PACIFIC ASSETS TRUST PLC - Half-yearly Report

LONDON STOCK EXCHANGE ANNOUNCEMENTPacific Assets Trust plcUnaudited Half Year Results For The Six Months Ended31 July 2013Company SummaryKey StatisticsAs at As at31 July 31 January2013 2013 % changeShare price 163.mini storage0p 147.5p +10.5Net asset value per share 168.2p 160.6p +4.7Discount of share price to net asset value 3.1% 8.2% -per shareShareholders' funds 196.5m 187.6m +4.7Market capitalisation 190.5m 172.4m +10.5Six months One year to to31 July 31 January2013 2013Share price (total return)* +12.3% +30.9%Net asset value per share (total return)* +6.9% +24.8%MSCI All Country Asia ex Japan Index (total -1.1% +12.1%return, sterling adjusted)**Source: MorningstarYear ended Year ended31 January 31 JanuaryDividends 2013 2012Final dividend per share 2.60p 2.60p -Half Year's Highs/Lows High LowNet asset value per share 178.2p 152.5pShare price 167.1p 143.0pDiscount of share price to net asset value 1.4% 12.2%per share****Discount high - Narrowest discount in period Discount low - Widest discount inperiodChairman's Statement"Following excellent performance last year I am pleased to report that thecurrent financial year has started strongly."PerformanceFollowing excellent performance last year I am pleased to report that thecurrent financial year has started strongly. During the six month period ended31 July 2013, the Company's share price total return was +12.3% and the netasset value total return was +6.9%. This compares to a total return from thesterling adjusted MSCI All Country Asia ex Japan Index of -1.1%. The Companywas the best performing member of its peer group during the period underreview. Significantly, it has also been the best performer since theappointment of First State as the Company's Investment Manager in July 2010.The Company's strong share price performance reflected a decrease in the shareprice discount to net asset value per share from 8.2% as at 31 January 2013 to3.1% as at 31 July 2013.Further information on the Company's investment strategy can be found in ourInvestment Manager's review beginning on page 4.Share Capital and Discount PolicyThe Company's strong share price performance relative to net asset value hascontinued since the half year end and as at 27 September 2013 it was trading ata (2.3% discount). The Board continues to monitor this closely.At the last Annual General Meeting, the Company renewed the authorities toissue and to purchase its own shares. The Board will use the authority topurchase shares to ensure that the discount between the Company's share priceand the net asset value per share is not out-of-line with the share pricediscount of similar peer group investment companies. During the past six monthsand to the date of this report there have been no repurchases of shares.Similarly, it will make shares available to the market if a sustained premiumto net asset value were to develop.Revenue Account and DividendAs mentioned in the Annual Report, the net revenue generated during the year to31 January 2013 fell when compared to the previous year due to a reduction inthe overall yield from portfolio investments. However, the Board has continuedits drive to control costs, and this has, in part, helped to achieve anunchanged level of net income for the period of £2.1m. The Board remindsshareholders that it remains the Company's policy to pursue capital growth forshareholders with income being a secondary consideration.The BoardI am delighted to welcome James Williams onto the Board with effect from 1October 2013. James brings with him a wealth of experience having held a numberof senior roles at Baring Asset Management, including Chief Investment Officerand Head of International Business (Asia, Europe, Middle East and U.S.). He iscurrently a non-executive Director of Investors Capital Trust PLC and JPMorganAmerican Investment Trust PLC and was formerly a non-executive Director ofClose Brothers Group PLC and Royal London Growth & Income Trust PLC.A resolution proposing his election to the Board will be considered byshareholders at the Annual General Meeting of the Company to be held on 24 June2014.RegulatoryThe Board has noted that the Alternative Investment Fund Managers Directive(the `Directive') was written into UK legislation with effect from 22 July2013. There is a one-year transition period within which the Company mustcomply with the provisions of the Directive, which includes the appointment ofan Alternative Investment Fund Manager (`AIFM'). The Board, together with itsadvisers, is currently reviewing the options open to the Company and willensure that all documentation and processes to enable the Company to complywith the Directive are in place within the transition period.OutlookThe deterioration in the short-term outlook for a number of countries in Asiaremains