Half-yearly Report
LONDON STOCK EXCHANGE ANNOUNCEMENT
Pacific Assets Trust plc
Unaudited Interim Report For The Six Months Ended
31 July 2010
Company Summary
Objective
To achieve long term capital growth through investment in selected companies in
the Asia Pacific region and the Indian sub-continent, but excluding Japan,
Australia and New Zealand.
Benchmark
Performance is measured against the MSCI All Country Asia ex Japan Index (total
return: sterling adjusted).
Performance Assessment
The Company exists in a competitive environment and aims to be a leader in its
peer group. Reflecting this, it should consistently be within the top third of
that group measured by net asset value total return.
The Company is committed to building a long term investment record and will
assess itself by reference to its peers on a rolling three year basis.
Investment Manager
F&C Investment Business Limited (until 30 June 2010)
First State Investment Management (UK) Limited (with effect from 1 July 2010)
Manager, Administrator and Company Secretary
Frostrow Capital LLP (with effect from 1 July 2010)
Equity Shareholders' Funds
£140.8 million at 31 July 2010 (31 January 2010: £135.3 million)
Capital Structure
The Company's capital structure is composed solely of Ordinary Shares. At 31
July 2010 there were 116,848,386 Ordinary Shares in issue (31 January 2010:
118,348,386 Ordinary Shares).
ISA Status
The Company's shares are eligible for Individual Savings Accounts (`ISAs').
Website
The Company's website address iswww.pacific-assets.co.uk
Gearing
The Company has a committed borrowing facility of US$20 million with ING Bank
N.V. As at the date of this report no funds had been drawn down from this
facility.
Company Summary (continued)
Key Statistics
As at As at
31 July 31 January
2010 2010 % change
Share price 107.75p 104.25p +3.4
Net asset value 120.51p 114.28p +5.5
per share
Discount of share
price to net asset
value per share 10.6% 8.8% n/a
Shareholders' £140.8m £135.3m +4.1
funds
Market £125.9m £123.4m +2.0
capitalisation
Six months to One year to
31 July 31 January
2010 2010
Share price (total +4.6% +55.0%
return)
Net asset value +6.6% +56.8%
per share (total
return)
MSCI All Country +11.1% +54.2%
Asia ex Japan
Index (total
return)
Year ended Year ended
31 January 31 January
Dividends 2010 2009
Final dividend per 1.29p 1.29p
share
Half Year's Highs/ High Low
Lows
Net asset value 133.59p 111.98p
per share
Share price 127.50p 106.0p
Discount†2.7% 11.3%
Notes
†Discount high - Narrowest discount in period
Discount low - Widest discount in period
Source: Morningstar
Chairman's Statement
The past six months has been a period of transition. As discussed in my
statement in the Annual Report, First State Investment Management (UK) Limited
assumed responsibility for managing your Company's portfolio on 1 July. At the
same time, Frostrow Capital LLP became responsible for administration and
marketing.
First State has lost no time in restructuring the portfolio and this process is
now largely complete. A full report from your new Investment Manager can be
found beginning on page five of this document.
The Company will incur approximately £400,000 of costs in connection with the
change to its investment management arrangements, representing 0.3% of the
Company's net assets. Slightly more than half of these costs have been
reflected in the first half of the Company's financial year and the remainder
will be reflected in the second half.
Based on new advice from the Company's tax advisers, the Company recently
submitted a claim to the Taipei National Tax Administration in Taiwan for the
recovery of tax withheld on income arising from the Company's investments in
Taiwan. The claim covers the years 2005 to 2009 and, if it is successful, the
Company expects to recover approximately £500,000 net of costs. However, as the
likelihood, timing and the quantum of the recovery remain uncertain, no amount
receivable has been recorded in the Company's accounts.
Performance
During the six month period, the Company's net asset value total return was
6.6%, compared to a total return from the MSCI All Country Asia ex Japan Index
of 11.1%. The share price total return for the period was 4.6%. During the
period, the share price discount to net asset value per share widened slightly
from 8.8% to 10.6% as at 31 July 2010.
