11 For personal use only - Australian Securities · PDF file275 Kent Street Sydney NSW 2000...

11 Aberdeen Leaders LimitedABN 25 003 236 173

Annual Report and Accounts

30 June 2011

Aberdeen Asset Management LimitedLevel 6, 201 Kent St

Sydney NSW 2000

Phone: +61 2 9950 2888 Fax: +61 2 9950 2800

Toll Free: 1800 636 888

Email: [email protected]

Website: www.aberdeenasset.com.au

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Corporate Information

Directors

BM Sherman, AM, B Comm, SA Fin (Chairman)

NJ Miles, BComm (Hons), CA

DL Elsum, AM, BEE (Hons), B Comm, MSc, FCPA

AM Daniels, B Ec

Company Secretary

G Orski BCom, LLB

Registered Office

Level 6, 201 Kent Street

Sydney

NSW 2000

Auditor

Deloitte Touche Tohmatsu

Grosvenor Place

225 George Street Sydney

NSW 2000

Bankers

Westpac Institutional Bank

Level 3

275 Kent Street

Sydney

NSW 2000

Custodian

BNP Paribas Security Services Limited

Level 8, 60 Castlereagh Street

Sydney

NSW 2000

Share Registrar

BoardRoom Pty Limited

Level 7

207 Kent Street

Sydney

NSW 2000

Telephone +61 2 9290 9600

www.investorserve.com.au

This document has been printed with soy based inks on 100% recycled paper, manufactured with 75% post consumer and 25% pre consumer waste. No virgin fibres used. Elemental chlorine free.

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Contents

2 Corporate Summary

Annual Report

3 Your Board

4 Information about the Manager

5 Financial Record

8 Chairman’s Statement

10 Manager’s Review

11 Investment Portfolio and Sector Analysis

12 The Investment Process and Team

14 Corporate Governance Statement

Directors’ Report and Financial Statements

21 Directors’ Report

28 Auditor’s Independence Declaration

29 Statement of Comprehensive Income

30 Statement of Financial Position

31 Statement of Changes in Equity

32 Statement of Cash Flows

33 Notes to and forming part of the Financial Statements

56 Directors’ Declaration

57 Independent Audit Report

59 Additional Information


Aberdeen Leaders Limited 1

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Corporate Summary

The Company

Aberdeen Leaders Limited (ABN 25 003 236 173) is a listed investment company and its shares are listed on the Australian Securities

Exchange (ASX: ALR). The Company holds an Australian Financial Services Licence No. 246498.

Objective

The Company invests primarily in Australian companies within the S&P/ASX200 Index with the objective of delivering regular income

and long term capital growth.

Benchmark

The Company compares its performance with the S&P/ASX200 Accumulation Index.

Investment Manager

The Company has outsourced its investment management function to Aberdeen Asset Management Limited which holds an Australian

Financial Services Licence No. 240263.

Capital Structure

The Company’s capital structure comprises Ordinary Shares only. The Company also has bank borrowings of $30 million under a cash

advance facility which rank for repayment ahead of any capital return to shareholders.

Total Assets and Net Tangible Assets

The Company had total assets of $104 million and an NTA per share of 1.24 cents, 1.22 cents net of deferred tax on unrealised gains

as at 30 June 2011.

Duration

The Company does not have a maximum fixed life.

Risk

The Company invests in shares listed on the ASX. The value of shares and the income derived may fall or rise depending on a range of

factors.

The Company currently utilises gearing through bank borrowings as noted above and as detailed in Note 12 on page 43. Gearing has

the effect of exacerbating market falls and market gains.

Management Agreement

The Company has an agreement with Aberdeen Asset Management Limited for the provision of management services, details of which

are contained in the Directors’ Report on page 23.

The Directors review the terms of the investment management agreement on an annual basis.


Aberdeen Customer Services

Toll free: 1800 636 888 or +61 2 9950 2888


2 Aberdeen Leaders Limited

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Your Board

Brian Michael Sherman, AM, B Comm, SA Fin

Chairman

Brian Sherman has been a Director of the Company since inception in 1987. He was appointed Chairman on 20 February 2004 and

brings to the position his considerable experience gained in both funds management and stockbroking, as well as general commercial

fields of endeavour.

He is currently a director of a number of other listed investment companies in the USA.

He was chairman and joint managing director of the funds management company EquitiLink, a director of SOCOG and chair of its

finance committee and a director of Channel 10 for some 16 years.

Mr Sherman was appointed as a member of the Order of Australia 2004 for his service to the community as a philanthropist and

benefactor to arts, education and sporting organisations, and to business and commerce. Mr Sherman was the winner of the Ernst &

Young Eastern Region Champion of Entrepreneurship 2006 and in 2009 was awarded an Honorary Doctor of Letters (HonLittD) from

the University of Technology Sydney (UTS) for his significant philanthropic support for the community.

Director since 1987.

Neville John Miles, B Comm (Hons), CA

Neville Miles has over twenty years of international investment banking experience. He was formerly Head of Corporate Treasury

at Westpac Banking Corporation and subsequently has been Managing Director of Ord Minnett Securities Limited and Director of

EL&C Baillieu Limited, Sydney. Mr Miles is a director of a number of other listed and unlisted companies. Mr Miles chairs the Risk and

Compliance Committee and the Audit Committee.


David Lindsay Elsum, AM, BEE (Hons), B Comm, MSc, FCPA

In 1973 David Elsum became the founding Managing Director of Capel Court Merchant Bank. He was subsequently Managing Director

of Renison Goldfields Consolidated Limited and MLC Limited. Mr Elsum is a member of the Risk and Compliance Committee and the

Audit Committee.


Augustine Mark Daniels, B Ec

Mark Daniels is an Investment Director within the Australian equities team. Mark has spent over 25 years with Aberdeen, much

of that as a UK equity manager, in particular of closed ended funds. Since moving to Sydney in 2005, Mark has helped embed the

Group’s highly regarded, bottom-up investment process. Previously, Mark worked for Cork Gully where he was a supervisor responsible

for receiverships and liquidations. Prior to that, Mark worked as an articled clerk at Coopers & Lybrand. Mark graduated with a BA in

Economics from University College, Cardiff in the UK.

Gil Orski, BCom, LLB

Company Secretary

Gil Orski is COO for Aberdeen Asset Management Limited most recently having been Legal Counsel. Prior to joining Aberdeen he had

several roles in the Australian financial services industry including at the Australian Securities and Investments Commission.

Company Secretary since February 2007.


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Information about the Manager

Aberdeen Asset Management Limited, Australia, is the Manager of the Company. It is a subsidiary of Aberdeen Asset Management

PLC (“Aberdeen”) whose group of companies as at 30 June 2011 managed a combined A$279 billion for institutions, unit trusts, listed

investment companies, offshore funds and private clients.

Aberdeen has its headquarters in Aberdeen, Scotland, and operates 30 offices in 23 countries around the world. Clients access

Aberdeen’s investment expertise across the three asset classes of equities, fixed income and property. Aberdeen follows a

predominantly long-only approach, based on fundamentally sound investments. Aberdeen’s investment teams are based in the

markets or regions in which they invest.

Global reach, local understanding

We know global markets from the local level upwards. We believe our focus, size and approach enable us to provide effective asset

management and superior client service.

Our teams champion original thinking and knowledge, so investment decisions are based only on our own research.

As a group, we have the scale to provide global coverage of financial markets, yet we are small enough to focus on each

and every portfolio decision.

Close-knit teams, clear investment processes and flat structures are important to us. We seek to grow our clients’ assets in a way that

is manageable and sustainable over the longer term.

Aberdeen in Australia

Aberdeen commenced its Australian operations in December 2000, and as at 30 June 2011 had around A$18 billion in assets under

management and advice. In addition to managing the investments of a number of Australian registered funds, Aberdeen in Australia

also manages the Aberdeen Group’s Australian and New Zealand assets for a range of global and domestic clients.


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Net Tangible Assets

At 30 June 2011

NTA per share (pre-tax) $1.24

NTA per share (post-tax) $1.22

Share Price $1.19

Premium to NTA (pre-tax) -4.03%

Premium to NTA (post-tax) -2.46%

Annualised dividend yield (100% franked)* 7.95%

*11.4% gross of franking credit

Performance Summary

At 30 June 2011

3 Months%

12 Months%

3 Years% pa

5 Years% pa

Total portfolio* -3.73 9.46 1.16 4.34

Benchmark** -4.02 11.73 0.32 2.38

Net Assets (pre-tax) -5.01 6.87 -1.89 0.69

Net Assets (post-tax) -2.93 6.82 -0.57 2.42

Share Price -3.74 1.02 -3.78 0.60

All returns assume reinvestment of dividends.* Performance is calculated based on the change in the value of the total portfolio (excluding the loan and tax liabilities) before deduction of all other fees. Past performance is not a guide to future performance.** Benchmark: S&P/ASX 200 Accumulation Index.

Portfolio Composition

At 30 June 2011

Equities 97.5%

Cash 2.5%

Total 100.0%

Dividend

At 30 June 2011

Year ended30 June 2011




Dividend – cpu 9.5 9.5 9.0 10.0

Share price ($)* 1.195 1.27 1.19 1.67

Dividend yield % ** 7.95 (11.4) 7.5 (10.7) 7.6 (10.8) 6.0 (8.6)

* Share price at the period end** figure in brackets is the yield gross of franking credits

It is the Board’s intention, subject to market conditions and the availability of distributable profits, to continue to pay a high level of

fully franked dividends.

Financial Record


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One Year Performance Chart - value rebased to 100 at 30 June 2010.

Three Year Performance Chart - value rebased to 100 at 30 June 2008.

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Fianancial Record - continued

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Three Year Share Price (Discount) / Premium to the NTA.

Fianancial Record - continued

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Chairman’s Statement

Dear Shareholder

These are the first full year results to reflect the adoption of Standard AASB9 and as such

the “profit” figure shown in the accounts only reflects the actual dividends received from

the portfolio of investments and interest received less the expenses incurred in managing

Aberdeen Leaders.

Gains on investments sold during the period are no longer reflected through the profit and

loss ccount and instead are reflected in the new reserve account, shown in the balance

sheet, as realised gains reserve. From now on, therefore, the actual “profit” figure shown in

the accounts is likely to remain relatively constant and at a reduced level than has been

shown in the past. As a result, profit after tax for the current year of $1.956 million is well

down on last year

For the second year running the Australian share market delivered a positive return, with the S&P/ASX200 Accumulation Index

returning 11.73 per cent. Like last year, this year’s returns were characterised by two distinct halves; the first six months showed

positive returns of 12.77 per cent, while the second saw the index decline by 0.86 per cent. The second half of the year was negatively

affected by the Queensland and Victorian floods and the devastating earthquake at sea off Japan and the knock-on effects of the

tsunami on coastal regions and the Japanese nuclear industry.

During the financial year, the Reserve Bank of Australia (RBA) lifted interest rates only once, early in the year, from 4.5% to the current

level of 4.75%. Since then the RBA has kept a watchful eye on the inflation rate but has kept rates on hold. It is widely felt that

Australia is now a two-speed economy, with the resource sector continuing to benefit from strong prices and demand from China

and elsewhere in Asia, while domestic industries suffer from a lack of consumer confidence. The Australian dollar has continued to

remain strong against most major currencies and this too is having an effect on those companies with significant overseas earnings.

Furthermore, Australians have significantly reduced their capacity to spend, with the savings rate of individuals rising above 10%, the

highest level in a number of years.

This time last year there was considerable uncertainty regarding the proposed Mineral Resource Rent Tax, which has yet to be enacted

by the current Government. More recently a new proposed tax on carbon emissions has been tabled which is likely to have profound

effects on both individuals and businesses. The reality of minority Government, and the effect of this on new policy development,

continues to play out.

While the Australian share market produced a positive return, our Company’s returns were also positive, with gross assets up 9.46 per

cent*. As at 30 June 2011, the NTA per share stood at $1.24, 1 cent weaker than the same time last year ($1.25). Net of deferred tax

on unrealised gains, the NTA stood at $1.22 per share. The share price closed at $1.19, representing a return of 1.02%*.

* after adding back dividends paid during the year.

As at 30 June 2011 the share price stood at a small discount to both pre and post-tax NTA. Even after accounting for this year’s final

dividend, the Company added slightly to its balance of retained earnings going forward.


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Final Dividend

A final dividend of 3.75 cents per share was paid on 29 July 2011 resulting in an aggregate dividend of 9.5 cents per share for the year

(fully franked), maintaining the same dividend as last year.