a concern and comes within the context of excessive monetary growth inthe USA and Europe being wound down. Your Board continues to believe that yourinvestment manager's efforts to identify well managed companies which embrace asustainable approach to business will provide superior returns over the longerterm.David NicholChairman27 September 2013Investment Manager's Review"The choice is this: impose capital controls or let the Fed run your economy."Robin Harding, FT, Wed 28 August, 2013.Most Asian countries chose the latter and are now feeling the consequences.Much of the rise in Asian asset prices over the past few years has beenattributable to the fall-out from the extreme monetary policies being pursuedin the U.S. and Europe. As abundant liquidity from the West found its way intomost, if not all, Asian asset classes, from property to Government debt toequity prices, many asset prices have re-rated beyond levels warranted byimprovements in the underlying fundamentals of these assets. In recent monthsthis process has started to reverse as markets finally realised that themonetary printing presses will not be left on indefinitely. As a result, the"hot" money has started to exit most Asian asset classes.Despite the immediate fall in the share prices of many of the Company'sholdings, the reduced presence of "hot" money in Asian financial markets isgood news for the Company's long-term investors. Most obviously, share pricesof some of our favourite companies have finally started to return to moreacceptable levels, allowing us to slowly increase the Company's stakes in someof Asia's best companies that were hitherto out-of-reach on valuation grounds.As importantly, the removal of temporary liquidity in the region has shone abright light on the structural weaknesses still inherent in some Asiancountries, most notably India and Indonesia, which both suffer frominfrastructure bottlenecks, weak governance and glaring fiscal and currentaccount deficits. In both countries, a rapidly depreciating currency has turnedwhat was a long-festering "mini-crisis" into a full-blown economic crisis thathas finally got the attention of policymakers and Government officials as asense of panic and urgency has taken hold. It is too early to tell whether theIndian and Indonesian Governments will be able to overcome short-term politicalpressures and deliver meaningful long-term structural reforms but the fasterthe currencies continue to depreciate, the greater the chances of success.Most, if not all, Asian countries will be affected should the reversal of these"hot" flows of capital away from the region continue. The degree to which theyare affected will depend in large part on the relative health of theirunderlying economies. For example, in contrast to India and Indonesia, thePhilippines remains in particularly good shape, thanks to a large, steadystream of remittances of foreign earnings from its large overseas workforce andan economy just at the beginning of a cyclical upturn. Elsewhere, we, like manyothers, remain concerned that the investment-intensive, state-orchestratedChinese economic model may be storing up serious structural problems within itshuge banking system. Should Chinese savers start to lose confidence, it is notclear whether China's traditional capital controls would be able to hold backthe subsequent exodus of domestic capital.PerformanceGiven our long-term focus, it is difficult for us to comment on short-termperformance trends, other than to note performance contribution at anindividual stock level. Four of the worst contributors in the portfolio overthe period are Indian companies. In part this reflects the dramatic shift inmarket sentiment towards India and the subsequent currency weakness. In thecase of EID Parry (India) and Tube Investments of India, both part of thehighly regarded Murugappa Group from Chennai, it also reflects the fact thatboth companies are experiencing a period of cyclical weakness in demand fortheir products. In the case of the latter, the slowdown in the Indian economyhas affected short-term demand for their bicycles. Their manufacturingfacilities have also been affected by an unusually high level of power cuts inTamil Nadu, a sobering reminder of the challenges still facing Indianmanufacturing companies today. Despite these short-term challenges, ourlong-term investment conviction remains intact.In terms of the best performing holdings, it is a very stock specific story.Improving corporate governance (Tech Mahindra) (India), the on-going drive toswitch from heavy diesel oil and coal to cleaner, greener gas in China (TowngasChina), strong leisure demand for bicycles (Giant Manufacturing) (Taiwan),solar panels (Delta Electronics (Thailand)) and healthy soya-based milk drinks(Vitasoy International Holdings) (Hong Kong) were at the top