Half Yearly Report

RNS Number : 6544X

Henderson TR Pacific Inv. Trust PLC

19 August 2009

 



This announcement constitutes regulated information.

Page 1 of 11

HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Unaudited Results for the Half Year ended 30 June 2009

Henderson TR Pacific Investment Trust plc ('Henderson TR Pacific'), which seeks a high rate of total return from companies operating primarily in the Pacific region excluding Japan and Australasia, announces results for the half year ended 30 June 2009. 

Financial Highlights

Per ordinary share	(Unaudited) 30 June  2009	(Audited) 31 December 2008	%  Change
Net asset value #	140.5p	112.5p	24.9
Share price #	131.5p	101.0p	30.2
Discount	6.4%	10.2%
Gearing *	5.0%	8.5%

#	Excluding reinvested income.
*	Defined here as borrowings, less cash balances and deposits, as a percentage of
	shareholders' funds.

Performance to 30 June 2009

		6 months %	1 year   %
Net asset value total return (1)		29.5	5.7
Share price total return (2)		33.3	9.9
MSCI All Country Asia ex-Japan Index total return (2)		18.6	-0.6
Peer group (NAV) total return (3)		19.2	-3.0

(1)	Source: AIC Information Services Ltd (net income reinvested).
(2)	Source: AIC Information Services Ltd (gross income reinvested).
(3)	Source: AIC Information Services Ltd. The performance of a group of leading investment trust competitors (arithmetic average).

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  Page 2 of 11

HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Unaudited Results for the Half Year ended 30 June 2009

Interim Management Report

(incorporating the Chairman's Statement)

Review of the period including material events and transactions

Market Background

As noted in the Annual Report, our guarded optimism about the ability of Asian economies and stock markets to weather the storm of the global financial crisis in late 2008 was proved wrong. It is, therefore, with some satisfaction that we can report that Asia has led the world in the recovery from the crisis over the last few months and is well placed to build on this over the next six months and beyond. 

The application of very aggressive fiscal and monetary stimulus led by China, but followed widely across Asia, has had a very swift impact on activity in the region despite continued deterioration in exports to the West. This is largely a result of the region's low private and public sector debt and a fully functioning banking system, not weighed down by toxic assets. This has allowed a rapid expansion of credit, particularly in providing private sector funds to complement government spending in the infrastructure sector. 

There are also clear indications of a shift by policymakers around the region towards a sharper focus on policies aimed at encouraging domestic consumption, partly out of short term necessity but increasingly as part of a concerted effort to foster a more balanced model of economic growth that is less reliant on western export markets. 

We had anticipated a strong response from China and the rest of the region to the global financial crisis and had positioned ourselves accordingly. As the performance data below reveals, this strategy has paid off very well in the first six months of the current year.

Performance

Your Company's net asset value total return increased by 29.5% in the first six months of the year in sterling terms compared to an 18.6% return for the MSCI All Countries Asia ex-Japan total return benchmark index and a 19.2% return for the peer group of leading investment trusts. This performance leaves your Trust at or near the top of the peer group for the year to date and over 1, 2 and 3 years.

Outlook

Over the remainder of the year, we expect to see a further strengthening of economic activity in Asia and the potential for a rebound in the highly depressed economies of the West. This is likely to be positive for markets in the short term but may, over time, lead to concerns about the build up of inflationary pressures and the potential for a withdrawal of fiscal and monetary stimulus. The key question for markets will be the durability of the recovery in 2010.

 In this respect, we remain confident that a new, domestically driven cycle in Asia is just beginning. The outlook for the economies of the West after an initial bounce from very depressed levels in 2009 is more opaque. Your Trust's investment policy, therefore, remains focused on domestically orientated industries in Asia, within which your Portfolio Manager continues to search for those companies that offer attractive long term growth that is not fully reflected in current share price valuations.

