Edgar Filing: ASIA TIGERS FUND INC

nvcsr

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-08050

The Asia Tigers Fund, Inc.

(Exact name of registrant as specified in charter)

345 Park Avenue
New York, NY 10154

(Address of principal executive offices) (Zip code)

Simpson Thacher & Bartlett LLP
425 Lexington Avenue
New York, NY 10017

(Name and address of agent for service)

Registrant’s telephone number, including area code: 212-583-5000

Date of fiscal year end: October 31, 2010

Date of reporting period: October 31, 2010

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

The Report to Shareholders is attached herewith.

The Asia Tigers Fund, Inc.

December 27, 2010

Dear Fund Shareholder,

We are pleased to provide you with the audited financial statements of The Asia Tigers Fund, Inc. (the “Fund”) for the fiscal year ended October 31, 2010.

The Fund’s net asset value (“NAV”) closed at $22.47 on October 31, 2010, representing a gain of 20.72% for the Fund’s fiscal year. The Fund performed in line with its benchmark index, the MSCI AC Asia ex-Japan*, which gained 20.58% during the same twelve month period.

Asian equities saw a second straight year of gains, with six of the ten markets in the MSCI AC Asia ex-Japan index either approaching or exceeding the peak levels reached in 2007. This performance came despite a number of troubling aftershocks in the wake of the 2008 Financial Crisis — the most significant being the emergence of a European sovereign debt crisis. In addition, rising inflationary/asset bubble pressures in the region, concern over China’s policy-tightening measures, and worries over a ‘double-dip’ recession in the U.S. were key overhangs, in our opinion, for much of the year. Not surprisingly, given the uncertain macro environment, markets were volatile, suffering two sharp corrections — one a pullback of 12.5% early in the year, followed by a 15% decline midway through the second quarter. However, from June onwards, Asian markets spent most of the time moving higher, driven by solid economic data in the region, strong corporate earnings, and — beginning in the third quarter — clear signs from the Federal Reserve that it would be pursuing a second round of quantitative easing (“QE2”), putting to rest, at least temporarily, the worst fears about an impending U.S. ‘double-dip’ recession.

Asia’s 20% plus gain during the Fund’s fiscal year was largely in line with other emerging markets, while the asset class overall trounced the developed markets indices, which rose approximately 10%. In fact, on the back of two consecutive years of strong outperformance, Asia now trades at a slight valuation premium to developed markets compared to what historically has almost always been a discount**. Following the shock of the 2008 Financial Crisis, we believe global investors have concluded that Asia ex-Japan — with its stronger growth outlook and superior balance sheet — has a relatively more attractive risk/reward profile. Many of the weaknesses that limited the region in the past, such as poor corporate governance and excessive financial leverage, were addressed by Asian governments and companies in the years after the 1998 Asian Financial Crisis. By contrast, we believe that this time it appears to be the developed world — in particular the U.S. and the European Union — that has de-leveraging and structural reform ahead of it before being able to return to normalized growth rates.

The region’s rising popularity among global investors can be seen in foreign portfolio inflows data, which registered $50 billion in the first 10 months of 2010, a pace which, if maintained, will surpass even 2009’s all-time high of $61 billionˆ. In addition, while it is nearly impossible to get foreign inflows data on the region’s other asset classes (e.g., fixed-income, government securities, real estate), there is little doubt that at least part of the global liquidity generated by the Federal Reserve’s quantitative easing is finding its way into Asian assets. The heady combination of Asia’s 7-8% growth rate and 3% short-term interest rates has resulted in rising concern about both inflation and the potential for asset bubbles. Region-wide, inflation has accelerated from approximately 1.7% last year to 3.8% in 2010 (though varying significantly by country). Asian central banks have responded with differing degrees of tightening, ranging from India — the most aggressive — which has raised interest rates six times, to Indonesia, which has not moved to tighten at all. However, broadly speaking, the response from most Asian central banks thus far in 2010 has been fairly tepid, though we believe this may change if inflation numbers worsen. As it currently stands, real interest rates in almost every country in the region remain firmly in negative territory.

Where Asian governments have been more aggressive is in ‘sterilizing’ foreign inflows as well as implementing short-term capital controls. Again, these measures have varied in terms of size and scope, though they have largely been in the form of levying taxes or setting new ownership limits for foreigners. Despite these actions, Asian currencies have appreciated strongly over the last 12 months, with nearly all countries in the region seeing double-digit gains against the U.S. dollar. Unfortunately, one exception has been China, the country that is seeing the most political pressure from the West to let its currency appreciate. Nevertheless, even China — following its June 2010 announcement that it would no longer peg the renminbi strictly to the dollar — has seen its currency appreciate at a 9% annualized rate. As mentioned earlier, we believe China policy risk has been a key overhang for markets all year. However, we believe the government has done a reasonable job of using both administrative measures and interest rate hikes (raising reserve requirements four times and interest rates once) to cool down its overheated property market and rein in lending growth. Despite this, China’s most recent data is showing a re-acceleration in bank loans, inflation and indeed, the overall economy — a prospect that is spooking investors. Nevertheless, we believe the government is slowly but effectively laying the groundwork for the property market to see a soft landing while further structural de-regulation and reforms are taken. In our view, Chinese companies continue to have some of the most exciting long-term growth stories in all of Asia.

Regarding the rest of corporate Asia, in general, we believe companies have executed well this year in delivering strong earnings growth. At the start of the year, earnings forecasts for the region called for growth of 10% and 18% for 2009 and 2010, respectively. Nearly 11 months later, we see that 2009 actually achieved 15% earnings growth and 22% is now expected for 2010. We believe these positive earnings surprises have at least partially offset some of the concerns surrounding the uncertain global macro environment. Moreover, with current valuations at 12.9x forward Price

Earnings Ratio, 2x trailing Price/Book Ratio, and a 2.3% dividend yield, Asian valuations are trading almost exactly in-line with their 20 year historical mean**. Realizing that such ‘big picture’ averages can mask a lot of useful information, we would highlight that these numbers are dragged down somewhat by this year’s underperformance of several regional mega-caps (market cap greater than $50 billion), many of them from China. At the same time, there are clearly pockets of exuberance if not over-valuation in Asia, including in Indonesia, which trades on a historically high trailing Price/Book Ratio of 5x as well as many of the region’s consumer-related stocks which trade on forward earnings multiples of 25-40x, also, in many cases, at their all-time highs.

Looking out to 2011, we believe it will be a year when Asian growth, both in respect of the economy and corporate earnings, moderates to sustainable but still relatively high levels. Overall, Asian regional GDP growth is forecast at 7.9% in 2010 and 6.7% in 2011ˆˆ, while corporate earnings growth is projected to downshift from 22% this year to approximately 15% in 2011**. Assuming that Euro sovereign debt woes remain contained, the world’s developed economies continue their slow recovery process, and overheating pressures remain under control in the region, we believe Asian equities should be able to continue their solid performance. Longer-term, we believe investors will also stand to benefit as the region continues rising in global importance, both in terms of real economic activity as well as global equity market capitalization.

On behalf of the Board of Directors and the Fund’s portfolio manager Punita Kumar-Sinha and associate portfolio manager Gregory Miller, we thank you for your participation and continued support of the Fund. If you have any questions, please do not hesitate to visit our website at www.blackstone.com or call our toll-free number, 866-800-8933.

Sincerely,

Prakash A. Melwani

Director and President

The Asia Tigers Fund, Inc.


*	Please note that the benchmark is an unmanaged index. Investors cannot directly invest in the index. The index does not reflect transaction costs or manager fees.

** Source: FactSet Research Systems


ˆ	Bloomberg, GS Global Research (Note: Portfolio funds inflow data does not include Hong Kong, Singapore, or Malaysia)

ˆˆ International Monetary Fund (IMF) estimates

PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. There is no guarantee that the Fund’s or any other investment technique will be effective under all market conditions.

THE ASIA TIGERS FUND, INC.

Fundamental Periodic Repurchase Policy

The Fund has adopted the following fundamental policy regarding periodic repurchases:


	a)	The Fund will make offers to repurchase its shares at semi-annual intervals pursuant to Rule 23c-3 under the Investment Company Act of 1940, as amended, from time to time (“Offers”). The Board of Directors may place such conditions and limitations on the Offers as may be permitted under Rule 23c-3.

	b)	14 days prior to the last Friday of each of the Fund’s first and third fiscal quarters, or the next business day if such Friday is not a business day, will be the deadline (the “Repurchase Request Deadline”) by which the Fund must receive repurchase requests submitted by stockholders in response to the most recent Offer.

	c)	The date on which the repurchase price for shares is to be determined (the “Repurchase Pricing Date”) shall occur no later than the last Friday of each of the Fund’s first and third fiscal quarters, or the next business day if such day is not a business day.

	d)	Offers may be suspended or postponed under certain circumstances, as provided for in Rule 23c-3.

(For further details, see Note E to the Financial Statements.)

THE ASIA TIGERS FUND, INC.

October 31, 2010

Schedule of Investments


COMMON STOCKS (99.10% of net assets)
NUMBER			PERCENT OF
OF SHARES		SECURITY	NET ASSETS		COST		VALUE


		China		13.59%
		Auto/Truck Parts & Equipment		1.02%
	62,000	Weichai Power Co., Ltd.			$	479,931	$	814,158

		Building Products – Cement & Aggregation		0.85%
	476,500	BBMG Corp.				501,683		677,351

		Commercial Banks – Non-US		3.31%
	1,596,000	China Construction Bank Corp.				1,108,560		1,521,412
	1,392,000	Industrial & Commercial Bank of China, Ltd.				717,438		1,120,452

						1,825,998		2,641,864

		Electric Products – Miscellaneous		0.90%
	237,000	Zhuzhou CSR Times Electric Co., Ltd.				447,316		723,018

		Electrical & Electronics		0.44%
	53,387	China Digital TV Holding Co. ADR+				372,721		351,286

		Electronic Components – Miscellaneous		0.73%
	242,000	AAC Acoustic Technology Holdings, Inc.				354,045		583,125

		Information Technology		0.15%
	190,000	Lenovo Group, Ltd.				153,013		123,034

		Life/Health Insurance		0.67%
	123,000	China Life Insurance Co., Ltd.				192,318		538,660

		Oil Companies – Integrated		1.66%
	2,864	China Petroleum and Chemical Corp. ADR				137,862		272,968
	864,000	PetroChina Co., Ltd.				938,505		1,054,324

						1,076,367		1,327,292

		Retail – Apparel/Shoes		0.26%
	277,000	China Dongxiang Group, Co.				199,340		155,074
	85,000	Evergreen International Holdings, Ltd.+				50,915		50,437

						250,255		205,511

		Retail – Bookstore		0.81%
	1,092,000	Xinhua Winshare Publishing & Media Co., Ltd.				462,239		649,371

		Retail – Food		0.16%
	30,000	Lianhua Supermarket Holdings, Ltd.				34,680		127,704

		Retail – Miscellaneous/Diversified		0.74%
	700,000	Springland International Holdings, Ltd.+				540,461		588,729

		Telecommunications Equipment		0.63%
	136,485	ZTE Corp.				198,185		507,045

THE ASIA TIGERS FUND, INC.


Schedule of Investments (continued)	October 31, 2010


COMMON STOCKS (continued)
NUMBER			PERCENT OF
OF SHARES		SECURITY	NET ASSETS		COST		VALUE


		China (concluded)
		Transportation		0.38%
	402,000	Anhui Expressway Co., Ltd.			$	244,612	$	305,948

		Web Portals & Internet Service Providers		0.88%
	9,415	Sohu.com, Inc.+				472,510		701,418

		Total China				7,606,334		10,865,514

		Hong Kong		19.35%
		Cellular Telecommunications		3.55%
	278,600	China Mobile, Ltd.				1,812,857		2,837,283

		Commercial Banks – Non-US		1.34%
	188,500	BOC Hong Kong (Holdings), Ltd.				503,107		590,863
	41,000	Wing Hang Bank, Ltd.				311,856		479,161

						814,963		1,070,024

		Diversified Operations		4.37%
	179,500	Beijing Enterprises Holdings, Ltd.				667,903		1,228,342
	842,000	Guangdong Investment, Ltd.				331,933		422,504
	95,381	Hutchison Whampoa, Ltd.				488,441		939,993
	118,000	Shanghai Industrial Holdings, Ltd.				478,331		543,400
	55,000	Wharf Holdings, Ltd.				124,197		361,119

						2,090,805		3,495,358

		Finance – Other Services		0.74%
	26,700	Hong Kong Exchanges & Clearing, Ltd.				220,654		587,570

		Life/Health Insurance		0.47%
	125,000	AIA Group, Ltd.+				320,037		371,664

		Oil Companies – Exploration & Production		1.75%
	408,000	CNOOC, Ltd.				654,096		845,231
	437,800	Kunlun Energy Co., Ltd.				131,421		556,829

						785,517		1,402,060

		Paper & Related Products		1.31%
	1,253,400	Lee & Man Paper Manufacturing, Ltd.				396,374		1,047,693

		Real Estate – Operations & Development		2.29%
	74,700	Cheung Kong Holdings, Ltd.				523,253		1,137,030
	1,333,000	Shanghai Industrial Urban Development Group, Ltd.+				474,497		691,235

						997,750		1,828,265

		Retail – Jewelry		0.53%
	174,000	Luk Fook Holdings (International), Ltd.				350,057		426,903

THE ASIA TIGERS FUND, INC.


Schedule of Investments (continued)	October 31, 2010


COMMON STOCKS (continued)
NUMBER			PERCENT OF
OF SHARES		SECURITY	NET ASSETS		COST		VALUE


		Hong Kong (concluded)
		Retail – Perfume & Cosmetics		0.28%
	248,000	Sa Sa International Holdings, Ltd.			$	201,476	$	226,813

		Retail – Restaurants		0.74%
	210,000	Cafe De Coral Holdings, Ltd.				159,601		590,534

		Telecommunications Equipment		0.92%
	71,000	VTech Holdings, Ltd.				297,036		738,639

		Transportation		1.06%
	221,500	MTR Corp., Ltd.				631,670		842,879

		Total Hong Kong				9,078,797		15,465,685

		India		11.28%
		Applications Software		1.32%
	15,741	Infosys Technologies, Ltd.				160,442		1,052,211

		Auto – Cars & Light Trucks		0.97%
	29,724	Tata Motors, Ltd.				509,402		775,768

		Commercial Banks – Non-US		1.66%
	154,595	United Bank of India, Ltd.				434,264		441,427
	109,106	Yes Bank, Ltd.				674,570		882,426

						1,108,834		1,323,853

		Commercial Vehicles		0.27%
	126,544	Ashok Leyland, Ltd.				160,368		215,203

		Finance		1.22%
	117,640	Rural Electrification Corp., Ltd.				573,971		978,722

		Finance – Other Services		1.20%
	44,605	Housing Development Finance Corp., Ltd.				458,453		690,035
	158,334	Magma Fincorp, Ltd.				281,778		269,622

						740,231		959,657

		Housewares		0.51%
	130,000	HSIL, Ltd.				397,819		410,557

		Independent Power Producer		0.75%
	416,383	Lanco Infratech, Ltd.+				548,870		596,105

		Oil Refining & Marketing		1.05%
	34,133	Reliance Industries, Ltd.				123,241		841,935

		Power Conversion & Supply Equipment		0.48%
	6,974	Bharat Heavy Electricals, Ltd.				100,479		383,935

THE ASIA TIGERS FUND, INC.


Schedule of Investments (continued)	October 31, 2010

COMMON STOCKS (continued)

NUMBER

PERCENT OF

OF SHARES

SECURITY

NET ASSETS

COST

VALUE

India (concluded)

Steel

0.25%

34,918

Welspun Corp., Ltd.

119,867

195,753

Tire & Rubber

0.99%

491,801

Apollo Tyres, Ltd.

359,584

792,085

Vehicle

0.61%

29,638

Mahindra & Mahindra, Ltd.

