Although Henderson TR Pacific invests across Asia, it also suits investors looking for significant exposure to China but in a well diversified, focused portfolio of companies. Investors should be prepared to accept some short term volatility in return for the
exciting long term growth of a region set to be the world leader in economic growth.

The Trust seeks a high rate of total return from companies operating primarily in the Pacific region including India, but excluding Japan and Australasia.

• The Fund Manager employs a concentrated portfolio and is looking to find the 40-60 best stock ideas in the region.
• The portfolio is constructed primarily on a stock picking basis and all other characteristics, such as geographic and sector breakdown come as a consequence of stocks selected.
• The Trust delivers diversified exposure to some of the fastest growing economies in the region including China, Hong Kong, Taiwan, India, South Korea, Singapore, Indonesia and Vietnam.

• Most of the investments in this portfolio are not made in Sterling, so exchange rates could affect the value of and income from your investment.
• Asian focused portfolios are exposed to Emerging Markets which tend to be less stable than more established markets and can be affected by local political and economic conditions, reliability of trading systems, buying and selling practices and financial reporting standards.
• This portfolio may hold 40-60 stocks. If one of these investments declines in value, this can reduce the portfolio's value more than if it held a larger number of investments. Full details of risks.

Asian markets rebounded in January helped by better economic news from the US, some tentative signs that the Eurozone may be stabilising and indications that Asia, led by China, is shifting towards more accommodative fiscal and monetary policy. Last year’s laggards, India and China led the way with local currency returns in India further boosted by strength in the rupee. Last year’s winners, Malaysia, Indonesia and the Philippines generally lagged.

Korea was the main detractor with Hyundai Glovis and Hyundai Motor both giving up some of 2011’s impressive gains as a result of profit taking and switching into more cyclically-exposed parts of the market. The main positive contributors were Chinese property stock Agile, which rose strongly on the back of optimism regarding a potentially more positive environment for the sector in China, and Tata Motors, which benefited from less pessimism about the company’s Jaguar Landrover business in Europe.

In the short term, markets are likely to remain volatile, driven by news on the Eurozone and incoming data from Asia indicating the extent of the slowdown in economic activity particularly in China and India. This is likely to be offset by falling inflation and an increasingly aggressive response to slower growth by Asian policymakers. We expect this policy easing to be the decisive factor for markets in 2012 and are therefore positive on the outlook for equity returns.

Andrew Beal
January 2012