Interim Results
Henderson TR Pacific Inv. Trust PLC
8 August 2000
HENDERSON TR PACIFIC INVESTMENT TRUST PLC
UNAUDITED PRELIMINARY INTERIM RESULTS
for the six months to 30 June 2000
Henderson TR Pacific Investment Trust plc, one of the
largest investment trusts specialising in the Far East,
excluding Australasia and Japan, reports its results for
the six months to 30 June 2000.
Highlights:
* The markets consolidated after a strong advance in
1999
* Net asset value total return per ordinary share fell
by 4.5%
* Benchmark index, which has been significantly restructured, fell by 8.6%
(Unaudited) (Unaudited) (Audited)
Year
Half year Half year ended
ended ended 31 Dec
30 June 30 June 1999
2000 1999
Net asset value 120.6p 93.7p 125.8p
Share Price 110.3p 83.0p 117.0p
Discount 8.5% 11.4% 7.0%
Performance to 30 June 2000
6 months 12 months
Net asset value (i) -4.5% 28.6%
Share price (i) -5.6% 33.2%
Peer group (i) and (ii) -7.8% 13.2%
Benchmark Index (iii) -8.6% -0.6%
(i) Source: AITC Services Ltd. (gross income reinvested).
(ii) The company's performance is compared against a
group of seven leading investment trust competitors on
a net asset value basis.
(iii)MSCI AC Far East Free (ex Japan) Index (gross income reinvested).
Regarding prospects, Iain Dale, the Chairman, says:
'The global investment climate has become less clear as
interest rate rises in the USA may not yet have been
sufficient to cool excessive growth there. This is
expected to dominate stock market sentiment in the short
term. Looking ahead there is strong evidence of a
prolonged and broadening recovery from the 1997 financial
crisis, with a notable recovery in China. The Board
believes Asia's long term underperformance is now ending.
- 2 -
HENDERSON TR PACIFIC INVESTMENT TRUST PLC
UNAUDITED PRELIMINARY INTERIM RESULTS
for the six months to 30 June 2000
Extract from the Chairman's Statement:-
After strong performances in 1999, stock markets in the Pacific
region were mixed in the first six months of 2000. Euphoria
surrounding new technologies peaked over the first three months
and this was followed by some severe corrections. Economic
conditions continued to strengthen with significant recoveries,
particularly in the northern economies. The outlook for China
has turned strongly positive.
Results and Performance
The company had significantly outperformed the benchmark index
in 1999 with its focus on technology and growth. Market
conditions in the first six months allowed only a flat overall
performance against considerable volatility within individual
sectors and stock markets. The small negative total return to
shareholders over the first six months of 2000 was better than
the return achieved by either the benchmark index or the peer
group. Comparisons of our portfolio to the benchmark on a
geographical and sector basis at the year end and at 30 June are
shown in Appendices 1 and 3.
Sir Kerry St. Johnston
It is sad to have to report the forthcoming retirement of my
long-standing colleague, Sir Kerry St. Johnston, from the Board
at the end of the year. Sir Kerry continues to be a very
important and active influence on this company, and maintains
close business interests in the Pacific region. We will miss
him greatly after 18 years as a director of the company and its
predecessor, TR Pacific Basin Investment Trust PLC.
Outlook
Stock market sentiment has been dominated by prospects for the
US economy. Higher interest rates have been steadily
implemented to slow growth there but it is not yet clear that
this can be smoothly achieved. Asian economies in particular
have benefited greatly from high exports to the USA. The latest
signs are that the slowdown in the USA will be benign and
interest rate rises are 'on hold' until this can be confirmed,
but it is still too soon to be certain. In our view, Asia's
economic recovery is beginning to spread from exports to the
domestic economies, with an important lead from China. Whatever
happens in the USA, capital is likely to flow back to Asia as
investment opportunities improve. We believe that stock markets
are now ending a period of long term underperformance against
the rest of the world.