244,478

488,251

Total India

5,147,586

9,014,035

Indonesia

4.63%

Automobiles

1.02%

128,000

PT Astra International TBK

662,963

816,336

Building Products – Cement & Aggregation

0.94%

367,500

PT Indocement Tunggal Prakarsa TBK

552,494

752,475

Coal

1.21%

438,000

PT Tambang Batubara Bukit Asam TBK

261,073

962,987

Commercial Banks – Non-US

1.15%

719,000

PT Bank Rakyat Indonesia (Persero) TBK

290,345

917,102

Gas – Distribution

0.31%

549,500

PT Perusahaan Gas Negara

247,371

249,004

Total Indonesia

2,014,246

3,697,904

Malaysia

3.97%

Commercial Banks – Non-US

1.15%

345,800

CIMB Group Holdings BHD

215,926

921,318

Hotel/Restaurants

0.98%

232,900

Genting BHD

528,643

781,448

Internet

0.49%

1,341,400

Green Packet BHD+

409,708

388,000

Rubber & Vinyl

1.35%

612,500

Top Glove Corp. BHD

535,317

1,082,677

Total Malaysia

1,689,594

3,173,443

Singapore

10.57%

Agriculture Operations

0.83%

134,000

Wilmar International, Ltd.

261,274

662,623

THE ASIA TIGERS FUND, INC.


Schedule of Investments (continued)	October 31, 2010


COMMON STOCKS (continued)
NUMBER			PERCENT OF
OF SHARES		SECURITY	NET ASSETS		COST		VALUE


		Singapore (concluded)
		Commercial Banks – Non-US		2.04%
	133,000	Oversea-Chinese Banking Corp., Ltd.			$	871,654	$	925,887
	49,000	United Overseas Bank, Ltd.				571,308		705,706

						1,442,962		1,631,593

		Computers – Integrated Systems		0.82%
	800,000	CSE Global, Ltd.				504,203		655,206

		Diversified Operations		0.96%
	99,000	Keppel Corp., Ltd.				398,934		763,392

		Real Estate – Operations & Development		1.71%
	200,000	Global Logistic Properties, Ltd.+				303,237		358,509
	294,883	Keppel Land, Ltd.				250,354		1,009,335

						553,591		1,367,844

		REITS – Diversified		1.29%
	895,000	CapitaCommercial Trust				418,226		1,030,365

		Transport – Equipment & Leasing		0.05%
	28,000	Goodpack, Ltd.				39,904		44,134

		Transportation – Marine		1.47%
	866,400	Ezra Holdings, Ltd.				433,548		1,171,489

		Water Treatment Systems		1.40%
	460,000	Hyflux, Ltd.				839,014		1,119,567

		Total Singapore				4,891,656		8,446,213

		South Korea		19.50%
		Auto/Truck Parts & Equipment		1.64%
	4,517	Hyundai Mobis				705,628		1,123,981
	4,720	Kia Motors Corp.				182,668		188,339

						888,296		1,312,320

		Chemicals		1.77%
	4,599	LG Chem, Ltd.				186,949		1,418,221

		Consumer Staples		0.70%
	606	Amorepacific Corp.				457,526		560,089

		Diversified Financial Services		2.05%
	13,835	KB Financial Group, Inc.				254,239		614,752
	26,372	Shinhan Financial Group Co., Ltd.				355,720		1,020,663

						609,959		1,635,415

THE ASIA TIGERS FUND, INC.


Schedule of Investments (continued)	October 31, 2010


COMMON STOCKS (continued)
NUMBER			PERCENT OF
OF SHARES		SECURITY	NET ASSETS		COST		VALUE


		South Korea (concluded)
		Electric Products – Miscellaneous		0.73%
	6,598	LG Electronics, Inc.			$	612,910	$	581,081

		Electronic Components – Miscellaneous		0.54%
	12,636	LG Display Co., Ltd.				278,800		432,336

		Electronic Components – Semiconductors		3.90%
	4,708	Samsung Electronics Co., Ltd.				1,247,344		3,117,050

		Engineering/Research & Development Services		1.12%
	5,610	Samsung Engineering Co., Ltd.				541,860		894,908

		Non-Ferrous Metals		0.70%
	2,234	Korea Zinc Co., Ltd.				247,689		562,843

		Property & Casualty Insurance		0.87%
	4,070	Samsung Fire & Marine Insurance Co., Ltd.				738,343		698,076

		Retail – Major Department Stores		1.03%
	7,469	Hyundai Department Store Co., Ltd.				861,432		826,386

		Retail – Miscellaneous/Diversified		1.20%
	4,239	CJ O Shopping Co., Ltd.+				389,308		956,106

		Shipbuilding		1.30%
	1,225	Hyundai Heavy Industries Co., Ltd.				404,737		398,989
	22,830	Samsung Heavy Industries Co., Ltd.				345,178		640,112

						749,915		1,039,101

		Steel – Producers		1.21%
	2,355	POSCO				234,648		966,905

		Web Portals & Internet Service Providers		0.74%
	3,315	NHN Corp.+				328,843		587,729

		Total South Korea				8,373,822		15,588,566

		Sri Lanka		0.49%
		Diversified Operations		0.49%
	146,100	John Keells Holdings PLC				148,818		392,304

		Total Sri Lanka				148,818		392,304

		Taiwan		13.40%
		Building Products – Cement & Aggregation		0.57%
	426,000	Taiwan Cement Corp.				240,033		453,524

THE ASIA TIGERS FUND, INC.


Schedule of Investments (continued)	October 31, 2010


COMMON STOCKS (continued)
NUMBER			PERCENT OF
OF SHARES		SECURITY	NET ASSETS		COST		VALUE


		Taiwan (concluded)
		Computers		2.98%
	206,246	Acer, Inc.			$	424,564	$	598,771
	210,739	Advantech Co., Ltd.				264,645		575,340
	292,000	Chimei Innolux Corp.+				379,285		391,921
	400,753	Compal Electronics, Inc.				481,460		510,405
	148,000	Wistron Corp.				243,257		304,009

						1,793,211		2,380,446

		Diversified Financial Services		0.87%
	568,020	Fubon Financial Holding Co., Ltd.				321,527		695,614

		Electrical & Electronics		0.48%
	32,482	Young Fast Optoelectronics Co., Ltd.				380,400		381,873

		Electronic Components & Instruments		0.58%
	250,143	WPG Holdings Co., Ltd.				364,613		464,809

		Electronic Components – Miscellaneous		1.92%
	404,857	Hon Hai Precision Industry Co., Ltd.				569,483		1,533,674

		Electronic Components – Semiconductors		0.46%
	29,196	MediaTek, Inc.				290,517		367,077

		Metal Processors & Fabrication		0.36%
	107,000	Catcher Technology Co., Ltd.				247,663		284,784

		Power Conversion & Supply Equipment		1.07%
	206,659	Delta Electronics, Inc.				441,896		853,726

		Retail – Apparel/Shoe		0.47%
	261,000	Les Enphants Co., Ltd				400,227		378,866

		Semiconductor Equipment – Integrated Circuits		3.64%
	136,300	Powertech Technology, Inc.				309,318		449,563
	309,000	Siliconware Precision Industries Co.				300,617		338,047
	1,035,583	Taiwan Semiconductor Manufacturing Co., Ltd.				1,515,428		2,123,822

						2,125,363		2,911,432

		Total Taiwan				7,174,933		10,705,825

		Thailand		1.68%
		Building Products – Cement & Aggregation		0.31%
	23,600	Siam Cement PCL				254,646		248,753

		Commercial Banks – Non-US		1.12%
	180,000	Bangkok Bank PCL				928,356		894,596

THE ASIA TIGERS FUND, INC.


Schedule of Investments (continued)	October 31, 2010

COMMON STOCKS (concluded)

NUMBER

PERCENT OF

OF SHARES

SECURITY

NET ASSETS

COST

VALUE

Thailand (concluded)

Real Estate – Operations & Development

0.25%

507,700

L.P.N. Development PCL

201,053

196,442

Total Thailand

1,384,055

1,339,791

United Kingdom

0.64%

Diversified Financial Services

0.64%

9,775

HSBC Holdings PLC-ADR

394,522

509,375

Total United Kingdom

394,522

509,375

TOTAL COMMON STOCKS

47,904,363

79,198,655

REPURCHASE AGREEMENT (0.50% of net assets)

PRINCIPAL

PERCENT OF

AMOUNT

SECURITY

NET ASSETS

COST

VALUE

United States

0.50%

395,330

State Street Bank, 0.01% dated 10/29/10, due 11/01/10 proceeds at maturity $395,330 (Collateralized by $375,000 U.S. Treasury Bond, 2.5%, due 04/30/15, Market Value $404,158)

395,330

Total United States

395,330

TOTAL REPURCHASE AGREEMENT

395,330

TOTAL INVESTMENTS++

99.60%

48,299,693

79,593,985

OTHER ASSETS IN EXCESS OF LIABILITIES

0.40%

321,649

NET ASSETS

100.00%

79,915,634

THE ASIA TIGERS FUND, INC.


Schedule of Investments (concluded)	October 31, 2010

This Schedule of Investments reflects each company’s country of domicile. The companies may also be subject to the risks of other countries.

Footnotes and Abbreviations


ADR		American Depository Receipts.
+		Non-Income producing security.
++		As of October 31, 2010, the aggregate cost for federal income tax purposes was $49,525,025 The aggregate gross unrealized appreciation (depreciation) for all securities were as follows:


Excess of value over tax cost	$	30,748,285
Excess of tax cost over value		(679,325	)

	$	30,068,960

These temporary differences in book and tax cost are due to wash sale loss deferrals and cumulative mark to market of passive foreign investment companies.

See accompanying notes to financial statements.

THE ASIA TIGERS FUND, INC.

October 31, 2010

Statement of Assets and Liabilities


ASSETS
Investments, at value (cost $48,299,693)	$	79,593,985
Cash (including $516,765 of foreign currency holdings with a cost of $514,042)		516,848
Receivables:
Securities sold		1,046,306
Tax Refund		15,745
Dividends		24,729
Prepaid expenses		8,584

Total Assets		81,206,197

LIABILITIES
Payables for securities purchased		767,503
Payable Foreign Tax		160,980
Accrued Legal Fees		124,884
Accrued Audit Fees		100,633
Due to Investment Manager		68,662
Due to Administrator		13,732
Accrued expenses		54,169

Total Liabilities		1,290,563

Net Assets	$	79,915,634

NET ASSET VALUE PER SHARE ($79,915,634 / 3,557,122 shares issued and outstanding)	$	22.47



NET ASSETS CONSIST OF:
Capital stock, $0.001 par value; 20,514,984 shares issued (100,000,000 shares authorized)	$	20,515
Paid-in capital		217,100,899
Cost of 16,957,862 shares repurchased		(178,352,438	)
Accumulated net investment loss		(684,117	)
Accumulated net realized gain on investments		10,692,787
Net unrealized appreciation in value of investments and on translation of other assets and liabilities denominated in foreign currencies (net of deferred foreign withholding taxes of $161,007)		31,137,988

	$	79,915,634

See accompanying notes to financial statements.

THE ASIA TIGERS FUND, INC.

Statement of Operations

For the Year Ended October 31, 2010


Investment Income
Dividends (net of taxes withheld of $178,674)		$	1,642,041
Interest			214

Total Investment Income			1,642,255

Expenses
Management fees	745,338
Administration fees	149,068
Custodian fees	147,197
Legal fees	136,245
Professional fees	128,461
Insurance	122,919
Printing	101,587
Directors’ fees	40,400
Transfer agent fees	26,572
NYSE fees	24,377
Tax expense	6,150
ICI fees	3,047
Miscellaneous	37,766

Total Expenses			1,669,127

Net Investment Loss			(26,872	)

Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency Holdings and Translation of Other Assets and Liabilities Denominated in Foreign Currencies:
Net realized gain (loss) from:
Security transactions (net of capital gains tax of $290,099 and refund of prior year capital gains tax paid of $15,437)			11,468,713
Foreign currency related transactions			(34,758	)

			11,433,955
Net change in unrealized appreciation in value of investments, foreign currency holdings and translation of other assets and liabilities denominated in foreign currencies (net of decrease in deferred foreign withholding taxes of $203,941)			2,794,915

Net realized and unrealized gain on investments, foreign currency holdings and translation of other assets and liabilities denominated in foreign currencies			14,228,870

Net increase in net assets resulting from operations		$	14,201,998

See accompanying notes to financial statements.

THE ASIA TIGERS FUND, INC.

Statements of Changes in Net Assets


	For the Year			For the Year
	Ended			Ended
	October 31, 2010			October 31, 2009

INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment loss	$	(26,872	)	$	(164,082	)
Net realized gain on investments and foreign currency related transactions		11,433,955			1,600,563
Net change in unrealized appreciation in value of investments, foreign currency holdings and translation of other assets and liabilities denominated in foreign currencies		2,794,915			29,651,464

Net increase in net assets resulting from operations		14,201,998			31,087,945

Distribution to shareholders
Dividends in excess of net investment income and net realized capital gains ($0.18 per share and $0.00 per share, respectively)		(686,051	)		—
Long term capital gains ($0.34 and $1.98 per share, respectively)		(1,295,874	)		(8,361,839	)

Decrease in net assets resulting from distributions		(1,981,925	)		(8,361,839	)

Capital Share Transactions
Shares repurchased under Repurchase Offers (254,271 and 411,758 shares, respectively) (net of repurchase fees of $101,436 and $114,687 respectively) (including expenses of $131,917 and $141,275 respectively)		(5,102,274	)		(5,760,899	)

Net decrease in net assets resulting from capital share transactions		(5,102,274	)		(5,760,899	)

Total increase in net assets		7,117,799			16,965,207

NET ASSETS
Beginning of period		72,797,835			55,832,628

End of period	$	79,915,634		$	72,797,835

See accompanying notes to financial statements.

THE ASIA TIGERS FUND, INC.

Financial Highlights

For a Share Outstanding throughout Each Period


	For the Year			For the Year			For the Year			For the Year			For the Year
	Ended			Ended			Ended			Ended			Ended
	Oct. 31, 2010			Oct. 31, 2009			Oct. 31, 2008			Oct. 31, 2007			Oct. 31, 2006


Per Share Operating Performance
Net asset value, beginning of period	$	19.10		$	13.22		$	35.69		$	19.21		$	13.44

Net investment income (loss)¹		(0.01	)		(0.04	)		—			(0.06	)		—
Net realized and unrealized gains (losses) on investments, foreign currency holdings, and translation of other assets and liabilities denominated in foreign currencies²		3.92			7.91			(21.96	)		16.53			5.77

Net increase (decrease) from investment operations		3.91			7.87			(21.96	)		16.47			5.77

Less dividends and distributions:
Dividends in excess of net investment income and net realized capital gains		(0.18	)		—			—			—			—

Distributions from net capital gains		(0.34	)		(1.98	)		(0.52	)		—			—

Total dividends and distributions		(0.52	)		(1.98	)		(0.52	)		—			—

Capital share transactions
Anti-dilutive (dilutive) effect of Repurchase Offer		(0.02	)		(0.01	)		0.01			0.01			—

Total capital share transactions		(0.02	)		(0.01	)		0.01			0.01			—

Net asset value, end of period	$	22.47		$	19.10		$	13.22		$	35.69		$	19.21

Per share market value, end of period	$	21.80		$	18.00		$	11.97		$	32.86		$	18.55

Total Investment Return³
Based on Market Value		24.27	%		79.14	%		(62.86	)%		77.14	%		43.69	%

Ratios/Supplemental Data:
Net assets, end of period (in 000s)	$	79,916		$	72,798		$	55,833		$	167,017		$	95,000
Ratios of expenses to average net assets		2.24	%		2.76	%		1.99	%		1.90	%		2.20	%
Ratios of net investment income (loss) to average net assets		(0.04	)%		(0.28	)%		0.01	%		(0.24	)%		—⁴
Portfolio turnover		51.73	%		69.25	%		82.83	%		31.53	%		36.44	%

See page 18 for footnotes.

