Pacific Horizon - Pacific Horizon Investment Trust Interim Report
03/03/2023 07:00
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RNS Number : 7363R Pacific Horizon Investment Tst PLC 03 March 2023
RNS Announcement
Pacific Horizon Investment Trust PLC ('PHI')
Legal Entity Identifier: VLGEI9B8R0REWKB0LN95
Regulated Information Classification: Half Yearly Financial Report
Results for the six months to 31 January 2023
The following is the unaudited Interim Financial Report for the six months to
31 January 2023 which was approved by the Board on 2 March 2023.
Responsibility Statement
We confirm that to the best of our knowledge:
a) the condensed set of Financial Statements has been prepared in accordance
with FRS 104 'Interim Financial Reporting';
b) the Interim Management Report includes a fair review of the information
required by Disclosure Guidance and Transparency Rule 4.2.7R (indication of
important events during the first six months, their impact on the Financial
Statements and a description of the principal risks and uncertainties for the
remaining six months of the year); and
c) the Interim Financial Report includes a fair review of the information
required by Disclosure Guidance and Transparency Rule 4.2.8R (disclosure of
related party transactions and changes therein).
On behalf of the Board
Angus Macpherson
Chairman
2 March 2023
Summary of Unaudited Results*
31 January 31 July
2023 2022 % change
(audited)
Total assets £604.7m £610.6m
Borrowings Nil Nil
Shareholders' funds £604.7m £610.6m
Net asset value per ordinary share 663.08p 664.65p (0.2%)
Share price 670.00p 647.00p 3.6%
MSCI All Country Asia ex Japan Index (in sterling terms) †# 544.2 527.8 3.1%
Premium/(discount) ঠ1.0% (2.7%)
Active share‡ 82% 83%
Six months to 31 January 2023 Six months to 31 January 2022
Revenue earnings per ordinary share 0.25p (0.44p)
Six months to 31 January 2023 Year to
31 July
2022
Total return#‡
Net asset value per ordinary share¶ 0.3% (14.5%)
Share price¶ 4.1% (19.3%)
MSCI All Country Asia ex Japan Index (in sterling terms) †# 4.0% (8.2%)
Six months to 31 January 2023 Year to 31 July 2022
Period's high and low High Low High Low
Net asset value per ordinary share 699.18p 579.02p 871.11p 656.64p
Share price 684.00p 523.00p 948.00p 602.00p
Premium/(discount) ঠ2.7% (11.7%) 11.4% (10.9%)
* For a definition of terms see Glossary of Terms and Alternative Performance
Measures at the end of this announcement.
† The MSCI All Country Asia ex Japan Index (in sterling terms) is the
principal index against which performance is measured.
# Source: Baillie Gifford/Refinitiv and relevant underlying index providers.
See disclaimer at the end of this announcement.
‡ Alternative performance measure. See Glossary of Terms and Alternative
Performance Measures at the end of this announcement.
¶ Key Performance Indicator.
Past performance is not a guide to future performance.
Interim Management Report
Overview
What defines us is growth. We believe Asia ex Japan will be one of the fastest
growing regions over the coming decades and we strive to be invested in its
fastest growing companies. It is growth multiplied by growth or, as we like to
call it, 'Growth²'.
Such an investment style has been rewarded over the longer term, with the
Company's NAV outperforming the comparative index, the MSCI All Country Asia
ex Japan Index (in sterling terms) by 76 percentage points over the past five
years, and the share price returning 99%. Over the reporting period (31 July
2022 to 31 January 2023) the Company's NAV increased by 0.3%, while the share
price increased by 4.1%, compared to the comparative index which rose 4.0% in
sterling terms, all figures total return.
The period was noticeable for its volatility, with markets in the region
falling in aggregate nearly 20%, reaching their nadir as President Xi cemented
his grip on power during the 20th Chinese Communist Party Congress in October,
before rallying as China abandoned its zero Covid policy, to end the period in
positive territory.
Markets will likely remain volatile. However, we are hopeful that Asian
markets have bottomed and we are very optimistic about the future. In the near
term, China's re-opening will spur significant growth across the region.
Longer term, the region's structural advantages including demographics and a
rising middle class, combined with the superior financial position of most
Asian economies compared to the west, are likely to result in Asian growth
significantly outperforming over the coming years. In such an environment we
believe our focus on growth companies will generate substantial returns for
investors.
By sector, in absolute terms, our largest exposure remains focused on the
rising middle class, technology and innovation. However, we continue to have
significant exposure to growth companies in more cyclical industries including
materials, industrials and energy.
The most notable change to the portfolio over the period was significant
additions to China, predominantly in the internet sector, which we had also
been adding to in the prior period. Funding was from further reductions in
India, and selling a number of smaller positions in South Korea.
