ANW.L Regulatory News (ANW)

ABERDEEN NEW THAI INVESTMENT TRUST PLC

ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 28 FEBRUARY 2016

STRATEGIC REPORT

Financial Highlights

Overview

Launched in 1989, Aberdeen New Thai Investment Trust PLC (the "Company") is an investment trust with its Ordinary shares listed on the premium segment of the London Stock Exchange. The Company is an approved investment trust and aims to provide shareholders with a high level of long-term, above average capital growth through investment in Thailand.

The Company is governed by a board of directors, the majority of whom are independent, and has no employees. Like other investment companies, it outsources its investment management and administration to an investment management group, the Aberdeen Group, and other third party providers.

The Company does not have a fixed life but there is a discount monitoring period which operates annually during the last 12 weeks of the Company's financial year. In the 12 weeks ending 28 February 2016, the Ordinary shares traded at an average discount of 14.2% to the underlying net asset value per share (excluding income), therefore no special resolution to wind up the Company will be put to shareholders at the forthcoming AGM.

Management

The Company has appointed Aberdeen Fund Managers Limited ("AFML", " Manager", or "AIFM") as its alternative investment fund manager, which has in turn delegated certain responsibilities, including investment management, to Aberdeen Asset Management Asia Limited ("AAMAL" or "Investment Manager").

Financial Calendar

CHAIRMAN'S STATEMENT

Background and Results

Thai equities faced considerable pressure for most of the 12-month review period, as did those across emerging markets generally. Investors largely avoided the asset class amid a raft of negative sentiment. Plummeting commodity prices were a key concern, while uncertainty over the state of China's economy and the US Federal Reserve's mixed signals on interest rates further weighed on the Thai stock market. The faltering domestic economy did little to encourage investors. However, the New Year saw a turnaround as Thailand's markets rallied, proving an exception among their peers, but it was not enough to recoup earlier losses.

Against this backdrop, the Company's net asset value ("NAV") per Ordinary share fell by 9.5% on a total return basis, to 483.0p, compared to the sterling-adjusted decline in the benchmark, the Stock Exchange of Thailand Index, of 11.6%. The Company's Ordinary share price fell by 9.2% on a total return basis to 408p, reflecting a 13.9% discount to the NAV (excluding income) per Ordinary share.

Despite the challenging operating environment that has persisted in Thailand, and the wider region, over the last couple of years, your Company has maintained its record of long-term outperformance, delivering annualised returns of 14.5% over five years, compared to the benchmark's 10.0% gain.

Dividend

The revenue earnings per Ordinary share were 8.9p for the year ended 28 February 2016 and the Board is proposing to shareholders an increased final dividend per Ordinary share of 8.5p (2015 - 8.2p), paying out the majority of the Company's earnings in keeping with its dividend policy. If approved at the Annual General Meeting ("AGM") on 23 June 2016, the final dividend will be paid on 28 June 2016 to shareholders on the register as at 3 June 2016. The ex-dividend date will be 2 June 2016.

Overview

The military administration's efforts to return power to a democratically-elected government showed little urgency; the National Reform Council rejected the first draft constitution, delaying elections to mid-2017 at the earliest. Nonetheless, the superficial calm and stability established by the current regime were welcomed, given Thailand's propensity for frequent bouts of political upheaval. Meanwhile, the junta appeared committed to taking action to revive demand, boost the ailing economy and reduce corruption. The newly-appointed economic team, forged during August's cabinet reshuffle, was quick to act, announcing a slew of stimulus packages. Measures included soft loans, seed capital and income tax cuts, primarily to support small to medium-sized businesses, an extension of tax savings for long-term mutual funds, accelerating large infrastructure projects, and support for low to middle-income earners to buy homes. Later, the government also announced a supplementary budget of 56 billion baht and soft loans for farmers. These incentives seemed to have the desired effect on consumer sentiment at least; confidence began to recover late in 2015, rising for the first time in almost a year.

Despite the government's support, the economy was buffeted by headwinds on several fronts. The sluggish state of most of the world's large economies weighed heavily on Thailand's exports, which fell by 5.6% year-on-year in 2015. The rural population was hit particularly hard, given declining prices for agricultural products, such as rice and rubber, of which Thailand is a major exporter. This largely overshadowed the benefits of it being a net importer of oil at record-low prices. Domestic demand remained depressed, hampered by persistently elevated levels of household debt. The gloomy economic backdrop was further complicated by August's deadly bomb blast in central Bangkok, which hit tourist arrivals in the immediate aftermath, and the country's worst drought in a decade. The Bank of Thailand ("BoT") was compelled to downgrade its growth forecasts several times last year and, at the time of writing, had cut its GDP growth target for 2016 from 3.5% to 3.1%.

There were some bright spots, however. Tourism remained a key pillar of the economy, with arrivals rebounding swiftly following the bombing to climb by around 20% in 2015. The healthcare industry was similarly buoyant. Meanwhile, the drop in energy prices subdued inflationary pressures, leaving room for more accommodative monetary policy; the BoT cut interest rates twice in 2015. Elsewhere, the current account remained well in surplus and foreign reserves stayed at healthy levels, which helped limit the baht's slide - it held up better than many other emerging market currencies.

