· The Baring Global Opportunities Umbrella Fund 1 Contents Management and Administration

Annual Report & Audited Financial Statements

31 July 2007

The Baring Global Opportunties Umbrella Fund

The Baring Global Opportunities Umbrella Fund

1

Contents

Management and Administration .........................................................................................................................................................2

Investment Manager’s Report..............................................................................................................................................................3

Portfolio Statement ..............................................................................................................................................................................6

Statements and Reports:

Independent Auditors Report to the Unitholders .................................................................................................................................9

Statement of Manager’s Responsibilities...........................................................................................................................................10

Statement of the Trustee’s Responsibilities.......................................................................................................................................10

Trustee’s Report to the Unitholders ...................................................................................................................................................10

Balance Sheet ...................................................................................................................................................................................11

Statement of Changes in Net Assets Attributable to Redeemable Participating Unitholders ............................................................11

Profit and Loss Account .....................................................................................................................................................................12

Notes to the Financial Statements.....................................................................................................................................................13

General Information - Unaudited........................................................................................................................................................22

Enquiries ............................................................................................................................................................................................24


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Management and Administration

Directors of the Manager

Richard Bellis (British) (Appointed 14 August 2007) William Collins (British) (Resigned 3 August 2007) Anthony Cooney* (Irish) Ian Pascal (British) Paul Savage (British) Mark Thorne* (Irish)

Manager Investment Manager

Baring International Fund Managers (Ireland) Limited Baring Asset Management (Asia) Limited Registered Office 19th Floor, Edinburgh Tower Georges Court 15 Queen’s Road Central 54-62 Townsend Street Hong Kong Dublin 2 Ireland

Trustee

Northern Trust Fiduciary Services (Ireland) Limited Georges Court 54-62 Townsend Street Dublin 2 Ireland

Administrator and Registrar

Northern Trust International Fund Administration Services (Ireland) Limited Georges Court 54-62 Townsend Street Dublin 2 Ireland

Independent Auditors

PricewaterhouseCoopers Chartered Accountants and Registered Auditors One Spencer Dock North Wall Quay Dublin 1 Ireland

Legal Advsiors

As to Irish Law As to Hong Kong Law Dillon Eustace Deacons 33 Sir John Rogerson’s Quay Alexandra House Dublin 2 16-20 Chater Road Ireland Central Hong Kong *Non-executive directors independent of the Investment Manager


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Investment Manager’s Report

Summary of Fund Performance

Accounting Year

Net asset value as at

31/07/2007

(US$ per unit)

Net asset value as at

31/07/2006

(US$ per unit)

Net asset value

% change

Asia Balanced Fund 23.41 16.92 38.36 Performance Record to 31 July 2007

01/08/2006 -31/07/2007

%

01/08/2005 -31/07/2006

%

01/08/2004 -31/07/2005

%

01/08/2003 -31/07/2004

%

01/08/2002 -31/07/2003

%

Baring Asia Balanced

Fund 38.36 21.99 15.78 15.08 6.55

Baring Asia Balanced

Customised Index 22.85 10.24 20.09 17.63 8.49

The customised index comprises of:

Citi World Government Bond Index

MSCI Hong Kong Gross

MSCI Word Ex Singapore, Hong Kong Gross

MSCI AC Far East Free Ex Japan, Hong Kong Gross

Source: Baring Asset Management Limited. Percentage performance to 31 July 2007, bid-to-bid basis with net income reinvested in US

dollar terms.

Note: All references to a specific index are for comparative purposes only.

Past performance is not a guide to future performance. The value of an investment can fall as well as rise and investors may not get

back the amount originally invested.

Investment Objective and Policy

The Baring Asia Balanced Fund is aimed specifically, but not exclusively, at meeting the investment requirements of Hong Kong-based

retirement schemes and its investment objective and policies have been tailored accordingly, namely, to achieve a long-term

annualised real rate of return in excess of 2% per annum above Hong Kong wage inflation, when measured in Hong Kong dollar terms.

Accordingly, it is the intention of the Manager that the Fund will normally include a diversified range of international equities and debt

securities, generally with a significant exposure to Asian equities. Investment may also be made in cash and money market

instruments where considered appropriate in light of market conditions. Please refer to the Prospectus for the full Investment Objective

and Policy.

How we Manage the Fund

The Baring Asia Balanced Fund is invested in a range of asset classes and markets, which are determined by our asset allocation

analysis. We use our economic forecasts to estimate ten-year asset class returns. Based on this analysis, we select what asset classes

and markets look most attractive in our view.

In terms of researching candidates for the portfolio, we manage the Fund using a “Growth at a Reasonable Price”, or GARP, approach.

This means that we place just as much emphasis on the likely growth in corporate earnings at a company as we do on the share price

valuation before deciding whether to invest or not. We believe this approach combines the best features of both “growth” and “value”

investment styles, to the benefit of investors.

The Baring Asia Balanced Fund is managed by Khiem Do. Khiem is responsible for a number of our institutional Asian portfolios for

clients located in Asia. He has 30 years investment experience and is based in our Hong Kong office.


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Risk Profile The Baring Asia Balanced Fund is invested in global equities primarily those listed in the Asia Pacific region, and as such is exposed to

the volatility that can characterise equity share prices from time-to-time. Many of these countries are emerging equity markets, and as a

result, the Fund can be exposed to economic, political and other risks associated with holding equities in developing markets.

The Fund is also invested in fixed interest investments, primarily in Asia. Bonds are generally considered to be safer than equities,

however their value can be significantly reduced by interest-rate movement. When interest rates go up bond values generally go down

and vice versa. Returns from overseas bond and equity markets can also be subject to fluctuations in exchange rates, which can have

the effect of eroding or enhancing the value of investment returns for investors. Please refer to the Prospectus for the full risk profile.

Key Changes Since the Last Report There are no key changes to report.

Strategy and Performance The performance of the Baring Asia Balanced Fund was positive for the period under review and outperformed the Asia Balanced

Customised Index in US dollar terms. A large exposure to China, other Asian markets, and emerging equity markets generally helped

to increase the net asset value of the Fund significantly over the 12-month period ending 31 July 2007. Both asset allocation and stock

selection added value. Our good stock selection in China and other Asian markets particularly added value.

Over the period under review, we added to our equities exposure, notably in China, other Asian markets, and the emerging markets of

Eastern Europe and Latin America, funded from our cash holdings. The US equity exposure remained substantially low, as we

continued to believe that better growth potential could be captured through a higher exposure to China, Asia, emerging markets

generally and, to a lesser extent, Europe. Overall, we remained underweight bonds relative to equities, as based on our valuation

grounds equities offered better value.

Review of the Market Over the 12-month period, equities appreciated strongly, after a brief market correction in late February and early March 2007. The

latter was caused by a sharp 9% one-day fall in the domestic Chinese A-shares market, combined with concerns over the health of the

US mortgage-backed debt market. Equity investors' sentiment then recovered and improved steadily over the period, as investors

regained confidence in the belief that the robust global growth together with low inflation is likely to boost company earnings growth. In

Asia, China’s strong economic growth and abundant liquidity helped Chinese and Asian equity markets to appreciate strongly. In

contrast, global bond markets were weak throughout most of the period, with the exception of the month of July, when US mortgage-

backed debt concerns re-surfaced and encouraged investors to switch to government bonds to avoid the volatility. The US dollar

returned to its long-term weak trend versus other major world and Asian currencies. Commodities prices were mostly weaker in the

second half of 2006; recovering somewhat in 2007.