Review
For some time, Asia has faced a series of challenges as markets have grappled
with the implications of soaring inflation, interest rate rises and tapering
in the West, armed conflict in Eastern Europe, a housing collapse in China and
a soaring US Dollar to name a few. Despite all these issues, there has been no
Asian crisis, quite the opposite, Asian economies have remained remarkably
resilient and are generally growing far faster than the majority of western
economies.
This is extremely encouraging and suggests Asian economies are far better
positioned than in the past, especially when compared to developed markets.
There are three key reasons. Firstly, Asian balance sheets are in superior
shape having lacked the profligate monetary and fiscal stimulus of the west.
For example, China's Covid stimulus has equated to c.10% of GDP compared to
c.70% for many major European countries.
Secondly, while Western markets have, for years, operated with ultra-low or
even negative interest rates, most of Asia has maintained positive rates for
many years. Arguably, it is Asian countries that have behaved like orthodox
developed countries while much of the developed world has behaved like the
emerging markets of old, (perhaps we are seeing the beginning of the
'converging markets').
Thirdly, capital flows into Asia have been negative for a decade and the
region therefore far less vulnerable to money outflows than in the past.
The result is that today, Asia's financial position is superior to much of the
developed world. Combine this with Asia's structurally faster growth rates and
valuations at multi-year lows relative to developed markets, and the long-term
outlook for Asian investors looks very encouraging.
Why has this positive position not been reflected in the performance of Asian
equities more recently? China has been the key issue.
Regulatory clampdowns on the private sector, increasing geopolitical tensions,
Covid induced lockdowns and problems in the property market have led to a
collapse in investor sentiment about the country: the MSCI China Index is down
nearly 50% since its 2021 peak, while many Chinese companies listed in the
United States have fallen significantly more. Sentiment reached its nadir at
the 20th Communist Party Congress this October, the results of which confirmed
Xi's iron grip on the government with all the most senior positions in the
country going to Xi loyalists, combined with the very public removal of the
former Chinese leader, Hu Jintao, from the closing ceremony.
Sentiment, however, turned more positive towards the end of the year as China
suddenly abandoned its zero Covid policies, effectively ending all forms of
lockdowns which were seriously hurting the economy. With pent up consumer
demand, a huge build up in personal savings (retail deposits at banks have
increased by roughly 60% in the past 18 months) and a government clearly keen
to see a stronger economy, growth in China is likely to accelerate rapidly and
provide a strong backdrop for many domestic companies.
Over the past year, we have increasingly been finding compelling investment
opportunities in China. This is especially true in the technology space, where
valuations have been extreme. For example, during the period Dada Nexus'
(Chinese e-commerce logistics) market capitalisation fell to almost the level
of cash on its balance sheet, while Alibaba Group's core e-commerce business
(stripping out cash and subsidiaries) was trading on a low single digit PE
multiple. (We added to both of these holdings over the period).
At the same time, many of the regulatory headwinds that have affected the
sector have subsided. This is in part due to the geopolitical tensions with
the United States, whose recent actions to stymie China's innovation,
including drastic measures to cut China off from certain semiconductor chips,
means China needs its own technological giants to thrive and innovate and is
thus becoming more supportive of the sector.
With the economy now open and set to grow strongly, we have further increased
our exposure to China by adding c.600bp to Chinese companies. In addition to
the aforementioned Dada Nexus and Alibaba Group, most of the additions were
made to internet firms, including JD.com (e-commerce), KE Holdings (online
property portal) and Baidu.com (online search engine). We also added to two
financial companies, Ping An Insurance, China's leading private insurance
company, and one of its subsidiaries, Ping An Bank. This takes the portfolio's
exposure to China to 38% (+30bp relative to the comparative index) compared to
19% of the portfolio (-ve 1240bp relative) a year ago.
Outside China, additions were made to Nickel Mines, an Indonesian nickel
processing company. Until now, Nickel Mines has focused solely on processing
nickel for use in stainless steel production, however, the company is now
taking a stake in one of Indonesia's new High Pressure Acid Leach (HPAL)
facilities that can convert Indonesia's low-grade nickel into high-grade
nickel required for electric vehicle batteries.
Such a development is significant news for Indonesia. The country is already
the world's largest nickel producer and, if it can successfully convert its
lower-grade nickel into battery-grade material, it can greatly enhance the
country's prospect of becoming a key link in the electric vehicle supply
chain. Companies including CATL (the world's largest electric vehicle battery
maker) and LG Energy (Korea's largest battery manufacturer) have already
invested some $25bn in the country's commodity complex, with Tesla considering
a $5bn investment. Versus the comparative index, Indonesia is the portfolio's
largest country overweight position.
Finally, a new purchase was made in Silergy, a leading designer of analogue
chips in China (listed in Taiwan). The company has the largest market share
among domestic designers and is likely to be a key beneficiary of Chinese
attempts to become self reliant in semiconductor chips.
Funding for the purchases came from two main sources. The most significant was
a reduction to a number of smaller (<60bps) holdings in South Korea. These
were across a range of sectors including green energy businesses (LG Energy
Solutions, SK IE Technology and S-Fuelcell), cloud computing (Douzone Bizon)
and speech recognition software (Flitto). Over the period our Korean weighting
reduced from 17.4% of the portfolio to 14.6%.
