Baring Asset Management (Asia) Limited 19th Floor, Edinburgh Tower 15 Queen’s Road Central, Hong Kong Tel: (852) 2841 1411 Fax: (852) 2868 4110 www.barings.com The Asia Pacific Fund, Inc. Market Outlook and Investment Strategy Franki Chung and Henry Chan December 2007
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APB - Market Outlook Investment Strategy Presentation Dec 2007
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The Asia Pacific Fund, Inc. Long-Term Performance (Cumulative NAV Returns over 1, 3, 5 and 10 year periods to November 30, 2007)
Strong long-term track record maintained
Micropal Ranking + 30/212 23/177 26/153 5/89
57.3
159.0
291.7
373.5
45.0
129.8
255.1
215.7
0
50
100
150
200
250
300
350
400
1 Yr to 11/30/2007 3 Yrs to11/30/2007
5 Yrs to11/30/2007
10 Yrs to11/30/2007
(% )
Portfolio *
MSCI AC F/E (Free) x J ap Gross
Fund performance are bid to bid, net of fees, gross income, US$. For risks associated with investment securities in emerging and less developed markets, please refer to the Offering Document for details. Transactions in derivatives, warrants and forward contracts and other fund derivatives
instruments may be used for the purpose of meeting the investment objective of the Fund. The Net Asset Value of the Fund may have a high volatility due to these instruments and techniques being included in its scheme property and may involve a greater degree of risk. Past performance is not an
Fund performance are bid to bid, net of fees, gross income, US$. For risks associated with investment securities in emerging and less developed markets, please refer to the Offering Document for details. Transactions in derivatives, warrants and forward contracts and other fund derivatives
instruments may be used for the purpose of meeting the investment objective of the Fund. The Net Asset Value of the Fund may have a high volatility due to these instruments and techniques being included in its scheme property and may involve a greater degree of risk. Past performance is not an
Performance AnalysisStock Selection – Highlights of largest positive contributors (3 month period to November 30, 2007)
Stock Event
Zijin Mining Group(listed in HK)(2.1% of NAV)
China’s leading gold producer, with some copper interests (stock price rose by 64.5%)
Hengan Intl(listed in HK) (1.9% of NAV)
China’s leading provider of personal hygiene tissue-based products (inc. sanitary napkins and baby diapers) (stock price rose by 42.4%)
Inco Intl Nickel Indo (listed in Indonesia) (0.8% of NAV)
Indonesia’s largest listed nickel producer (61% owned by CVRD Inco) (stock price rose by 91.8%)
HDFC(listed in India)(1.3% of NAV)
India’s leading provider of housing finance; company is extremely well-managed, with sustainable growth in sales and profits (stock price rose by 45.4%)
Asian Stock Markets: Country Performance(3 month period to November 30, 2007)
Gross return in USDCountry - Index (%)
North AsiaMSCI Hong Kong Free +23.3MSCI China Free +20.9MSCI Korea Free +4.1MSCI Taiwan Free -0.8ASEANMSCI Indonesia Free +31.0MSCI Malaysia Free +14.4MSCI Philippines Free +12.1MSCI Thailand Free +9.1MSCI Singapore Free +7.9
MSCI India Free +33.9
MSCI AC Far East Free Ex Japan Gross +11.4Source: Factset
‘Growth’ markets of India, Indonesia and HK-China led, while ‘Technology-dominated’ markets of Korea/Taiwan lagged
Global and regional inflation rates to continue to rise, forcing central banks to tighten more aggressively (or to cut rates by less) than currently expected
Fear of a US and global recession developing, causing risk aversion to reign in the short-term
Current high earnings expectations to cause disappointment
This document is provided as a service to professional investors/advisers. It is issued in the United Kingdom by Baring Asset Management Limited and/or by its investment adviser affiliates in other jurisdictions. The affiliate serving as the Asia Pacific Fund’s investment adviser is Baring Asset Management (Asia) Limited. In the United Kingdom this document is issued only to persons falling within a permitted category under (i) the FSA’s rules made under section 238(5) of the Financial Services and Markets Act 2000 and (ii) the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001.
This is not an offer nor a solicitation to buy or sell any investment referred to in this document. Baring Asset Management group companies, their affiliates and/or their directors, officers and employees may own or have positions in any investment mentioned herein or any investment related thereto and from time to time add to or dispose of any such investment. This document may include forward-looking statements, which are based upon our current opinions, expectations and projections as of the date on the cover hereof. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements. The value of any investments and any income generated may go down as well as up and is not guaranteed. Past performance will not necessarily be repeated. Changes in rates of exchange may have an adverse effect on the value, price or income of an investment. There are additional risks associated with investments (made directly or through investment vehicles which invest) in emerging or developing markets. Compensation arrangements under the Financial Services and Markets Act 2000 of the United Kingdom will not be available.
Private investors in the Company referred to herein should obtain their own independent financial advise before making investments. This document must not be relied on for purposes of any investment decisions. Before investing in the Company, we recommend that all relevant documents, such as reports and accounts and prospectus should be read, which specify the particular risks associated with investment in the Company, together with any specific restrictions applying and the basis of dealing. The Company may not be available for investment in all jurisdictions. There may also be prohibitions or restrictions on distribution of this document and other material relating to the Company and accordingly recipients of any such documents are advised to inform themselves about and to observe any such restrictions.
Research Material
Baring Asset Management only produces research for its own internal use. Where details of research are provided in this document it is provided as an example of research undertaken by Baring Asset Management and must not be used, or relied upon, for the purposes of any investment decisions. The information and opinions expressed herein may change at anytime.