Based on the dividends paid over the previous 12 months this equates to a yield of 7.98 per cent (11.4 per cent gross of franking

credits) on the closing share price at 30 June 2011. The Board will continue to review the level of future dividends payable in the light

of market conditions and the level of dividends received from the investment portfolio.

Dividend Reinvestment Plan

I would like to remind investors of the Company’s Dividend Reinvestment Plan (DRP) which allows eligible shareholders to have their

dividends automatically reinvested in the Company. If you would like to participate in the DRP, or would like more information, please

phone 1300 737 760 and we will mail you a DRP booklet containing the relevant information.

Outlook

Events overseas, both in Europe and the United States, are dominating the press in Australia and impacting investor sentiment and

confidence. I believe some of these issues will need to be resolved before our share market becomes more stable. The market is not

expensive by historical standards but currently Australians are saving rather than investing and overseas investors are being deterred

from investing significantly by the record levels of the Australian dollar. We continue to monitor good quality companies for reasonable

buying opportunities.

Brian Sherman AM

Chairman August 2011

Chairman’s Statement - continued


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Manager’s Review

The Australian share market recorded another year of positive growth, with the benchmark (S&P/ASX200 Accumulation Index)

delivering a return of 11.73% for the 12 months to 30 June 2011. This follows last year’s positive return of 13.15%. The Aberdeen

Leaders portfolio also returned a positive result for 2011 of 9.46% (before deduction of fees) and 8.47% (after deduction of fees).

While these returns were below the benchmark return, the portfolio continued to outperform its benchmark over three and five years.

There were very few changes to stocks within the portfolio during this year, with most of our activity dominated by top-slicing on

price strength and adding to holdings on price weakness. We added two new stocks to the portfolio; we initiated a holding in Newcrest

Mining, the largest gold producing company in Australia, and AMP, after agreeing to accept the partial share and cash offer from AMP

for our shares in AXA Asia Pacific. Additionally our exposure to Westfield Group was affected by the splitting of the Group’s overseas

property holdings (which retain the name of Westfield Group) and its Australian and New Zealand assets, known as Westfield Retail

Trust – both of which we now own.

Over the course of the year, we also disposed of three stocks. In addition to AXA (discussed above), we sold our holding in Sonic

Healthcare on concerns of alterations to Government funding of the pathology sector. We disposed of our small holding in Billabong

as we were uncomfortable with its apparent move towards a more retail model and ownership of more stores at a time when spending

was under pressure, especially in the United States.

The table below identifies the five stocks which contributed to and those that detracted from relative performance over the twelve

months to 30 June 2011:

Top 5 Contributors Relative weight 12 Months Top 5 Detractors Relative weight 12 Months

Stock (%) Contribution (%) Stock (%) Contribution (%)

SP Ausnet 2.66 0.50 Leighton 2.34 -0.98

Rio Tinto 3.06 0.48 Computershare 2.60 -0.62

Telstra -3.28 0.48 QBE 5.97 -0.55

Incitec Pivot -1.32 0.41 Iluka Resources -0.64 -0.49

Ramsay Health Care 1.35 0.36 Singtel 3.56 -0.42

* Relative weights are at 30 June only and may differ during the period

The utility group SP Ausnet contributed most to performance, closely followed by Rio Tinto, which was also one of the most significant

contributors in 2010. Our lack of exposure to Telstra continued to have a positive impact on the portfolio’s relative performance.

Leighton and Computershare detracted from performance as both were impacted by profit warnings in the second half of the financial

year. QBE again detracted this year but we continue to believe it is one of the best managed insurers in the world and is currently

suffering from its exposure to US dollar earnings and low interest rates there and in Europe.

The best performing sectors over the financial year were Materials and Utilities. The worst performing sectors were Information

Technology and Consumer Discretionary, with the latter affected by the downturn in consumer spending.

In last year’s Manager’s Review we highlighted that consensus forecasts for FY11 were probably slightly optimistic. This has proved to

be the case, as forecasts for most sectors have been continuously revised downwards over the last 12 months, with the exception of

resource related companies. The forthcoming reporting season will probably produce some cautious outlook statements from some

companies, especially those with a high degree of overseas earnings, which are likely to be impacted from the strong Australian dollar,

or those exposed to Australian consumers, who are currently electing to save rather than spend. Aberdeen Leaders’ portfolio remains

relatively defensively positioned and invested in good quality companies that continue to generate profits and cash flows.

Aberdeen Asset Management Limited August 2011


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The full portfolio of the Company at market value at 30 June 2011 is shown below:

Sector Company Quantity Market value $ %

Finance Ex Property Trusts ANZ Banking Group 295,480 6,497,605 6.25

Australian Stock Exchange 105,260 3,165,168 3.04

AMP LTD 407,620 1,989,186 1.91

Commonwealth Bank 139,985 7,307,217 7.02

QBE Insurance Group 475,740 8,173,213 7.86

Westpac Banking Corp 220,645 4,898,319 4.71

32,030,708 30.79

Property Trusts Westfield Retail Trust 501,857 1,355,014 1.30

Westfield Group 405,900 3,506,976 3.37

4,861,990 4.67

Consumer Discretionary David Jones Limited 753,555 3,044,362 2.93

Tattersall's Limited 1,325,140 3,167,085 3.04

6,211,447 5.97

Consumer Staples Goodman Fielder Limited 1,400,000 1,470,000 1.41

Metcash Trading Limited 552,300 2,286,522 2.20

Woolworths Limited 284,170 7,880,034 7.58

11,636,556 11.19

Health Care Ramsay Health Care 91,760 1,651,680 1.59

1,651,680 1.59

Energy Woodside Petroleum 74,630 3,059,830 2.94

3,059,830 2.94

Materials BHP Billiton Limited 268,900 11,767,064 11.31

Incitec Pivot Limited 521,420 2,002,253 1.92

Newcrest Mining Limited 56,360 2,123,645 2.04

Orica Limited 106,245 2,791,056 2.68

Rio Tinto 81,700 6,760,675 6.50

25,444,693 24.45

Info Tech Computershare 358,730 3,174,761 3.05

3,174,761 3.05

Industrials Leighton Holdings 135,417 2,816,674 2.71

2,816,674 2.71

Telecommunications Singapore Telecommunications Limited 1,624,680 3,866,738 3.72

3,866,738 3.72

Utilities AGL Energy Limited 353,250 5,122,125 4.92

SP Ausnet 3,141,075 2,952,611 2.84

8,074,736 7.76

Equity Total 102,829,812 98.83

Net Liquidity including dtl 1,192,303 1.17

Total Assets excluding Debt 104,022,115 100.00

Loan Facility (30,000,000) -28.84

Total Equity 74,022,115 71.16


Investment Portfolio and Sector Analysis F

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Philosophy and Style

The Manager believes markets are not always efficient and superior investment returns are therefore attainable by identifying

good companies cheaply, defined in terms of fundamentals that in our opinion drive share prices over the long term. We undertake

substantial due diligence before initiating any investment including company visits in order to assure ourselves of the quality of the

prospective investment. We are then careful not to pay too high a price when making the investment. Subsequent to that investment

we then keep in close touch with the company, meeting management at least twice a year. Given our long-term fundamental

investment philosophy, one would not expect much change in the companies in which we invest. We do, however, take opportunities

offered to us by what we see as anomalous price movements within stock markets to either top up on price weekness or top slice on

share price strength positions, which typically account for the bulk of the activity within the portfolio during the year under review.

Asset Allocation and Stock Selection

At the year end, Robert Penaloza headed up the eight strong Sydney equity team. Our portfolio managers act as generalists, cross

covering the investment universe. Stock selection decisions are team based. Hugh Young, the Group’s Singapore based regional

managing director and Group head of equities oversees the operation.

Risk Controls

We seek to minimise risk by our in depth research. We do not view divergence from a benchmark as risk – we view investment in

poorly run expensive companies that we do not understand as risk. In fact where risk parameters are expressed in benchmark relative

terms, asset – including sector – allocation constitutes a significant constraint on stock selection. Hence diversification provides our

main control.

Aberdeen’s performance and risk unit independently monitors portfolio positions, and reports monthly. As well as attributing

performance it also produces statistical analysis, which is used by the Manager primarily to check the portfolio is behaving as expected,

and not as a predictive tool.

The Investment Team

Robert Penaloza - Director and Head of Equities

Robert Penaloza is Head of Australian Equities. Robert joined Aberdeen in 1997 as an assistant investment manager

on the Asia ex-Japan equity desk in Singapore where he gained the company’s distinctive ‘bottom-up’ investment

style and regional portfolio management experience. Robert was also CEO and head of investments for Aberdeen

Thailand where he established the company’s successful investment management business. Robert graduated

with a BA in Business Management (banking and finance) from the Charles Darwin University, Australia and has

successfully completed the General Management Program from Harvard Business School. Robert is a graduate

member of the Australian Institute of Company Directors (GAICD) and a Fellow of the Thai Institute of Company

Directors.

Mark Daniels - Investment Director

Mark Daniels is an Investment Director within the Australian equities team. Mark has spent over 25 years with

Aberdeen, much of that as a UK equity manager, in particular of closed ended funds. Since moving to Sydney in

2005, Mark has helped embed the Group’s highly regarded, bottom-up investment process. Previously, Mark worked

for Cork Gully where he was a supervisor responsible for receiverships and liquidations. Prior to that, Mark worked as

an articled clerk at Coopers & Lybrand. Mark graduated with a BA in Economics from University College, Cardiff in

the UK.


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The Investment Team - continued

Andrew Preston - Senior Investment Manager

Andrew Preston is a senior investment manager in the Australian equities team. Andrew joined Aberdeen via the

acquisition of Glasgow-based Murray Johnstone in 2000. Andrew joined Murray Johnstone in 1985 from the

Australian Department of Foreign Affairs. Andrew has managed equity portfolios in the UK, US and Japanese

markets, and global portfolios for UK and North American clients. Andrew has specialised in socially responsible

investments since 1992. Andrew graduated with a BA in Economics and Oriental Studies, including Chinese and

Japanese languages from the University of Melbourne.

Michelle Lopez - Investment Manager

Michelle Lopez is an investment manager on the Australian equities desk. Michelle joined Aberdeen in 2004 upon

graduation. Previously, Michelle worked for KPMG – Corporate Finance as an intern. Prior to that, Michelle worked

for Watson Wyatt as a quant analyst. Michelle graduated with a BA in Applied Finance and Commerce (Marketing)

from Macquarie University, Sydney. Michelle is a CFA Charterholder*.

Natalie Tam - Investment Manager

Natalie is a investment manager on the Australian equity desk. Natalie joined Aberdeen in 2005 from Deutsche

Bank, where she worked as an equity research analyst. She was earlier an intern at Coca Cola Amatil (business

development), Rothschild (corporate finance) and Promina Group (management accounting). Natalie graduated

with a Bachelor of Commerce from the University of New South Wales where she was awarded a UNSW co-op

program scholarship in accounting & finance. She is a CFA charterholder*.

Camille Simeon - Investment Analyst

Camille Simeon is an investment analyst on the Australian equity desk. Camille joined Aberdeen in April 2008.

Previously, Camille worked at Citi Australia, where she was a vice president, Institutional Equity Research Sales.

Camille, has also worked at Foster Stockbroking, BNP Paribas and Burdett Buckeridge Young. Camille graduated with

Bachelor of Business, University of Technology, Sydney and Post Graduate Diploma in Applied Financial Analysis at

the Securities Institute of Australia. Camille has passed Level 1 of the CFA program.

Andrew San - Investment Analyst

Andrew San is an investment analyst in the Australian Equities Team. Andrew joined Aberdeen in January 2009.

Andrew graduated with a Bachelor of Commerce (Hons) in Accounting, Actuarial Studies and Finance from The

University of New South Wales.

Chhai Ung - Investment Analyst

Chhai Ung is an investment analyst on the Australian equities desk. Chhai joined Aberdeen in 2010 from Morgan

Stanley, where he worked as an equity research analyst. He was earlier an intern at ANZ Bank’s markets group and

an academic’s research assistant at the University of Sydney. Chhai graduated from the University of Sydney with a

Bachelor of Commerce (Hons)/Bachelor of Laws (Hons).

*CFA® and Chartered Financial Analyst® are trademarks owned by CFA Institute.


The Investment Process and Team - continued F

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Aberdeen Leaders Limited

Corporate Governance Statement

Directors’ Report and Financial Statements for the Year ended 30 June 2011

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The Company’s Corporate Governance Statement is consistent in all material aspects with the Australian Securities Exchange Corporate

Governance Council’s “Corporate Governance Principles and Recommendations” (as revised), save for those matters expressly discussed

below.