Market Outlook Strong domestic demand across the Asia Pacific and emerging markets region, and we believe improving global economic growth are

likely to drive the performance of the Asian and emerging stock markets as we move into 2008. In spite of the concerns over export

growth and worries over the lower-quality US mortgage market, domestic demand and investment prospects remain healthy in Asia,

and across the emerging markets arena.

In our view, we expect China, India and other emerging nations to drive the world economy in 2008 and beyond, while the US and

Japan are forecast to grow at a much slower rate. This is why we have adopted an overweight positioning in Asian, emerging market

equities, and cash, relative to bonds and other equity markets. This strategy is based on our outlook for 2008, in which we expect the

environment to remain favourable for growth assets.

Though volatility is likely to increase over the coming months, we firmly believe the long-term prospects for Asian and emerging

markets remains intact. In fact, we believe short term volatility is likely to provide opportunities for growth rather than obstacles.


Portfolio Information

Top Ten Holdings As At 31/07/2007

% United States Treasury Bill 18/10/07 4.83 Baring Global Emerging Markets Fund 4.64 SG Australia 0% Commercial Paper 09/10/07 4.10 China Merchants Bank 2.15 Baring Eastern Europe Fund 1.95 China Communications Construction 1.70 Aluminum Corp of China 1.41 Keppel 1.37 Hong Kong Exchanges and Clearing 1.34 China Mobile 1.33

Country Breakdown As at 31/07/2007 % Fixed Interest Europe 2.72 US 6.52 Others 4.85 Equities & Collective Investment Schemes Asia 45.61 Europe 25.36 US 4.03 Australia 1.71 Cash & Other Net Assets 9.20 Total 100.00

Baring Asset Management (Asia) Limited August 2007

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6

Portfolio Statement As at 31 July 2007

Financial Assets at Fair Value through Profit or Loss Currency

Nominal Holding Fair Value US$ % of NAV

Collective Investment Schemes Ireland Baring Eastern Europe Fund USD 9,973 1,414,140 1.95 Baring Global Emerging Markets Fund USD 102,098 3,360,040 4,774,180 4.64 6.59 Luxembourg Baring Russia Fund USD 4,548 359,838 0.50 Total Collective Investment Schemes 5,134,018 7.09 Equities Australia ASX AUD 7,003 295,098 0.41 Macquarie Bank AUD 3,913 277,337 0.38 Rio Tinto AUD 8,345 667,308 1,239,743 0.92 1.71 Austria Erste Bank der Oesterreichischen

Sparkassen EUR 4,784 360,002 0.50 Immoeast EUR 47,174 597,681 957,683 0.82 1.32 Belgium KBC Groep EUR 3,697 485,515 0.67 China Aluminum Corp of China HKD 504,000 1,023,971 1.41 Angang Steel HKD 178,000 500,383 0.69 Anhui Conch Cement HKD 122,000 790,365 1.09 China Communications Construction HKD 539,140 1,231,769 1.70 China Construction Bank HKD 642,000 484,002 0.67 China Hongxing Sports SGD 530,000 278,717 0.39 China Merchants Bank HKD 426,500 1,553,188 2.15 China Shenhua Energy HKD 203,500 819,097 1.13 China Shipping Container Lines HKD 1,099,000 922,621 1.27 Guangshen Railway HKD 588,000 455,313 0.63 Guangzhou R&F Properties HKD 233,600 859,658 1.19 Harbin Power Equipment HKD 146,000 254,091 0.35 Industrial & Commercial Bank of China HKD 718,000 444,048 0.61 Parkson Retail HKD 77,000 580,501 0.80 Shimao Property Holdings HKD 98,500 264,311 0.36 Yangzijiang Shipbuilding Holdings SGD 535,000 690,094 0.95 Zijin Mining HKD 622,500 485,210 11,637,339 0.67 16.06 France Neopost EUR 3,459 507,323 0.70 Total EUR 7,742 616,211 0.85 Vinci EUR 7,458 540,998 1,664,532 0.75 2.30 Germany Fresenius EUR 6,323 508,984 0.70 Merck EUR 2,626 323,067 0.45 Rational EUR 2,274 451,631 0.62 Software EUR 6,602 668,441 1,952,123 0.92 2.69 Greece Piraeus Bank EUR 19,210 694,635 0.96 Hong Kong BOC Hong Kong HKD 202,500 525,268 0.72 Cathay Pacific Airways HKD 212,000 558,037 0.77 China Mobile HKD 82,500 960,884 1.33 Esprit Holdings HKD 47,600 644,723 0.89 Hengan International HKD 140,000 475,850 0.66 Hong Kong Exchanges and Clearing HKD 58,500 972,508 1.34 Hongkong Land USD 57,000 242,820 0.34 Li & Fung HKD 230,000 812,612 1.12 Nine Dragons Paper HKD 313,000 933,881 1.29 Peace Mark HKD 480,000 754,408 1.04 Ports Design HKD 226,000 544,063 7,425,054 0.75 10.25 Indonesia Bakrie Sumatera Plantations IDR 1,057,000 212,203 0.29 Bank Niaga IDR 1,734,000 176,881 0.25 International Nickel Indonesia IDR 21,500 133,456 0.18 Telekomunikasi Indonesia IDR 251,500 305,676 0.42 Trimegah Securities IDR 5,219,000 181,235 1,009,451 0.25 1.39 Italy Parmalat EUR 132,640 466,456 0.64 Japan Daiwa House Industry JPY 13,000 170,711 0.24 Isuzu Motors JPY 39,000 212,436 0.29 Mitsui Fudosan JPY 8,000 210,509 0.29 Nomura Holdings JPY 10,900 209,176 0.29


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Portfolio Statement (continued) As at 31 July 2007

Nominal Equities (continued) Currency Holding Fair Value US$ % of NAV Sumitomo Mitsui Financial JPY 22 199,112 0.27 Sun Frontier Fudousan JPY 87 159,666 0.22 Takashimaya JPY 17,000 191,184 0.27 Unicharm JPY 3,400 184,916 1,537,710 0.26 2.13

Malaysia Kuala Lumpur Kepong MYR 64,900 242,213 0.33 Mudajaya MYR 259,100 295,343 0.41 Muhibbah Engineering MYR 123,400 353,438 0.49 Naim Cendera Holdings MYR 170,100 300,191 0.42 Samling Global HKD 1,872,000 777,409 1.07 Sime Darby MYR 82,300 240,483 0.33 Tradewinds MYR 639,600 303,470 2,512,547 0.42 3.47 Netherlands Fugro EUR 8,991 604,665 0.83 USG People EUR 10,965 435,244 1,039,909 0.60 1.43 Norway TGS Nopec Geophysical NOK 12,600 240,570 0.33 Philippines Metropolitan Bank & Trust PHP 134,900 183,001 0.25 SM Investments PHP 39,633 356,247 0.49 Vista Land & Lifescapes PHP 263,000 36,548 575,796 0.05 0.79 Singapore Capitaland SGD 115,000 570,531 0.79 DBS SGD 24,000 366,727 0.51 Keppel SGD 111,000 991,235 1.37 Singapore Exchange SGD 60,000 392,922 2,321,415 0.54 3.21 South Korea

