1. THE ASIA PACIFIC FUND, INC. Investment Community Conference Call www
THE ASIA PACIFIC FUND, INC. Investment Community Conference Call
Khiem Do – Fund Manager
February 13, 2008

2. Table of Contents
Page Section 1: Asian Markets Review Section 2: Asian Investment Outlook 6 – and Strategy

3. Section 1:
Asian Markets Review

4. Local Currency exchange rate (US$/Local rate) As at January 31, 2008
3 months 1 year
Change % * Change % *
North Asia
Chinese Renminbi
Hong Kong Dollar
South Korean Won
New Taiwan Dollar
ASEAN
Thai Baht
Malaysian Ringgit
Philippines Peso
Singaporean Dollar
Indonesian Rupiah
Indian Rupee
*: + denotes an appreciation of the local currency vs the USD (and vice-versa)
Source: Datastream
Most Asian currencies continued to rise vs the USD
over the short- and long-term

5. Asian Stock Markets: Country Performance As at January 31, 2008
Gross return in USD (%)
Country - Index 3 months 1 year
North Asia MSCI China
MSCI Hong Kong
MSCI Korea
MSCI Taiwan
ASEAN MSCI Thailand
MSCI Indonesia
MSCI Singapore
MSCI Malaysia
MSCI Philippines
MSCI India Free
MSCI AC Far East Free Ex Japan Gross
Source: Datastream
While leading over the long-term, China fell sharply over the past 3 month period

6. Asian Stock Markets: Sectoral Performance As at January 31, 2008
Gross return in USD (%)
3 months 1 year
MSCI Energy
MSCI Materials
MSCI Industrials
MSCI Telecommunication Services
MSCI Real Estate
MSCI Financials
MSCI Consumer Staples
MSCI Consumer Discretionary
MSCI Utilities
MSCI Health Care
MSCI Information Technology
Source: Factset
Energy, Materials and Industrials led over the long-term, but were subject to profit-taking over the past 3 month period

7. Asian Investment Outlook and Strategy
Section 2:
Asian Investment Outlook and Strategy

8. Asia’s Long-Term Outlook: We retain our positive stance
Sustainable growth, boosted by rising domestic demand
Improving corporate returns and healthy balance sheets
Under-valued currencies, under-valued equity markets
Secular re-rating of Asian assets expected to continue

9. Barings’ Global Economic forecasts for 2008
OECD G7 economies expected to grow at a slower rate, caused by weaker US consumption and much reduced new bank lending
But prospects for US recession still unlikely (less than 40% probability)
US Federal Reserve expected to continue to ease
Asian economies will likely feel some negative impact through weaker exports
Net, net, a more challenging global
economic backdrop

10. Barings’ Asian Economic forecasts for 2008
Continuing growth in domestic demand expected to remain the key driver of growth in Asia, exports to weaken
China and India expected to continue to grow solidly
Asian currencies likely to continue to rise vs the USD
Key risks include rising inflation and tighter-than-expected monetary policy
Net, net, still a favourable economic backdrop
for equity investors in the region

11. Current Concerns in Equity Markets
Fear of a US and global recession developing, causing risk aversion to dominate
Global and regional headline inflation rates to rise, forcing central banks to tighten more aggressively (or to cut rates by less)
Potential downgrade in corporate earnings
We are monitoring the above risks closely

12. Alternative Scenarios: Which one do you believe in ?
1) Severe US recession, and People’s Bank Of China (“PBOC”) to continue to tighten through 2008:
Equity markets could fall by a further 10-20%
2) US and OECD to ‘muddle through’, and PBOC to ease off on monetary tightening from Q2 ’08:
Equity markets likely to range trade in H1 and return to moderate bull trend in H2 (+10% ?)
3) Massive easing by the Fed, and PBOC to talk up Chinese economy and give green light to ‘through train’ in Q2:
Equity markets likely to range trade in Q1 and ‘skyrocket’ from Q2 (+20-30% ?)
Consensus appears to believe in Scenario 1 or 2 (depends on which day !?)