Set out below are the key features of the Company’s current corporate governance policies and practices. The Board and the Company

Secretary keep these under review to ensure that the Board operates effectively and in the best interests of shareholders.

The Board of Aberdeen Leaders Limited (“ALR” or the “Company”) operates in accordance with its Charter. In carrying out its

responsibilities, the Board will at all times recognise its overriding responsibility to act honestly, fairly, diligently and in accordance

with the duties and obligations imposed upon it by the Company’s constitution and the law. The investment of the Company’s funds is

carried out by Aberdeen Asset Management Limited (“Aberdeen”) under the terms of an Investment Management Agreement (“IMA”)

which is reviewed on an annual basis. ALR utilises the resources of Aberdeen under the IMA and therefore has no employees.

The Board has specific responsibility to:

• oversee and monitor the performance of Aberdeen’s compliance with the IMA and to ensure that Aberdeen is monitoring the

performance of other external service providers;

• oversee and monitor the internal controls and legal compliance of ALR;

• monitor financial performance including approval of statutory financial reports and liaison with the auditors;

• set the ethical tone and standards of ALR;

• identify, control and monitor the significant risks faced by ALR; and

• oversee communications and reporting to shareholders

Composition of the Board

The Board currently has four (4) members. Under the Company’s constitution, the number of Directors shall be not less than 3 and no

more than 11.

The Board has been structured to ensure that it has the necessary skills and expertise for a company such as ALR and can effectively

represent stakeholder interests.

The Chairman, Mr Brian Sherman, is responsible for leading the Board, ensuring that the Board’s activities are efficiently organised and

conducted. Mr Sherman does have a substantial shareholding and is not considered by the Board to be “independent” having regard

to the definition of independence set out below based on that recommended by the ASX Corporate Governance Council. However,

while not independent, his interest in seeing the Company prosper is undeniably aligned with all shareholders. Mr Sherman does not

participate in the day-to day management of the portfolio and is not involved in related party transactions.

The Director representing Aberdeen, Mr Mark Daniels, is considered to be in a position equivalent to that of an executive director since

ALR is an investment company which has outsourced its investment management function. The Executive Director is responsible for

ensuring that Aberdeen provides a level of service consistent with the IMA. When the Board reviews the appointment of Aberdeen

under the IMA, no Aberdeen representatives are present.

The other two Directors, Mr Neville Miles and Mr David Elsum, are considered by the Board to be independent.

Biographical information in respect of each Director is set out on page 3.

The Board as presently constituted does not have a majority of independent non-executive directors. Importantly, however, the roles of

Chairman and Executive Director are undertaken by separate persons and there is a majority of non-executive directors.

Corporate Governance Statement


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Director Independence

A Director is only to be regarded as independent if:

• the Director is a non-executive Director; is not a substantial (5% or more) shareholder of ALR; an officer of, or otherwise associated

directly with, a substantial shareholder of ALR;

• within the last three years the Director has not been employed in an executive capacity by ALR or an employee materially

associated with a service provider;

• within the last three years the Director has not been a principal of a material professional adviser or material consultant to ALR;

• the Director is not a material supplier or customer of ALR, or an officer of or otherwise associated directly or indirectly with a

material supplier or customer;

• the Director has no material contractual relationship with ALR other than as a director of ALR.

Material in respect of independence above is to be judged by the Board on both a quantitative and qualitative basis. An amount of

over 5% of ALR’s total shareholders’ equity is considered material for these purposes. The Board regularly assesses the independence

of directors. In addition, a transaction of any amount or relationship is deemed material if knowledge of it impacts the shareholders’

understanding of Director’s performance.

All Directors are to disclose to the Company, as soon as it is to hand, any information that may affect their independence.

Nomination of Directors

The Chairman is responsible for reviewing the membership of the Board, the nomination of Directors to the Board and the re-election

of Directors to the Board. Any review / recommendation is considered by the full Board. Appropriate expertise and experience are

essential attributes for any nominee.

Having regard to ALR’s size and Board responsibilities, a formal nominations committee is not considered necessary.

Term of Office

Each year one-third of all executive and non-executive Directors (rounded down and based on who has been longest in office) are

required to retire by rotation and may offer themselves for re-election by members at the Annual General Meeting. As further required

by the Constitution (and ASX Listing Rules), each director is required to stand for re-election every 3 years.

Any Director appointed during the year is required to stand for re-election at the next Annual General Meeting of the Company.

Meetings

The Board will meet as and when necessary to efficiently discharge its duties. The Board has determined that given the current nature

of the business, quarterly Board meetings are appropriate, supplemented with monthly information updates. Additional meetings can

be called by any Director to deal with items of special business and the Board will pass resolutions in circulation as required.

The quorum necessary for Directors to conduct business is two Directors.

Remuneration

The Directors shall be paid out of the funds of the Company by way of remuneration for their services such sum as may from time

to time be determined by the Company in a general meeting and allocated between Directors as the Board deems appropriate. No

employees of Aberdeen or the Director representing Aberdeen receive any remuneration from the Company. Remuneration is currently

paid only to the non-executive Directors in the form of fees and superannuation.


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No Director receives equity remuneration from the Company. Information concerning the remuneration for each Director is set out on

page 25.

Having regard to ALR’s size and board responsibilities in respect of remuneration, a formal remuneration committee is not considered

necessary. As required under Section 300A (1) of the Corporations Act however, a Remuneration Report is contained within the

Directors’ Report and the adoption of the Remuneration Report is proposed by means of an advisory only, non-binding vote at the

Annual General Meeting.

Independent Professional Advice

All Directors are entitled to seek independent professional advice at the expense of ALR. Prior to seeking such professional advice, the

relevant matter of concern to the Director should be raised for discussion with the full Board. If this is impractical, the matter(s) should

be raised with the Chairman.

The full resources of the legal, compliance, company secretarial, finance and operations departments of Aberdeen are available at all

times to the Directors of ALR to assist them in resolving any query or concern they may have. If, after such discussions, the relevant

Director’s query or concern is not satisfied, independent professional advice may be sought at the Company’s expense.

Board Committees

The Board may establish committees to assist it in carrying out its responsibilities, consisting of such members as it thinks fit. The

Board shall adopt charters setting out matters relevant to the composition, responsibilities and administration of such committees,

and other matters the Board may consider appropriate.

An Audit Committee has been established since 1990 and a Risk and Compliance Committee was established in 2004 in the lead up to

the Company’s application for its Australian Financial Services Licence.

Audit Committee

The Audit Committee is comprised of the two independent non-executive Directors (Messrs Miles and Elsum) and the Executive

Director (Mr Daniels) and is chaired by Mr Neville Miles. While ALR is not a company that is required to comply with the audit

committee composition requirements set out in the ASX Corporate Governance Council’s Recommendations, the Committee actively

manages any potential conflicts that might arise as a result of the presence of the Executive Director. Relevant measures include

the provisions relating to material personal interest under the law. However, it is considered that the Company and its shareholders

benefit from the knowledge and skills that the Executive Director brings to the Committee.

A Charter setting out matters relevant to the composition, responsibilities, and administration of the Audit Committee has been

adopted. It provides that the Audit Committee has the following duties and responsibilities:

• the nomination, appointment, rotation and remuneration of external auditors. This includes ensuring the adequacy of existing

external audit arrangements, with particular emphasis on the independence, scope and quality of the audit. To ensure that the

external auditor has full access to information and that no unacceptable management or other restrictions are placed on them. To

action and respond to any “management letters” sent by the external auditor to the Company;

• to review the draft half-yearly and year end financial statement with both representatives of Aberdeen and the external auditor

prior to recommending their adoption and lodgement by the Board. This will include the review of any statement from the Executive

Director representing Aberdeen to the Board on whether the Company’s financial reports present a true and fair view in accordance

with relevant accounting standards;

Corporate Governance Statement - continued


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• responsibility for all areas of significant financial risk and the arrangements in place to contain those risks to acceptable levels. This

includes responsibility for the effectiveness of management information and other systems of internal controls relating to financial

arrangements and monitoring the adequacy of management information, internal financial control systems, asset valuations and

expenditure controls; and

• to review any reports relating to questionable accounting or auditing matters and to ensure that any query from shareholders

relating to such matters are dealt with expeditiously.

Risk and Compliance Committee:

The Risk and Compliance Committee, comprised of two independent non-executive Directors (Messrs Miles and Elsum), is chaired by

Mr Neville Miles. The Committee receives regular reports on compliance by the Company and the risks faced by ALR and whether those

risks are being managed effectively.

A Charter setting out matters relevant to the composition, responsibilities, and administration of the Risk and Compliance Committee

has been adopted. It provides that the Committee has the following duties and responsibilities:

• to review the risk management statement formally on a yearly basis and also to review all risk issues on a quarterly basis. Risks

include market risk, credit risk, interest rate risk and liquidity risk. This includes, where the facts warrant, to bring the matter to the

attention of the Board and to recommend the implementation of additional controls;

• as a key body of the Company’s compliance framework, the Committee is responsible for maintaining the compliance programme.

This encompasses responsibility to:

• monitor compliance with the Company’s AFSL conditions;

• Corporations Act; and

• various company procedures;

• responsibility for monitoring the performance of external services providers e.g. Custodian, Administrator and Registrar. As well as

to ensure that Aberdeen, the investment manager continues to maintain an adequate system for detecting, resolving and reporting

breaches; and

• to review compliance with the terms of any banking covenants in relation to any facility the Company may have negotiated and

drawn down from time to time.

Internal Controls

The Board is ultimately responsible for the Company’s system of internal control and for reviewing its effectiveness. The Board confirms

that there is an ongoing process of identifying, evaluating and managing the significant risks faced by the Company.

The key components designed to provide effective internal control are outlined below:

• the Risk and Compliance Committee meets on a quarterly basis since it was constituted to review the internal controls;

• the Risk and Compliance Committee has a documented compliance programme;

• risks and internal controls and the risk management framework have been documented in the Risk Management Statement;

• the Audit Committee has responsibility for all areas of significant financial risk and arrangements are in place to contain those risks

to an acceptable level;

• written agreements are in place which specifically define the roles and responsibilities of Aberdeen and other third party service

providers;

• Aberdeen has clearly defined investment criteria and specified levels of authority. Reports on these matters, including performance

statistics and investment valuations are submitted regularly to the Board; and

• as a matter of course Aberdeen’s compliance department regularly reviews the investment manager’s operations. Aberdeen holds

an Australian Financial Services Licence (No. 240263) and is also licensed as an investment adviser by the Securities and Exchange

Commission of the United States under the United States Investment Advisors Act of 1940.



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Representation on Accounts

Under the Company’s corporate governance practices, the Executive Director (being the person equivalent to a CEO and CFO) shall

provide to the Board with the half-yearly and yearly accounts with the following representations:

• the Company’s financial reports present a true and fair view in accordance with the relevant accounting standards;

• the Company’s financial reports are based on a sound system of risk management and internal control consistent with the policies

adopted by the Board; and

• the Company’s risk management and internal compliance and control system is operating efficiently and effectively in all material

respects.

This procedure was first adopted for the 30 June 2004 accounts.

Performance Evaluation of the Board, its Committees and Individual Directors

The Board of Directors Charter provides that the Chairman shall undertake an annual review of the Board and consider the appropriate

mix of skills required to ensure its continuing effectiveness. The review shall be conducted in such manner as the Chairman deems fit.

In turn, the Board shall undertake an annual review of the performance of the Chairman to ensure that the Board’s activities continue

to be efficiently organised and conducted.

Review of IMA

The Board reviews the performance of Aberdeen on an annual basis. This review shall be conducted in such manner as the Board deems

fit but includes a review of the following:

• appointment, duties and fees charged;

• performance/returns of the portfolio;

• administration duties;

• management fee comparison; and

• risk controls.

The Board considers these matters in the absence of the Executive Director and any other Aberdeen staff.

Diversity

Given the current nature of the business and the fact that it does not have any employees, ALR does not believe it is appropriate to

have in place a formal diversity policy.

Continuous Disclosure and Shareholder Communication

ALR is committed to:

• the promotion of investor confidence by ensuring that trading in its securities takes place in an efficient, competitive and informed

market;

• encouraging shareholder participation at the annual general meeting in person or by proxy;

• complying with its disclosure obligations under the ASX Listing Rules and the Corporations Act 2001; and

• ensuring that ALR stakeholders have the opportunity to access externally available information issued by ALR.

The Company Secretary is primarily responsible for coordinating the disclosure of information to shareholders and regulators under the

direction of the Board.



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Shareholders, prospective shareholders, stakeholders and other interested parties can access detailed and up to date information

on the Company via the Aberdeen web site www.aberdeenasset.com.au by following the links to “Aberdeen Leaders Limited” or by

accessing the Company’s ASX announcements platform available at www.asx.com.au.

