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 AIC using 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.
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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
Board decided 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.
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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.
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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:
o 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
o 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
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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)
======= =======
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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.
End CA:00234017 For:HAG Type:FLLYR Time:2013-03-12 08:30:10