RNS Number:1467Q
F&C Pacific Inv Tst
25 September 2003
EMBARGOED UNTIL 07.00AM THURSDAY 25 SEPTEMBER 2003
Contact: Tony Broccardo, F&C Management Limited, 020 7628 8000/Emma Chilvers,
Lansons Communications, 020 7294 3606
F&C PACIFIC INVESTMENT TRUST PLC
Unaudited Interim Statement of Results
for the half-year to 31 July 2003
SUMMARY OF CONSOLIDATED RESULTS
31 July 2003 31 January 2003 % change
Consolidated net assets #203.4m #176.9m +15.0
Consolidated net asset value per
share 109.22p 93.33p +17.0
Share price 94.75p 81.25p +16.6
Commenting on these results Christopher Purvis, the Chairman said:
Market Environment
During the six months under review, the world's stockmarkets performed well.
This was reflected by an 18.4% rise in the FTSE World Index (sterling).
In the first two months, markets were relatively unchanged. However, since the
middle of March there has been a significant recovery. Markets had been very
depressed in the first quarter and this rise was partly a technical correction;
but also there was an increase in optimism about economic recovery, particularly
in the United States.
The Pacific region performed over the six months broadly in line with the rest
of the world; the Company's benchmark rose by 18.0%. The first two months were
similar to other markets in being lacklustre. The outbreak of SARS (Severe Acute
Respiratory Syndrome) was a particular cause of concern in the region. But since
the end of March markets in the region, particularly those outside Japan, rose
significantly.
Portfolio & Performance
The net asset value of your Company increased by 17.0% during the six month
period. This represented slight under-performance of the benchmark which, as
noted above, increased by 18.0%. The asset allocation between Japan and the rest
of Asia was a positive factor: the Company was more heavily invested in the rest
of Asia than in Japan. The Japanese market performed well, rising by 14.8%, but
the rest of the region performed more strongly, rising by 21.2%.
Asset allocation within the rest of the region was also positive. In particular,
the Taiwanese market, in which we had an overweight position, performed well
over the last four months of the half-year. This was caused by the rapid
recovery from SARS and the better outlook for electronics.
The main reason behind the underperformance during the six months was the
selection of stocks in the Japanese portfolio. The Japanese portfolio was
structured in a defensive manner at the beginning of our financial year,
reflecting concerns about the outlook for Japan. However, as noted above, the
market rallied by 14.8% over the period and indeed the bottom in the Japanese
market occurred later than in other markets and the recovery from May to July
was sharper. This led to the high risk sectors in which we were underweight, for
example financials and information technology, performing particularly well.
Meanwhile, the sectors to which we were more exposed, for example
pharmaceuticals, advanced more slowly than the market.
Management
F&C Management has appointed Christian Dangerfield to run their Pacific team;
and, when he joins F&C Management later this year, he will be the lead manager
of the Company. In the meantime the Company is being managed by Tony Broccardo,
F&C Management's Chief Investment Officer, together with the other members of
the Pacific team at F&C. The Board welcomes this new appointment. The Board
continues to monitor performance closely. As a result of the new remuneration
arrangements for the Manager introduced on 1 February 2003 the management fee
for the period was #319,000, compared with #1,307,000 for the same period last
year.
Share Buybacks
We have continued to repurchase shares for cancellation during the period under
review. Since the beginning of the period, we have bought back and cancelled
3,306,100 shares at an average discount of 17.1%. This is equivalent to 1.75% of
the shares in issue at the end of the last financial year.
Your Board will continue to monitor the discount to net asset value and believes
that buybacks, combined with marketing activities, are important factors in
limiting fluctuations caused by supply and demand imbalances.
Outlook
Our managers are optimistic about economic developments in the region,
particularly outside Japan. Domestic demand continues to pick up in a number of
countries and China is becoming an evermore important driver of export growth.
Many stocks in the region are attractively valued. There are many world class
companies in Japan which are on reasonable valuations and have the potential to
rise significantly. However, Japan's economy remains troubled by deflation and
inadequate reform and the economy is dependent on strengthening external demand
- either from the USA or the Pacific region. Our managers are therefore laying
greater emphasis on markets in other parts of the region.
