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Henderson AsianGrwth (ATR)

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Monday 11 March, 2013

Henderson AsianGrwth

Final Results

RNS Number : 7440Z
Henderson Asian Growth Trust plc
11 March 2013
 



                                    Page 1 of 14

HENDERSON ASIAN GROWTH TRUST PLC

Annual Financial Report for the year ended 31 December 2012

 

 

This announcement contains regulated information

 

Henderson Asian Growth Trust plc announces its results for the year ended 31 December 2012.

 

Henderson Asian Growth Trust plc seeks a high rate of total return from companies operating primarily in the Asian region excluding Japan and Australasia.

 

 

Key Data




Per ordinary share

31 December

2012

31 December 2011

Change %

Net asset value #

201.2p

167.5p

+20.1

Share price #

185.0p

152.3p

+21.5

Discount

8.1%

9.1%


Total return/(loss)

35.6p

(51.2)p


Net revenue return

2.9p

3.6p

-19.4

Dividend per ordinary share in respect of the year

3.25p

3.25p

0.0

Gearing*

0.0%

4.1%


 

# Excluding reinvested income.

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

 

 

Performance for 12 Months to 31 December 2012

1 year

%

3 years

%

5 years

%

10 years

%

Net asset value total return (1)

22.1

16.3

18.1

255.2

Share price total return (1)

23.7

16.9

24.9

260.7

Peer group NAV total return (2)

19.0

28.1

27.3

330.0

MSCI All Country Asia ex-Japan Index (3)

17.3

21.2

23.2

299.0

 

 

(1) Source: Morningstar for the AICusing cum income net asset value for one and three years and capital net asset value plus income reinvested for all other periods.

(2) Source: Morningstar for the AIC. The performance of a group of leading investment trust competitors (weighted average).

(3) Source: Datastream (gross income reinvested).

 

 

 

 

 

 

 

 

 

 


Page 2 of 14

 

HENDERSON ASIAN GROWTH TRUST PLC

Annual Financial Report for the year ended 31 December 2012

 

Commenting on the results Chairman, David Robins, said:

Although your Company's portfolio performed well in the second half of last year when equity markets rallied and your portfolio manager's focus on mispriced growth stocks was particularly successful, your Board's concern about the poor long term record triggered a review and that review concluded that it was in the best interests of shareholders to change investment manager.

 

Performance

Following the relatively modest performance in the first half, the Company rallied strongly in the second half of 2012, generating a share price total return of 23.7% and a net asset value total return of 22.1% for the full year. This performance compared with a rise in the MSCI All Country Asia ex-Japan Index (sterling adjusted) of 17.3% and a peer group average Net Asset Value (NAV) total return of 19.0%.

 

Dividend

The level of income received by the Company declined from the relatively high levels generated from normal dividends and stock dividends in 2011. As it is possible to draw upon the Company's revenue reserves to pay dividends, the Board has decided to utilise some of those reserves to maintain the dividend at 3.25p per share, which will be payable on 22 March 2013.

 

Discount Control and Share Repurchases

In order to maintain the discount at a level of 10% or less, the Company bought back and cancelled 12,706,126 shares during the second half of the year. Notwithstanding this activity, by late in the year the average discount for the period had widened beyond 10%, as the share price failed to keep up with the rise in NAV per share in low volumes of trading. Since a tender offer became likely anyway as part of the selection of a new investment manager (see below) share repurchases were suspended. The discount subsequently narrowed as announcements of the Company's reorganisation were made public.

 

Fees and Expenses

Despite the improved performance during the course of 2012, the Company's performance over the rolling three year period, still lagged the Index by 4.9 percentage points. Accordingly, no top up or performance fee is due to be paid.

 

Total management fees for the year rose to £1.840m compared with £1.125m the year before, largely as a result of the clawback of £875,000 in 2011.