The Aberdeen website includes access to the Company’s:

• Board of Directors Charter

• Director’s Code of Conduct

• Continuous Disclosure Policy

• Communications Plan

• Audit Committee Charter

• Risk and Compliance Committee Charter

Dealings by Directors in Company Securities

Directors must not trade in the shares of the Company during periods when they are in possession of information that is price sensitive

and would have a material impact on a decision to buy or sell shares in ALR. Under its Communications Policy, the Company publishes

its weekly net asset value and portfolio composition to the ASX. In the ordinary course of business therefore, Directors will be free

to trade in the Company’s shares unless there is material price sensitive information in the possession of the Directors that has not

been disclosed in accordance with the permitted exceptions to the continuous disclosure rule and would have a material effect on the

portfolio or net asset value of ALR. Further to the above, in accordance with ASX Listing Rule 12.9 ALR is required to have a trading

policy in place with the content of the policy prescribed by ASX Listing rule 12.12. This trading policy is in relation to dealings in the

securities of ALR by its Directors and Company Secretary. This trading policy sits alongside obligations under the Corporations Act

2001 and the ASX Listing Rules. The trading policy of ALR imposes “closed periods”. These closed periods are times when Directors

and the Company Secretary of ALR may not trade in securities of ALR or derivative products created over ALR securities subject to

certain exclusions and exceptional circumstances. The closed periods for ALR are from the close of business on the last business day

of the half and full financial year of ALR up till and including the day the half and full year financial results are released to the market.

The Directors and Company Secretary may trade in securities of ALR on the first business day after the day the financial results are

released. ALR may impose further closed periods associated with inside information.

The operation of any share buy back by the Company is as directed by the Board in accordance with the Corporations Act 2001 and

the Listing Rules. The operation of the buy back, including the daily purchases, are continuously announced to the ASX. As noted

above, the Company also publishes its weekly net asset value (in the usual course) and provided that there is no material price

sensitive information that is not generally available, Directors can accept a buy-back offer for their shares.

Codes of Conduct

In addition to a policy on share trading, the Director’s Code of Conduct, together with the Company’s other corporate governance

policies, is designed to ensure that the Directors and the Company act ethically and responsibly, bearing in mind the Directors’ duties

under the Corporations Act and the interest of the Company’s shareholders and stakeholders.



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The Directors of Aberdeen Leaders Limited (the “Company”) submit their report for the year ended 30 June 2011.

Directors

Brian Michael Sherman, AM, B Comm, CTA, SIA (Aff) Chairman

Neville John Miles, B Comm (Hons), CA

David Lindsay Elsum, AM, BEE (Hons), B Comm, MSc, FCPA

Augustine Mark Daniels, BSc Econ

Company Secretary

Gil Orski, BCom, LLB

Further details regarding Director and Company Secretary qualifications and experience are set out on page 3 of the annual report.

None of the Directors or the Company Secretary was a partner in an audit firm, or a director of an audit company, that is an auditor of

the Company.

Meetings of Directors

The number of meetings of the Company’s Directors held during the year ended 30 June 2011 and the number of meetings attended

by each Director was:

Full Meetings of Directors Meetings of Audit Committee Meetings of Risk and ComplianceCommittee

Attended Eligible to Attend Attended Eligible to Attend Attended Eligible to Attend

BM Sherman 4 4 - - - -

DL Elsum (1) 4 4 2 2 4 4

NJ Miles (2) 4 4 2 2 4 4

AM Daniels 4 4 2 2 - -

(1) Member of the Audit Committee and the Risk and Compliance Committee.(2) Chairman of the Risk and Compliance Committee and the Audit Committee.

The Directors were in office from the beginning of the financial year until the date of this report.

Interests in Shares of Aberdeen Leaders Limited

As at the date of this report, the relevant interests of the Directors in the shares of the Company and related bodies corporate were:

Relevant Interests

Ordinary Shares

BM Sherman Held by entities controlled by BM Sherman 12,316,623

NJ Miles Held by entities controlled by NJ Miles 95,892

DL Elsum Held by entities controlled by DL Elsum 309,397

Held directly by DL Elsum 65,156

AM Daniels -

Other Directorships

Pursuant to section 300(11)(e) of the Corporations Act, there were no other directorships held by the Directors in Australian listed

companies at any time in the 3 years immediately before the end of this financial year.


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Review of the Year’s Operations

The Company continued to invest in those stocks comprising the S&P / ASX 200 Index.

As at 30 June 2011, the Net Tangible Asset (NTA) value of the Company was $74.022 million, or $1.22 per share after providing for tax

on unrealised gains. The Company is a long term investor and does not intend on disposing of its total portfolio. Before provision for

tax the NTA was $1.24 per share.

Net Assets at fair value before loan facility $104,022,000

Less: Loan Facility $30,000,000

$74,022,000

NTA per Ordinary Share (after provision for tax on unrealised gains) $1.22

NTA per Ordinary Share (before provision for tax on unrealised gains) $1.24

The fair value of financial assets traded in an active market is based on their quoted market price at the balance date without any

deduction for estimated future selling costs. Financial assets are priced at current bid prices. For the purposes of NTA per Ordinary

Share figures, estimated future selling costs are deducted.

For the year ended 30 June 2011 the Company paid and provided for total dividends of 9.5 cents per share fully franked, consisting

of one quarterly dividend of 1.75 cents per share, two quarterly dividends of 2 cents per share and a final dividend of 3.75 cents per

share.

Significant Changes in the State of Affairs

There were no significant changes in the state of affairs of the Company over the course of the year.

Significant Events After Balance Date

No matters or circumstances have arisen since the end of the financial year which have significantly affected or may significantly

affect the operations of the Company, the results of those operations, or the state of affairs of the Company in subsequent financial

years.

Business Strategies and Prospects for Future Financial Years

The Company will continue to invest in stocks in the S&P / ASX 200 Index which meet the quality and price criteria as determined by

our investment manager, Aberdeen Asset Management Limited (“Aberdeen”).

It is also the Company’s present intention to continue as a geared structure and maintain its $30 million cash advance facility subject

to satisfactory terms at renewal, drawn to $30 million at balance date. We are committed to providing a meaningful dividend yield to

shareholders consistent with our objective of delivering regular income and long term capital growth, subject to market conditions and

the availability of distributable profits.

In addition, the Company will continue to monitor the performance of the investment manager, Aberdeen, under the investment

management agreement. The investment management fee is 0.90 per cent per annum which was effective from 1 April 2004 plus an

administration fee of 0.15 per cent per annum. The Manager is also entitled (where applicable) to an annual performance fee of 20 per

cent of:


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a) where the level of the S&P/ASX 200 Accumulation Index has increased over the period, the amount by which the value of the

investments, less the investment management fee and the administration fee (in total 1.05%), exceeds that increase; or

b) where the level of the S&P/ASX 200 Accumulation Index has decreased over the period, the amount of the increase in the value

of the investments less the investment management fee and the administration fee.

No performance fee will be payable in the period where the value of investments has decreased.

Remuneration Report

Introduction

The Directors have pleasure in presenting the Remuneration report to shareholders. The report is a requirement under section 300A(1)

of the Corporations Act and covers the following information:

(1) the Board’s policy for determining the nature and amount of remuneration of Directors, executives and secretaries of the

Company;

(2) a discussion of the relationship between such policy and the Company’s performance; and

(3) the details of the remuneration of the Directors and Company executives (if any).

(1) Remunerationpolicy

Given the size of the Company, the Directors considered that a formal remuneration committee is not required.

(i) Setting of aggregate remuneration

Pursuant to the Constitution, the Directors’ aggregate remuneration is determined by the Company in its annual general

meeting. The aggregate remuneration level proposed for approval at the Company’s annual general meeting is determined

by the Directors, having taken into account what would be appropriate and in line with the external market, given the size of

the Company in comparison with other companies in the same industry.

The Company’s first general meeting in 1988 set the Directors’ remuneration in the aggregate of $100,000 per annum

and that sum remained unchanged until 2004. At the 2003/2004 annual general meeting, the Company’s shareholders

approved to increase the Directors’ aggregate remuneration from $100,000 to $150,000 and at the 2008/2009 annual

general meeting this was further increased to $250,000, taking into account the burgeoning regulatory and compliance

environment the Company operates under and to ensure that the remuneration is commensurate with levels for other listed

investment companies. The headroom will also be necessary should the Company wish to increase the number of directors

in the future although there is no present intention to do so. The $250,000 maximum aggregate amount remains unchanged

to date.

(ii) Division of aggregate remuneration

The aggregate remuneration is divided between the Directors as they may determine, taking into account the concentration

of responsibility of each Director.

The Directors have determined that no remuneration is to be paid to any Director, secretary or officer who represents the

Company’s investment manager, Aberdeen. As such, Mr Daniels and Mr Orski during their tenure, do not receive remuneration

for their services to the Company.

The Directors have also determined that the Board’s present intention is not to have an element of an individual Director’s

remuneration consist of the issue of securities in the Company.

Directors’ Report - continued


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(2) RelationshipbetweensuchpolicyandtheCompany’sperformance

The remuneration policy has been specifically designed to ensure that the Company’s shareholders can determine whether

the aggregate remuneration of Directors should or should not be increased. As such, the Directors’ aggregate and individual

remuneration levels are not directly dependent upon the Company’s performance or a performance condition. However,

practically, whether shareholders vote for or against an increase in the aggregate remuneration will depend upon, amongst other

things, how the Company has performed over the number of years.

For the purposes of section 300A(1AB) of the Corporations Act, the Company’s share price on 1 July 2010 was $1.27 and on 30

June 2011 was $1.19 and for this financial year, the Company paid total dividends of 9.5cents.

For the purposes of sections 300A(1)(b), 300A(1AA) and (1AB) of the Corporations Act, the table and graph below provides a

comparison of the Directors aggregate remuneration and the Company’s profit after related income tax expense/benefit, dividend

payments and share price performance for the previous 5 financial years from 1 July 2006 to 30 June 2011.

Year ending 30 June 2007 30 June 2008 30 June 2009 30 June 2010 30 June 2011

Profit/(loss) $11,685,000 $12,337,000 ($12,315,000) $6,101,000 $1,959,000

Total dividends 9 cents 10 cents 9 cents 9.5 cents 9.5 cents

Aggregate paid remuneration $163,500 $163,500 $163,500 $163,500 $163,500

Closing share price $1.95 $1.67 $1.19 $1.27 $1.19

ALR share price from 1 July 2006 to 30 June 2011

$2.20

$2.00

$1.80

$1.60

$1.40

$1.20

$1.00

$0.80

Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11



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(3) Keymanagementpersonnel

a) Key management personnel compensation

Details of the nature and amount of each major element of the remuneration received and receivable by persons who were

key management personnel of the Company are set out below:

Short-term

Employee benefit

Post-Employment

benefit

2011 Cash Salary & Fees

$’000

Superannuation

$’000

Total

$’000

Brian Michael Sherman 70,000 6,300 76,300

Neville John Miles 40,000 3,600 43,600

David Lindsay Elsum 40,000 3,600 43,600

Augustine Mark Daniels - - -

150,000 13,500 163,500

Short-term

Employee benefit

Post-Employment

benefit

2010 Cash Salary & Fees

$’000

Superannuation

$’000

Total

$’000

Brian Michael Sherman 70,000 6,300 76,300

Neville John Miles 40,000 3,600 43,600

David Lindsay Elsum 40,000 3,600 43,600

Augustine Mark Daniels - - -

150,000 13,500 163,500

There are no other Directors who receive remuneration from the Company.

b) Other key management personnel

There were no other persons with responsibility for planning, directing and controlling the activities of the Company directly

or indirectly during the financial year.

There were no other transactions with key management personnel.

Principal Activities

The principal activity of the Company during the year was the investment in securities which comprise, or are expected to enter, the

S&P/ ASX 200 Index.



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Results and Dividends

2011 2010

$’000 $’000

Profit before income tax expense 1,380 7,264

Income tax (expense)/benefit 579 ( 1,163)

Profit for the year 1,959 6,101

Profit attributable to members of the Company 2,265 6,101

Dividends Provided

Dividend provided on Ordinary Shares for the end of year 2,255 2,255

Dividends paid during the year

Dividend paid on Ordinary Shares in respect of the quarters ended:

30 October 1,058 1,032

31 January 1,208 1,179

31 May 1,208 1,201

Total Dividends 3,474 3,412

Total Dividends Paid or Payable 5,739 5,667

Insurance Premiums

During the financial year or since the end of the financial year the Company has in place insurance policies for the following persons

who are or have been officers of the Company:

NJ Miles, BM Sherman, DL Elsum, AM Daniels and G Orski and other officers of the Company.

