. Although central banks are finally coordinating action, the success of any bailout still hangs in the balance. Uncertainty has led to further stock market weakness. As the developed world enters into recession, attention will focus on the role that developing countries play. They, too, are expected to slow, on declining exports, while falling commodity prices will hurt resource-rich economies, notably in Latin America. In Eastern Europe, economies that are heavily dependent on overseas financing to cover their current account deficits are particularly vulnerable to capital outflows. Nonetheless, with strong fundamentals and large reserves, many developing economies should be able to withstand a recession. We have long believed that the euphoria in markets could not be sustained. In that respect, we have continued our disciplined investing principle, which is to buy well-run companies regardless of the market conditions. Markets are already discounting weaker earnings but the extent of the downturn is still unclear. While there is the prospect therefore of markets overshooting, we emphasis the high quality nature of our holdings.
112
Aberdeen Global World Equity Fund
Statement of Net Assets As at 30 September 2008 Assets Investments in securities at market value (note 2.2) Cash at bank Interest and dividends receivable Subscriptions receivable Receivable for investments sold Other assets Total assets Liabilities Payable for investments purchased Taxes and expenses payable Redemptions payable Total liabilities Net assets at the end of the year US$000 718,735 27,545 2,028 701 1,342 160 750,511
Statement of Operations For the year from 1 October 2007 to 30 September 2008 Income Income from investments Other income Bank interest Total income Expenses Gross Management fee Less: Management fee cross holdings Net Management fee (note 4.6) Administration fee (note 4.1) Custodian fee (note 4.2) Distribution fee (note 4.3) Domiciliary agent, registrar, paying and transfer agent fees (note 4.4) Management company fees (note 4.5) Operational expenses (note 4.7) Annual tax (note 4.9) Total expenses US$000 604,761 12,056 19,299 1,004 (211,276) (238) 507,043 (189,710) 3,288 746,227 Net gains from investments Realised gains on investments Currency exchange gains Net realised gains Decrease in unrealised appreciation on investments Unrealised currency exchange losses Net decrease in assets as a result of operations US$000 18,435 226 753 19,414
5,977 (99) 5,878 239 177 2 523 105 223 211 7,358 12,056 19,299 1,004 32,359 (211,276) (238) (179,155)
2,284 963 1,037 4,284 746,227
Statement of Changes in Net Assets For the year from 1 October 2007 to 30 September 2008 Net assets at the beginning of the year Net gains from investments Realised gains on investments Currency exchange gains Decrease in unrealised appreciation on investments Unrealised currency exchange losses Proceeds from shares issued Payments for shares redeemed Net equalisation received (note 10) Net assets at the end of the year Share Transactions For the year from 1 October 2007 to 30 September 2008
A-2 Shares outstanding at the beginning of the year Shares issued during the year Shares redeemed during the year Shares outstanding at the end of the year Net asset value per share 8,580,944 19,976,972 (9,996,076) 18,561,840 11.78
B-2 14,689 561 (4,943) 10,307 10.82
D-2(GBP) 18,432,082 2,021,524 (2,064,763) 18,388,843 6.55
I-2 5,338,313 (5,702) 5,332,611 7.74
Z-2 12,936,205 10,407,262 (925,926) 22,417,541 12.02