13. Significant Outflows in Emerging Asia: Precursor to US recession ?
(US$bn)
Source: Morgan Stanley (01/2008)
Recent ‘panic selling’ most probably caused by
rising fear of a US recession, hence rising risk aversion

14. Global Risk Appetite : At Panic Levels !8
700
Euphoria 6
600 4
500 2
400
300 -2
200 -4
Panic -6
100
Jan-93
Jan-96
Jan-99
Jan-02
Jan-05
Jan-08
Global risk appetite (LHS)
Asia ex Japan (RHS)
Source: CSFB (1/2008)
‘Panic’ risk appetite levels tend to be a ‘contrarian’
buying signal for long-term investors

15. Barings’ Base Case Scenario: Cautiously optimistic
US recession: less than 40% chance (Fed to cut rates by a further bps, plus fiscal packages)
PBOC to ease off on monetary tightening from Q2 ’08: Tough now and more accomodative later
QDII / ‘through train’ : QDII to continue, and ‘through train’ …… possibly in Q2 ?
Potential upside risk from Q2 in Asia and
HK China in particular?

16. The Fed is Worried: More monetary and fiscal stimuli to come !
“In light of the recent changes in the outlook for and the risks to growth, additional policy easing may well be necessary''  
“We stand ready to take substantive additional action as needed to support growth and to provide adequate insurance against downside risks”
                                                                                     
Source: Mr. Bernanke’s speech, 10/1/2008
“Lai-See” for Asia ?

17. Contribution to Korea’s Export Growth, %
Asian Economic De-Coupling from OECD: Korean exports example
Contribution to Korea’s Export Growth, %
(%) -5 5 10 15 20 25 30 35
China
ASEAN
Middle
East
Latam
Emerging
Europe EU US
Japan
YTD 2007
Source: Morgan Stanley (12/2007)
Less to the US, more to the region and
other EM/European nations

18. Asia vs OECD World: Some signs of decoupling …..
% YoY
(6)
(4)
(2) 2 4 6 8
Jan-86
Jan-89
Jan-92
Jan-95
Jan-98
Jan-01
Jan-04
Jan-07 -2 10 12 14 16 18
% YoY
-60
-50
-40
-30
-20
-10 10 20 30
Jan- 88 90 92 94 96 98 00 02 04 06 08
-8%
-6%
-4%
-2% 0% 2% 4% 6% 8%
10%
Asia LEI (Right)
OECD G7 LEI (Left)
Analyst Revision - MSCI A/P, % (Left)
OECD LEI (Right)
Source: Morgan Stanley (12/2007)
…. at both the economic and earnings levels

19. Food: Important for Asia’s headline CPI
Food as a % of CPI 10 20 30 40 50 60
China
Hong Kong
Taiwan
Korea
Singapore
Malaysia
Thailand
Indonesia
Philippines
(% share)
Source: BNP Paribas (12/2007)
A key risk factor to watch

20. Asia & China’s Core vs Headline Inflation: Headline: worrying …… Core: tame
Asia ex-Japan
China
(%) 0% 1% 2% 3% 4% 5% 6%
Jan-01
Jan-02
Jan-03
Jan-04
Jan-05
Jan-06
Jan-07
CPI
Core CPI
(%)
-2%
-1% 0% 1% 2% 3% 4% 5% 6% 7%
Jan-01
Jan-02
Jan-03
Jan-04
Jan-05
Jan-06
Jan-07
CPI
Non-Food CPI
Source: Morgan Stanley (12/2007)
Will Asian central banks act on headline or
core inflation trends ?