Share Ownership and Discount Policy
As anticipated, some shareholders who held their shares through the previous
Manager's savings plans have now disposed of their interest in the Company.
This has enabled a number of new shareholders who share your Board's enthusiasm
for the new management arrangements to join the register. On behalf of the
Board, I would like to thank these new shareholders for their support whilst
also thanking existing shareholders for their continuing vote of confidence in
the future.
The Company renewed its authority to repurchase its own shares at the Annual
General Meeting in June. Through this authority it is intended to manage the
discount between the Company's share price and the net asset value per share.
During the past six months there was only one repurchase of 1.5 million shares
on 13 July 2010 at a discount of 10.3% to the Company's ex income net asset
value per share. Since the end of July there have been no further repurchases
of shares as at the date of this report.
Gearing
The Company has a US$20 million facility which provides it with the ability to
introduce gearing when it is considered appropriate to do so. This facility was
not utilised during the period and up to the date of this report.
Outlook
With the new Investment Manager in place and the restructuring of the portfolio
virtually complete, we look forward to a new and more prosperous chapter in
your Company's future. Whilst there are a number of concerns about the
short-term economic outlook, I am confident that patient investors in the Asian
Pacific region will be well rewarded over time.
David Nichol
Chairman
27 September 2010
Investment Manager's Report
Portfolio transition
Having assumed responsibility for management of the Company's portfolio on 1
July, we spent the first part of the month transitioning the portfolio towards
our own Asia Sustainability strategy. We inherited 52 companies and have
retained seven. We have now purchased shares in a further 39 of our favourite
companies. As such the portfolio transition is now 95% complete. By
Sustainability, we are not referring to "green", "clean tech" or "ethical"
investing. Rather, we are simply setting out to invest in those companies we
believe are particularly well positioned to deliver long-term returns in the
face of the huge development challenges Asia faces today. Land and water
scarcity, resource constraints, population pressure and extreme levels of
poverty are just some of the challenges Asian companies are increasingly coming
up against. For some, these challenges represent key risks to their business.
For others, they represent opportunities to build good quality business
franchises that will stand the test of time. It is the latter group in which we
hope to invest. This for example, does not mean buying every solar or wind
company which lists in Asia - currently we have no exposure to either sector.
Our focus is on finding attractively valued companies with good quality
management teams and strong franchises capable of performing in both good and
bad times. Currently none of the listed wind, solar or biofuel companies in
Asia meet our investment criteria.
As with all First State Asian strategies, the portfolio is constructed from the
bottom up, paying no regard to company, sector or country benchmark weightings.
The top ten companies collectively represent over 40% of your Company's net
assets and less than 4% of the MSCI All Country Asia ex Japan Index, the
Company's benchmark. At first glance, it may seem a risky strategy to stray so
far from the benchmark. We hold the opposite view. The object of investing
should surely be to deliver attractive, long-term absolute returns, not beat
any particular index. Admittedly relative performance is a key commercial
reality. As the Company's new Investment Manager we believe this approach will
ensure that the Company outperforms the benchmark by at least 1.75% per annum
on a rolling three year period as well as ranking in the top third of its peer
group on a rolling three year basis.
We believe that the best way to achieve this relative outperformance is by
viewing risk simply as the risk of losing money, rather than deviation from an
arbitrary index. For example, six of the top ten stocks in the benchmark index
presently are government-owned and controlled. We doubt that any of them are
run in the long-term interests of minority shareholders. Many of them also come
with significant corporate governance, environmental or social risks. In short,
the risk of losing clients' money by investing in them is simply too great,
regardless of their position in the benchmark index.
As a result there will be times when our performance will differ considerably
from the benchmark. For example, during very strong markets we would usually
expect to lag the benchmark and our peers as it tends to be conceptual, lower
quality, highly priced stocks that rise the fastest. On the flipside, our focus
on buying attractively priced, good quality companies results in a stronger
focus on capital preservation. When markets correct, we hope to fall
significantly less than the benchmark. Or put another way, our strongest
relative performance comes during down markets. This may sound like a strange
investment proposition and our approach is certainly not suitable for
short-term investors with a trading focus who are hoping to `time' Asian
markets. However, for Asian investors with a longer time horizon, we believe
this focus on capital preservation as well as capital growth is the best way to
ensure long-term absolute returns in the asset class.