 

Ongoing Charges, the new definition of expenses as proposed by the Association of Investment Companies, exclude both financing costs (ie the costs of loans, debentures or CFD's used for gearing purposes), performance fees and non recurring expenses. The Company's Ongoing Charges in 2012 amounted to 0.9% of assets under management compared with an average for the peer group of 1.2%.

 

Long Term Performance

As has been noted in previous Annual Reports, your Board has been particularly concerned about the performance of the Company and the volatility of returns to shareholders. The intention of the Board has been for the Company to provide capital growth with a degree of capital protection and whilst there have been periods of outstanding performance, the overall record has not been good.

 

After a very poor year in 2011, the net asset value total return was well behind both the Index and the average of the peer group over one, three and five years. The share price total return was also behind the index and the peer group over one and five years, albeit in line with the index but still behind the peer group over three years. There was one mitigating factor in that the Company focuses on growth stocks, and markets over the last few years have been focused on income.

 

 

 

 

 

Page 3 of 14

 

HENDERSON ASIAN GROWTH TRUST PLC

Annual Financial Report for the year ended 31 December 2012

 

Chairman's statement continued

 

The Company's fee structure was specifically devised to incentivise capital protection in falling markets. Performance in 2011 meant that there was a significant claw back of management fees of £875,000. The Board was disappointed that the Company's investment manager, Henderson Global Investors, did not do more to address this underperformance. Accordingly, the Boarddecided to set a twelve month time horizon for an improvement in performance, and relayed this to the manager.

 

One of the other key considerations was that, whilst the Board was supportive of the portfolio manager's approach to investment, which differentiates the Company, the Board had been concerned for some time that the investment manager had too few analytical resources based either in London or the Asia region, to support the portfolio manager in assessing the prospects for potential investments, the outlook for companies held in the Company's portfolio or indeed the market and macro economic outlook.

 

By the middle of 2012, performance had improved somewhat compared with the index and the peer group, but still lagged over the one, three and five year time horizons, and the Board's concern at the manager's lack of action was increasing. As a result, the Board decided to undertake a strategic review of the Company's investment management arrangements, in conjunction with Winterflood, the Company's broker, and Mercer, the global investment consultant.

 

Strategic Review

The Company's strategic review was announced to the market on 22 October 2012. A thorough review of potential investment managers internationally was undertaken by Mercer, including highly rated managers in the US, Europe and Asia. Winterflood also issued an announcement requesting proposals from management houses to take over the investment management of your Company. A sub-committee of the Board, comprising Hugh Aldous, David Brief and myself, then considered the 26 proposals received. In combination with the extremely useful analysis from Mercer and input from Winterflood, these proposals were whittled down to a short list of potential investment managers, who were then interviewed. Finally, we reduced this number to three, plus Henderson, who were asked to present to the full Board.

 

The result of this process is that the Board has decided to transfer the investment management of the Company to Schroders. This team is highly rated by Mercer, has had an outstanding performance record over three and five years, and is one of the best of those considered in protecting capital in down markets.

 

The Company's assets will be managed by Robin Parbrook and King Fuei Lee, two of Schroders' senior portfolio managers who are based in Hong Kong and Singapore respectively. They currently jointly manage Schroder ISF Asia Total Return, an open-ended fund. It has US$1.9 billion of assets and has maintained a top quartile performance record since its inception in November 2007. From inception to 30 November 2012 Schroder ISF Asia Total Return generated an annualised 12.9% return for its investors (in US$) and low volatility of returns with annualised standard deviation of 21.1% (Source: Lipper, Schroders). The Schroder ISF Asia Total Return Strategy is currently closed to investment and has not been widely available to retail investors. The Board believes there is investor interest in the ATR strategy in a closed-end form.

 

The Board was very impressed both by the strength and depth of Schroders' research team in Asia and by the rigorous and innovative approach to portfolio construction and capital protection employed by the portfolio managers. The investment strategy employed by ISF Asia Total Return would be modified for the Company to accommodate a bias towards small and mid-cap companies, which is made practicable by the closed-end nature of the Company.

