APB Roadshow Presentation

Baring Asset Management (Asia) Limited19th Floor, Edinburgh Tower

15 Queen’s Road Central, Hong KongTel: (852) 2841 1411Fax: (852) 2868 4110

www.barings.com

September 2007

THE ASIA PACIFIC FUND, INC.

www.asiapacificfund.com

2

(S:\Investment Management\Accounts\Tango\Presentations\0709-Roadshow.ppt)

Baring Asset Management

Principal business lines:

Institutions, Mutual Funds, Private Clients & Alternative Investments

Current assets under management US$46.3 bn (Global), US$9.3 bn (Asia)

4 main investment offices covering each major financial time-zone.

Long history of investing from a local presence:

London 1955

Hong Kong 1976

Boston 1978

Tokyo 1982

109 investment professionals:proven, experienced team

Owned by Massachusetts Mutual Life Insurance Company (MassMutual)

Assets as at 30th June 2007Investment Professionals as at 1st June 2007

TorontoLondon

Guernsey

Paris

San Francisco

Boston

Tokyo

Taipei

Hong Kong

Frankfurt

3


The Asia Pacific Fund, Inc. Long-Term Performance (Cumulative NAV Returns over 1, 3, 5 and 10 year periods to July 31, 2007)

Morningstar Ranking 18/202 28/175 33/149 8/85

71.6

167.0

231.6

161.1

54.6

147.7

209.0

64.2

0

20

40

60

80

100

120

140

160

180

200

220

240

1 Yr to 7/31/2007

3 Yrs to 7/31/2007

5 Yrs to 7/31/2007

10 Yrs to7/31/2007

(% )

Fund

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 indication of future performance.

Data source - © 2007 Morningstar, Inc. All Rights Reserved; data as at 31/07/2007. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for

any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Our Team and Process

5


Executive Summary

Our competitive advantage is our people

Performance driven team - clear accountability and quick decision making

Experienced investment professionals - deep market and stock knowledge

High conviction portfolios – no unintended positions

Research focuses on what matters

Tight risk management – including proprietary risk measures

GARP style accommodates market leadership changes

6


The Asian Team

Henry Chan

EuniceHong

Korea

Hyung JinLee

Australia /New Zealand

ASEAN(incl. Singapore)

Kai Yang Lee

FrankiChung

FrankiChung

Soo-Hai Lim

Greater China

Global SectorTeam

Global Emerging Market Team

Strategic PolicyGroup

Khiem Do

India

Manoj Shroff

William Fong

HenryChan

AdrianAu

AgnesDeng

AgnesDeng

Edward Wang

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GARP – Growth at a Reasonable Price

Combined discipline of growth and valuation

ValuationCHEAP

HIGH

LOW

EXPENSIVE

Gro

wth

TorpedoesValue Traps

Growth at a Reasonable Price

8


How we structure our researchCommon language structures our judgemental decisions

Research

Applied to both countries and companies

Is the outlook reflected in the price? Valuation

Potential for growth surprise Growth

Ability to finance growth Liquidity

Sensitivity to currency, currency outlook Currency

Strategy and execution Management

Research key to good idea generation

9


Setting Research Priorities Reducing a large universe to focused Buy/Sell candidates

Stock Universe

Positive & Negative BAM Top Down Local ContactsQuantitative Screens and Sector Views & Newsflow

Company Overseas AnalystMeetings Trips Discussions

Stock ideas

Client PortfolioSource: Baring Asset Management

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Buy Disciplines

Under-appreciated earnings growth prospects

Undervaluation, based on comprehensive understanding of corporate strategy, fundamentals and peer comparables

Catalysts that will lead to the stock being re-rated within a defined time frame

We buy when we identify

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Stock reaches our target price

We detect deterioration in fundamental outlook

Triggers for Stock Review

Sell Disciplines

12


Baring Asia High Alpha Investment Approach

Best bottom-up opportunities as the key building block – benchmark helps risk management and sizing of positions

Positive bets against the comparative index – either overweight or no exposure, eliminate underweight & neutral bets

Mixed market cap – do not focus on large cap only

Higher stock concentration for large cap stocks – no need to own two stocks for same trade.