Doosan Heavy Industries And Construction KRW 5,230 555,650 0.77

GS Engineering & Construction KRW 2,616 392,977 0.54 Hana Financial KRW 4,538 246,993 0.34 Hana Tour Service KRW 3,484 354,601 0.49 Hyundai H&S KRW 1,977 234,576 0.32 Kookmin Bank KRW 4,004 349,557 0.48 Samsung Heavy Industries KRW 4,150 228,134 0.32 SK Chemicals KRW 6,210 574,593 0.79 STX Engine KRW 7,260 520,011 3,457,092 0.73 4.78 Switzerland Julius Baer Holding CHF 8,220 581,298 0.80 Lonza CHF 4,406 418,853 0.58 Syngenta CHF 2,323 436,466 0.60 Zurich Financial Services CHF 2,440 716,516 2,153,133 0.99 2.97 Taiwan Asia Cement TWD 366,000 474,238 0.65 Foxconn Technology TWD 14,605 163,861 0.23 HON HAI Precision TWD 46,859 388,587 0.54 Innolux Display TWD 120,000 543,293 0.75 Powertech Technology TWD 49,000 231,555 0.32 Taiwan Fertilizer TWD 214,000 486,719 2,288,253 0.67 3.16 Thailand Advanced Info Service THB 300 875 0.00 Total Access Communication THB 196,700 264,984 265,859 0.37 0.37 United BG GBP 42,832 697,325 0.96 Kingdom GlaxoSmithKline GBP 19,268 491,575 0.68 ICAP GBP 43,298 420,176 0.58 Northgate Information Solutions GBP 170,238 273,179 0.38 Rolls-Royce GBP 22,935 238,235 0.33 Royal Bank Of Scotland GBP 37,072 447,297 0.62 Shire GBP 9,976 246,002 0.34 Standard Chartered HKD 15,000 489,139 0.67 Tesco GBP 34,873 289,010 3,591,938 0.40 4.96 United Altria USD 3,474 228,520 0.31 States American International USD 3,057 199,347 0.28 Baxter International USD 1,859 99,048 0.14 Comcast USD 10,825 294,548 0.41 Exxon Mobil USD 4,033 346,878 0.48 Gilead Sciences USD 8,734 326,826 0.45 Google USD 605 312,247 0.43 Halliburton USD 4,057 147,391 0.20 Pfizer USD 10,981 260,909 0.36 Qualcomm USD 7,691 327,098 0.45 Valero Energy USD 5,450 376,432 2,919,244 0.52 4.03 Total Equities 50,435,997 69.62


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Portfolio Statement (continued) As at 31 July 2007

Nominal Fixed Interest Currency Holding Fair Value US$ % of NAV Australia New South Wales Treasury 5.5%

Bonds 01/08/2014 AUD 290,000 233,396 0.32 SG Australia 0% Commercial

Paper 09/10/2007 USD 3,000,000 2,971,158 3,204,554 4.10 4.42 Cayman Islands ASIF II 1.2% Bonds 20/03/2008 JPY 37,000,000 310,793 0.43 France French Government Bond 3.25%

25/04/2016 EUR 160,000 200,809 0.28 Germany Bundesobligation 3.25% Bonds

09/04/2010 EUR 169,000 225,345 0.31 Federal Republic of Germany

3.75% Bonds 04/01/2015 EUR 250,000 329,755 0.45 Federal Republic of Germany

5.5% Bonds 04/01/2031 EUR 189,000 294,261 849,361 0.41 1.17 Ireland Depfa ACS Bank 1.65% Bonds

20/12/2016 JPY 30,000,000 245,272 0.33 Italy Republic of Italy 0.65% Stock

20/03/2009 JPY 11,000,000 91,656 0.13 Luxembourg Inter-Amer Dev Bank 1.9% Bonds

08/07/2009 JPY 16,000,000 136,420 0.19 United Kingdom

United Kingdom Gilt 2.5% 17/07/2024 GBP 20,000 95,692 0.13

United Kingdom Gilt 4.25% 07/03/2036 GBP 30,000 57,555 0.08

United Kingdom Gilt 7.25% 07/12/2007 GBP 145,000 295,709 448,956 0.41 0.62

United States

United States Treasury Bill 11/10/2007 USD 423,000 419,036 0.58

United States Treasury Bill 18/10/2007 USD 3,535,000 3,498,589 4.83

US Treasury 5.375% Bonds 15/02/2031 USD 111,000 116,620 0.16

US Treasury 4.125% Notes 15/08/2010 USD 58,000 57,280 0.08

US Treasury 4.25% Notes 15/08/2015 USD 450,000 433,971 0.60

US Treasury 4.5% Notes 15/02/2016 USD 200,000 195,782 4,721,278 0.27 6.52

Total Fixed Interest 10,209,099 14.09 Open Forward Foreign Currency Transactions Currency Currency Maturity Unrealised Currency Sold Bought Rate Date Gain USD 4,088,580 EUR 0.7401 07/09/2007 61,458 0.08 USD 168,421 SGD 1.5200 07/09/2007 1,442 0.00 GBP 170,000 USD 0.4866 30/10/2007 4,544 0.01 0.09 Unrealised Gain On Forward Foreign Currency Contracts 67,444 0.09 Financial Assets at fair value through profit or loss 65,846,558 0.00 90.89 Open Forward Foreign Currency Transactions Currency Currency Maturity Unrealised Currency Sold Bought Rate Date Loss USD 5,450,929 JPY 118.1450 17/08/2007 (42,527) (0.06) JPY 40,000,000 USD 120.0770 17/08/2007 (2,806) 0.00 EUR 95,000 USD 0.7333 09/07/2007 (736) 0.00 Unrealised Loss On Forward Foreign Currency Contracts (46,069) (0.06) Financial Liabilities at fair value through profit or loss (46,069) (0.06) Total Financial Assets and Liabilities at Fair Value through Profit or Loss 65,800,489 90.83 Other Net Assets 6,642,014 9.17 Total Net Assets Attributable To Redeemable Participating Units 72,442,503 100.00

The counterparty to the open forward foreign currency contracts is Northern Trust (Guernsey) Limited.


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Independent Auditors’ Report to the Unitholders Independent Auditors’ Report to the Unitholders of The Baring Global Opportunities Umbrella Fund (the “Trust”) We have audited the Trust’s Financial Statements for the year ended 31 July 2007 which comprise the Balance Sheet, the Profit and

Loss Account, the Statement of Changes in Net Assets Attributable to Redeemable Participating Unitholders, the Portfolio Statement

and the related notes. These Financial Statements have been prepared under the accounting policies set out therein.

Respective responsibilities of the Manager and the Auditors The Manager’s responsibilities for preparing the Annual Report and the Financial Statements in accordance with applicable Irish law

and the accounting standards issued by the Accounting Standards Board and published by the Institute of Chartered Accountants in

Ireland (Generally Accepted Accounting Practice in Ireland) are set out in the Statement of Manager’s Responsibilities.

Our responsibility is to audit the Financial Statements in accordance with relevant legal and regulatory requirements and International

Standards on Auditing (UK and Ireland). This report, including the opinion, has been prepared for and only for the Trust’s Unitholders

as a body and for no other purpose. We do not, in giving this opinion, accept or assume responsibility for any other purpose or to any

other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in

writing.

We report to you our opinion as to whether the Financial Statements give a true and fair view in accordance with Generally Accepted

Accounting Practice in Ireland, and are properly prepared in accordance with Irish statute comprising the Unit Trusts Act, 1990 and

the provisions of the Hong Kong Code on Unit Trusts and Mutual Funds. We state whether we have obtained all the information and

explanations we consider necessary for the purposes of our audit, and whether the Financial Statements are in agreement with the

books of account. We also report to you our opinion as to whether proper books of account have been kept by the Manager for the

Trust.