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  Page 3 of 11

HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Unaudited Results for the Half Year ended 30 June 2009

Related Party Transactions

During the first six months of the current financial year, no transactions with related parties have taken place which have materially affected the financial position or performance of the Company during the period. Details of related party transactions are contained in the Report and Financial Statements for the year ended 31 December 2008.

Principal Risks and Uncertainties

The principal risks and uncertainties associated with the Company's business can be divided into various areas:

•	Investment objective and policy
•	Gearing
•	Market movements and performance of the portfolio

In the view of the Board these principal risks and uncertainties are as applicable to the remaining six months of the financial year as they were to the six months under review.

Directors' Responsibility Statement 

The Directors confirm that, to the best of their knowledge:

(a)	the condensed set of financial statements has been prepared in accordance with the Accounting Standards Board's Statement 'Half-Yearly Financial Reports';
(b)	the interim management report includes a fair review of the information required by Disclosure and Transparency Rule 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year); and
(c)	the interim management report includes a fair review of the information required by Disclosure and Transparency Rule 4.2.8R (disclosure of related party transactions and changes therein).

For and on behalf of Henderson TR Pacific Investment Trust plc 

David Robins

Chairman

For further information contact: 

Andrew Beal  Portfolio Manager      Tel: [phone]

David Robins  Chairman Tel: [phone]

Sarah Gibbons-Cook Investor Relations and PR Manager Henderson Global Investors Tel: [phone]

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Page 4 of 11

HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Unaudited Results for the Half Year ended 30 June 2009

Income Statement 

for the half year ended 30 June 2009

	(Unaudited) Half year ended  30 June 2009			(Unaudited) Half year ended  30 June 2008			(Audited) Year ended  31 December 2008
	Revenue return £'000	Capital  return £'000	Total £'000	Revenue return £'000	Capital return £'000	Total £'000	Revenue return £'000	Capital return £'000	Total £'000
Gains/(losses) from investments held at fair value through profit or loss	-	47,765	47,765	-	(78,046)	(78,046)	-	(118,578)	(118,578)
Income from investments held at fair value through profit  or loss	2,611	-	2,611	3,792	-	3,792	6,590	-	6,590
Other interest receivable and similar income	11	-	11	158	-	158	233	-	233
	--------	--------	--------	--------	--------	--------	--------	--------	--------
Gross revenue and capital gains /(losses)	2,622	47,765	50,387	3,950	(78,046)	(74,096)	6,823	(118,578)	(111,755)
Management fee (note 2)	(256)	(393)	(649)	(140)	(234)	(374)	(345)	(286)	(631)
Other administrative expenses	(248)	-	(248)	(341)	-	(341)	(624)	-	(624)
	--------	--------	--------	--------	--------	--------	--------	--------	--------
Net return/(loss) on ordinary activities before finance charges and taxation	2,118	47,372	49,490	3,469	(78,280)	(74,811)	5,854	(118,864)	(113,010)
Finance charges	(27)	(80)	(107)	(119)	(358)	(477)	(172)	(515)	(687)
	--------	--------	--------	--------	--------	--------	--------	--------	--------
Net return/(loss) on ordinary activities before taxation	2,091	47,292	49,383	3,350	(78,638)	(75,288)	5,682	(119,379)	(113,697)
Taxation on net return/(loss) on ordinary activities	(417)	92	(325)	(956)	169	(787)	(1,706)	228	(1,478)
	--------	--------	--------	--------	--------	--------	--------	--------	--------
Net return/(loss) on ordinary activities after taxation	1,674	47,384	49,058	2,394	(78,469)	(76,075)	3,976	(119,151)	(115,175)
	=====	=====	=====	=====	=====	=====	=====	=====	=====
Basic and diluted return/(loss) per ordinary share  (note 3)	1.04p	29.35p	30.39p	1.43p	(46.75p)	(45.32p)	2.41p	(72.19)p	(69.78)p
	=====	=====	=====	=====	=====	=====	=====	======	======

The columns of this statement headed 'total' represent the Company's income statement, prepared in accordance with UK GAAP. The revenue and capital columns are supplementary to this and are published under guidance from the Association of Investment Companies.