Outlook

Thailand's equity market has enjoyed a resurgence since the beginning of 2016, outperforming most of their regional peers. However, further bouts of volatility are likely as the year progresses, given institutional uncertainty the precarious state of the global economy, continued speculation over the US Federal Reserve's plans for interest rate hikes and the residual impact of prolonged low commodity prices. The domestic economy is unlikely to deviate significantly from its subdued pace of growth, especially in light of the sluggish state of exports. There is probably little chance of a sustained recovery in external demand in the near term; certainly as long as China's waning appetite for imported goods and services casts a shadow over the region's exporters. Meanwhile, lower private investment and consumer demand continue to put pressure on Thailand's economy. That said, the government's outlays should continue to provide support, while its focus on expediting infrastructure projects also bodes well.

Elsewhere, tourists look set to arrive in even greater numbers during 2016, providing a much-needed economic boost. The prevailing political 'peace and quiet' has helped improve confidence in Thailand as a destination, while also making life easier for the corporate sector. However, this has failed to stem criticism that the junta is actively delaying Thailand's return to democratic rule in a bid to retain power. Nevertheless, the relative calm should continue for the near term at least. It remains to be seen whether the prospect of elections, currently expected in mid-2017, unsettles this status quo.

Thailand has certainly faced its share of challenges over the past 12 months. Fundamentally, however, it remains in good shape, with healthy finances, a manageable level of foreign debt and robust financial institutions - which is more than can be said for many global economies. Meanwhile, its longer-term prospects remain attractive, particularly given the strategic significance of its location, bordering the rapidly-growing frontier markets of Cambodia, Laos and Myanmar.

Overall, the carefully-selected constituents of your portfolio are high-calibre, financially-sound companies, with good management, and excellent growth potential. Despite the tough operating conditions of late, your holdings have been largely resilient, with the majority either maintaining or increasing their full-year dividends for 2015. This is testament to the confidence management teams have in their respective businesses. I remain assured that your portfolio is well-positioned to reap rewards over the long term. Further details about your portfolio are available in the Investment Manager's Report.

Discount

The Board continues to monitor the discount of the Ordinary share price to the NAV per Ordinary share (excluding income) and will continue to pursue a policy of selective buybacks of shares where to do so would be in the best interests of shareholders. During the year ended 28 February 2016 the Company bought back and cancelled 903,143 Ordinary shares (2015 - 60,000 Ordinary shares), representing 4.3% of the Company's issued share capital at the start of the year.

Promotional Activities

Your Board continues to promote the Company through the Manager's promotional activities and the Company contributed £84,000 (including VAT) during the year ended 28 February 2016. The Board reviews regularly the impact of these promotional activities.

Board Changes

James Robinson, who has served as a Director since 2006, retires from the Board at the AGM. The Board should like to place on record its considerable thanks to James for his contribution to the Company's success, including in his role as Chairman of the Audit and Management Engagement Committee for eight years, and latterly as Senior Independent Director ("SID"). Clare Dobie is appointed as SID with effect from the conclusion of the AGM.

AGM

The AGM, which will be held at Bow Bells House, 1 Bread Street, London EC4M 9HH from 11.30am on 23 June 2016, provides shareholders with an opportunity to meet the Board and to ask any questions that they may have of either the Board or the Manager. I look forward to meeting as many shareholders as possible at the AGM which will be followed by a buffet lunch.

Nicholas Smith

Chairman

13 May 2016

OVERVIEW OF STRATEGY

Business Model

The business of the Company is that of an investment company which seeks to qualify as an investment trust for UK capital gains tax purposes. The Directors do not envisage any change in this activity in the foreseeable future.

Investment Objective

The Company aims to provide shareholders with a high level of long-term, above average capital growth through investment in Thailand.

Investment Policy

The Company's assets are invested in a diversified portfolio of securities (substantially in the form of equities or equity-related securities such as convertible securities and warrants) in companies, spread across a range of industries, which are quoted on the Stock Exchange of Thailand.

Risk Diversification

Delivering the Investment Policy

The Investment Manager follows a bottom-up investment process based on a disciplined evaluation of companies through direct visits by its fund managers and, accordingly, stock selection is the major source of added value. No stock is bought without the fund managers having first met management. The Investment Manager estimates a company's worth in two stages, quality then price. Quality is defined by reference to, amongst other factors, management, business focus, the balance sheet and corporate governance. Price is calculated by reference to key financial ratios, the market, the peer group and business prospects. Top-down investment factors are secondary in the Manager's portfolio construction with diversification, rather than formal controls, guiding stock and sector weights. Investments are not limited as to market capitalisation or sector weightings within Thailand.

The Investment Manager is authorised to invest up to 10% of the Company's net assets in any single stock although circumstances may occasionally arise when it may be in shareholders' interests to make an investment that exceeds this level.