We also continued to reduce our exposure to India, selling Zomato, the online
food delivery businesses, as the company's unit economics are not as
favourable as we would have hoped, and made a small reduction to Star Health
& Allied Insurance Co (health insurance). Although India remains our
second largest absolute (19.3%) and relative (+470bp) country position, it is
noteworthy that this has come down significantly from 32.1% (absolute) and
+1720bp (relative) since this time last year. Vietnam is now the second
largest overweight country in the portfolio (+530bp).
By sector, there have been limited changes, with the portfolio continuing to
look different to many of our growth focused peer funds. In absolute terms,
our largest exposures remain focused on the key themes of the rising middle
class, technology and innovation. However, we have significant exposures to
more cyclical industries including materials, industrials and energy that,
after consumer discretionary, make up the three largest relative positions
within the portfolio.
Overall, the number of names in the portfolio reduced to 77 from 85. Private
companies, of which there are 5 in the portfolio, currently make up 5.4% of
the portfolio, and invested gearing is currently nil.
Performance
We are long-term investors, running a high conviction growth portfolio that is
index agnostic. Performance will be volatile and there will be short term
periods when we underperform. It is pleasing that over the past 5 years, the
timescale on which we believe our performance should be judged, the portfolio
has generated significant value for shareholders.
Over the six months to 31 January 2023 the Company's NAV increased by 0.3%,
while the share price increased by 4.1%, compared to the comparative index
which rose 4.0% in sterling terms, all figures total return.
The weakest performing companies over the period were internet related. The
most significant was Delhivery in India (India's largest private logistics
company, with a core focus on e-commerce logistics). Delhivery was
previously held as a private company until listing in May 2022. Thanks to
strong share price performance the company was a 5.5% holding at the start of
the period.
Unfortunately, Delhivery's latest quarterly results were weak. M&A
integration challenges and a slowdown in broader e-commerce growth in India
led the share price down 52% and took 310bp off our performance. We are
hopeful these issues are short term, and with key private players finding
funding far more difficult, e-commerce a multi decade growth opportunity and
Delhivery the clear number one player, we continue to have faith in the
company.
Other detractors in the internet space came from the large internet platforms
in China which appreciated in value. Our underweight positions in some of the
largest platforms, including Tencent and Alibaba Group, detracted c.110bp.
More positively, the portfolio's significant exposure to more cyclical
sectors, which has been increased significantly over the past few years,
helped offset some of the weakness. Materials were the largest positive
contributor, led by several of our copper companies including Zijin Mining
Group and Merdeka Copper Gold, that performed strongly on China's reopening.
The longer-term driver remains copper's role in the green transition.
Consumer discretionary was the second largest contributor, mainly due to the
strong performance of our China holdings as the reopening theme took hold.
Dada Nexus (e-commerce logistics) was the standout performer adding +110bp and
was the single largest stock contributor.
Our increased exposure to China over the period resulted in China and Hong
Kong being the most significant contributors to performance. This was followed
by Indonesia, driven by our commodity holdings. India was the weakest market
in the portfolio due to the performance of Delhivery and Dailyhunt (Social
media).
The Company's shares ended the period at a 1% premium to the NAV per share,
having been at a 2.7% discount six months earlier. Over the six months to 31
January 2023, the Company issued 25,000 shares from treasury and bought back
in total 686,593 shares for treasury. At the end of January 2023 the Company
was promoted to the FTSE 250 Index and since period end the Company has issued
a further 175,000 shares from treasury at a premium to NAV.
Conclusion
While short term markets may remain volatile, we remain extremely positive on
the long-term outlook for the region. Asia has already taken up the baton of
global demand growth, with China alone having contributed more to global
growth in US dollar terms than the US over the past decade, while India is
overtaking Japan. Asia is now better positioned financially than much of the
developed world and, with a renewed investment cycle unfolding, Asian growth
is likely to significantly outperform over the coming years.
We firmly believe the best way to invest in the Asia growth story is to invest
in the region's fastest growing companies.
The principal risks and uncertainties facing the Company are set out in note
13.
Bailie Gifford & Co Limited
Managers & Secretaries
For a definition of terms see Glossary of Terms and Alternative Performance
Measures at the end of this announcement.
Total return information is sourced from Baillie Gifford/Refinitiv and
relevant underlying index providers. See disclaimer at the end of this
announcement.
Valuing Private Companies
We aim to hold our private company investments at 'fair value', i.e. the price
that would be paid in an open-market transaction. Valuations are adjusted both
during regular valuation cycles and on an ad hoc basis in response to 'trigger
events'. Our valuation process ensures that private companies are valued in
both a fair and timely manner.
The valuation process is overseen by a valuations committee at Baillie
Gifford, which takes advice from an independent third party (S&P Global).