See accompanying notes to financial statements.

THE ASIA TIGERS FUND, INC.

Financial Highlights (concluded)

For a Share Outstanding throughout Each Period


¹		Based on average shares outstanding throughout the period.
²		Net of deferred foreign withholding taxes of $0.07, $0.01, $0.03, $0.02, and $0.01, per share for the years ended October 31, 2010, October 31, 2009, October 31, 2008, October 31, 2007, and October 31, 2006, respectively.
³		Total investment return is calculated assuming a purchase of common stock at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Fund’s dividend reinvestment plan. Total investment return does not reflect brokerage commissions or sales charges. Past performance is not a guarantee of future results.
⁴		Less than 0.01%.

See accompanying notes to financial statements.

THE ASIA TIGERS FUND, INC.


Notes to Financial Statements	October 31, 2010

NOTE A: ORGANIZATION

The Asia Tigers Fund, Inc. (the “Fund”) was incorporated in Maryland on September 23, 1993 and commenced operations on November 29, 1993. The Fund is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a non-diversified closed-end management investment company. The Fund’s investment objective is long-term capital appreciation, which it seeks to achieve by investing primarily in equity securities of Asian companies.

NOTE B: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The following significant accounting policies are in conformity with generally accepted accounting principles in the United States of America (“GAAP”), which are consistently followed by the Fund in the preparation of its financial statements.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reported period. Actual results could differ from those estimates and those differences could be significant.

Significant accounting policies are as follows:

Portfolio Valuation. Investments are stated at estimated fair value in the accompanying financial statements. All securities for which market quotations are readily available are valued at:


	(i)	the last sales price prior to the time of determination if there was a sale on the date of determination,

	(ii)	the mean between the last current bid and asked prices, if there was no sales price on such date and bid and asked quotations are available, or

	(iii)	the last available closing price if no bid or asked price is available on such date, if deemed representative of fair value.

Securities that are traded over-the-counter are valued, if bid and asked quotations are available, at the mean between the current bid and asked prices. Securities for which sales prices and bid and asked quotations are not available on the date of determination or for which the spread between the bid and asked prices is considered excessive may be valued at the most recently available prices or quotations under policies adopted by the Board of Directors. Investments in short-term debt securities having a maturity of 60 days or less are generally valued at amortized cost which approximates market value. Securities for which market values are not readily ascertainable are carried at fair value as determined in good faith by or under the supervision of the Board of Directors. The net asset value per share of the Fund is calculated daily.

THE ASIA TIGERS FUND, INC.


Notes to Financial Statements (continued)	October 31, 2010

Repurchase Agreements. The Fund may enter into repurchase agreements, whereby securities are purchased from a counterparty under an agreement to resell them at a future date at the same price plus accrued interest. The Fund is exposed to credit risk on repurchase agreements to the extent that the counterparty defaults on its obligation to repurchase the securities, and the market value of such securities held by the Fund, including any accrued interest or dividends on such securities, is less than the face amount of the repurchase agreement plus accrued interest.

Investment Transactions and Investment Income. Investment transactions are accounted for on the trade date. The cost of investments sold is determined by use of the specific identification method for both financial reporting and income tax purposes. Interest income is recorded on an accrual basis; dividend income is recorded on the ex-dividend date. The collectibility of income receivable from foreign securities is evaluated periodically, and any resulting allowances for uncollectible amounts are reflected currently in the determination of investment income.

Tax Status. No provision is made for U.S. federal income or excise taxes as it is the Fund’s intention to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended, and to make the requisite distributions to its stockholders which will be sufficient to relieve it from all or substantially all Federal income and excise taxes.

Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.

The tax character of distributions paid during the years ended October 31, 2010 and October 31, 2009 were as follows:


	Fiscal		Fiscal
	Year Ended		Year Ended
	October 31, 2010		October 31, 2009

Ordinary income	$	686,051	$	0
Long-term capital gain		1,295,874		8,361,839

Total	$	1,981,925	$	8,361,839

Dividends from net investment income and short-term capital gains are treated as ordinary income dividends for federal income tax purposes.

At October 31, 2010, the Fund had tax basis undistributed ordinary income of $3,594,321 and long-term capital gains of $7,639,681.

During the year ended October 31, 2010, the Fund decreased accumulated net investment loss and accumulated net realized gain by $87,332. These reclassifications were the result of permanent tax

THE ASIA TIGERS FUND, INC.


Notes to Financial Statements (continued)	October 31, 2010

differences relating to foreign currency losses, capital gains taxes and investments in passive foreign investment companies. Net assets were not affected by these reclassifications.

Dividend and interest income from non-U.S. sources received by the Fund are generally subject to non-U.S. withholding taxes. In addition, the Fund may be subject to capital gains tax in certain countries in which it invests. The above taxes may be reduced or eliminated under the terms of applicable U.S. income tax treaties with some of these countries. The Fund accrues such taxes when the related income is earned.

Accounting for Uncertainty in Income Taxes sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. Management has analyzed the Fund’s tax positions and has concluded that no provision for income tax is required in the Fund’s financial statements. The Fund is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. At October 31, 2010, the Fund has recorded no liability relating to uncertain income tax positions it has taken or expects to take in future tax returns. However, management’s conclusions regarding the adoption of Accounting for Uncertainty in Income Taxes may be subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance from the FASB, new tax laws, regulations and administrative interpretations (including court decisions).

Foreign Currency Translation. The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:


	(i)	value of investment securities, assets and liabilities at the current rates of exchange on the valuation date; and

	(ii)	purchases and sales of investment securities, income and expenses at the relevant rates of exchange prevailing on the respective dates of such transactions.

The Fund generally does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of securities. However, the Fund does isolate the effect of fluctuations in foreign currency rates when determining the gain or loss upon the sale of foreign currency denominated debt obligations pursuant to U.S. federal income tax regulations; such amounts are categorized as foreign currency gains or losses for federal income tax purposes. The Fund reports certain realized foreign exchange gains and losses as components of realized gains and losses for financial reporting purposes, whereas such amounts are treated as ordinary income for U.S. federal income tax reporting purposes.

Securities denominated in currencies other than U.S. dollars are subject to changes in value due to fluctuations in foreign exchange rates. Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin as a result of, among other

THE ASIA TIGERS FUND, INC.


Notes to Financial Statements (continued)	October 31, 2010

factors, the level of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability, as well as the fact that foreign securities markets may be smaller and have less developed and less reliable settlement and share registration procedures.

Distribution of Income and Gains. The Fund intends to distribute annually to stockholders substantially all of its net investment income, including foreign currency gains, and to distribute annually any net realized gains after the utilization of available capital loss carryovers. An additional distribution may be made to the extent necessary to avoid payment of a federal excise tax.

Distributions to stockholders are recorded on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized gains are determined in accordance with federal income tax regulations, which may differ from GAAP. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified at the end of each fiscal year within the capital accounts based on their federal tax-basis treatment; temporary differences do not require reclassification. Dividends and distributions which exceed net investment income and net realized capital gains for financial reporting purposes but not for tax purposes are reported as dividends in excess of net investment income and net realized capital gains. To the extent they exceed net investment income and net realized gains for tax purposes, they are reported as distributions of additional paid-in capital.

NOTE C: MANAGEMENT, INVESTMENT ADVISORY, ADMINISTRATIVE SERVICES AND DIRECTORS

Blackstone Asia Advisors L.L.C. (“Blackstone Advisors”), an affiliate of The Blackstone Group L.P., serves as the Fund’s Investment Manager under the terms of a management agreement dated February 24, 2006 (the “Management Agreement”). Pursuant to the Management Agreement, Blackstone Advisors supervises the Fund’s investment program and is responsible on a day-to-day basis for investing the Fund’s portfolio in accordance with its investment objective and policies. For its services, Blackstone Advisors receives monthly fees at an annual rate of: (i) 1.00% for the first $500,000,000 of the Fund’s average weekly net assets; (ii) 0.95% for the next $500,000,000 of the Fund’s average weekly net assets; and (iii) 0.90% of the Fund’s average weekly net assets in excess of $1,000,000,000. For the year ended October 31, 2010, the Fund incurred a total of $745,338 in management fees to Blackstone Advisors.

Blackstone Advisors also serves as the Fund’s Administrator pursuant to an administration agreement dated January 1, 2006. Blackstone Advisors provides certain administrative services to the Fund. For its services, Blackstone Advisors receives a fee that is computed monthly and paid quarterly at an annual rate of: (i) 0.20% of the value of the Fund’s average monthly net assets for the first $1,500,000,000 of the Fund’s average monthly net assets and (ii) 0.15% of the value of the Fund’s average monthly net assets in excess of $1,500,000,000 of the Fund’s average monthly net assets. For the year ended October 31, 2010, the Fund incurred $149,068 in administrative fees to Blackstone Advisors. Prior to July 1, 2010, Blackstone

THE ASIA TIGERS FUND, INC.


Notes to Financial Statements (continued)	October 31, 2010

Advisors subcontracted certain of these services to PNC Global Investment Servicing (U.S.) Inc. On July 1, 2010, The PNC Financial Services Group, Inc. sold the outstanding stock of PNC Global Investment Servicing Inc. to The Bank of New York Mellon Corporation. At the closing of the sale PNC Global Investment servicing (U.S.) Inc. changed its name to BNY Mellon Investment Servicing (US) Inc. BNY Mellon Investment Servicing (US) Inc. serves as Sub-Administrator to the Fund.

The Fund pays each of its Directors who is not a director, officer or employee of the Investment Manager or any affiliate thereof an annual fee of $5,000 plus $1,000 for each in-person Board of Directors meeting and $250 for each telephonic Board of Directors meeting attended. The Chairman of the Board also receives an annual fee of $2,500. In addition, the Fund reimburses all Directors for travel and out-of-pocket expenses incurred in connection with Board of Directors meetings. For the year ended October 31, 2010, the Fund incurred $40,400 in Directors’ fees.

NOTE D: PORTFOLIO ACTIVITY

Aggregate purchases and sales of securities other than short-term obligations totaled $37,473,724 and $44,063,325 respectively, for the year ended October 31, 2010.

NOTE E: SEMI-ANNUAL REPURCHASE OFFERS

In January 2002, the Board of Directors approved, subject to stockholder approval, a fundamental policy whereby the Fund would adopt an “interval fund” structure pursuant to Rule 23c-3 under the 1940 Act. Stockholders of the Fund subsequently approved the policy at the Special Meeting of Stockholders held on April 26, 2002. As an interval fund, the Fund makes periodic repurchase offers at net asset value (less a 2% repurchase fee) to all Fund stockholders. The percentage of outstanding shares that the Fund can repurchase in each offer will be established by the Fund’s Board of Directors shortly before the commencement of each offer, and will be between 5% and 25% of the Fund’s then outstanding shares.

Under the Fund’s original policy, the Fund conducted quarterly repurchase offers. This policy was amended at the February 23, 2007 Annual Meeting of Stockholders to provide that the Fund will from that date forward conduct repurchase offers on a semi-annual, rather than on a quarterly, basis.

THE ASIA TIGERS FUND, INC.


Notes to Financial Statements (continued)	October 31, 2010

During the year ended October 31, 2010, the results of the periodic repurchase offers were as follows:


	Repurchase	Repurchase
	Offer #23	Offer #24
Commencement Date	December 24, 2009	June 25, 2010

Expiration Date	January 15, 2010	July 16, 2010

Repurchase Offer Date	January 22, 2010	July 23, 2010

% of Issued and Outstanding Shares of Common Stock	5%	5%

Shares Validly Tendered	89,066.9123	165,203.6738

Final Pro-ration Odd Lot Shares	no proration	no proration

Final Pro-ration Non-Odd Lot Shares	no proration	no proration

% of Non-Odd Lot Shares Accepted	no proration	no proration

Shares Accepted for Tender	89,066.9123	165,203.6738

Net Asset Value as of Repurchase Offer Date ($)	19.81	20.02

Repurchase Fee per Share ($)	0.3962	0.4004

Repurchase Offer Price ($)	19.4138	19.6196

Repurchase Fee ($)	35,288	66,148

Expenses ($)	66,367	65,550

Total Cost ($)	1,795,494	3,306,780

During the year ended October 31, 2009, the results of the periodic repurchase offers were as follows:


	Repurchase	Repurchase
	Offer #21	Offer #22
Commencement Date	December 26, 2008	June 26, 2009

Expiration Date	January 16, 2009	July 17, 2009

Repurchase Offer Date	January 23, 2009	July 24, 2009

% of Issued and Outstanding Shares of Common Stock	5%	5%

Shares Validly Tendered	517,106.0144	242,987.0000

Final Pro-ration Odd Lot Shares	18,258.0144	33,635.0000

Final Pro-ration Non-Odd Lot Shares	192,899.9856	166,965.0000

% of Non-Odd Lot Shares Accepted	38.6691%	79.7532%

Shares Accepted for Tender	211,158	200,600

Net Asset Value as of Repurchase Offer Date ($)	10.56	17.47

Repurchase Fee per Share ($)	0.2112	0.3494

Repurchase Offer Price ($)	10.3488	17.1206

Repurchase Fee ($)	44,597	70,090

Expenses ($)	71,477	69,798

Total Cost ($)	2,256,709	3,504,190

THE ASIA TIGERS FUND, INC.


Notes to Financial Statements (continued)	October 31, 2010

NOTE F: CONCENTRATION OF RISKS

At October 31, 2010, substantially all of the Fund’s assets were invested in Asian securities. The Asian securities markets are, among other things, substantially smaller, less developed, less liquid and more volatile than the major securities markets in the United States. Consequently, acquisitions and dispositions of Asian securities involve special risks and considerations not present with respect to U.S. securities.

Securities denominated in currencies other than U.S. dollars are subject to changes in value due to fluctuations in foreign exchange. Foreign security and currency transactions involve certain considerations and risks not typically associated with those of domestic origin as a result of, among other factors, the level of governmental supervision and regulation of foreign securities markets and the possibilities of political or economic instability, the fact that foreign securities markets may be smaller and less developed and the fact that securities, tax and corporate laws may have only recently developed or are in developing stages, and laws may not exist to cover all contingencies or to protect investors adequately.

In the normal course of business, the Fund may enter into contracts that contain a variety of representations and warranties which may provide for general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, based on experience, management expects the risk of loss to be remote.

NOTE G: FAIR VALUE MEASUREMENTS

In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The hierarchy gives the highest priority to valuations based upon unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to valuations based upon unobservable inputs that are significant to the valuation (level 3 measurements). The guidance establishes three levels of the fair value hierarchy as follows:


	•	Level 1 – price quotations in active markets/exchanges for identical securities

	•	Level 2 – other significant observable inputs (including, but not limited to quoted prices for similar securities, interest rates, credit risk, etc.)

	•	Level 3 – significant unobservable inputs (including the Fund’s own assumptions used in determining the fair value of investments).

A financial instrument’s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes “observable” requires significant judgment by the Investment Manager. The Investment Manager considers observable

THE ASIA TIGERS FUND, INC.


Notes to Financial Statements (concluded)	October 31, 2010

data to be market data which 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 inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. A summary of the inputs used to value the Fund’s net assets as of October 31, 2010, is as follows:


	Investments in
Valuation Inputs	Securities*

Level 1 – Quoted Prices	$	79,198,655
Level 2 – Other Significant Observable Inputs		395,330
Level 3 – Significant Unobservable Inputs		0

Total	$	79,593,985

The Fund held no Level 3 securities on October 31, 2010.


*	See Schedule of Investments for identification of securities by security type and industry classification.

NOTE H: FINANCIAL DERIVATIVE INSTRUMENTS

Effective January 1, 2009, the Fund adopted amendments to authoritative guidance on disclosures about derivative instruments and hedging activities which require that the Fund disclose a) how and why an entity uses derivative instruments, b) how derivative instruments and related hedged items are accounted for, and c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows. The adoption of the additional disclosure requirements did not materially impact the Fund’s financial statements. At October 31, 2010, the Fund held no derivative instruments.