The Company complies with Section 1158 of the Corporation Tax Act 2010 as amended and the requirements of S.I. 2011/2999, and does not invest more than 15% of its assets in the shares of any one company. The Company invests no more than 15% of its gross assets in other listed investment companies (including listed investment trusts).

The Company does not currently use derivatives but keeps this under review.

Gearing

The Company's gearing policy is that borrowings are short-term in nature and particular care is taken to ensure that any bank covenants permit maximum flexibility of investment policy. At the year end there was net gearing of 2.2% which compares with a maximum Board-imposed limit of 15%.

Benchmark

The Company's benchmark is the Stock Exchange of Thailand Index ("SET Index").

Key Performance Indicators ("KPIs")

The Board uses a number of financial performance measures to assess the Company's success in achieving its objective and determining the progress of the Company in pursuing its investment policy. The main KPIs identified by the Board in relation to the Company, which are considered at each Board meeting, are as follows:

Principal Risks and Uncertainties

There are a number of risks which, if realised, could have a material adverse effect on the Company and its financial position, performance and prospects. The Board has carried out a robust assessment of these risks, which include those that would threaten its business model, future performance and solvency. The principal risks associated with an investment in the Company's shares are published monthly in the Company's factsheet or they can be found in the pre-investment disclosure document ("PIDD") published by the AIFM, both of which are available from the Company's website: newthai-trust.co.uk.

The principal risks and uncertainties faced by the Company are reviewed annually by the Audit and Management Engagement Committee in the form of a detailed risk matrix and heat map and they are described in the table below, together with any mitigating actions.

Promoting the Company

The Board recognises the importance of promoting the Company to prospective investors both for improving liquidity and enhancing the value and rating of the Company's shares. The Board believes an effective way to achieve this is through subscription to, and participation in, the promotional programme run by the Aberdeen Group on behalf of a number of investment companies under its management. The Company's financial contribution to the programme is matched by the Aberdeen Group. The Aberdeen Group Head of Brand reports quarterly to the Board giving analysis of the promotional activities as well as updates on the shareholder register and any changes in the composition of that register.

The purpose of the programme is both to communicate effectively with existing shareholders and to gain new shareholders with the aim of improving liquidity and enhancing the value and rating of the Company's shares. Communicating the long-term attractions of the Company is key and therefore the Company also supports the Aberdeen Group's investor relations programme which involves regional roadshows, promotional and public relations campaigns.

Board Diversity

The Board recognises the importance of having a range of skilled and experienced individuals with sufficient and appropriate knowledge to allow the Board to fulfill its obligations. During the year ended 28 February 2016 there were four male Directors and one female Director.

Environmental, Social and Human Rights Issues

The Company has no employees as the Board has delegated day to day management and administrative functions to AFML. There are therefore no disclosures to be made in respect of employees. The Company's socially responsible investment policy is outlined below.

Socially Responsible Investment Policy

The Board acknowledges that there are risks associated with investment in companies which fail to conduct business in a socially responsible manner and has noted the Aberdeen Group's policy on socially responsible investment. The corporate responsibility programme of the AIFM's parent company, Aberdeen Asset Management PLC, including its environmental policy, can be found on http://www.aberdeen-asset.com/aam.nsf/groupCsr/home.

Global Greenhouse Gas Emissions

The Company has no greenhouse gas emissions to report from the operations of its business, nor does it have responsibility for any other emissions producing sources under the Companies Act 2006 (Strategic Report and Directors' Reports) Regulations 2013.

Future

The Board expects the Company to continue to pursue its investment objective and accepts that this may involve divergence from the benchmark. The companies which make up the investment portfolio are considered by the Investment Manager to demonstrate resilience in the context of the Thai political situation and to offer opportunities for investors to benefit from the development of the broader Thai economy.

In addition, many of the non-performance related trends likely to affect the Company in the future are common across all closed ended investment companies, such as the attractiveness of investment companies as investment vehicles, the impact of regulatory changes (including MiFID II and the Packaged Retail Investment and Insurance Products regulations) and the recent changes to the pensions and savings market in the UK. These factors need to be considered alongside likely future developments for the Company's investments and the Board's expectations in this regard can be found in the Chairman's Statement whilst the Investment Manager's views may be found in their Report.

Nicholas Smith

Chairman

13 May 2016

INVESTMENT MANAGER'S REPORT

Overview

Thai equities fell in the year under review, during a period fraught with erratic movements in global stockmarkets. Policy missteps in China that triggered sell-offs worldwide, the slowing Chinese economy, uncertainty around the pace of normalisation of US interest rates and plummeting oil and commodity prices, all roiled investor sentiment and impacted macroeconomic conditions domestically. A moribund state of affairs in Thailand became marked by an ongoing slump in manufacturing and exports, declining inflation, lacklustre business and consumer spending, and a weakening baht. However, confidence was boosted towards the end of the review period, following a rash of government stimulus measures and commitment to increased spending on infrastructure projects. The market defied the regional trend to recover slightly, on the back of better-than-expected fourth-quarter GDP data and generally upbeat earnings news.

