Interim Management Statement

RNS Number : 2432B

Henderson TR Pacific Inv. Trust PLC

22 October 2009

 



HENDERSON TR PACIFIC INVESTMENT TRUST PLC

HENDERSON GLOBAL INVESTORS 

HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Interim Management Statement 

Review of the period from 1 July 2009 to 30 September 2009

The Directors of Henderson TR Pacific Investment Trust plc hereby announce the following:

MATERIAL EVENTS OR TRANSACTIONS DURING THE PERIOD

Portfolio Comments: Asian markets were strong during the third quarter with the MSCI AC Asia ex Japan Index rising by 22.7% in sterling terms, led by Korea and Indonesia. Returns were boosted by stronger currencies across the region, particularly in Korea, as the outlook for exports improved following a stabilisation in global economic growth. China and Hong Kong lagged the region following strong first half returns and fears that the Chinese authorities were about to tighten monetary policy.

The relative performance of your Trust was hurt during the quarter by the very strong returns from Korea, which remains an underweight position given the lack of attractive growth companies in the market. Our largest overweight position in China underperformed Korea and the rest of the region. Among the best performing positions in the fund were Indian stocks, Tata Steel and ICICI Bank, and Chinese internet shares Ctrip and Tencent. Financial shares in general performed well as it became clear that the credit cycle in Asia was much more benign that previously feared.

We added new positions in Advanced Semiconductor Engineering and Samsung Electronics on signs that the global semiconductor cycle was turning up. We also initiated a new position in China Merchant Holdings, which controls key ports in Eastern China, in anticipation of a stabilisation in Chinese exports. In Hong Kong, the relative shortage of land available for development led us to switch from developer, Sinoland, to property broker, Midland Realty, to take advantage of rising secondary market prices and volumes. We added a new position in Hang Lung Properties which is an owner and developer of shopping malls in mainland China. Indian property developer, Unitech was also a new position for your Trust after raising new capital to repair its balance sheet and a strong turnaround in the Delhi and Mumbai property markets.

Despite the continued strong performance of Asian markets, Asian equities remain a buy and investors should be ready to add to their holdings on any weakness. A combination of a stabilisation in the economies of the West, strong government policy support in Asia as well as attractively valued stock markets and recovering earnings continue to offer equity investors the potential for substantial returns over the medium and longer term.

Net Asset Value: The net asset value at 20 October 2009 was 175.8p including income and 173.7p excluding income.

Gearing: At the end of the period the Company had increased gearing to 9% (at 30 June 2009: 7%)

Dividends:  Following shareholder approval a final dividend of 2.40p per ordinary share, in respect of the year ended 31 December 2008, was paid on 30 April 2009 to holders registered on 27 March 2009.  The ex-dividend date was 25 March 2009.

Share Capital:  During the period the Company did not buy back any ordinary shares.

There are no other material events or transactions to report.

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HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Interim Management Statement

PERFORMANCE AND FINANCIAL HIGHLIGHTS

Financial Position Source: Henderson/Fact Sheet

	at 30 September 2009	at 30 June 2009
Ordinary share price	154.0p	131.5p
Discount	9.5%	6.4%
Total gross assets	£299m	£243m
Net asset value (cum income)	170.2p	140.6p
Net asset value (ex income)	168.0p	139.5p
Gearing	9%	7%
Yield	1.56%	1.83%
Total Expense Ratio	0.85%	0.85%

Performance at 30 September 2009 (total return % change) (Source: Datastream)

	YTD	1m	3m	6m	12m	3y
Net asset value	55.9	12.9	19.6	51.5	46.2	50.7
Share price	56.3	9.4	17.1	51.4	49.9	52.1
Benchmark *	45.5	10.9	22.7	44.1	41.6	46.8

* The benchmark is the MSCI All Country Asia ex-Japan Index 

THE PORTFOLIO (Source: Henderson/Fact Sheet)

Top 10 Investments 

% of total  assets at  30 September 2009		% of total  assets at   30 June 2009
Industrial & Commercial Bank of China	4.2	China Mobile	5.8
China Mobile	4.1	Agile Property	5.7
Tencent Holdings	4.0	Industrial & Commercial Bank of China	5.7
Mediatek	3.9	Sun Hung Kai Properties	4.0
Agile Property	3.8	Petrochina	3.9
Sun Hung Kai Properties	3.7	Yuanta Financial	3.6
Samsung Electronics	3.5	Tencent	3.6
Bank Mandiri	3.5	China Life Insurance	3.6
China Life Insurance	3.4	China Overseas Land & Investment	3.5
ICICI Bank	3.3	Mediatek Inc	3.5
	------		------
Top 10 =	37.4	Top 10 =	42.9
	------		------

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HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Interim Management Statement 

Geographic Breakdown	% at 30 September 2009	% at 30 June 2009
China	34.9	38.3
Taiwan	14.1	12.5
India	13.1	9.5
Hong Kong	11.9	14.4
South Korea	11.8	9.5
Singapore	6.4	6.3
Indonesia	3.5	2.7
Thailand	2.2	4.4
Vietnam	1.3	1.7
Cash & Fixed Interest	0.8	0.7
	-------	-------
	100.0 ====	100.0 ====

Sector Breakdown	% at 30 September 2009	% at 30 June 2009
Financials	50.8	51.5
Technology	17.2	10.9
Industrials	14.5	10.3
Consumer Services	7.0	7.2
Telecommunication	5.6	9.5
Oil & Gas	2.5	5.6
Basic Materials	1.6	4.3
Cash & Fixed Interest	0.8	0.7
	-------	-------
	100.0 ====	100.0 ====

PROFILE

Objective: The objective of Henderson TR Pacific Investment Trust plc is to seek a high rate of total return from companies operating primarily in the Pacific region excluding Japan and Australasia.

Prospects: High levels of growth, particularly in comparison with the US and Europe, continue to provide the potential for attractive long term returns.

Benchmark: MSCI All Country Asia ex-Japan Index

Sector: Asia Pacific excluding Japan

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HENDERSON TR PACIFIC INVESTMENT TRUST PLC

Interim Management Statement 

Fund Manager: Andrew Beal

Fund Manager Profile: Andrew Beal has managed Henderson TR Pacific since 2005. Previously, he was Lead Portfolio Manager, Emerging Markets and Pacific Rim for Nicholas Applegate Capital Management where his PIMCO-NACM Asia Pacific fund was the recipient of the 2005 Lipper award for consistency of risk-adjusted returns over 3 years. 

Andrew has specialised in the Asia Pacific region since 1994 and describes himself as a stock picker with a growth bias. He targets companies with accelerating earnings trading at discounts to their long-term franchise. 

Board of Directors: David Robins (Chairman), Hugh Aldous, Christopher Keljik, David Brief, Struan Robertson, Alexandra Mackesy.

Key Dates:

Year End - 31 December

Report and Accounts posted - March

Annual General Meeting - April

Annual Dividend Paid - April

Website: The Company has its own website at www.hendersontrpacific.com where you will find further details about the Company, including up to date NAV, daily share prices and downloadable literature.

Henderson TR Pacific Investment Trust plc is managed by Henderson Global Investors Limited.  

For further information, please contact:

Andrew Beal Fund Manager Henderson TR Pacific Investment Trust plc Telephone: [phone]

James de Sausmarez Head of Investment Trusts Henderson Global Investors Telephone: [phone]

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