of the list. Giventhe random walk taken by markets over anything other than the long-run, it isentirely possible that these companies may appear at the bottom of the listnext time! However, we remain convinced that these sustainability tailwindswill help provide good quality companies with the opportunity to significantlygrow their earnings, and share prices, over the long-run.Portfolio PositioningDuring the period, we held one-on-one meetings with the senior management ofover five hundred Asian companies, each of which are potential candidates forinvestment. However, our long-term investment horizon and conviction in theCompany's current investments meant that the portfolio itself remainssubstantially unchanged over the six months under review. A new position wasinitiated in Weifu High-Technology Group, the leading manufacturer of fuelinjectionInvestment Manager's ReviewContinuedsystems for the automotive sector in China. The Company is well placed tocontribute to, and benefit from, a shift towards tighter vehicle emissionsstandards in China. The company has also benefitted from a long-termpartnership with the highly regarded Bosch Group, dating back over twentyyears.Weifu High-Technology Group aside, we continue to struggle to generate many newinvestment ideas in China. There are three main reasons for this. Firstly,corporate governance and management quality remain a challenge. Second, evenwhere we are comfortable with management, we often struggle to get comfortablewith long-term political alignment. So few Chinese companies are in charge oftheir own destiny. For example, we are looking closely at a well-managed portoperator in mainland China. While we are comfortable with the quality of theunderlying business, we have no idea what returns the Chinese Government willallow the company to achieve over the next five to ten years. The thirdchallenge in China is valuation, with many of our favourite companies stilltrading on extremely extended valuations. As a result, we primarily invest inChina indirectly, through companies such as Chroma ATE and Delta Electronics(both Taiwan) and Vitasoy International Group (Hong Kong).Elsewhere, extremely stretched valuations led us to reduce investment in someof the largest positions, including Taiwan Semiconductor Manufacturing(Taiwan), Manila Water (Philippines), Towngas China (China) and Kasikornbank(Thailand). The proceeds were reinvested primarily to increase the holdings intwo Indian exporters, Tech Mahindra and Dr. Reddy's Laboratories. Tech Mahindrais the final reincarnation of Satyam Computer Services, the Indian softwareservices company that was bankrupted under its previous owner. The company isnow under new management and new stewardship in the shape of the Mahindra andMahindra Group, in which we have much conviction. Dr. Reddy's is one of India'sleading providers of affordable medicines, and has been successful in buildinga strong export business. Overseas earnings now account for over three quartersof earnings.In terms of complete disposals, we said goodbye to Wipro (India), anotherIndian software services company which has struggled to make the generationalchange in management required following the standing down from day-to-dayduties of its visionary founder. We also completely disposed of the holding inAyala Land (Philippines) on valuation grounds, although the Company remains anindirect investor via its shares in parent company, Ayala Corporation.Engagement and VotingDuring the period we undertook our annual review of engagement issues for theportfolio's major holdings. We firmly believe the mantra "there is no suchthing as a perfect company" so look to identify the one or two things we wouldhave investee companies change if we could. We then decide the approach we willtake to engagement (e.g. writing a letter or through regular dialogue) and tryto set a timeframe for the engagement (perhaps the most challenging part).Examples of some of the issues we engaged on during the period include:- Inappropriate, chauvinistic advertising with a consumer company- Palm oil sourcing and plastic bottled water with another consumer company- Improved focus on responsible banking and environmental risks in lending witha bank- Customer service levels relative to peers with a telecoms companyIn each case, we engaged for investment reasons. The more these companies areable to address such issues, the more attractive the potential risk-adjustedreturns become. We were also active on the proxy voting front. Examples ofwhere we voted against shareholder resolutions on behalf of the Companyincluded voting against general approval to transact any and all other businessbrought before the annual meeting of shareholders (most of our Philippine andTaiwanese holdings!) and voting against poorly designed remuneration schemes.For