Interim Results
Henderson TR Pacific Inv. Trust PLC
7 August 2001
6 August 2001
HENDERSON TR PACIFIC INVESTMENT TRUST PLC
Unaudited Preliminary Interim Results
for the six months to 30 June 2001
Henderson TR Pacific Investment Trust plc, one of the largest investment
trusts specialising in the Far East, excluding Australasia and Japan, reports
interim results for the six months ended 30 June 2001, which showed a positive
total return to shareholders in line with the benchmark index.
Key Points:
* Positive total return to shareholders achieved during the period despite
difficult market conditions
* Policy during the period was to avoid taking undue risks
* Geographical redistribution of portfolio during period, increasing
weightings in South Korea, Taiwan and China; reduction in Hong Kong and
Singapore
* Share buybacks made in July for the first time
(Unaudited) (Unaudited) (Audited)
30 June 2001 30 June 2000 31 Dec 2000
Net asset value 86.4p 120.6p 85.7p
Share Price 74.0p 110.3p 77.5p
Discount 14.4% 8.5% 9.6%
Performance to 30 June 2001
6 months 12 months
Net asset value (i) 0.4% -28.7%
Share price (i) -3.8% -32.4%
Peer group (i) and (ii) -0.2% -22.5%
Benchmark Index (iii) 0.1% -25.3%
(i) Source: AITC Services Ltd (net income reinvested but excluding current
year revenue).
(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. Source : Datastream (gross income
reinvested).
Regarding prospects, Iain Dale, the Chairman, says:
Much depends on the success of the authorities in the USA tackling the
downturn across the manufacturing sector there. The downturn, especially in
technology sectors, has been more severe than expected, which may delay
recovery, but we believe other cyclical sectors have scope to recover first.
As such we plan to move towards a fully invested position.
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HENDERSON TR PACIFIC INVESTMENT TRUST PLC
Unaudited Preliminary Interim Results
for the six months to 30 June 2001
Extract from the Chairman's Statement:-
In the six months to 30 June there was a positive total return to shareholders
of 0.8% as net asset value per share rose to 86.4p from 85.7p. This compared
to a positive total return from our benchmark index of 0.1% and a small
decline for our investment trust peer group of -0.2%. (Comparisons of our
portfolio to the benchmark index on a geographical and sector basis are shown
in appendices 1 and 3).
Far East Stock Markets
Far East stock markets had been particularly weak towards the end of 2000.
Investors feared the impact of the widely expected US economic downturn on the
region's economies. In 2001 most took heart from interest rate reductions in
the USA which served to boost global liquidity. There was then a two way pull
in investor sentiment as hopes of recovery were deflated by the severity of
the downturn in manufacturing industry accompanied by relentless downgrades of
corporate profit forecasts.
Policy
Our policy in the first six months of 2001 was to remain almost fully invested
in view of the relatively attractive valuations of Far East stock markets but
we were careful not to take undue risk against the benchmark index in view of
the uncertain and unsettled economic background. Our loan of US$30 million was
not fully utilised.
Enhanced Corporate Governance
An initiative to analyse the levels of corporate governance and social
responsibility among Far East investments held by the company began this year
with the commencement of a review of holdings in potentially sensitive
sectors. Concerns raised will be taken up with company management.
Nonetheless, Henderson TR Pacific's prime objective continues to be the
pursuit of capital growth.
Assistant Manager
From April 2001 our previous Assistant Manager, Kirsteen Morrison, returned to
London from Singapore to take up a position in Henderson's Socially
Responsible Investment Team. We wish her well and thank her for her help and
support. Kirsteen has been replaced by William Pitman, head of Henderson's Far
East Investment Team, who is based in Singapore. Michael Watt's
responsibilities as Manager remain unchanged.
Share Buy Backs
Share buy backs of up to 14.9% of the issued capital were again approved by
shareholders at the last Annual General Meeting. There was little opportunity
to purchase stock on the criteria approved by the Board over the first six
months of the year. Modest purchases have since been made at an average
discount of 16.6%. We will continue to take the opportunity which a
historically wide discount provides to improve the company's net asset value.
Outlook
Much depends on the success of the authorities in the USA in tackling the
downturn across the manufacturing sector there. If the cycle is normal a
recovery should be apparent before the year end which is expected to help
stock market sentiment in the Pacific region. The downturn, especially in
technology-related sectors, has been more severe than expected which may delay
recovery, but we believe other cyclical sectors have scope to recover first.
As such, we plan to move towards a fully invested position.