Outlook
We are amazed by just how little the global financial system has changed since
its fall from grace in 2008. For many global banks the majority of their
profits continue to come from short-term trading gains. Remuneration policies
still encourage short-term risk taking with little, if any, regard for the
longer-term consequences. Lending practices remain far from prudent, while
debt-fuelled over-consumption remains de rigueur. All this makes us extremely
cautious about the global backdrop in which many of our Asian companies
operate. A second crisis in the West would hit our companies hard. Even without
a second crisis, Asia is in danger of succumbing under the weight of monetary
largesse currently being doled out in the West in response to the current
financial situation. Asset price inflation remains a problem, particularly in
China, where the property bubble has yet to be pricked despite recent
Government intervention. Goods and services inflation has returned to almost
every Asian country. Despite this, markets remain remarkably sanguine, for now
at least. Although no company is immune from inflation, some are more
vulnerable than others. We have very little direct exposure to companies which
would be hurt by rising interest rates. Very few of our companies sell goods or
services which are bought with credit cards for example. We do, however, own
shares in a number of `utility' companies ranging from bus and subway companies
in China, Hong Kong and Singapore to our favourite water company in the
Philippines. In most cases, the regulatory regime in theory allows rising input
prices to be passed on fairly quickly. However, in practice, if inflation does
get out of control, Governments are usually quick to clamp down on such pass
through mechanisms. As a result, we have reduced our exposure to these
companies and continue to favour companies with at least some degree of pricing
power.
Meanwhile, an Asian consumer bubble is inflating in a very similar way to the
Asian resources bubble of 2007. Three years ago it became very fashionable to
forecast out Asian per capita demand for natural resources and commodities to
infinity and beyond. Commodity prices soared on the back of simple straight
line forecasts - if China reaches the US average coal consumption of two tons
per person, total Chinese demand will be greater than current world production
of 2.5bn tons. If the per capita grain consumption in China rises from 300kg to
reach the US average of 900 kg, China will consume two thirds of all the grain
currently harvested globally. Today the straight line forecasting is aimed very
much at consumer companies. Most good quality consumer companies in China and
India are now trading on price to earnings multiples of over thirty times.
Almost every week we are invited to a new investor conference showcasing
consumer companies. Asian consumer funds are now commonplace while the variety
of Asian consumer ETFs available is frightening. 60 page consumer research
reports are landing on our desks, heralding bizarre strap-lines such as "The
Great Leap Forward - China, trade-up and the consumer staples opportunity" -
although perhaps this is a more prescient title than we are giving the authors
credit for!
We are continually told just how little laundry powder, toothpaste and hair
products the Asian consumer uses relative to their Western counterpart. For
investors this logic is seductive. It is also dangerously misleading, for three
reasons.
First, in India and China at least 700 million people still live on extremely
low incomes of one or two US dollars a day. As a result, `effective demand'
from Asian consumers tends to lag `potential demand' significantly.
Millionaires in Shanghai do not consume 2,739 times as much toothpaste as rural
farmers living on one dollar a day.
Second, for many markets, supply has the potential to keep pace with demand.
There is no shortage of toothpaste in the world or toothpaste-making machines.
Neither is there a shortage of companies
ready to sell toothpaste, particularly when returns are so high.
Colgate-Palmolive India makes a return on the capital it employs in India of
over 150%. Which budding entrepreneur is not going to try his hand at
toothpaste in Asia with this kind of return? Market growth counts for nothing
if companies cannot defend the supernormal returns many of them are currently
enjoying. While Colgate may well be able to fight them off, it seems unlikely
that this will be achieved without some contraction of margins and
profitability.