example, we voted against schemes which had insufficiently long vestingperiods and an overgenerous discount for share issues to management leading topoor alignment with minority shareholders such as the Company.OutlookIn short, we remain concerned that the worst is not yet behind us. The globaleconomy remains artificially supported. Such support cannot last indefinitely,and as and when it is pulled way, the implications for Asia may be profound. Asa result, we will be delighted if we are able to preserve, in real terms, thecapital of the Company at current levels in the short-term. As always, webelieve the greatest challenge when investing in Asia is not to generatereturns when times are good, but to try and hold on to as much of these returnsas possible when times are not so good. Fortunately, we don't pride ourselveson the strength of our economic or market predictions. Instead, our job issimply to get on with striving to identify good quality companies which arewell positioned to contribute to, and benefit from, Asia's shift towards a moregenuinely sustainable development path. We believe this approach will stand theCompany in good stead in its search to achieve attractive risk-adjusted returnsin Asia over the long-term.David GaitSenior Investment ManagerFirst State Investment Management (UK) Limited27 September 2013Portfolioas at 31 July 2013% of totalMarket assets lessvaluation current Country ofInvestment Sector* £'000 liabilities incorporationTowngas China Utilities 10,396 5.3 Cayman IslandsAmorePacific Consumer Staples 9,276 4.7 South KoreaTech Mahindra Information 9,164 4.7 India TechnologyDBS Group Financials 8,890 4.5 SingaporeMarico Consumer Staples 8,709 4.4 IndiaTaiwan Semiconductor Information 7,505 3.8 TaiwanManufacturing Company TechnologyManila Water Utilities 6,850 3.5 PhilippinesKasikornbank Financials 儲存6,800 3.5 ThailandPublic Bank Financials 6,248 3.2 MalaysiaSamsung Fire & Marine Financials 6,054 3.1 South KoreaInsuranceTen largest investments 79,892 40.7Delta Electronics Information 5,745 2.9 Thailand(Thailand) TechnologyAxiata Telecom Services 5,620 2.8 MalaysiaDabur India Consumer Staples 5,590 2.8 IndiaDGB Financial Financials 5,281 2.7 South KoreaGlobe Telecom Telecom Services 5,157 2.6 PhilippinesSingapore Telecom Services 4,857 2.5 SingaporeTelecommunicationsChroma ATE Information 4,513 2.3 Taiwan TechnologyE.Sun Financial Holdings Financials 4,350 2.2 TaiwanDr. Reddy's Laboratories Health Care 4,266 2.2 IndiaUni- President Enterprise Consumer Staples 4,161 2.1 TaiwanTwenty largest investments 129,432 65.8Idea Cellular Telecom Services 3,640 1.9 IndiaSembCorp Industries Industrials 3,481 1.8 SingaporeSingapore Post Industrials 3,127 1.6 SingaporeHongkong & China Gas Utilities 3,116 1.6 Hong KongDelta Electronics (Taiwan) Information 2,938 1.5 Taiwan TechnologyInfosys Information 2,870 1.5 India TechnologyBank of the Philippine Financials 2,786 1.4 PhilippinesIslandsSheng Siong Consumer Staples 2,609 1.3 SingaporeMTR Industrials 2,401 1.2 Hong KongSabana Shari' ah Compliant Financials 2,285 1.1 SingaporeREITThirty largest investments 158,685 80.7Mindray Medical Health Care 2,205 1.1 Cayman IslandsChina Mengniu Dairy Consumer Staples 2,083 1.0 Cayman IslandsGiant Manufacturing Consumer 1,878 1.0 Taiwan DiscretionaryLinde India Industrials 1,858 1.0 IndiaVitasoy International Consumer Staples 1,842 0.9 Hong KongHoldingsUni- President China Consumer Staples 1,496 0.8 Cayman IslandsTube Invetments of India Industrials 1,402 0.7 IndiaStandard Foods Consumer Staples 1,055 0.6 TaiwanAyala Corporation Financials 1,012 0.6 PhilippinesENN Energy Utilities 1,000 0.5 Cayman IslandsForty largest investments 174,516 88.9*MSCI sectorclassificationsPortfolioas at 31 July 2013Continued% of totalMarket assets lessvaluation current Country ofInvestment Sector* £'000 liabilities incorporationNational Trust Bank Financials 974 0.5 Sri LankaKotak Mahindra Bank Financials 949 0.5 IndiaXL Axiata Telecom Services 817 0.4 IndonesiaBharti Airtel Telecom Services 809 0.4 IndiaSimplo Technology Information 803 0.4 Taiwan TechnologyCholamandalam Financials 683 0.3 IndiaInvestment & FinanceMahindra Lifespace Industrials 669 0.3 IndiaDevelopersMarico Bangladesh Consumer Staples 644 0.3 BangladeshSwire Properties Financials 530 0.3 Hong KongEID Parry (India) Materials 505 0.3 IndiaFifty largest 181,899 92.6investmentsHemas Holdings Industrials 497 0.2 Sri LankaGodrej Consumer Consumer Staples 471 0.2 IndiaProductsWeifu High-Technology Information 179 0.1 ChinaGroup TechnologyTotal portfolio 183,046 93.1Net current assets 13,485 6.9Total assets less 196,531 100.0current liabilities*MSCI sectorclassificationsIncome Statementfor the six months ended 31 July 2013(Unaudited) (Unaudited) (Audited)Six months ended Six months ended Year ended31 July 2013 31 July 2012 