 

 

 

 

 

 

 

 

Page 4 of 14

 

HENDERSON ASIAN GROWTH TRUST PLC

Annual Financial Report for the year ended 31 December 2012

 

Proposals to Shareholders

Shareholders were sent a circular on 20 February 2013 which sets out the proposals on which they will have an opportunity to vote at a General Meeting to be convened on 15 March 2013. At the time of writing, the outcome of the vote is unknown, but the Board is proposing the following:

 

That Schroders be appointed as Manager of the Company and that approval be given to change the Company's investment policy to one which seeks a high rate of total return from companies operating primarily in Asia, including Australasia but excluding Japan. The investment strategy to be adopted by the Company will also provide downside protection. If shareholders approve the investment policy change summarised above, the Company would actively defend a discount to NAV on the Company's shares of no greater than 9%, in normal market conditions, through the use of the Company's share buyback authorities. Shareholders would have the opportunity to vote on the Company's continuation every three years, with the first opportunity being at the AGM in 2016.

 

Schroders has agreed to waive its proposed base management fee and any performance fee in respect of the first six months of its appointment. The new fee arrangements will then be a management fee of 0.65% and an absolute performance fee of 10% over an annual hurdle of 107% subject to a 2% cap and a high watermark.

 

In addition to proposing the changes described above, the Board will seek shareholder approval for a tender offer for up to 50% of the Company's shares in issue at Formula Asset Value (namely Net Asset Value less applicable costs of conducting the tender offer, including portfolio realisation costs).

 

The level of the tender may seem surprising, but, during the course of the Strategic Review, it became apparent that certain of the Company's larger shareholders were seeking to realise the value of their investment at close to NAV. In order to allow the Board to conclude the review process with the necessary shareholder support, the Board deemed it necessary to conduct a tender offer of the size proposed.

 

It has been heartening to see that many of the closed-end fund sector analysts have supported the move of the Company's investment management to Schroders. The Board hopes that shareholders' interest in the attractive and proven investment strategy to be implemented by Schroders, following their appointment, will result in the tender offer being undersubscribed.

 

The Board believes that the proposed tender offer combined with the appointment of Schroders and the proposed revisions to the Company's investment policy are all in the best interests of shareholders. Together they will provide shareholders with an opportunity to participate in a successful absolute return focused strategy which is differentiated from all other closed-end Asian investment companies while allowing shareholders wishing to realise their investment in the Company to do so.

 

Outlook

With fears over a break-up of the Euro zone having receded and the "fiscal cliff" in the USA having been avoided, at least for the time being, markets heaved a sigh of relief and rallied strongly at the beginning of 2013. There are still many uncertainties, but the economic outlook is looking somewhat more positive in the US, whilst growth in China seems to have turned a corner, Japan has adopted more expansionary fiscal and monetary policies and there continue to be expectations of a better growth outlook throughout the Asian region.

 

 

 

 

 

 

 

 

 

 

Page 5 of 14

 

HENDERSON ASIAN GROWTH TRUST PLC

Annual Financial Report for the year ended 31 December 2012

 

On the assumption that there will be a new Manager of the Company this year, there will be significant restructuring of the portfolio in line with the new investment policy, as well as tactical hedging of markets which the new portfolio managers feel may be overbought, along with strategic hedging of positions in countries where the portfolio managers have a negative economic outlook. Perhaps the greatest risks this coming year will be around potential overheating in some of the region's economies and the re-emergence of inflation, given the degree of monetary easing which has taken place globally over the last five years. However, there seems to be a sense that the bull market in bonds, particularly government issues, is running out of steam, and that the improving economic prospects generally are positive for equities, and particularly for companies exhibiting sound growth credentials. We believe, therefore, that the stock picking prowess of Robin Parbrook and King Fuei Lee, who we propose will takeover the Company's management, coupled with judicious downside protection, will generate for shareholders a superior performance over the medium to long term.