Aberdeen Global World Equity Fund 113
Portfolio Statement
Argentina - 2.60% Tenaris ADR 562,700 19,424 Australia - 1.77% QBE Insurance Group * 620,000 13,178 Belgium - 2.11% Belgacom 423,500 15,712 Brazil - 3.36% Petroleo Brasileiro (Pref) ADR 756,900 25,069 Canada - 2.01% Canadian National Railway 317,000 15,025 France - 0.76% Schneider Electric 66,906 5,699 Germany - 10.42% Adidas 302,700 16,317 Commerzbank * 672,000 10,175 Deutsche Post * 722,700 15,171 Deutsche Postbank 310,200 12,152 E.ON 485,100 23,949 77,764
2.60
1.77
2.11
3.36
2.01
0.76
2.19 1.36 2.03 1.63 3.21 10.42
Hong Kong - 2.36% Swire Pacific A 710,500 6,189 Swire Pacific B 6,637,642 11,449 17,638
0.83 1.53 2.36
India - 2.73% Aberdeen Global - India Opportunities Fund 152,200 8,925 ICICI Bank ADR 521,466 11,384 20,309
1.20 1.53 2.73
Italy - 4.80% ENI 580,000 15,287 Intesa Sanpaolo * 3,734,300 20,507 35,794
2.05 2.75 4.80
Japan - 11.28% Bank of Yokohama 2,289,000 10,948 Canon 589,401 21,492 Daito Trust Construction 267,503 9,869 Orix 126,211 15,085 Takeda Pharmaceuticals 237,400 11,873 Toyota Motor Corp 355,476 14,838 84,105
1.47 2.88 1.32 2.03 1.59 1.99 11.28
114
Mexico - 1.19% Grupo Aeroportuario del Sureste ADS 181,700 8,847 Netherlands - 1.93% Philips Electronics * 529,700 14,396 Portugal - 1.13% Portugal Telecom 833,010 8,417 Singapore - 1.53% City Developments 1,860,000 11,437 South Korea - 2.44% Samsung Electronics GDR 104,769 16,003 Samsung Electronics (Pref) 7,400 2,274 18,277
1.19
1.93
1.13
1.53
2.14 0.30 2.44
Spain - 2.10% Mapfre * 3,765,900 15,676 Sweden - 4.07% Ericsson * 1,554,780 14,740 Nordea 1,261,078 15,630 30,370
2.10
1.98 2.09 4.07
Switzerland - 5.36% Roche Holdings 73,200 11,506 Zurich Financial Services 105,400 28,541 40,047
1.54 3.82 5.36
Taiwan - 3.16% TSMC 10,881,917 17,715 TSMC ADS 680,227 5,918 23,633
2.37 0.79 3.16
United Kingdom - 10.95% AstraZeneca 263,200 11,590 British American Tobacco 244,600 7,942 Centrica 1,912,500 10,684 Morrison (W) 2,573,200 11,712 Premier Foods 4,357,100 5,950 Vodafone 8,500,400 18,475 Weir Group 413,065 4,518 Wolseley * 1,436,100 10,779 81,650
1.55 1.06 1.43 1.57 0.80 2.49 0.61 1.44 10.95
115
United States - 17.72% Aflac 130,300 6,678 Dow Chemical 216,500 6,703 Exxon Mobil 162,301 12,020 Intel 852,600 14,724 Johnson & Johnson 342,900 22,940 Phillip Morris International 372,500 17,433 Procter & Gamble 115,700 7,723 Quest Diagnostics 215,415 10,825 United Technologies 256,979 14,560 Wyeth 509,800 18,654 132,260 Fair value adjustment (note 2.2) 4,008 Total investments Other net assets Total
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.
0.89 0.90 1.61 1.97 3.07 2.35 1.03 1.45 1.95 2.50 17.72 0.54 96.32 3.68 100.00
718,735 27,492 746,227
116
Notes to the Financial Statements
1 Presentation of the financial statements 1.1 General Aberdeen Global (The Company) is incorporated as a socit anonyme under the laws of the Grand Duchy of Luxembourg and qualifies as an open-ended socit dinvestissement capital variable (a SICAV) with UCITS status (an Undertaking for Collective Investment in Transferable Securities as defined in the European Union Directive 85/611/EEC of 20 December 1985, as amended). The Company comprises various classes of shares, each relating to a separate portfolio (a Fund) consisting of securities, cash and other sundry assets and liabilities. The Company was incorporated under the laws of the Grand Duchy of Luxembourg on 25 February 1988. Aberdeen Global is authorised as an undertaking for collective investment in transferable securities under part I of the law dated 20 December 2002 on undertakings for collective investment, as amended (the Law of 2002). At 30 September 2008, the Company comprises twenty three separate active funds, providing shareholders with opportunities for investment in a wide variety of markets, securities and currencies. 1.2 Aberdeen Global India Opportunities Fund (Mauritius) Limited (The Mauritian Subsidiary) Mauritius is a widely used jurisdiction for investing on a collective basis into India. Hence it has developed an infrastructure to support such vehicles encompassing the full range of administration services. The Mauritian Subsidiary was established to benefit from such infrastructure in a time zone which is in between that of India and Luxembourg. Further, it is expected that the Mauritian Subsidiary should be governed by the provisions of the India-Mauritius Double Tax Avoidance Treaty. The Aberdeen Global - India Opportunities Fund makes almost all of its investments in India through a wholly owned subsidiary, Aberdeen Global India Opportunities Fund (Mauritius) Limited, a company incorporated in Mauritius. Transactions involving both the Company and its subsidiary are accounted for in accordance with their economic substance and accordingly these financial statements reflect the activities of the Aberdeen Global - India Opportunities Fund and of its subsidiary as if all the activities had been undertaken by the Aberdeen Global - India Opportunities Fund. 1.3 Presentation of financial statements The accompanying financial statements present the assets and liabilities of the individual Funds and of the Company taken as a whole. The financial statements of each individual Fund are expressed in the currency designated in the Prospectus for that particular Fund and the financial statements of the Company are expressed in United States Dollars (USD). The financial statements have been prepared in accordance with the format prescribed by the Luxembourg authorities for Luxembourg investment companies. As the financial statements include dividend declarations, effective for the distribution period ended 30 September 2008 and certain accounting adjustments relating to the year 30 September 2008, the Net Asset Values (NAVs) on pages 3 and 4 and those shown throughout the report may differ from those advertised on 30 September 2008 for dealing in these Funds. 1.4 New funds The Company has opened the following new Fund, with an initial Net Asset Value (NAV) calculated on the following date: Responsible World Equity, 2 November 2007 1.5 Funds closed On 26 October 2007, Asia Pacific and Japan was closed.
2 Accounting policies 2.1 Accounting convention The financial statements have been prepared under the historical cost convention modified by the revaluation of investments. 2.2 Assets and portfolio securities valuation The market value of investments has been calculated using the last available prices at 1.00pm (Luxembourg time) on 30 September 2008 quoted on stock exchanges or over-the-counter market or any other organised market on which these investments are traded or admitted for trading. If such prices are not representative of their fair value, all such securities and all other permitted assets will be valued at their fair value at which it is expected they may be resold as determined in good faith by or under the direction of the Directors.
Aberdeen Global
117
Notes to the Financial Statements continued