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HENDERSON TR PACIFIC INVESTMENT TRUST PLC
Unaudited Preliminary Interim Results
for the six months to 30 June 2001
STATEMENT OF TOTAL RETURN (incorporating the revenue account)
for the half year ended 30 June 2001
(Unaudited) (Unaudited) (Audited)
Half year ended Half year ended Year ended
30 June 2001 30 June 2000 31 December 2000
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
----- ----- ----- ------ ------ ----- ----- ----- -----
Total capital - 844 844 - (11,003)(11,003) - (81,322)(81,322)
gains/(losses)
on investments
Income 2,470 - 2,470 2,166 - 2,166 3,393 - 3,393
from fixed
asset investments
Other 370 - 370 320 - 320 956 - 956
interest receivable
and similar
income
----- ----- ----- ------ ------ ----- ----- ----- -----
Gross 2,840 844 3,684 2,486 (11,003)(8,517) 4,349(81,322)(76,973)
revenue and
capital gains/(losses)
Management (537) (537)(1,074) (477) (477) (954) (963) (963) (1,926)
fee
Other (228) - (228) (297) - (297) (603) - (603)
administrative
expenses
----- ----- ----- ------ ------ ----- ----- ----- -----
Net 2,075 307 2,382 1,712 (11,480)(9,768) 2,783 (82,285)(79,502)
return/(loss) on
ordinary activities
before interest
payable and
taxation
Interest (190) (570) (760) (204) (611) (815) (399) (1,197) (1,596)
payable
----- ----- ----- ------ ------ ----- ----- ----- -----
Net 1,885 (263) 1,622 1,508 (12,091)(10,583) 2,384(83,482)(81,098)
return/(loss) on
ordinary activities
before taxation
Taxation (481) 274 (207) (504) 289 (215) (868) 563 (305)
on net return on
ordinary activities
----- ----- ----- ------ ------ ----- ----- ----- -----
Net 1,404 11 1,415 1,004 (11,802)(10,798) 1,516(82,919)(81,403)
return/(loss) on
ordinary activities
after taxation
Final - - - - - - (514) - (514)
dividend 2000:
0.25p
Special - - - - - - (617) - (617)
Dividend 2000:
0.30p
----- ----- ----- ------ ------ ----- ----- ----- -----
- - - - - - (1,131) - (1,131)
----- ----- ----- ------ ------ ----- ----- ----- -----
Transfer 1,404 11 1,415 1,004 (11,802)(10,798) 385 (82,919)(82,534)
to/(from)
reserves
===== ===== ===== ===== ====== ====== ===== ====== ======
Return/(loss) 0.68p 0.01p 0.69p 0.49p (5.74)p (5.25)p 0.74p(40.34)p(39.60)p
per ordinary
share (Note 1)
The revenue columns of this statement represent the revenue accounts of the
company.
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HENDERSON TR PACIFIC INVESTMENT TRUST PLC
Unaudited Preliminary Interim Results
for the six months to 30 June 2001
Balance Sheet
As at 30 June 2001
(Unaudited) (Unaudited) (Audited)
At 30 June At 30 June At 31 December
2001 2000 2000
£'000 £'000 £'000
---------- ---------- -----------
Fixed assets investments:
Listed at market value - overseas 185,175 243,954 180,717
Unlisted - directors' valuation 167 2,546 1,806
---------- ---------- ----------
185,342 246,500 182,523
---------- ---------- ----------
Current assets
Debtors 1,295 1,888 435
Bank balances and short term deposits 19,225 23,977 15,002
---------- ---------- ----------
20,520 25,865 15,437
Creditors: amounts falling due within one (28,345) (4,711) (1,775)
year
---------- ---------- ----------
Net current (liabilities)/assets (7,825) 21,154 13,662
---------- ---------- ----------
Total assets less current liabilities 177,517 267,654 196,185
Creditors: amounts falling due after more - (19,816) (20,083)
than one year
---------- ---------- ----------
Total net assets 177,517 247,838 176,102
====== ====== ======
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 55,221 126,327 55,210
Revenue reserve 5,817 5,032 4,413
---------- ---------- ----------
Equity shareholders' funds 177,517 247,838 176,102
====== ====== ======
Net asset value per ordinary share (note 2) 86.4p 120.6p 85.7p
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HENDERSON TR PACIFIC INVESTMENT TRUST PLC
Unaudited Preliminary Interim Results