- 3 -
HENDERSON TR PACIFIC INVESTMENT TRUST PLC
UNAUDITED PRELIMINARY INTERIM RESULTS
for the six months to 30 June 2000
STATEMENT OF TOTAL RETURN (incorporating the revenue account)
for the half year ended 30 June 2000
(Unaudited) (Unaudited)
Half year ended 30 June 2000 Half year ended 30 June 1999
Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000
------- ------ ----- ------- ------- -----
Total capital
(losses)/gains
from investments - (11,003) (11,003) - 67,165 67,165
Income from fixed
asset investments 2,166 - 2,166 1,426 - 1,426
Other interest
receivable and
similar income 320 - 320 423 - 423
------ ------- ------- ----- ------ ------
Gross revenue and
capital(losses)/gains 2,486 (11,003) (8,517) 1,849 67,165 69,014
Management fee (477) (477) (954) (356) (356) (712)
Other administrative
expenses (297) - (297) (202) - (202)
------ ------- ------ ----- ------ ------
Net return/(loss)
on ordinary activities
before finance costs
and taxation 1,712 (11,480) (9,768) 1,291 66,809 68,100
Interest payable and
similar charges (204) (611) (815) (169) (506) (675)
----- ------- ------ ----- ------ ------
Net return/(loss) on
ordinary activities
before taxation 1,508 (12,091) (10,583) 1,122 66,303 67,425
Taxation on net
return on ordinary
activities (504) 289 (215) (400) 261 (139)
----- ------ ------ ----- ------ =-----
Net return/(loss) on
ordinary activities
after taxation 1,004 (11,802) (10,798) 722 66,564 67,286
Final dividend
1999: 0.25p - - - - - -
----- ------- ------ ----- ------ ------
Transfer to/(from)
reserves 1,004 (11,802) (10,798) 722 66,564 67,286
===== ======= ======= ===== ====== ======
Return/(loss) per
ordinary share 0.49p (5.74p) (5.25p) 0.35p 32.39p 32.74p
(Note 1)
(Audited)
Year ended 31 December 1999
Revenue Capital Total
£'000 £'000 £'000
------- ------- -----
Total capital (losses)/gains
from investments - 134,459 134,459
Income from fixed asset investments 2,249 - 2,249
Other interest receivable and
similar income 618 - 618
Gross revenue and capital(losses)/gains 2,867 134,459 137,326
Management fee (705) (705) (1,410)
Other administrative expenses (474) - (474)
----- ------- -------
Net return/(loss) on ordinary activities
before finance costs and taxation 1,688 133,754 135,442
Interest payable and similar charges (343) (1,028) (1,371)
----- ------- -------
Net return/(loss) on ordinary activities
before taxation 1,345 132,726 134,071
Taxation on net return on ordinary
activities (600) 453 (147)
----- ------- -------
Net return/(loss) on ordinary activities
after taxation 745 133,179 133,924
Final dividend 1999: 0.25p (514) - (514)
----- ------- -------
Transfer to/(from) reserves 231 133,179 133,410
===== ======= =======
Return/(loss) per ordinary share 0.36p 64.80p 65.16p
(Note 1)
The revenue columns of this statement represent the revenue accounts of
the company.