More diversified on small to mid-cap stocks to avoid “accidents” as a result of under-coverage by analysts, lower management quality, illiquidity, etc.

More flexible use of cash expected

More flexible use of non-index bets

Themes and Outlook

14


Asia Pacific – Major Investment Themes

China consumption and the rise of the middle class

Regional asset reflation – Singapore, Indonesia, Taiwan, Malaysia and the Philippines

M&A theme driven by overseas expansion of PRC companies

Petro-dollar recycling “Middle East construction boom” – shipbuilding, oil services and engineering

Reconstruction of Asia – engineering, construction, building materials, capital goods

Improved supply side discipline of “cyclical” sectors – energy, materials, technology

Consumption, Asset Reflation and Re-construction

15


China: Rising Income

GDP per capita surpassed the magical US$1,000 threshold since 2003

Emerging middle income class!!

Source: UBS (06/2007)

GDP/Capita

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

Per Capita GDP

USD

16


Chinese equities’ rally: Heading towards a ‘bubble’ ?

As with Japan, Korea and Taiwan in the 80s …. will a Chinese market ‘bubble’ materialise?

Source: Macquarie Bank (6/2007)

% change since Jan 02 for China; Jan 82 for elsewhere

-500

0

500

1,000

1,500

2,000

2,500

Month 1 M13 M25 M37 M49 M61 M73 M85 M97 M109 M121

China Korea

Taiwan Japan

17


Overseas Expansion of PRC Companies Drives M&A Theme

China’s Net FDI overseas

Source: CSFB (7/2007)

18


Singapore: Office rental to rise

Positive for office landlords

Source: Deutsche Bank (6/2007)

Rental costs as percentage of GDP Demand to outstrip supply

-

1

2

3

4

5

6

7

8

1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007

0%

2%

4%

6%

8%

10%

12%

14%

Rental Rates Rental costs/GDP

Rental costs/GDPRental

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

1995 1997 1999 2001 2003 2005 2007F 2009F

74

76

78

80

82

84

86

88

90

92

94

96

Net supply (LHS) Take-up (LHS) Occupancy (RHS)

(m sf) (%)

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Taiwan Domestic The Most Undiscounted Reflation Story

Property price recovery an early indicator of asset reflation

Rise in residential constructionlicence issuance

Domestic sector re-rating to continue

Source: JP Morgan (6/2007)

50

60

70

80

90

100

110

120

130

140

3Q91 3Q93 3Q95 3Q97 3Q99 3Q01 3Q03 3Q05

IndexTaipei City Taipei County

Taichung Kaoshiung

Taiwan

0

5000

10000

15000

20000

25000

30000

35000

40000

Oct-90 Oct-92 Oct-94 Oct-96 Oct-98 Oct-00 Oct-02 Oct-04 Oct-06

000 Units

20


Middle East Construction Boom Benefits Korea Engineering Companies

Regional construction boom is coming!

New overseas construction orders by region

Source: Nomura (5/2007)

2005 2006

No. of No. of y-y chg (US$m) projects Value projects Value (%)

Middle East 73 6,445 59 9,530 47.9

Asia 158 2,611 187 4,046 55.0

Africa 15 1,275 27 1,557 22.1

Other 35 528 53 1,335 152.8

Total 281 10,859 326 16,468 51.7

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Taiwan: Bad Market but Good Stocks

Source: Factset (8/2007)

50

100

150

200

250

300

350

01/06 03/06 05/06 07/06 09/06 11/06 01/07 03/07 05/07 07/07

Hon Hai Precision Foxconn Taiwan Fertiliser

MSCI AC Far East MSCI Taiwan

We invest in stocks, not markets

22


Tech Consolidation : Hon Hai/Foxconn Empire

A true growth stock!

