Interim Management Statement

RNS Number : 7045B

Henderson Asian Growth Trust plc

19 April 2012

 



HENDERSON ASIAN GROWTH TRUST PLC

HENDERSON GLOBAL INVESTORS

19 April 2012

HENDERSON ASIAN GROWTH TRUST PLC

Interim Management Statement

Review of the period from 1 January 2012 to 31 March 2012

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

Portfolio Comments: Asian markets were strong in the first quarter as the US economy continued to improve and the European Central Bank's Long-Term Refinancing Operations (LTROs) helped to ease conditions in the European banking system. Within Asia, easing inflation has raised expectations for a greater pro-growth stance from policymakers across the region although economic data and company earnings have generally been mixed at best. Markets, however, have been prepared to look ahead to increased policy action and an improving outlook for the second half of the year.

The Company performed well over the period with very strong contribution from Tata Motors in India, following excellent sales from Jaguar Landrover. Hong Kong listed Prada also performed well as it continued to benefit from its store roll-out programme and a strong global market for luxury goods. The Chinese internet stocks were a further highlight, with  both Baidu and Tencent reporting good earnings as they continue to consolidate their positions in a rapidly expanding market. Sands China performed well: the Macau gaming and resort market continued to expand and the company prepared to launch new rooms into a very tight hotel market.

The Company acquired a new holding in Esprit, the Hong Kong based global clothing retailer, in anticipation that an aggressive restructuring programme will produce a strong recovery in earnings over the next 3 years. The Company also purchased a stake in Anhui Conch, a Chinese cement company. Its volumes and pricing are expected to improve as it continues to lead cement industry consolidation as well as benefitting from the Chinese government's social housing programme. The main sale was CITIC Pacific as it became apparent that the economics of its new iron ore project in Australia were considerably less attractive than expected.

The outlook for Asian markets remains positive, given an improving backdrop for equities created by looser monetary policy in Asia, further signs of recovery in the US and a stabilisation of conditions in Europe. The biggest challenge to the region's markets in the near term is the potential for a further spike in oil prices if tensions over Iran's nuclear programme continue to rise. It is also clear that China, India and the rest of the region will require further policy stimuli over the course of the year to sustain growth. If these are not forthcoming, then equity markets may struggle to make further gains.

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HENDERSON ASIAN GROWTH TRUST PLC

Interim Management Statement

Net Asset Value: The net asset value at 31 March 2012 was 190.8p including income and 189.84p excluding income.

Gearing: At the end of the period the Company's gearing was 5% (at 31 December 2011: 4%)

Dividend:  An interim dividend, in lieu of a final dividend, of 3.25p per ordinary share, in respect of the year ended 31 December 2011, was paid on 2 April 2012 to holders registered on 16 March 2012.  The ex-dividend date was 14 March 2012.

Share Capital:  During the period the Company bought back 3,093,061 ordinary shares at a cost of £5,467,000.  The total voting rights in the Company at 31 March 2012 were 157,795,346.

Change of Name: On 1 March 2012 the Company changed its name from Henderson TR Pacific Investment Trust plc to Henderson Asian Growth Trust plc.

There are no other material events or transactions to report.

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Financial Position (Sources: Henderson Global Investors Ltd/Fact Sheet)

	at 31 March 2012	at 31 December 2011
Ordinary share price	175.0p	152.3p
Discount	8.0%	9.1%
Total gross assets	£318m	£280m
Net asset value (cum income)	190.2p	167.5p
Net asset value (ex income)	189.8p	163.9p
Gearing	4.9%	4.1%
Yield	1.9%	1.9%
Total Expense Ratio	0.9%	0.6%

Performance at 31 March 2012 (total return % change) (Sources: Morningstar  & Datastream)

	YTD	1 month	3 months	6 months	1 year	3 years
Net asset value	15.4	-2.6	15.4	19.0	-8.3	78.8
Share price	17.0	-1.3	17.0	21.8	-6.0	79.9
Index *	10.7	-3.2	10.7	14.6	-6.5	73.4

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

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HENDERSON ASIAN GROWTH TRUST PLC

Interim Management Statement

THE PORTFOLIO (Source: Henderson Global Investors Ltd/Fact Sheet)

Top 10 Investments	% of total assets at 31 March 2012		% of total assets at 31 December 2011
Industrial & Commercial Bank of China	3.8	Industrial & Commercial Bank of China	4.1
Samsung Electronics	3.7	Samsung Electronics	3.9
Prada	3.7	Hyundai Motor	3.7
Baidu	3.5	Dongfeng Motor Group	3.6
Hyundai Motor	3.4	Hyundai Glovis	3.4
Zhuzhou CSR Times Electric	3.2	Zhuzhou CSR Times Electric	3.3
Tencent	3.1	Yuanta Financial	3.2
HTC	3.0	Agile Property	3.1
Dongfeng Motor Group	2.9	Foxconn Technology	3.1
Advanced Semiconductor Engineering	2.9	Baidu	3.0
	-------		-------
Top 10 =	33.2	Top 10 =	34.4
	====		====

Geographic Breakdown	% at 31 March 2012	% at 31 December 2011
China	33.7	36.1
South Korea	18.1	19.7
Hong Kong	10.3	8.2
Taiwan	9.4	10.7
India	8.0	6.3
Thailand	5.9	5.2
Malaysia	5.3	4.4
Indonesia	4.6	5.1
Singapore	3.3	2.9
Vietnam	1.4	1.4
	-------	-------
	100.0 ====	100.0 ====

Sector Breakdown	% at 31 March 2012	% at 31 December 2011
Consumer Services	37.3	33.1
Financials	24.3	27.8
Technology	20.3	19.3
Industrials	13.2	14.8
Oil & Gas	4.9	2.8
Basic Materials	-	2.2
	-------	-------
	100.0 ====	100.0 ====

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HENDERSON ASIAN GROWTH TRUST PLC

Interim Management Statement

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

Fund Manager: Andrew Beal

Fund Manager Profile: Andrew has managed Henderson Asian Growth Trust plc (formerly Henderson TR Pacific Investment Trust plc) 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.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 Director and Head of Investment Trusts Henderson Global Investors Telephone: [phone]

- ENDS -

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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