Fair value adjustment Where it is deemed that there is a likelihood of a significant movement in the value of a local market that the Company invests in and that local market is not open at the pricing point of the Company, then the Company may elect to fair value the affected markets accordingly. The Board have delegated the implementation and calculation of any fair value pricing to the Investor Protection Committee (IPC) of Aberdeen Asset Managers Limited. Last available prices at 1pm Luxembourg time on 30 September 2008, for the United States and Canadian markets are close prices as of 29 September 2008. As a result of significant market movements between 29 September 2008 and 30 September 2008, the IPC of Aberdeen Asset Managers Limited made the decision to fair value the prices of United States and Canadian stocks held by the Funds in order to price such holdings at 1pm (Lux time) on 30 September 2008. The basis for such adjustments were the market movement of the value of the NASDAQ 100 index for Technology Fund and the market movement of the value of the S&P 500 Futures index for the other Funds as described below (amounts are expressed in USD thousands). Fund American Opportunities Technology Responsible World Equity World Equity Market Value Pre Adjustment 56,137 65,913 59,567 714,727 Market Value Post Adjustment 57,659 66,314 59,872 718,735 % difference 2.71% 0.60% 0.51% 0.56%
Had closing market prices as at 30 September 2008 been applied to all sub-funds, the following significant variations would have arisen in the overall market value of investment securities (amounts are expressed in thousands). Fund American Opportunities ($) Technology ($) Responsible World Equity ($) World Equity($) Emerging Markets ($) European Equity (e) European Opportunities (ex UK) (e) UK Opportunities () European High Yield Bond (e) High Yield Bond () Market Value Post Adjustment 57,659 66,314 59,872 718,735 836,685 39,385 74,457 36,373 213,161 26,755 Closing Price Market value 59,384 68,271 60,924 731,305 859,856 39,820 75,250 36,772 210,710 26,555 % difference 2.46% 2.95% 1.75% 1.75% 2.77% 1.10% 1.07% 1.10% (1.15%) (0.75%)
2.3 Income and expenses Interest is accrued on a day-to-day basis. In the case of debt securities issued at discount or premium to maturity value, the total income arising on such securities, taking into account the amortisation of such discount or premium on an effective interest rate basis, is spread over the life of the security. Dividends are accounted for on an ex-dividend basis. Interest and dividend income are stated net of irrecoverable withholding taxes, if any. Securities lending commission is accounted for on an accruals basis. Expenses which do not relate to a particular Fund are allocated between Funds in proportion to the NAVs of the individual Funds. 2.4 Foreign exchange The cost of investments, income and expenses in currencies other than the Funds relevant reporting currency have been recorded at the rate of exchange ruling at the time of the transaction. The market value of the investments and other assets and liabilities in currencies other than the relevant reporting currency has been converted at the rates of exchange ruling at 30 September 2008. Realised and unrealised exchange differences on the revaluation of foreign currencies are taken to the Statement of Operations. 2.5 Realised gains and losses on investments Realised gains and losses on investments is the difference between the historical average cost of the investment and the sale proceeds. 2.6 Forward foreign exchange contracts Unsettled forward currency contracts are valued using forward rates of exchange applicable at the balance sheet date for the remaining period until maturity. All unrealised gains and losses are recognised in the Statement of Operations. 3 Share class information 3.1 General Within each Fund, the Company is entitled to create different share classes. These are distinguished by their distribution policy or by any other criteria stipulated by the Directors. Classes A-1, B-1, D-1, I-1 and Z-1 are Distribution shares and Classes A-2, B-2, D-2, I-2 and Z-2 are Accumulation shares.
118 Aberdeen Global
The Company issues either Class A-1, A-2, B-1, B-2, D-1, D-2, I-1, I-2, Z-1 and/or Z-2 shares to investors as detailed in the Annual Report and Accounts. They are offered for sale at a price based on NAV adjusted to reflect any applicable dealing charges plus an initial charge. Class A, Class I and Class Z shares may also be made available in Euro, Sterling or US Dollar hedged versions. The Investment Manager will generally undertake currency hedging to reduce the hedged versions of Class A, Class C, Class I and Class Z Shares exposure to the fluctuations of the base currency of the relevant Fund against the currency of hedging but in any event such hedging will not exceed 105% of the Net Asset Value of the relevant Share Class. The Investment Manager will seek to achieve this hedging by using financial swaps, futures, forward currency exchange contracts, options and other similar derivative transactions deemed appropriate in its discretion but which are within the limits laid down by the CSSF. If, due to market movements, a Class is more than 105% hedged a reduction to such exposure will be sought within an appropriate time scale, subject to market conditions and the best interests of the shareholders of that Class. 3.2 A share class Class A shares are available to all investors. 3.3 B share class Class B shares are subject to a Contingent Deferred Sales Charge as well as an additional annual Distributor Fee of 1%. Class B Shares were first offered from 19 April 1993 and were closed to new subscriptions from 1 March 2006. 3.4 D share class Class D shares are available to all investors. Class D shares are expressed in British Pounds (GBP) and were first offered from 24 March 2006 and it is the intention of the Board of Directors to apply annually for UK Distributor Status for such shares. The UK taxation authorities have approved the UK Distributor Status application that the Company made for the year ended 30 September 2007. UK Distributor Status is granted retrospectively by the UK taxation authorities. The Board of Directors intend to apply to the UK taxation authorities for UK Distributor Status for the year ended 30 September 2008 and for subsequent periods if the Board of Directors deem it appropriate to do so. Distributions on the D share class are subject to equalisation. Equalisation applies only to shares purchased during the distribution period (Group 2 shares). It is the average amount of income included in the purchase price of Group 2 shares. 3.5 I share class Class I shares are intended for Institutional Investors (as defined in the Prospectus) with an initial minimum investment limit of US$ 1 million and a subsequent minimum limit of US$ 10,000. They are subject to a reduced rate of Tax dAbonnement of 0.01% per annum. 3.6 Z share class Class Z shares are intended for Institutional Investors (as defined in the Prospectus) with an initial minimum investment limit of US$ 1 million and a subsequent minimum limit of US$ 10,000. They are not subject to a management fee or an initial charge and benefit from a reduced rate of Tax DAbonnement of 0.01% per annum. 3.7 Switches Investors may switch their shares in one Fund into Shares of the same or another Class in another Fund. A charge payable to the Global Distributor of up to 1% of the Net Asset Value of the Shares being switched may be made. Investors may not switch into Class B shares unless they are switching from another class B shareholding and the fund being switched into has Class B shares in issue. Switches can only be made where the investors meets the investment requirements of the share class they wish to switch into. Switches into Class D shares within the same Fund from Classes A, B, I or Z shares, are reflected in the number of shares issued and redeemed applicable to each share class but the related monetary value is not included in the total value of proceeds from shares issued and payments for shares redeemed as shown in the Statement of Changes in Net Assets in the financial statements.