We read the other information contained in the Annual Report, and consider whether it is consistent with the audited Financial

Statements. We consider the implications for our report if we become aware of any apparent misstatements or material

inconsistencies with the Financial Statements. Our responsibilities do not extend to any other information.

Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices

Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the Financial

Statements. It also includes an assessment of the significant estimates and judgements made by the Manager in the preparation of

the Financial Statements, and of whether the accounting policies are appropriate to the Trust's circumstances, consistently applied

and adequately disclosed.

We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to

provide us with sufficient evidence to give reasonable assurance that the Financial Statements are free from material misstatement,

whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the

presentation of information in the Financial Statements.

Opinion In our opinion the Financial Statements give a true and fair view in accordance with Generally Accepted Accounting Practice in

Ireland, of the state of the Trust's affairs at 31 July 2007 and of its results for the year then ended; and have been properly prepared

in accordance with the requirements of the Unit Trusts Act, 1990 and the provisions of the Hong Kong Code on Unit Trusts and

Mutual Funds.

We have obtained all the information and explanations we consider necessary for the purposes of our audit. In our opinion proper

books of account have been kept by the Manager for the Trust. The Trust’s Financial Statements are in agreement with the books of

account.

PricewaterhouseCoopers Chartered Accountants and Registered Auditors Dublin 8 November 2007

The Baring Global Opportunities Umbrella Fund Statements and Reports

10

Statements of Manager’s Responsibilities The Unit Trusts Act, 1990 requires the Manager to prepare the Annual Report and the Financial Statements for each financial year.

These Financial Statements must be prepared in accordance with generally accepted accounting principles to give a true and fair

view of the state of affairs of the Trust at the year end and of the results and movements on the Statement of Changes in Net Assets

Attributable to Redeemable Participating Unitholders for the year then ended. In preparing these Financial Statements, the Manager:

• ensures the Financial Statements comply with the Trust Deed, generally accepted accounting principles

and applicable accounting standards;

• selects suitable accounting policies and then applies them consistently;

• makes judgements and estimates that are reasonable and prudent; and

• prepares the Financial Statements on the going concern basis unless it is inappropriate to assume that

the Trust will continue in operation.

The Manager is responsible for keeping proper books of account which disclose with reasonable accuracy at any time the financial

position of the Trust and to enable it to ensure that the Financial Statements are prepared in accordance with accounting standards

generally accepted in Ireland and comply with the provisions of the Trust Deed and the Unit Trusts Act, 1990 and the provisions of

the Hong Kong Code on Unit Trusts and Mutual Funds. The Manager is also responsible for taking reasonable steps for the

prevention and detection of fraud, error and non-compliance with law or regulations.

Under the Non-UCITS Regulations, the assets of the Trust shall be entrusted to the Trustee for safe-keeping. In carrying out this

duty, the Manager has delegated custody of the Trust’s assets to Northern Trust Fiduciary Services (Ireland) Limited.

Statement of Trustee’s Responsibilities

The Trustee is required under the Financial Regulator non-UCITS Notices (‘the Notices’) to ensure that, inter alia, it:

(i) takes into its custody, or under its control, all the assets of the Trust and holds them in safekeeping for the unitholders in

accordance with the Notices and the Trust Deed;

(ii) enquires into the conduct of the Trust in each accounting period and report thereon to the unitholders, in a report which

shall contain the matters prescribed by the Notices.

Trustee’s Report to the Unitholders of The Baring Global Opportunities Umbrella

Fund

We have enquired into the conduct of the Trust for the year ended 31 July 2007 in our capacity as Trustee of the Trust.

In our opinion the Trust has been managed during the year in all material respects:

(i) in accordance with the limitations imposed on the investment and borrowing powers of the Manager and Trustee by the

Trust Deed and the Unit Trusts Act, 1990; and

(ii) otherwise in accordance with the provisions of the Trust Deed and the Unit Trusts Act, 1990 .

Northern Trust Fiduciary Services (Ireland) Limited Georges Court 54-62 Townsend Street Dublin 2 8 November 2007


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Balance Sheet As at 31 July 2007

31.07.2007 31.07.2006 Notes US$ US$ Assets Financial Assets At Fair Value Through Profit or Loss 1 65,846,558 16,249,659 Subscriptions Receivable 321,422 100,049 Bond Interest Receivable 52,054 13,034 Bank Interest Receivable 22,284 8,409 Dividends Receivable 47,094 37,094 Other Receivables 14,104 535 Cash 6,951,932 2,445,781 73,255,448 18,854,561 Liabilities Financial Liabilities At Fair Value Through Profit Or Loss (46,069) (60,351) Redemptions Payable (665,010) - Management Fees Payable 2 (57,902) (14,862) Administration Fees Payable 2 (22,922) (5,850) Other Payables 2 (13,763) (26,898) Trustee Fees Payable 2 (7,279) (1,041) (812,945) (109,002)

Net Assets Attributable To Holders Of Redeemable Participating Units 72,442,503 18,745,559 Redeemable Participating Units In Issue Asia Balanced Fund 6 3,091,579 1,107,745 Asia Balanced Fund - Dividend Class 6 2,894 N/A NAV Per Redeemable Participating Unit Asia Balanced Fund 23.41 16.92 Asia Balanced Fund - Dividend Class 23.40 N/A

Statement of Changes in Net Assets Attributable to Redeemable Participating

Unitholders For the year ended 31 July 2007

31.07.07

US$ 31.07.06

US$ Net assets attributable to holders of redeemable participating units at the beginning of the year 18,745,559 14,974,567 Increase in net assets for the year attributable to holders of redeemable participating units from operations 14,428,377 3,270,891 Issue of redeemable participating units for the year 80,055,300 2,106,726 Redemption of redeemable participating units for the year (40,786,733) (1,606,625) Net Assets attributable to holders of redeemable participating units at the end of the year 72,442,503 18,745,559 The Financial Statements on pages 11 to 21 and the Portfolio Statement on pages 6 to 8 were approved by the Board of Directors

of Baring International Fund Managers (Ireland) Limited on 8 November 2007 and signed on its behalf by:

Anthony Cooney } Directors Mark Thorne }

The accompanying notes form an integral part of these Financial Statements


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Profit and Loss Account For the year ended 31 July 2007 31.07.07 31.07.06 Notes US$ US$ Income 1 Dividend Income 610,154 248,543 Bond Interest Income 306,448 109,492 Deposit Interest 257,394 39,060 Stocklending Fee Income - 98 Net Fair Value Gain On Financial Assets At Fair Value Through Profit or Loss 14,008,060 3,179,037 Net Investment Income 15,182,056 3,576,230 Expenses 1 Management Fees 2 (421,960) (157,489) Administration Fees 2 (164,394) (62,832) General Expenses 2 (30,475) (32,780) Trustee's Fees 2 (29,196) (11,159) Auditors’ Fees 2 (17,844) (13,642) Sub Custodian's Fees 2 (14,642) (5,595) Total Operating Expenses (678,511) (283,497) Net Income Before Finance Costs 14,503,545 3,292,733 Finance Costs - - Profit before Tax 14,503,545 3,292,733 Withholding Tax (75,168) (21,842) Increase In Net Assets Attributable To Holders Of Redeemable Participating Units from Operations 14,428,377 3,270,891

Gains and losses arose solely from continuing operations. There were no gains or losses other than those dealt with in the Profit

and Loss Account.