NOTE I: SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund following the year ended October 31, 2010, and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.

THE ASIA TIGERS FUND, INC.

Report of Independent Registered
Public Accounting Firm

To the Board of Directors and Shareholders of

The Asia Tigers Fund, Inc.

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of The Asia Tigers Fund, Inc. (the “Fund”) at October 31, 2010, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Fund’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

PricewaterhouseCoopers LLP

Philadelphia, Pennsylvania

December 17, 2010

THE ASIA TIGERS FUND, INC.

The following sections of this Annual Report are not a part of the audited financial statements.

Continuation of the Management Agreement

Approval of Continuation of Management Agreement

The Investment Company Act of 1940, as amended (the “1940 Act”), requires that the Fund’s Board of Directors, including a majority of its Directors who are not affiliated with the Fund’s investment adviser (the “Independent Directors”) voting separately, approve the Fund’s advisory agreement and the related fees for its initial term of two years and on an annual basis thereafter at a meeting called for the purpose of voting on the agreement’s approval or continuation. At a meeting held in person on October 26, 2010, the Board, including the Independent Directors, considered the continuation of the management agreement (the “Management Agreement”) dated February 24, 2006 between the Fund and Blackstone Asia Advisors L.L.C. (“Blackstone Advisors”). At the meeting, the Board, including the Independent Directors, unanimously approved the continuation of the Management Agreement for an additional one-year term through December 31, 2011. In making this decision, the Independent Directors were represented by independent counsel (“independent counsel”) who assisted them in their deliberations prior to and during the Board meeting and in an executive session with just the Independent Directors and their independent counsel present. The Board of Directors also approved the continuation of the administration agreement dated January 1, 2006 between the Fund and Blackstone Advisors, pursuant to which Blackstone Advisors serves as the Fund’s administrator.

In considering the continuation of the Management Agreement, the Independent Directors, through their independent counsel, requested and received information from Blackstone Advisors, which included, among other things, information about Blackstone Advisors’ business, personnel and operations, services, compensation from and other benefits from its relation with the Fund, compliance activities and other accounts managed by Blackstone Advisors. The materials provided by Blackstone Advisors also included information regarding the Fund’s investment performance and expenses compared to those of other funds with investment objectives and policies similar to those of the Fund and to the Fund’s comparative index as well as an analysis of the profitability of the investment advisory relationship to Blackstone Advisors. Fund counsel provided the Board a memorandum outlining its legal duties. Independent counsel provided a memorandum to the Independent Directors outlining their responsibilities with respect to approval of the Management Agreement. This information supplemented the information received by the Board at meetings throughout the past year and the Directors’ general knowledge and familiarity with the Fund, including their knowledge and

THE ASIA TIGERS FUND, INC.

Continuation of the Management Agreement (continued)

familiarity with the investment management capabilities of Blackstone Advisors and the scope and quality of its services to the Fund.

In considering the continuation of the Management Agreement, the Board considered the following factors, among others:

1. The qualifications of Blackstone Advisors, including the nature, extent and quality of the services to be provided and the investment performance of the Fund and Blackstone Advisors. The Directors reviewed the services that Blackstone Advisors provides to the Fund, including, but not limited to, making the day-to-day decisions for investing the Fund’s assets in accordance with the Fund’s objectives and policies and investment restrictions, subject to the supervision and direction of the Board. Blackstone Advisors also makes available research and statistical data to the Fund and monitors the performance of the Fund’s outside service providers, including the Fund’s sub-administrator, transfer agent and custodian.

In addition, the Directors considered the education, background and experience of the personnel and management teams at Blackstone Advisors, and in particular, the performance record of Punita Kumar-Sinha, the Fund’s senior portfolio manager and Chief Investment Officer. The Board also considered the experience and performance record of the Fund’s associate portfolio Manager, Greg Miller. Among other things, they took into consideration the favorable history of Ms. Kumar-Sinha and Mr. Miller for the Fund. The Directors also discussed at length Blackstone Advisors’ employee compensation and budget structure and its ability to retain quality and experienced personnel. They discussed at length the nature, extent and quality of the support provided by Blackstone Advisors and its affiliates to the Fund. Blackstone Advisors presented preliminary information at the meeting regarding tentative future proposals for delivery of services to the Fund. The Directors also discussed Blackstone Advisors’ investment outlook for the Fund and relevant financial and capital markets.

The Directors reviewed the past investment performance of the Fund and Blackstone Advisors as well as the past investment performance of the Fund’s peers. In particular, the Directors focused on the analysis of the Fund’s performance in the materials provided by Blackstone Advisors, noting that while the Fund’s recent performance was not as strong as it had been, the Fund’s performance was comparable to that of its peer group, and that the Fund outperformed its benchmark, the MSCI AC Asia Free Ex-Japan Price Index, over the one-year and five-year periods ended September 30, 2010, as well as over the period commencing on June 30, 1999, the date Ms. Kumar-Sinha became the Fund’s portfolio manager, and ended September 30, 2010. Further, the Fund’s performance was strong over each of those periods in absolute terms. For the three-year period ended September 30, 2010, the Fund lost slightly less than its benchmark. The Directors

THE ASIA TIGERS FUND, INC.

Continuation of the Management Agreement (continued)

recognized that past performance is not an indicator of future performance, but concluded that Blackstone Advisors has appropriate expertise to continue to manage the Fund in accordance with its investment objectives and strategies under current and anticipated market conditions.

2. The reasonableness of the advisory fees. The Directors considered the costs of the services provided by Blackstone Advisors. As part of their analysis, the Directors gave substantial consideration to the comparisons of fees and expense ratios of the Fund as described in the materials provided by Blackstone Advisors. Under the Management Agreement, the Fund pays to Blackstone Advisors a monthly fee at an annual rate of: (i) 1.00% of the Fund’s average weekly net assets for the first $500,000,000; (ii) 0.95% of the Fund’s average weekly net assets for the next $500,000,000; and (iii) 0.90% of the Fund’ average weekly net assets in excess of $1,000,000,000.

In reviewing the investment advisory fees, the Directors reviewed the advisory fee and noted that the Fund’s fee is equal to or higher than those of the funds in its peer group. The Directors also noted that the Fund on a twelve month trailing basis through December 31, 2009 had the highest expense ratio among the funds in its peer group, in part reflecting its small size. The Directors considered the other benefits to Blackstone Advisors and its affiliates from the relationship with the Fund, including, among others, the administration fees paid to Blackstone Advisors. Further, the Directors considered the extent to which Blackstone Advisors believes economies of scale may be realized if the Fund grows and whether the fee levels reflect economies of scale for the benefit of the Fund’s stockholders, noting that the fee structure would have the effect of lowering the Fund’s fees paid at certain asset levels. The Board notes that the Fund, which is required to make periodic redemptions of its shares, has not grown in recent years. The Board determined that the current amount and structure of the fee is appropriate in light of the nature, quality and scope of the investment advisory services provided by Blackstone Advisors to the Fund.

3. The operating expenses of the Fund. The Directors reviewed the operating expenses of the Fund, on an absolute basis and as compared to those of its peer group. The Directors noted that, as described in the materials provided by Blackstone Advisors, the estimated annualized expense ratio had decreased in 2010 as compared to 2009. The Directors concluded that the expenses of the Fund have been reasonable under the circumstances.

4. Portfolio transactions. The Directors discussed the policies and practices of the Fund and Blackstone Advisors in effecting portfolio transactions. The Directors considered the Fund’s general policies with respect to brokerage commissions, including payment levels, allocation policies among clients and use of soft dollars, as described in the materials provided by Blackstone

THE ASIA TIGERS FUND, INC.

Continuation of the Management Agreement (continued)

Advisors, and discussed whether the transactions were carried out competently and within the scope of applicable governmental and Fund policy limitations. The Directors also discussed transactions with affiliates, portfolio turnover rates, the recapture of brokerage commissions and the consideration of research services in placing portfolio transactions. The Directors took into consideration other benefits derived by Blackstone Advisors in connection with the Management Agreement, noting particularly that Blackstone Advisors does not use soft dollars in connection with portfolio transactions for the Fund. Although it may receive unsolicited proprietary research reports from brokers that execute transactions for the Fund, Blackstone Advisors advised the Board that brokers are not selected based on this research.

5. Blackstone Advisors’ management of other funds and other investments and fees paid. The Directors discussed Blackstone Advisors’ management of other funds and other investment products and the fees paid in those instances, noting that Blackstone Advisors managed one other registered fund and one unregistered fund, each of which invest in Asia. The Directors compared both the services rendered and the fees paid under the Management Agreement to the services rendered and fees paid by the other funds, and the Directors determined that the services and fees are comparable to those being offered to the other funds by Blackstone Advisors. The Directors requested information regarding a comparison of investment advisory fees paid under the Management Agreement to investment advisory fees paid to Blackstone Advisors and its affiliates by institutional accounts with investment objectives comparable to those of the Fund and were advised that Blackstone Advisors and its affiliates do not manage any such accounts.

6. The profitability of Blackstone Advisors and its affiliates with respect to their relationship to the Fund. The Directors reviewed information regarding the profitability to Blackstone Advisors of its relationship with the Fund. The profitability analysis took into consideration fall-out benefits from Blackstone Advisors’ relationship with the Fund, including fees paid to Blackstone Advisors under the Management Agreement and under the Administration Agreement. The information provided to the Board indicated that, at the Fund’s current asset level, Blackstone Advisors’ relationship with the Fund is not profitable.

In considering whether to approve the continuation of the Management Agreement, the Board did not identify nor was any single factor determinative to the decision of the Board. The Board also separately considered the operational, administrative and other services provided to the Fund under the Administration Agreement between the Fund and Blackstone Advisors. The Independent Directors were satisfied with the services provided by Blackstone Advisors to the Fund and with the Fund’s investment performance and expense levels (including the advisory fees). On that basis, the Independent Directors determined that the continuation of the Management Agreement was in the best interests of the Fund and its stockholders.

THE ASIA TIGERS FUND, INC.

Annual Chief Executive Officer and Chief

Financial Officer Certifications

The Fund’s Chief Executive Officer has submitted to the New York Stock Exchange the required annual certification, and the Fund has included the certifications of its Chief Executive Officer and Chief Financial Officer required by Section 302 and Section 906 of the Sarbanes-Oxley Act in the Fund’s Form N-CSR filed with the Securities and Exchange Commission for the period of this report.

THE ASIA TIGERS FUND, INC.

Information about Directors and Officers

(unaudited)

The business and affairs of The Asia Tigers Fund, Inc. (the “Fund”) are managed under the direction of the Board of Directors. Information pertaining to the Directors and executive officers of the Fund is set forth below.


				Number of
				Portfolios
				in Fund
				Complex
		Term of		Overseen by	Other
		Office and	Principal	Director	Trusteeships/
	Position(s) Held	Length of	Occupation(s)	(including	Directorships
Name, Address and Age	with Fund¹	Time Served¹	During Past 5 Years	the Fund)	Held by Director

DISINTERESTED DIRECTORS

Lawrence K. Becker 8039 Harbor View Terrace Brooklyn, NY 11209 Birth Year: 1955	Director and Member of the Audit and Nominating Committees, Class III	Since 2003	Private Investor, Real Estate Investment Management (July 2003-Present); Vice President – Controller/Treasurer, National Financial Partners (2000-2003); Managing Director – Controller/Treasurer, Oppenheimer Capital – PIMCO (1981-2000)	2	Member of Board of Trustees or Board of Managers of four registered investment companies advised by Advantage Advisers L.L.C. or its affiliates (“Advantage”)


Leslie H. Gelb The Council on Foreign Relations 58 East 68^th Street New York, NY 10021 Birth Year: 1937	Director and Member of the Audit and Nominating Committees, Class I	Since 1994	President Emeritus, The Council on Foreign Relations (2003-Present); President, The Council on Foreign Relations (1993-2003); Columnist (1991-1993), Deputy Editorial Page Editor (1985-1990) and Editor, Op-Ed Page (1988-1990), The New York Times	2	Britannica.com; Director of 22 registered investment companies advised by Legg Mason Partners Fund Advisor, LLC (“LMPFA”) and its affiliates


Luis F. Rubio Jaime Balmes No. 11, D-2 Los Morales Polanco Mexico, D.F. 11510 Birth Year: 1955	Director and Member of the Audit and Nominating Committees, Class I	Since 1999	President, Centro de Investigacion para el Desarrollo, A.C. (Center of Research for Development) (2002-Present); Director General, Centro de Investigacion para el Desarrollo, A.C. (Center of Research for Development) (1984-2002); frequent contributor of op-ed pieces to The Los Angeles Times and The Wall Street Journal	2	Member of Board of Trustees or Board of Managers of four registered investment companies advised by Advantage; Director of certain other private investment funds


Jeswald W. Salacuse The Fletcher School of Law & Diplomacy at Tufts University Medford, MA 02155 Birth Year: 1938	Director, Member of Audit Committee and Chairman of Nominating Committee, Class II	Since 1993	Henry J. Braker Professor of Commercial Law, The Fletcher School of Law & Diplomacy, Tufts University (1986-Present); President, Arbitration Tribunal, ICSID, World Bank (2003-Present); Dean, The Fletcher School of Law & Diplomacy, Tufts University (1986-1994)	2	Director of 22 registered investment companies advised by LMPFA and its affiliates

THE ASIA TIGERS FUND, INC.

Information about Directors and Officers (continued)


				Number of
				Portfolios
				in Fund
				Complex
		Term of		Overseen by	Other
		Office and	Principal	Director	Trusteeships/
	Position(s) Held	Length of	Occupation(s)	(including	Directorships
Name, Address and Age	with Fund¹	Time Served¹	During Past 5 Years	the Fund)	Held by Director

INTERESTED DIRECTORS

Prakash A. Melwani The Blackstone Group L.P. 345 Park Avenue New York, NY 10154 Birth Year: 1958	Director and President, Class III	Since 2005	Senior Managing Director, Private Equity Group, The Blackstone Group L.P. (May 2003-Present); Founder and Chief Investment Officer, Vestar Capital Partners (1998-2003)	2	Aspen Insurance Holdings Limited and Kosmos Energy Holdings


EXECUTIVE OFFICERS WHO ARE NOT DIRECTORS

Robert L. Friedman The Blackstone Group L.P. 345 Park Avenue New York, NY 10154 Birth Year: 1943	Chief Legal Officer and Vice President	Since 2005	Chief Administrative Officer and Chief Legal Officer, The Blackstone Group L.P. (2003-Present); Senior Managing Director, The Blackstone Group L.P. (1999-Present)	N/A	N/A


Joshua B. Rovine The Blackstone Group L.P. 345 Park Avenue New York, NY 10154 Birth Year: 1965	Secretary	Since 2005	Managing Director, Finance and Administration Group, The Blackstone Group L.P. (2003-Present); Partner, Sidley Austin Brown & Wood LLP (1994-2003)	N/A	N/A


Joseph M. Malangoni Blackstone Asia Advisors L.L.C. 53 State Street Boston, MA 02109 Birth Year: 1976	Treasurer and Vice President	Since 2007	Chief Financial Officer, Blackstone Asia Advisors L.L.C. (2007-Present); Controller and Chief Compliance Officer, Steadfast Financial LLC (2002-2007); Senior Associate, PricewaterhouseCoopers LLP (1998-2002).	N/A	N/A

THE ASIA TIGERS FUND, INC.

