Half Yearly Report

RNS Number : 6485R

Henderson TR Pacific Inv. Trust PLC

26 August 2010

This announcement constitutes regulated information

Page 1 of 9

HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Unaudited Results for the Half Year ended 30 June 2010

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 2010.

Financial Highlights

Per ordinary share	(Unaudited) 30 June 2010	(Audited) 31 December 2009	% Change
Net asset value#	181.0p	179.9p	0.6%
Share price#	163.3p	165.5p	-1.3%
Discount	9.8%	8.0%
Gearing*	8.3%	7.8%

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

Performance to 30 June 2010

(£ adjusted)

	6 months %	1 year %	2 years %	3 years %	5 years %	10 years %
Net asset value total return (1)	1.9	29.8	37.2	20.3	97.0	67.7
Share price total return (2)	-0.3	25.5	37.9	23.6	105.5	68.8
MSCI All Country Asia ex-Japan Index total return (2)	4.1	34.8	34.0	27.7	107.9	111.2
Peer group (NAV) total return (3)	5.1	39.1	30.4	21.5	106.4	128.5

(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 9

HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Unaudited Results for the Half Year ended 30 June 2010

Interim Management Report

(incorporating the Chairman's Statement)

Market Background

As noted in the Annual Report, we felt that 2010 would be a more difficult year than 2009 as investors wrestled with the sharply contrasting risks of a double dip recession in the West, caused by the withdrawal of extraordinary fiscal and monetary stimulus measures and on the other hand, a normal recovery, leading to fears of overheating, in the high growth economies of Asia, particularly China.

We took the view that a sub-par recovery in the West meant that overheating and the accompanying tightening measures required by governments in Asia would not be particularly aggressive and represented a normalisation of policy rather than an outright attempt to slow growth to prevent runaway inflation. It is clear that the markets, whilst veering sharply between fears of another recession in the West and overheating in Asia, have settled on the view that the risks to economies and stock markets remain high. Despite a small positive return from the region in sterling terms over the six months to end June, there has been considerable volatility and market participants have tended to focus on dull, but dependable, stocks that have the protection of low current year valuations and/or a high dividend yield. This has not suited the investment style of your Trust which tends to look for shares that offer high rates of long term growth, that may trade at a premium to overall market valuations and typically do not pay high dividends.

Your Trust has also remained heavily exposed to the China market and this has also hurt relative performance. Investor fears about overheating in the Chinese economy and particularly the property market, have led to a period of poor performance for Chinese equities. Whilst your Portfolio Manager has been successful in picking stocks in the market, there has been an opportunity cost from this strategy in the form of lower holdings in the better performing markets of Malaysia, Thailand and the Philippines. It is also clear that a number of competitors have had structurally lower weightings in China in favour of India and Indonesia which were amongst the best performing markets over the six month period.

Performance

Your Trust's net asset value total return increased by 1.9% in the first six months of the year in sterling terms compared to a 4.1% return for the MSCI All Countries Asia ex-Japan Index (total return) and a 5.1% return for the peer group of investment trusts. This leaves your Trust towards the lower end of the peer group over 1 year but near the top over 2 years and median over 3 and 5 years.

Outlook

Fears over the sustainability of the economic recovery in the West and the possibility of a double dip recession will not disappear quickly. However, we continue to believe that the growth momentum in Asia remains strong and should withstand the combined effect of more sluggish exports and moderately tighter fiscal and monetary policy. An increasing awareness that Asia's economic recovery is more domestically driven and less reliant on external demand, together with confirmation that Asian governments have successfully adjusted fiscal and monetary policy, should create a favourable environment for equities and currencies over the remainder of the year. This should particularly be the case for Chinese equities. Your Portfolio Manager will continue to focus on companies in the region that offer outstanding long term growth which has yet to be fully recognised and rewarded by the markets.

Banking and Custody Arrangements

I am pleased to announce a new relationship with HSBC Bank, the new custodian of our securities, in succession to JP Morgan. Furthermore, HSBC has agreed to grant the Company a borrowing facility of £60 million on attractive terms. The maximum potential gearing level remains at 30% and this facility will only be used if it is deemed to be in the interests of shareholders.

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Page 3 of 9

HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Unaudited Results for the Half Year ended 30 June 2010

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 2009.

