Interim Management Statement

RNS Number : 6964E

Henderson TR Pacific Inv. Trust PLC

11 April 2011

 



HENDERSON TR PACIFIC INVESTMENT TRUST PLC

HENDERSON GLOBAL INVESTORS

11 April 2011

HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Interim Management Statement

Review of the period from 1 January 2011 to 31 March 2011

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

Portfolio Comments:Asian markets were volatile over the period as turmoil in the Middle East led to a sharp spike in oil prices. This setback was compounded by the Tohoku earthquake and tsunami in Japan. The worst performing markets were Taiwan and India. In India, equities were hit by the combined effect of higher oil prices and steadily rising interest rates together with a major corruption scandal involving the awarding of mobile phone operator licenses. Taiwan was hit by concerns about higher oil prices and fears that exports might be affected by disruptions to electronic component suppliers in Japan.

Korea was the best performing market as many investors saw its exporters as the main beneficiaries of earthquake related disruptions to Japanese technology and car exports. China also performed well as inflation appeared to moderate and the government took measures to support economic stability.

Your Company took profits in Chinese cement company China National Building Materials, online media group, SINA, as well as Tencent and casino operator Sands China. Positions in India were also reduced through the sale of Ashok Leyland, and property company Unitech.

New positions were taken in the Korean travel company, Hana Tours, and Korean advertising leader, Cheil Worldwide, CP ALL, the Thai operator of 7-11 convenience stores, as well as Hong Kong conglomerate, Citic Pacific, which is in the process of ramping up the production of its new iron ore project in Australia.

The Company underperformed the benchmark during the quarter as a result of its exposure to airlines and other travel plays such as Ctrip, the Chinese online travel company. These companies all suffered from fears that higher oil prices and the Tohoku earthquake would damage spending by Asian travellers. The disappointing performance of your company was also due to weaker than expected earnings from coal companies, Adaro in Indonesia and China Coal Energy. The mobile phone chip company, Mediatek also disappointed as a result of increasing competition.

Looking ahead the global economy remains relatively strong, company earnings continue to exceed expectations and valuations do not look particularly stretched. However, inflation remains a danger for the region either in the form of external shocks leading to higher commodity prices or the internally generated inflation that is inevitable caused by the continued strength of Asian economic growth.

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HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Interim Management Statement

Portfolio Comments continued

On balance, we believe that these inflationary pressures can be contained through a combination of higher interest rates, currency appreciation and administrative measures. Our focus on investing in companies with strong long term growth prospects, pricing power and highly scalable business models should be well suited to this environment and we are optimistic that we can deliver positive returns for our in investors in 2011.

Net Asset Value: The net asset value at 31 March 2011 was 210.8p including income and 210.5p excluding income.

Gearing: At the end of the period the Company's gearing was 14% (at 31 December 2010: 14%)

Dividend:  An interim dividend, in lieu of a final dividend, of 2.90p per ordinary share, in respect of the year ended 31 December 2009, was paid on 1 April 2011 to holders registered on 18 March 2011.  The ex-dividend date was 16 March 2011.

Share Capital:  During the period the Company bought back 75,000 ordinary shares at a cost of £132,000.  The total voting rights in the Company at 31 March were 161,376,407.

There are no other material events or transactions to report.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Financial Position Source: Henderson/Fact Sheet

	at 31 March 2011	at 31 December 2010
Ordinary share price	189.5p	201.3p
Discount	10.1%	9.1%
Total gross assets	£387m	£408m
Net asset value (cum income)	210.8p	221.5p
Net asset value (ex income)	210.5p	218.2p
Gearing	14%	14%
Yield	1.53%	0.94%
Total Expense Ratio	1.20%	0.90%

Performance at 31 March 2011 (total return % change) (Source: Datastream)

	YTD	1 month	3 months	6 months	1 year	3 years
Net asset value	-2.3	8.6	-2.3	6.2	11.3	50.8
Share price	-4.3	8.2	-4.3	4.8	10.7	50.1
Index *	-1.1	7.9	-1.1	6.2	13.4	44.8

* The Index is the MSCI All Country Asia ex-Japan Index (sterling adjusted)

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HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Interim Management Statement

THE PORTFOLIO (Source: Henderson/Fact Sheet)

	% of total assets		% of total assets
Top 10 Investments	at 31 March 2011		at 31 December 2010
Industrial & Commercial Bank of China	3.6	Samsung Electronics	3.9
CNOOC	3.1	ICICI Bank	3.2
Samsung Electronics	3.1	Industrial & Commercial Bank of China	3.1
Agile Property	3.0	Sun Hung Kai Properties	3.1
Sun Hung Kai Properties	3.0	Tencent Holdings	3.0
HTC	2.9	Advanced Semiconductor	2.9
Bank Mandiri	2.8	Sands China	2.9
ICICI	2.8	CNOOC	2.8
Tencent	2.7	Agile Property	2.8
Bangkok Bank	2.7	Bank Mandiri	2.7
	------		------
Top 10 =	29.7	Top 10 =	30.4
	------		------

Geographic Breakdown	% at 31 March 2011	% at 31 December 2010
China	32.9	32.7
Taiwan	13.9	15.6
Korea	12.7	10.3
India	8.3	12.3
Singapore	8.0	8.0
Hong Kong	6.9	7.9
Thailand	6.7	4.5
Malaysia	4.9	2.8
Indonesia	4.7	4.8
Vietnam	1.0	1.1
	-------	-------
	100.0 ====	100.0 ====

Sector Breakdown	% at 31 March 2011	% at 31 December 2010
Financials and Property	39.7	39.9
Information Technology	22.0	25.4
Industrials	14.1	12.4
Consumer	13.1	9.4
Energy	9.1	9.2
Materials	2.0	3.7
	-------	-------
	100.0 ====	100.0 ====

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HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Interim Management Statement

PROFILE

Objective: The objective of the 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

Fund Manager: Andrew Beal

Fund Manager Profile: Andrew has managed Henderson TR Pacific since September 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 Director and Head of Investment Trusts Henderson Global Investors Telephone: [phone]

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Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

 

END

 

 

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