Information about Directors and Officers (continued)


				Number of
				Portfolios
				in Fund
				Complex
		Term of		Overseen by	Other
		Office and	Principal	Director	Trusteeships/
	Position(s) Held	Length of	Occupation(s)	(including	Directorships
Name, Address and Age	with Fund¹	Time Served¹	During Past 5 Years	the Fund)	Held by Director


Barbara F. Pires Blackstone Asia Advisors L.L.C. 345 Park Avenue New York, NY 10154 Birth Year: 1952	Chief Compliance Officer and Vice President	Since 2005	Chief Compliance Officer and Principal, Blackstone Asia Advisors L.L.C. (2006-Present) Consultant (2005-2006); Chief Compliance Officer, The Asia Tigers Fund, Inc. and The India Fund, Inc. (2005-Present); Senior Vice President, Oppenheimer Asset Management, Inc. (1996-2005)	N/A	N/A


Punita Kumar-Sinha Blackstone Asia Advisors L.L.C. 345 Park Avenue New York, NY 10154 Birth Year: 1962	Portfolio Manager and Chief Investment Officer	Since 2005	Senior Managing Director, The Blackstone Group L.P. (2006-Present); Managing Director and Senior Portfolio Manager, Advantage Advisors, Inc., an affiliate of Oppenheimer & Co., Inc. (1997-2005); Senior Portfolio Manager, Chief Investment Officer, The Asia Tigers Fund, Inc. (1999-Present) and The India Fund, Inc. (1997-Present)	N/A	N/A


¹		The Fund’s Board of Directors is divided into three classes: Class I, Class II, and Class III. The terms of office of the Class I, Class II, and Class III Directors expire at the Annual Meeting of Stockholders in the year 2011, year 2012 and year 2013, respectively, or thereafter in each case when their respective successors are duly elected and qualified. The Fund’s executive officers are chosen each year at the first meeting of the Fund’s Board of Directors following the Annual Meeting of Stockholders, to hold office until the meeting of the Board following the next Annual Meeting of Stockholders and until their successors are duly elected and qualified.

THE ASIA TIGERS FUND, INC.

Dividends and Distributions (unaudited)

DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN

The Fund intends to distribute annually to shareholders substantially all of its net investment income, and to distribute any net realized capital gains at least annually. Net investment income for this purpose is income other than net realized long-and short-term capital gains net of expenses.

Pursuant to the Dividend Reinvestment and Cash Purchase Plan (the “Plan”), shareholders whose shares of Common Stock are registered in their own names will be deemed to have elected to have all distributions automatically reinvested by the Plan Agent in the Fund shares pursuant to the Plan, unless such shareholders elect to receive distributions in cash. Shareholders who elect to receive distributions in cash will receive all distributions in cash paid by check in dollars mailed directly to the shareholder by PNC Bank, National Association, as dividend paying agent. In the case of shareholders such as banks, brokers or nominees that hold shares for others who are beneficial owners, the Plan Agent will administer the Plan on the basis of the number of shares certified from time to time by the shareholders as representing the total amount registered in such shareholders’ names and held for the account of beneficial owners that have not elected to receive distributions in cash. Investors that own shares registered in the name of a bank, broker or other nominee should consult with such nominee as to participation in the Plan through such nominee, and may be required to have their shares registered in their own names in order to participate in the Plan.

The Plan Agent serves as agent for the shareholders in administering the Plan. If the Directors of the Fund declare an income dividend or a capital gains distribution payable either in the Fund’s Common Stock or in cash, nonparticipants in the Plan will receive cash and participants in the Plan will receive Common Stock, to be issued by the Fund or purchased by the Plan Agent in the open market, as provided below. If the market price per share on the valuation date equals or exceeds net asset value per share on that date, the Fund will issue new shares to participants at net asset value; provided, however, that if the net asset value is less than 95% of the market price on the valuation date, then such shares will be issued at 95% of the market price. The valuation date will be the dividend or distribution payment date or, if that date is not a New York Stock Exchange trading day, the next preceding trading day. If net asset value exceeds the market price of Fund shares at such time, or if the Fund should declare an income dividend or capital gains distribution payable only in cash, the Plan Agent will, as agent for the participants, buy Fund shares in the open market, on the New York Stock Exchange or elsewhere, for the participants’ accounts on, or shortly after, the payment date. If, before the Plan Agent has completed its purchases, the market price exceeds the net asset value of a Fund share, the average per share purchase price paid by the Plan Agent may exceed the net asset value of the Fund’s shares, resulting in the acquisition of fewer shares than if the distribution had been paid in shares issued by the Fund on the dividend payment date. Because of the foregoing difficulty with respect to open-market purchases, the Plan provides that if the Plan Agent is unable to invest the full dividend amount in open-market purchases during the purchase period or if the market discount shifts to a market premium during the purchase period, the Plan Agent will cease making open-market purchases and

THE ASIA TIGERS FUND, INC.

DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN (continued)

will receive the uninvested portion of the dividend amount in newly issued shares at the close of business on the last purchase date.

Participants have the option of making additional cash payments to the Plan Agent, annually, in any amount from $100 to $3,000, for investment in the Fund’s Common Stock. The Plan Agent will use all such funds received from participants to purchase Fund shares in the open market on or about February 15.

Any voluntary cash payment received more than 30 days prior to this date will be returned by the Plan Agent, and interest will not be paid on any uninvested cash payment. To avoid unnecessary cash accumulations, and also to allow ample time for receipt and processing by the Plan Agent, it is suggested that participants send in voluntary cash payments to be received by the Plan Agent approximately ten days before an applicable purchase date specified above. A participant may withdraw a voluntary cash payment by written notice, if the notice is received by the Plan Agent not less than 48 hours before such payment is to be invested.

The Plan Agent maintains all shareholder accounts in the Plan and furnishes written confirmations of all transactions in an account, including information needed by shareholders for personal and tax records. Shares in the account of each Plan participant will be held by the Plan Agent in the name of the participant, and each shareholder’s proxy will include those shares purchased pursuant to the Plan.

There is no charge to participants for reinvesting dividends or capital gains distributions or voluntary cash payments. The Plan Agent’s fees for the reinvestment of dividends and capital gains distributions and voluntary cash payments will be paid by the Fund. There will be no brokerage charges with respect to shares issued directly by the Fund as a result of dividends or capital gains distributions payable either in stock or in cash. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent’s open market purchases in connection with the reinvestment of dividends and capital gains distributions and voluntary cash payments made by the participant. Brokerage charges for purchasing small amounts of stock for individual accounts through the Plan are expected to be less than the usual brokerage charges for such transactions, because the Plan Agent will be purchasing stock for all participants in blocks and prorating the lower commission thus attainable.

The receipt of dividends and distributions under the Plan will not relieve participants of any income tax that may be payable on such dividends or distributions.

THE ASIA TIGERS FUND, INC.

DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN (concluded)

Experience under the Plan may indicate that changes in the Plan are desirable. Accordingly, the Fund and the Plan Agent reserve the right to terminate the Plan as applied to any voluntary cash payments made and any dividend or distribution paid subsequent to notice of the termination sent to members of the Plan at least 30 days before the record date for such dividend or distribution. The Plan also may be amended by the Fund or the Plan Agent, but (except when necessary or appropriate to comply with applicable law, rules or policies of a regulatory authority) only by at least 30 days’ written notice to participants in the Plan. All correspondence concerning the Plan should be directed to the Plan Agent at P.O. Box 43027, Westborough, Massachusetts, 01581.

Pursuant to Section 852 of the Internal Revenue Code of 1986, as amended, the Fund paid distributions of $686,051 of ordinary income and $1,295,874 of long-term capital gains during the fiscal year ended October 31, 2010.

THE ASIA TIGERS FUND, INC.

PRIVACY POLICY OF

BLACKSTONE ASIA ADVISORS L.L.C.

YOUR PRIVACY IS PROTECTED

An important part of our commitment to you is our respect for your right to privacy. Protecting all the information we are either required to gather or which accumulates in the course of doing business with you is a cornerstone of our relationship with you. While the range of products and services we offer continues to expand, and the technology we use continues to change, our commitment to maintaining standards and procedures with respect to security remains constant.

COLLECTION OF INFORMATION

The primary reason that we collect and maintain information is to more effectively administer our customer relationship with you. It allows us to identify, improve and develop products and services that we believe could be of benefit. It also permits us to provide efficient, accurate and responsive service, to help protect you from unauthorized use of your information and to comply with regulatory and other legal requirements. These include those related to institutional risk control and the resolution of disputes or inquiries.

Various sources are used to collect information about you, including (i) information you provide to us at the time you establish a relationship, (ii) information provided in applications, forms or instruction letters completed by you, (iii) information about your transactions with us or our affiliated companies, and/or (iv) information we receive through an outside source, such as a bank or credit bureau. In order to maintain the integrity of client information, we have procedures in place to update such information, as well as to delete it when appropriate. We encourage you to communicate such changes whenever necessary.

DISCLOSURE OF INFORMATION

We do not disclose any nonpublic, personal information (such as your name, address or tax identification number) about our clients or former clients to anyone, except as permitted or required by law. We maintain physical, electronic and procedural safeguards to protect such information, and limit access to such information to those employees who require it in order to provide products or services to you.

The law permits us to share client information with companies that are affiliated with us which provide financial, credit, insurance, trust, legal, accounting and administrative services to us or our clients. This allows us to enhance our relationship with you by providing a broader range of products to better meet your needs and to protect the assets you may hold with us by preserving the safety and soundness of our firm.

THE ASIA TIGERS FUND, INC.

PRIVACY POLICY OF

BLACKSTONE ASIA ADVISORS L.L.C.

Finally, we are also permitted to disclose nonpublic, personal information to unaffiliated outside parties who assist us with processing, marketing or servicing a financial product, transaction or service requested by you, administering benefits or claims relating to such a transaction, product or service, and/or providing confirmations, statements, valuations or other records or information produced on our behalf.

It may be necessary, under anti-money laundering or other laws, to disclose information about you in order to accept your subscription. Information about you may also be released if you so direct, or if we or an affiliate are compelled to do so by law, or in connection with any government or self-regulatory organization request or investigation.

We are committed to upholding this Privacy Policy. We will notify you on an annual basis of our policies and practices in this regard and at any time that there is a material change that would require your consent.

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THE ASIA TIGERS FUND, INC.

Investment Manager:

Blackstone Asia Advisors L.L.C.,

an affiliate of The Blackstone Group L.P.

Administrator:

Blackstone Asia Advisors L.L.C.

Sub-Administrator:

BNY Mellon Investment
Servicing (US) Inc.

Transfer Agent:

BNY Mellon Investment
Servicing (US) Inc.

Custodian:

State Street Corporation

The Fund has adopted the Investment Manager’s proxy voting policies and procedures to govern the voting of proxies relating to its voting securities. You may obtain a copy of these proxy voting procedures, without charge, by calling 1-866-800-8933 or by visiting the Securities and Exchange Commission’s website at www.sec.gov.

Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, upon request, by calling 1-866-800-8933 or by visiting the Securities and Exchange Commission’s website at www.sec.gov.

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of its fiscal year on Form N-Q. You may obtain a copy of these filings by visiting the Securities and Exchange Commission’s website at www.sec.gov or its Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

This report is sent to stockholders of the Fund for their information. It is not a prospectus, circular or representation intended for use in the purchase or sale of shares of the Fund or of any securities mentioned in this report.

Blackstone Asia

Advisors L.L.C.

The Asia Tigers Fund, Inc.

Annual Report

October 31, 2010

The Asia Tigers Fund, Inc.

Item 2. Code of Ethics.

	(a)		As of the end of the period covered by this report, the registrant has adopted a Code of Ethics (the “Code of Ethics”) that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party.

	(b)		Not Applicable.

	(c)		There have been no amendments, during the period covered by this report to any provisions of the Code of Ethics.

	(d)		The registrant has not granted any waivers during the period covered by this report, including an implicit waiver, from any provisions of the Code of Ethics.

	(e)		Not Applicable.

	(f)		A copy of the registrant’s Code of Ethics is filed as an exhibit hereto. The registrant undertakes to provide a copy of the Code of Ethics to any person without charge upon request to the registrant at its address at 345 Park Avenue, New York, NY 10154.

Item 3. Audit Committee Financial Expert.

The registrant’s board of directors has determined that Lawrence Becker, a member of the board of directors’ audit committee, possesses the technical attributes identified in instruction 2(b) of Item 3 to Form N-CSR to qualify as an “audit committee financial expert,” and has designated Mr. Becker as the audit committee’s financial expert. Mr. Becker is an “independent” director pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.

Item 4. Principal Accountant Fees and Services.

Audit Fees

(a)

The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $82,555 for 2010 and $82,555 for 2009.

Audit-Related Fees

(b)

The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item are $0 for 2010 and $0 for 2009.

Tax Fees

(c)

The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $47,495 for 2010 and $42,148 for 2009.

All Other Fees

	(d)		The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2010 and $0 for 2009.

	(e)(1)		Disclose the audit committee’s pre-approval policies and procedures described in paragraph (c)(7) of Rule 2-01 of Regulation S-X.

THE ASIA TIGERS FUND, INC.

THE INDIA FUND, INC.

AUDIT COMMITTEE PRE-APPROVAL POLICIES

As amended on November 29, 2005

The Audit Committee (the “Committee”) of each of The Asia Tigers Fund, Inc. and The India Fund, Inc. (each, a “Fund”) must pre-approve any independent accounting firm’s engagement to render audit and/or permissible non-audit (including audit-related) services, as required by law. In evaluating a proposed engagement by the Fund’s independent accountants, the Committee will evaluate the effect that the engagement might reasonably be expected to have on the accountant’s independence. That evaluation will be based on several factors, including:

	•		a review of the nature of the professional services expected to be provided;

	•		the fees to be charged in connection with the services expected to be provided;

	•		a review of the safeguards put into place by the accounting firm to safeguard independence; and

	•		periodic meetings with the accounting firm.

I. Policy for Audit and Non-Audit Services to be Provided to the Fund

On an annual basis, the Fund’s Committee will review and pre-approve the scope of the audits of the Fund and proposed audit fees and permitted non-audit services that may be performed by the Fund’s independent accountants. At least annually, the Committee will receive a report of all audit and non-audit services that were rendered in the previous calendar year pursuant to this policy. The term of any pre-approval is twelve months from the date of pre-approval, unless the Committee specifically provides otherwise. The Committee may modify any pre-approval at its discretion. Fee levels for all services pre-approved under this policy will be established annually by the Committee.

In addition to the Committee’s pre-approval of services pursuant to this policy, the engagement of the independent accounting firm for any permitted non-audit service provided to the Fund will also require the separate written pre-approval of the President of the Fund, who will independently confirm that the accounting firm’s engagement will not adversely affect the firm’s independence. All non-audit services performed by the independent accounting firm will be disclosed, as required, in filings with the Securities and Exchange Commission (the “SEC”).

A. Audit Services

The categories of audit services and related fees to be reviewed and pre-approved annually by the Committee are:

	•		annual Fund financial statement audits (including applicable internal control reports);

	•		seed audits (related to new product filings, as required);

	•		semiannual financial statement reviews (if applicable); and

	•		SEC and regulatory filings and consents issued in connection with any of the above;

B. Audit-Related Services

The following categories of audit-related services are considered to be consistent with the role of the Fund’s independent accountants, and services falling under one of these categories will be pre-approved by the Committee on an annual basis if the Committee deems the services to be consistent with the accounting firm’s independence:

	•		accounting consultations;

	•		Fund merger support services;

	•		agreed-upon procedure reports;

	•		attestation reports;

	•		SEC and regulatory filings and consents issued in connection with filings previously authorized by the Board of Directors;

	•		comfort letters; and

	•		internal control reports (other than issued pursuant to annual Fund financial statement audits).

Individual audit-related services that fall within one of these categories and are not presented to the Committee as part of the annual pre-approval process may be pre-approved, if deemed consistent with the accounting firm’s independence, by the Committee Chairman (or any other Committee member who is a disinterested director under the Investment Company Act of 1940, as amended (the “Investment Company Act”), to whom this responsibility has been delegated) so long as the estimated fee for the services does not exceed $75,000. Any such pre-approval shall be reported to the full Committee at its next regularly scheduled meeting.

C. Tax Services

The following categories of tax and tax compliance services are considered to be consistent with the role of the Fund’s independent accountants, and services falling under one of these categories will be pre-approved by the Committee on an annual basis if the Committee deems the services to be consistent with the accounting firm’s independence:

	•		federal, state and local income tax compliance as well as sales and use tax compliance;

	•		timely “regulated investment company” qualification reviews;

	•		tax distribution analysis and planning;

	•		tax authority examination services;

	•		tax appeals support services;

	•		accounting methods studies;

	•		Fund merger support services; and

	•		other tax consulting services and related projects.

