Interim Management Statement

RNS Number : 8990N

Pacific Assets Trust PLC

18 June 2010

 



Pacific Assets Trust plc

Interim Management Statement

For the Period from 1 February 2010 to 18 June 2010

Investment Objective

Pacific Assets Trust plc aims to achieve long term capital growth through investment in selected companies in the Asia Pacific region and the Indian sub-continent, but excluding Japan and Australasia.

Performance Summary

Capital Return	As at  31 May 2010	As at 31 January 2010	Movement
Net asset value (000s)	£148,577	£135,254	9.9%
Net asset value per share	125.54p	114.28p	9.9%
MSCI All Country Asia ex Japan Index	313.07	284.11	10.2%
Share price (mid market)	111.25p	104.25p	6.7%
Discount	11.4%	8.8%
Gearing‡	(0.7)%	(0.6)%
Total Return#			For the four month period to 31 May 2010
Net asset value			9.9%
MSCI All Country Asia ex Japan Index			11.2%
Share price			6.7%

Sources: F&C Investment Business Limited, Datastream.

‡ - Gearing: borrowings (net of cash)/shareholders' funds

# - All total returns are based on net dividends re-invested

Review for the Period

The Company's net asset value total return for the four month period ended 31 May 2010 was 9.9 per cent. For comparison purposes, the total return from the MSCI All Country Asia ex Japan Index was 11.2 per cent.

Despite the region's strong underlying economic fundamentals, returns were marred by rising European sovereign debt issues and increasing policy tightening by the Chinese authorities. These factors, when combined, raised uncertainty over the sustainability of the global economic recovery, leading to a reduction in risk appetite. Consequently, the higher beta asset class of Asia suffered profit taking by institutional investors and subsequent downward revisions to analysts earnings forecasts leading to the  MSCI All Country Asia (ex Japan) Index giving up some of the healthy gains made in the earlier months.  

Nonetheless, from a long term perspective, with rising domestic consumption and improving international competitiveness, Asia's structural growth story remains compelling.

Top Ten Holdings

Company	Country	31/5/10 Percentage of total assets
Perusahaan Gas Negara	Indonesia	4.2
Shinhan Financial	South Korea	3.4
Kasikornbank	Thailand	3.2
Hon Hai Precision	Taiwan	3.2
DBS Group	Singapore	3.1
NHN Corporation	South Korea	3.1
China Shineway	Hong Kong	2.9
Wistron	Taiwan	2.8
China Water Affairs	Hong Kong	2.7
Advanced Semiconductor	Taiwan	2.6
Total		31.2

Geographical Analysis

Country	31/5/10 Percentage of total assets		31/1/10 Percentage of total assets
Hong Kong	21.6		19.8
South Korea	18.4		19.3
Taiwan	15.6		15.8
China	15.4		16.6
Indonesia	9.2		9.9
India	6.2		6.1
Thailand	5.4		4.3
Singapore	4.9		5.9
Malaysia	2.6		1.7
Liquidity	0.7		0.6
Total	100.0		100.0

Management

On 4 May 2010 the Company announced that, as a result of disappointing investment performance in recent years the Board had conducted a thorough review of the management arrangements. This resulted in the Asia Pacific/Global Emerging Markets team at First State Investment Management (UK) Limited being appointed as the Company's new investment manager.

At the same time, it was decided to separate the investment management function from the administration of the Company. Frostrow Capital LLP will provide administrative and marketing services. The Board believes this new arrangement has considerable long term advantages. 

The investment objective of the Company is unchanged and the new investment manager will continue to pursue long term capital growth through investment in selected companies in the Asia Pacific region and the Indian sub-continent, but excluding Japan and Australasia.

The new management arrangements will start on 1 July 2010.

Significant Events

The Board is not aware of any significant events or transactions which have occurred since 31 May 2010 and the date of publication of this statement which would have a material impact on the financial position of the Company.

Daily and Key Information

This statement and further information regarding the Company, including daily net asset values published since the end of the period and monthly factsheets, can be found at the Company's website www.pacific-assets.co.uk.

For further information please contact:

F&C Investment Business Limited

Tel: [phone]

 

END

 

 

IMSBUGDLUGBBGGI