In broad terms, the insurance indemnifies the above individuals against a liability as permitted by law for claims arising out of actions

taken in connection with the Company’s business.

In accordance with commercial practice, the insurance policy prohibits disclosure of the terms of the policy including the nature of the

liability insured and the amount of the premium.

Indemnifying Officer or Auditor

The Company has not, during the financial year or since the end of the financial year, in respect of any person who is or has been an

officer or auditor of the Company or a related body corporate indemnified or made any relevant agreement for indemnifying against a

liability incurred as such an officer or auditor.

Non-audit Services and Auditor Independence

Pursuant to section 300(11B) of the Corporations Act, the Company did not engage the auditor for any non-audit services provided for

during this financial year but for obtaining taxation and accounting advice from time to time.

For the purposes of section 300(11B) the Directors review the provision of non-audit services by the auditor in any year and satisfy

themselves that it is compatible with the general standard of independence for auditors imposed by the Corporations Act on the

basis set out in the Audit Committee report on page [TBA] . None of the non-audit services provided undermine the general principles

relating to auditor independence including the fact that there is no sharing of economic risk, no management or decision making

role by the auditor and they do not act as an advocate of the Company. It is the Directors’ view that the auditors impartiality and

objectivity have not been impacted by the provision of any non-audit services.



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Rounding

The amounts contained in this report and in the financial statements have been rounded to the nearest thousand dollars under the

option available to the Company under ASIC Class Order 98/0100. The company is an entity to which the Class Order applies.

Signed in accordance with a resolution of the Board of Directors.

Mark Daniels

Director dated this 15th day of August 2011 in Sydney



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Auditor’s Independence Declaration

The Board of DirectorsAberdeen Leaders LimitedLevel 6, 201 Kent StreetSYDNEY NSW 2000

15 August 2011

Dear Sirs

Aberdeen Leaders Limited

In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Aberdeen Leaders Limited.

As lead audit partner for the audit of the financial statements of Aberdeen Leaders Limited for the financial year ended 30 June 2011, I declare that to the best of my knowledge and belief, there have been no contraventions of:

(i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and (ii) any applicable code of professional conduct in relation to the audit.

Yours sincerely

DELOITTE TOUCHE TOHMATSU

Alfred NehamaPartner Chartered Accountants

Deloitte Touche TohmatsuA.B.N. 74 490 121 060

Grosvenor Place225 George StreetSydney NSW 2000PO Box N250 Grosvenor PlaceSydney NSW 1220 Australia

DX 10307SSETel: +61 (0) 2 9322 7000Fax: +61 (0) 2 9322 7001www.deloitte.com.au

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Statement of Comprehensive Income

Notes

Year ended

30 June 2011

$’000

Year ended

30 June 2010

$’000

Income 3 5,142 11,472

Expenses

Impairment loss on investment portfolio - (866)

Finance costs 5 (2,028) (1,574)

Management fees (1,171) (1,198)

Directors' remuneration (164) (164)

Registry and Custody fees (193) (206)

Other expenses 4 (206) (200)

Profit before income tax expense 1,380 7,264

Income tax benefit/(expense) 6(a) 579 (1,163)


Other comprehensive income

Net gain on investments taken to equity 4,683 78

Income tax expense 6(f) (1,405) (86)

Total other comprehensive income for the year, net of tax 3,278 (8)

Total comprehensive income for the period 5,237 6,093

Basic and diluted earnings per share 22 3.24 cents 10.29 cents

The above Income Statement should be read in conjunction with the accompanying notes.


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Statement of Financial Position

Notes

As at

30 June 2011

$’000

As at

30 June 2010

$’000

Current assets

Cash and cash equivalents 17(a) 2,927 5,059

Trade and other receivables 8 531 546

Other 9 38 38

Total current assets 3,496 5,643

Non-current assets

Investments 10, 26 102,830 100,030

Deferred tax assets 6(e) 1,620 2,411

Total non-current assets 104,450 102,441

Total assets 107,946 108,084

Current liabilities

Trade and other payables 11 371 374

Dividends payable 13 2,265 2,255

Borrowings 12 30,000 30,000

Total current liabilities 32,636 32,629

Non-current liabilities

Deferred tax liabilities 6(d) 1,288 1,253

Total non-current liabilities 1,288 1,253

Total liabilities 33,924 33,882

Net assets 74,022 74,202

Equity

Issued capital 14 57,663 57,341

Asset revaluation reserve 15(a) 2,558 8,282

Retained earnings 15(b) 13,801 8,579

Total equity 74,022 74,202

The above Balance Sheet should be read in conjunction with the accompanying notes.


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Statement of Changes in Equity

"Issued

capital"

$’000

Asset

revaluation reserve

$’000

Retained earnings

$’000

Total

$’000

Balance at 30 June 2009 55,384 8,290 8,145 71,819

Profit for the period - - 6,101 6,101

Other comprehensive income for the year, net of

income tax - (8) - (8)

Total comprehensive loss for the period - (8) 6,101 (8)

Dividends paid or payable - - (5,667) (5,667)

Share Purchase Plan 1,507 - - 1,507

Buy back of shares (1) - - (1)

Issue of shares under Dividend Reinvestment Plan 451 - - 451

Balance at 30 June 2010 57,341 8,282 8,579 74,202

Adjustment on adoption of AASB 9 (net of tax) - (7,862) 7,862 -

Adjusted balance at 1 July 2010 57,341 420 16,441 74,202

Profit for the period - - 1,959 1,959

Other comprehensive income for the year, net of

income tax

- 3,278 - 3,278

Total comprehensive income for the period - 3,278 1,959 5,234

Realised gains and losses transferred to retained

earnings (net of income tax)

- (1,140) 1,140 -

Dividends paid or payable - - (5,739) (5,739)

Buy back of shares (1) - - (1)

Issue of shares under Dividend Reinvestment Plan 323 - - 323

Balance at 30 June 2011 57,663 2,558 13,801 74,022

The above Statement of Changes in Equity should be read in conjunction with the accompanying notes.


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Statement of Cash Flows

Notes

Year ended

30 June 2011

$’000

Year ended

30 June 2010

$’000

Cash flows from operating activities

Dividends received 4,969 4,662

Interest received 186 163

Management fees paid (1,174) (1,194)

Finance costs paid (2,051) (1,391)

Other expenses paid (538) (573)

Income taxes received/(paid) - 574

Cash Inflows from Operating Activities 17(b) 1,392 2,241

Cash flows from investing activities

Payments for purchase of investments (17,592) (18,758)

Proceeds from sale of investments 19,475 19,557

Cash Inflows from Investing Activities 1,883 799

Cash flows from financing activities

Dividends paid (5,406) (4,868)

Share buy-back (1) (1)

Share Purchase Plan - 1,507

Cash Outflows from Financing Activities (5,407) (3,362)

Net decrease in cash held (2,132) (322)

Cash and cash equivalents at the beginning of the financial year 5,059 5,381

Cash and cash equivalents at the end of the financial year 17(a) 2,927 5,059

The above Cash Flow Statement should be read in conjunction with the accompanying notes.


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Notes to the Financial Statements

1. General Information

Aberdeen Leaders Limited (the “Company”) is a listed public company domiciled in Australia. The address of Aberdeen’s registered office and

principal place of business is Level 6, 201 Kent Street, Sydney NSW, 2000. The Company is primarily involved in making investments, and deriving

revenue and investment income from listed companies and unit trusts.

2. Significant accounting policies

Statement of compliance

These financial statements are general purpose financial statements which have been prepared in accordance with the Corporations Act 2001,

Accounting Standards and Interpretations, and comply with other requirements of the law.

Accounting Standards include Australian Accounting Standards. Compliance with Australian Accounting Standards ensures that the financial

statements and notes of the Company comply with International Financial Reporting Standards (‘IFRS’).

The financial statements were authorised for issue by the directors on 15 August 2011.

Basis of preparation

These financial statements are prepared on the basis of fair value measurement of assets and liabilities except where otherwise stated. All

amounts are presented in Australian dollars.

The Company is of a kind referred to in Class Order 98/0100 issued by the Australian Securities & Investments Commission, relating to the

“rounding off” of amounts in the Directors’ report and financial statements to the nearest $1,000 or in certain cases to the nearest dollar.

Amounts have been rounded off in the Directors’ report and financial statements in accordance with this class order, unless otherwise stated.

Adoption of new and revised Accounting Standards

The Company has adopted all of the new and revised standards and interpretations issued by the Australian Accounting Standards Board (AASB)

that are relevant to its operations and effective for the current reporting period:

(i) Amendments to AASB 2010-4 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project

(ii) AASB 2009-8 Amendments to Australian Accounting Standards – Group Cash-settled Share-based Payment Transactions

(iii) AASB 2009-10 Amendments to Australian Accounting Standards – Classification of Rights Issues

(iv) AASB Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments and AASB 2009-13 Amendments to Australian

Accounting Standards arising from Interpretation 19

(v) AASB 2010-3 Amendments to Australian Accounting Standards arising from the Annual Improvements Project.

(vi) AASB 2009-5 Further Amendments to Australian Accounting Standards arising from the Annual Improvements Project

The adoption of these standards did not have any impact on the current period or any prior period and is not likely to affect future periods.


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2. Significant accounting policies - continued

The Company has early adopted the following new standard issued by the AASB:

(i) AASB 9 Financial Instruments

The Company has elected to early adopt Accounting Standard AASB 9 Financial Instruments from 1 July 2010. This new standard has been

adopted because it includes requirements for the classification and measurement of financial assets which improve and simplify the

approach when compared with the requirements of the previous Accounting Standard AASB 139 Financial Investments: Recognition and

Measurement.

Investments in equity instruments, which were previously classified as available for sale financial assets, are from 1 July 2010 classified as

equity instruments revalued through other comprehensive income. They continue to be valued at fair value with changes in value being

recognised in the asset revaluation reserve (previously available for sale investment revaluation reserve). Consequently adoption of AASB 9

has no effect on the valuation of Aberdeen’s net assets or total comprehensive income.

All gains and losses on investments and tax thereon are presented in other comprehensive income as part of the Statement of

Comprehensive Income. Under AASB 9, there is no recycling of the realised gains and losses to the net profit for the period as previously

required under AASB 139. There is also no requirement to test the Company’s investments for impairment with the result that there is no

transfer of unrealised impairment losses from the asset revaluation reserve to the net profit for the period.

The transition provisions of AASB 9 require the standard to be applied retrospectively but it cannot be applied to investments that were

disposed of prior to the initial application date, which in the Company’s case is 1 July 2010. Therefore, investments that were sold prior to

1 July 2010 have been accounted for under the previous standard AASB 139 where realised gains and losses on sales (as well as tax thereon)

are included in profit for the period. After 1 July 2010 all realised gains and losses on the sale of investments net of tax are included in other

comprehensive income.

Opening balances at 1 July 2010 have been restated as disclosed below to remove the effect of the impairment provisions of AASB 139, but

only for those investments that had not been disposed of prior to 1 July 2010.

Statement of Financial Position, Statement of Comprehensive Income and income items, other than those mentioned below, were not

affected by the adoption of AASB 9.

Opening balance

1July 2010

$’000

Impairment

increase/

(decrease)

$’000

Restated balance

1 July 2010

$’000

Asset revaluation reserve 8,282 (7,862) 420

Retained earnings 8,579 7,862 16,441

Notes to the Financial Statements - continued


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New standards and interpretations not yet adopted

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2011 reporting periods. The

Directors’ assessment of the impact of these new standards (to the extent relevant to the Company) and interpretations is set out below:

(i) Revised AASB 124 Related Party Disclosures and AASB 2009-12 Amendments to Australian Accounting Standards

(effective 1 January 2011)

In December 2009 the AASB issued a revised AASB 124 Related Party Disclosures. It is effective for accounting periods beginning on or after

1 January 2011 and must be applied retrospectively. The amendment removes the requirement for government-related entities to disclose

details of all transactions with the government and other government-related entities and clarifies and simplifies the definition of a related

party. The Company will apply the amended standard from 1 July 2011. When the amendments are applied, the Company would need to disclose

any transactions between its subsidiaries and its associates. However, as the Company does not have any subsidiaries, the amendment will not

have any effect on the Company’s financial statements as it is already disclosing transactions with Aberdeen Asset Management Limited, an

associate under the revised standard.

Following new accounting standards and interpretations have been published that are not mandatory for 30 June 2011 reporting periods.

The Director assessed that there will be no significant impact on the Company’s financial statements upon adoption of these new standards and

interpretations.