4 Expenses 4.1 Administration fee Administration fees will not exceed 0.05% per annum (plus VAT, if any) of the NAV of the Fund as determined on the last dealing day of each month with a minimum amount payable of 32,500 per annum. 4.2 Custodian fees The Custodian Bank receives a safekeeping fee based on the market value of the stock involved and where it is registered, which will not exceed 2% per annum (plus VAT, if any) of the net assets of the Company as determined on the last dealing day of the month. The custodian also receives transaction fees based on the number of transactions made by each Fund and reasonable out of pocket expenses.
Aberdeen Global
119
4.3 Distribution fees Class B shares are subject to an annual distributor fee of 1% in lieu of an initial sales charge. These fees are accrued daily and paid monthly in arrears. 4.4 Domiciliary agent, registrar, paying and transfer agent fees The Domiciliary and Paying Agent fees will not exceed 0.4% per annum of the net assets of the Company as determined on the last dealing day of each month. The Registrar and Transfer Agent fees will not exceed 0.1% per annum of the net assets of the Company as determined on the last dealing day of each month. 4.5 Management company fees The Management Company receives a fee which will not exceed 0.04% per annum of the net assets of the Company. Currently the fee is 0.015% per annum of the Companys net assets. 4.6 Management fees Aberdeen International Fund Managers Limited (the Investment Manager) is entitled to receive investment management fees calculated on the Net Asset Value of the Funds, accrued daily. To the extent that any of the net assets are separately managed by subsidiaries of Aberdeen Asset Management PLC then the investment management fee is rebated to the value of the subsidiaries management fee charge made to the underlying holding. The following management fee rates were applicable as at 30 September 2008: Classes of shares (%) Fund A B D I American Opportunities 1.50 1.50 1.50 1.00 Asia Pacific 1.75 1.75 1.75 1.00 Asia Pacific and Australasian Bond 1.25 1.25 1.25 0.75 Asia Pacific and Japan 1.75 n/a 1.75 1.00 Asian Smaller Companies 1.75 n/a 1.75 1.00 Australasian Equity 1.50 1.50 1.50 1.00 China Opportunities 1.75 n/a 1.75 1.00 Emerging Markets * 1.50 1.50 1.50 1.00 Emerging Markets Bond 1.50 1.50 1.50 1.00 Emerging Markets Smaller Companies 1.75 n/a 1.75 1.00 European Equity 1.50 1.50 1.50 1.00 European High Yield Bond 1.25 1.25 1.25 0.75 European Opportunities (Ex UK) 1.50 n/a 1.50 1.00 High Yield Bond * 1.25 n/a 1.25 0.75 India Opportunities 1.75 n/a 1.75 1.00 Japan Smaller Companies 1.50 n/a 1.50 1.00 Japanese Equity 1.50 1.50 1.50 1.00 Responsible World Equity 1.50 n/a 1.50 1.00 Sterling Corporate Bond 1.00 n/a 1.00 0.50 Sterling Financials Bond 0.75 n/a 0.75 0.50 Technology 1.75 1.75 1.75 1.00 UK Opportunities 1.50 1.50 1.50 1.00 World Bond 0.90 n/a 0.90 0.40 World Equity 1.50 1.50 1.50 1.00 *With effect from 1 October 2008, the management fee for Emerging Markets Class A, B and D will be 1.75% and for High Yield Bond Class A and D will be 1.50% and Class I will be 0.85%. Class Z shares are not subject to any investment management fee charge. 4.7 Operational expenses Operational expenses represent other amounts paid by the Company relating to the operation of the Funds. They include legal fees, audit fees, Directors fees, cost of printing and distributing the prospectuses and annual and half yearly financial statements, fees in connection with obtaining or maintaining any registration or authorisation of the Company with any governmental agency or stock exchange as well as the cost of publication of share prices.
120
Aberdeen Global
4.8 Expense caps On 30 June 2007, the expense cap of 2.75% for each Fund was removed. The Manager now considers the competitive position of each individual fund relative to comparable funds in similar sectors. It should be noted that Japan Equity still has a cap of 2.25% and Asia Pacific and Australasian Bond has a cap of 1.75% of total net assets which will remain in place until Shareholders are advised otherwise. 4.9 Annual taxation The Company is liable in Luxembourg to a Tax dAbonnement of 0.05% per annum for the Class A, B and D shares and 0.01% per annum for Class I and Z shares. This is accrued daily and payable quarterly on the basis of the value of the net assets of the Company at the end of the relevant quarter. 5 Dividends (Distribution Class AND UK DISTRIBUTOR CLASS only) For the Class D-1 and Class D-2 shares the distributions have been split into Group 1 and Group 2 distributions. Group 1 shares are shares owned prior to the start of the distribution period and Group 2 shares are shares purchased during the distribution period. Distributions on the Class D shares are also subject to equalisation. Asia Pacific (expressed in GBP) The Directors declared an annual dividend for the Fund as listed below, for the period 1 October 2007 to 30 September 2008 to all shareholders on record on the last day of September 2008. Date September 2008 Class D-2 Net Income 0.319583 0.210717 Equalisation 0.108866 Distribution Payable 0.319583 0.319583
Group 1 Group 2
Asia Pacific and Australasian Bond (expressed in USD) The Directors declared quarterly dividends for the Fund as listed below, for the period 1 October 2007 to 30 September 2008 to all shareholders on record on the last day of the relevant quarter. Date December 2007 March 2008 June 2008 September 2008 Class A-1 0.017372 0.051458 0.012996 0.000000 Class B-1 0.007021 0.043757 0.001065 0.000000
Asian Smaller Companies (expressed in GBP) The Directors declared an annual dividend for the Fund as listed below, for the period 1 October 2007 to 30 September 2008 to all shareholders on record on the last day of September 2008. Date September 2008 Class D-2 Net Income 0.211054 0.154865 Equalisation 0.056189 Distribution Payable 0.211054 0.211054
Group 1 Group 2
China Opportunities (expressed in GBP) The Directors declared an annual dividend for the Fund as listed below, for the period 1 October 2007 to 30 September 2008 to all shareholders on record on the last day of September 2008. Date September 2008 Class D-2 Net Income 0.052180 0.047174 Equalisation 0.005006 Distribution Payable 0.052180 0.052180
Group 1 Group 2
Emerging Markets (expressed in GBP) The Directors declared an annual dividend for the Fund as listed below, for the period 1 October 2007 to 30 September 2008 to all shareholders on record on the last day of September 2008. Date September 2008
Aberdeen Global
Group 1 Group 2
Class D-2 Net Income 0.185136 0.143127
Equalisation 0.042009
Distribution Payable 0.185136 0.185136