Third, there is simply not enough ecological room left globally for China or
India to pursue the same consumption intensive development model followed by
every `developed' country to date. This is by now a well-worn argument put
forward by environmental think tanks and alternative national accounting
bodies. Recently, however, we have started to hear the same argument made by
mainstream policymakers in both China and India. For example, we met a Chinese
government official who talked convincingly about how China will be consumption
constrained and needs to pursue a strategy of "spiritual consumption" - by
which he meant a shift towards spending on leisure and recreational activities
rather than "stuff". With considerable reluctance we are steadily reducing our
stakes in our favourite consumer companies. They are increasingly priced for
perfection, and we have yet to meet the perfect company.
Instead, the majority of our investment ideas continue to come from outside
China and India in markets which seem to have avoided most of the hubris to
date. In particular, we have increased our holdings in what we consider to be
the best quality banks in Korea, the Philippines, Taiwan and Thailand.
Typically these are old fashioned banks, working hard to gather deposits and
doing their best to make careful prudent loans with the proceeds. They tend to
trade at somewhere between one and two times their book value and are typically
at attractive stages of their respective credit cycles. Loan growth is
recovering and credit quality is improving. As a result, the risk/return
profile seems attractive to us.
Within the portfolio there are two companies whose business activities are
within the Asia Pacific region but the shares of which are traded on stock
markets elsewhere. This international approach to the management of a company's
affairs is likely to become an increasing trend in future but does not alter
the spirit of your Company's objective to invest in the Asia Pacific region.
David Gait
Senior Investment Manager
First State Investment
Management (UK) Limited
27 September 2010
Portfolio
as at 31 July 2010
% of
Total
Market assets less
valuation current Country of
Company Sector* £'000 liabilities incorporation
MTR Corporation Industrials 7,656 5.4 Hong Kong
LG Corporation Industrials 6,980 5.0 South Korea
Taiwan Semiconductor Information 6,360 4.5 Taiwan
Technology
E.Sun Financial Financials 5,772 4.1 Taiwan
Holdings
Manila Water Utilities 5,593 4.0 Philippines
Singapore Post Industrials 5,445 3.9 Singapore
Kasikornbank Financials 5,214 3.7 Thailand
Hong Kong & China Gas Utilities 5,072 3.6 Hong Kong
SMRT Corporation Industrials 4,986 3.5 Singapore
Transport Industrials 4,777 3.4 Hong Kong
International Holdings
Top ten investments 57,855 41.1
Samsung Fire & Marine Financials 4,425 3.1 South Korea
Insurance
Oil Search Energy 4,347 3.1 Papua New
Guinea
Swire Pacific Financials 4,310 3.1 Hong Kong
Philippine Long Telecom Services 4,175 3.0 Philippines
Distance Telephone
Oversea-Chinese Financials 3,656 2.6 Singapore
Banking
Marico Consumer Staples 3,634 2.6 India
Singapore Telecom Services 3,522 2.5 Singapore
Telecommunications
Delta Electronics Information 3,505 2.5 Taiwan
Technology
Wipro Information 3,297 2.3 India
Technology
Delta Electronics Information 3,106 2.2 Thailand
(Thailand) Technology
Top twenty investments 95,832 68.1
Shinsegae Consumer Staples 3,061 2.2 South Korea
Dabur India Consumer 3,007 2.1 India
Discretionary
Ping An Insurance Financials 2,954 2.1 China
Group
Chroma ATE Information 2,866 2.0 Taiwan
Technology
Chunghwa Telecom Telecom Services 2,500 1.8 Taiwan
SembCorp Industries Industrials 2,446 1.7 Singapore
Bharti Airtel Telecom Services 2,376 1.7 India
Indraprastha Gas Energy 2,148 1.5 India
Banco de Oro Unibank Financials 2,044 1.4 Philippines
Hindustan Unilever Consumer Staples 1,912 1.4 India
Top thirty investments 121,146 86.0
Other investments (16) 12,175 8.7
Total investments 133,321 94.7
Net current assets 7,493 5.3
Shareholders' funds 140,814 100.0
*MSCI sector classifications
Unaudited Income Statement
for the six months ended 31 July 2010
Six months ended Six months ended Year ended
31 July 2010 31 July 2009 31January 2010
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Gains on
investments
held at
fair value - 7,883 7,883 - 35,912 35,912 - 48,665 48,665
through profit
or loss
(Losses)/gains
on derivative