Individual tax services that fall within one of these categories and are not presented to the Committee as part of the annual pre-approval process may be pre-approved, if deemed consistent with the accounting firm’s independence, by the Committee Chairman (or any other Committee member who is a disinterested director under the Investment Company Act to whom this responsibility has been delegated) so long as the estimated fee for the services does not exceed $75,000. Any such pre-approval shall be reported to the full Committee at its next regularly scheduled meeting.

C. Proscribed Services

The Fund’s independent accountants will not render services in the following categories of non-audit services:

	•		bookkeeping or other services related to the accounting records or financial statements of the Fund;

	•		financial information systems design and implementation;

	•		appraisal or valuation services, fairness opinions or contribution-in-kind reports;

	•		actuarial services;

	•		internal audit outsourcing services;

	•		management functions or human resources;

	•		broker/dealer, investment adviser or investment banking services;

	•		legal and other expert services unrelated to the audit; and

•

any other service that the Public Company Accounting Oversight Board determines, by regulation, is impermissible.

II. Pre-Approval of Non-Audit Services Provided to Other Entities within the Investment Company Complex

The Committee will pre-approve annually any permitted non-audit services to be provided to Blackstone Asia Advisors L.L.C. or any other investment manager to the Fund (but not including any sub-adviser whose role is primarily portfolio management and is sub-contracted by the investment manager) (the “ Investment Manager”) and any entity controlling, controlled by or under common control with the Investment Manager that provides ongoing services to the Fund (including affiliated sub-advisers to the Funds), provided that, in each case, the engagement relates directly to the operations and financial reporting of the Fund (such entities, including the Investment Manager, shall be referred to herein as the “Service Affiliates”). Individual projects that are not presented to the Committee as part of the annual pre-approval process may be pre-approved, if deemed consistent with the accounting firm’s independence, by the Committee Chairman (or any other Committee member who is a disinterested director under the Investment Company Act to whom this responsibility has been delegated) so long as the estimated fee for the services does not exceed $100,000. Any such pre-approval shall be reported to the full Committee at its next regularly scheduled meeting.

The Committee will also receive an annual report from the Fund’s independent accounting firm showing the aggregate fees for all services provided to the Service Affiliates.

III. De Minimus Exception to Requirement of Pre-Approval of Non-Audit Services

With respect to the provision of permitted non-audit services to a Fund or Service Affiliates, the pre-approval requirement is waived if each of the following requirements is met:

	(1)		The aggregate amount of all non-approved permitted non-audit services provided constitutes no more than (i) with respect to such services provided to the Fund, five percent (5%) of the total amount of revenues paid by the Fund to its independent accountant during the fiscal year in which such services are provided and (ii) with respect to such services provided to Service Affiliates, five percent (5%) of the total amount of revenues paid to the Fund’s independent accountant by the Fund and the Service Affiliates during the fiscal year in which such services are provided;

	(2)		Such services were not recognized by the Fund at the time of the engagement for such services to be non-audit services; and

	(3)		Such services are promptly brought to the attention of the Committee and approved prior to the completion of the audit by the Committee or by the Committee Chairman (or any other Committee member who is a disinterested director under the Investment Company Act to whom this responsibility has been delegated). Any approval by the Committee Chairman or other delegate shall be reported to the full Committee at its next regularly scheduled meeting.

(e)(2)

The percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X are as follows:

(b) N/A

(d) N/A

	(f)		The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was 0%.

	(g)		The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to Blackstone Asia Advisors L.L.C., the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant for each of the last two fiscal years of the registrant was $0 for 2010 and $0 for 2009.

	(h)		The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed registrants.

The registrant has a separately-designated audit committee consisting of all the independent directors of the registrant. The members of the audit committee are Lawrence K. Becker, Leslie H. Gelb, Luis F. Rubio and Jeswald W. Salacuse.

Item 6. Investments.

(a)

Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

(b)

Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

The Proxy Voting Policies are attached herewith.

APPENDIX F

PROXY VOTING PROCEDURES:
BLACKSTONE ASIA ADVISORS, LLC

TABLE OF CONTENTS


	Page
INTRODUCTION		4

CHAPTER 1 BOARD OF DIRECTORS		5
Voting on Director Nominees In Uncontested Elections		5
Chairman and CEO are the same person		5
Independence of Directors		6
Stock Ownership Requirements		7
Charitable Contributions		8
Director and Officer Indemnification And Liability Protection		9
Size of the Board		11
Voting on Director Nominees in Contested Elections		12
Term Of Office		13
Compensation Disclosure		14

CHAPTER 2 AUDITORS		15
Ratifying Auditors		16

CHAPTER 3 TENDER OFFER DEFENSES		17
Poison Pills		18
Greenmail		19
Supermajority Vote		20

CHAPTER 4 MERGERS AND CORPORATE RESTRUCTURING		21
Changing Corporate Name		22
Reincorporation		23

CHAPTER 5 PROXY CONTEST DEFENSES		24
Board Structure: Staggered vs. Annual Elections		25


	Page
Cumulative Voting		26
Shareholders’ Ability to Call Special Meeting		27
Shareholders’ Ability to Alter Size of the Board		28

CHAPTER 6 MISCELLANEOUS CORPORATE GOVERNANCE PROVISIONS		29
Confidential Voting		30
Shareholder Advisory Committees		31
Foreign Corporate Matters		32
Government Service List		33

CHAPTER 7 SOCIAL AND ENVIRONMENTAL ISSUES		34
Energy and Environmental Issues (CERES Principles)		35
Northern Ireland (MacBride Principles)		36
Maquiladora Standards and International Operations and Policies		37
Equal Employment Opportunity And Discrimination		38
Animal Rights		39

CHAPTER 8 CAPITAL STRUCTURE		40
Common Stock Authorization		41
Blank Check Preferred Stock		42
Preemptive Rights		43
Stock Distributions: Splits and Dividends		44
Stock Splits		44
Reverse Stock Splits		45
Adjustments to Par Value of Common Stock		46
Debt Restructurings		47

CHAPTER 9 EXECUTIVE AND DIRECTOR COMPENSATION		48
Director Compensation		49


	Page
Shareholder Proposal to Limit Executive and Director Pay		50
Employee Stock Ownership Plans (ESOPs)		51
Options Expensing		52
Golden Parachutes		53
Proposal to Ban Golden Parachutes		54
Outside Directors’ Retirement Compensation		55

CHAPTER 10 STATE OF INCORPORATION		56
Control Share Acquisition Statutes		57
Opt-Out of State Takeover Statutes		58
Corporate Restructuring, Spin-Offs Asset Sales, Liquidations		59

CHAPTER 11 CONFLICTS OF INTEREST		60
Conflicts		61

CHAPTER 12 GOVERNANCE COMMITTEE AND PROXY MANAGERS		63
Governance Committee		64
Proxy Managers		65

CHAPTER 13 SPECIAL ISSUES WITH VOTING FOREIGN PROXIES		66
Special Issues with Voting Foreign Proxies		67

CHAPTER 14 RECORD KEEPING		68
Record Keeping		69

iii

INTRODUCTION

Rule 206(4)-6 (the “Rule”) adopted under the Investment Advisers Act of 1940, as amended (the “Advisers Act”) requires all registered investment advisers that exercise voting discretion over securities held in client portfolios to adopt proxy voting policies and procedures.

Blackstone Asia Advisors, LLC (the “Adviser”) is a registered investment adviser under the Advisers Act and is therefore required to adopt proxy voting policies and procedures pursuant to the Rule.

When the Adviser has investment discretion over a client’s investment portfolio, then the Adviser votes proxies for the Account pursuant to the policies and procedures set forth herein.

CHAPTER 1

BOARD OF DIRECTORS

Voting on Director Nominees
In Uncontested Elections

These proposals seek shareholder votes for persons who have been nominated by a corporation’s board of directors to stand for election to serve as members of that board. No candidates are opposing these board nominees.

In each analysis of an uncontested election of directors you should review:

	(1)		Company performance

	(2)		Composition of the board and key board committees

	(3)		Attendance at board meetings

	(4)		Corporate governance provisions and takeover activity

We may also consider:

	(1)		Board decisions concerning executive compensation

	(2)		Number of other board seats held by the nominee

	(3)		Interlocking directorships

Vote Recommendation


		It is our policy to vote IN FAVOR of the candidates proposed by the board.

We will look carefully at each candidate’s background contained in the proxy statement. In the absence of unusual circumstances suggesting a nominee is clearly not qualified to serve as a member of the board, we will vote with management.

Chairman and CEO are the same person

Shareholders may propose that different persons hold the positions of the chairman and the CEO.

We would evaluate these proposals on a case by case basis depending on the size of the company and performance of management.

Independence of Directors

Shareholders may request that the board be comprised of a majority of independent directors and that audit, compensation and nominating committees of the Board consists exclusively of independent directors. We believe that independent directors are important to corporate governance.

Vote Recommendation


		It is our policy to vote FOR proposals requesting that a majority of the Board be independent and that the audit, compensation and nominating committees of the board include only independent directors.

Stock Ownership Requirements

Shareholders may propose that directors be required to own a minimum amount of company stock or that directors should be paid in company stock, not cash. This proposal is based on the view that directors will align themselves with the interest of shareholders if they are shareholders themselves. We believe that directors are required to exercise their fiduciary duty to the company and its shareholders whether or not they own shares in the company and should be allowed to invest in company stock based on their own personal considerations.

Vote Recommendation


		Vote AGAINST proposals that require director stock ownership.

Charitable Contributions

Charitable contributions by companies are generally useful for assisting worthwhile causes and for creating goodwill between the company and its community. Moreover, there may be certain long-term financial benefits to companies from certain charitable contributions generated from, for example, movies spent helping educational efforts in the firm’s primary employment areas. Shareholders should not decide what the most worthwhile charities are.

Vote Recommendation


		(Shareholders Proposals) Vote AGAINST proposals regarding charitable contribution.

Shareholders have differing and equally sincere views as to which charities the company should contribute to, and the amount it should contribute. In the absence of bad faith, self-dealing, or gross negligence, management should determine which contributions are in the best interest of the company.

Director and Officer Indemnification And Liability Protection

These proposals typically provide for protection (or additional protection) which is to be afforded to the directors of a corporation in the form of indemnification by the corporation, insurance coverage or limitations upon their liability in connection with their responsibilities as directors.

When a corporation indemnifies its directors and officers, it means the corporation promises to reimburse them for certain legal expenses, damages, and judgments incurred as a result of lawsuits relating to their corporate actions. The corporation becomes the insurer for its officers and directors.

Vote Recommendation


		Vote AGAINST proposals that eliminate entirely director and officers’ liability for monetary damages for violating the duty of care.

		Vote AGAINST indemnification proposals that would expand coverage beyond just legal expenses to acts, such as negligence, that are more serious violations of fiduciary obligations than mere carelessness.

		Vote FOR only those proposals providing such expanded coverage in cases when a director’s or officer’s legal defense was unsuccessful if: a) the director was found to have acted in good faith, and b) only if the director’s legal expenses would be covered.

The following factors should be considered:

(A)

The present environment in which directors operate provides substantial risk of claims or suits against them in their individual capacities arising out of the discharge of their duties.

(B)

Attracting and retaining the most qualified directors enhances shareholder value.

Size of the Board

Typically there are three reasons for changing the size of the board. The first reason may be to permit inclusion into the board of additional individuals who, by virtue of their ability and experience, would benefit the corporation. The second reason may be to reduce the size of the board due to expiration of terms, resignation of sitting directors or, thirdly, to accommodate the corporation’s changing needs.

Vote Recommendation


		Vote FOR the board’s recommendation to increase or decrease the size of the board.

The following factors should be considered:

	1.		These proposals may aim at reducing or increasing the influence of certain groups of individuals.

	2.		This is an issue with which the board of directors is uniquely qualified to deal, since they have the most experience in sitting on a board and are up-to-date on the specific needs of the corporation.

Voting on Director Nominees in Contested Elections

Votes in contested elections of directors are evaluated on a CASE-BY-CASE basis.

The following factors are considered:

	1.		management’s track record

	2.		background to the proxy contest

	3.		qualifications of director nominees

Term of Office

This is a shareholder’s proposal to limit the tenure of outside directors. This requirement may not be an appropriate one. It is an artificial imposition on the board, and may have the result of removing knowledgeable directors from the board.

Vote Recommendation


		Vote AGAINST shareholder proposals to limit the tenure of outside directors.

The following factors should be considered:

	1.		An experienced director should not be disqualified because he or she has served a certain number of years.

	2.		The nominating committee is in the best position to judge the directors’ terms in office due to their understanding of a corporation’s needs and a director’s abilities and experience.

	3.		If shareholders are not satisfied with the job a director is doing, they can vote him/her off the board when the term is up.

Compensation Disclosure

These proposals seek shareholder approval of a request that the board of directors disclose the amount of compensation paid to officers and employees, in addition to the disclosure of such information in the proxy statement as required by the SEC regulations.

Vote Recommendation


		(shareholders policy) Vote AGAINST these proposals that require disclosure, unless we have reason to believe that mandated disclosures are insufficient to give an accurate and meaningful account of senior management compensation.

The following factors should be considered:

	1.		Federal securities laws require disclosure in corporate proxy statements of the compensation paid to corporate directors and officers.

	2.		Employees other than executive officers and directors are typically not in policy-making roles where they have the ability to determine, in a significant way, the amount of their own compensation.

	3.		The disclosure of compensation of lower-level officers and employees infringes upon their privacy and might create morale problems.

CHAPTER 2

AUDITORS

Ratifying Auditors

Shareholders must make certain that auditors are responsibly examining the financial statements of a company, that their reports adequately express any legitimate financial concerns, and that the auditor is independent of the company it is serving.

Vote Recommendation


		Vote FOR proposal to ratify auditors.

The following factors should be considered:

	1.		Although lawsuits are sometimes filed against accounting firms, including those nationally recognized, these firms typically complete their assignments in a lawful and professional manner.

	2.		Sometimes it may be appropriate for a corporation to change accounting firms, but the board of directors is in the best position to judge the advantages of any such change and any disagreements with former auditors must be fully disclosed to shareholders.

	3.		If there is a reason to believe the independent auditor has rendered an opinion which is neither accurate nor indicative of the company’s financial position, then in this case vote AGAINST ratification.

CHAPTER 3

TENDER OFFER DEFENSES

Poison Pills

Poison pills are corporate-sponsored financial devices that, when triggered by potential acquirers, do one or more of the following: a) dilute the acquirer’s equity in the target company, b) dilute the acquirer’s voting interests in the target company, or c) dilute the acquirer’s equity holdings in the post-merger company. Generally, poison pills accomplish these tasks by issuing rights or warrants to shareholders that are essentially worthless unless triggered by a hostile acquisition attempt.

A poison pill should contain a redemption clause that would allow the board to redeem it even after a potential acquirer has surpassed the ownership threshold. Poison pills may be adopted by the board without shareholder approval. But shareholders must have the opportunity to ratify or reject them at least every two years.

Vote Recommendation


		Vote FOR shareholder proposals asking that a company submit its poison pill for shareholder ratification.

		Vote on a CASE-BY-CASE basis regarding shareholder proposals to redeem a company’s poison pill.

		Vote on a CASE-BY-CASE basis regarding management proposals to ratify a poison pill.

Greenmail

Greenmail payments are targeted share repurchases by management of company stock from individuals or groups seeking control of the company. Since only the hostile party receives payment, usually at a substantial premium over the market, the practice discriminates against all other shareholders.

Greenmail payments usually expose the company to negative press and may result in lawsuits by shareholders. When a company’s name is associated with such a practice, company customers may think twice about future purchases made at the expense of the shareholders.

Vote Recommendation


		Vote FOR proposals to adopt anti Greenmail or bylaw amendments or otherwise restrict a company’s ability to make Greenmail payments

		Vote on a CASE-BY-CASE basis regarding anti-Greenmail proposals when they are bundled with other charter or bylaw amendments.

