Anglo & Overseas achieved a total return of 16.6% for the year to July 2010 and increased its exposure to Japan.

The investment trust increased its net asset value from 96.8p a share to 110.13p a share in the 12 months to July 2010 but the share price did not keep pace and the discount to NAV increased. At the current price of 98.5p a share, the discount is 10.5% - it was in single figures just over a year ago.

Anglo & Overseas has declared a final dividend of 2.16p a share, which takes the total for the year to 3p a share, up from 2.9p in 2008-09.

The trust is a long-term investor and it argues that this means that it will not follow the same course as any index. Edinburgh Partners is the investment manager. The number of holdings has been reduced to 44, which the manager believes is nearer the optimum number.

The trust has increased its exposure to Japan and it accounts for around 10% of the portfolio. Japan's proximity to emerging markets is an attraction. Fujitsu and Sony are in the top ten holdings. Emerging markets account for around on-fifth of the portfolio.

Financials and telecoms dominate the portfolio.

"We believe that the economies of the developed markets of Europe and North America will not return to their previous growth rates for some time", says the investment manager. "By contrast, the economies of the emerging markets are in a much healthier condition."

Anglo & Overseas hopes to get shareholder permission to repurchase up to 14.99% of its shares, if supply exceeds demand in the market.

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