The Company has no recognised gains or losses other than those disclosed in the income statement and the reconciliation of movements in shareholders' funds.

All items in the above statement derive from continuing operations. No operations were acquired or discontinued during the period.

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  Page 5 of 11

HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Unaudited Results for the Half Year ended 30 June 2009

Reconciliation of Movements in Shareholders' Funds

for the half years ended 30 June 2009 and 2008 and year ended 31 December 2008

(Unaudited) Half year ended 30 June 2009	Called up share capital  £'000	Capital redemption reserve  £'000	Special reserve  £'000	Other capital reserves  £'000	Revenue reserve  £'000	Total  £'000
At 31 December 2008	8,073	7,833	51,500	103,430	10,851	181,687
Net return from ordinary activities after taxation	-	-	-	47,384	1,674	49,058
Dividend paid in respect of year ended 31 December 2008 (paid 30 April 2009)	-	-	-	-	(3,868)	(3,868)
Purchase of own shares	-	-	-	-	-	-
	--------	---------	--------	---------	--------	---------
At 30 June 2009	8,073	7,833	51,500	150,814	8,657	226,877
	=====	=====	=====	======	=====	======
(Unaudited) Half year ended 30 June 2008	Called  up share capital  £'000	Capital redemption reserve  £'000	Special reserve  £'000	Other capital reserves  £'000	Revenue reserve  £'000	Total  £'000
At 31 December 2007	8,516	7,390	63,802	222,581	10,271	312,560
Net (loss)/return from ordinary activities after taxation	-	-	-	(78,469)	2,394	(76,075)
Dividend paid in respect of year ended 31 December 2007   (paid 30 April 2008)	-	-	-	-	(3,396)	(3,396)
Purchase of own shares	(351)	351	(10,277)	-	-	(10,277)
	--------	--------	--------	---------	---------	----------
At 30 June 2008	8,165	7,741	53,525	144,112	9,269	222,812
	=====	=====	=====	======	======	======
(Audited) Year ended 31 December 2008	Called up share capital  £'000	Capital redemption reserve  £'000	Special reserve  £'000	Other capital reserves  £'000	Revenue reserve  £'000	Total  £'000
At 31 December 2007	8,516	7,390	63,802	222,581	10,271	312,560
Net (loss)/return from ordinary activities after taxation	-	-	-	(119,151)	3,976	(115,175)
Dividend paid in respect of year ended 31 December 2007  (paid 30 April 2008)	-	-	-	-	(3,396)	(3,396)
Purchase of own shares	(443)	443	(12,302)	-	-	(12,302)
	--------	----------	--------	---------	----------	----------
At 31 December 2008	8,073	7,833	51,500	103,430	10,851	181,687
	=====	======	=====	======	======	======

The transaction costs incurred on the acquisition and disposal of investments are included within capital reserve. The purchase transaction costs for the half year ended 30 June 2009 were £75,000 (half year ended 30 June 2008: £213,000; year ended 31 December 2008: £420,000). Sales transaction costs for the half year ended 30 June 2009 were £65,000 (half year ended 30 June 2008: £413,000; year ended 31 December 2008: £548,000).

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HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Unaudited Results for the Half Year ended 30 June 2009