The valuations committee is independent from the portfolio managers, as well
as Baillie Gifford's Private Companies Specialist team, with all voting
members being from different operational areas of the firm, and the portfolio
managers only receive final valuation notifications once they have been
applied.
We revalue the private holdings on a three-month rolling cycle, with one-third
of the holdings reassessed each month. The prices are also reviewed twice per
year by the Pacific Horizon Board and are subject to the scrutiny of external
auditors in the annual audit process.
Recent market volatility has meant that recent pricing has moved much more
frequently than would have been the case with the quarterly valuations cycle.
Beyond the regular cycle, the valuations committee also monitors the portfolio
for certain 'trigger events'. These may include changes in fundamentals, a
takeover approach, an intention to carry out an Initial Public Offering
('IPO'), company news which is identified by the valuation team or by the
portfolio managers or changes to the valuation of comparable public companies.
The valuations committee also monitors relevant market indices on a weekly
basis and update valuations in a manner consistent with our external valuer's
(S&P Global) most recent valuation report where appropriate. When market
volatility is particularly pronounced the team does these checks daily. Any ad
hoc change to the fair valuation of any holding is implemented swiftly and
reflected in the next published net asset value. There is no delay.
Pacific Horizon Investment Trust PLC*
Instruments valued 6
Revaluations performed 14
Percentage of portfolio revalued 2 times 83%
Percentage of portfolio revalued 4 times 17%
* Data reflecting period 1 August 2022 to 31 January 2023 to align with the
Company's reporting period end.
For the six months to 31 January 2023, most revaluations have been decreases.
The average movement in both valuation and share price for those which have
decreased in value is shown below.
Average movement Average movement
in investee company valuation
in investee
share price
Instruments valued* (6%) (14%)
* Data reflecting period 1 August 2022 to 31 January 2023 to align with the
Company's reporting period end.
Share prices have decreased more than headline valuations because Pacific
Horizon typically holds preference stock, which provides downside protection.
The share price movement reflects a probability-weighted average of both the
regular valuation, which would be realised in an IPO, and the downside
protected valuation, which would normally be triggered in the event of a
corporate sale or liquidation.
Baillie Gifford Statement on Stewardship
Baillie Gifford's over-arching ethos is that we are 'actual' investors. We
have a responsibility to behave as supportive and constructively engaged
long-term investors. We invest in companies at different stages in their
evolution, across vastly different industries and geographies and we celebrate
their uniqueness.
Consequently, we are wary of prescriptive policies and rules, believing that
these often run counter to thoughtful and beneficial corporate stewardship.
Our approach favours a small number of simple principles which help shape our
interactions with companies.
Our Stewardship Principles
Prioritisation of Long-term Value Creation
We encourage our holdings to be ambitious and focus their investments on
long-term value creation. We understand that it is easy to be influenced by
short-sighted demands for profit maximisation but believe these often lead to
sub-optimal long-term outcomes. We regard it as our responsibility to steer
holdings away from destructive financial engineering towards activities that
create genuine economic and stakeholder value over the long run. We are happy
that our value will often be in supporting management when others don't.
A Constructive and Purposeful Board
We believe that boards play a key role in supporting corporate success and
representing the interests of all capital providers. There is no fixed
formula, but it is our expectation that boards have the resources,
information, cognitive and experiential diversity they need to fulfil these
responsibilities. We believe that good governance works best when there are
diverse skillsets and perspectives, paired with an inclusive culture and
strong independent representation able to assist, advise and constructively
challenge the thinking of management.
Long-term Focused Remuneration with Stretching Targets
We look for remuneration policies that are simple, transparent and reward
superior strategic and operational endeavour. We believe incentive schemes can
be important in driving behaviour, and we encourage policies which create
genuine long-term alignment with external capital providers. We are accepting
of significant payouts to executives if these are commensurate with
outstanding long-run value creation, but plans should not reward mediocre
outcomes. We think that performance hurdles should be skewed towards long-term
results and that remuneration plans should be subject to shareholder approval.
Fair Treatment of Stakeholders
We believe it is in the long-term interests of all enterprises to maintain
strong relationships with all stakeholders - employees, customers, suppliers,
regulators and the communities they exist within. We do not believe in
one-size-fits-all policies and recognise that operating policies, governance
and ownership structures may need to vary according to circumstance.
Nonetheless, we believe the principles of fairness, transparency and respect
should be prioritised at all times.
Sustainable Business Practices
We believe an entity's long-term success is dependent on maintaining its
social licence to operate and look for holdings to work within the spirit and
not just the letter of the laws and regulations that govern them. We expect
all holdings to consider how their actions impact society, both directly and
indirectly, and encourage the development of thoughtful environmental
practices and 'net-zero' aligned climate strategies as a matter of priority.
Climate change, environmental impact, social inclusion, tax and fair treatment
of employees should be addressed at board level, with appropriately stretching
policies and targets focused on the relevant material dimensions. Boards and
senior management should understand, regularly review and disclose information
relevant to such targets publicly, alongside plans for ongoing improvement.