The Financial Statements on pages 11 to 21 and the Portfolio Statement on pages 6 to 8 were approved by the Board of Directors

of Baring International Fund Managers (Ireland) Limited on 8 November 2007 and signed on its behalf by:

Anthony Cooney } Directors Mark Thorne }

The accompanying notes form an integral part of these Financial Statements


13

Notes to the Financial Statements

1. Principal Accounting Policies

The principal accounting policies applied in the preparation of these Financial Statements are set out below.

Trust background

The Baring Global Opportunities Umbrella Fund (the “Unit Trust”) is an umbrella trust in that different classes of redeemable participating units may be issued from time to time by the Manager. A separate trust fund is maintained for each class of redeemable participating units and is invested in accordance with the investment objectives applicable to such trust fund. Each redeemable participating unit in the Unit Trust constitutes a beneficial interest in the Unit Trust and represents one undivided share in the property of the relevant Fund. Redeemable participating units are currently being made available in the following classes:

Class of Redeemable participating unit Base Currency

Baring Asia Balanced Fund

Baring Asia Balanced Fund - Dividend Class

US dollars

US dollars

The Asia Balanced Fund Dividend Class launched on 15 June 2007.

The Baring Asia Balanced Fund is aimed specifically, but not exclusively, at meeting the investment requirements of Hong Kong based retirement schemes and its investment objective and policies have been tailored accordingly, namely, to achieve a long term annualised real rate of return in excess of 2 per cent per annum above Hong Kong wage inflation, when measured in Hong Kong dollar terms. Accordingly, it is the intention of the Manager that the Fund will normally include a diversified range of international equities and debt securities, generally with a significant exposure to Asian equities. Investment may also be made in cash and money market instruments where considered appropriate in light of market conditions.

Basis of preparation

The Baring Global Opportunities Umbrella Fund (the “Trust”) has been authorised by the Financial Regulator as an undertaking for collective investment in transferable securities pursuant to the Unit Trust Act, 1990 and the provisions of the Hong Kong Code on Unit Trusts and Mutual Funds and the Trust Deed, supplemented or consolidated from time to time. The Financial Statements have been prepared in accordance with accounting standards generally accepted in Ireland and Irish Statute comprising the Unit Trusts Act, 1990 and the provisions of the Hong Kong Code on Unit Trusts and Mutual Funds. Accounting standards generally accepted in Ireland in preparing Financial Statements giving a true and fair view are those published by the Institute of Chartered Accountants in Ireland and issued by the Accounting Standards Board (“ASB”).

The format and certain wordings of the Financial Statements have been adapted from those contained in the FRS 3 “Reporting Financial Performance” so that, in the opinion of the directors, they more appropriately reflect the nature of the Trust’s business as an investment fund.

The Trust has availed of the exemption available to open-ended investment funds under FRS 1 not to prepare a Cash Flow Statement.

Historical cost convention

The Financial Statements have been prepared under the historical cost convention as modified by the revaluation of financial assets and financial liabilities, including derivative financial instruments held at fair value through profit or loss.

Foreign exchange translation

(a) Functional and presentation currency

Items included in the Trust’s Financial Statements are measured using the currency of the primary economic environment in which it operates (‘the functional currency’). The functional and presentation currency of the Trust is the US dollar, which reflects the fact that all the redeemable participating units have been subscribed and redeemed in US dollars.

(b) Transactions and balances

Foreign currency transactions are translated into the functional and presentation currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Profit and Loss Account.


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1. Principal Accounting Policies

Financial assets and liabilities at fair value through profit or loss

(a) Classification

The Trust classifies its investments in bonds, collective investment schemes, equity securities and forward foreign currency contracts, as financial assets or financial liabilities at fair value through profit or loss. These financial assets and financial liabilities are classified as held for trading or designated by the Board of Directors of the Manager at fair value through profit or loss at inception.

Financial assets or financial liabilities held for trading are those acquired or incurred principally for the purposes of selling or repurchasing in the short term. Financial assets and financial liabilities designated at fair value through profit or loss at inception are those that are managed and their performance evaluated on a fair value basis in accordance with the Trust’s documented investment strategy. The Trust’s policy is for the Investment Manager and the Board of Directors of the Manager to evaluate the information about these financial assets on a fair value basis together with other related financial information. These financial assets are expected to be realised within 12 months of the Balance Sheet date.

(b) Recognition/derecognition

Regular-way purchases and sales of investments are recognised on the trade date – the date on which the Trust commits to purchase or sell the investment. Investments are derecognised when the rights to receive cash flows from the investments have expired or the Trust has transferred substantially all risks and rewards of ownership.

(c) Measurement

Financial assets and financial liabilities at fair value through profit or loss are initially recognised at fair value. Transaction costs are expensed in the Profit and Loss Account. Subsequent to initial recognition, all financial assets and financial liabilities at fair value through profit or loss are measured at fair value. Gains and losses arising from changes in the fair value of the ‘financial assets or financial liabilities at fair value through profit or loss’ category are presented in the Profit and Loss Account in the period in which they arise. Interest income from financial assets at fair value through profit or loss is recognised in the Profit and Loss Account using the effective interest method. Dividend income from financial assets at fair value through profit or loss is recognised in the Profit and Loss Account when the Trust’s right to receive payments is established. Financial instruments were valued at last traded prices as at 12 noon Dublin time on 31 July 2007 in accordance with the Trust Prospectus.

(d) Fair value estimation

The fair value of financial instruments traded in active markets (such as publicly traded securities) is based on quoted market prices at the Balance Sheet date. The quoted market price used for financial assets held by the Trust is the current bid price; the appropriate quoted market price for financial liabilities is the current asking price. When the Trust holds derivatives with offsetting market risks, it uses mid-market prices as a basis for establishing fair values for the offsetting risk positions and applies this bid or asking price to the net open position, as appropriate.

The fair value of financial instruments that are not traded in an active market (for example, over-the counter derivatives) is determined by using valuation techniques. The Trust uses a variety of methods and makes assumptions that are based on market conditions existing at each Balance Sheet date. Valuation techniques used include the use of comparable recent arm’s length transactions, discounted cash flow analysis, option pricing models and other valuation techniques commonly used by market participants.

Income from investments

Interest income and expense are recognised in the Profit and Loss Account for all debt instruments using the effective interest method.

The effective interest method is a method of calculating the amortised cost of a financial asset or financial liability and of allocating the interest income or interest expense over the relevant period.

The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts throughout the expected life of the financial instrument, or a shorter period where appropriate, to the net carrying amount of the financial asset or financial liability.

Once a financial asset or a group of similar financial assets has been written down as a result of an impairment loss, interest income is recognised using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss.

Dividends are credited to the Profit and Loss Account on the dates on which the relevant securities are listed as "ex-dividend". Dividend income is shown gross of any withholding taxes, which is disclosed separately in the Profit and Loss Account, and net of any tax credits.


15


1. Principal Accounting Policies (continued)

Cash and other liquid assets

Cash and other liquid assets will be valued at their face value together with interest accrued, where applicable.

Receivables

Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Receivables are recognised initially at fair value plus transaction costs that are directly attributable to their acquisition origination. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously.

Redeemable Participating Units

Redeemable participating units are redeemable at the unitholder’s option and are classified as financial liabilities.

The redeemable participating unit can be put back to the Trust at any time for cash equal to a proportionate unit of the Trust’s net asset value. The redeemable participating unit is carried at the redemption amount that is payable at the Balance Sheet date if the Unitholder exercised their right to put the redeemable participating unit back to the Trust.

Operating Expenses

The Trust is responsible for all normal operating expenses including audit fees, stamp and other duties and charges incurred on the acquisition and realisation of investments. The Manager meets all other expenses incurred by it in connection with its services. Operating expenses are recognised on an accruals basis.