Balance Sheet

as at 30 June 2009

	(Unaudited)  30 June  2009 £'000	(Unaudited)  30 June  2008 £'000	(Audited)  31 December 2008 £'000
Fixed asset investments held at fair value through profit or loss
Listed at market value	240,806	215,442	197,798
	----------	----------	----------
Current assets
Debtors	472	1,385	474
Bank balances and short term deposits	4,436	10,403	5,403
	----------	----------	----------
	4,908	11,788	5,877
	---------	---------	---------
Creditors: amounts falling due within one year
Bank loans	(15,677)	(3,230)	(20,756)
Other creditors	(3,160)	(1,097)	(1,232)
	---------	----------	----------
	(18,837)	(4,327)	(21,988)
	----------	----------	----------
Net current (liabilities)/assets	(13,929)	7,461	(16,111)
	-----------	-----------	-----------
Total assets less current liabilities	226,877	222,903	181,687
Provision for liabilities and charges	-	(91)	-
	----------	----------	----------
Total net assets	226,877	222,812	181,687
	======	======	======
Capital and reserves
Called up share capital	8,073	8,165	8,073
Capital redemption reserve	7,833	7,741	7,833
Special reserve	51,500	53,525	51,500
Other capital reserves	150,814	144,112	103,430
Revenue reserve	8,657	9,269	10,851
	----------	----------	----------
Equity shareholders' funds	226,877	222,812	181,687
	======	======	======
Net asset value per ordinary share (note 4)	140.5p	136.4p	112.5p
	======	======	======

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Page 7 of 11

HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Unaudited Results for the Half Year ended 30 June 2009

Cash Flow Statement

for the half year ended 30 June 2009

	(Unaudited) Half year ended 30 June 2009 £'000	(Unaudited) Half year  ended 30 June 2008 £'000	(Audited) Year ended 31 December  2008 £'000
Net cash inflow from operating activities	1,871	827	2,933
Interest paid	(131)	(566)	(752)
Net tax paid	-	(278)	(278)
Net cash inflow from financial investments	5,224	66,971	49,050
Equity dividends paid	(3,868)	(3,396)	(3,396)
	----------	----------	----------
Net cash inflow before financing	3,096	63,558	47,557
Net cash outflow from financing	(3,559)	(58,082)	(47,806)
	----------	----------	----------
(Decrease)/increase in cash	(463)	5,476	(249)
	======	======	======
Reconciliation of operating revenue to net  cash inflow from operating activities
Total return/(loss) before finance charges and taxation	49,490	(74,811)	(113,010)
Less capital (return)/loss before finance charges and taxation	(47,372)	78,280	118,864
	----------	----------	-----------
Net revenue return before interest payable and taxation	2,118	3,469	5,854
Increase in accrued income	(61)	(410)	(316)
Decrease/(increase) in other debtors	62	(2)	(29)
Increase/(decrease) in creditors	273	(1,792)	(1,748)
Management fee taken to other capital reserves	(393)	(234)	(286)
Overseas withholding tax	(128)	(204)	(449)
Taiwanese stock dividends	-	-	(93)
	----------	----------	----------
Net cash inflow from operating activities	1,871	827	2,933
	======	======	======
Reconciliation of net cash flow to movement in net (debt)/cash
(Decrease)/increase in cash as above	(463)	5,476	(249)
Cash movement from debt financing	3,559	48,286	35,504
	----------	----------	----------
Change in net debt resulting from cash flows	3,096	53,762	35,255
Exchange movements	1,016	(341)	(4,359)
	----------	----------	----------
Movement in net debt during the period	4,112	53,421	30,896
Net debt at beginning of the period	(15,353)	(46,249)	(46,249)
	----------	----------	----------
Net (debt)/cash at the end of the period	(11,241)	7,172	(15,353)
	======	======	======
Represented by:
Cash at bank and short term deposits less bank overdrafts	4,436	10,396	5,403
Debt falling due within one year	(15,677)	(3,224)	(20,756)
	----------	----------	----------
	(11,241)	7,172	(15,353)
	======	======	======

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Page 8 of 11

HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Unaudited Results for the Half Year ended 30 June 2009