- 4 -
HENDERSON TR PACIFIC INVESTMENT TRUST PLC
UNAUDITED PRELIMINARY INTERIM RESULTS
FOR THE SIX MONTHS TO 30 JUNE 2000
Balance Sheet
As at 30 June 2000
(Unaudited) (Unaudited) (Audited)
At 30 June At 30 June At 31
2000 1999 December
£'000 £'000 1999
£'000
----------- ----------- ----------
Fixed assets investments:
Listed at market value - 243,954 195,626 277,870
overseas
Unlisted - directors' 2,546 2,452 2,393
valuation
---------- --------- ----------
Total fixed asset investments 246,500 198,078 280,263
---------- --------- ----------
Current assets
Debtors 1,888 5,610 281
Bank balances and short term 23,977 12,051 3,708
deposits
---------- ---------- ----------
25,865 17,661 3,989
Creditors: amounts falling due (4,711) (4,130) (7,002)
within one year
---------- ---------- ----------
Net current 21,154 13,531 (3,013)
assets/(liabilities)
---------- ---------- ----------
Total assets less current 267,654 211,609 277,250
liabilities
Creditors: amounts falling due
after more than one year (19,816) (19,032) (18,614)
Provisions for liabilities and - (65) -
charges
---------- ---------- ----------
Total net assets 247,838 192,512 258,636
====== ====== ======
Capital and reserves
Called-up share capital 10,277 10,277 10,277
Capital redemption reserve 5,629 5,629 5,629
Special reserve 100,573 100,573 100,573
Other capital reserves 126,327 71,514 138,129
Revenue reserve 5,032 4,519 4,028
---------- ---------- ----------
Equity shareholders' funds 247,838 192,512 258,636
====== ====== ======
Net asset value per ordinary 120.6p 93.7p 125.8p
share
- 5 -
HENDERSON TR PACIFIC INVESTMENT TRUST PLC
UNAUDITED PRELIMINARY INTERIM RESULTS
FOR THE SIX MONTHS TO 30 JUNE 2000
Cash Flow Statement
for the half year to 30 June 2000
(Unaudite (Unaudit (Audited)
d) ed) Year
Half year Half ended
ended year 31
30 June ended December
2000 30 June 1999
£'000 1999 £'000
£'000
--------- -------- ---------
Net cash inflow from operating 643 833 1,078
activities
Interest paid (811) (656) (1,342)
Total tax recovered - 802 805
Net cash inflow/(outflow) from 24,637 (1,980) (14,956)
financial investments
Equity dividends paid (514) (2,056) (2,056)
Cash (placed on)/withdrawn from (14,619) 1,835 5,816
short term deposit
--------- -------- ---------
Net cash inflow/(outflow) before 9,336 (1,222) (10,655)
financing
Net cash (outflow)/inflow from (4,550) - 4,621
financing
--------- -------- ---------
Increase/(decrease) in cash 4,786 (1,222) (6,034)
====== ====== ======
Reconciliation of operating revenue
to net cash inflow from operating
activities
Net revenue before interest payable 1,712 1,291 1,688
and taxation
(Increase)/decrease in accrued (225) 161 360
income
(Increase)/decrease in other debtors (48) (103) 20
(Decrease)/increase in creditors (2) 11 34
Management charge taken to other (477) (356) (705)
capital reserves
UK income tax deducted at source (102) (85) (164)
Overseas withholding tax (215) (86) (155)
--------- -------- ---------
Net cash inflow from operating 643 833 1,078
activities
====== ====== ======
Reconciliation of net cash inflow to
movement in net debt
Increase/(decrease) in cash as above 4,786 (1,222) (6,034)
Cash outflow/(inflow) from short 14,619 (1,835) (5,816)
term deposits
Cash outflow/(inflow) from financing 4,550 - (4,621)
--------- -------- ---------
Change in net debt resulting from 23,955 (3,057) (16,471)
cash flows
Exchange movements (235) (911) (75)
--------- -------- ---------
Movement in net debt during the year 23,720 (3,968) (16,546)
Net debt at beginning of the period (19,559) (3,013) (3,013)
--------- -------- ---------
Net funds/(debt) at the end of the 4,161 (6,981) (19,559)
period
====== ====== ======
Represented by:
Cash at bank and short term deposits 23,977 12,051 3,708
Debt falling due within one year - - (4,653)
Debt falling due after more than one (19,816) (19,032) (18,614)
year
--------- -------- ---------
4,161 (6,981) (19,559)
====== ====== ======
- 6 -
HENDERSON TR PACIFIC INVESTMENT TRUST PLC
UNAUDITED PRELIMINARY INTERIM RESULTS
FOR THE SIX MONTHS TO 30 JUNE 2000
Notes
1. Return per share
Revenue return per ordinary share is based on earnings
attributable of £1,004,000 (half year ended 30 June 1999:
£722,000; year ended 31 December 1999: £745,000) and on the
weighted average number of ordinary shares in issue of
205,540,359 (30 June and 31 December 1999: 205,540,359).