arrangements - (28) (28) - - - - 39 39
Exchange - 586 586 - (238) (238) - (204) (204)
differences
Income 1,942 - 1,942 1,293 - 1,293 2,545 - 2,545
Investment (186) (560) (746) (121) (363) (484) (281) (842) (1,123)
management fee
Other expenses (720) - (720) (425) - (425) (728) - (728)
Net return
before finance
costs and 1,036 7,881 8,917 747 35,311 36,058 1,536 47,658 49,194
taxation
Interest (2) - (2) - - - - - -
payable
Return on
ordinary
activities 1,034 7,881 8,915 747 35,311 36,058 1,536 47,658 49,194
before tax
Tax on (178) - (178) (219) 140 (79) (173) - (173)
ordinary
activities
Return
attributable
to
equity 856 7,881 8,737 528 35,451 35,979 1,363 47,658 49,021
shareholders
Return per
Ordinary
Share (note 0.72p 6.67p 7.39p 0.45p 29.95p 30.40p 1.15p 40.27p 41.42p
2)
The Total column of this statement is the Income Statement of the Company. The
Revenue and Capital columns are supplementary to this and are both prepared
under guidance published by the Association of Investment Companies.
All items in the above statement derive from continuing operations. The Company
had no recognised gains or losses other than those declared in the Income
Statement.
No operations were acquired or discontinued during the period.
Unaudited Balance Sheet
as at 31 July 2010
As at As at As at
31 July 31 July 31 January
2010 2009 2010
£'000 £'000 £'000
Fixed assets
Investments 133,321 121,169 134,419
Current assets
Debtors 1,160 1,331 236
Cash at bank and on deposit 7,470 969 819
8,630 2,300 1,055
Creditors (amounts falling due within (1,137) (1,257) (220)
one year)
Net current assets 7,493 1,043 835
Net assets 140,814 122,212 135,254
Capital and reserves
Share capital 14,606 14,794 14,794
Share premium account 4 4 4
Capital redemption reserve 1,648 1,460 1,460
Special reserve 14,572 16,222 16,222
Capital reserve 106,491 86,403 98,610
Revenue reserve 3,493 3,329 4,164
Equity shareholders' funds 140,814 122,212 135,254
Net asset value per Ordinary Share 120.51p 103.26p 114.28p
(note 3)
Unaudited Reconciliation of Movements
in Shareholders' Funds
Six months Six months Year ended
ended ended 31 January
31 July 2010 31 July 2009 2010
£'000 £'000 £'000
Opening shareholders' funds 135,254 87,760 87,760
Repurchase of own shares for (1,650) - -
cancellation
Return for the period 8,737 35,979 49,021
Dividends paid (1,527) (1,527) (1,527)
Closing shareholders' funds 140,814 122,212 135,254
Summarised Unaudited Statement of Cash Flows
for the six months ended 31 July 2010
Six months Six months Year
ended ended ended
31 July 31 July 31 January
2010 2009 2010
£'000 £'000 £'000
Net cash inflow from operating 301 581 952
activities
Servicing of finance (2) - -
Financial investment
Purchases of investments and (123,732) (29,136) (47,524)
derivatives
Sales of investments and 132,675 27,410 45,243
derivatives
Net cash inflow/(outflow) from 8,943 (1,726) (2,281)
financial investment
Equity dividends paid (1,527) (1,527) (1,527)
Net cash inflow/(outflow) before 7,715 (2,672) (2,856)
financing
Financing - repurchase of own (1,650) - -
shares for cancellation
Increase/(decrease) in cash 6,065 (2,672) (2,856)
Reconciliation of net cash flow to
movement
in net funds
Increase/(decrease) in cash 6,065 (2,672) (2,856)
resulting from cash flows
Exchange differences 586 (238) (204)
Movement in net funds 6,651 (2,910) (3,060)
Net funds at 1 February 819 3,879 3,879
Net funds at 31 July/31 January 7,470 969 819
Reconciliation of net return
before finance costs and
taxation to net cash flow from
operating activities
Net return before finance costs 8,917 36,058 49,194
and taxation
Gains on investments (7,883) (35,912) (48,665)
Losses/(gains) on derivative 28 - (39)
arrangements
Exchange differences (586) 238 204
Irrecoverable withholding tax on (121) (89) (173)
investment income
Changes in working capital and
other
non-cash items (54) 286 431
Net cash inflow from operating 301 581 952
activities
Notes to the Accounts
for the six months ended 31 July 2010
1. Basis of preparation
The financial statements have been prepared under the historical cost
convention, except for the measurement of investments which are valued at fair
value, and in accordance with applicable accounting standards, the Statement of
Recommended Practice `Financial Statements of Investment Trust Companies and
Venture Capital Trusts' dated January 2009 and the UK Accounting Standards
Board's Statement `Half Yearly Financial Reports'.