Portfolio

Sustained jitters in Thai equities saw the SET Index fall by 11.6%, in total return terms, over the year ended 28 February 2016. Positive stock selection meant that the portfolio outperformed the benchmark, posting a NAV decrease of 9.5%.

Holding Big C Supercenter proved beneficial, as its share price rose on news that French parent Casino Group had sold its 59% stake in the Thai subsidiary to local import-export firm Berli Jucker at 252.88 baht per share. Similarly, Eastern Water Resources held up relatively well amid the sell-off, and was spared the effects of severe droughts that hit much of rural Thailand hard.

We have exposure to the telecommunications sector via the portfolio's holding in Advanced Info Service (AIS), the largest player in a market that already has the second highest mobile broadband penetration rate in Southeast Asia. AIS' win in the auction for new 4G frequencies partially resolves the mobile operator's capacity issues and allows it to keep up with its competitors, while maintaining healthy cash flow.

Among financials, Bangkok Insurance and Tisco were resilient as their steady, dependable businesses stood them in good stead. Tisco's share price improved, despite declaring a 4.4 billion baht loan to Sahaviriya Steel Industries as non-performing. Its credit rating remains largely intact for now, and its loan quality still exceeds the industry average, particularly with regard to auto loans.

Dynasty Ceramic's margins have stayed high, on the back of lower natural gas prices and controlled operating expenses, despite softer sales volumes. Elsewhere, Electricity Generating's role as the state utility provider helped it withstand rocky periods of market volatility. Not holding PTT Public Company Ltd aided performance, as it fell heavily in tandem with declining oil prices.

Property developers Sammakorn and LPN Development were hit by sluggish macroeconomic conditions, and suffered bouts of profit-taking with the stocks having done well previously. The economic slowdown resulted in slack advertising revenues for BEC World, in a sector that has become very competitive. The diversified media company also faced pressure from costs associated with the introduction of its digital TV offering. Even so, it remains one of the dominant players in the broadcasting industry, with the economies of scale to generate high-quality content.

The worsening global commodities rout took a toll on PTT Exploration & Production as well as Banpu. While PTT Exploration & Production was hurt by the oil slump and posted a net loss on the back of impairments, its operations have been largely resilient, with sales volumes improving marginally on rising domestic energy demand. In addition, its balance sheet is robust with a net cash position. It withdrew from an offshore exploration joint-venture with Pancontinental in Kenya to reduce risk, and sold a 20% stake in its Myanmar oil fields to Mitsui Oil Exploration and Palang Sophon Offshore. By the same token, Banpu was weighed down by the collapse in coal prices, but we are heartened by its capital raising to repay debt and restructure finances.

The market did not take too kindly to Siam City Cement's change in major shareholder from Holcim to Jardine Matheson, when the former chose to divest its 27.5% stake in the lead-up to its merger with Lafarge. Nevertheless, we believe the cement producer's operations remain stable and its fundamentals sound.

In terms of portfolio activity, we introduced to the portfolio Bangkok Bank, one of Thailand's largest commercial banks by loans and customer deposits; it also has a large branch network, domestically and internationally. Against this, Siam Cement and Bumrungrad Hospital were top-sliced following good performances.

Outlook

While stocks have been trading with renewed vigour since the start of the year, Thai equities are unlikely to stage a meaningful rebound, with the macroeconomic situation still weak. The Bank of Thailand has downgraded its growth forecast to 3.1% for 2016, as agriculture, manufacturing, exports and domestic consumption all continue to wane. High levels of household debt, declining consumer confidence and natural calamities may interfere with opportunities to revive spending and development. External factors such as China's slowdown and uncertainty over future US interest rate decisions could also act as a drag on the domestic market.

With the economy in a moribund state, corporate earnings are likely to be weaker this year, although the portfolio's strength lies in its emphasis on companies that are operationally solid and have balance sheet strength. In the finance sector, non-performing loans continue to rise, but at nowhere near the levels seen during the 1997 Asian crisis. The banks in your portfolio are relatively better-off than those in other emerging markets. We expect valuations to fall further this year, and see opportunity in volatility to top up on stocks that we favour.

The portfolio's holdings are mostly market leaders in their respective industries, and we continue to be confident in their ability to outshine their peers, even in uncertain times.

Aberdeen Asset Management Asia Limited

Investment Manager

13 May 2016

Financial Highlights

Dividends

Ten Year Financial Record

Investment Portfolio - Ten Largest Investments

As at 28 February 2016

Investment Portfolio - Other Investments

As at 28 February 2016

DIRECTORS' REPORT

The Directors present their Report and the audited financial statements of the Company for the year ended 28 February 2016, taking account of any events between the year end and the date of approval of this Report.

Results and Dividend

The Directors recommend that a final dividend of 8.5p (2015 - 8.2p) is paid on 28 June 2016 to shareholders on the register on 3 June 2016. The ex-dividend date is 2 June 2016. A resolution in respect of the final dividend will be proposed at the forthcoming AGM.