Thirty Largest Holdings at 31 January 2023 (unaudited)
Name Geography Business Value £'000 % of total assets*
Samsung Electronics Korea Memory, phones and electronic components manufacturer 34,910 5.8
Ping An Insurance H Shares HK/China Life insurance provider 24,034 4.0
JD.com HK/China Online mobile commerce 23,814 3.9
Li Ning HK/China Sportswear apparel supplier 19,668 3.3
Dailyhunt (VerSe Innovation) Series I Preferred(U) India Indian news aggregator application 14,465 2.4
Dailyhunt (VerSe Innovation) Series Equity(U) India Indian news aggregator application 2,755 0.4
Dailyhunt (VerSe Innovation) Series J Preferred(U) India Indian news aggregator application 2,181 0.4
19,401 3.2
Jadestone Energy Singapore Oil and gas explorer and producer 18,238 3.0
Alibaba Group HK/China Online and mobile commerce 17,343 2.9
Zijin Mining Group Co H Shares HK/China Gold and copper miner 16,694 2.8
Delhivery(P) India Logistics and courier services provider 15,329 2.5
Samsung SDI Korea Electrical equipment manufacturer 14,975 2.5
Dada Nexus ADR HK/China Chinese ecommerce distributor of online consumer products 14,868 2.5
Merdeka Copper Gold Indonesia Indonesian miner 14,390 2.4
MMG HK/China Chinese copper miner 13,135 2.2
ByteDance Series E-1 Preferred(U) HK/China Social media 13,040 2.2
Tata Motors India Indian automobile manufacturer 12,630 2.1
Samsung Engineering Korea Korean construction 12,322 2.0
Reliance Industries India Indian petrochemical company 12,010 2.0
Bank Rakyat Indonesia Consumer bank 11,663 1.9
Sea Limited ADR Singapore Internet gaming and ecommerce 11,559 1.9
Meituan HK/China Local services aggregator 10,533 1.7
Ramkrishna Forgings India Auto parts manufacturer 10,275 1.7
HDBank Vietnam Consumer bank 9,398 1.6
Lemon Tree Hotels India Owner and operator of a chain of Indian hotels and resorts 9,334 1.5
Nickel Mines Indonesia Base metals miner 9,145 1.5
China Oilfield Services H Shares HK/China Oilfield services 8,970 1.5
LONGi Green Energy A Shares HK/China Chinese semiconductor manufacturer 8,658 1.4
KE Holdings HK/China Chinese real-estate platform 7,825 1.3
KE Holdings ADR HK/China Chinese real-estate platform 721 0.1
8,546 1.4
Phoenix Mills India Commercial property manager 8,412 1.4
Midea A Shares HK/China Household appliance manufacturer 8,169 1.4
PT Astra International Indonesia Automobile distributor 8,054 1.3
419,517 69.5
HK/China denotes Hong Kong and China.
* For a definition of terms see Glossary of Terms and Alternative Performance
Measures at the end of this announcement.
U Denotes private company (unlisted) security.
P ( )Denotes listed security previously held in the portfolio as a
private company (unlisted) security.
Private company (unlisted) securities(†)
% Net liquid assets
Listed equities % Total
% assets
%
31 January 2023 93.6 5.4 1.0 100.0
31 July 2022 93.6 6.1 0.3 100.0
Figures represent percentage of total assets.
† Includes holdings in ordinary shares and preference shares.
Distribution of Total Assets* (Unaudited)
Geographical Analysis
At At
31 January 31 July
2023 2022
% %
Investments: Hong Kong and China 40.9 32.4
Including 6.8% (2022: 7.1%) 'A' Shares*
India 19.3 24.2
Korea 14.6 17.4
Indonesia 7.9 8.9
Singapore 5.5 6.5
Vietnam 5.3 5.4
Taiwan 4.5 4.5
Other 1.0 0.4
Total investments 99.0 99.7
Net liquid assets* 1.0 0.3
Total assets 100.0 100.0
Sectoral Analysis
At At
31 January 31 July
2023 2022
% %
Investments: Communication Services 8.6 9.6
Consumer Discretionary 23.1 20.2
Consumer Staples 0.3 0.3
Energy 6.5 6.9
Financials 13.5 9.9
Healthcare Nil 0.6
Industrials 9.5 13.5
Information Technology 18.9 19.5
Materials 13.1 14.6
Real Estate 5.5 4.6
Total investments 99.0 99.7
Net liquid assets* 1.0 0.3
Total assets 100.0 100.0
* For a definition of terms see Glossary of Terms and Alternative Performance
Measures at the end of this announcement.