(i) AASB 2009-14 Amendments to Australian Interpretation – Prepayments of a Minimum Funding Requirement (effective for annual reporting

periods beginning on or after 1 January 2011)

(ii) AASB 2010-5 Amendments to Australian Accounting Standards (effective for annual reporting periods beginning on or after 1 January 2011)

(iii) AASB 2010-6 Amendments to Australian Accounting Standards – Disclosures on Transfers of Financial Assets (effective for annual reporting

periods beginning on or after 1 July 2011)

(iv) AASB 2010-8 Amendments to Australian Accounting Standards – Deferred Tax: Recovery of Underlying Assets (effective for annual reporting

periods beginning on or after 1 January 2012)

Standard / Interpretation

Effective for annual

reporting periods

beginning on or after

Expected to be initially

applied in the financial

year ending

(v) AASB 1054 Australian Additional Disclosures 1 July 2011 30 June 2012

(vi) AASB 2011-1 Amendments to Australian Accounting Standards arising from the

Trans-Tasman Convergence Project 1 July 2011 30 June 2012

At the date of authorisation of the financial statements, the following IASB Standards and IFRIC Interpretations were also in issue but not

yet effective, although Australian equivalent Standards and Interpretations have not yet been issued.

(vii) IFRS 10 Consolidated Financial Statements 1 January 2013 30 June 2014

(viii) IFRS 11 Joint Arrangements 1 January 2013 30 June 2014



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Standard / Interpretation

Effective for annual

reporting periods

beginning on or after

Expected to be initially

applied in the financial

year ending

(ix) IFRS 12 Disclosure of Involvement with Other Entities 1 January 2013 30 June 2014

(x) IFRS 13 Fair Value Measurement 1 January 2013 30 June 2014

(xi) IAS 27 Separate Financial Statements (2011) 1 January 2013 30 June 2014

(xii) IAS 28 Investments in Associates and joint Ventures 1 January 2013 30 June 2014

The following significant accounting policies have been adopted in the preparation and presentation of the financial report. The accounting

policies have been consistently applied, unless otherwise stated.

(a) Financing costs

Financing costs are recognised as expenses in the period in which they are incurred using the effective interest rate method.

(b) Cash and cash equivalents

For Statement of Cash Flows presentation purposes, cash and cash equivalents includes cash on hand, deposits held at call with financial

institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known

amounts of cash and which are subject to an insignificant risk of changes in value.

(c) Investments

Classification

Prior to the early adoption of AASB 9, investments were classified as available-for-sale in accordance with the AIFRS definition.

From 1 July 2010 all investments form part of the Company’s investment portfolio and have been classified as “equity instruments” revalued

through the asset revaluation reserve and reflected in other comprehensive income.

Recognition

The company recognises financial assets on the day it becomes party to the contractual agreement (trade date) and recognises changes in

fair value from this date.

Measurement

Investments are measured initially at fair value. Subsequent to initial recognition, they are measured at fair value with changes in fair value

recognised directly in the asset revaluation reserve. Once an investment is sold, any revaluation gain or loss recognised attributable to that

investment is transferred to retained earnings.

Determination of Fair Value

The fair value of financial assets traded in an active market is based on their quoted market price at the Statement of Financial Position date

without any deduction for estimated future selling costs. Financial assets are priced at the current bid price.



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(d) Receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for doubtful debts. Trade

receivables are due for settlement no more than 30 days from the date of recognition.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off.

(e) Payables

Payables are recognised initially at fair value and subsequently at amortised cost. Payables represent liabilities for goods and services

provided to the Company prior to the end of the financial year which are unpaid at the reporting date. Payables are unsecured and are

usually paid within 30 days of recognition.

(f) Taxation

Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit or loss except to the extent that it relates

to items recognised directly in equity, in which case it is recognised in equity.

Current tax is expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the reporting

date, and any adjustment to tax payable in respect of previous years.

Deferred tax is based upon temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and

the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to the temporary

differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which temporary

difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable

that the related tax benefit will be realised.

(g) Dividends

Dividends payable are recognised in the reporting period in which they are declared, for the entire undistributed amount, regardless of the

extent to which they will be paid in cash.

(h) Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefit will flow to the Company and the revenue can be reliably

measured.

Revenues are recognised at the fair value of the consideration received net of the amount of goods and services tax (GST) payable to the

taxation authority.

Investment income and expenses are brought to account on an accruals basis.

Dividend revenue is recognised when the Company’s right to receive payment is established. Interest revenue is recognised on a time

proportionate basis taking into account the effective yield on the financial assets.

Realised gains on securities sold are recognised when a sale has occurred, which is on trade date. Amounts are generally received within three

days of the date of a transaction being recorded as a receivable.



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(i) Goods and services tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from

the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of

expense. Receivables and payables in the Statement of Financial Position are shown inclusive of GST.

( j) Functional and presentation currency

The functional and presentation currency of the Company is Australian Dollars.

(k) Earnings per share

Basic and diluted earnings per share are calculated by dividing the profit attributable to equity holders of the company, excluding any costs

of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year,

adjusted for bonus elements in ordinary shares issued during the year.

(l) Significant accounting judgements and estimates

In the process of applying the Company’s accounting policies, management has made the following judgements which would have the most

effect on the amounts reported in the financial statements:

Designation of Investments as ‘Available for sale’

Management has designated all investments as ‘available for sale’, which results in the fair value adjustments for the year being recognised

directly in equity until the investment has been sold, as they believe that this will provide users of the financial statements with information

that will enable them to distinguish unrealised profits from realised profits adequately. They believe that the Company has a choice as to

what designation to use for investments, and that this accounting policy will provide the most useful information. If the investments were

designated as ‘Held at fair value through profit or loss’ any unrealised gains or losses on the investments would be recognised in the profit or

loss.

(m) Fair value of financial assets and liabilities

The fair value of cash and cash equivalents, and non-interest bearing monetary financial assets and liabilities of the Company approximates

their carrying value. The fair value for assets that are actively traded on market is defined by AASB 139 as ‘last bid price’.

(n) Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a

deduction, net of tax, from the proceeds.

(o) Net Working Capital

At 30 June 2011 the company’s Statement of Financial Position shows current liabilities in excess of current assets by $29,140,000

(2010:$26,986,000) following the classification of $30,000,000 (2010:$30,000,000) of bank loans which are due for repayment on

30 November 2011 when the facility expires. At the date of this report, a replacement facility has not yet been negotiated, although

preliminary discussions have been initiated.

(p) Borrowings

Borrowings are initially measured at fair value, net of transaction costs. Borrowings are subsequently measured at amortised cost using the

effective interest rate method, with interest expense recognised on an effective yield basis.

It is the intention of the Directors to renew this loan facility for another long term period as part of the gearing strategy of the Company.



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3. Income

Year ended

30 June 2011

$’000

Year ended

30 June 2010

$’000

Realised gain on investment portfolio - 6,602

Interest 183 167

Dividends 4,959 4,703

Total 5,142 11,472

4. Other Expenses

Auditors' Remuneration (note 16) (78) (68)

Other Expenses (128) (132)

Total (206) (200)

5. Finance costs

Finance costs on loan 2,028 1,574

6. Income tax expense and benefit

The aggregate amount of income tax expense/(benefit) attributable to the year differs from the amount calculated on the operating profit/(loss)

from ordinary activities.

(a) Differences are reconciled as follows:

Year ended

30 June 2011

$’000

Year ended

30 June 2010

$’000

Profit/(Loss) for the year before income tax expense 1,380 7,264

Prima facie income tax expense/(benefit) calculated @ 30% 414 2,179

Decrease in income tax expense due to:

Tax (over)/under provision in prior years - (1)

Effect of tax on overseas income - (5)

Other assessable income 5 (9)

Non-deductible expenditure - -

Imputation gross up on dividends received 428 429

Franking credits on dividends received (1,426) (1,430)

Income tax expense/(benefit) (579) 1,163

The applicable weighted average effective tax expense/(benefit) rates are as follows: -42% 16%



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6. Income tax expense and benefit - continued

(b) Income tax expense/(benefit) recognised in the Statement of Comprehensive Income

Year ended

30 June 2011

$’000

Year ended

30 June 2010

$’000

Deferred income tax relating to the origination and reversal of temporary differences (579) 1,351

Current period tax credits to be utilised in future periods - (187)

Prior period under/(over) provision - (1)

(579) 1,163

(c) Current income tax liability and asset

Income tax (receivable)/payable - -

(d) Deferred tax liability

Provision for deferred income tax comprises the estimated expense at current income tax rates of 30% on the following items:

Provision for unrealised income tax on Investments held as ‘Available for sale’ 1,273 1,239

Other temporary differences 15 14

1,288 1,253

(e) Deferred tax asset

Provision for deferred income tax comprises the estimated expense at current income tax rates of 30% on the following items:

Prior period taxable losses to be utilised in future periods 1,602 1,875

Current and prior period tax credits to be utilised in future periods - 521

Other temporary differences 18 15

1,620 2,411

(f) Amounts recognised directly in equity during the year

Deferred tax originating and reversing during the reporting period directly recorded to investment revaluation reserve:

Fair value adjustment during the year 1,405 719

Realised (losses)/gains transferred to profit or loss - (373)

Impairment losses transferred to profit or loss - (260)

1,405 86



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7. Dividends paid or provided

Year ended

30 June 2011

$’000

Year ended

30 June 2010

$’000

Dividend paid or payable on:

Ordinary Shares 5,739 5,667

Dividend rate Total amount

$’000

% Franked Date of payment

2011

Final 3.75cps 2,265 100% 29/07/2011

Interim 2.00cps 1,208 100% 5/05/2011

Interim 2.00cps 1,208 100% 28/01/2011

Interim 1.75cps 1,058 100% 4/11/2010

5,739

2010

Final 3.75cps 2,255 100% 30/07/2010

Interim 2.00cps 1,201 100% 6/05/2010

Interim 2.00cps 1,179 100% 29/01/2010

Interim 1.75cps 1,032 100% 30/10/2009

5,667

Dividend Franking Information

Year ended

30 June 2011

$’000

Year ended

30 June 2010

$’000

Franking credits available to shareholders for subsequent financial years 12,869 13,899

Reduction in franking credits that will arise from the receipt of income tax receivable as at

the end of the financial year - -

Franking credits that will arise from the receipt of dividends recognised as receivables at the

reporting date 192 199

Impact on the franking account of dividends provided for at the reporting date (971) (967)

Adjusted franking account balance 12,090 13,131

Impact on the franking account of dividends proposed or declared before the financial

report authorised for issue but not recognised as a distribution to equity holders during the

period - -

12,090 13,131



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8. Current assets - trade and other receivables

Year ended

30 June 2011

$’000

Year ended

30 June 2010

$’000

Trade receivables 596 509

Other receivables 35 37

531 546

Receivables are non-interest bearing and unsecured. Outstanding settlements are on the terms operating in the securities industry, which usually

require settlement within three days of the date of a transaction. None of the receivables is past due or impaired at the end of the reporting

period.

The credit risk exposure of the Company in relation to receivables is the carrying amount.

9. Current assets - other

Year ended

30 June 2011

$’000

Year ended

30 June 2010

$’000

Prepayments 38 38

10. Investments

Equity Instruments at fair value through other comprehensive income

Shares - listed, at fair value 102,830 -

Available for sale investments

Shares - listed, at fair value - 100,030

11. Current liabilities - Trade and other payables

Management, administration and advisory fees payable to Aberdeen Asset

Management Limited - related entity 99 102

Accrued expenses 112 89

Interest accrual 160 183

371 374

Payables are non-interest bearing and unsecured. Outstanding settlements are on the terms operating in the securities industry, which usually

require settlement within three days of the date of a transaction.



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12. Borrowings

Year ended

30 June 2011

$’000

Year ended

30 June 2010

$’000

Current

Secured liability - loan 30,000 30,000

The Directors entered into a $30 million revolving cash advance facility with Westpac Banking Corporation on 1 December 2009.

The facility is secured by a fixed and floating charge over the Company’s assets. The carrying amount of assets pledged as security is $106,326,000

(2009: $105,673,000). The facility is drawn to the extent of $30 million on 30 June 2011. At the date of this report the facility incurs an interest

rate of 6.4733%, inclusive of the margin of 1.40%, applicable to 31 August 2011.

As the cash advance facility expires on 30 November 2011, the $30 million drawn was classified as a current liability at year end. It is the

intention of the Directors to renew this loan facility for another long-term period as part of the gearing strategy of the company subject to the

negotiation of appropriate terms. Please refer to Note 2(o) for more details.