Notes 

1.	Accounting policies
	The accounts are prepared on the historical cost basis of accounting, modified to include the revaluation of fixed asset investments, and in accordance with the Companies Act 2006, accounting standards applicable in the United Kingdom and the Revised Statement of Recommended Practice - 'Financial Statements of Investment Trust Companies' dated January 2009 ('the Revised SORP').  The half year financial statements have been prepared on the basis of the accounting policies set out in the financial statements for the year ended 31 December 2008.   The taxation charge for each period is based on the expected tax payable.
2.	Management and performance fees
	The management and performance fees are charged in accordance with the terms of the management agreement. The base management fee is calculated at a rate of 0.60% of gross assets, calculated and paid quarterly in arrears. The performance fee is based on the out-performance of the company against the MSCI All Country Asia ex-Japan Index on a total return basis. Over a thirty month period from 1 January 2007 to 30 June 2009, the company had underperformed the benchmark index and no performance fee has been accrued in these accounts.
3.	Return/(loss) per ordinary share	(Unaudited) Half year ended  30 June 2009 £'000	(Unaudited) Half year ended 30 June 2008 £'000	(Audited) Year ended  31 December 2008 £'000
	The return per ordinary share is based on the following figures:
	Revenue return	1,674	2,394	3,976
	Capital return /(loss)	47,384	(78,469)	(119,151)
		-----------	-----------	-----------
	Total	49,058	(76,075)	(115,175)
		-----------	-----------	---------------
	Weighted average number of ordinary shares in issue	161,451,407	167,845,432	165,057,821
	Revenue return per ordinary share	1.04p	1.43p	2.41p
	Capital return/(loss)  per ordinary share	29.35p	(46.75)p	(72.19)p
		----------	----------	------------
	Total return/(loss) per ordinary share	30.39p	(45.32)p	(69.78)p
		======	======	=======
4.	Net asset value per ordinary share
	The net asset value per ordinary share is calculated on the basis of shareholders' funds attributable to the ordinary shares divided by the number of ordinary shares in issue at 30 June 2009, being 161,451,407 (30 June 2008: 163,306,907 and 31 December 2008: 161,451,407).

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HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Unaudited Results for the Half Year ended 30 June 2009

5.	Comparative information
	The financial information contained in this half year report does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. The financial information for the half years ended 30 June 2008 and 30 June 2009 has not been audited or reviewed by the Company's auditors.  The information for the year ended 31 December 2008 has been extracted from the latest published audited financial statements. The audited financial statements for the year ended 31 December 2008 have been filed with the Registrar of Companies. The Report of the Independent Auditors on those financial statements, which was unqualified, contained no qualification or statement under either section 237(2) or 237(3) of the Companies Act 1985.
6.	Unaudited Report for the half year ended 30 June 2009
	The unaudited report for the half year ended 30 June 2009 will be posted to shareholders in September and will be available from the Registered Office at 201 Bishopsgate, London EC2M 3AE thereafter. It will also be available on the Company's website www.hendersontrpacific.com at the end of August.

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HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Unaudited Results for the Half Year ended 30 June 2009

	APPENDIX 1
	Geographical Analysis of the Portfolio #
		As at 30 June 2009				As at 31 December 2008
		Company %		Index* %		Company  %		Index* %
	China	38.6		27.6		36.7		25.0
	Hong Kong	14.5		12.0		12.4		13.6
	India	9.6		10.7		8.6		9.6
	Indonesia	2.7		2.3		2.3		2.1
	Korea	9.5		17.5		11.9		19.7
	Malaysia	0.0		4.1		2.5		4.4
	Pakistan	0.0		0.0		0.0		0.2
	The Philippines	0.0		0.6		0.0		0.7
	Singapore	6.4		6.6		5.5		7.0
	Taiwan	12.6		16.7		13.2		15.7
	Thailand	4.4		1.9		5.0		2.0
	Vietnam	1.7		0.0		1.9		0.0
		-------		-------		-------		-------
		100.0		100.0		100.0		100.0
		====		====		====		====
	* MSCI All Country Asia ex-Japan Index Country Weightings (%)  # Source: Henderson Global Investors and Factset
	APPENDIX 2
	Sector Analysis of the Portfolio #
			As at 30 June 2009				As at 31 December 2008
			Company %		Index* %		Company %	Index* %
	Consumer Discretionary		4.1		6.2		2.7	5.6
	Consumer Staples		0.0		4.0		0.0	4.7
	Energy		3.7		8.8		5.6	9.0
	Financials		35.6		24.4		34.8	23.1
	Property		14.9		8.4		13.2	7.4
	Healthcare		0.0		0.5		0.0	0.6
	Industrials		18.0		10.9		17.0	11.5
	Information Technology		10.9		16.9		11.6	15.0
	Materials		3.4		7.0		2.4	6.7
	Telecommunication Services		9.4		8.5		12.7	11.2
	Utilities		0.0		4.4		0.0	5.2
			-------		------		-------	--------
			100.0		100.0		100.0	100.0
			====		====		====	====
	* MSCI All Country Asia ex-Japan Index Sector Weightings (%)  # Source: Henderson Global Investors and Factset