for the six months to 30 June 2001
Cash Flow Statement
for the half year to 30 June 2001
(Unaudited)(Unaudited) (Audited)
Half year Half year Year
ended ended ended
30 June 30 June 31 December
2001 2000 2000
£'000 £'000 £'000
--------- --------- -----------
Net cash inflow operating activities 1,038 643 1,241
Interest paid (732) (811) (1,587)
Net tax recovered - - 161
Net cash inflow from financial investments 4,458 24,637 15,674
Equity dividends paid (1,131) (514) (514)
Cash placed on short term deposit (4,801) (14,619) (2,672)
---------- -------- ---------
Net cash (outflow)/inflow before financing (1,168) 9,336 12,303
Net cash outflow from financing - (4,550) (4,550)
---------- -------- ---------
(Decrease)/increase in cash (1,168) 4,786 7,753
====== ====== ======
Reconciliation of operating revenue to net cash
inflow from operating activities
Net revenue before interest payable and taxation 2,075 1,712 2,783
Increase in accrued income (175) (225) (91)
Increase in other debtors (33) (48) (19)
(Decrease)/increase in creditors (58) (2) 42
Management charge taken to other capital (537) (477) (963)
reserves
UK income tax deducted at source (27) (102) (206)
Overseas withholding tax (207) (215) (305)
---------- -------- ----------
Net cash inflow from operating activities 1,038 643 1,241
====== ====== ======
Reconciliation of net cash inflow to movement in
net debt
(Decrease)/increase in cash as above (1,168) 4,786 7,753
Cash outflow from short term deposits 4,801 14,619 2,672
Cash outflow from financing - 4,550 4,550
---------- -------- ----------
Change in net debt resulting from cash flows 3,633 23,955 14,975
Exchange movements (658) (235) (497)
---------- -------- ----------
Movement in net debt during the period 2,975 23,720 14,478
Net debt at beginning of the period (5,081) (19,559) (19,559)
---------- -------- ----------
Net (debt)/funds at the end of the period (2,106) 4,161 (5,081)
====== ====== ======
Represented by:
Cash at bank and short term deposits 19,225 23,977 15,002
Debt falling due within one year (21,331) - -
Debt falling due after more than one year - (19,816) (20,083)
---------- ---------- ---------
(2,106) 4,161 (5,081)
====== ====== ======
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HENDERSON TR PACIFIC INVESTMENT TRUST PLC
Unaudited Preliminary Interim Results
for the six months to 30 June 2001
Notes
1. Return/(loss) per ordinary share
Revenue return per ordinary share is based on earnings of £1,404,000
(half year ended 30 June 2000: £1,004,000; year ended 31 December 2000:
£1,516,000) and on the weighted average number of ordinary shares in issue
during the period of 205,540,359 (half year ended 30 June 2000 and year
ended 31 December 2000: 205,540,359).
Capital return per ordinary share is based on net capital gains of
£11,000 (half year ended 30 June 2000: losses of £11,802,000; year ended
31 December 2000: losses of £82,919,000) and on the weighted average
number of ordinary shares in issue during the period of 205,540,359 (half
year ended 30 June 2000 and year ended 31 December 2000:205,540,359).
2. Net asset value per ordinary share
Net asset value per ordinary share is calculated on the basis of
shareholders' funds attributable to ordinary shares divided by the number
of ordinary shares in issue at 30 June 2001, being 205,540,359 (30 June
2000 and 31 December 2000: 205,540,359).
3. Share Buy-Backs
The company was granted authority to repurchase up to 30,625,513 ordinary
shares at the Annual General meeting held on 9 April 2001. As at 6 August
2001 the company has purchased 612,000 ordinary shares for cancellation
at an average discount of 16.6%. The net asset value was enhanced by £
77,000.
4. 2000 Accounts
The figures and financial information for the year ended 31 December 2000
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 include 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.