2. Fees and Other Expenses

Management/Administration/Trustee Fees

The management charge is payable monthly in arrears and is calculated by reference to the value of the net assets of the Trust at each day. The Manager currently makes a charge in respect of the Trust as described below, which may be increased to an amount not exceeding 2 per cent per annum on giving not less than three months’ notice to unitholders. The Manager currently charges a management fee for the Baring Asia Balanced Fund (the “Fund”) at a rate of 1 per cent per annum of the value of the net assets of the Fund. The Trustee will charge a fee of 0.10 per cent per annum of the net asset value of the Fund. The Administrator will charge at the rate of 0.375 per cent per annum of the value of the net asset of the Fund. The Administrator and Trustee are also entitled to be reimbursed all out of pocket expenses incurred by them in the course of their respective duties, including all fees and charges of sub-custodians appointed by the Trustee (including the fees and expenses of any sub-sub custodians) which shall be borne by the Fund.

Where the net asset value of any Trust includes values in respect of interest in any investment fund managed by a subsidiary of the investment manager (a “Barings fund”), the fee payable to the Manager shall not accrue in respect of any holding of that fund in any such Barings fund at the relevant rate set out above but shall accrue at a lower rate equal to the percentage rate (if any) by which the rate for such fund set out above exceeds the annual rate charged to the Barings fund for comparable management services.

Other Expenses

The Trustee pays out of the assets of the Trust the above fees and expenses, stamp duties, taxes, brokerage or other expenses of acquiring and disposing of investments, the fees and expenses of the auditors, listing fees and legal expenses of the Manager. The costs of printing and distributing reports, accounts and any Prospectus, publishing prices and any costs incurred as a result of a change in law or the introduction of any new law (including any costs incurred as a result of compliance with any code relating to trusts, whether or not having the force of law) are also paid out of the assets of the Trust. Expenses will be charged to the Trust in respect of which they were incurred.


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Notes to the Financial Statements 3. Related Party Disclosures

Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions.

(a) Management fee The Fund is managed by Baring Asset Management (Asia) Limited (the ‘Investment Manager’), an investment management company incorporated in London on 6 April 1994. The Investment Manager is part of the Baring Asset Management group and is a wholly owned subsidiary of MassMutual. The management fees rate on the Fund classes is disclosed in Note 2. The outstanding amounts payable as at the year end for Management fee are disclosed on each Fund’s Balance Sheet. Richard Bellis (appointed 14 August 2007), William Collins (resigned 3 August 2007), Ian Pascal and Paul Savage are connected through employment with the Manager.

(b) Administration fee The Fund has engaged the services of Northern Trust International Fund Administration Services (Ireland) Limited to provide administration services for a fee. The administration fee on the Fund classes is disclosed in Note 2. Such fee shall accrue and be calculated on each Dealing Day and be payable monthly in arrears. The Administrator is also entitled to be repaid out of the assets of the Trust all of its reasonable out-of-pocket expenses incurred on behalf of the Trust which includes legal fees, couriers' fees and telecommunication costs and expenses. Anthony Cooney is a director of the Manager and also a director of the Administrator.

(c) Legal fee Mark Thorne is a partner of the Legal Advisor and a director of the Manager. The fees paid to Dillon Eustace during the year amounted to US$829 (2006: US$15,319). (d) Directorships in other collective investment schemes The Trust has invested in a number of collective investment schemes where there is a number of common directors and managers. In relation to the Baring Eastern Europe Fund and the Baring Global Emerging Markets Fund the directors and the manager are the same as this Trust. With regard to the Baring Russia Fund, Paul savage is also a director of this fund.

4. Financial Risk Management

In accordance with its investment objectives and policies, the Trust holds financial instruments, which at any one time may comprise the following:

- securities held in accordance with the investment objectives and policies.

- cash and short-term debtors and creditors arising directly from operations.

- derivative transactions including forward currency contracts.

A more detailed review of the portfolio activities for the year is available in the Investment Manager’s Report . The investments listed on the Portfolio Statement are stated at fair value as described in Note 1.

The main risks arising from the Trust’s financial instruments are market price, foreign currency, interest rate and liquidity risk. The Manager reviews and agrees policies for managing each of these risks and they are summarised below. These policies have remained substantially unchanged since the beginning of the year to which these Financial Statements relate.

(a) Market risk

Market risk arises mainly from uncertainty about future prices of financial instruments held. It represents the potential loss the Trust might suffer through holding market positions in the face of price movements. The Investment Manager considers the asset allocation of the portfolio in order to minimise the risk associated with particular countries or industry sectors whilst continuing to follow the Trust’s investment objectives.

(b) Foreign currency risk

A substantial portion of the net assets of the Trust are denominated in currencies other than US dollar (which is the Trust’s functional and presentation currency), with the effect that the Balance Sheet and total return can be significantly affected by currency movements.

The following table sets out the Trust’s total exposure to foreign currency risk, the value to be received under foreign currency contracts designed to hedge this exposure and the resulting net unhedged amounts invested in assets denominated in foreign currency.


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4. Financial Risk Management (continued)

Forward Currency Net Foreign Currency Currency Exposure Contracts Monetary Assets Baring Asia Balanced Fund (US$’000) 2007 2006 2007 2006 2007 2006 Australian dollar 1,491 155 - - 1,491 155 Canadian dollar - 93 - - - 93 Euro 8,331 2,549 4,020 692 12,351 3,241 Hong Kong dollar 19,139 3,762 (14) - 19,125 3,762 Indonesian rupiah 1,020 - - - 1,020 - Japanese yen 2,329 2,115 5,072 1,097 7,401 3,212 Korean won 3,459 727 - - 3,459 727 Malaysian ringgit 1,737 - - - 1,737 - New Taiwan dollar 2,319 378 - - 2,319 378 Norwegian krone 241 88 - - 241 88 Philippine peso 576 - - - 576 - Pound sterling 3,589 2,055 (345) 162 3,244 2,217 Singapore dollar 3,293 1,070 170 - 3,463 1,070 Swiss franc 2,157 328 - - 2,157 328 Thai baht 266 - - - 266 - 49,947 13,320 8,903 1,951 58,850 15,271 (c) Interest Rate Risk The Trust invests in the desired currencies at both fixed and floating rates of interest. The interest rate profile of interest paying assets is as follows: (US$’000) Fixed Rate Currency 2007 2006 Australian dollar 233 151 Canadian dollar - 93 Euro 1,050 911 Japanese yen 784 765 Pound sterling 449 336 US dollar 7,692 833 10,208 3,089

Currency Weighted Average Fixed

Interest Rate% Period for which rate is fixed

(years) 2007 2006 2007 2006 Australian dollar 5.50 5.50 6.36 8.01 Canadian dollar - 4.50 - 8.84 Euro 3.97 3.97 10.74 10.34 Japanese yen 1.40 1.79 3.70 3.81 Pound sterling 6.59 4.26 6.07 1.56 US dollar 4.35 3.65 1.16 8.82 (d) Liquidity risk

The Trust’s assets comprise mainly of readily realisable securities. The main liability of the Trust is the redemption of any redeemable participating units that investors wish to sell.

The Trust is exposed to daily cash redemptions of redeemable participating units. It therefore invests the majority of its assets in investments that are traded in an active market and can be readily disposed of. It invests only a limited proportion of its assets in investments not actively traded on a stock exchange. The Trust’s listed securities are considered readily realisable as they are listed and traded on regulated markets. The Trust has the ability to borrow in the short term to ensure settlement.