Capital return per ordinary share is based on net capital
losses attributable of £11,802,000 (half year ended 30 June
1999: gains of £66,564,000; year ended 31 December 1999: gains
of £133,179,000) and on the weighted average number of ordinary
shares in issue of 205,540,359 (30 June and 31 December 1999:
205,540,359).
2. Net asset value per share
Net asset value per share is calculated on the basis of
shareholders' funds attributable to ordinary shares divided by
the number of shares in issue at 30 June 2000, being
205,540,359 ordinary shares (30 June 1999 and 31 December 1999:
205,540,359).
3. 1999 Accounts
The figures and financial information for the year ended 31
December 1999 are extracted from the latest published accounts
of the company and do not constitute statutory accounts for
that year. Those accounts have been delivered to the Registrar
of Companies and included the report of the auditors which was
unqualified and did not contain a statement under either
section 237(2) or 237(3) of the Companies Act 1985.
4. Share Buy-Backs
The company has not yet used the powers to buy-back its own
issued ordinary shares as authorised by shareholders at the
Annual General Meeting held on 10 April 2000.
5. Interim Report
The Interim Report will be posted to shareholders in August and
will be available from the Registered Office at 3 Finsbury
Avenue, London, EC2M 2PA thereafter.
- 7 -
HENDERSON TR PACIFIC INVESTMENT TRUST PLC
UNAUDITED PRELIMINARY INTERIM RESULTS
FOR THE SIX MONTHS TO 30 JUNE 2000
APPENDIX 1
Geographical Distribution of the Investment Portfolio
As at 30 June 2000 As at 31 December 1999
Company Index* Company Index*
South Korea 25.2% 20.6% 27.7% 23.0%
Taiwan 21.5% 18.8% 19.6% 19.7%
China 13.5% 9.7% 2.8% 0.8%
Hong Kong 19.5% 25.5% 23.1% 31.7%
Thailand 5.2% 2.4% 6.9% 4.7%
The Philippines 0.3% 1.1% 1.6% 2.0%
Malaysia 3.8% 9.6% 3.0% 0.0%
Singapore 10.9% 11.0% 15.2% 15.3%
Vietnam 0.1% 0.0% 0.1% 0.0%
Indonesia 0.0% 1.3% 0.0% 2.8%
--------- --------- --------- ---------
100.0% 100.0% 100.0% 100.0%
===== ===== ===== =====
* MSCI AC FarEast Free (ex Japan) Index Country Weightings
APPENDIX 2
Stock Market Performance
Half year to 30 June 2000
Local Currency Sterling Adjusted
South Korea -20.1% -13.6%
Taiwan -2.2% 6.0%
China -1.1% 5.3%
Hong Kong -4.8% 1.1%
Thailand -32.4% -31.1%
The Philippines -28.4% -29.0%
Malaysia 2.6% 9.2%
Singapore -17.2% -15.0%
Indonesia -23.9% -34.7%
- 8 -
HENDERSON TR PACIFIC INVESTMENT TRUST PLC
UNAUDITED PRELIMINARY INTERIM RESULTS
FOR THE SIX MONTHS TO 30 JUNE 2000
APPENDIX 3
Sector Analysis of Investments at 30 June 2000
As at 30 June 2000 As at 31 December 1999
Company Index* Company Index*
Collective Investment
Vehicles 2.9% 0.0% 1.4% 0.0%
Computers & Peripherals 9.3% 3.4% 6.9% 3.2%
Consumption 16.1% 7.6% 12.5% 7.9%
Electrical Equipment 4.0% 2.3% 2.8% 2.0%
Finance & Real Estate 14.8% 29.5% 12.6% 41.3%
Resources & Heavy
Industrial 8.3% 10.0% 7.8% 9.6%
Semiconductors &