Investment Trust Status and ISA Compliance

The Company is registered as a public limited company in England & Wales under registration number 02448580 and has been accepted by HM Revenue & Customs as an investment trust for accounting periods beginning on or after 1 March 2012, subject to the Company continuing to meet the eligibility conditions of s1158 of the Corporation Tax Act 2010 (as amended) and S.I. 2011/2099. In the opinion of the Directors, the Company's affairs have been conducted in a manner to satisfy these conditions to enable it to continue to qualify as an investment trust for the year ended 28 February 2016. The Company intends to manage its affairs so that its shares will be qualifying investments for the stocks and shares component of an Individual Savings Account ("ISA").

Capital Structure and Voting Rights

During the year ended 28 February 2016 the Company bought back and cancelled 903,143 Ordinary shares (2015 - 60,000 Ordinary shares). As at 28 February 2016, the Company's issued share capital consisted of 19,860,282 Ordinary shares (2015 - 20,763,425 Ordinary shares) with each share holding one voting right in the event of a poll. An additional 65,000 Ordinary shares were bought back between 1 March 2016 and the date of approval of this Annual Report resulting in 19,795,282 Ordinary shares in issue, with voting rights.

Ordinary shareholders are entitled to vote on all resolutions which are proposed at general meetings of the Company. The Ordinary shares carry a right to receive dividends. On a winding up, after meeting the liabilities of the Company, the surplus assets will be paid to Ordinary shareholders in proportion to their shareholdings. There are no restrictions on the transfer of Ordinary shares in the Company other than certain restrictions which may from time to time be imposed by law and regulation (for example, the UK Market Abuse Regime).

Manager and Company Secretary

The Company has appointed AFML, a wholly-owned subsidiary of Aberdeen Asset Management PLC, as its alternative investment fund manager ("AIFM"). AFML has been appointed to provide the Company with investment management, risk management, administration and company secretarial services as well as promotional activities. The Company's portfolio is managed by AAMAL by way of a group delegation agreement in place between AFML and AAMAL.

The management fee is charged to the Company on the following basis: a monthly fee, payable in arrears, calculated on an annual rate of 1.0% of total assets less current liabilities, with a rebate to the Company for any fees received in respect of any investments by the Company in investment vehicles managed by the Aberdeen Group. There is no performance fee payable to the Manager.

The management agreement is terminable by either party on not less than 12 months' notice. In the event of termination on less than the agreed notice period, compensation is payable in lieu of the unexpired notice period.

The fees payable to Aberdeen Group during the year ended 28 February 2016 are disclosed in Notes 3 and 4 to the financial statements. The investment management fees are charged 100% to revenue.

The terms and conditions of the Manager's appointment, including an evaluation of performance and fees, are reviewed by the Board on an annual basis. The Board believes that the continuing appointment of the Investment Manager (through the Manager) on the terms agreed is in the interests of shareholders as a whole. The Board also undertakes a review of the management fees in comparison with other funds and believes that the Company's current level of management fees remains competitive.

In addition, AFML has sub-delegated promotional activities to Aberdeen Asset Managers Limited ("AAM") and administrative and secretarial services to Aberdeen Asset Management PLC.

Corporate Governance

The Company is committed to high standards of corporate governance. The Board is accountable to the Company's shareholders for good governance and, as required by the Listing Rules of the UK Listing Authority, this statement describes how the Company applies the Main Principles identified in the UK Corporate Governance Code published in September 2014 (the "UK Code") and which first applies to the Company's year ended 28 February 2016. The UK Code is available on the Financial Reporting Council's ("the FRC") website: frc.org.uk.

The Board has also considered the principles and recommendations of the AIC Code of Corporate Governance as published in February 2015 ("the AIC Code") by reference to the AIC Corporate Governance Guide for investment Companies ("the AIC Guide"). The AIC Code, as explained by the AIC Guide, addresses all the principles set out in the UK Code, as well as setting out additional principles and recommendations on issues that are of specific relevance to investment trusts. The AIC Code and AIC Guide are available on the AIC's website: theaic.co.uk

The Board considers that reporting against the principles and recommendations of the AIC Code, and by reference to the AIC Guide (which incorporates the UK Code), will provide better information to shareholders.

The Board confirms that, during the year, the Company complied with the recommendations of the AIC Code and the relevant provisions of the UK Code, except as set out below.

The UK Code includes provisions relating to:

- the role of the chief executive (A.1.2);

- executive directors' remuneration (D.1.1 and D.1.2); and

- the need for an internal audit function (C.3.6).

For the reasons set out in the AIC Guide and UK Code, the Board considers that these provisions are not relevant to the position of the Company, being an externally managed investment company. In particular, all of the Company's day-to-day management and administrative functions are outsourced to third parties. As a result, the Company has no executive directors, employees or internal operations. The Company has therefore not reported further in respect of these provisions. The full text of the Company's Statement of Corporate Governance can be found on its website: newthai-trust.co.uk

Substantial Interests

As at 28 February 2016, and the date of this Report, the following were registered, or had notified the Company, as being interested in 3% or more of the Company's Ordinary share capital:

Directors

The Board consists of a non-executive Chairman and four non-executive Directors, all of whom held office throughout the year under review. The Senior Independent Director is James Robinson who will be succeeded by Clare Dobie with effect from the conclusion of the AGM in June 2016.