The same accounting policies that were used for the year ended 31 January 2010
have been applied in these financial statements.
2. Return per share
The total return per share price is based on the total return attributable to
shareholders of £8,737,000 (six months ended 31 July 2009: return of £
35,979,000; year ended 31 January 2010: return of £49,021,000) and on
118,190,927 shares (six months ended 31 July 2009: 118,348,386; year ended 31
January 2010: 118,348,386), being the weighted average number of shares in
issue.
The revenue return per share price is calculated by dividing the net revenue
return attributable to shareholders of £856,000 (six months ended 31 July 2009:
return of £528,000; year ended 31 January 2010: return of £1,363,000) by the
weighted average number of shares in issue as above.
The capital return per share price is calculated by dividing the net capital
return attributable to shareholders of £7,881,000 (six months ended 31 July
2009: return of £35,451,000; year ended 31 January 2010: return of £47,658,000)
by the weighted average number of shares in issue as above.
3. Net asset value per share
The net asset value per share is based on the net assets attributable to
shareholders of £140,814,000 (31 July 2009: £122,212,000; 31 January 2010: £
135,254,000) and on 116,848,386 shares in issue (31 July 2009:118,348,386; 31
January 2010:118,348,386).
4. Withholding tax reclaim
During the period the Company submitted a claim to the Taipei National Tax
Administration in Taiwan for the recovery of tax withheld on income arising
from the Company's investments in Taiwan. The claim covers the years 2005 to
2009 and, if it is successful, the Company expects to recover approximately £
500,000 net of costs. However, the likelihood, timing and the quantum of the
recovery remain uncertain and as at 31 July 2010 no amount receivable has been
recorded in the Company's accounts.
5. 2010 accounts
These are not statutory accounts in terms of Section 434 of the Companies Act
2006 and are unaudited. Statutory accounts for the year to 31 January 2010,
which received an unqualified audit report, have been lodged with the Registrar
of Companies. No statutory accounts in respect of any period after 31 January
2010 have been reported on by the Company's auditors or delivered to the
Registrar of Companies.
Earnings for the first six months should not be taken as a guide to the results
for the full year.
Statement of Principal Risks and Uncertainties
The Company's assets consist principally of listed securities and its main
risks are therefore market related. The Company is also exposed to currency
risk in respect of the markets in which it invests. Other risks faced by the
Company include external, investment and strategic, regulatory, operational,
and financial risks. These risks, and the way in which they are managed, are
described in more detail under the heading Principal Risks and Risk Management
within the Business Review in the Company's Annual Report for the year ended 31
January 2010. The Company's principal risks and uncertainties have not changed
materially since the date of that report and are not expected to change
materially for the remaining six months of the Company's financial year.
Related Party Transactions
During the first six months of the current financial year no material
transactions with related parties have taken place which have affected the
financial position or the performance of the Company during the period.
