Interim Management Statement

RNS Number : 9830K

Henderson TR Pacific Inv. Trust PLC

28 April 2010

 



HENDERSON TR PACIFIC INVESTMENT TRUST PLC

HENDERSON GLOBAL INVESTORS

28 April 2010

HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Interim Management Statement

Review of the period from 1 January 2010 to 31 March 2010

The Directors of Henderson TR Pacific Investment Trust plc hereby announce the following:

Henderson TR Pacific ahead of Asian markets in the first quarter of 2010, up 9.1% in sterling terms.

Portfolio Comments: Asian markets were up during the first quarter of 2010 with the MSCI Asia ex- Japan Index returning 7.9% in sterling terms, led by Indonesia and Thailand. China lagged the region on fears that the Chinese authorities would be forced to tighten monetary policy faster than previously expected as a result of very strong economic growth and sharp rises in property prices in Beijing and Shanghai.

The relative performance of your Trust was ahead of the Index. The large overweight position in China detracted from performance, particularly interest rate sensitive shares such as Agile Property and Industrial and Commercial Bank of China. Sands China, the Macau based casino and resort group, was a very strong positive contributor as was port operator, China Merchant Holdings. Air China also performed well on rising passenger numbers and a rebound in cargo traffic. Other notable contributors were ICICI Bank in India and Bank Mandiri in Indonesia. Both banks have passed a cyclical peak in new provisions for non-performing loans and are starting to see a pick up in new lending and higher net interest margins.

We added new positions in Bangkok Bank in Thailand and LG Display in Korea. Bangkok Bank is expected to benefit from higher lending margins, improving asset quality and higher fee income leading to a doubling in earnings over the next three years. The political situation in Thailand remains a concern but current valuation levels reflect some of the risk of further difficulties in the months ahead. LG Display is heavily exposed to rapid growth in the flat panel TV market in China and other emerging markets. The industry has consolidated over the last few years leading to a much more rational approach to capacity expansion and pricing. This has led to a structural improvement in industry margins and investment returns. We expect this to continue and believe that LG Display represents excellent value at close to historic trough valuations.

Over the course of the next 12 months, some of the extraordinary fiscal and monetary measures used to stabilise growth in 2009 will be rolled back. This may lead to fears of a policy mistake by governments and central banks against a backdrop of a still fragile recovery in the West. Increased economic and policy uncertainty is occurring at a time when market valuations have recovered from exceptionally depressed levels, leaving markets vulnerable to setbacks until it becomes clear that the global economy and Asia in particular have established themselves on a sustainable growth path. Your Company's focus on bottom up stock selection should work well in the current environment and we remain confident that the medium term outlook for Asia remains very attractive.

Gearing: At the end of the period the Company's gearing was 8.5% (at 31 December 2009: 7.8%)

Dividend:  An interim dividend, in lieu of a final dividend, of 1.90p per ordinary share, in respect of the year ended 31 December 2009, was paid on 1 April 2010 to holders registered on 12 March 2010.  The ex-dividend date was 10 March 2010.

Share Capital:  During the period the Company did not buy back any ordinary shares.

There are no other material events or transactions to report.

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HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Interim Management Statement

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Financial Position Source: Henderson/Fact Sheet

	at 31 March 2010	at 31 December 2009
Ordinary share price	174.0p	165.5p
Discount	9.4%	8.0%
Total gross assets	£337m	£323m
Net asset value (cum income)	192.0p	179.9p
Net asset value (ex income)	191.9p	177.8p
Gearing	8.5%	7.8%
Yield	1.09%	1.45%
Total Expense Ratio	0.85%	0.85%

Performance at 31 March 2010 (total return % change) (Source: Funddata)

	6 months	1 year	3 years	5 years	10 years
Net asset value	15.4	74.8	49.3	129.5	63.0
Share price	14.2	72.9	50.7	134.6	67.1
Benchmark *	13.9	64.1	50.2	137.1	101.4

* The benchmark is the MSCI All Country Asia ex-Japan Index weighted average

THE PORTFOLIO (Source: Henderson/Fact Sheet)

Top 10 Investments

	% of total assets		% of total assets
	at 31 March 2010		at 31 December 2009
Industrial & Commercial Bank of China	4.0	Industrial & Commercial Bank of China	4.4
Samsung Electronics	3.9	Tencent	4.2
Tencent	3.8	Agile Property	3.8
Mediatek	3.8	Mediatek	3.8
Bank Mandiri	3.5	China Life Insurance	3.6
Agile Property	3.5	Samsung Electronics	3.6
Sands China	3.5	Sun Hung Kai Properties	3.5
Sun Hung Kai Properties	3.5	Bank Mandiri	3.4
Ctrip.Com International	3.5	DBS	3.2
ICICI Bank	3.4	Ctrip.Com International	3.2
	------		------
Top 10 =	36.4	Top 10 =	36.7
	------		------

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HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Interim Management Statement

Geographic Breakdown	% at 31 March 2010	% at 31 December 2009
China	37.9	38.0
Taiwan	16.6	16.8
South Korea	12.9	10.3
India	12.6	12.1
Hong Kong	6.9	11.8
Singapore	6.3	6.4
Indonesia	3.5	3.4
Vietnam	2.0	1.2
Thailand	1.3	0.0
Malaysia	0.0	0.0
	-------	-------
	100.0 ====	100.0 ====

Sector Breakdown	% at 31 March 2010	% at 31 December 2009
Financials	45.2	47.8
Technology	20.7	17.6
Consumer Services	14.9	13.5
Industrials	13.8	15.9
Oil & Gas	2.9	2.9
Basic Materials	2.5	2.3
	-------	-------
	100.0 ====	100.0 ====

PROFILE

Objective: The objective of Henderson TR Pacific Investment Trust plc is to seek a high rate of total return from companies operating primarily in the Pacific region excluding Japan and Australasia.

Prospects: High levels of growth, particularly in comparison with the US and Europe, continue to provide the potential for attractive long term returns.

Benchmark: MSCI All Country Asia ex-Japan Index

Sector: Asia Pacific excluding Japan

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HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Interim Management Statement

Fund Manager: Andrew Beal

Fund Manager Profile: Andrew took over management of Henderson TR Pacific in September 2005.  He has 16 years investment experience including 11 years with Schroders and 4 years in the US with Nicholas Applegate Capital Management. His PIMCO-NACM Asia Pacific fund was the recipient of the 2005 Lipper award for consistency of risk adjusted returns over 3 years. His investment style is growth orientated with an emphasis on long term capital appreciation. He targets companies with accelerating earnings trading at discounts to their long term franchise value

Board of Directors:David Robins (Chairman), Hugh Aldous, Christopher Keljik, David Brief, Struan Robertson, Alexandra Mackesy.

Key Dates:

Year End - 31 December

Report and Accounts posted - March

Annual General Meeting - April/May

Annual Dividend Paid - April

Website: The Company has its own website at www.hendersontrpacific.com where you will find further details about the Company, including up to date NAV, daily share prices and downloadable literature.

Henderson TR Pacific Investment Trust plc is managed by Henderson Global Investors Limited.  

For further information, please contact:

Andrew Beal Fund Manager Henderson TR Pacific Investment Trust plc Telephone: [phone]

James de Sausmarez Head of Investment Trusts Henderson Global Investors Telephone: [phone]

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