121
Emerging Markets Smaller Companies (expressed in GBP) The Directors declared an annual dividend for the Fund as listed below, for the period 1 October 2007 to 30 September 2008 to all shareholders on record on the last day of September 2008. Date September 2008 Class D-2 Net Income 0.077114 0.070203 Equalisation 0.006911 Distribution Payable 0.077114 0.077114
Group 1 Group 2
Emerging Markets Bond (expressed in USD) The Directors declared monthly dividends for the Fund as listed below, for the period 1 October 2007 to 30 September 2008 to all shareholders on record on the last day of the relevant month. Date October 2007 November 2007 December 2007 January 2008 February 2008 March 2008 April 2008 May 2008 June 2008 July 2008 August 2008 September 2008 Class A-1 0.082322 0.102040 0.080961 0.072040 0.095467 0.090378 0.087358 0.092555 0.076989 0.088353 0.082594 0.084356 Class B-1 0.066100 0.089607 0.066461 0.056899 0.070193 0.088091 0.073870 0.084837 0.062804 0.074405 0.068071 0.070348 Class I-1 0.095926 0.111009 0.089991 0.076204 0.103868 0.099149 0.096031 0.098384 0.085904 0.096677 0.090694 0.084783
European High Yield Bond (expressed in EUR or as otherwise stated) The Directors declared monthly dividends for the Fund as listed below, for the period 1 October 2007 to 30 September 2008 to all shareholders on record on the last day of the relevant month. Date October 2007 November 2007 December 2007 January 2008 February 2008 March 2008 April 2008 May 2008 June 2008 July 2008 August 2008 September 2008 Class A-1 0.047135 0.061116 0.053071 0.053329 0.050466 0.037876 0.056999 0.042817 0.045019 0.053711 0.050474 0.051408 Class B-1 0.037522 0.054022 0.045958 0.046917 0.039530 0.037379 0.051010 0.037426 0.038637 0.047715 0.044429 0.045532
122
Aberdeen Global
Date October 2007 November 2007 December 2007 January 2008 February 2008 March 2008 April 2008 May 2008 June 2008 July 2008 August 2008 September 2008
Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2
Class D-1 Net Income GBP 0.031443 0.023803 0.043622 0.018974 0.040206 0.010413 0.047065 0.025242 0.038894 0.012561 0.028010 0.019660 0.045320 0.016518 0.040857 0.020255 0.029846 0.003826 0.036936 0.016456 0.039295 0.012081 0.043084 0.009293
Equalisation GBP 0.007640 0.024648 0.029793 0.021823 0.026333 0.008350 0.028802 0.020602 0.026020 0.020480 0.027214 0.033791
Distribution Paid/Payable GBP 0.031443 0.031443 0.043622 0.043622 0.040206 0.040206 0.047065 0.047065 0.038894 0.038894 0.028010 0.028010 0.045320 0.045320 0.040857 0.040857 0.029846 0.029846 0.036936 0.036936 0.039295 0.039295 0.043084 0.043084
Date June 2008 July 2008 August 2008 September 2008
Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2
Class D-2 Net Income GBP 0.051371 0.035856 0.063913 0.058163 0.068474 0.041612 0.075627 0.056900
Equalisation GBP 0.015515 0.005750 0.026862 0.018727
Distribution Paid/Payable GBP 0.051371 0.051371 0.063913 0.063913 0.068474 0.068474 0.075627 0.075627
European Opportunities (Ex UK) (expressed in GBP) The Directors declared an annual dividend for the Fund as listed below, for the period 1 October 2007 to 30 September 2008 to all shareholders on record on the last day of September 2008. Class D-2 Net Income GBP 0.116436 0.078652 Equalisation GBP 0.037784 Distribution Payable GBP 0.116436 0.116436
Date September 2008
Group 1 Group 2
Aberdeen Global
123
High Yield Bond (expressed in GBP) The Directors declared quarterly dividends for the Fund as listed below, for the period 1 October 2007 to 30 September 2008 to all shareholders on record on the last day of the relevant quarter. Date December 2007 March 2008 June 2008 September 2008 Class D-1 Net Income 0.023695 0.004865 0.021404 0.011998 0.020669 0.009721 0.022429 0.010296 Equalisation 0.018830 0.009406 0.010948 0.012133 Distribution Paid/Payable 0.023695 0.023695 0.021404 0.021404 0.020669 0.020669 0.022429 0.022429
Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2
Japanese Equity (expressed in GBP) The Directors declared an annual dividend for the Fund as listed below, for the period 1 October 2007 to 30 September 2008 to all shareholders on record on the last day of September 2008. Date September 2008 Class D-2 Net Income 0.001101 0.000569 Equalisation 0.000532 Distribution Payable 0.001101 0.001101
Group 1 Group 2
Sterling Corporate Bond (expressed in GBP) The Directors declared monthly dividends for the Fund as listed below, for the period 1 October 2007 to 30 September 2008 to all shareholders on record on the last day of the relevant month. Date October 2007 November 2007 December 2007 January 2008 February 2008 March 2008 April 2008 May 2008 June 2008 July 2008 August 2008 September 2008 Class D-1 Net Income 0.002573 0.002255 0.004240 0.001244 0.006511 0.005101 0.004508 0.002295 0.003596 0.001406 0.005930 0.004056 0.003804 0.002885 0.003728 0.003265 0.004211 0.001727 0.003059 0.000972 0.001756 0.000332 0.001219 0.000063 Equalisation 0.000318 0.002996 0.001410 0.002213 0.002190 0.001874 0.000919 0.000463 0.002484 0.002087 0.001424 0.001156 Distribution Paid/Payable 0.002573 0.002573 0.004240 0.004240 0.006511 0.006511 0.004508 0.004508 0.003596 0.003596 0.005930 0.005930 0.003804 0.003804 0.003728 0.003728 0.004211 0.004211 0.003059 0.003059 0.001756 0.001756 0.001219 0.001219
Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2 Group 1 Group 2
124
Aberdeen Global
UK Opportunities (expressed in GBP) The Directors declared a six-monthly dividend for the Fund as listed below, for the period 1 October 2007 to 30 September 2008 to all shareholders on record on the last day of the relevant month. Date March 2008 September 2008 Class D-1 Net Income 0.100000 0.061200 0.179606 0.109757 Equalisation 0.038800 0.069849 Distribution Paid/Payable 0.100000 0.100000 0.179606 0.179606
Group 1 Group 2 Group 1 Group 2
World Bond (expressed in GBP) The Directors declared a six-monthly dividend for the Fund as listed below, for the period 1 October 2007 to 30 September 2008 to all shareholders on record on the last day of the relevant month. Date March 2008 September 2008 Class D-1 Net Income 0.020951 0.011791 0.018367 0.007207 Equalisation 0.009160 0.011160 Distribution Paid/Payable 0.020951 0.020951 0.018367 0.018367
Group 1 Group 2 Group 1 Group 2
World Equity (expressed in GBP) The Directors declared an annual dividend for the Fund as listed below, for the period 1 October 2007 to 30 September 2008 to all shareholders on record on the last day of September 2008. Date September 2008 6 Class D-2 Net Income 0.090802 0.058223 Equalisation 0.032579 Distribution Paid/Payable 0.090802 0.090802
Group 1 Group 2
Directors interests None of the Directors were materially interested in any contracts of significance subsisting with the Company either during the period or at 30 September 2008. None of the Directors have service contracts with the Company.
Changes in investment portfolio The schedule of changes in the investment portfolio is available on request from the Registered Office in Luxembourg and from the local agents listed under Management and Administration and in the Prospectus.
Transactions with connected persons Transactions with connected persons outlined in the previous notes (4.3 and 4.6) have been entered into in the ordinary course of business and on normal commercial terms. Soft commission/Commission sharing The Manager has entered into soft commission/commission sharing arrangements with brokers in respect of which certain goods and services used to support investment decision making were received. The Manager does not make direct payment for these services but transacts an agreed amount of business with the brokers on behalf of the Company and commission is paid on these transactions. The goods and services utilised for the Fund include research and advisory services; economic and political analysis, portfolio analysis including valuation and performance measurement, market analysis data and quotation services; computer hardware and software incidental to the above goods and services and investment related publications.
Aberdeen Global
125
10 Equalisation on the issue and redemption of shares Equalisation is operated in connection with the issue and redemption of shares. It represents the income element included in the price for the issue and redemption of shares.
11 Aberdeen Global India Opportunities Fund (Mauritius) Limited Aberdeen Global India Opportunities Fund (Mauritius) Limited, as a Mauritian company, is subject to Mauritian Income Tax which is disclosed on page 73.
12 Contingent liability The Company has a US$50 million overdraft facility with Bank of America to finance short-term timing differences arising from subscriptions and redemptions. Any liability arising on this account will be recoverable from subscribers to the Company and is therefore not reflected in the financial statements of the Company.
