Interim Management Statement

RNS Number : 2230P

Henderson Asian Growth Trust plc

22 October 2012

 



HENDERSON ASIAN GROWTH TRUST PLC

HENDERSON GLOBAL INVESTORS

HENDERSON ASIAN GROWTH TRUST PLC

Interim Management Statement

Review of the period from 1 July 2012 to 30 September 2012

The Directors of Henderson Asian Growth Trust plc hereby announce the following:

Portfolio Comments:

Market Background

Asian markets were up over the quarter as another round of quantitative easing measures were announced in the US and the European Central Bank said it would provide support for economies in Europe that signed up to structural reform. In Asia, India was the best performer as the government introduced a series of key reforms. Korea also performed well in response to the potential boost to export earnings from an improvement in the outlook for developed economies. China lagged the region as economic growth slowed, government  stimulus measures disappointed and there was uncertainty ahead of the transition of power to a new generation of leaders in November.

Performance

Performance over the quarter was slightly behind the benchmark. Dongfeng Motor in China was one of the main negatives as a result of its exposure to the Honda and Nissan brands following anti-Japanese demonstrations relating to the disputed Daioyu Islands. Low cost airline AirAsia was also weak as new competition emerged in its core Malaysian short haul business. The main positives  were Gamevil, Hana Tours and Cheil Worldwide in Korea. Gamevil benefitted from new game launches and further development of its business in China and Japan. Hana was helped by rapid growth in the Korean package tour market and Cheil performed well as it continued to capture a growing share of Samsung Group's rising marketing spend.

Transactions

New purchases included Indian property developer DLF which has aggressive plans for non-core asset disposals over the next two years. China's largest life insurer China Life was also purchased as its move towards premium products is expected to drive a turnaround in growth. These purchases were funded by the complete sale of Industrial and Commercial Bank of China and profit taking in some  of the Company's better performing shares.

Outlook

At the margin, the US economy has stabilised and the more extreme fears regarding  the Eurozone have been deferred. The turnaround in Indian equities demonstrates the potential for a strong rebound in markets  across Asia if policymakers respond more aggressively to the threat  from weak overseas growth and internally generated economic imbalances. We expect more pro-active policies across the region in the form of fiscal stimulus and monetary easing. This will be particularly important to the performance of Chinese equities over the next few months.

Net Asset Value: The net asset value at 30 September 2012 was 188.06p including income and 185.09p excluding income (at 30 June 2012: 177.84p including income and 175.99p excluding income).

Gearing: At the end of the period the Company had gearing of 4.7% (at 30 June 2012: 2.8%)

Share Capital:  During the period the Company bought back 3,810,242 ordinary shares at a cost of £6,109,000.  The total voting rights in the Company at 30 September 2012 were 152,202,270.

There are no other material events or transactions to report.

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HENDERSON ASIAN GROWTH TRUST PLC

Interim Management Statement

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Financial Position Source: Henderson/Fact Sheet

	at 30 September 2012	at 30 June 2012
Ordinary share price	165.00p	160.50p
Discount	12.3%	9.8%
Total gross assets	£300m	£286m
Net asset value (cum income)	188.06p	177.84p
Net asset value (ex income)	185.09p	175.99p
Gearing	4.9%	2.8%
Yield	2.0%	2.0%
Total Expense Ratio	0.9%	0.9%

Performance at 30 September 2012 (total return % change) (Source: Datastream)

	YTD	1m	3m	6m	12m	3y
Net asset value	14.1	6.5	5.7	-1.1	17.7	15.1
Share price	10.3	3.5	2.8	-5.7	14.9	12.1
Benchmark *	11.7	5.3	6.3	0.9	15.7	21.9

* 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 2012		% of total assets at  30 June 2012
Samsung Electronics	3.9	Ind & Comm Bk of China	3.7
Hyundai Motor	3.2	China Overseas Land	3.4
Petrochina	3.2	Petrochina	3.3
SK Innovation	3.1	Samsung Electronics	3.3
China Life Insurance	3.0	Prada	3.2
Tencent	3.0	Hyundai Glovis	3.2
Hyundai Glovis	2.9	Agile Property	3.2
Hana Tour Service	2.9	Zhuzhou CSR Times Electric	3.1
Baidu	2.9	Hyundai Motor	3.1
Cheil Worldwide	2.9	Citic Sec	3.1
	------		------
Top 10 =	31.0	Top 10 =	32.6
	------		------

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HENDERSON ASIAN GROWTH TRUST PLC

Interim Management Statement

Geographic Breakdown	% at 30 September 2012	% at 30 June 2012
China	33.4	35.2
South Korea	24.0	22.0
India	11.5	7.6
Taiwan	6.3	6.9
Hong Kong	5.5	7.3
Thailand	4.9	6.0
Indonesia	4.4	4.7
Malaysia	4.3	5.6
Singapore	3.5	3.1
Vietnam	1.3	1.6
Philippines	0.9	0.0
	-------	-------
	100.0 ====	100.0 ====

Sector Breakdown	% at 30 September 2012	% at 30 June 2012
Consumer Services	33.8	36.4
Financials	24.8	24.4
Technology	17.0	15.9
Industrials	12.2	13.0
Oil & Gas	12.2	10.3
	-------	-------
	100.0 ====	100.0 ====

PROFILE

Objective: The objective of Henderson Asian Growth Trust plc is to seek a high rate of total return from companies operating primarily in the Asian 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 ASIAN GROWTH TRUST PLC

Interim Management Statement

Fund Manager: Andrew Beal

Fund Manager Profile: Andrew Beal has managed Henderson Asian Growth Trust plc (formerly Henderson TR Pacific Investment Trust plc) since 2005. Previously, he was Lead Portfolio Manager, Emerging Markets and Pacific Rim, for Nicholas Applegate Capital Management.

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 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

Annual Dividend Paid - April

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

Henderson Asian Growth Trust plc is managed by Henderson Global Investors Limited.  

For further information, please contact:

Andrew Beal Fund Manager Henderson Asian Growth Trust plc Telephone: [phone]

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

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.

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