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Premier Pacific Inc (PPI)


Friday 14 October, 2005

Premier Pacific Inc

Final Results

Premier Pacific Income Fund PLC
14 October 2005

Premier Pacific Income Fund PLC

14th October 2005


At the Board Meeting of Directors, held in Dublin on 13th October 2005, the
Directors approved the Annual Report and Accounts for the year ending 31st July
2005.  This preliminary statement is not the Company's statutory accounts,
copies of which are required to be annexed to the Company's annual return.  The
accounts for the years ended 31st July 2004 and 31st July 2005 received audit
reports, which were unqualified.  The accounts for the year ended 31st July 2004
have been annexed to the annual return.  The accounts for the year ended 31st
July 2005 have not yet been annexed to the annual return and have yet to be


The audited annual report and accounts were approved by the directors on 13th
October 2005 and will be distributed to shareholders in November.  The Annual
General Meeting has been set for 11:00 on 8th December 2005.  A copy of the
report and accounts in .pdf format will be available shortly from Premier Asset
Management's Website.


On 30th September a total of 25,251,129 shares were tendered for redemption and
10,560,346 shares were redeemed amounting to 25% of the shares in issue at that
date.  Accordingly there are now 31,681,033 shares in issue.  The remaining
tendered shares, 14,790,783, have been carried forward to the next dealing date,
which is 30th December 2005.  In accordance with the prospectus, 7,920,783
shares, representing 25% of the outstanding shares, could be redeemed.  However,
at the Board Meeting held on 13th October 2005, the directors resolved that it
would be in the best interests of all shareholders to allow all the tendered
shares to be redeemed.  Accordingly 14,790,783 shares will be redeemed on 30th
December 2005.


At the Board Meeting of Directors held on 13th October 2005, it was resolved to
pay a quarterly dividend of 0.725 pence per share.  The ex-dividend date will be
26th October 2005 and the payment date will be 21st November 2005.

For the year ended 31st July 2005


The last twelve months have seen excellent returns from many Asia Pacific
markets.  Consequently your Fund has shown a good return in capital terms and
continued to pay quarterly dividends at the level of the final quarter of last


Over the twelve months to 29th July 2005, the net asset value rose from 48.24
pence per share to 65.45 pence per share.  Dividends amounted to 2.90 pence per
share over the last twelve months.  Consequently shareholders have seen a
capital return of 35.7% and a total return of 41.7%.  Over the same period the
Fund's benchmark index, the MSCI All Country Asia Pacific (Free) ex Japan Index,
in sterling terms has produced a capital return of 39.6% and a total return of


The growth in dividend income from Asian equities remained strong although the
return to sterling based investors was less due to a weaker average exchange
rate for many Asian currencies against sterling over the year.  Income amounted
to £1.681 million compared with £1.724 million last year.  Expenses were higher
at £1.969 million compared with £1.593 million last year.  The costs of the open
ending of the Fund account for much of this increase.  The cost of dividends
amounted to £1.225 million.  After charging 75% of management fees and loan
interest to capital, revenue reserves have fallen slightly to £0.61 million
compared with last year's position of £0.93 million.  However this still
represents more than two quarters of dividends at the current rate.

Result of Extraordinary General Meeting

On 26th July 2005 shareholders voted to open-end the fund with immediate effect
and to alter the investment policy to 100% Asia Pacific ex Japan equities.  As a
consequence shareholders will be able to subscribe and redeem shares on a
quarterly basis at a price based on net asset value after allowing for dealing
costs.  The prospectus governing this change was approved on 23rd September 2005
and the first dealings took place on 30th September 2005.  Twenty five percent
of the shares outstanding at that date were redeemed.  The next dealing date
will be 30th December 2005 when further redemptions will be made.

Investment and Loan Policy

In anticipation of the change in investment policy and the open ending of the
Fund, the global bond portfolio was reduced to only a couple of attractive
Australian investments in April.  Further, knowing that a number of shareholders
wished to redeem shares and that as a consequence part of our loan would need to
be repaid, we took the opportunity of the cash raised by the bond sales to repay
£6.0 million of loan. This leaves us with gearing of 54.3% at the year-end.
Following the redemptions, the gearing level has risen to 70.3%

Throughout its life the Fund has had gearing in the form of a loan from the Bank
of Scotland.  Initially it was thought that this loan might be exchanged for a
term loan.  However the loan in its current renewable form has served
shareholders well and accordingly it has been decided to continue with the loan
in its current form.

Loan Covenant

The covenant requires shareholders' funds to be in excess of 66.7% of the loan.
At the start of the year shareholders' funds represented 97.0% and at the end of
the year were 184.3%.  As at 30th September 2005 shareholders' funds were 189.6%
of the loan prior to shares being redeemed and 142.2% after the redemption.