13 Securities lending Aberdeen Global has entered into a securities lending program for a number of equity and fixed income Funds. In return for making securities available for loan throughout the year, the Funds participating in the programs received fees which are reflected in the Financial Statements of each participating Fund under the other income caption. The Company has appointed eSec Lending as agent for the equity and fixed income lending program. As remuneration for this agency role, eSec Lending receives 20% of the fees from the Securities Lending program. The Company receives 60% and the Investment Manager recieves the remaining 20% of the fees from the Securities Lending program. All security loans are fully collateralised. The amount of securities on loan and collateral value at 30 September 2008 are: Fund Asia Pacific Asian Smaller Companies Australasian Equity China Opportunities European Equity European High Yield Bond Emerging Markets Emerging Markets Smaller European Opportunities (Ex UK) High Yield Bond Japan Smaller Companies Japanese Equity Responsible World Equity Technology UK Opportunities World Equity Amount on Loan Counterparty $176,237,354 Fortis Bank (Nederland) N.V. $11,393 Societe Generale $23,678,167 Deutsche Bank AG $51,232,599 BNP Paribas Arbitrage $8,301,563 Deutsche Bank AG $26,970,584 Credit Suisse Securities (Europe) Ltd $42,044,753 Fortis Bank (Nederland) N.V. $3,943,691 Fortis Bank (Nederland) N.V. $17,207,479 Deutsche Bank AG $3,040,404 Credit Suisse Securities (Europe) Ltd $9,568,682 Deutsche Bank AG $8,319,601 Fortis Bank (Nederland) N.V. $3,276,035 Deutsche Bank AG $3,789,493 Deutsche Bank AG $41,040,431 HSBC Bank Plc $89,119,095 Deutsche Bank AG Collateral Value $186,377,605 $12,000 $24,608,960 $53,887,250 $8,769,064 $28,481,742 $44,351,800 $4,302,800 $18,107,050 $3,193,660 $10,116,542 $8,754,496 $3,458,734 $3,997,485 $43,092,453 $93,952,951
126
Aberdeen Global
14 Post year end events A) Change of name The following Funds changed their names on 1 October 2008: Fund American Opportunities Asia Pacific Asia Pacific and Australasian Bond China Opportunities Emerging Markets European High Yield Bond European Opportunities (Ex UK) India Opportunities Japan Smaller Companies UK Opportunities B) Class C share launch On 1 October 2008, the following Funds issued Class C shares: Asia Pacific Emerging Markets World Equity Class C shares are available as net investment income distribution shares (Class C-1 shares) and/or net accumulation shares (Class C-2 shares) in the base currency of the Fund. These classes of shares are only accessible to investors whose investment is covered by a suitable agreement with the Investment Manager or one of its associates. A contingent deferred sales charge of 1.00% of the share price of the shares being redeemed, is imposed on Class C shares and the hedged versions of Class C shares, if the shareholder redeems their shares within one year of purchase. The contingent deferred sales charge will be calculated as a percentage of the lesser of the relevant share price of the shares on the date of redemption or the date of issue, exclusive of reinvestments. Investors should note that in the case of Class C shares and their hedged versions, a distributor fee of 1.00% per annum of the Net Asset Value of the relevant Class is payable by the Company to the Global Distributor for providing distribution services (i.e. co-ordinating sales and marketing activities). This fee is accrued daily and paid monthly in arrears. The Class C shares are liable in Luxembourg to a Tax dAbonnement of 0.05% per annum. This is accrued daily and payable quarterly on the basis of the value of the net assets of the relevant Fund attributable to such class of share at the end of the relevant quarter. New Name American Equity Asia Pacific Equity Asian Bond Chinese Equity Emerging Markets Equity Euro High Yield Bond European Equity (Ex UK) Indian Equity Japanese Smaller Companies UK Equity
Aberdeen Global
127
Report of the Rviseur dEntreprises
To the Shareholders of Aberdeen Global (the SICAV) Following our appointment by the annual general meeting of the shareholders of 21 February 2008, we have audited the accompanying financial statements of Aberdeen Global and each of its sub-funds, which comprise the statement of net assets and the portfolio statements as at 30 September 2008 and the statement of operations, the statement of changes in net assets and statement of share transactions for the year then ended, and a summary of significant accounting policies and other explanatory notes to the financial statements. Board of Directors responsibility for the financial statements The Board of Directors of the SICAV is responsible for the preparation and fair presentation of these financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements. This responsibility includes: designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Responsibility of the Rviseur dEntreprises Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted by the Institut des Rviseurs dEntreprises. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the judgement of the Rviseur dEntreprises, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the Rviseur dEntreprises considers internal control relevant to the entitys preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements give a true and fair view of the financial position of Aberdeen Global and of each of its sub-funds as of 30 September 2008, and of the results of their operations and changes in their net assets for the year then ended in accordance with the Luxembourg legal and regulatory requirements relating to the preparation of the financial statements. Other matter Supplementary information included in the annual report has been reviewed in the context of our mandate but has not been subject to specific audit procedures carried out in accordance with the standards described above. Consequently, we express no opinion on such information. However, we have no observation to make concerning such information in the context of the financial statements taken as a whole.
KPMG Audit S. r.l. Rviseurs dEntreprises
D.G. Robertson
Luxembourg, 10 December 2008
128
Aberdeen Global
Management and Administration
Fund Managers Aberdeen Asset Managers Limited One Bow Churchyard, London, EC4M 9HH, UK. Authorised and regulated by the Financial Services Authority. Aberdeen Global - American Opportunities Fund Aberdeen Global - Emerging Markets Fund (excluding Asian assets) Aberdeen Global - Emerging Markets Bond Fund Aberdeen Global - Emerging Markets Smaller Companies Fund(excluding Asian assets) Aberdeen Global - European Equity Fund Aberdeen Global - European High Yield Bond Fund Aberdeen Global - European Opportunities (Ex UK) Fund Aberdeen Global - High Yield Bond Fund Aberdeen Global - Responsible World Equity Fund Aberdeen Global - Sterling Corporate Bond Fund Aberdeen Global - Sterling Financials Bond Fund Aberdeen Global - Technology Fund Aberdeen Global - UK Opportunities Fund Aberdeen Global - World Bond Fund Aberdeen Global - World Equity Fund
Aberdeen Asset Management Asia Limited, 21 Church Street, #0101 Capital Square Two, Singapore 049480 Regulated by the Monetary Authority of Singapore. Aberdeen Global - Asia Pacific Fund Aberdeen Global - Asia Pacific and Australasian Bond Fund Aberdeen Global - Asian Smaller Companies Fund Aberdeen Global - Australasian Equity Fund Aberdeen Global - China Opportunities Fund Aberdeen Global - Emerging Markets Fund (Asian assets only) Aberdeen Global - Emerging Markets Smaller Companies Fund (Asian assets only) Aberdeen Global - India Opportunities Fund Aberdeen Global - Japan Smaller Companies Fund Aberdeen Global - Japanese Equity Fund
Aberdeen Global
129
Management and Administration continued
CHAIRMAN
Christopher G Little Aberdeen Global 49 Avenue JF Kennedy L-1855 Luxembourg Grand Duchy of Luxembourg
Registered Office Aberdeen Global, 49 Avenue JF Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg Management Company RBS (Luxembourg) S.A., 33 rue de Gasperich, Hesperange, L-5826, Luxembourg
The list of the funds managed by the Management Company, may be obtained, on simple request, at the registered office of the Management Company.
DIRECTORS