Income Statement (Unaudited)
For the six months ended 31 January 2023 For the six months ended 31 January 2022 For the year ended 31 July 2022 (audited)
Revenue Capital Total Revenue Capital Total Revenue Capital Total
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Losses on investments - (545) (545) - (32,632) (32,632) - (118,594) (118,594)
Currency (losses)/gains - (575) (575) - 652 652 - 1,292 1,292
Income from investments and interest receivable 2,821 - 2,821 2,720 - 2,720 11,067 - 11,067
Investment management fee (note 3) (1,712) - (1,712) (2,121) - (2,121) (4,036) - (4,036)
Other administrative expenses (405) - (405) (589) - (589) (1,093) - (1,093)
Net return before finance costs and taxation 704 (1,120) (416) 10 (31,980) (31,970) 5,938 (117,302) (111,364)
Finance costs of borrowings (201) - (201) (281) - (281) (756) - (756)
Net return before taxation 503 (1,120) (617) (271) (31,980) (32,251) 5,182 (117,302) (112,120)
Tax (note 4) (274) 1,578 1,304 (123) 1,153 1,030 (1,352) 5,288 3,936
Net return after taxation 229 458 687 (394) (30,827) (31,221) 3,830 (112,014) (108,184)
Net return per ordinary share (note 5) 0.25p 0.50p 0.75p (0.44p) (34.15p) (34.59p) 4.21p (123.01p) (118.80p)
The total column of this statement represents the profit and loss account of
the Company. The supplementary revenue and capital columns are prepared under
guidance issued by the Association of Investment Companies.
All revenue and capital items in this statement derive from continuing
operations.
A Statement of Comprehensive Income is not required as the Company does not
have any other comprehensive income and the net return on ordinary activities
after taxation is both the profit and total comprehensive income for the
period.
Balance Sheet (Unaudited)
At 31 January At 31 July
2023 2022
£'000 (audited)
£'000
Fixed assets
Investments held at fair value through profit or loss (note 7) 598,943 608,539
Current assets
Debtors 4,951 1,248
Cash and cash equivalents 3,383 5,399
8,334 6,647
Creditors
Amounts falling due within one year (1,115) (1,620)
Net current assets 7,219 5,027
Total assets less current liabilities 606,162 613,566
Creditors
Amounts falling due after more than one year:
Provision for tax liability (note 9) (1,438) (3,016)
Net assets 604,724 610,550
Capital and reserves
Share capital (note 10) 9,208 9,208
Share premium account 253,967 253,946
Capital redemption reserve 20,367 20,367
Capital reserve 316,242 319,573
Revenue reserve 4,940 7,456
Shareholders' funds 604,724 610,550
Net asset value per ordinary share* 663.08p 664.65p
(after deducting borrowings at book cost)
Ordinary shares in issue (note 10) 91,199,368 91,860,961
* See Glossary of Terms and Alternative Performance Measures at the
end of this announcement.
Statement of Changes in Equity
For the year ended 31 January 2023
Share capital Share premium account Capital redemption reserve Capital reserve* Revenue reserve Shareholders' funds
£'000 £'000 £'000 £'000 £'000 £'000
Shareholders' funds at 1 August 2022 9,208 253,946 20,367 319,573 7,456 610,550
Net return after taxation - - - 458 229 687
Ordinary shares issued (note 10) - - - - - -
Ordinary shares bought back into treasury (note 10) - - - (3,940) - (3,940)
Ordinary shares sold from treasury (note 10) - 21 - 151 - 172
Dividends paid during the period (note 6) - - - - (2,745) (2,745)
Shareholders' funds at 31 January 2023 9,208 253,967 20,367 316,242 4,940 604,724
For the year ended 31 January 2022
Share capital Share premium account Capital redemption reserve Capital reserve* Revenue reserve Shareholders' funds
£'000 £'000 £'000 £'000 £'000 £'000
Shareholders' funds at 1 August 2021 8,843 221,354 20,367 433,041 3,626 687,231
Net return after taxation - - - (30,827) (394) (31,221)
Ordinary shares issued 365 32,592 - - - 32,957
Ordinary shares bought back into treasury - - - (1,203) - (1,203)
Ordinary shares sold from treasury - - - - - -
Dividends paid during the period (note 6) - - - - - -
Shareholders' funds at 31 January 2022 9,208 253,946 20,367 401,011 3,232 687,764
* The Capital Reserve balance at 31 January 2023 includes investment holding
gains on investments of £103,733,000 (31 January 2022- gains of
£239,779,000).