Statement of Directors' Responsibilities in
Respect of the Interim Report
We confirm that to the best of our knowledge:
• the condensed financial statements have been prepared in accordance with the
Statement `Half Yearly Financial Reports' issued by the UK Accounting Standards
Board and give a true and fair view of the assets, liabilities, financial
position and return of the Company;
• the Chairman's Statement and the Investment Manager's Report (together
constituting the Interim Management Report) include a fair review of the
information required by the Disclosure and Transparency Rules (`DTR') 4.2.7R,
being an indication of important events that have occurred during the first six
months of the financial year and their impact on the financial statements;
• the Statement of Principal Risks and Uncertainties shown above is a fair
review of the information required by DTR 4.2.7R; and
• the condensed financial statements include a fair review of the information
required by DTR 4.2.8R, being related party transactions that have taken place
in the first six months of the financial year and that have materially affected
the financial position or performance of the Company during the period, and any
changes in the related party transactions described in the last Annual Report
that could do so.
The Interim Report has not been reviewed or audited by the Company's auditors.
On behalf of the Board
D B Nichol
Chairman
27 September 2010
How to Invest
Alliance Trust Savings Limited
The Company's shares are available through savings plans (including Investment
Dealing Accounts, ISAs and SIPPs) operated by Alliance Trust Savings Limited,
which facilitates both regular monthly investments and lump sum investments in
the Company's shares. Shareholders who would like information on the savings
plans should call Alliance Trust Savings Limited on 01382 573737 or log on to
www.alliancetrust.co.uk/alliancetrustsavings/ or email
contact@alliancetrust.co.uk. Calls to this number may be recorded for
monitoring purposes.
An Individual Savings Account (`ISA') is a tax efficient method of investment
for an individual which gives the opportunity to invest in the Company up to £
10,200 in the tax year 2010/2011 and in subsequent tax years when they
subscribe to a Stocks and Shares ISA.
The preceding two paragraphs have been issued and approved by Alliance Trust
Savings Limited. Alliance Trust Savings Limited of PO Box 164, 8 West
Marketgait, Dundee, DD1 9YP, is registered in Scotland with number SC98767.
Alliance Trust Savings Limited provides investment products and services and is
authorised and regulated by the Financial Services Authority. It does not
provide investment advice.
Share Dealing Service
An internet and telephone dealing service is available through the Company's
registrar, Equiniti. This provides a simple way for UK shareholders of Pacific
Assets Trust plc to buy or sell the Company's shares. For full details and
terms and conditions simply log onto www.shareview.co.uk/dealing or call 08456
037037 between 8.00am and 4.30pm Monday to Friday. This service is only
available to shareholders of Pacific Assets Trust plc who hold shares in their
own name, with a UK registered address and who are aged 18 and over.
Shareview Dealing is provided by Equiniti Financial Services Limited which has
issued and approved the preceding paragraph. Equiniti Financial Services
Limited, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA is
registered in England and Wales with number 6208699. Equiniti Financial
Services Limited is authorised and regulated by the Financial Services
Authority.
Risk Warnings
Past performance is no guarantee of future performance. The value of your
investment and any income from it may go down as well as up and you may not get
back the amount invested. This is because the share price is determined by the
changing conditions in the relevant stock markets in which the Company invests
and by the supply and demand for the Company's shares. As the shares in an
investment trust are traded on a stock market, the share price will fluctuate
in accordance with the supply and demand and may not reflect the underlying net
asset value of the shares; where the share price is less than the underlying
value of the assets, the difference is known as the `discount'. For these
reasons investors may not get back the original amount invested. Although the
Company's shares are denominated in sterling, it may invest in stocks and
shares which are denominated in currencies other than sterling and to the
extent they do so, they may be affected by movements in exchange rates. As a
result the value of your investment may rise or fall with movements in exchange
rates. Investors should note that tax rates and reliefs may change at any time
in the future. The value of ISA tax advantages will depend on personal
circumstances. The favourable tax treatments of ISAs may not be maintained.
Frostrow Capital LLP
Company Secretary
0203 008 4913
www.frostrow.com
30 September 2010
Please note that up to date information on the Company, including daily NAV,
share prices and fact sheets, can be found at www.pacific-assets.co.uk
END
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