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: 020 7818 4314

David Robins

Chairman

Tel: 020 7818 4233

David Masters

Lansons Communications
Tel: 020 72943687

Sarah Gibbons-Cook

Investor Relations and

PR Manager

Henderson Global Investors

Tel: 020 7818 3198

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Page 4 of 9

HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Unaudited Results for the Half Year ended 30 June 2010

Income Statement

for the half year ended 30 June 2010

	(Unaudited) Half year ended 30 June 2010			(Unaudited) Half year ended 30 June 2009			(Audited) Year ended 31 December 2009
	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 from investments held at fair value through profit or loss	-	2,887	2,887	-	47,765	47,765	-	110,175	110,175
Income from investments held at fair value through profit or loss	3,843	-	3,843	2,611	-	2,611	5,248	-	5,248
Other interest receivable and similar income	3	-	3	11	-	11	38	-	38
	--------	--------	-------	--------	--------	--------	--------	----------	-----------
Gross revenue and capital gains	3,846	2,887	6,733	2,622	47,765	50,387	5,286	110,175	115,461

Management fee (note 2)	(339)	(643)	(982)	(256)	(393)	(649)	(574)	(974)	(1,548)
Other administrative expenses	(356)	-	(356)	(248)	-	(248)	(562)	-	(562)
	--------	--------	-------	--------	--------	--------	--------	----------	-----------
Net return on ordinary activities before finance charges and taxation	3,151	2,244	5,395	2,118	47,372	49,490	4,150	109,201	113,351

Finance charges	(57)	(171)	(228)	(27)	(80)	(107)	(67)	(202)	(269)
	--------	--------	-------	--------	--------	--------	--------	----------	-----------
Net return on ordinary activities before taxation	3,094	2,073	5,167	2,091	47,292	49,383	4,083	108,999	113,082

Taxation on net return on ordinary activities	(311)	-	(311)	(417)	92	(325)	(566)	123	(443)
	---------	--------	-------	--------	--------	--------	--------	----------	-----------
Net return on ordinary activities after taxation	2,783	2,073	4,856	1,674	47,384	49,058	3,517	109,122	112,639
	=====	======	====	=====	=====	=====	=====	======	======
Basic and diluted return per ordinary share (note 3)	1.72p	1.29p	3.01p	1.04p	29.35p	30.39p	2.18p	67.59p	69.77p
	=====	=====	====	=====	=====	=====	=====	======	======

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 9

HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Unaudited Results for the Half Year ended 30 June 2010

Reconciliation of Movements in Shareholders' Funds

for the half years ended 30 June 2010 and 2009 and year ended 31 December 2009

Half year ended 30 June 2010 (Unaudited)	Called up share capital £'000	Capital redemption reserve £'000	Special reserve £'000	Other capital reserves £'000	Revenue reserve £'000	Total £'000
At 31 December 2009	8,073	7,833	51,500	212,552	10,493	290,451
Net return from ordinary activities after taxation	-	-	-	2,073	2,783	4,856
Dividend paid in respect of year ended 31 December 2009 (paid 1 April 2010)	-	-	-	-	(3,068)	(3,068)
	---------	---------	--------	-----------	---------	----------
At 30 June 2010	8,073	7,833	51,500	214,625	10,208	292,239
	=====	=====	=====	======	=====	======

Half year ended 30 June 2009 (Unaudited)	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)
	---------	---------	----------	----------	----------	----------
At 30 June 2009	8,073	7,833	51,500	150,814	8,657	226,877
	=====	=====	=====	======	======	======


Year ended 31 December 2009 (Audited)	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	-	-	-	109,122	3,517	112,639
Dividend paid in respect of year ended 31 December 2008 (paid 30 April 2009)	-	-	-	-	(3,875)	(3,875)
	--------	----------	--------	---------	----------	----------
At 31 December 2009	8,073	7,833	51,500	212,552	10,493	290,451
	=====	======	=====	======	======	======

The transaction costs incurred on the acquisition and disposal of investments are included within capital reserves. The purchase transaction costs for the half year ended 30 June 2010 were £43,000 (half year ended 30 June 2009: £75,000; year ended 31 December 2009: £417,000). Sales transaction costs for the half year ended 30 June 2010 were £35,000 (half year ended 30 June 2009: £65,000; year ended 31 December 2009: £317,000).