Christopher Purvis
September 2003
Unaudited Consolidated Balance Sheet
31 July 31 July 31 January 2003
2003 2002 #'000s
#'000s #'000s
Fixed assets
Investments 201,134 237,749 177,099
Current assets
Debtors 736 3,407 4,902
Taxation recoverable 293 - 1,221
1,029 3,407 6,123
Cash at bank and short-term deposits 9,265 26,616 3,584
10,294 30,023 9,707
Current liabilities
Creditors: amounts falling due within one year
Foreign currency loans (5,161) - (5,072)
Other (2,860) (1,040) (4,824)
(8,021) (1,040) (9,896)
Net current assets/(liabilities) 2,273 28,983 (189)
Total assets less current liabilities 203,407 266,732 176,910
Creditors: amounts falling due
after more than one year
Foreign currency loans - (40,089) -
Net assets 203,407 226,643 176,910
Capital and Reserves
Called up share capital 46,561 52,187 47,387
Capital redemption reserve 11,010 5,384 10,184
Share premium 5 5 5
Capital reserves 137,097 160,306 111,826
Revenue reserve 8,734 8,761 7,508
Total equity shareholders' funds 203,407 226,643 176,910
Net asset value per ordinary share - pence 109.22 108.57 93.33
The geographical distribution of investments at 31 July 2003 was: Japan - 43.6%;
Australasia - 19.5%; South Korea - 9.8%; Taiwan - 7.6%; Hong Kong - 6.3%; China
- 4.2%; Other - 9.0%.
Unaudited Consolidated Statement of Total Return (incorporating the Revenue
Account*)
for the 6 months to 31 July
2003 2002
Revenue Capital Total Revenue Capital Total
#'000s #'000s #'000s #'000s #'000s #'000s
Gains/(losses) on investments - 28,004 28,004 - (22,425) (22,425)
Exchange gains/(losses) 184 (127) 57 (40) (986) (1,026)
Income 2,475 - 2,475 2,550 - 2,550
Management fee (521) 202 (319) (1,307) - (1,307)
Other expenses (363) (31) (394) (414) (56) (470)
Net return before finance costs
and taxation 1,775 28,048 29,823 789 (23,467) (22,678)
Interest payable and similar
charges (10) - (10) (396) - (396)
Return on ordinary activities
before taxation 1,765 28,048 29,813 393 (23,467) (23,074)
Taxation on ordinary activities (539) (163) (702) (205) (264) (469)
Return attributable to equity
shareholders 1,226 27,885 29,111 188 (23,731) (23,543)
Dividend on ordinary shares - - - - - -
Amount transferred
to/(from) reserves 1,226 27,885 29,111 188 (23,731) (23,543)
Return per ordinary share -
pence 0.65 14.85 15.50 0.09 (11.31) (11.22)
* The revenue column of this statement is the profit and loss account of the
Group.
All revenue and capital items in the above statement derive from continuing
operations.
Unaudited Summarised Consolidated Cash Flow Statement for the 6 months to 31
July
2003 2002
#'000s #'000s
Net cash inflow from operating activities 2,181 845
Interest paid (11) (399)
Total tax received/(paid) 370 (237)
Net cash inflow from financial investment 9,464 18,428
Equity dividends paid (1,968) (2,214)
Net cash inflow before use of liquid resources and
financing 10,036 16,423
Increase in short-term deposits (3,286) (379)
Net cash outflow from financing (2,518) (2,165)
Increase in cash during the period 4,232 13,879
The Interim financial statements have been prepared on the basis of the
accounting policies set out in the Company's financial statements at 31 January
2003.
The Board recommends that no interim dividend payment be made.
The Report and Accounts will be posted to shareholders in early October 2003.
Copies may be obtained during normal business hours from the Company's
Registered Office, Exchange House, Primrose Street, London EC2A 2NY.
By order of the Board
F&C Management Limited, Secretary
24 September 2003
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ILFERADISFIV