31 January 2013Revenue Capital Total Revenue Capital Total Revenue Capital Total£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000Gains oninvestments heldatfair value through - 11,820 11,820 - 13,489 13,489 - 35,724 35,724profit or lossExchangedifferences oncurrencybalances - 61 61 - (8) (8) - (97) (97)Income (note 2) 2,829 - 2,829 2,703 - 2,703 4,168 - 4,168Investmentmanagement,management andperformancefees (note 3) (232) (2,021) (2,253) (187) (1,121) (1,308) (395) (1,811) (2,206)Other expenses (259) (2) (261) (246) (3) (249) (538) (19) (557)Return on ordinary 2,338 9,858 12,196 2,270 12,357 14,627 3,235 33,797 37,032activities beforetaxationTaxation on (229) - (229) (155) - (155) (262) - (262)ordinaryactivitiesReturn 2,109 9,858 11,967 2,115 12,357 14,472 2,973 33,797 36,770attributable toequityshareholdersReturn perordinaryshare (p) (note 4) 1.8 8.4 10.2 1.8 10.6 12.4 2.6 28.9 31.5The Total column of this statement represents the Company's Income Statement.The Revenue and Capital columns are supplementary to this and are both preparedunder guidance published by the Association of Investment Companies (AIC).All revenue and capital items in the Income Statement derive from continuingoperations.The Company had no recognised gains or losses other than those declared in theIncome Statement.Reconciliation of Movements in Shareholders' Fundsfor the six months ended 31 July 2013(Unaudited) (Unaudited) (Audited)Six months Six months Year endedended ended 31 January31 July 31 July 2013 2013 2012£'000 £'000 £'000Opening shareholders' funds 187,602 153,870 153,870Return for the period 11,967 14,472 36,770Dividends paid (3,038) (3,038) (3,038)Closing shareholders' funds 196,531 165,304 187,602Balance Sheetas at 31 July 2013(Unaudited) (Unaudited) (Audited)As at As at As at31 July 31 July 31 January2013 2012 2013£'000 £'000 £'000Fixed assetsInvestments held at fair value through 183,046 157,763 173,990profit or lossCurrent assetsDebtors 485 894 518Cash at bank 14,878 7,658 15,12415,363 8,552 15,642Creditors (amounts falling due within one (1,878) (1,011) (2,030)year)Net current assets 13,485 7,541 13,612Net assets 196,531 165,304 187,602Capital and reservesShare capital 14,606 14,606 14,606Share premium account 4 4 4Capital redemption reserve 1,648 1,648 1,648Special reserve 14,572 14,572 14,572Capital reserve 160,346 129,048 150,488Revenue reserve 5,355 5,426 6,284Equity shareholders' funds 196,531 165,304 187,602Net asset value per ordinary share (p) (note 168.2 141.5 160.65)Cash Flow Statementfor the six months ended 31 July 2013(Unaudited) (Unaudited) (Audited)Six months Six months Yearended ended ended31 July 31 July 31 January2013 2012 2013£'000 £'000 £'000Net cash inflow from operating activities 566 1,290 1,904Servicing of finance - - -Financial investmentPurchases of investments (21,251) (25,791) (40,030)Sales of investments 23,416 28,097 49,277Net cash inflow from financial investment 2,165 2,306 9,247Equity dividends paid (3,038) (3,038) (3,038)(Decrease)/increase in cash (307) 558 8,113Reconciliation of net cash flow to movementin net funds(Decrease)/increase in cash resulting from (307) 558 8,113cash flowsExchange differences on currency balances 61 (8) (97)Movement in net funds (246) 550 8,016Net funds at beginning of period 15,124 7,108 7,108Net funds at period end 14,878 7,658 15,124Reconciliation of net return before financecosts andtaxation to net cash flow from operatingactivitiesNet return before finance costs and taxation 12,196 14,627 37,032Gains on investments (11,820) (13,489) (35,724)Exchange differences on currency balances (61) 8 97Irrecoverable withholding tax on investment (213) (174) (294)incomeChanges in working capital and othernon-cash items 464 318 793Net cash inflow from operating activities 566 1,290 1,904Notes to the Accounts1. Basis of preparationThe condensed financial statements have been prepared under the historical costconvention, except for the measurement of investments which are valued at fairvalue, and in accordance with applicable accounting standards, the Statement ofRecommended Practice `Financial Statements of Investment Trust Companies andVenture Capital Trusts' dated January 2009 and the UK Accounting StandardsBoard's Statement `Half Yearly Financial Reports'.The same accounting policies that were used for the year ended 31 January 2013have been applied in these financial statements.2. Income(Unaudited) (Unaudited) (Audited)Six months Six months Yearended ended ended31 July 31 July 31 January2013 2012 2013£'000 £'000 £'000Investment income 2,829 2,703 4,168Total income 2,829 2,703 4,1683. Investment Management fee, Management and Performance fees(Unaudited) (Unaudited) (Audited)Six months ended Six months ended Year ended31 July 2013 31 July 2012 31 January 2013Revenue Capital Total Revenue Capital Total