(e) Credit risk

The Trust is exposed to credit risk on parties with whom it trades and also bears the risk of settlement default.

The Trust’s credit risk arises in respect of debt and equity securities. All transactions in listed securities are settled/paid for upon

delivery using approved brokers. The risk of default is considered minimal, as delivery of securities sold is only made once the

broker has received payment. Payment is made on a purchase once the securities have been received by the broker. The trade will

fail if either party fails to meet their obligation.


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Notes to the Financial Statements 4. Financial Risk Management (continued)

(f) Fair value of financial assets and financial liabilities

There is no material difference between the value of the financial assets and liabilities, as shown in the Balance Sheet and their fair value.

(g) Developing countries and political risk

The Trust is exposed to various risks associated with investments held in developing countries. Companies in developing countries are generally not subject to accounting, auditing and financial reporting standards, practices and disclosure requirements comparable to those applicable to companies in the developed world. In addition, there is generally less government supervision and regulation of stock exchanges, brokers and listed companies in most developing countries than in countries with more advanced markets. As a result, there may be less information available publicly to investors in developing country securities than to investors in companies’ securities in the United Kingdom and the United States securities markets; such information as is available is often less reliable.

5. Comparative Statistics

2007 2006 2005 US$ US$ US$ Net asset value 72,442,503 18,745,559 14,974,567 Net asset value per redeemable participating unit: Asia Balanced Fund 23.41 16.92 13.87 Asia Balanced Fund – Dividend Class 23.40 N/A N/A

The highest issue and lowest redemption prices of the Trust since inception are stated below: Asia Balanced Fund 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ Highest issue price during the year 24.11 18.40 14.22 13.21 10.50 10.67 14.46 15.65 13.01 12.19 Lowest redemption price during the year 16.91 13.85 11.95 10.23 8.74 8.76 10.12 12.16 9.91 9.85 Asia Balanced Fund – Dividend Class 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 US$ US$ US$ US$ US$ US$ US$ US$ US$ US$ Highest issue price during the year 24.10 N/A N/A N/A N/A N/A N/A N/A N/A N/A Lowest redemption price during the year 23.09 N/A N/A N/A N/A N/A N/A N/A N/A N/A


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Notes to the Financial Statements 6. Units Issued and Redeemed

Baring Asia Balanced Fund 31/07/2007 31/07/2006 Units Units By Number: Redeemable Participating Units in issue as at 1 August 2006 1,107,745 1,079,526 Redeemable Participating Units issued 3,894,174 132,004 Redeemable Participating Units redeemed (1,910,340) (103,785) Redeemable Participating Units in issue as at 31 July 2007 3,091,579 1,107,745 By Value: Capital Value of Redeemable Participating Units issued 79,987,881 2,106,726 Capital Value of Redeemable Participating Units redeemed (40,786,733) (1,606,625) Net Value of Redeemable Participating Units issued during the year 39,201,148 500,101

Baring Asia Balanced Fund – Dividend Class 31/07/2007 Units By Number: Redeemable Participating Units in issue as at 15 June 2007 - Redeemable Participating Units issued 2,894 Redeemable Participating Units redeemed - Redeemable Participating Units in issue as at 31 July 2007 2,894 By Value: Capital Value of Redeemable Participating Units issued 67,419 Capital Value of Redeemable Participating Units redeemed - Net Value of Redeemable Participating Units issued during the period 67,419

7. Exchange Rates The year end exchange rates for 2007 were as follows: Exchange Rate to US$1 Exchange Rate to US$1 Australian dollar 1.1640 New Taiwan dollar 32.8000 Euro 0.7301 Norwegian krone 5.8137 Hong Kong dollar 7.8260 Philippine peso 45.3350 Indonesian rupiah 9215.0000 Pound sterling 0.4923 Japanese yen 119.3300 Singapore dollar 1.5118 Korean won 918.6500 Swiss franc 1.2055 Malaysian ringgit 3.4565 Thai baht 33.775 The year end exchange rates for 2006 were as follows: Exchange Rate to US$1 Exchange Rate to US$1 Australian dollar 1.3050 Korean won 955.7000 Canadian dollar 1.1303 New Taiwan dollar 32.7480 Danish krone 5.8472 Pound sterling 0.5356 Euro 0.7836 Singapore dollar 1.5764 Hong Kong dollar 7.7713 Swiss franc 1.2314 Japanese yen 114.4350

8. Soft Commission Arrangements

There were no soft commission arrangements affecting the Trust during the year ended 31 July 2007.

9. Transactions with Connected Parties There were no transactions with connected parties, other than as disclosed in Note 3 Related Party Disclosures, during the year ended 31 July 2007.

10. Statement of Portfolio Movements A statement of changes in the composition of the investment portfolio will be issued to Unitholders, free of charge, on request.

11. Efficient Portfolio Management Currency hedging strategies for the purpose of efficient portfolio management were employed in the management of the Trust.

Forward foreign exchange contracts are used for efficient portfolio management purposes to manage the interest rate risk on the

portfolio of securities and bonds held by the Trust and to enhance the overall return thereon. Any such instruments are used under

the conditions and within the limits laid down by the Financial Regulator. Realised gains and losses arising on such investments are

recognised in the Profit and Loss Account.


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Notes to the Financial Statements 12. Taxation

Under current law and practice the Trust qualifies as an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997, as amended. On that basis, it is not chargeable to Irish tax on its income or gains.

However, Irish tax may arise on the happening of a "chargeable event". A chargeable event includes any distribution payments to unitholders or any encashment, redemption, cancellation or transfer of redeemable participating units. No Irish tax will arise on the Trust in respect of chargeable events in respect of:

(a) a unitholder who is neither Irish resident nor ordinarily resident in Ireland for tax purposes, at the time of the chargeable event, provided appropriate valid declarations in accordance with the provisions of the Taxes Consolidation Act, 1997, as amended, are held by the Trust; and

(b) certain exempted Irish tax resident unitholders who have provided the Trust with the necessary signed statutory declarations.

Dividends, interest and capital gains (if any) received on investments made by the Trust may be subject to withholding taxes imposed by the country from which the investment income/gains are received and such taxes may not be recoverable by the Trust or its unitholders.

13. Subsequent Events

William Collins resigned from the Board of Directors of the Manager on 3 August 2007. Richard Bellis was appointed on 14 August 2007.

There were no other events subsequent to the year end, which, in the opinion of the Directors of the Manager, may have had an impact on the Financial Statements for the year ended 31 July 2007.

