Interim Management Statement

RNS Number : 6164Q

Henderson TR Pacific Inv. Trust PLC

21 October 2011

 



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 2011 to 30 September 2011

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

 Portfolio Comments:

Investment background

The third quarter was extremely difficult for global equity markets. Asia sold off sharply as a result of fears over the US economy, the ongoing Eurozone debt crisis and panic surrounding the outlook for China. Heavy selling of Asian assets by international investors also led to weakness in Asian currencies, particularly the Korean Won. Indonesia, the Philippines and Thailand were relative outperformers over the period with China, Korea and India lagging the regional benchmark.

Performance

The third quarter performance of your Trust was poor largely owing to an overweight position in China. Holdings in Industrial and Commercial Bank of China as well as Agile Property were weak as a result of fears over the Chinese economy. Sands China was also weak following previous strong performance and Gome fell on market misgivings about the setting up of a property joint venture with the company's majority shareholder. Samsung Electronics performed well as it continued to deliver strong growth in its smartphone business. Cheil Worldwide, the media group, also performed well as a result of Samsung's heavy marketing spending.

Activity

Key purchases over the period included Zhuzhou CSR Times Electric, the highly profitable supplier of heavy electrical motors to the Chinese railway industry. A new holding was also added in Citic Securities, one of China's leading investment banks and stockbrokers. Key sales to fund these purchases included Bharat Heavy Electrical, the Indian engineer, which faces increased competition in the India power equipment market. Ping An, the Chinese insurer, was also sold as rising costs have led to a deterioration in the outlook for profit growth.

Outlook

The global outlook remains uncertain, although investors have discounted a great deal of bad news regarding the outlook for the rest of the year. We believe that China's problems are cyclical in nature and that the government retains substantial policy flexibility to support the economy. The situation in Europe and the US remains difficult. The direction of markets will be determined by progress towards  solving the Eurozone debt  crisis and

whether or not the US can avoid lapsing into recession.

Net Asset Value: The net asset value at 30 September 2011 was 163.0p including income and 159.3p excluding income (at 30 June 2011: 212.4p including income and 210.5p excluding income).

Gearing: At the end of the period the Company had gearing of 7% (at 30 June 2011:12%)

Dividends:  An interim dividend in lieu of a final dividend of 2.90p per ordinary share, in respect of the year ended 31 December 2010 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 238,000 ordinary shares at a cost of £380,000.  The total voting rights in the Company at 30 September 2011 were 161,138,407.

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 2011	at 30 June 2011
Ordinary share price	146.3p	194.5p
Discount	10.3%	8.4%
Total gross assets	£280m	£383m
Net asset value (cum income)	163.0p	212.4p
Net asset value (ex income)	159.3p	210.5p
Gearing	7%	12%
Yield	1.98%	1.49%
Total Expense Ratio	0.9%	0.8%

Performance at 30 September 2011 (total return % change) (Source:  Datastream)

	YTD	1m	3m	6m	12m	3y
Net asset value	-26.3	-15.3	-24.6	-24.5	-19.9	41.7
Share price	-26.1	-15.6	-24.8	-22.8	-19.1	43.3
Benchmark *	-19.3	-9.2	-18.3	-18.4	13.3	49.2

* 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 2011		% of total assets at  30 June 2011
Hyundai Motor	3.6	Industrial & Commercial Bank of China	3.3
Hyundai Glovis	3.6	Sands China	3.2
Bank Mandiri	3.5	Tencent	3.1
Sands China	3.4	Agile Property	3.0
Yuanta Financial	3.2	Dongfeng Motor	3.0
Foxconn	3.1	CNOOC	2.9
Cheil Worldwide	3.1	CIMB	2.9
Dongfeng Motor	3.1	Bank Mandiri	2.9
Citic Securities	3.0	Hyundai Motor	2.9
Industrial & Commercial Bank of China	3.0	Ctrip.com	2.8
	------		------
Top 10 =	32.6	Top 10 =	30.0
	------		------

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HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Interim Management Statement

Geographic Breakdown	% at 30 September 2011	% at 30 June 2011
China	35.9	34.9
South Korea	16.8	13.7
Taiwan	11.4	11.3
India	11.4	8.7
Hong Kong	7.4	7.2
Indonesia	5.7	5.1
Thailand	4.9	5.2
Singapore	3.0	7.5
Malaysia	2.0	5.4
Vietnam	1.5	1.0
	-------	-------
	100.0 ====	100.0 ====

Sector Breakdown	% at 30 September 2011	% at 30 June 2011
Consumer Services	32.1	22.0
Financials	29.7	33.1
Technology	19.1	17.2
Industrials	12.7	17.2
Oil & Gas	5.2	6.8
Basic Materials	1.2	3.7
	-------	-------
	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 Asia 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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