The names and biographies of each of the Directors are shown in the published Annual Report and indicate their range of experience as well as length of service. Each Director has the requisite high level and range of business and financial experience which enables the Board to provide clear and effective leadership and proper stewardship of the Company.

The Directors attended Board and Committee meetings during the year ended 28 February 2016 as follows (with their eligibility to attend the relevant meeting in brackets):

A Hugh Young is not a member of either the Audit and Management Engagement Committee or the Nomination Committee

All of the Directors will retire at the AGM. Nicholas Smith, Clare Dobie, Andy Pomfret and Hugh Young, being eligible, offer themselves for re-election as Directors of the Company; James Robinson has indicated that he will not stand for re-election as a Director. The Board as a whole believes that each Director remains independent of the AIFM, with the exception of Hugh Young, and free of any relationship which could materially interfere with the exercise of his or her independent judgement on issues of strategy, performance, resources and standards of conduct and confirms that, following formal performance evaluations, the individuals' performance continues to be effective and demonstrates commitment to the role. The Board therefore has no hesitation in recommending the re-election as Directors at the AGM of Nicholas Smith, Clare Dobie, Andy Pomfret and Hugh Young.

Directors' Insurances and Indemnities

The Company maintains insurance in respect of Directors' and Officers' liabilities in relation to their acts on behalf of the Company. Furthermore, each Director of the Company is entitled to be indemnified out of the assets of the Company to the extent permitted by law against all costs, charges, losses, expenses and liabilities incurred by them in the actual or purported execution and/or discharge of their duties and/or the exercise or purported exercise of their powers and/or otherwise in relation to or in connection with their duties, powers or office. These rights are included in the Articles of Association of the Company and the Company has granted indemnities to each Director on this basis.

Management of Conflicts of Interest and Anti-Bribery Policy

The Board has a procedure in place to deal with a situation where a Director has a conflict of interest. As part of this process, the Directors prepare a list of other positions held and all other conflict situations that may need to be authorised either in relation to the Director concerned or his/her connected persons. The Board considers each Director's situation and decides whether to approve any conflict, taking into consideration what is in the best interests of the Company and whether the Director's ability to act in accordance with his/her wider duties is affected. Each Director is required to notify the Company Secretaries of any potential, or actual, conflict situations which will need authorising by the Board. Authorisations given by the Board are reviewed at each Board meeting.

No Director has a service contract with the Company although Directors are issued with letters of appointment upon taking up office. There were no contracts with the Company during, or at the end of the year, in which any Director was interested.

The Board takes a zero tolerance approach to bribery and has adopted appropriate procedures designed to prevent bribery. The Aberdeen Group also takes a zero tolerance approach and has its own detailed policy and procedures in place to prevent bribery and corruption.

Board Committees

The Directors have appointed a number of Committees as set out below. Copies of their terms of reference, which define the responsibilities and duties of each Committee, are available on the Company's website and from the Company Secretaries, on request.

Audit and Management Engagement Committee

The Audit and Management Engagement Committee's Report may be found in the published Annual Report.

Nomination Committee

All appointments to the Board of Directors are considered by the Nomination Committee which comprises the whole Board and was chaired during the year by Nicholas Smith.

The Committee's overriding priority in appointing new Directors to the Board is to identify the candidate with the optimal range of skills and experience to complement the existing Directors. The Board also recognises the benefits, and is supportive, of the principle of diversity in its recruitment of new Directors.

As the Company has no employees and the Board is comprised wholly of non-executive Directors and, given the size and nature of the Company, the Board has not established a separate Remuneration Committee. Directors' remuneration is determined by the Nomination Committee.

Accountability and Audit

The responsibilities of the Directors and the Auditor, in connection with the financial statements, appear below.

The Directors who held office at the date of this Report each confirm that, so far as he or she is aware, there is no relevant audit information of which the Company's Auditor is unaware, and that he or she has taken all the steps that he or she could reasonably be expected to have taken as a Director in order to make him or her aware of any relevant audit information and to establish that the Company's Auditor is aware of that information.

Additionally there have been no important events since the year end which warrant disclosure.

The Directors have reviewed the level of non-audit services provided by the Auditor during the year, together with the auditor's procedures in connection with the provision of such services, and remain satisfied that the Auditor's objectivity and independence is being safeguarded.

Going Concern

The Directors have undertaken a rigorous review and consider both that there are no material uncertainties and that the adoption of the going concern basis of accounting is appropriate. The Company's assets consist entirely of equity shares in companies listed on the Stock Exchange of Thailand which are, in most circumstances, realisable within a short timescale.