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Page 6 of 9

HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Unaudited Results for the Half Year ended 30 June 2010

Balance Sheet

as at 30 June 2010

	(Unaudited) 30 June 2010 £'000	(Unaudited) 30 June 2009 £'000	(Audited) 31 December 2009 £'000

Fixed asset investments held at fair value through profit or loss
Quoted at market value	316,478	240,806	312,623
	-----------	----------	----------
Current assets
Debtors	679	472	2,084
Cash at bank	881	4,436	9,344
	-----------	----------	----------
	1,560	4,908	11,428
	-----------	----------	----------
Creditors: amounts falling due within one year
Bank loans and overdrafts	(25,141)	(15,677)	(31,945)
Other creditors	(658)	(3,160)	(1,655)
	-----------	----------	----------
	(25,799)	(18,837)	(33,600)
	-----------	----------	----------
Net current liabilities	(24,239)	(13,929)	(22,172)
	-----------	----------	----------
Total net assets	292,239	226,877	290,451
	======	======	======


Capital and reserves
Called up share capital	8,073	8,073	8,073
Capital redemption reserve	7,833	7,833	7,833
Special reserve	51,500	51,500	51,500
Other capital reserves	214,625	150,814	212,552
Revenue reserve	10,208	8,657	10,493
	-----------	----------	----------
Shareholders' funds	292,239	226,877	290,451
	======	======	======
Net asset value per ordinary share (note 4)	181.0p	140.5p	179.9p
	======	======	======

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Page 7 of 9

HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Unaudited Results for the Half Year ended 30 June 2010

Cash Flow Statement

for the half year ended 30 June 2010

	(Unaudited) Half year ended 30 June 2010 £'000	(Unaudited) Half year ended 30 June 2009 £'000	(Audited) Year ended 31 December 2009 £'000
Net cash inflow from operating activities	1,553	1,871	3,593
Interest paid	(194)	(131)	(277)
Net tax paid	(1,030)	-	-
Net cash inflow/(outflow) from financial investments	2,572	5,224	(6,765)
Equity dividends paid	(3,068)	(3,868)	(3,875)
	----------	----------	----------
Net cash (outflow)/inflow before financing	(167)	3,096	(7,324)
Net cash (outflow)/inflow from financing	(35,134)	(3,559)	11,981
	----------	----------	----------
(Decrease)/increase in cash	(35,301)	(463)	4,657
	======	======	======
Reconciliation of operating revenue to net cash inflow from operating activities
Total return before finance charges and taxation	5,395	49,490	113,351
Less capital return before finance charges and taxation	(2,244)	(47,372)	(109,201)
	----------	----------	-----------
Net revenue return before interest payable and taxation	3,151	2,118	4,150
(Increase)/decrease in accrued income	(652)	(61)	378
Decrease in other debtors	9	62	60
(Decrease)/increase in creditors	(1)	273	431
Management fee taken to other capital reserves	(643)	(393)	(974)
Overseas withholding tax	(311)	(128)	(443)
Taiwanese stock dividends	-	-	(9)
	----------	----------	----------
Net cash inflow from operating activities	1,553	1,871	3,593
	======	======	======
Reconciliation of net cash flow to movement in net (debt)/cash
(Decrease)/increase in cash as above	(35,301)	(463)	4,657
Cash movement from debt financing	35,134	3,559	(11,981)
	----------	----------	----------
Change in net debt resulting from cash flows	(167)	3,096	(7,324)
Exchange movements	(1,492)	1,016	76
	----------	----------	----------
Movement in net debt during the period	(1,659)	4,112	(7,248)
Net debt at beginning of the period	(22,601)	(15,353)	(15,353)
	----------	----------	----------
Net debt at the end of the period	(24,260)	(11,241)	(22,601)
	======	======	======
Represented by:
Cash at bank	881	4,436	9,344
Bank overdrafts	(25,141)	-	-
Debt falling due within one year	-	(15,677)	(31,945)
	----------	----------	----------
	(24,260)	(11,241)	(22,601)
	======	======	======

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Page 8 of 9

HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Unaudited Results for the Half Year ended 30 June 2010

Notes

1.	Accounting policies
	The financial statements 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 2009.
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 outperformance 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 2008 to 30 June 2010, the Company had underperformed the benchmark index and no performance fee has been accrued in these financial statements.