 

Principal risks and uncertainties

The Board has drawn up a matrix of risks facing the Company and has put in place a schedule of investment limits and restrictions, appropriate to the Company's investment objective and policy, in order to mitigate these risks as far as practicable. The principal risks which have been identified and the steps taken by the Board to mitigate these are as follows:

 

Portfolio and market

Although the Company invests almost entirely in securities that are quoted on recognised markets, share prices may move sharply. The companies in which investments are made may operate unsuccessfully, or fail entirely. A fall in the market value of the Company's portfolio would have an adverse effect on shareholders' funds. The Board manages the overall level of market risk in the investment portfolio by ensuring full and timely reporting of relevant information from the manager on a bi-weekly basis. The Board reviews the portfolio at each Board meeting and endeavours to mitigate this risk through diversification of investments in the portfolio. The manager manages its exposure to market price risk through its asset allocation decisions and if necessary by buying/selling put or call options on indices relevant to its portfolio. Where appropriate, foreign currency borrowings are used to achieve the portfolio characteristics to minimise the exposure to foreign currency risk. The possible effects on fair values and cash flows arising on account of changes in interest rates are considered when making investment decisions and the level of gearing.

 

Investment activity and performance

An inappropriate investment strategy (for example, in terms of asset allocation or the level of gearing) may result in underperformance against the Index and the companies in its peer group. The Board monitors at each Board meeting the manager's compliance with the Company's objectives, and is directly responsible for investment strategy, the level of gearing and asset allocation between countries and economies. For managing the liquidity risk, the Board gives guidance to the Manager as to the maximum amount of the Company's exposure to individual investments. Short term borrowings are used to manage short term cash requirements.

 

Tax and regulatory risks

A breach of Section 1158 of the Corporation Tax Act 2010 could lead to a loss of investment trust status, resulting in capital gains realised within the portfolio being subject to corporation tax. A breach of the UKLA Listing Rules could result in suspension of the Company's shares, while a breach of the Companies Act 2006 could lead to criminal proceedings, or financial or reputational damage. The Company must also ensure compliance with the listing rules of the New Zealand Stock Exchange. The manager has contracted to provide investment, company secretarial, administration and accounting services through qualified professionals. In the year under review the Board receives internal control reports produced by the manager on a quarterly basis, which confirm regulatory compliance during the year.



Page 6 of 14

 

HENDERSON ASIAN GROWTH TRUST PLC

Annual Financial Report for the year ended 31 December 2012

 

Financial

By its nature as an investment trust, the Company's business activities are exposed to market risk (including currency risk, interest rate risk and market price risk), liquidity risk, and credit and counterparty risk. Details of these risks, how they are managed and the exposures to these risks are given in the Annual Report and Financial Statements.

 

Operational

Disruption to, or failure of, the manager's accounting, dealing or payment systems or the Custodian's records could prevent the accurate reporting and monitoring of the Company's financial position. The Company is also exposed to the operational risk that one or more of its suppliers may not provide the required level of service. Details of how the Board monitors the services provided by the manager and its other suppliers, and the key elements designed to provide effective internal control, are explained further in the internal control section in the Annual Report and Financial Statements.

 

Related party transactions

Other than the relationship between the Company and its Directors, the provision of investment management, accounting, company secretarial and administration services by wholly owned subsidiary companies of Henderson Group plc ("Henderson") was the only related party arrangement in place at the date of this report. Other than the fees payable by the Company in the ordinary course of business, there have been no material transactions with this related party which have affected the financial position or performance of the Company in the financial year.