14. Fair value gain/ (loss) on investments

Fair Value

Realised and unrealised gains/losses charged to

profit and loss Fair Value

Realised and unrealised gains/losses charged to

profit and loss 31/07/2007 31/07/2007 31/07/2006 31/07/2006 US$ US$ US$ US$Equities, Bonds and Fund of Funds 65,779,114 13,828,213 16,244,664 4,789,984Forward contracts 21,375 179,847 (55,356) (1,610,947) 65,800,489 14,008,060 16,189,308 3,179,037

15. Approval of Financial Statements

The Financial Statements were approved by the Board of Directors of the Manager on 8 November 2007


21

Notes to the Financial Statements 17. Statement of Movements in Portfolio Holdings

31 July

2007 31 July

2006 31 July

2005 Collective Investment Schemes % % Ireland 6.59 2.87 1.01 Luxembourg 0.50 1.40 2.43 Equities Australia 1.71 - - Austria 1.32 1.09 0.72 Belgium 0.67 0.59 0.66 China/Hong Kong 26.31 20.24 19.82 Denmark - - 0.86 Finland - - 0.65 France 2.30 1.65 3.49 Germany 2.69 1.84 0.75 Greece 0.96 0.72 - Indonesia 1.39 - - Ireland - 1.00 - Italy 0.64 0.64 - Japan 2.13 7.18 8.46 Malaysia 3.47 - 1.44 Netherlands 1.43 0.58 1.36 Norway 0.33 0.47 - Philippines 0.79 - - Singapore 3.21 5.69 5.13 South Korea 4.78 3.86 4.43 Spain - 0.54 - Switzerland 2.97 1.75 1.82 Taiwan 3.16 1.98 5.47 Thailand 0.37 - - United Kingdom 4.96 9.70 6.09 United States 4.03 6.41 9.78 Fixed Interest Australia 4.42 0.80 - Canada - 0.49 0.27 Cayman Islands 0.43 - - France 0.28 - 5.98 Germany 1.17 4.86 3.54 Ireland 0.33 0.89 - Italy 0.13 0.51 - Japan - - 0.47 Luxembourg 0.19 0.77 1.14 Mexico - - 1.58 Singapore 1.21 United Kingdom 0.62 1.79 1.21 United States 6.52 6.35 8.15 Open Forward Foreign Currency Transactions 0.03 (0.30) (0.05) Total Investments at Fair Value 90.83 86.36 97.87 Other Net Assets 9.17 13.64 2.13 Total Net Assets 100.00 100.00 100.00


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General Information

The Trust is constituted under the laws of Ireland by a Trust Deed dated 26 April, 1996 made between Baring International Fund Managers (Ireland) Limited as Manager (the "Manager") and Northern Trust Fiduciary Services (Ireland) Limited formerly Barings (Ireland) Limited as Trustee (the "Trustee").

The Trust is an umbrella trust in that different classes of redeemable participating units may be issued from time to time by the Manager. A separate trust fund (a "Fund") is maintained for each class of redeemable participating unit and is invested in accordance with the investment objectives applicable to such Fund. Each redeemable participating unit is equal to one undivided share in the property of the relevant Fund. Redeemable participating units are currently available in the Baring Asia Balanced Fund and Baring Asia Balanced Fund Dividend class. Redeemable participating units of other classes may be introduced by the Manager from time to time with the approval of the Financial Regulator. On the introduction of any new class of redeemable participating units the Manager will prepare and issue documentation setting out the relevant details relating to each such class of redeemable participating units.

The Unit Trust is valued on each Dealing Day following the initial issue and redeemable participating units may normally be purchased or realised by application to Baring Asset Management Limited (“BAML”) or Baring Asset Management (Asia) Limited (“BAMA”) on a Dealing Day. Dealing Days are every business day and/or such other day or days as the Manager, with the approval of the Trustee, may determine. A business day is any day, other than a Saturday or Sunday, on which banks in both Dublin and London are open for business.

The Manager may decline any application for redeemable participating units in whole or in part and will not accept subscriptions for redeemable participating units of an amount (inclusive of the preliminary charge) which is less than US$5,000. A preliminary charge of up to 6 per cent (or such higher amounts as may be approved by an Extraordinary Resolution) of the amount invested may be made and retained by the Manager but it is the intention of the Manager that such charge should not, until further notice, exceed 5 per cent.

All Unitholders are entitled to the benefit of, are bound by and are deemed to have notice of, the provisions of the Trust Deed, copies of which are available as mentioned in the Prospectus.

Information in this section is selective and should be read in conjunction with the full text of the Prospectus.

Risk Factors

Potential investors should note that the investments of the Trust are subject to normal market fluctuations and other risks inherent in investing in securities and there can be no assurance that any appreciation in value will occur. Part of the assets of the Trust may also be invested in emerging and developing markets, some of which remain exposed to the risk of radical political and economic change which could adversely affect the investments made by the Trust in these markets. Such markets may also be less liquid than stockmarkets in more developed countries and accumulation and disposal of investments on these markets may be time-consuming or only possible at unfavourable prices, while accounting, financial reporting and disclosures standards in such markets may be less rigorous than in more developed countries.

The value of investments and therefore the value of the redeemable participating units of the Fund can go down as well as up and an investor may not get back the amount he invests. Changes in exchange rates between currencies may also cause the value of the investment to diminish or increase. An investor who realises redeemable participating units after a short period may, in addition, not realise the amount originally invested in view of the preliminary charge which may be made on the issue of redeemable participating units.


23

General Information

Investment Objectives and Policies

The Trust is aimed specifically, but not exclusively, at meeting the investment requirements of Hong Kong-based retirement schemes and its investment objectives and policies have been tailored accordingly, namely, to achieve a long-term annualised real rate of return in excess of 2 per cent per annum above Hong Kong wage inflation, when measured in Hong Kong dollar terms. Accordingly, it is the intention of the Manager that the Trust will normally include a diversified range of international equities and debt securities, generally with a significant exposure to Asian equities. Investment may also be made in cash and money market instruments where considered appropriate in light of market conditions. Equities include equity-related instruments such as convertible securities, warrants, depository receipts and other equity-related securities.

The debt securities in which the assets of the Trust may be invested from time to time may include both fixed and floating rate securities issued by governments, local authorities, public international bodies and corporate issuers rated at least BAA by Moody’s rating agency or BBB by Standard & Poor’s rating agency or which are, in the opinion of the Manager, of similar credit status. The policy of the Manager is to maintain a well-diversified portfolio in terms of asset classes, countries and currencies. In doing so, there will be no limits placed on the proportion of the assets of the Trust which may be invested in any one country other than as set out under “Investment Restrictions” in the Prospectus.

Market Timing

Repeatedly purchasing and selling redeemable participating units in the Trust in response to short-term market fluctuations – known as ‘market timing’ – can disrupt the Manager’s investment strategy and increase the Trust’s expenses to the prejudice of all Unitholders. The Trust is not intended for market timing or excessive trading. To deter these activities, the Manager may refuse to accept an application for redeemable participating units from persons that they reasonably believe are engaged in market timing or are otherwise excessive or potentially disruptive to the Trust.

The Manager reserves the right to redeem redeemable participating units from a Unitholder, on the basis of the circumstances of the Unitholder concerned, or it has reasonable grounds to believe that the Unitholders are engaging in any activity which might result in the Trust or its Unitholders as a whole suffering any legal, regulatory, reputational or other material, disadvantage which the Trust or its Unitholders as a whole might not otherwise have suffered.

Distribution Policy

On the Asia Balanced Fund – Dividend Class it is intended to distribute when income is available. For the Asia Balanced Fund it is not intended to distribute to Unitholders any income, all such income being accumulated within the Trust.


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Enquiries

Baring Asset Management Limited 155 Bishopsgate London EC2M 3XY England Telephone: + 44 20 7628 6000 Facsimile: + 44 20 7638 7928 Authorised and regulated by the Financial Services Authority Baring Asset Management (Asia) Limited 19th Floor, Edinburgh Tower 15 Queen’s Road Central Hong Kong Telephone: + 852 2 841 1411 Facsimile: + 852 2 526 7129 Baring International Fund Managers (Ireland) Limited Georges Court 54-62 Townsend Street Dublin 2 Ireland Telephone: + 353 1 542 2000 Facsimile: + 353 1 542 2920

Baring Asset Management Limited

155 Bishopsgate

London EC2M 3XY

Telephone: 020 7628 6000

(Authorised and regulated by the Financial Services Authority)

www.barings.com

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