Revenue Capital Total£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000Investment 185 556 741 151 452 603 318 952 1,270management fee -First StateManagement fee - 47 140 187 36 109 145 77 232 309FrostrowPerformance fee - 1,325 1,325 - 560 560 - 627 627accrual*232 2,021 2,253 187 1,121 1,308 395 1,811 2,206*Details of the performance fee basis can be found in the Report of theDirectors on page 14 of the Annual Report for the year ended 31 January 2013.4. Return per ordinary shareThe total return per ordinary share price is based on the total returnattributable to Shareholders of £11,967,000 (six months ended 31 July 2012: £14,472,000; year ended 31 January 2013: return £36,770,000) and on 116,848,386shares (six months ended 31 July 2012: 116,848,386; year ended 31 January 2013:116,848,386), being the weighted average number of shares in issue.The revenue return per ordinary share price is calculated by dividing the netrevenue return attributable to Shareholders of £2,109,000 (six months ended 31July 2012: £2,115,000; year ended 31 January 2013: £2,973,000) by the weightedaverage number of shares in issue as above.The capital return per ordinary share price is calculated by dividing the netcapital return attributable to Shareholders of £9,858,000 (six months ended 31July 2012: £12,357,000; year ended 31 January 2013: return £33,797,000) by theweighted average number of shares in issue as above.5. Net asset value per ordinary shareThe net asset value per ordinary share is based on the net assets attributableto Shareholders of £196,531,000 (31 July 2012: £165,304,000; 31 January 2013: £187,602,000) and on 116,848,386 shares in issue (31 July 2012: 116,848,386; 31January 2013: 116,848,386).Notes to the AccountsContinued6. 2013 accountsThese are not statutory accounts in terms of Section 434 of the Companies Act2006 and are unaudited. Statutory accounts for the year to 31 January 2013,which received an unqualified audit report, have been lodged with the Registrarof Companies. No statutory accounts in respect of any period after 31 January2013 have been reported on by the Company's auditors or delivered to theRegistrar of Companies.Interim Management ReportPrincipal Risks and UncertaintiesThe Company's assets consist of listed securities and its main risks aretherefore market related. The Company is also exposed to currency risk inrespect of the markets in which it invests. Other risks faced by the Companyinclude external, investment and strategic, regulatory, operational, andfinancial risks. These risks, and the way in which they are managed, aredescribed in more detail under the heading Principal Risks and Risk Managementwithin the Business Review in the Company's Annual Report for the year ended 31January 2013. The Company's principal risks and uncertainties have not changedmaterially since the date of that report and are not expected to changematerially for the remaining six months of the Company's financial year.Related Party TransactionsDuring the first six months of the current financial year no materialtransactions with related parties have taken place which have affected thefinancial position or the performance of the Company during the period.Going ConcernThe Directors believe, having considered the Company's investment objectives,risk management policies, capital management policies and procedures, and thenature of the portfolio and its expenditure projections, that the Company hasadequate resources, an appropriate financial structure and suitable managementarrangements in place to continue in operational existence for the foreseeablefuture. For these reasons, they consider there is reasonable evidence tocontinue to adopt the going concern basis in preparing the accounts.Directors' ResponsibilitiesThe Board of Directors confirms that, to the best of its knowledge:i. the condensed set of financial statements contained within the Half Year Report has been prepared in accordance with applicable accounting standards; andii. the interim management report includes a fair review of the information required by 4.2.7R and 4.2.8R of the UK Listing Authority and Transparency Rules.The Half Year Report has not been reviewed or audited by the Company'sauditors.The Half Year Report was approved by the Board on 27 September 2013 and theabove responsibility statement was signed on its behalf by:David NicholChairmanFrostrow Capital LLPCompany Secretary27 September 20130203 008 4913.frostrow.comA copy of the Half Year Report has been submitted to the National StorageMechanism and will shortly be available for inspection at .hemscott.com/nsm.doThe Half Year Report will also shortly be available on the Company's website at.pacific-assets.co.uk where up to date information on the Company, includingdaily NAV, share prices and fact sheets, can also be found.ENDXLON迷你倉