 

Statement of Directors' Responsibilities

In accordance with Disclosure and Transparency Rule 4.1.12, each of the Directors confirm to the best of their knowledge:

 

·   the financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), give a true and fair view of the assets, liabilities, financial position and net return/(loss) of the Company; and

 

·   the Directors' Report in the Annual Report and Financial Statements includes a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

 

For and behalf of the Board

Hugh Aldous

Director

11 March 2013

 

 

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 7490 8828

 

 

 

 

 

 

 

 

 

 

Page 7 of 14

 

HENDERSON ASIAN GROWTH TRUST PLC

Annual Financial Report for the year ended 31 December 2012

 

Income Statement

For the year ended 31 December 2012

 





Year ended 31 December 2012

Year ended 31 December 2011


Revenue

Return

Capital

Return

 

Total

Revenue

Return

Capital

Return

 

Total


£'000

£'000

£'000

£'000

£'000

£'000








Gains/(losses) from investments held at fair value through profit or loss (note 2)

-

52,103

52,103

-

(86,992)

(86,992)








Income from investments held at fair value through profit or loss (note 3)

6,198

-

6,198

7,625

-

7,625








Other interest receivable and similar

income (note 4)

414

-

414

146

-

146


-------

--------

--------

-------

--------

--------

Gross revenue and capital gains/(losses)

6,612

52,103

58,715

7,771

(86,992)

(79,221)








Management fee (note 5)

(647)

(1,193)

(1,840)

(469)

(656)

(1,125)

Other administrative expenses 

(751)

-

(751)

(658)

-

(658)


-------

--------

--------

-------

--------

--------

Net return/(loss) on ordinary activities before finance charges and taxation

5,214

50,910

56,124

6,644

(87,648)

(81,004)








Finance charges

(71)

(214)

(285)

(234)

(703)

(937)


-------

--------

--------

--------

--------

--------

Net return/(loss) on ordinary activities before taxation

5,143

50,696

55,839

6,410

(88,351)

(81,941)








Taxation on net return on ordinary

activities

(617)

-

(617)

(650)

-

(650)


-------

--------

--------

-------

--------

--------

Net return/(loss) on ordinary activities after taxation

4,526

50,696

55,222

5,760

(88,351)

(82,591)


=====

=====

======

=====

=====

======

Basic diluted return/(loss) per ordinary share  (note 6)

2.9p

32.7p

35.6p

3.6p

(54.8)p

(51.2)p








 

 

The total column of this statement represents the Income Statement of the Company. The revenue return and capital return columns are supplementary to this and are prepared under guidance published by the Association of Investment Companies. All revenue and capital items in the above statement derive from continuing operations. There is no material difference between the profit on ordinary activities before taxation and the profit for the financial year stated above and their historical cost equivalents.

 

 

 

 

 

 

 

 

 

Page 8 of 14

 

HENDERSON ASIAN GROWTH TRUST PLC

Annual Financial Report for the year ended 31 December 2012

 

 

Reconciliation of Movements in Shareholders' Funds

For the year ended 31 December 2012

 

 

 

 

 

 

 

 

Called up

share capital

 

 

Capital redemption reserve

 

 

 

Special reserve

 

 

Other

capital reserves

 

 

 

Revenue reserve

 

 

 

 

Total

Year ended 31 December 2012

£'000

£'000

£'000

£'000

£'000

£'000

At 1 January 2012

8,044

7,862

50,616

189,016

13,879

269,417

Net return from ordinary

activities after taxation

-

-

-

50,696

4,526

55,222

Dividend paid in respect of

year ended 31 December 2011

(paid 1 April 2012)

-

-

-

-

(5,129)

(5,129)

Share buy backs

(635)

635

(21,434)

-

-

(21,434)


----------

-----------

----------

----------

----------

----------

At 31 December 2012

7,409

8,497

29,182

239,712

13,276

298,076


======

======

======

======

======

======





























 

 

 

 

 

 

 

Called up

share capital

 

 

Capital redemption reserve

 

 

 

Special reserve

 

 

Other capital reserves

 

 

 

Revenue reserve

 

 

 

 