Hugh Young Administrator Aberdeen Asset Management Asia Limited 21 Church Street, #0101 Capital Square Two, BNP Paribas Fund Services S.A., 33 rue de Gasperich, Howald Hesperange, L-1085 Luxembourg, Grand Duchy of Luxembourg Singapore 049480 Bev Hendry Aberdeen Asset Management 37th Floor 1735 Market Street Philadelphia PA 19103, USA Martin J Gilbert Aberdeen Asset Managers Limited 10 Queens Terrace Aberdeen AB10 1YG United Kingdom David van der Stoep Aberdeen Global 49 Avenue JF Kennedy L-1855 Luxembourg Grand Duchy of Luxembourg Gary Marshall Aberdeen Asset Managers Limited One Bow Churchyard London EC4M 9HH United Kingdom Neville Miles Aberdeen Asset Management Limited Level 6 201 Kent Street Sydney NSW 2000 Domiciliary, Paying, Registrar & Transfer Agent State Street Bank Luxembourg S.A., 49 Avenue JF Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg Investment Manager & Distributor Aberdeen International Fund Managers Limited, Rooms 26-05-06, 26th Floor, Alexandra House, 18 Chater Road, Central, Hong Kong Custodian Bank BNP Paribas Securities Services Luxembourg Branch, 33 rue de Gasperich, Howald - Hesperange, L-1085 Luxembourg, Grand Duchy of Luxembourg Auditor KPMG Audit S. r. l., 9 Alle Scheffer, L2520 Luxembourg, Grand Duchy of Luxembourg Legal Advisors to the Company Elvinger Hoss & Prussen, 2 Place Winston Churchill, L1340, Luxembourg, Grand Duchy of Luxembourg German Paying Agent Marcard, Stein & Co AG, Ballindamm 36, 20095 Hamburg, Germany Dutch Representative Fastnet Netherlands N.V., Herengracht 548, 1000 AG Amsterdam, The Netherlands Austrian Paying and Information Agent and Tax Representative Raiffeisen Zentralbank Osterreich Aktiengesellschaft (RZB AG), Am Stadtpark 9, 1030 Vienna, Austria Swiss Representative Fortis Foreign Fund Services AG, Rennweg 57, Postfach CH 8021 Zrich, Switzerland Swiss Paying Agent Fortis Bank (Switzerland) SA, Niederlassung Zurich, Rennweg 57, Postfach CH 8021 Zrich, Switzerland Irish Facilities Agent Aberdeen Fund Management Ireland Limited, Guild House, Guild Street, IFSC, Dublin 1, Ireland Italian Paying Agent and Correspondent Bank Banco Popolare Commercio e Industria SCRL, Via Moscova, 33, 20121, Milan, Italy Belgian Paying Agent Fastnet Belgium s.a/n.v Avenue du Port, Havenlaan 86C b, 320 B-1000 Brussels, Belgium Spanish Distributor Allfunds Bank SA, Calle Estafeta 6, Complejo Plaza de la Fuente, Edificio 3 (La Moraleja), C.P. 28109, Alcobendas, Madrid, Spain
130
Aberdeen Global
General Information
Further Information on Aberdeen Global can be obtained from: Aberdeen Asset Managers Limited, (UK Distributor) 1 Bow Churchyard, London EC4M 9HH Telephone: +44 20 7463 6000 www.aberdeen-asset.com Aberdeen International Fund Managers Limited (Global Distributor and Investment Manager) Rooms 26-05-06, 26th Floor, Alexandra House 18 Chater Road Central, Hong Kong Telephone: +852 2103 4700 Fax: +852 2827 8908
Additional information for investors in Germany Applications for the return and replacement of a Funds shares can be submitted to the German paying agent. All payments intended for a shareholder, including the proceeds of withdrawal and any dividends, can be routed, at the shareholders request, via the German paying agent and/or paid out in cash from the German paying agent. The full and simplified Prospectus and the Constitution of Aberdeen Global and the audited end-of-year reports, the non-audited half-yearly reports and the issue withdrawal prices can be obtained free of charge from the information agent. The issue with call price and the interim profit are published in the stock exchange periodical and in the Handelsblatt commercial journal. Any messages to shareholders are published in the stock exchange periodical. The Schedule of Changes in the investment portfolio is also available from the Paying Agent. Furthermore, the other documents which can be examined free of charge at the registered office of Aberdeen Global can also be examined free of charge at the information agent. The payment and information centre for Aberdeen Global in Germany is: Marcard, Stein & Co AG, Ballindamm 36, 20095 Hamburg, Germany Supplementary information for investors in Switzerland Conditions for shares marketed in Switzerland or from a base in Switzerland. For shares marketed in Switzerland or from a base in Switzerland, the following is applicable in addition to the full and simplified Prospectus conditions: Representative in Switzerland: Fortis Foreign Fund Services AG Rennweg 57 Postfach CH 8021 Zrich Switzerland Swiss Paying Agent: Fortis Bank (Switzerland) SA Niederlassung Zurich Rennweg 57 Postfach CH 8021 Zrich Switzerland
Place of fulfilment and jurisdiction For shares marketed in Switzerland, the place of fulfilment and jurisdiction are established at the head office of the representative, in Zrich. Reference sources for fund publications The constitution documents, full and simplified Prospectus, annual and half-yearly reports and a schedule of purchases and sales for the Fund can be obtained free of charge from the representatives Zrich branch. Channels of publication Notices for the Fund in Switzerland are published in the Swiss Handelsamtblatt official commercial journal and in the Neue Zrcher Zeitung. Rate publications in Switzerland are announced each day in the Neue Zrcher Zeitung.
Aberdeen Global
131
General Information continued
European Savings Directive From 1 July 2005 distributions and proceeds on redemption from UCITS may be reportable or subject to withholding tax in accordance with Council Directive 2003/48/EC, the EU Savings Directive (the Directive). Aberdeen Global is a UCITS for the purposes of the Directive. Only savings income payments are reportable or subject to withholding tax. Distributions are savings income payments if a fund holds more than 15% of its assets in eligible money debts and proceeds on redemption are savings income payments if a fund holds more than 40% of its assets in eligible money debts. For the purposes of the Directive below we show the percentages of each of the Funds assets which were invested in eligible money debts as defined in Luxembourg. 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 1.78% 2.57% 99.12% 6.24% 4.06% 1.32% 1.97% 92.16% 3.09% 1.69% 99.62% 1.64% 92.93% 0.92% 2.01% 1.05% 1.32% 53.32% 90.24% 1.03% 1.25% 91.21% 3.15%
It should be noted that this is for information purposes only. Responsibility for compliance with the Directive remains that of the paying agent as defined by the Directive. The calculation is based on the Luxembourg interpretation of the rules.
132
Aberdeen Global
Further Information
Aberdeen Global Aberdeen Global is an open-ended investment company incorporated with limited liability under the laws of the Grand Duchy of Luxembourg and organised as a socit dinvestissement capital variable (a SICAV) with UCITS status (an Undertaking for Collective Investment in Transferable Securities as defined in the European Union Directive 85/611/EEC of 20 December 1985 as amended). Aberdeen Global aims to provide investors with a broad international range of diversified actively-managed Funds. There are 23 active subfunds in total, each with its own specific investment objectives and individual portfolios, offering investors the opportunity of exposure to selected areas or to conveniently build a diversified global stock and bond portfolio to meet specific investment goals. The overall strategy of Aberdeen Global and the separate Funds is to seek diversification through investment primarily in transferable securities.
Aberdeen Asset Management PLC Aberdeen Asset Management PLC is an international investment management group, managing assets for both institutions and private investors from offices around the world. Our goal is to deliver superior fund performance across diverse asset classes in which we believe we have a sustainable competitive edge. Listed on the London Stock Exchange, we manage fixed income and equities (quoted and private) in segregated, closed and open-ended pooled structures. Over two decades we have expanded through a combination of organic growth and acquisition, first in the UK, then by seeking selectively to manage and (or) market funds in countries in which we already invest. We operate flat management structures to facilitate local decisionmaking, underpinned by clear lines of control and central reporting. Our investment style is driven by fundamental analysis, with an emphasis on active management and team decision-making supported by strong process disciplines.
Aberdeen Global
133
Aberdeen Asset Managers Limited (UK Distributor) 10 Queens Terrace, Aberdeen AB10 1YG Tel +44 (0)1224 631999 Fax +44 (0)1224 647010 One Bow Churchyard, London EC4M 9HH Tel +44 (0)20 7463 6000 Fax +44 (0)20 7463 6001
Authorised and regulated by The Financial Services Authority Member of the Aberdeen Asset Management Group of Companies
Aberdeen Asset Management Asia Limited 21 Church Street, #01-01 Capital Square Two, Singapore 049480 Tel +65 6395 2700 Fax +65 6535 7159
Regulated by The Monetary Authority of Singapore Member of the Aberdeen Asset Management Group of Companies
Aberdeen International Fund Managers Limited (Distributor and Investment Manager) Rooms 26-05-06, 26th Floor, Alexandra House 18 Chater Road, Central, Hong Kong Tel +852 2103 4700 Fax +852 2827 8908
Regulated by The Securities and Futures Commission of Hong Kong
Shareholder Service Centre State Street Bank Luxembourg S.A. (Domiciliary Agent, Registrar, Paying and Transfer Agent) (referred to as the Transfer Agent) 49, Avenue J. F. Kennedy L-1855 Luxembourg Grand Duchy of Luxembourg For more information on Aberdeen Global. Please contact: Tel +44 (0)1224 425255 (UK Shareholders) Tel +352 46 40 1 820 (Outside UK) Fax 00 352 245 29 056
05 1001_1208