The following factors should be considered:

While studies by the SEC and others show that Greenmail devalues the company’s stock price, an argument can be made that a payment can enable the company to pursue plans that may provide long-term gains to the shareholders.

Supermajority Vote

Supermajority provisions violate the principle that a simple majority of voting shares should be all that is necessary to effect change regarding a company and its corporate governance provisions. These proposals seek shareholder approval to exceed the normal level of shareholder participation and approval from a simple majority of the outstanding shares to a much higher percentage.

Vote Recommendations


		Vote AGAINST management proposals to require a Supermajority shareholder vote to approve mergers and other significant business combinations.

		Vote FOR shareholder proposals to lower Supermajority vote requirements for mergers and other significant business combinations.

The following factors should be considered:

	1.		Supermajority requirements ensure broad agreement on issues that may have a significant impact on the future of the company.

	2.		Supermajority vote may make action all but impossible.

	3.		Supermajority requirements are counter to the principle of majority rule.

CHAPTER 4

MERGERS AND CORPORATE RESTRUCTURING

Changing Corporate Name

This proposal seeks shareholder approval to change the corporation’s name. It is probably better to vote for the proposed name change before management goes back to the drawing board and spends another small fortune attempting again to change the name.

Vote Recommendation


		Vote FOR changing the corporate name.

The following factors should be considered:

	1.		A name of a corporation symbolizes its substance.

	2.		There are many reasons a corporation may have for changing its name, including an intention to change the direction of the business or to have a contemporary corporate image.

	3.		The board of directors is well-positioned to determine the best name for the corporation because, among other reasons, it usually seeks professional advice on such matters.

Reincorporation

These proposals seek shareholder approval to change the state in which a company is incorporated. Sometimes this is done to accommodate the company’s most active operations or headquarters. More often, however, the companies want to reincorporate in a state with more stringent anti-takeover provisions. Delaware’s state laws, for instance, including liability and anti-takeover provisions, are more favorable to corporations.

Vote Recommendation


		Vote on a CASE-BY-CASE basis, carefully reviewing the new state’s laws and any significant changes the company makes in its charter and by-laws.

The following factors should be considered:

	1.		The board is in the best position to determine the company’s need to incorporate.

	2.		Reincorporation may have considerable implications for shareholders, affecting a company’s takeover defenses, its corporate structure or governance features.

	3.		Reincorporation in a state with stronger anti-takeover laws may harm shareholder value.

CHAPTER 5

PROXY CONTEST DEFENSES

Board Structure: Staggered vs. Annual Elections

A company that has a classified, or staggered, board is one in which directors are typically divided into three classes, with each class serving three-year terms; each class’s reelection occurs in different years. In contrast, all directors of an annually elected board serve one year and the entire board stands for election each year.

Classifying the board makes it more difficult to change control of a company through a proxy contest involving election of directors. Because only a minority of the directors are elected each year, it will be more difficult to win control of the board in a single election.

Vote Recommendations


		Vote AGAINST proposals to classify the board. Vote FOR proposals to repeal classified boards and to elect all directors annually.

The following factors should be considered:

The annual election of directors provides an extra check on management’s performance. A director who is doing a good job should not fear an annual review of his/her directorship.

Cumulative Voting

Most companies provide that shareholders are entitled to cast one vote for each share owned, the so-called “one share, one vote” standard. This proposal seeks to allow each shareholder to cast votes in the election of directors proportionate to the number of directors times the number of shares owned by each shareholder for one nominee.

Vote Recommendation


		Vote AGAINST proposals that permit cumulative voting.

The following factors should be considered:

	1.		Cumulative voting would allow a minority owner to create an impact disproportionate to his/her holdings.

	2.		Cumulative voting can be used to elect a director who would represent special interests and not those of the corporation and its shareholders.

	3.		Cumulative voting can allow a minority to have representation.

	4.		Cumulative Voting can lead to a conflict within the board which could interfere with its ability to serve the shareholders’ best interests.

Shareholders’ Ability to Call Special Meeting

Most state corporation statutes allow shareholders to call a special meeting when they want to take action on certain matters that arise between regularly scheduled annual meetings.

Vote Recommendation


		Vote AGAINST proposals to restrict or prohibit shareholder ability to call special meetings.

		Vote FOR proposals that remove restrictions on the right of shareholders to act independently of management.

Shareholders’ Ability to Alter Size of the Board

Proposals which would allow management to increase or decrease the size of the board at its own discretion are often used by companies as a takeover defense.

Shareholders should support management proposals to fix the size of the board at a specific number of directors, preventing management from increasing the size of the board without shareholder approval. By increasing the size of the board, management can make it more difficult for dissidents to gain control of the board.

Vote Recommendations


		Vote FOR proposal which seek to fix the size of the board.

		Vote AGAINST proposals which give management the ability to alter the size of the board without shareholder approval.

CHAPTER 6

MISCELLANEOUS CORPORATE GOVERNANCE PROVISIONS

Confidential Voting

Confidential voting, also known as voting by secret ballot, is one of the key structural issues in the proxy system. All proxies, ballots, and voting tabulations that identify individual shareholders are kept confidential.

Vote Recommendations


		Vote FOR shareholder proposals requesting that corporations adopt confidential voting.

		Vote FOR management proposals to adopt confidential voting.

The following factors should be considered:

	1.		Some shareholders elect to have the board not know how they voted on certain issues.

	2.		Should the board be aware of how a shareholder voted, the board could attempt to influence the shareholder to change his/her vote, giving itself an advantage over those that do not have access to this information.

	3.		Confidential voting is an important element of corporate democracy which should be available to the shareholder.

Shareholder Advisory Committees

These proposals request that the corporation establish a shareholder advisory committee to review the board’s performance. In some instances, it would have a budget funded by the corporation and would be composed of salaried committee members with authority to hire outside experts and to include reports in the annual proxy statement.

Vote Recommendation


		Vote AGAINST proposals to establish a shareholder advisory committee.

The following factors should be considered:

	1.		Directors already have fiduciary responsibility to represent shareholders and are accountable to them by law, thus rendering shareholder advisory committees unnecessary.

	2.		Adding another layer to the current corporate governance system would be expensive and unproductive.

Foreign Corporate Matters

These proposals are usually submitted by companies incorporated outside of the United States seeking shareholder approval for actions which are considered ordinary business and do not require shareholder approval in the United States (i.e., declaration of dividends, approval of financial statements, etc.).

Vote Recommendation


		Vote FOR proposals that concern foreign companies incorporated outside of the United States.

The following factors should be considered:

	1.		The laws and regulations of various countries differ widely as to those issues on which shareholder approval is needed, usually requiring consent for actions which are considered routine in the United States.

	2.		The board of directors is well positioned to determine whether or not these types of actions are in the best interest of the corporation’s shareholders.

Government Service List

This proposal requests that the board of directors prepare a list of employees or consultants to the company who have been employed by the government within a specified period of time and the substance of their involvement.

Solicitation of customers and negotiation of contractual or other business relationships is traditionally the responsibility of management. Compilation of such a list does not seem to serve a useful purpose, primarily because existing laws and regulations serve as a checklist on conflicts of interest.

Vote Recommendation


		Vote AGAINST these proposals which request a list of employees having been employed by the government.

The following factors should be considered:

	1.		For certain companies, employing individuals familiar with the regulatory agencies and procedures is essential and, therefore, is in the best interests of the shareholders.

	2.		Existing laws and regulations require enough disclosure and serve as a check on conflicts of interest.

	3.		Additional disclosure would be an unreasonable invasion of such individual’s privacy.

CHAPTER 7

SOCIAL AND ENVIRONMENTAL ISSUES

Energy and Environmental Issues (CERES Principles)

CERES proposals ask management to sign or report on process toward compliance with ten principles committing the company to environmental stewardship. Principle 10 directs companies to fill out the CERES report. This report requires companies to disclose information about environmental policies, toxic emissions, hazardous waste management, workplace safety, energy use, and environmental audits.

Vote Recommendation


		Vote AGAINST proposals requesting that companies sign the CERES Principles.

The following factors should be considered:

We do not believe a concrete business case is made for this proposal. In our opinion, the company will be best served by continuing to carry on its business as it did before the proposal was made.

Northern Ireland (MacBride Principles)

It is well documented that Northern Ireland’s Catholic community faces much higher unemployment figures then the Protestant community. Most proposals ask companies to endorse or report on progress with respect to the MacBride Principles.

In evaluating a proposal to adopt the MacBride Principles, you must decide if the principles will cause the company to divest, and worsen unemployment problems.

Vote Recommendation


		REFRAIN from voting on proposals that request companies to adopt the MacBride Principles.

The following factors should be considered:

	1.		We believe that human and political rights are of the utmost importance for their own sake as well as for the enhancement of economic potential of a nation.

	2.		We do not believe a concrete business case has been made for this proposal. We will refrain from making social or political statements by voting for these proposals. We will only vote on proposals that maximize the value of the issuers’ status without regard to (i.e., we will not pass judgement upon) the non-economic considerations.

Maquiladora Standards and International Operations and Policies

Proposals in this area generally request companies to report on or to adopt certain principles regarding their operations in foreign countries.

The Maquiladora Standards are a set of guidelines that outline how U.S. companies should conduct operations in Maquiladora facilities just across the U.S.-Mexican border. These standards cover such topics as community development, environmental policies, health and safety policies, and fair employment practices.

Vote Recommendation


		ABSTAIN from providing a Vote Recommendation on proposals regarding the Maquiladora Standards and international operating policies.

The following factors should be considered:

	1.		We believe that human rights are of the utmost importance for their own sake as well as for the enhancement of economic potential of a nation.

	2.		We do not believe that a concrete business case has been made for these proposals. We will refrain from making social statements by voting for these proposals. We will not only vote on proposals that maximize the value of the issuers’ securities without regard to (i.e., we will not pass judgement upon) the non-economic considerations.

Equal Employment Opportunity And Discrimination

In regards to equal employment and discrimination, companies without comprehensive EEO programs will find it hard to recruit qualified employees and find them at a long-term competitive disadvantage. Companies who are not carefully watching their human resource practices could also face lawsuits.

Vote Recommendation


		REFRAIN from voting on any proposals regarding equal employment opportunities and discrimination.

The following factors should be considered:

We feel that the hiring and promotion of employees should be free from prohibited discriminatory practices. We also feel that many of these issues are already subject to significant state and federal regulations.

Animal Rights

A Corporation is requested to issue a report on its progress towards reducing reliance on animal tests for consumer product safety.

Vote Recommendation


		REFRAIN from making Vote Recommendations on proposals regarding animal rights.

The following factors should be considered:

	1.		Needless cruelty to animals should never be tolerated. However, the testing of products on animals may be very important to the health and safety of consumers.

	2.		We also feel that this issue is already subject to significant state and federal regulation.

CHAPTER 8

CAPITAL STRUCTURE

Common Stock Authorization

The ability to increase the number of authorized shares could accommodate the sale of equity, stock splits, dividends, compensation-based plans, etc. The board can usually be trusted to use additional shares for capital-raising and other transactions that are in the corporation’s best interests.

However, excessive escalation in the number of authorized shares may allow the board to radically change the corporation’s direction without shareholder approval. Be careful to view that the increased number of shares will not enable the company to activate a poison pill.

Vote Recommendation


		Vote Case-By-Case on proposals to increase the number of shares of common stock authorized for issue.

		Vote AGAINST proposed common share authorization that increase existing authorization by more then 100 percent unless a clear need for the excess shares is presented by the company.

The following factors should be considered:

	1.		Is this company going to make frequent business acquisitions over a period of time?

	2.		Is the company expanding its operations?

	3.		Within the company, are there any debt structuring or prepackaged bankruptcy plans?

Blank Check Preferred Stock

The terms of blank check preferred stock give the board of directors the power to issue shares of preferred stock at their discretion, with voting, conversion, distribution and other rights to be determined by the board at the time of the issue.

Blank check preferred stock can provide corporations with the flexibility to meet changing financial conditions. However, once the blank check preferred stock has been authorized, the shareholders have no further power over how or when it will be allocated.

Vote Recommendation


		Vote AGAINST proposals authorizing the creation of new classes of preferred stock with unspecified voting, conversion, dividend distribution, and other rights.

The following factors should be considered:

Blank check preferred stock can be used as the vehicle for a poison pill defense against hostile suitors, or it may be placed in friendly hands to help block a takeover bid.

Preemptive Rights

These proposals request that the corporation provide existing shareholders with an opportunity to acquire additional shares in proportion to their existing holdings whenever new shares are issued. In companies with a large shareholder base and ease in which shareholders could preserve their relative interest through purchases of shares on the open market, the cost of implementing preemptive rights does not seem justifiable in relation to the benefits.

Vote Recommendation


		Vote AGAINST proposals seeking preemptive rights.

The following factors should be considered:

	1.		The existence of preemptive rights can considerably slow down the process of issuing new shares due to the logistics involved in protecting such rights.

	2.		Preemptive rights are not necessary for the shareholder in today’s corporations, whose stock is held by a wide range of owners and is, in most cases, highly liquid.

Stock Distributions: Splits and Dividends

Stock Splits

The corporation requests authorization for a stock split.

Vote Recommendation


		Vote FOR management proposal to authorize stock splits unless the split will result in an increase of authorized but unissued shares of more than 100% after giving effect to the shares needed for the split.

Reverse Stock Splits

Vote Recommendation


		Vote FOR management proposal to authorize reverse stock split unless the reverse stock split results in an increase of authorized but unissued shares of more than 100% after giving effect to the shares needed for the reverse split.

Adjustments to Par Value of Common Stock

The purpose of par value stock is to establish the maximum responsibility of stockholder in the event that a corporation becomes insolvent. It represents the maximum amount that a shareholder must pay the corporation if the stock is to be fully paid when issued.

The corporation requests permission to reduce the par value of its stock. In most cases, adjusting par value is a routine financing decision and should be supported.

Vote Recommendation


		Vote FOR management proposals to reduce the par value of common stock.

The following factors should be considered:

	1.		State laws sometimes prohibit issuance of new stock priced below that of the outstanding shares.

	2.		A corporation may be unable to raise capital if the par value is overstated.

Debt Restructurings

The corporation may propose to increase common and/or preferred shares and to issue shares as part of a debt restructuring plan.

Vote Recommendation


		It is our policy to vote CASE-BY-CASE on debt restructuring.

The following factors should be considered:

	1.		Dilution — How much will ownership interest of existing shareholders be reduced and how extreme will dilution to future earnings be?

	2.		Change in Control — Will the transaction result in a change of control of the company?

	3.		Bankruptcy — Is the threat of bankruptcy, which would result in severe losses in shareholder value, the main factor driving the debt restructuring?

CHAPTER 9

EXECUTIVE AND DIRECTOR COMPENSATION

Director Compensation

Directors represent shareholders and are responsible for protecting shareholder interests. Companies state in the proxy material that they pay directors well in order to attract the most qualified candidates. All compensation packages for any executive, director or employee should include a pay-for-performance component.

Vote Recommendation


		Vote on a CASE-BY-CASE basis for director compensation.

The following factors should be considered:

As directors take an increasingly active role in corporate decision-making and governance, their compensation is becoming more performance-based.

Shareholder Proposal to Limit Executive and Director Pay

Shareholder compensation proposals that set limits or reduce executive compensation should be closely scrutinized. Many of these proposals may be flawed in their emphasis on an absolute dollar figure in compensation.

Vote Recommendation


		Vote on a CASE-BY-CASE basis.

The following factors should be considered:

Executive compensation is established by a committee that consists of independent directors who have fiduciary responsibility to act in the best interest of the shareholders and who are best placed to make compensation decisions.

Employee Stock Ownership Plans (ESOPs)

These proposals ask for stockholder endorsement of compensation plans for key employees which involve the issuance of company shares by granting of stock options, SARs, restricted stock, etc. These plans help attract and retain best-qualified corporate personnel and tie their interests more closely to those of the shareholders.