Total

Year ended 31 December 2011

£'000

£'000

£'000

£'000

£'000

£'000

At 1 January 2011

8,073

7,833

51,500

277,367

12,797

357,570

Net (loss)/return from ordinary activities after taxation

-

-

-

(88,351)

5,760

(82,591)

Dividend paid in respect of year ended 31 December 2010

(paid 1 April 2011)

-

-

-

-

(4,678)

(4,678)

Share buy backs

(29)

29

(884)

-

-

(884)


----------

-----------

----------

----------

----------

----------

At 31 December 2011

8,044

7,862

50,616

189,016

13,879

269,417


======

======

======

======

======

======

 

 

 

 

 

 

 


Page 9 of 14

 

HENDERSON ASIAN GROWTH TRUST PLC

Annual Financial Report for the year ended 31 December 2012

 

Balance Sheet

At 31 December 2012


 

 

2012

 

 

2011


£'000

£'000




Fixed asset investments held at fair value through profit or loss



Listed at market value

298,003

280,004


----------

----------




Current assets



Cash at bank

451

-

Debtors

395

706


----------

------------


846

706




Creditors: amounts falling due within one year

(773)

(11,293)


----------

-----------

Net current assets/(liabilities)

73

(10,587)


----------

-----------

Total net assets less current liabilities

298,076

269,417


=======

=======




Capital and reserves



Called up share capital (note 7)

7,409

8,044

Capital redemption reserve

8,497

7,862

Special reserve

29,182

50,616

Other capital reserves 

239,712

189,016

Revenue reserve

13,276

13,879


----------

-----------

Total shareholders' funds

298,076

269,417


=======

=======

Net asset value per ordinary share (basic and diluted) (note 8)

201.2p

167.5p

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Page 10 of 14

 

HENDERSON ASIAN GROWTH TRUST PLC

Annual Financial Report for the year ended 31 December 2012

 

Cash Flow Statement

For the year ended 31 December 2012

 


2012

2012

2011

2011


£'000

£'000

£'000

£'000






Net cash inflow from operating activities


3,696


3,336






Servicing of finance





Interest paid

(288)


(1,022)


 

------------


------------


Net cash outflow from servicing of finance


(288)


(1,022)






Financial investment





Purchases of investments

(120,851)


(195,530)


Sales of investments

154,420


237,244



------------


------------


Net cash inflow from financial investment


33,569


41,714






Equity dividends paid


(5,129)


(4,678)



------------


----------

Net cash inflow before financing


31,848


39,350






Financing





Repurchase of ordinary shares

(21,434)


(884)



------------


------------


Net cash outflow from financing


(21,434)


(884)



------------


----------

Increase in cash


10,414


38,466



======


======

 





Reconciliation of net cash flow to movement
in net cash/(debt)





 










Change in net debt resulting from cash flows


10,414


38,466

Exchange movements


1,107


982



-----------


-----------



11,521


39,448

Net debt at 1 January


(11,070)


(50,518)



-----------


-----------

Net cash/(debt) at 31 December


451


(11,070)

 


=======


=======

 

 

 



Page 11 of 14

 

HENDERSON ASIAN GROWTH TRUST PLC

Annual Financial Report for the year ended 31 December 2012

 

 

Notes:

 

1.

Accounting policies


Basis of preparation

The financial statements have been prepared on a going concern basis and under the historical cost basis of accounting, as modified to include the revaluation of investments at fair value through profit or loss. The financial statements have been prepared in accordance with United Kingdom Generally Accepted Accounting Practice (UK GAAP) and with the Statement of Recommended Practice ("the SORP") for investment trusts issued by the Association of Investment Companies ("the AIC") in January 2009 and with those parts of the Companies Act 2006 applicable to companies reporting under UK GAAP. The Company's accounting policies are consistent with the prior year.





2.