Aberdeen Global - Annual Report and Accounts 20080930

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Aberdeen Global - Annual Report and Accounts 20080930

Transféré par

Droits d'auteur :

Formats disponibles

Annual Report and Accounts

Investment Managers Review

9 December 2008 9 December 2008

Net Asset Value History

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

Fund American Opportunities

Asia Pacific and Australasian Bond

Asia Pacific and JapanA Asian Smaller Companies

Australasian Equity China Opportunities

Emerging Markets BondB

Emerging Markets Smaller CompaniesC

European High Yield Bond

Net Asset Value History continued

Japan Smaller CompaniesE

Responsible World EquityF

Sterling Corporate Bond Sterling Financials Bond Technology

World Bond World Equity

Exchange Rates - US$ US$ - AUD - - US$ US$ - JPY

30.9.08 1.799900 1.240402 1.256150 1.432870 105.172510

30.9.07 2.031300 1.134003 1.431800 1.418704 115.207010

30.9.06 1.870000 1.340856 1.475950 1.266977 117.951872

Summary of Historic Information

Net Asset Value 30.09.08 Fund Base Currency (000)

Net Asset Value 30.09.07 (000)

Net Asset Value 30.09.06 (000)

Aberdeen Global - Combined Statements

10,554 19,708 69,595 1 26,766 126,624 9,876,716

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

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

Aberdeen Global American Opportunities Fund

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

Aberdeen Global American Opportunities Fund

Market value Description Quantity US$000

Percentage of total net assets %

1.58 1.29 1.16 1.35 0.96 1.39 1.40 9.13

1.84 1.70 2.05 2.26 1.49 1.17 0.80 11.31

2.37 1.76 2.17 2.99 1.90 1.35 12.54

2.73 2.53 1.57 1.99 1.25 1.80 1.46 1.16 14.49

Portfolio Statement continued

Market value Description Quantity US$000

Percentage of total net assets %

1.81 1.82 1.08 1.24 1.21 1.40 2.39 0.49 11.44

1.34 1.68 3.02

0.66 1.80 2.46 2.58 97.84 2.16 100.00

57,659 1,275 58,934

Aberdeen Global American Opportunities Fund

Aberdeen Global Asia Pacific Fund

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

Aberdeen Global Asia Pacific Fund

Market value Description Quantity US$000

Percentage of total net assets %

4.13 2.90 0.95 7.98

2.54 2.14 0.12 4.80

1.09 1.24 2.56 4.89

Portfolio Statement continued

Market value Description Quantity US$000

Percentage of total net assets %

1.27 1.45 2.72

2.76 1.67 4.13 2.14 3.10 3.00 3.42 1.51 21.73

0.65 0.15 0.78 3.98 2.15 7.71

0.09 0.14 0.13 0.32 0.09 0.77

0.97 1.84 3.11 5.92

2.41 1.85 4.26 97.73 2.27 100.00