The Board has set limits for borrowing and regularly reviews the level of any gearing, cash flow projections and compliance with banking covenants. On 28 October 2015, the Company entered into a three-year multi-currency revolving loan facility ("the Facility") with Scotiabank (Ireland) Limited for £10.0m. As at 28 February 2016, £2.65m had been drawn down under the Facility

The Directors are mindful of the principal risks and uncertainties disclosed above and in Note 16 to the financial statements. After making enquiries, including a review of forecasts detailing revenue and liabilities, the Directors have a reasonable expectation that the Company possesses adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis of accounting in preparing the financial statements.

Continuance of the Company

The Company does not have a fixed life. However, under Article 156 of the Articles of Association, if, in the 12 weeks preceding the Company's financial year-end (28 February), the Ordinary shares have been trading, on average, at a discount in excess of 15% to the underlying NAV per share (excluding income) over the same period, notice will be given of a special resolution to be proposed to wind up the Company. In the 12 weeks ended 28 February 2016, the Ordinary shares traded at an average discount of 14.2% to the underlying net asset value per share, therefore no such resolution will be put to the Company's shareholders at the forthcoming AGM.

Viability Statement

The Company does not have a formal fixed period strategic plan but the Board does formally consider risks and strategy on at least an annual basis. The Board considers the Company, with no fixed life, to be a long term investment vehicle, but for the purposes of this viability statement has decided that a period of three years is an appropriate period over which to report. The Board considers that this period reflects a balance between looking out over a long term horizon and the inherent uncertainties of looking out further than three years.

Accordingly, taking into account the Company's current position and the potential impact of its principal risks and uncertainties, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due for a period of three years from the date of this report. In making this assessment, the Board has considered that matters such as a large economic shock, a period of significant stock market volatility, a significant reduction in the liquidity of the portfolio, or changes in regulations and investor sentiment, could have an impact on its assessment of the Company's prospects and viability in the future.

In particular the Board recognises that this assessment makes the assumption that the Company's average discount to the NAV (excluding income per Ordinary share) for the 12 weeks ended 28 February 2017 and 12 weeks ended 28 February 2018, individually, does not exceed 15% which negates the requirement to put to shareholders at the AGMs to be held in either 2017 or 2018, a special resolution to wind up the Company.

The Directors have also considered the maturity of the Company's 3-year, £10 million bank loan facility in October 2018. The Company will enter negotiations with its bankers in advance of renewal in October 2018. If acceptable terms are available from the existing bankers, or any alternative, the Company would expect to continue to access the Facility. However, should these terms not be forthcoming, any outstanding borrowing will be repaid through the proceeds of equity sales.

Independent Auditor

The Company's auditor, KPMG LLP, has indicated its willingness to remain in office. The Directors will place resolutions before the Annual General Meeting to re-appoint KPMG LLP as auditor for the ensuing year and to authorise the Directors to determine its remuneration.

UK Stewardship Code and Proxy Voting as an Institutional Shareholder

Responsibility for actively monitoring the activities of portfolio companies has been delegated by the Board to the AIFM which has sub-delegated that authority to the Investment Manager.

The Investment Manager is responsible for reviewing the annual reports, circulars and other publications issued by portfolio companies and for attending their company meetings. The Investment Manager, in the absence of explicit instruction from the Board, is empowered to use discretion in the exercise of the Company's voting rights. The Investment Manager's policy is to vote on all shares held by the Company. The Board recognises and supports the Aberdeen Group's policy of active engagement with investee companies and the voting of all of the shares held by the Company. The Board receives regular reports on the exercise of the Company's voting rights and discusses any issues arising with the Investment Manager.

In exercising the Company's voting rights, the Aberdeen Group follows a number of principles which set out the framework on corporate governance, proxy voting and shareholder engagement in relation to the companies in which the Aberdeen Group has invested or is considering investing. The Board has reviewed these principles together with the Aberdeen Group's Disclosure Response to the UK Stewardship Code, and is satisfied that the exercise of delegated voting powers by the Investment Manager is being properly executed. The Aberdeen Group's Corporate Governance Principles together with the Aberdeen Group's Disclosure Response to the UK Stewardship Code may be found on the Aberdeen Group's website, at: aboutus.aberdeen-asset.com/en/aboutus/expertise/equities/stewardship

Relations with Shareholders

The Directors place great importance on communication with shareholders. The Annual Report is widely distributed to other parties who have an interest in the Company's performance. Shareholders and investors may obtain up-to-date information on the Company through its website, newthai-trust.co.uk, or via the Aberdeen Group's Customer Services Department. The Company responds to letters from shareholders on a wide range of issues (see Contact Information in the published Annual Report for details).

The Board's policy is to communicate directly with shareholders and their representative bodies without the involvement of the management group (either the Company Secretary or the Aberdeen Group) in situations where direct communication is required and representatives from the Board offer to meet with major shareholders on an annual basis in order to gauge their views.

In addition, members of the Board accompany the Manager when undertaking a series of meetings with institutional shareholders.

The Company Secretary only acts on behalf of the Board, not the Manager, and there is no filtering of communication. At each Board meeting the Board receives full details of any communication from shareholders to which the Chairman responds, as appropriate, on behalf of the Board.