Gains/(losses) from investments held at fair value

through profit or loss

2012

£'000

2011

£'000


Gains on sale of investments based on historical cost

10,057

20,094






Less revaluation gains recognised in previous years

(8,430)

(66,977)



----------

----------


Gains/(losses) on investments sold in the year based on carrying

value at previous balance sheet date

1,627

(46,883)


Revaluation of investments held at 31 December

49,369

(41,091)


Exchange gains

1,107

982



----------

-----------



52,103

(86,992)



======

======







2012

2011

3.

Income from investments held at fair value through profit or loss

£'000

£'000


Dividends from listed overseas equities

5,626

6,829


Stock dividends

572

796



-------

-------



6,198

7,625



=====

====







2012

2011

4.

Other interest receivable and similar income

£'000

£'000


Bank interest

-

2


Stock lending income

414

144



-----

-----



414

146



===

===

 

As at 31 December 2012 the Company had securities to the value of £31.6m out on loan (2011: £31.3m). The maximum aggregate value of securities on loan at any time during the year ended 31 December 2012 was £43.9m (2011: £31.3m). The Company's agent holds collateral which is reviewed on a daily basis, comprising equities and government bonds with a market value of 105% of the market value of any securities on loan.

 

 

 

 

 

 Page 12 of 14

 

HENDERSON ASIAN GROWTH TRUST PLC

Annual Financial Report for the year ended 31 December 2012

 

 

Notes continued:

 

5.

Management fee



Year ended 31 December 2012

Year ended 31 December 2011



Revenue Return

Capital

return

 

Total

Revenue

return

Capital

return

 

Total



£'000

£'000

£'000

£'000

£'000

£'000


Investment management fee

397

1,193

1,590

437

1,313

1,750


Clawback of base fee

-

-

-

(218)

(657)

(875)


Accounting, secretarial and administration costs

250

-

250

250

-

250



-------

-------

--------

-------

-------

--------



647

1,193

1,840

469

656

1,125



====

====

=====

====

====

=====


There is no performance fee in respect of the year ended 31 December 2012 (2011: £nil)



6.

Return/(loss) per ordinary share


The total return per ordinary share is based on the net gain attributable to the ordinary shares of £55.222m (2011: net loss of £82.591m) and on 155,131,153 ordinary shares (2011: 161,269,407) being the weighted average number of shares in issue during the year.

 

The total return/(loss) can be further analysed as follows:



2012

2011



£'000

£'000


Revenue return

4,526

5,760


Capital return/(loss)

50,696

(88,351)



---------------

---------------


Total

55,222

(82,591)



=========

=========


Weighted average number of ordinary shares

155,131,153

161,269,407






Revenue return per ordinary share

2.9p

3.6p


Capital return/(loss) per ordinary share

32.7p

(54.8)p



----------

----------


Total return/(loss) per ordinary share

35.6p

(51.2)p



======

======


The Company does not have any dilutive securities. Therefore, the basic and diluted returns/(losses) per share are the same.

 

 

 

 

 

 

 

 

 

 

 

 



Page 13 of 14

 

HENDERSON ASIAN GROWTH TRUST PLC

Annual Financial Report for the year ended 31 December 2012

 

Notes continued:



2012

2011

 

7.

Called up share capital

£'000

£'000

 


Allotted, issued and fully paid:



 


148,182,281 (2011:160,888,407) ordinary shares of 5p each

7,409

8,044

 



======

======

 





 


During the year the Company repurchased for cancellation 12,706,126 (2011: 563,000) of its own issued shares for a total consideration of £21,434,000 (inclusive of stamp duty) (2011: £884,000) leaving a balance of 148,182,281 ordinary shares for the purpose of calculating the net asset value per ordinary share.

 



 

8.

Net asset value per ordinary share


The net asset value per ordinary share is based on net assets attributable to the ordinary shares of £298.076m (2011:£269.417m) and on 148,182,281 (2011:160,888,407) ordinary shares in issue at 31 December 2012.