13. Dividends payable

Year ended

30 June 2011

$’000

Year ended

30 June 2010

$’000

Dividends declared and provided for at year end 2,265 2,255

14. Issued Capital

2011 2010 2011 2010

shares shares $’000 $’000

Issued and paid up capital 60,403,053 60,138,549 57,663 57,341

The company does not have a limited amount of authorised capital. Issued shares do not have a par value



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14. Issued Capital - continued

(a) Movements in ordinary share capital

Date Details Number of shares Issue price $’000

01/07/2009 Opening balance 58,710,495 55,384

Total new ordinary shares issued under the Dividend Reinvestment Plan

351,465 1.28 451

Total on market buybacks during the financial year (784) 1.44 (1)

Share purchase Plan 1,077,373 1.40 1,507

30/06/2010 Balance 60,138,549 57,341

Total new ordinary shares issued under theDividend Reinvestment Plan 265,632 1.22 323

Total on market buybacks during the financial year (1,128) 1.30 (1)

30/06/2011 Balance 60,403,053 57,663

(i) The Company operates a Dividend Reinvestment Plan under which the shareholders may elect to have all or part of their dividend payments

reinvested in new ordinary shares. During the year the Company issued 265,632 (2010: 351,465) new shares under the DRP at an average

price of $1.22 (2010: $1.28).

(ii) The Company operated a Share Purchase Plan (“SPP”) during the year ended 30 June 2010 under which shareholders could elect to purchase

up to $7,500 of new shares in the Company. During that year the Company issued 1,077,373 new shares under the SPP at an average price

of $1.40. There was no SPP operated during year ended 30 June 2011.

(iii) The Company announced an on-market share buy-back program in February 2008. During current financial year the buy-back period ended

on the 27 February 2011, however, was extended until 27 February 2012. The Company bought back 1,128 shares (2010:784) at an average

price of $1.30 (2010: $1.44) during the year.

(iv) Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to vote at Shareholder meetings.

In the event of winding up the Company, ordinary shareholders rank after creditors and are fully entitled to any proceeds on liquidation.



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15. Reserves and retained earnings

Year ended

30 June 2011

$’000

Year ended

30 June 2010

$’000

(a) Asset revaluation reserve

Balance at the beginning of financial year 8,282 8,290

Adjustment on adoption of AASB 9 (11,231) -

Deferred tax on above adjustment 3,369 -

Adjusted balance at beginning of financial year 420 8,290

Movements

Net fair value adjustment during the year 4,683 5,814

Deferred income tax on movement in the year (1,405) (86)

Realised gains and losses transferred to retained earnings (1,629) -

Deferred tax on above transfer 489 -

Realised gains transferred to profit and loss - (6,602)

Impairment losses on available for sale investments transferred to profit or loss - 866

2,138 (8)

Balance at the end of the financial year 2,558 8,282

For a description of the nature and purpose of the Available for sale investment revaluation reserve refer Note 2 (c).

(b) Retained earnings

Balance at the beginning of the financial year 8,579 8,145

Adjustment on adoption of AASB 9 11,231 -

Deferred tax on above adjustment (3,369) -

Adjusted balance at beginning of financial year 16,441 8,145

Net profit attributable to the members of the Company 1,959 6,101

Transfer of realised gains and losses from asset revaluation reserve 1,629 -

Deferred tax on above transfer (489) -

Dividends provided for and paid (note 7) (5,739) (5,667)

Balance at the end of the financial year 13,801 8,579

16. Auditors’ remuneration

Year ended

30 June 2011

$

Year ended

30 June 2010

$

Audit Services

Audit or review of financial statements 66,542 56,240

AFS License Audits 6,930 6,930

Other services:

Taxation services 4,840 5,280

78,312 68,450



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17. Notes to the cash flow statement

(a) Components of cash

For the purposes of the Statement of Cash Flows, cash includes cash on hand, and “at call” deposits with banks or other financial institutions.

Cash at the end of the financial year as shown in the Statement of cash flows is reconciled to the related items in the Statement of Financial

Position as follows.

Year ended

30 June 2011

$’000

Year ended

30 June 2010

$’000

Operating bank account 200 233

Deposits at call 2,727 4,826

2,927 5,059

The credit risk exposure of the Company in relation to cash and deposits is the carrying amount and any accrued unpaid interest. Cash

investments are made with BNP Paribas which is rated AA by Standard & Poor’s.

(b) Reconciliation of profit for the year to net cash provided by operating activities

Year ended

30 June 2011

$’000

Year ended

30 June 2010

$’000


Deduct: realised gains on investments - (6,602)

Add impairment losses on investments - 866

Change in operating assets of investment

(Increase)/Decrease in trade and other receivables 15 (44)

Decrease in prepayments - (1)

Increase/(Decrease) in trade and other payables 20 1

Increase/(Decrease) in interest payable (23) 183

Increase/(Decrease) in current tax liability - 573

Increase/(Decrease) in deferred tax liability (579) 1,164

Net cash provided by operating activities 1,392 2,241

18. Key management personnel

(a) Key management personnel compensation

Details of the remuneration of Aberdeen key management personnel and their related entities are set out as below:

Short-term

Employee benefit

Post-Employment

benefit Other benefit

Cash Salary & Fees

$

Superannuation

$ $

Total

$

2011 150,000 13,500 - 163,500

2010 150,000 13,500 - 163,500



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18. Key management personnel - continued

(b) Shareholdings of key management personnel

At balance date, shares issued by the Company and held directly, indirectly or beneficially by Directors of the Company, or by entities to

which they were related were:

Ordinary shares Opening Net Accquired/ Closing

2011 Balance (Sold) Balance

BM Sherman 12,316,623 - 12,316,623

NJ Miles 120,892 (10,000) 110,892

DL Elsum 347,544 15,591 363,135

2010

BM Sherman 12,316,623 - 12,316,623

NJ Miles 372,380 (251,488) 120,892

DL Elsum 323,994 23,550 347,544

Shares acquired by the Directors and their Director-related entities include shares acquired under the Dividend Reinvestment Plan on the

same basis as similar transactions with other shareholders. Directors and Director-related entities received normal dividends on these shares.

There were no shares granted during the reporting period or during the previous reporting period as compensation.

19. Segment information

The Company has only one reportable segment. The Company operates predominantly in Australia and in one industry being the securities

industry, deriving revenue from dividend income, interest income and from the investment portfolio.

20. Related party information

(a) Related parties

Aberdeen Asset Management Limited

The Company has entered into a Management Agreement with Aberdeen Asset Management Limited such that it will manage investments

of the Company, ensure regulatory compliance with all the relevant laws and regulations, and provide administrative and other services for a

fee.

Management and administration fees paid and payable to Aberdeen Asset Management Limited for the year ended 30 June 2011 amounted

to $1,170,876 (2010:$1,197,738).

No performance fees were paid or payable to Aberdeen Asset Management Limited for the year ended 30 June 2011 (2010: Nil).

21. Financial risk management

The Company is exposed to a variety of financial risks in the normal course of business including market risk (including price risk and interest rate

risk), credit risk and liquidity risk. The Board of the Company has implemented a risk management framework to mitigate those risks.

The Board has delegated the risk management statement and the quarterly review of all risk issues to the Risk and Compliance Committee

which comprises two independent non-executive Directors who have the appropriate technical expertise and experience to carry out the

Committee’s responsibilities. The committee generally meets quarterly.



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21. Financial risk management - continued

(a) Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an

obligation.

Credit risk is managed as noted in Note 17 (a) and Note 8 with respect to cash and receivables. None of these assets are overdue or

considered to be impaired.

At the reporting date, there were no material concentrations of credit risk.

(b) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.

By its nature as a Listed Investment Company, the Company can never be free of market risk as it invests its capital in securities which are

not risk free - the market price of these securities fluctuates.

The following table illustrates the effect on the Company’s equity from possible changes in other market risk that were reasonably possible

based on the risk the Company was exposed to at reporting date, assuming a flat tax rate of 30 per cent:

Change in

variable 2011

Change in

variable 2010

Effect on Company’s Equity

+/- +/- 2011 2010

$’000 $’000

Equity price risk 10% 10% 7,198 7,002

Equity price risk 15% 15% 10,797 10,503

Under AASB 139 in the case of a significant or prolonged decline in the value of an instrument and if determined to be impaired, impairment

losses will be recognised in the profit or loss. For the year ended 30 June 2010 the Company transferred an impairment loss of $0.87 million

from the Available for sale financial assets investment revaluation reserve in to the profit or loss. When identifying impaired stocks the

company considered whether securities had been in a loss position for more than 9 months to reporting date or whether the fair value are of

securities was more than 20% below cost.

After adoption of AASB 9 the Company’s equity instruments revalued through Other Comprehensive Income are no longer required to be

tested for impairment. The changes in fair value are recognised directly in the Asset Revaluation reserve.

Aberdeen seeks to manage and constrain market risk by diversification of the investment portfolio across multiple stocks and industry

sectors. The portfolio is maintained by the Investment Manager within a range of parameters governing the levels of acceptable exposure to

stocks and industry sectors. The relative weightings of the individual securities and relevant market sectors are reviewed weekly.


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The Company’s investment sector as at 30 June is as below: 2011

%

2010

%

Consumer discretionary 7.36 6.67

Consumer staple 11.32 11.32

Energy 7.96 4.50

Finance Ex Property Trusts 31.14 31.12

Healthcare 1.61 3.60

Industrials 4.69 1.68

Materials 22.79 23.74

Property Trusts 3.41 4.79

Telecommunications services 3.76 4.02

Utilities 2.87 6.69

Information Technology 3.09 1.87

100.00 100.00

The Company is also not directly exposed to currency risk as all its investments are quoted in Australian dollars.

(c) Interest rate risk

The Company’s interest bearing financial assets expose it to risks associated with the effects of fluctuations in the prevailing levels of market

interest rates on its financial position and cash flows.

The majority of the Company’s financial assets are non-interest bearing. As a result, the Company is subject to limited exposure to fair value

interest rate risk due to fluctuations in the prevailing levels of market interest rates.

The following table illustrates the effect on the Company’s Equity from possible changes in market risk that were reasonably possible based

on the risk the Company was exposed to at reporting date, assuming a flat tax rate of 30 per cent:

Change in

variable 2011

Change in

variable 2010

Effect on Company’s Equity

2011 2010

$’000 $’000

Interest rate risk +0.75bps +0.75bps 142 131


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The Company’s exposure to interest rate risk and the weighted average effective interest rates on interest-bearing financial assets and

liabilities are summarised in the table below.

Fixed interest

maturing in:

2011 Floating Less than 1 Non interest

interest rate year bearing Total

$’000 $’000 $’000 $’000

Financial assets

Cash and cash equivalents 2,927 - - 2,927

Trade and other receivables - - 531 531

Investments - - 102,830 102,830

2,927 - 103,361 1065,288

Weighted average interest rate 4.86%

Financial liabilities

Trade and other payables - - 371 371

Borrowings - 30,000 - 30,000

- 30,000 371 30,3741


Net financial assets / (liabilities) 2,927 (30,000) 102,990 75,917

Fixed interest

maturing in:

2010 Floating 1 - 5 Non interest

interest rate years bearing Total

$’000 $’000 $’000 $’000

Financial assets

Cash and cash equivalents 5,059 - - 5,059

Trade and other receivables - - 546 546

Investments - - 100,030 100,030

5,059 - 100,576 105,635


Financial liabilities

Trade and other payables - - 374 374

Borrowings - 30,000 - 30,000

- 30,000 374 30,374


Net financial assets / (liabilities) 5,059 (30,000) 100,202 75,261


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(d) Liquidity Risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities.

The Investment Manager monitors its cashflow requirements daily in relation to the trading account taking into account upcoming

dividends, tax payments and trading activity.

The Company’s inward cashflows depend upon the level of dividend and distribution revenue received. Should these decrease by a material

amount, the Company would amend its outward cashflows accordingly. As the Company’s major cash outflows are the purchase of securities

and dividends paid to shareholders, the level of both of these is managed by the Board and Investment Manager.

Furthermore, the assets of the Company are largely in the form of readily tradeable securities which can be sold on-market if necessary.

As disclosed in Note 12, the Company’s debt facility expires on 30 November 2011. It is the intention of the directors to renew the facility

for another long term period as part of the gearing strategy of the Company, subject to negotiation of appropriate terms.

The table below analyses the Company’s financial liabilities in relevant maturity groupings based on the remaining period to the earliest

possible contractual maturity date at the year end date. The amounts in the table are contractual undiscounted cash flows.