21. Property Prices’ Past 10 Year Trend: US peaked, but Asia is still catching up ……
(%)
-40
-20 20 40 60 80
100
120 US
Korea
Thailand
Taiwan
Sing HK
Source: UBS (12/2007)
More upside expected in Asia

22. HK Banking system: Borrow, please !
(%)
$HK bn
Net deposit (RHS) 0%
50%
100%
150%
200%
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
-2,800
-1,400 -
1,400
2,800
Total LDR (LHS)
Source: UBS (12/2007)
Banks are seriously cashed-up !

23. Profit Outlook: US vs Asia
EPS index
(2007: starting at 100 on base date of February ‘06)
US:
down revisions
Asia Pacific Ex-Japan:
up revisions 95 98
101
104
107
110
113
116
Feb 06
Sep 06
Apr 07
Nov 07
2007
2008 95
100
105
110
115
120
125
130
Feb 06
Sep 06
Apr 07
Nov 07
2007
2008
Source : JP Morgan (12/2007)
Asia uptrend pausing, US downtrend worsening

24. Profit Outlook: Asia’s out-performers
EPS index
(2007: starting at 100 on base date February ‘06)
China
Singapore 95
105
115
125
135
145
155
Feb 06
Sep 06
Apr 07
Nov 07
2007
2008 96
104
112
120
128
136
Feb 06
Sep 06
Apr 07
Nov 07
2007
2008
Source : JP Morgan (12/2007)
A pause in the upward earnings surprise trend ?

25. Profit Outlook: Selective in ASEAN
EPS index
(2007: starting at 100 on base date February ‘06)
Indonesia
Thailand 95
105
115
125
135
Feb 06
Sep 06
Apr 07
Nov 07
2007
2008 82 86 90 94 98
102
106
110
Feb 06
Sep 06
Apr 07
Nov 07
2007
2008
Source : JP Morgan (12/2007)
Mixed trends in ASEAN

26. Profit Outlook : Asia’s recovery plays
EPS index
(2007: starting at 100 on base date February ‘06)
Taiwan
Korea 90 93 96 99
102
105
108
111
114
Feb 06
Sep 06
Apr 07
Nov 07
2007
2008 80 85 90 95
100
105
110
115
Feb 06
Sep 06
Apr 07
Nov 07
2007
2008
Source : JP Morgan (12/2007)
Selective growth opportunities in Korea and Taiwan

27. Asian Equities vs. Asian Bonds: Equities still cheaper
(%)
APXJ
-6.0
-5.0
-4.0
-3.0
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0 -
100
200
300
400
500
600
700
Apr-95
Oct-96
Apr-98
Oct-99
Apr-01
Oct-02
Apr-04
Oct-05
Apr-07
10Y Bond Yield - Fwd Earnings Yield (%) (LHS)
Avg. +1 Std dev (LHS)
Avg. -1 Std dev (LHS)
MSCI_ Price_USD AP ex JP (RHS)
Source: Morgan Stanley (12/2007)
Rising investor’s confidence needed
to close the gap

28. Historical 12 months forward P/E Band MSCI Asia Index
Source: CSFB (1/2008)
At fair value ?

29. China vs India: Which market out-performed over past 3 years ?
Source: Bloomberg (1/2008)
Equally strong

30. Key Investment Themes for Asia
Assuming no US recession and no inflation blow-out in the region, Asian markets are expected to achieve a sixth year of positive return in 2008
The more sustainable the high earnings growth trend, the more expensive the market is likely to become (i.e., India, China)
Favourable electoral outcomes in Korea, Taiwan and Thailand can turn these under-performing markets around dramatically

31. The Fund’s Key Sectoral Investment themes
Consumption, infrastructure and financials themes
Other regional asset reflation plays
Re-construction of Asia – engineering, construction, building materials, capital goods
Improved supply side discipline of “cyclical” sectors – energy, materials (and technology ?)
Consumption, Asset Reflation and Infrastructure/Construction

32. 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): February 4, 2008
Disclosure for presentations to PUBLIC
Ensure Complied Date is added at foot of Disclosure