 

The movements during the year of the assets attributable to the ordinary shares were as follows:



2012

£'000

2011

£'000


Total net assets at 1 January

269,417

357,570


Total net profit/(loss) on ordinary activities after taxation

55,222

(82,591)


Buy back of shares

(21,434)

(884)


Dividend paid in the year (paid in April)

(5,129)

 

(4,678)



-----------

-----------


Total net assets at 31 December

298,076

269,417



======

======



9.

Subsequent Events


The Company has announced a proposed Tender Offer for the purchase of up to 50% of its current issued share capital, and a change in its investment policy and investment manager, details of which can be found in the circular to shareholders dated 20 February 2013.



10.

2011 Financial Information


The figures and financial information for the year ended 31 December 2011 are compiled from an extract of the published accounts for that year and do not constitute statutory accounts.  Those accounts have been delivered to the Registrar of Companies and included the report of the auditors which was unqualified and did not contain a statement under sections 498(2) or 498(3) of the Companies Act 2006.



11.

2012 Financial Information


The figures and financial information for 2012 are extracted from the Annual Report and Financial Statements for the year ended 31 December 2012 and do not constitute statutory accounts.  The Annual Report and Financial statements for the year to 31 December 2012 have been audited but have not yet been delivered to the Registrar of Companies.  The auditors' report on the 2012 annual financial statements was unqualified, did not include a reference to any matter to which the auditors drew attention without qualifying the report, and did not contain any statements under section 498 of the Companies Act 2006.

 

12.

Annual Report and Financial Statements


Copies of the Annual Report and Financial Statements will be posted to shareholders by the end of March 2013 and will be available on the Company's website www.hendersonasiangrowthtrust.com or in hard copy format from the Registered Office.

 

The Annual General Meeting will be held at 31 Gresham Street, London, EC2V 7QA at 12.30 pm on Monday 22 April 2013.

 

13.

Dividend


An interim dividend, in lieu of a final dividend, of 3.25p per ordinary share will be paid on 22 March 2013 to shareholders recorded on the Register of Members on 8 March 2013. The Company's shares will be quoted ex-dividend on 6 March 2013.

 

Page 14 of 14

 

HENDERSON ASIAN GROWTH TRUST PLC

Annual Financial Report for the year ended 31 December 2012

 

Notes continued:



Geographical Distribution of the

Investment Portfolio


 

Sector Analysis of Investment Portfolio


As at

31 December 2012

%



As at

31 December 2012

%

China

34.3


Financials and Property

32.8

Korea

20.1


Consumer Discretionary

29.2

India

11.3


Information Technology

17.9

Hong Kong

10.4


Energy

8.2

Taiwan

7.8


Industrials

6.7

Thailand

5.4


Consumer Staples

2.7

Singapore

3.0


Materials

2.5

Malaysia

2.8


Health Care

0.0

Indonesia

2.6


Telecommunication Services

0.0

Vietnam

1.3


Utilities

0.0

The Philippines

1.0





-------



-------


100.0



100.0


====



====

 

Top Twenty Investments as at 31 December 2012

 

 

Company

 

 

Country

Value of Investment

%

Samsung Electronics

Korea

4.2

China Life Insurance

China

3.3

Petrochina

China

3.2

Zhuzhou CSR Times Electric

China

3.1

Baidu

China

3.1

CITIC Securities

China

3.0

SK Innovation

Korea

2.9

CP All

Thailand

2.8

Hyundai Motor

Korea

2.7

China Overseas Land & Investment

Hong Kong

2.7

Prada

Hong Kong

2.7

Sands China

China

2.7

Dongfeng Motor

China

2.6

Wharf Holdings

Hong Kong

2.6

Bangkok Bank

Thailand

2.6

Tencent

China

2.6

Tata Motors

India

2.6

Bank Mandiri

Indonesia

2.6

Advanced Semiconductor

Taiwan

2.5

Anhui Conch Cement

China

2.5



------------


57.0%


------------

 

- ENDS -

 

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.


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