3.	Return per ordinary share	(Unaudited) Half year ended 30 June 2010 £'000	(Unaudited) Half year ended 30 June 2009 £'000	(Audited) Year ended 31 December 2009 £'000
	The return per ordinary share is based on the following figures:
	Revenue return	2,783	1,674	3,517
	Capital return	2,073	47,384	109,122
		-----------	-----------	-----------
	Total	4,856	49,058	112,639
		======	======	======
	Weighted average number of ordinary shares in issue	161,451,407	161,451,407	161,451,407

	Revenue return per ordinary share	1.72p	1.04p	2.18p
	Capital return per ordinary share	1.29p	29.35p	67.59p
		----------	----------	-----------
	Total return per ordinary share	3.01p	30.39p	69.77p
		======	======	======

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 2010, being 161,451,407 (30 June 2009: 161,451,407 and 31 December 2009: 161,451,407).

5.	Going concern
	The Directors believe that it is appropriate to adopt the going concern basis in preparing the financial statements. The assets of the Company consist mainly of securities that are readily realisable and, accordingly, the Company has adequate financial resources to continue in operational existence for the foreseeable future.

6.	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 2009 and 30 June 2010 has not been audited or reviewed by the Company's auditors. The information for the year ended 31 December 2009 has been extracted from the latest published audited financial statements. The audited financial statements for the year ended 31 December 2009 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 498(2) or 498(3) of the Companies Act 2006.

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Page 9 of 9

HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Unaudited Results for the Half Year ended 30 June 2010


7.	Unaudited Report for the half year ended 30 June 2010
	The unaudited report for the half year ended 30 June 2010 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.

List and Valuation of Investments

as at 30 June 2010

	£'000	%		£'000	%
CHINA			KOREA
Agile Property	9,173	2.9	Hyundai Engineering & Construction	4,634	1.5
Air China	8,980	2.8	KB Financial Group	7,081	2.2
Bank of China	9,057	2.9	LG Display	8,086	2.6
China Dongxiang	8,944	2.8	Samsung Electronics	12,166	3.8
China Life Insurance	10,297	3.3	Shinhan Financial Group	7,664	2.4
China Merchant Holdings	5,547	1.7		-----------	-------
China National Building Materials	4,831	1.5	TOTAL KOREA	39,631	12.5
CNOOC	10,336	3.3		-----------	-------
Ctrip.Com	11,297	3.6
Guangzhou R&F Properties	4,437	1.4	SINGAPORE
Industrial & Commercial Bank of China	13,085	4.1	Banyan Tree Holdings	4,201	1.3
Sands China	11,320	3.6	DBS Group	9,761	3.1
Tencent Holdings	10,966	3.5	Keppel Corporation	7,020	2.2
	-----------	-------	K-Green	173	0.1
TOTAL CHINA	118,270	37.4		-----------	-------
	-----------	-------	TOTAL SINGAPORE	21,155	6.7
				-----------	-------
HONG KONG			TAIWAN
Hang Lung Properties	6,448	2.0	Advanced Semiconductor	7,846	2.5
Midland Holdings	3,660	1.2	Asustek Computer	4,529	1.4
Sun Hung Kai Properties	10,996	3.5	China Airlines	3,094	1.0
	-----------	-------	EVA Airways	2,835	0.9
TOTAL HONG KONG	21,104	6.7	Foxconn Technology	7,790	2.5
	-----------	-------	HTC Corp	7,708	2.4
			Mediatek	10,404	3.3
INDIA			Pegatron Corporation	1,533	0.5
Ashok Leyland	5,014	1.6	Yuanta Financial Holdings	7,371	2.3
Bharat Heavy Electricals	9,539	3.0		-----------	-------
Eredene Capital *	1,104	0.3	TOTAL TAIWAN	53,110	16.8
ICICI Bank	9,875	3.1		-----------	-------
Tata Steel	6,265	2.0
Unitech	7,612	2.4	THAILAND
	-----------	-------	Bangkok Bank	6,290	2.0
TOTAL INDIA	39,409	12.4		-----------	-------
	-----------	-------	TOTAL THAILAND	6,290	2.0
				-----------	-------
INDONESIA
Bank Mandiri	12,958	4.1	VIETNAM
	-----------	-------	Vietnam Enterprise Investments	4,551	1.4
TOTAL INDONESIA	12,958	4.1		-----------	-------
	-----------	-------	TOTAL VIETNAM	4,551	1.4
				-----------	-------
				-----------	-------
			TOTAL INVESTMENTS	316,478	100.0
				-----------	-------