Glossary: Martin Currie Global Portfolio Trust

Glossary

Discount	When the share price is lower than the NAV per share, the shares are trading at a discount (shown as a percentage). Normally an investment trust operates at a discount rather than a premium. Martin Currie Global Portfolio manages its discount to remain in single figures.
Net asset value (NAV)	The total market value of the investments held less any costs or borrowings.
NAV per share	The net asset value divided by the number of shares in issue.
Share buybacks	Martin Currie Global Portfolio has the option to buy back its own shares and cancel them if the directors think this will benefit the company especially if the share price is at a discount to the NAV. While buybacks reduce the total NAV, the advantage is that they increase the NAV per share.
Dividend	Dividends are paid from the profits of the company. Martin Currie Global Portfolio pays dividends twice a year (June and October).
Gearing	The company can borrow to buy investments if the manager expects the stock market to rise. This is called gearing and enables the manager to make a greater return on the money borrowed.
Redeeming your shares	You can sell back shares at net asset value (less costs) every five years, even if the share price in the market is lower. The next opportunity to do so will be in 2014. In addition, every year, if the average discount is more than 7.5% over the 12 weeks before each financial year-end, shareholders can redeem their shares at net asset value (less costs).

For more information on investment trusts, visit the website of the Association of Investment Companies at www.theaic.co.uk.