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HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Unaudited Results for the Half Year ended 30 June 2009

APPENDIX 3

List and Valuation of Investments

as at 30 June 2009

	£'000	%			£'000	%
CHINA				KOREA
Agile Property	13,222	5.5		Doosan Infracore	2,522	1.0
Air China	4,009	1.7		Hyundai Development	2,881	1.2
Bank of China	7,663	3.2		Hyundai Engineering & Construction	3,796	1.6
China Life Insurance	8,175	3.4		KB Financial Group	5,153	2.1
China Mobile	13,397	5.6		Shinhan Financial Group	4,711	2.0
China National Building Materials	5,251	2.2		SK Holdings	3,895	1.6
Ctrip.Com International	6,313	2.6			---------	-------
Industrial & Commercial Bank of China	13,099	5.4		TOTAL KOREA	22,958	9.5
PetroChina	8,894	3.7			---------	-------
Suntech Power *	4,658	1.9		SINGAPORE
Tencent Holdings	8,315	3.4		Banyan Tree Holdings	2,649	1.1
	---------	-------		DBS Group	7,376	3.1
TOTAL CHINA	92,996	38.6		Genting International	365	0.1
	---------	-------		Keppel Corporation	4,994	2.1
HONG KONG					---------	-------
China Overseas Land & Investment	8,161	3.4		TOTAL SINGAPORE	15,384	6.4
Pacific Basin Shipping	5,507	2.3			---------	--------
Polytec Asset Holdings	752	0.3		THAILAND
Sino Land	5,573	2.3		Advanced Information Services	5,484	2.3
Standard Chartered **	5,700	2.4		Kasikornbank	5,169	2.1
Sun Hung Kai Properties	9,091	3.8			---------	-------
	---------	-------		TOTAL THAILAND	10,653	4.4
TOTAL HONG KONG	34,784	14.5			---------	-------
	---------	-------		INDONESIA
TAIWAN				Bank Mandiri	6,454	2.7
Asustek Computer	3,035	1.3			---------	-------
China Airlines	1,954	0.8		TOTAL INDONESIA	6,454	2.7
EVA Airways	2,040	0.8			---------	-------
High Tech Computer Corp	7,048	2.9		VIETNAM
Mediatek	7,982	3.3		Vietnam Enterprise Investments Fund	4,026	1.7
Yuanta Financial Holdings	8,358	3.5			---------	-------
	---------	-------		TOTAL VIETNAM	4,026	1.7
TOTAL TAIWAN	30,417	12.6			---------	-------
	---------	-------
INDIA
Bharat Heavy Electricals	7,543	3.1			----------	-------
Eredene Capital ***	1,113	0.5		TOTAL INVESTMENTS	240,806	100.0
ICICI Bank	7,309	3.0			----------	-------
Reliance Communication	4,194	1.8
Tata Steel	2,975	1.2
	---------	-------
TOTAL INDIA	23,134	9.6
	---------	-------

*    New York Stock Exchange Listed
**     London Stock Exchange Listed
***    Listed on AIM in the UK
Stocks in bold type are the top twenty largest investments which by value account for 68.6% of the total value of investments.

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