5. Interim Report
The Interim Report will be posted to shareholders in mid-August and
thereafter copies will be avilable from the registered office -
4 Broadgate, London EC2M 2DA.
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HENDERSON TR PACIFIC INVESTMENT TRUST PLC
Unaudited Preliminary Interim Results
for the six months to 30 June 2001
APPENDIX 1
Geographical Distribution of the Investment Portfolio
As at 30 June 2001 As at 31 December 2000
Company Index* Company Index*
South Korea 20.6% 17.9% 14.9% 15.9%
Taiwan 17.2% 18.7% 13.8% 19.5%
China 20.2% 9.5% 17.7% 8.3%
Hong Kong 25.9% 27.8% 31.8% 29.4%
Thailand 4.1% 2.7% 3.9% 2.6%
The 0.0% 1.3% 0.0% 1.3%
Philippines
Malaysia 2.9% 9.7% 2.9% 9.3%
Singapore 9.0% 11.1% 14.9% 12.5%
Indonesia 0.0% 1.3% 0.0% 1.2%
Vietnam 0.1% --- 0.1% ---
--------- --------- --------- ---------
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 2001
Local Currency Sterling Adjusted
South Korea 17.9% 21.9%
Taiwan 2.9% 5.1%
China 148.4% 163.9%
Hong Kong -13.6% -8.2%
Thailand 19.8% 21.9%
The Philippines -5.6% -4.4%
Malaysia -12.7% -7.3%
Singapore -11.1% -10.1%
Indonesia 5.1% -5.2%
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HENDERSON TR PACIFIC INVESTMENT TRUST PLC
Unaudited Preliminary Interim Results
for the six months to 30 June 2001
APPENDIX 3
Sector Analysis of Investments at 30 June 2001
As at 30 June 2001 As at 31 December 2000
Company Index Company Index
* *
Collective Investment
Vehicles 2.6% 0.0% 2.9% 0.0%
Computers & Peripherals 4.0% 3.5% 2.3% 2.8%
Consumption 12.3% 8.0% 15.5% 7.9%
Electrical Equipment 3.3% 2.3% 3.6% 2.4%
Finance & Real Estate 24.1% 34.4% 28.0% 36.4%
Resources & Heavy
Industrial 6.3% 11.3% 5.1% 10.3%
Semiconductors &
Electronics 14.0% 14.9% 10.4% 14.5%
Software Services 1.1% 0.4% 1.1% 0.4%
Telecommunications 12.0% 13.6% 13.3% 15.1%
Transport & Distribution 12.7% 4.8% 11.7% 4.1%
Utilities 7.6% 6.8% 6.1% 6.1%
------- ---------- ---------- -------
100.0% 100.0% 100.0% 100.0%
====== ===== ====== ======
* MSCI AC Far East Free (ex Japan) Index Sector Weightings
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HENDERSON TR PACIFIC INVESTMENT TRUST PLC
Unaudited Preliminary Interim Results
for the six months to 30 June 2001
APPENDIX 4
List and Valuation of Investments as at 30 June 2001
% of Market % of Market
Investments Value Investments Value
£'000 £'000
CHINA 20.2 37,472 VIETNAM 0.1 195
Beijing Capital 2,680 The Vietnam Fund 195
International Airport
Beijing North Star 2,502
China Mobile (HK) 4,507 SOUTH KOREA 20.6 38,224
China Resources 5,044
Enterprise
China Travel 2,003 Atlantis Kosdaq Fund 1,769
China Unicom 4,950 Cheil Communications 1,150
CNOOC 2,427 Kookmin Bank 4,777
Cosco Pacific 3,774 Korea Electric Power 4,768
Huaneng Power 3,259 Korea Telecom 3,193
International
Legend Holdings 1,582 Korea Telecom Freetel 2,623
China Heartland Fund 2,511 NCSoft 2,101
Want Want 2,233 Pohang Iron & Steel 1,352
Samsung Electronics 5,242
TAIWAN 17.2 31,893 Samsung Fire and Marine 3,182
Shinhan Bank 3,656
Bank Sinopac 2,263 Shinsegae Department 2,054
Store
China Development 2,938 SK Telecom 2,357
Industrial Bank
China Steel 2,529
Evergreen Marine 1,717 SINGAPORE 9.0 16,605
Formosa Plastic 2,429
Hon Hai Precision 2,982 CapitaLand 2,743
President Chain Store 2,863 Datacraft Asia 2,408
Synnex Technology 3,005 Overseas Chinese 3,399
Banking Corporation
Taiwan Cellular 2,451 Singapore Press 3,486
Taiwan Semiconductor 3,701 Singapore Telecom 2,218
United Micro 2,640 Venture Manufacturing 2,351
Electronics
Winbond Electronics 2,375
HONG KONG 25.9 47,952 THAILAND 4.1 7,691
*ChinaVest Partnership 167 Grammy Entertainment 921
Computer & Technologies 2,306 Hana Microelectronics 883
Dah Sing Financial 3,678 Minor Food 607
Henderson Land 3,154 PTTEP 1,558
Development
Hong Kong & China Gas 6,290 Shin Corporations 2,167
Hutchinson Whampoa 2,867 Siam Cement 1,555
Johnson Electric 6,199
Li & Fung 7,468
MTR Corporation 3,048
Sun Hung Kai Properties 3,213
Swire Pacific 3,688
Technology Venture 461
Television Broadcasts 4,492
Varitronix 921
International
MALAYSIA 2.9 5,310
----------
Malaysian International 3,031 TOTAL INVESTMENTS 100.0 185,342
Shipping
Resorts World 2,279 ======
* Unlisted Investment
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HENDERSON TR PACIFIC INVESTMENT TRUST PLC
Unaudited Preliminary Interim Results
for the six months to 30 June 2001
- ENDS -
For further information contact:
Michael Watt, Director and Manager
Iain Dale, Chairman
Tel: 020 7410 4100
David Hardy
Binns & Co. PR
Tel: 020 7786 9600
Stephen Westwood
Head of Investment Trusts
Tel: 020 7410 5517
Vicki Staveacre
Henderson Press Office
Telephone: 020 7410 4028
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