The Notice of AGM included within the Annual Report is normally sent out at least 20 working days in advance of the meeting. All shareholders have the opportunity to put questions to the Board and Investment Manager at the Company's AGM.

Annual General Meeting

The AGM will be held on 23 June 2016 and the AGM Notice and related notes may be found in the published Annual Report. Resolutions relating to the following items of business will be proposed at the forthcoming AGM:-

Authority to Allot Relevant Securities

Ordinary Resolution No. 10 in the Notice of AGM will renew the authority to allot the unissued share capital up to 10% of the Company's issued share capital as at the date of the passing of the resolution (equivalent to approximately 1.98m Ordinary shares). Such authority will expire on the date of the next AGM or on 22 August 2017, whichever is earlier. This means that the authority will have to be renewed at the next AGM.

Limited Disapplication of Pre-emption Provisions

Resolution 11, which is a Special Resolution, will, if passed, renew the Directors' existing authority to make limited allotments of shares for cash other than according to the statutory pre-emption rights which require all shares issued for cash to be offered first to all existing shareholders provided such allotments are made at a price per Ordinary share above the prevailing NAV per Ordinary share. This authority includes shares that the Company sells or transfers out of Treasury which have been previously bought back into Treasury (if any) pursuant to the authority conferred by Resolution 12 below. The Board will only consider buying in Ordinary shares for cancellation, or for holding in Treasury, at a price which represents a discount to their prevailing NAV. In line with the authority sought under Resolution 10, Resolution 11 will, if passed, give the Directors power to allot, for cash, securities up to 10% of the total issued share capital at the date of the passing of the resolution (equivalent to approximately 1.98m Ordinary shares) other than according to the statutory pre-emption rights.

The authorities being sought under Resolutions 10 and 11, which will expire on the date of the earlier of the next AGM in 2017 or 22 August 2017, will give the Board flexibility to take advantage of any opportunities to issue new Ordinary shares within a shorter period than would otherwise be the case.

Directors' Authority to Purchase the Company's Ordinary Shares

Resolution 12, a Special Resolution, will be proposed to renew the Directors' authority to make market purchases of the Company's Ordinary shares, in accordance with the provisions contained in the Companies Act and the Listing Rules of the UK Listing Authority.

Accordingly, the Company is seeking authority, under Resolution 12, to purchase up to a maximum of approximately 2.9m Ordinary shares, or if less, that number of Ordinary shares equivalent to 14.99% of the issued Ordinary share capital at the date of the passing of the Resolution at a minimum price of not less than 25p per Ordinary share (being the nominal value) and a maximum price of not more than the higher of (i) an amount equal to 5% above the average of the middle market quotation for an Ordinary share taken from the London Stock Exchange Daily Official List for the five business days immediately preceding the day on which the Ordinary share is purchased; and (ii) the higher of the price of the last independent trade and the current highest independent bid on the stock market where the purchase is carried out.

If passed, Resolution 12 will permit the Company to purchase Ordinary shares under the guidelines described above. Any Ordinary shares purchased in this way will either be cancelled, and the number of Ordinary shares in issue reduced accordingly or, under the power granted by Resolution 12, may be held in Treasury. The authority sought under Resolution 12 will expire on the earlier of date of the next AGM in 2017 and 22 August 2017, whichever is earlier, unless renewed prior to such time.

Recommendation

The Board considers each of the AGM Resolutions to be in the best interests of the Company and its members as a whole and are likely to promote the success of the Company for the benefit of its members as a whole. Accordingly, the Board unanimously recommends that shareholders should vote in favour of the resolutions to be proposed at the AGM, as they intend to do in respect of their own shareholdings, amounting to 95,264 Ordinary shares.

Nicholas Smith

Chairman

13 May 2016

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with UK Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.

Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the company for that period. In preparing these financial statements, the Directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and estimates that are reasonable and prudent;

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

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

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

Under applicable law and regulations, the Directors are also responsible for preparing a Strategic Report, Directors' Report, Directors' Remuneration Report and Statement of Corporate Governance that comply with that law and those regulations.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Responsibility statement of the Directors in respect of the annual financial report

We confirm to the best of our knowledge, that:

- the financial statements have been prepared in accordance with applicable accounting standards and give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and

- the Strategic Report and Directors' Report include a fair review of the development and performance of the business and the position of the Company together with a description of the principal risks and uncertainties that the Company faces.

We consider that the Annual Report and financial statements, taken as a whole, is fair, balanced and understandable and provides the information necessary for shareholders to assess the Company's position and performance, business model and strategy.

For and on behalf of the Directors of Aberdeen New Thai Investment Trust PLC

Nicholas Smith

Chairman

13 May 2016

STATEMENT OF COMPREHENSIVE INCOME

STATEMENT OF FINANCIAL POSITION

STATEMENT OF CHANGES IN EQUITY

STATEMENT OF CASHFLOWS

NOTES TO THE FINANCIAL STATEMENTS: