Interim Management Statement

RNS Number : 7178U

Henderson TR Pacific Inv. Trust PLC

20 October 2010

 



HENDERSON TR PACIFIC INVESTMENT TRUST PLC

HENDERSON GLOBAL INVESTORS

HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Interim Management Statement

Review of the period from 1 July 2010 to 30 September 2010

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

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Market Background

Overall, Asian markets performed well in sterling terms in the third quarter of 2010 led by India, Indonesia, Thailand and the Philippines. These markets were strong as a result of domestically driven economic growth leading to currency appreciation versus the US dollar and a sharp pick up in foreign investment flows into bond and equity markets. Many companies in these markets have been beneficiaries of lower interest rates and a pick up in domestic revenue growth leading to sharp upgrades in market consensus earnings estimates.

China, Korea and Taiwan performed relatively poorly compared to the rest of Asia. This was a result of the mixed economic news in overseas markets, particularly the US, which dragged down the more externally exposed Taiwanese and Korean markets and further uncertainty about Chinese government policy towards the bank and property sectors. Investors continued to worry that Chinese growth was unsustainable and that a property led surge in bank loan delinquencies would inevitably follow a slowdown in economic growth.

Performance

Your Company's performance was broadly in line with markets over the period under review. There was a positive contribution from holdings in India and Indonesia particularly ICICI Bank and Bank Mandiri. Holdings in HTC, EVA and China Airlines in Taiwan also performed well but this was offset by poor performance from technology shares and China. Technology shares were weak as a result of negative sentiment towards the outlook for revenues in the US and Europe. Underperformance in China was particularly concentrated in the bank and property sectors.

Transactions

Your Company added to Maruti Suzuki in India for its market leading exposure to the booming Indian auto market. Hyundai Motor was also added for its rapidly growing exposure to Asian and Latin American car markets and growing market share in the US. New positions were added in the operating companies of the Hong Kong and Singapore Exchanges. Both companies will benefit from a pick up in market trading volumes as well as a significant pipeline of initial public offerings and development of new products. China Coal Energy was added in anticipation of a recovery in thermal coal prices following supply disruptions and growing demand as well as the company's strong production profile over the next three years. These purchases were funded by sales in China Dongxiang, China Life Insurance and Kookmin Bank.

Outlook

Indications that the global economy may avoid a "double dip" recession together with an apparent commitment from Western governments and Japan to continue unconventional monetary easing have created a very positive outlook for Asian equities. We expect capital to continue to flow into the region and for markets to rerate over the next twelve months. We continue to position your Company to capture the returns from further market rises. The main risk to this positive scenario is that a more rapid recovery in the West and/or Asia leads to higher inflationary expectations and higher interest rates. We believe that it is too early to become unduly concerned about this risk but it is likely to become more of a concern for markets as we move through 2011.

Net Asset Value: The net asset value at 19 October 2010 was 213.6p including income and 210.1p excluding income.

Gearing: At the end of the period the Company had gearing of 8% (at 30 June 2010: 9%)

Dividends:  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 30 September 2010	at 30 June 2010
Ordinary share price	183.75p	163.3p
Discount	10.2%	9.8%
Total gross assets	£356m	£317m
Net asset value (cum income)	204.5p	181.0p
Net asset value (ex income)	201.2p	179.3p
Gearing	8%	9%
Yield	1.16%	1.16%
Total Expense Ratio	0.85%	0.85%

Performance at 30 September 2010 (total return % change) (Source:  Datastream)

	YTD	1m	3m	6m	12m	3y
Net asset value	14.2	11.5	12.2	4.8	21.0	22.2
Share price	12.3	11.9	12.6	5.6	20.6	23.8
Benchmark *	15.2	8.6	10.7	6.8	21.6	20.8

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

THE PORTFOLIO (Source: Henderson/Fact Sheet)

Top 10 Investments

% of total assets at 30 September 2010		% of total assets at  30 June 2010
Samsung Electronics	3.7	Industrial & Commercial Bank of China	4.1
Sun Hung Kai Properties	3.7	Bank Mandiri	4.1
ICICI Bank	3.6	Samsung Electronics	3.8
Ctrip.com	3.5	Sands China	3.6
Tencent Holdings	3.4	Ctrip.com	3.6
Industrial & Commercial Bank of China	3.4	Sun Hung Kai Properties	3.5
HTC	3.4	Tencent Holdings	3.5
Bank Mandiri	3.3	Mediatek	3.3
CNOOC	3.1	CNOOC	3.3
Sands China	3.0	China Life Insurance	3.2
	------		------
Top 10 =	34.1	Top 10 =	36.0
	------		------

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HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Interim Management Statement

Geographic Breakdown	% at 30 September 2010	% at 30 June 2010
China	34.9	37.4
Taiwan	15.2	16.8
India	14.9	12.5
South Korea	9.9	12.5
Hong Kong	9.0	6.7
Singapore	8.4	6.7
Indonesia	3.4	4.0
Thailand	2.3	2.0
Vietnam	1.2	1.4
Malaysia	0.8	-
	-------	-------
	100.0 ====	100.0 ====

Sector Breakdown	% at 30 September 2010	% at 30 June 2010
Financials	44.0	44.7
Technology	19.7	20.0
Consumer Services	13.0	16.0
Industrials	10.0	11.8
Oil & Gas	5.2	5.5
Basic Materials	4.2	2.0
Consumer Goods	3.9	-
	-------	-------
	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 Beal has managed Henderson TR Pacific since 2005. Previously, he was Lead Portfolio Manager, Emerging Markets and Pacific Rim for Nicholas Applegate Capital Management where his PIMCO-NACM Asia Pacific fund was the recipient of the 2005 Lipper award for consistency of risk-adjusted returns over 3 years.

Andrew has specialised in the Asia Pacific region since 1994 and describes himself as a stock picker with a growth bias. He targets companies with accelerating earnings trading at discounts to their long-term franchise.

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

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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