At 30 June 2011

Less than 1

month

$’000

More than 1

month and

less than 12

months

$’000

Total

$’000

Trade and other payables 371 - 371

Borrowings - 30,814 30,814

Total financial liabilities 371 30,814 31,221

At 30 June 2010

Trade and other payables 374 - 374

Borrowings - 31,543 31,543

Total financial liabilities 374 31,543 31,917


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(d) Liquidity Risk - continued

The table below analyses the Company’s financial assets in relevant maturity groupings based on the remaining period to the earliest

possible contractual maturity date at the year end date. The amounts in the table are contractual undiscounted cash flows.

At 30 June 2011

Less than 1

month

$’000

More than 1

month and

less than 12

months

$’000

Total

$’000

Trade and other receivables 531 - 531

Total financial liabilities 531 - 531

At 30 June 2010

Trade and other receivables 546 - 546

Total financial liabilities 546 - 546

(e) Capital Management

The capital structure of the Company consists of debt, which includes the borrowings disclosed in note 12, cash and cash equivalents and

equity attributable to equity holders, comprising issued capital, reserves and retained earnings as disclosed in note 14,15(a) and 15(b)

respectively. The Company is not subject to externally imposed capital requirements.

The Board’s policy is to maintain a strong capital base so as to maintain investor and market confidence. The overall strategy remains

unchanged from 2010.

To achieve this the Board of Directors monitor the monthly NTA results, investment performance, the Company’s management expense ratio

(MER) and share price movements.

The Company extended an on-market share buy-back in February 2011, refer to Note 14(iii) for details.

(f) Fair value hierarchy

The Company has adopted the amendments to AASB 7, effective 1 July 2009. This requires the Company to classify fair value measurements

using a fair value hierarchy that reflects the subjectivity of the inputs used in making the measurements. The fair value hierarchy has the

following levels:

Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2 - Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices)

or indirectly (that is, derived from prices)

Level 3 - Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs)”


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(f) Fair value hierarchy - continued

The level in the fair value hierarchy within which the fair value measurement is categorised in its entirety is determined on the basis

of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is

assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant

adjustment based on unobservable inputs, that measurement is a level 3 measurement. Assessing the significance of a particular input to the

fair value measurement in its entirety requires judgement, considering factors specific to the asset or liability.

The determination of what constitutes ‘observable’ requires significant judgement by the Directors. The Directors consider observable data

to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by

independent sources that are actively involved in the relevant market.

The table below sets out the Company’s financial assets and liabilities (by class) measured at fair value according to the fair value hierarchy

at 30 June 2011.

Level 1 Level 2 Level 3 Total

2011 $’000 $’000 $’000 $’000

Financial Assets

Equity Instruments at fair value through other

comprehensive income

102,830 - - 102,830

Total 102,830 - - 102,830

2010

Financial Assets

Available for sale investments 100,030 - - 100,030

Total 100,030 - - 100,030

Investments whose values are based on quoted market prices in active markets, and therefore classified within level 1, include active listed

equities, certain unlisted unit trusts and exchange traded derivatives.

Financial instruments that trade in markets that are not considered to be active but are valued based on quoted market prices, dealer

quotations or alternative pricing sources supported by observable inputs are classified within level 2. The Company has no investments that

are classified within level 2.

Investments classified within level 3 have significant unobservable inputs, as they are infrequently traded. The Company has no investments

that are classified within level 3.


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22. Earnings per share

Year ended

30 June 2011

Year ended

30 June 2010

Basic and diluted earnings per share before impairment loss 3.24 cents 11.31 cents

Unrealised impairment loss per share net of tax - (1.02) cents

Basic and diluted (loss)/earnings per share 3.24 cents 10.29 cents

There is no contingent issue of shares which would dilute earnings per share. The Company has no securities outstanding which have the potential

to convert to ordinary shares and dilute the basic earnings per share.

Weighted average number of ordinary shares used in the calculation of basic

and diluted earnings per share 60,382,445 59,268,686

23. Additional information

Aberdeen Leaders Limited is a listed public company, incorporated and operating in Australia. The Company has no employees.

24. Contingent assets and liabilities

There were no outstanding contingent assets and liabilities at 30 June 2011 or at 30 June 2010. The Investment Management Agreement entered

into by the Company with Aberdeen Asset Management Limited may be terminated by either party giving to the other one-year notice of its

intention to do so.

25. Events subsequent to reporting date

No significant events have occurred since balance date which would impact on the financial position of the Company as at 30 June 2011.


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26. Holdings at fair value through other comprehensive income

Investments in Equity Instruments

Year ended

30 June 2011

$ 000

Year ended

30 June 2010

$ 000

Agl Energy Limited 5,122 4,336

Amp Limited 1,989 -

Anz Banking Group 6,498 5,065

Asx Limited 3,165 3,972

Axa Asia Pacific Holdings Limited - 2,187

Billabong Int Limited - 1,355

Bhp Billiton Limited 11,766 13,296

Commonwealth Bank 7,307 5,336

Computershare Limited 3,175 1,868

David Jones Limited 3,044 2,700

Goodman Fielder Limited 1,470 1,650

Incitec Pivot Limited 2,002 1,689

Leighton Holdings 2,817 1,682

Metcash Limited 2,287 3,362

Newcrest Mining 2,124 -

Orica Limited 2,791 2,008

Qbe Insurance 8,173 7,928

Ramsay Health Care 1,652 2,041

Rio Tinto Limited 6,761 6,751

Singapore Telecom 3,867 4,017

Sonic Healthcare Limited - 1,560

Sp Ausnet 2,953 2,359

Tatts Group Limited 3,167 2,620

Westpac Banking Corporation 4,898 6,644

Westfield Group 3,507 4,791

Woolworths Limited 7,880 6,309

Woodside Petroleum 3,060 4,504

Westfield Retail Trust 1,355 -

102,830 100,030


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In accordance with a resolution of the Directors of Aberdeen Leaders Limited, we declare that:

In the opinion of the Directors:

(a) the financial statements and notes are in accordance with the Corporations Act 2001 including compliance with Accounting

Standards and give a true and fair view of the financial position and performance of the Company for the financial year ended

30 June 2011;

(b) the attached financial statements are in compliance with International Financial Reporting Standards, as stated in Note 2 to the

financial statements;

(c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and

payable; and

(d) the Directors have received the declarations required by section 295A of the Corporations Act 2001.

On behalf of the Board

Mark Daniels

Director dated this 15th day of August 2011 in Sydney

Directors’ Declaration


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Independent Audit Report

Independent Auditor’s Reportto the Members of Aberdeen Leaders Limited

Report on the Financial Report

We have audited the accompanying financial report of Aberdeen Leaders Limited, which comprises the statement of financial position as at 30 June 2011, the statement of comprehensive income, the statement of cash flows and the statement of changes in equity for the year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration as set out on pages 9 to 30.

Directors’ Responsibility for the Financial Report

The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. In Note 2, the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements comply with International Financial Reporting Standards.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control, relevant to the entity’s preparation of the financial report that gives a true and fair view, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Deloitte Touche TohmatsuA.B.N. 74 490 121 060

Grosvenor Place225 George StreetSydney NSW 2000PO Box N250 Grosvenor PlaceSydney NSW 1220 Australia

DX 10307SSETel: +61 (0) 2 9322 7000Fax: +61 (0) 2 9322 7001www.deloitte.com.au


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Independent Audit Report - continued

Auditor’s Independence Declaration

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Aberdeen Leaders Limited, would be in the same terms if given to the directors as at the time of this auditor’s report.

Opinion

In our opinion:

(a) the financial report of Aberdeen Leaders Limited is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the company’s financial position as at 30 June 2011 and of its performance for the year ended on that date; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and

(b) the financial statements also comply with International Financial Reporting Standards as disclosed in Note 2.

Report on the Remuneration Report

We have audited the Remuneration Report included in pages 3 to 5 of the directors’ report for the year ended 30 June 2011. The directors of the company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

Opinion

In our opinion the Remuneration Report of Aberdeen Leaders Limited for the year ended 30 June 2011, complies with section 300A of the Corporations Act 2001.

DELOITTE TOUCHE TOHMATSU

Alfred NehamaPartnerChartered AccountantsSydney, 16 August 2010


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Additional Information

The additional information set out below was applicable as at 31 August 2011.

Largest shareholders

Shareholders Ordinary shares Held % of issued shares

Escotwo Pty Limited 12,263,623 20.303

Argo Investments Limited 6,506,052 10.771

Gasweld Pty Limited 1,971,529 3.264

Mr David Madden 1,420,000 2.351

Tampere Pty Ltd 624,522 1.034

Ling Nominees Pty Limited 411,125 0.681

Relgan & Co Pty Ltd 400,000 0.662

Assington Hall Pty Ltd 379,626 0.628

Rhynway Pty Ltd 364,758 0.604

Ubs Wealth Management Australia Nominees Pty Ltd 318,221 0.527

Jp Morgan Nominees Australia Limited <Cash Income A/C> 271,252 0.449

Hsbc Custody Nominees (Australia) Limited 252,965 0.419

Griffith Management Pty Limited <W A Gay Super Fund A/C> 241,662 0.400

Mrs Norah Freida Lillas 211,714 0.351

Restiff Pty Ltd 210,121 0.348

Meballa Pty Ltd 208,000 0.344

Professor Arie Rotem & Mrs Wendy-Ann Rotem <The Ariella S/F A/C> 200,000 0.331

Davaki Pty Limited <Davaki A/C> 191,444 0.317

Stronpark Pty Limited 190,158 0.315

Mrs Ethna Hester Brown 190,000 0.315

26,826,772 44.414

Substantial Shareholders

The following shareholders have notified that they are substantial shareholders of Aberdeen Leaders Limited:

Shareholders Ordinary shares Held % of issued shares

BM Sherman 12,316,623 20.391

Argo Investments Limited 6,506,052 10.771


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Additional Information - continued

Distribution of ordinary shares:

Analysis of ordinary shareholders by size of shareholders as at 31 August 2011:

Shareholders Number of shareholders Ordinary Shares held % of issued shares

1-1,000 464 285,949 0.473

1,001-5,000 921 2,815,004 4.660

5,001-10,000 527 4,082,309 6.758

10,001-100,000 862 22,832,257 37.800

100,001 and over 47 30,387,184 50.308

2,821 60,402,703 100.000

Investment Transactions

The total number of investment transactions during the financial year ended 30 June 2011 was 94 The total brokerage paid on these

investment transactions was $87,342.

Voting Rights

All shareholders registered on the Company’s share register as members of the Company carry one vote per share.

Stock Exchange Listing

Quotation has been granted for all Ordinary Shares of the Company on all Member Exchanges of the Australian Securities Exchange

Limited.

Shareholder Information

Our registry service provider BoardRoom Pty Limited delivers access and management of your Aberdeen Leaders holding online at

www.investorserve.com.au. The InvestorServe web site will allow you to view: balances, transaction history, recent dividend

payments, report elections. You can submit and update your: address details, banking instructions, tax file number, communication

preferences. Further you can download various forms to assist in the management of your holding, lodge proxies online, retrieve

documents relevant to your holding and manage other linked holdings. For security reasons, you will need to obtain a PIN to log on to

InvestorServe. To apply for a PIN, simply log on to www.investorserve.com.au and follow the instructions.


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Directors

BM Sherman, AM, B Comm, SA Fin (Chairman)

NJ Miles, BComm (Hons), CA

DL Elsum, AM, BEE (Hons), B Comm, MSc, FCPA

AM Daniels, B Ec

Company Secretary

G Orski BCom, LLB

Registered Office

Level 6, 201 Kent Street

Sydney

NSW 2000

Auditor

Deloitte Touche Tohmatsu

Grosvenor Place

225 George Street Sydney

NSW 2000

Bankers

Westpac Institutional Bank

Level 3

275 Kent Street

Sydney

NSW 2000

Custodian

BNP Paribas Security Services Limited

Level 8, 60 Castlereagh Street

Sydney

NSW 2000

Share Registrar

BoardRoom Pty Limited

Level 7

207 Kent Street

Sydney

NSW 2000

Telephone +61 2 9290 9600

www.investorserve.com.au

This document has been printed with soy based inks on 100% recycled paper, manufactured with 75% post consumer and 25% pre consumer waste. No virgin fibres used. Elemental chlorine free.

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11 Aberdeen Leaders LimitedABN 25 003 236 173

Annual Report and Accounts

30 June 2011

Aberdeen Asset Management LimitedLevel 6, 201 Kent St

Sydney NSW 2000

Phone: +61 2 9950 2888 Fax: +61 2 9950 2800

Toll Free: 1800 636 888



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11 For personal use only - Australian Securities · PDF file275 Kent Street Sydney NSW 2000...

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