Condensed Cash Flow Statement (Unaudited)
Six months to Six months to
31 January 31 January
2023 2022
£'000 £'000
Cash flows from operating activities
Net return before taxation (617) (32,251)
Net losses on investments 545 32,632
Currency losses/(gains) 575 (652)
Finance costs of borrowings 201 281
Overseas withholding tax (269) (100)
Indian CGT paid on transactions - (1)
Changes in debtors and creditors 98 12
Cash from operations* 533 (79)
Interest paid (201) (229)
Net cash inflow/(outflow) from operating activities 332 (308)
Cash flows from investing activities
Acquisitions of investments (58,477) (39,234)
Disposals of investments 63,217 39,799
Net cash inflow from investing activities 4,740 565
Cash flows from financing activities
Ordinary shares bought back into treasury (3,940) (1,203)
Ordinary shares sold from treasury 172 -
Ordinary shares issued - 32,880
Borrowings brought down - 119,372
Borrowings repaid - (122,598)
Equity dividends paid (2,745) -
Net cash (outflow)/inflow from financing activities (6,513) 28,451
(Decrease)/increase in cash and cash equivalents (1,441) 28,708
Exchange movements (575) 2,462
Cash and cash equivalents at start of period 5,399 31,766
Cash and cash equivalents at end of period 3,383 62,936
* Cash from operations includes dividends received of £2,862,000 (31 January
2022 - £2,682,000) and interest received of £118,000 (31 January 2022 -
nil).
Notes to the Financial Statements
1. Basis of Accounting
The condensed Financial Statements for the six months to 31 January 2023
comprise the statements set out above together with the related notes below.
They have been prepared in accordance with FRS 104 'Interim Financial
Reporting' and the AIC's Statement of Recommended Practice issued in issued in
November 2014 and updated in October 2019, April 2021 and July 2022 with
consequential amendments. They have not been audited or reviewed by the
Auditor pursuant to the Auditing Practices Board Guidance on 'Review of
Interim Financial Information'. The Financial Statements for the six months to
31 January 2023 have been prepared on the basis of the same accounting
policies as set out in the Company's Annual Report and Financial Statements at
31 July 2022.
Going Concern
The Directors have considered the Company's principal risks and uncertainties,
as set out on the inside cover of this report, together with the Company's
current position, investment objective and policy, the level of demand for the
Company's shares, the nature of its assets, its liabilities and projected
income and expenditure. The Board has, in particular, considered the impact of
heightened market volatility since the Covid-19 pandemic and over recent
months due to macroeconomic and geopolitical concerns. It does not believe the
Company's going concern status is affected. It is the Directors' opinion that
the Company has adequate resources to continue in operational existence for
the foreseeable future. The Company's assets, the majority of which are
investments in quoted securities which are readily realisable, exceed its
liabilities significantly. All borrowings require the prior approval of the
Board. The Board approves borrowing and gearing limits and reviews regularly
the amounts of any borrowing and the level of gearing as well as compliance
with borrowing covenants. The Company has continued to comply with the
investment trust status requirements of section 1158 of the Corporation Tax
Act 2010 and the Investment Trust (Approved Company) (Tax) regulations 2011.
In accordance with the Company's Articles of Association, shareholders have
the right to vote on the continuation of the Company every five years, the
next vote being in 2026. Accordingly, the Directors consider it appropriate to
adopt the going concern basis of accounting in preparing these Financial
Statements and confirm that they are not aware of any material uncertainties
which may affect the Company's ability to continue to do so over a period of
at least twelve months from the date of approval of these Financial
Statements.
2. The financial information contained within this Interim Financial
Report does not constitute statutory accounts as defined in sections 434 to
436 of the Companies Act 2006. The financial information for the year ended 31
July 2022 has been extracted from the statutory accounts which have been filed
with the Registrar of Companies. The Auditor's Report on those accounts was
not qualified, did not include a reference to any matters to which the Auditor
drew attention by way of emphasis without qualifying its report, and did not
contain statements under sections 498(2) or (3) of the Companies Act 2006.
3. Baillie Gifford & Co Limited, a wholly owned subsidiary of
Baillie Gifford & Co, has been appointed by the Company as its Alternative
Investment Fund Manager and Company Secretary. Baillie Gifford & Co
Limited has delegated the investment management services to Baillie Gifford
& Co. Dealing activity and transaction reporting have been further
sub-delegated to Baillie Gifford Overseas Limited and Baillie Gifford Asia
(Hong Kong) Limited. The Managers may terminate the Management Agreement on
six months' notice and the Company may terminate on three months' notice. The
annual management fee is 0.75% on the first £50 million of net assets, 0.65%
on the next £200 million of net assets and 0.55% on the remaining net assets.
Management fees are calculated and payable on a quarterly basis.
4. Tax
The revenue tax charge includes the overseas withholding tax suffered in the
period. The capital tax charge results from the Provision for Tax Liability in
respect of Indian capital gains tax as detailed in note 9.
5. Net Return
Six months to 31 January Six months to 31 January Year to
31 July
2023 2022
2022
(audited)
£'000 £'000
£'000
Revenue return after taxation 229 (394) 3,830
Capital return after taxation 458 (30,827) (112,014)
Total net return 687 (31,221) (108,184)
Net return per ordinary share
Revenue return after taxation 0.25p (0.44p) 4.21p
Capital return after taxation 0.50p (34.15p) (123.01p)
Total net return per ordinary share 0.75p (34.59p) (118.80p)
Weighted average number of ordinary shares 91,439,600 90,271,035 91,063,205
in issue
The net return per ordinary share figures are based on the above totals of
revenue and capital and the weighted average number of ordinary shares in
issue (excluding treasury shares) during each period.