For the year ended 31st July 2005


The Asia Pacific region continues to offer strong economic growth.  Despite high
oil and commodity prices there has been only a modest reduction in this growth
although there has been an increase in inflation with a consequent rise in
interest rates as central banks act to ensure that prices do not rise

Equity markets in the region are more expensive than they were twelve months ago
but are still attractive on many valuation criteria.  One of the big questions
that will have to be answered in the next twelve months is whether they can
sustain these higher valuation levels or whether the risks inherent in this
region in political, economic and governance terms will reassert themselves and
reduce the valuations to previous lower levels.

The last twelve months has seen many Asian companies increase their dividends.
Some of this is a reaction to shareholder pressure but much of it is associated
with an increase in market maturity and recognition that efficient use of
capital carries higher valuations.  Many companies are committed to continuing
to increase their dividend payouts.  For a fund that has a dividend policy this
is good news and means that shareholders should continue to receive at least the
level of dividends paid by your Fund in previous quarters.  To this end the Fund
will seek to obtain distributor status each year in the U.K. so that
shareholders can maintain all the tax benefits that the Fund has historically


As at 31st July 2005

Assets                                                                     2005                      2004
                                                                              £                         £

Investments at market value (cost:£27,981,151, 2004                  34,192,865                39,794,123
Cash at bank                                                          9,222,368                 1,315,885
Unrealised gain on open forward exchange contract                             -                   448,294
Interest and dividends receivable                                        93,216                   298,771
Funds due from broker                                                    26,992                         -
Total Assets                                                         43,535,441                41,857,073

Term Loan                                                            15,000,000                21,000,000
Funds due to broker                                                     288,960                         -
Distribution payable                                                    306,250                   306,250
Interest payable                                                         42,251                    56,776
Management fees payable                                                  33,030                    34,028
Unrealised loss on open forward exchange contracts                        6,166                    73,642
Custodian fees payable                                                    3,417                     3,814
Administration fees payable                                               5,433                     5,000
Other accrued expenses payable                                          204,544                         -
Total Liabilities                                                    15,890,051                21,479,510

Net Assets                                                           27,645,390                20,377,563

Net Assets Consist of:
Capital (Par value and paid in surplus)                              39,741,379                39,741,379
Capital expenses                                                    (9,201,509)               (8,006,256)
Undistributed net investment income                                     613,283                   930,460
Undistributed net realised loss from investments and                (9,378,608)               (8,873,682)
currency transactions
Unrealised gain/(loss) from investments and foreign                   5,870,845               (3,414,338)
currency transactions
Total Net Assets                                                     27,645,390                20,377,563

Number of Shares in issue                                            42,241,379                42,241,379

Net Asset Value per share                                                0.6545                    0.4824

For the year ended 31st July 2005

                                                                           2005                      2004
                                                                              £                         £
Investment Income
Dividend income                                                         891,500                   785,354
Bond income                                                             725,863                   958,056
Bank interest earned                                                    132,243                    32,938
Non reclaimable withholding tax                                        (68,219)                  (52,513)
                                                                      1,681,387                 1,723,835
Interest paid                                                         1,151,856                 1,024,444
Management fees                                                         441,814                   433,744
Other expenses                                                          283,899                    41,063
Administration fees                                                      34,600                    30,846
Custodian fees                                                           27,414                    32,678
Directors' fees                                                          18,196                    19,872
Audit fees                                                               11,038                    10,303
                                                                      1,968,817                 1,592,950

Expenses Charged to Capital
Interest paid                                                         (863,892)                 (768,333)
Management fees                                                       (331,361)                 (325,308)
                                                                        773,564                   499,309
Net Investment Income                                                   907,823                 1,224,526

Net Realised & Unrealised Gain/(Loss) on Investments
Net realised loss from securities transactions                      (1,590,114)               (9,683,606)
Net realised gain from foreign currency transactions                  1,085,188                 1,085,985
Net change in unrealised appreciation of investments                  9,666,001                10,444,496
Net change in unrealised depreciation of foreign                      (380,818)                 (230,023)
                                                                      8,780,257                 2,336,852
Net increase in assets resulting from operations                      9,688,080                 3,561,378

For the year ended 31st July 2005

                                                                           2005                      2004
                                                                              £                         £
Net investment income                                                   907,823                 1,224,526
Net realised loss on investments and currency                         (504,926)               (7,887,621)
Change in unrealised net appreciation of investment                   9,285,183                10,214,473
and currency transactions
Net increase in net assets resulting from operations                  9,688,080                 3,561,378

Capital Share Transactions
Capitalised expenses                                                (1,195,253)               (1,093,641)
Distributions                                                       (1,225,000)               (1,193,320)
Net decrease from capital share transactions                        (2,420,253)               (2,286,961)

Net Increase in Net Assets                                            7,267,827                 1,274,417

Net Assets at the beginning of the period                            20,377,563                19,103,146

Net Assets at 31st July 2005                                         27,645,390                20,377,563


                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                                                                                             

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