Electronics 23.2% 18.9% 27.5% 14.9%
Software Services 0.0% 1.8% 2.7% 0.0%
Telecommunications 10.8% 16.7% 18.4% 11.4%
Transport &
Distribution 6.3% 4.0% 4.6% 4.1%
Utilities 4.3% 5.8% 2.8% 5.6%
--------- ------ --------- -------
100.0% 100.0% 100.0% 100.0%
========= ====== ========= =======
* MSCI AC Far East Free (ex Japan) Index Sector Weightings
- 9 -
HENDERSON TR PACIFIC INVESTMENT TRUST PLC
UNAUDITED PRELIMINARY INTERIM RESULTS
FOR THE SIX MONTHS TO 30 JUNE 2000
APPENDIX 4
List and Valuation of Investments as at 30 June 2000
Market Market
Value Value
% £'000 % £'000
CHINA 13.5 33,166 VIETNAM 0.1 227
Beijing Capital The Vietnam Fund 227
International Airport 2,338
China Heartland Fund 1,829
China Mobile (HK) 9,338 SOUTH KOREA 25.2 62,186
China Resource Enterprise 3,328
Cosco Pacific 4,186 Atlantis Kosdaq Fund 2,725
Guangdong Kelon 1,074 Dacom 3,354
Huaneng Power International 1,671 Housing&Commercial Bank 4,248
Legend Holdings 2,551 Hyundai Motor 2,716
Petrochina 3,422 Kook Min Bank 4,214
SHK Pearl River Delta* 477 Korea Electric Power 4,097
Want Want 1,268 Korea Telecom Freetel 2,819
Zhejiang Expressway 1,684 Korea Telecom 6,536
LG Chemical 2,381
HONG KONG 19.5 48,187 Mirae 2,021
Pohang Iron & Steel 1,528
Cheung Kong 5,442 Samsung Corporation 2,278
ChinaVest II-A* 1,305 Samsung Electronics 10,945
Hong Kong Venture Shinhan Bank 2,467
Investment Trust* 56
Hong Kong & China Gas 4,759 SK Corporation 3,552
Hutchinson Whampoa 3,309 SK Telecom 4,797
Johnson Electric Holdings 10,016 Trigem Computer 1,508
Li & Fung 10,562
Swire Pacific 3,868 SINGAPORE 10.9 26,920
Television Broadcasts 6,578
Varitronix 2,292 Chartered 5,945
International Semiconductor
City Developments 1,778
TAIWAN 21.5 53,105 Datacraft Asia 4,822
Natsteel Electronic 3,023
Acer Peripherals 2,668 Overseas Chinese 3,342
Banking Corporation
Asustek Computer 3,710 Parkway 3,385
Bank Sinopac 2,665 Singapore Press 4,625
China Steel 3,145
Chinatrust 1,993 THE PHILIPPINES 0.3 708
Compal Electronics 3,125
Evergreen Marine 2,547 Philippine Long Term 708
Equity Fund*
Far Eastern Textile 3,277
President Chain Store 3,929 THAILAND 5.2 12,704
Ritek 3,449
Siliconware Precision 4,208 Grammy Entertainment 1,190
Synnex Technology 3,692 Hana Microelectronics 4,136
Systex Corporation 985 Pizza Company 840
Taiwan Semiconductor 8,002 PTT Exploration & 1,290
Production
Winbond Electronics 5,710 Shin Corporations 2,762
Siam Cement 2,486
MALAYSIA 3.8 9,297
Malaysian International 2,618 TOTAL INVESTMENTS 100.0 246,500
Shipping
Resorts World 2,907
Unisem 3,772 * Unlisted Investments
- 10 -
HENDERSON TR PACIFIC INVESTMENT TRUST PLC
UNAUDITED PRELIMINARY INTERIM RESULTS
FOR THE SIX MONTHS TO 30 JUNE 2000
For further information contact:
Michael Watt, Director and Manager David Hardy
Iain Dale, Chairman Binns & Co. PR
Tel: 020 7410 4100 Tel: 020 7786 9600
Stephen Westwood
Head of Investment Trusts
Tel: 020 7410 5517
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