Vote Recommendation


		Vote FOR proposals to adopt share-based compensation plans when the following items are involved:

	1.		The exercise price for stock options is less than 85% of fair market value on the date of the grant.

	2.		It is an omnibus stock plan which gives directors broad discretion in deciding how much and what kind of stock to award, when and to whom.

	3.		The shares for issue exceed 8% of the company’s outstanding shares; or, in the case of the evergreen plans, the amount of increase exceeds 1.5% of the total number of shares outstanding.


		Vote AGAINST proposals adopting share based compensation plans when the following items are involved:

	1.		Re-load options (new options issued for any exercised).

	2.		The plan would allow for management to pyramid their holdings by using stock to purchase more stock, without having to lay out cash. Vote YES if this is for directors.

Options Expensing

Shareholder proposal to expense options.

Vote Recommendation


		It is our policy to vote FOR proposals to expense options.

Golden Parachutes

Golden parachutes are designed to protect the employees of a corporation in the event of a change in control. The change in control agreement will specify the exact payments to be made under the golden parachutes. The calculation for payout is usually based on some multiple of an employee’s annual or monthly compensation. Golden parachutes are generally given to employees whose annual compensation exceeds $112,000.

Recent experience has shown a willingness of many managements to treat severance agreements as equal to equity investments and to reward themselves as if substantial amounts of equity were at risk.

Vote Recommendation


		Vote FOR proposals which seek to limit additional compensation payments.

		Vote FOR shareholder proposals to have golden parachutes submitted for shareholder ratification.

The following factors should be considered:

	1.		The stability of management may be affected by an attempted acquisition of the corporation.

	2.		There is a tendency on the part of an entrenched management to overstate the value of their continuing control of and influence on the day-to-day functions of a corporation.

Proposal to Ban Golden Parachutes

Based on the foregoing information:

Vote Recommendation


		We are FOR this proposal, which essentially bans golden parachutes, because we feel management’s compensation should be solely based on real-time contributions to the corporation while they are serving it. Deferred current compensation is viewed differently than future, contingent compensation for current services.

Outside Directors’ Retirement Compensation

We believe that directors should only be compensated while serving the company.

Vote Recommendations


		Vote AGAINST proposals establishing outside directors’ retirement compensation.

		Vote FOR proposals that revoke outside directors’ retirement compensation.

CHAPTER 10

STATE OF INCORPORATION

Control Share Acquisition Statutes

These proposals suggest that the board of directors solicit shareholder approval before committing acquisitions or divestiture of a business exceeding stipulated threshold levels. Such statutes function by denying shares their voting rights when they contribute to ownership in excess of certain thresholds.

Vote Recommendation


		Vote AGAINST proposals which request the board to seek shareholder approval before committing to an acquisition.

The following factors should be considered:

	1.		These proposals deprive the board of directors of its ability to act quickly in propitious circumstances.

	2.		Conforming to these requirements can be expensive.

	3.		The board of directors is uniquely qualified and positioned to be able to make these decisions without prior shareholder approval.

	4.		The threshold levels usually imposed by these proposals are much more stringent than required by law.

Opt-Out of State Takeover Statutes

These proposals seek shareholder approval to opt-out (not be governed by) certain provisions of the anti-takeover laws of various states. Delaware law, for instance, dictates that a bidder has to acquire at least 85% of a company’s stock before exercising control, unless he or she has board approval. This means that a company may thwart an otherwise successful bidder by securing 15% of its stock in friendly hands.

Vote Recommendation


		Vote on a CASE-BY-CASE basis for these proposals.

The following factors should be considered:

	1.		It is the directors’ responsibility to act on behalf of the shareholders in opposing coercive takeover attempts.

	2.		Creating deterrents to corporate takeovers may allow for entrenchment of inefficient management.

	3.		These statutes strengthen the board’s ability to deal with potential buyers on fair and reasonable terms.

	4.		Shareholders should have the final say on whether the company should be merged or acquired.

Corporate Restructuring, Spin-Offs Asset Sales, Liquidations

Votes on corporate restructuring, spin-offs, asset sales and liquidations are evaluated on a case by case basis.

CHAPTER 11

CONFLICTS OF INTEREST

Conflicts

From time to time, proxy voting proposals may raise conflicts between the interests of the Advisers clients and the interests of the Adviser, its affiliates and its employees. Conflicts of interest may arise when:

	1.		Proxy votes regarding non-routine matters are solicited by an issuer that may have a separate account relationship with an affiliate of the Adviser.

	2.		A proponent of a proxy proposal has a business relationship with the Adviser or one of its affiliates or the Adviser or one of its affiliates has a business relationship with participants in proxy contests, corporate directors or director candidates.

	3.		An employee of the Adviser has a personal interest in the outcome of a particular matter before shareholders.

If the Adviser receives a proxy that to the knowledge of the Proxy Manager raises a conflict of interest, the Proxy Manager shall advise the Governance Committee which shall determine whether the conflict is “material” to any specific proposal involved in the proxy. The Governance Committee will determine whether the proposal is material as follows:

	1.		Routine proxy proposals are presumed not to involve a material conflict of interest.

	2.		Non-routine proxy proposals. Proxy proposals that are “non-routine” will be presumed to involve a material conflict of interest unless the Governance Committee determines that the conflict is unrelated to the proposal. Non-routine proposals would include a merger, compensation matters for management and contested elections of directors.

Conflicts cont’d

The Governance Committee may determine on a case-by-case basis that particular non-routine proposals do not involve a material conflict of interest because the proposal is not directly related to the Adviser’s conflict vis-à-vis the issue. The Governance Committee will record the basis for any such determination. With respect to any proposal that the Governance Committee determines presents a material conflict of interest, the Adviser may vote regarding that proposal in any of the following ways:

	a)		Obtain instructions from the client on how to vote.

	b)		Use existing proxy guidelines if the policy with respect to the proposal is specifically addressed and does not involve a case-by-case analysis.

	c)		Vote the proposal that involves the conflict according to the recommendations of an independent third party such as Institutional Share Services Inc. or Investor Responsibility Research Center.

CHAPTER 12

GOVERNANCE COMMITTEE
AND
PROXY MANAGERS

Governance Committee

The Governance Committee is responsible for the maintenance of the Proxy Voting Policies and Procedures and will determine whether any conflict between the interest of clients and the Advisers in voting proxies is material. The Governance Committee includes the following: (1) Joseph Malangoni, (2) Barbara Pires, and (3) Punita Kumar-Sinha.

Proxy Managers

The Proxy Manager for the Adviser is Punita Kumar-Sinha, Portfolio Manager. The Proxy Manager will determine how votes will be cast on proposals that are evaluated on a case-by case basis.

CHAPTER 13

SPECIAL ISSUES WITH VOTING
FOREIGN PROXIES

Special Issues with Voting Foreign Proxies

Voting proxies with respect to shares of foreign stock may involve significantly greater effort and corresponding cost than voting proxies in the U.S domestic market. Issues in voting foreign proxies include the following:

	1.		Each country has its own rules and practices regarding shareholder notification, voting restrictions, registration conditions and share blocking.

	2.		In some foreign countries shares may be “blocked” by custodian or depository or bearer shares deposited with specific financial institutions for a certain number of days before or after the shareholders meeting. When blocked, shares typically may not be traded until the day after the blocking period. Blackstone may refrain from voting shares of foreign stocks subject to blocking restrictions where in the Adviser’s judgment the benefit from voting the shares is outweighed by the interest in maintaining client liquidity in the shares. This decision is made on a case-by-case basis based on a relevant factors including the length of the blocking period, the significance of the holding and whether the stock is considered by a long-term holding.

	3.		Time frames between shareholder notification, distribution of proxy materials, book closures and the actual meeting date may be too short to allow timely action.

	4.		In certain countries, applicable regulations require that votes must be made in person at the shareholder meeting. The Adviser will weigh the costs and benefits of voting on proxy proposals in countries that require in-person voting on a case-by-case basis and make decisions on whether voting on a given proxy proposal is prudent. Generally, the Adviser will not vote shares in countries that require in person voting on routine matters such as uncontested elections of directors, ratification of auditors.

CHAPTER 14

RECORD KEEPING

Record Keeping

Blackstone will maintain the following records:

	1.		Copies of these policies

	2.		A copy of each proxy statement that the Adviser receives regarding client securities. The Adviser may satisfy this requirement by relying on a third party to keep copies of proxy statements provided that the Adviser has an undertaking from the third party to provide a copy of the proxy statement promptly upon request.

	3.		A record of each vote cast on behalf of a client. A third party may keep these voting records provided that the Adviser has an undertaking from the third party to provide a copy of the record promptly upon request.

	4.		A copy of any document created by the Adviser that was material to making a decision on how to vote proxies or that memorializes the basis for that decision.

	5.		A copy of each written client request for information on how an Adviser voted proxies on behalf of the client and a copy of written response by the Adviser to any client request for information on how the Adviser voted proxies on behalf of the client.

The above records shall be maintained for five years from the end of the fiscal year during which the last entry was made on such record, the first two years in an appropriate office of the Adviser.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

(a) Portfolio Manager

The Fund is managed by Punita Kumar-Sinha, Chief Investment Officer, who has primary responsibility for the day-to-day implementation of the Fund’s investment strategies. Ms. Kumar-Sinha has been the portfolio manager for the Fund since 1999. Ms. Kumar-Sinha joined Blackstone Asia Advisors L.L.C. (the “Investment Manager”) in December 2005 and is a Senior Managing Director. Prior to joining the Investment Manager, Ms. Kumar-Sinha was a Managing Director and Senior Portfolio Manager at Oppenheimer Asset Management Inc. and CIBC World Markets, where she was also the portfolio manager for the Fund. Prior to December 4, 2005, Advantage Advisers, a subsidiary of Oppenheimer Asset Management Inc., served as the Fund’s Investment Manager.

Other Accounts Managed by Portfolio Manager

In addition to managing the Fund, Ms. Kumar-Sinha is primarily responsible for the day-to-day portfolio management of one registered investment company, The India Fund, Inc., and one unregistered pooled investment vehicle. As of October 31, 2010, the total assets of The India Fund, Inc. were

approximately $1,784,038,309, and the total assets of the unregistered pooled investment vehicle were approximately $21,521,791. Ms. Kumar-Sinha manages no other registered investment companies, pooled investment vehicles or accounts. None of the accounts managed by Ms. Kumar-Sinha have fees based on performance.

Portfolio Manager Compensation

Ms. Kumar-Sinha’s overall compensation is determined by Blackstone’s Management Committee. Blackstone’s compensation structure is designed to pay competitive salaries to attract and retain top quality investment professionals. Ms. Kumar-Sinha’s compensation consists of two elements—base salary and bonus.

Base Salary

The base salary is generally a fixed amount. The base salary is reviewed annually and may be adjusted based on a variety of factors, including competitive market factors and the skill, experience and responsibilities of the individual. While investment performance is a factor in determining the portfolio manager’s compensation, it is not necessarily a decisive factor.

Bonus

Ms. Kumar-Sinha is also eligible to receive an annual cash bonus and Blackstone stock. The level of this bonus is based upon evaluations and determinations made by Blackstone’s Compensation Committee. These reviews and evaluations often take into account a variety of factors, including the effectiveness of the portfolio manager’s investment strategies, the performance of the accounts for which she serves as portfolio manager relative to any benchmark or benchmarks established for those accounts over the course of the year (currently the IFC Investable Index, the Bombay Stock Exchange 500 Index, the MSCI AC Asia Ex-Japan Index, the MSCI India Index and the MSCI AC Far East Ex-Japan Index), the amount of the Investment Manager’s total assets under management, the portfolio manager’s ability to work with colleagues and to supervise her investment staff and her overall contribution to the Investment Manager in achieving its business objectives. Ms. Kumar-Sinha’s performance is evaluated for the prior calendar year and also takes into account her long term record

Potential Conflicts of Interest

Potential conflicts of interest may arise when a portfolio manager has day-to-day management responsibilities with respect to one or more funds or accounts, as is the case for Ms. Kumar-Sinha. Ms. Kumar-Sinha’s simultaneous management of the Fund, another registered investment company and one other pooled investment vehicle may present actual or apparent conflicts of interest with respect to the allocation of Ms. Kumar-Sinha’s time and attention as well as with respect to the allocation of investment opportunities and aggregation of securities orders placed on behalf of these accounts. These accounts have, to varying degrees, overlapping investment objectives; all may invest in Indian securities, and both the Fund and the other pooled investment vehicle invest primarily in Asian securities. Potential conflicts may arise, for example, when there is a limited quantity of an investment that may be suitable for more than one of these accounts and the investment must be allocated between them. It is also possible that, in light of different objectives, benchmarks, industry and sector exposures and time horizons, the portfolio manager may take differing positions in the accounts. In the future, Ms. Kumar-Sinha may manage other funds or accounts that may also invest in the same or similar securities as the Fund, which may present similar or additional conflicts of interest.

The Investment Manager believes that such potential conflicts are mitigated by the fact that the Investment Manager has adopted policies that address potential conflicts of interest, including strict adherence to investment objectives, policies and guidelines as well as best execution and trade allocation policies that are designed to ensure (1) that portfolio management is seeking the best price for portfolio securities under the circumstances, (2) fair and equitable allocation of investment opportunities among accounts over time and (3) compliance with applicable regulatory requirements. All accounts are treated in a non-preferential manner, such that allocations are not based upon account performance, fee structure or preference of the portfolio manager. In some cases, these procedures may affect the size of the position obtained or the price paid and may preclude some investment opportunities.

Portfolio Manager Securities Ownership

As of October 31, 2010, Ms. Kumar-Sinha beneficially owned between $10,001 and $50,000 in the common stock of the Fund.

(b) Not applicable


Item 9.		Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

REGISTRANT PURCHASES OF EQUITY SECURITIES


			(c) Total Number of Shares	(d) Maximum Number (or
	(a) Total Number	(b) Average	(or Units) Purchased as Part	Approximate Dollar Value) of Shares
	of Shares (or	Price Paid per	of Publicly Announced Plans	(or Units) that May Yet Be Purchased
Period	Units) Purchased	Share (or Unit)	or Programs	Under the Plans or Programs
05/01/10 to 05/31/10	None	None	None	None
06/01/10 to 06/30/10	None	None	None	None
07/01/10 to 07/31/10	165,203.6738	$19.6196	165,203.6738⁽¹⁾	None
08/01/10 to 08/31/10	None	None	None	None
09/01/10 to 09/30/10	None	None	None	None
10/01/10 to 10/31/10	None	None	None	None
Total	165,203.6738	$19.6196	165,203.6738⁽¹⁾	None


⁽¹⁾		These shares were repurchased in connection with the Fund’s regular, semi-annual repurchase offer announced on June 25, 2010 that expired on July 16, 2010. In connection with this


		repurchase offer, the Fund offered to repurchase up to 186,116 shares of its common stock, an amount equal to 5% of its outstanding shares of common stock, for cash at a price approximately equal to the Fund’s net asset value as of July 23, 2010

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which the shareholders may recommend nominees to the registrant’s board of directors, where those changes were implemented after the registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)), or this Item.

Item 11. Controls and Procedures.

	(a)		The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

	(b)		There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

	(a)(1)		Code of ethics, or any amendment thereto, that is the subject of disclosure required by Item 2 is attached hereto.

	(a)(2)		Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

	(a)(3)		Not applicable.

	(b)		Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


(registrant)		The Asia Tigers Fund, Inc.


By (Signature and Title)*		/s/ Prakash A. Melwani Prakash A. Melwani, President
		(principal executive officer)


Date		December 28, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By (Signature and Title)*		/s/ Prakash A. Melwani Prakash A. Melwani, President
		(principal executive officer)


Date		December 28, 2010


By (Signature and Title)*		/s/ Joseph M. Malangoni

		Joseph M. Malangoni, Treasurer and Vice President
		(principal financial officer)


Date		December 28, 2010


^*		Print the name and title of each signing officer under his or her signature.