HERMES PACIFIC INVESTMENTS PLC
Unaudited interim results for the six months ended 30 September 2016
I am pleased to bring investors up to date with the results and developments at Hermes Pacific Investments plc (“HPAC” or the “Company”) in this Chairman’s statement. The results of HPAC for the six-month period ended 30 September 2016 show a loss for the period of £31,000, which is marginally less than a loss of £44,000 for the corresponding period in the previous year. During the period the Company had no revenues as it does not have any operating business. The Company continues to carefully control its costs. At the period end the Company had net assets of £3,963,000 of which cash was £3,873,000.
Review of the Company’s activities
The Company has made some investments in line with its investing policy in companies involved in trade finance for emerging countries and other financial activities operating from the Far East region. These investments have performed as expected. No further investments were made in the period.
The financial markets began the third quarter in the shadow of Brexit, when UK voters shocked investors by deciding to leave the European Union (EU). Within a short period of time, however, markets had largely recovered and volatility had fallen to levels seen last year. The shift in mood was largely driven by evidence that the initial impact of Brexit was shallower than many feared. Economic growth indicators were slightly better than expected, and investors were heartened by the belief that central banks would be forced by Brexit to keep monetary policies loose.
Because of their higher economic growth and potentially higher returns, emerging markets have received increasing attention from investors in the developed world. Despite the attractiveness of emerging markets, investing in them has many issues and associated risks that are not present in the developed world. In the past several years, a great deal of research has been conducted on emerging market issues. The prominent areas are those concerning returns, corporate governance, and currency issues.
In the light of the above factors the Company may now look at investment opportunities in developed countries such as those in mainland Europe as well as in emerging countries in the Far East although no such investments will be made unless shareholders’ approval to a change of investing policy is obtained.
I would like to thank shareholders for their continued support.
19 December 2016
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For further information please contact:
Hermes Pacific Investments Plc www.hermespacificinvestments.com
Haresh Kanabar, Chairman Tel: +44 (0) 207 290 3340
WH Ireland Limited (Nominated Adviser & Broker) www.wh-ireland.co.uk
Mike Coe/Ed Allsopp Tel: +44 (0) 117 945 3470