Interim Results

Schroder AsiaPacific Fund PLC 04 May 2005 4 May 2005 SCHRODER ASIA PACIFIC FUND plc Schroder AsiaPacific Fund plc announces its unaudited Interim Results for the period ended 31 March 2005. Unaudited Statement of Total Return (incorporating the Revenue Account) For the six months For the six months ended 31 March 2005 ended 31 March 2004 Revenue Capital Total Revenue Capital Total £'000 £'000 £'000 £'000 £'000 £'000 Realised gains on investments - 18,081 18,081 - 13,599 13,599 Exchange gains on loans and currency balances - 814 814 - 1,822 1,822 Income 2,244 - 2,244 1,724 - 1,724 Management fees (721) - (721) (651) - (651) Administrative expenses (169) - (169) (163) - (163) Net return on ordinary activities before finance costs and taxation 1,354 18,895 20,249 910 15,421 16,331 Interest payable (265) - (265) (165) - (165) Return on ordinary activities before taxation 1,089 18,895 19,984 745 15,421 16,166 Tax on ordinary activities (328) - (328) (171) - (171) Return on ordinary activities after taxation 761 18,895 19,656 574 15,421 15,995 Return per share 0.55p 13.57p 14.12p 0.41p 11.08p 11.49p The revenue column of this statement is the profit and loss account of the Company. All revenue and capital items in the above statement derive from continuing operations. Schroder AsiaPacific Fund plc Unaudited Balance Sheet 31 March 30 September 2005 2004 £'000 £'000 Fixed assets Investments 158,137 134,690 Current assets Debtors 2,738 1,768 Cash at bank and short-term deposits 5,965 10,996 8,703 12,764 Current liabilities Creditors: amounts falling due within one year (21,677) (22,166) Net current liabilities (12,974) (9,402) Total assets less current liabilities 145,163 125,288 Creditors: amounts falling due after more than one year Provision for liabilities and charges (249) (53) Net assets 144,914 125,235 Capital and reserves Called up share capital 13,922 13,920 Capital redemption reserve 81 81 Share premium account 25 4 Share purchase reserve 110,529 110,529 Warrant reserve 8,695 8,702 Warrant exercise reserve 9 2 Capital reserve 10,487 (8,408) Revenue reserve 1,166 405 Equity shareholders' funds 144,914 125,235 Net asset value per share Undiluted 104.09p 89.97p Diluted 103.41p - Schroder AsiaPacific Fund plc Unaudited Cash Flow Statement For the six months ended For the year ended 31 March 2005 30 September 2004 £'000 £'000 Operating activities Dividend income received 1,030 4,211 Interest received 204 198 Other income 6 12 Management fee paid (213) (394) Administrative expenses (674) (1,246) Net cash inflow from operating activities 353 2,781 Servicing of finance Interest paid (274) (347) Cash outflow from servicing of finance (274) (347) Taxation UK tax paid (506) (303) Overseas tax paid (25) (283) Tax paid (531) (586) Capital expenditure and financial investment Purchase of investments (54,309) (74,750) Disposal of investments 51,244 77,496 Net cash (outflow)/inflow from capital expenditure and financial investment (3,065) 2,746 Equity dividends paid (1,531) (1,044) Net cash (outflow)/inflow before financing (5,048) 3,550 Financing Conversion of warrants to ordinary shares 23 - Bank loans raised - 6,003 Net cash inflow from financing 23 6,003 Net cash (outflow)/inflow (5,025) 9,553 Investment Manager's Review During the six months ended 31st March 2005, the total return on the Company's net assets was 15.9%, outperforming the benchmark index, which produced a total return of 9.2%. It has been a supportive environment for the region's stockmarkets amid firm global economic data, and, although short-term interest rates in the United States have been on a steadily rising trend, global bond markets have performed resiliently. Korea and the smaller ASEAN markets have led the rise in the index. The Korean market has been supported by signs, albeit fragmentary, of a recovery in consumer demand and evidence of a more pro-growth policy from the Bank of Korea. Although the strengthening of the Korean won is a challenge for the exporting sectors, they have been supported by the fairly benign economic environment. Smaller ASEAN markets continue to thrive based on primarily domestic factors: in Indonesia strong growth momentum and encouraging signs of the government tackling some tough economic issues, in Thailand the re-election of the incumbent administration, and in the Philippines the slow but encouraging progress towards vital fiscal reform. All the other markets offered dull returns. Hong