Consecutive EPS growth for more than 10 years

Hon Hai Precision

Source: Factset (6/2007)

Phenomenal Growth of Subsidiaries

EPS Growth

2007E 2006 2005 2004

Foxconn International (2038 HK) +36% +83% +66% +100%

Foxconn Tech (2354 TT) +58% +76% +71% +14%

Innolux Display (2481 TT() +243% +523% - -

Source: Bloomberg (6/2007)

Price Return

0

10

20

30

40

50

60

70

80

90

100

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

E

EPS Growth

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

12

/94

12

/95

12

/96

12

/97

12

/98

12

/99

12

/00

12

/01

12

/02

12

/03

12

/04

12

/05

12

/06

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Source: Macquarie Research & IRESS (8/2007)

The Ebb and flow of Resource performanceAll Mining Index 1936 to Current

1

10

100

1000

10000

36 41 46 51 56 61 66 71 76 81 86 91 96 01 06

OPEC 1

OPEC 2

87

The rise of China?

Industrialisation of Japan

Index on log scale

Resources Upcycle to Continue on Chinese Demand

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Asia : Investment Strategy and Outlook

Expect another year of positive return and relative out-performance

China growth will drive reflation of the region

Earnings inflection point of export cyclicals such as technology

High alpha approach captures the best stock opportunities in the region and expresses conviction in portfolios

Bottom-up opportunities point to overweighting in China/HK, Singapore, Malaysia, Indonesia and the Philippines. Early signs of earnings inflection warrants gradual rebuilding of positions in Korea and Taiwan

Secular Growth in AsiaDrives Out-performance

Appendix

26


Fund Index *(%) (%)

China 31.5 21.5

Korea 22.5 26.8

Hong Kong 8.3 13.7

Taiwan 16.2 19.7

Singapore 13.1 8.1

Thailand 0.0 2.5

Indonesia 2.2 2.6

Malaysia 3.9 4.3

Philippines 0.7 0.9

Cash & others 0.3 0.0

India 1.2 0.0

The Asia Pacific Fund, Inc. Asset and Sector Allocations as at 31st July 2007

* MSCI AC Far East ex Japan (free)Source: Baring Asset Management

Asset Allocation Sector Allocation

Fund Index *

(%) (%)

Financials 25.9 30.5

Info. Technology 18.1 18.9

Industries 18.8 14.4

Materials 11.1 7.9

Con. Discretionary 8.6 7.0

Energy 5.5 6.6

Consumer Staples 3.7 3.4

Telecom. Services 3.8 7.5

Health Care 0.0 0.3

Cash & Others 3.2 0.0

Utilities 1.3 3.5

27


The Asia Pacific Fund, Inc.Top Ten Active Positions as at 31st July 2007

Overweight Positions Underweight Positions

Source: Baring Asset Management

Active Weight(%)

Guangzhou R&F Properties 3.5

Yangzijiang Shipbuilding Holdings 3.3

Xinhua A50 China Tracker 2.9

Zijin Mining Group 2.2

Innolux Display 1.9

Firich Enterprises 1.8

China Merchants Bank 1.8

Hengan International Group 1.8

Taiwan Fertilizer 1.7

GS Engineering & Construction Corp 1.7

Active Weight(%)

China Petroleum & Chemical -0.9

Industrial & Comm. Bank of China -1.0

United Overseas Bank -1.0

CNOOC -1.0

Singapore Telecommunications -1.0

Cheung Kong (Holdings) -1.1

Hutchison Whampoa -1.2

China Life Insurance -1.6

POSCO -1.7

Taiwan Semiconductor Manufacturing -2.2

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The Asia Pacific Fund, Inc. Portfolio Characteristics as at 31st July 2007

Portfolio Characteristics

Fund Index*

Forward P/E 23.9 19.4

Price/Book 12.2 4.1

ROE 23.3% 18.8%

Portfolio Turnover

The rolling 12 month portfolio turnover as at 31st July 2007 = 87.4%

Risk Summary

Tracking Error vs. Index 5.0%

Beta vs. Index 1.15

Portfolio Risk 19.34%

Index Risk 16.39%

* Index : MSCI AC Far East ex Japan (free)

Market Capitalization Comparison

Fund Index *(%) (%)

Over US$10bn 47.4 59.4

US$1-10bn 50.2 39.2

Below US$1bn 2.1 1.4

Weighted Avg (US$bn) 27.8 36.1

Source: Baring Asset Management

29


Important Information

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. The contents of this document are based upon sources of information believed to be reliable but no guarantee, warranty or representation, express or implied, is given as to their accuracy or completeness. 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.

Complied (Boston): 5 September 2007

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