Kong has struggled to make progress as local short-term interest rates have been rising in tandem with those of the United States, undermining the performance of the real estate and financial sectors which still comprise a large proportion of the market. Chinese stocks have also performed poorly, particularly cyclical sectors where rising costs and lack of pricing power have squeezed profit margins. Portfolio Asset Allocation Net Asset Value Weightings (%) Benchmark Index Weight (%) Market 30 September 2004 31 March 2005 31 March 2005 Hong Kong/China 35.4 30.9 30.1 Korea 23.9 24.0 28.0 Taiwan 13.1 19.4 19.5 Singapore 13.0 13.0 9.7 Indonesia 7.9 8.5 2.8 India 5.4 5.7 - Thailand 5.1 3.8 3.6 Malaysia 2.9 1.9 5.5 Philippines 1.6 1.9 0.8 Other net liabilities (8.3) (9.1) - Total 100.00 100.00 100.00 Source: MSCI, Schroders. Performance and Portfolio Activity Stock selection and country positioning have continued to add value in the period. In terms of country positioning, the overweighting of Indonesia and under-weighting of Taiwan and China contributed to returns, while stock selection in Hong Kong, China, Indonesia and Taiwan generated significant value added. The stance of the portfolio remained broadly unchanged over the six months, with the key over-weightings being India, Indonesia and selectively in Hong King, while remaining cautious over Chinese stocks. However, we did switch significant exposure from Korea to Taiwan. Strong rises in many Korean domestic stocks brought them up to our assessment of fair value, while the steady de-rating of the Taiwan market has left it looking attractive, particularly in view of the increasingly pro-active dividend policy of many companies. Outlook and Policy We continue to take a fairly wary view on the global environment. Modest pick-ups in the OECD leading indicators in recent months have helped to confirm the optimism of developed equity markets in the fourth quarter and the first two months of 2005. However, in the wake of somewhat more hawkish signals from the Federal Reserve in March, investors have taken a more defensive stance, and economic bellwethers such as commodity prices have corrected from recent highs. We see continued rises in short rates in the United States through the balance of the year. Against this background the regional markets are likely to be trendless, particularly as recent strength has been so dependent upon buying from foreign investors who, in many cases, have handsome profits to book. A short-term rally in the US dollar, and any less strong data from the US, are other possible dampening factors. Therefore, while retaining a long term optimism on regional markets, it is easier to identify the factors in the short-term which may cap returns, including continued rises in rates and tightening liquidity in the US, and the fact that data out of the United States remains decidedly mixed. Any concerted widening of credit spreads and flight to 'quality' is likely to impact smaller Asian markets disproportionately compared to larger more liquid equity markets. We continue to focus upon stock selection, while the key overweights we have had in place for some time (India, Indonesia, Hong Kong) remain justified. The overall portfolio continues to favour domestic growth oriented sectors and stocks. The portfolio remains moderately geared. Schroder Investment Management Limited 4 May 2005 Notes The half yearly figures are non statutory accounts. The balance sheet and revenue statement for year ended 30 September 2004 are extracts from the latest published accounts. A copy of the published accounts for that year has been delivered to the Registrar of Companies. The report of the auditors on those accounts was unqualified and did not contain a statement under section 237 (2) or (3) of the Companies Act 1985. The half yearly figures have been prepared using the same accounting policies as those adopted in preparing the latest published accounts. The Interim Report will be mailed to registered shareholders in May 2005 and from the date of release copies of the Interim Report will be made available to the public at the Company's Registered Office at 31 Gresham Street, London EC2V 7QA. Enquiries: John Spedding Schroder Investment Management Limited 4 May 2005 (020 7658 3206) (e-mail john.spedding@schroders.com) This information is provided by RNS The company news service from the London Stock Exchange

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