There are no dilutive or potentially dilutive shares in issue.
6. Dividends
Six months to 31 January Six months to 31 January Year to
31 July
2023 2022
2022
(audited)
£'000 £'000
£'000
Amounts recognised as distributions in the period:
Previous year's final dividend of 3.00p (31 July 2021 - nil), paid 29 November 2,745 - -
2022
Amounts paid and payable in respect of the period:
Final dividend (31 July 2022 - 3.00p) - - 2,745
No interim dividend has been declared in respect of the current period.
7. Fair Value Hierarchy
The Company's investments are financial assets held at fair value through
profit or loss. The fair value hierarchy used to analyse the basis on which
the fair values of financial instruments held at fair value through the profit
and loss account are measured is described below. The levels are determined by
the lowest (that is the least reliable or least independently observable)
level of input that is significant to the fair value measurement for the
individual investment in its entirety.
Level 1 - using unadjusted quoted prices for identical instruments in an
active market;
Level 2 - using inputs, other than quoted prices included within Level 1, that
are directly or indirectly observable (based on market data); and
Level 3 - using inputs that are unobservable (for which market data is
unavailable).
An analysis of the Company's financial asset investments based on the fair
value hierarchy described above is shown below.
Investments held at fair value through profit or loss
Level 1 Level 2 Level 3 Total
As at 31 January 2023 £'000 £'000 £'000 £'000
Listed equities† 566,347 - - 566,347
Unlisted equities - - 2,910 2,910
Unlisted preference shares* - - 29,686 29,686
Total financial asset investments 566,347 - 32,596 598,943
Level 1 Level 2 Level 3 Total
As at 31 July 2022 (audited) £'000 £'000 £'000 £'000
Listed equities 570,801 495 - 571,296
Unlisted equities - - 4,051 4,051
Unlisted preference shares* - - 33,192 33,192
Total financial asset investments 570,801 495 37,243 608,539
† During the period, Brilliance China listed on the Hong Kong stock exchange
having de-listed on 31 March 2021.
* The investments in preference shares are not classified as equity holdings
as they include liquidation preference rights that determine the repayment (or
multiple thereof) of the original investment in the event of a liquidation
event such as a take-over.
The fair value of listed security investments is bid price or, in the case of
FTSE 100 constituents and holdings on certain recognised overseas exchanges,
last traded price. Listed Investments are categorised as Level 1 if they are
valued using unadjusted quoted prices for identical instruments in an active
market and as Level 2 if they do not meet all these criteria but are,
nonetheless, valued using market data. Unlisted investments are valued at fair
value by the Directors following a detailed review and appropriate challenge
of the valuations proposed by the Managers. The Managers' unlisted investment
policy applies methodologies consistent with the International Private Equity
and Venture Capital Valuation guidelines ('IPEV'). These methodologies can be
categorised as follows: (a) market approach (multiples, industry valuation
benchmarks and available market prices); (b) income approach (discounted cash
flows); and (c) replacement cost approach (net assets). The Company's holdings
in unlisted investments are categorised as Level 3 as unobservable data is a
significant input to their fair value measurements.
8. The Company has a three year multi-currency revolving credit facility
of up to £100 million with Royal Bank of Scotland International Limited which
expires on 14 March 2025. At 31 January 2023 there were no outstanding
drawings (31 July 2022 - no outstanding drawings).
9. Provision for Tax Liability
The tax liability provision at 31 January 2023 of £1,438,000 (31 July 2022 -
£3,016,000) relates to a potential liability for Indian capital gains tax
that may arise on the Company's Indian investments should they be sold in the
future, based on the net unrealised taxable capital gain at the period end and
on enacted Indian tax rates (long term capital gains are taxed at 10% and
short term capital gains are taxed at 15%). The amount of any future tax
amounts payable may differ from this provision, depending on the value and
timing of any future sales of such investments and future Indian tax rates.
10. Share Capital
As at 31 January 2023 As at 31 July 2022 (audited)
Number £'000 Number £'000
Allotted, called up and fully paid ordinary shares of 10p each in issue 91,199,368 9,120 91,860,961 9,186
Treasury shares of 10p each 875,593 88 214,000 22
92,074,961 9,208 92,074,961 9,208
The Company has authority to allot shares under section 551 of the Companies
Act 2006. In the six months to 31 January 2023, the Company issued 25,000
ordinary shares, from treasury (nominal value £2,500, representing 0.03% of
the issued share capital as at 31 July 2022) at a premium to net asset value,
raising net proceeds of £172,000 (year to 31 July 2022 - 3,645,257 ordinary
shares, at a premium to net asset value, with a nominal value £365,000,
representing 4.1% of the issued share capital at 31 July 2021, raising net
proceeds of £32,957,000).
In the six months to 31 January 2023, 686,593 shares, representing 0.7% of the
issued share capital as at 31 July 2022, were bought back at a total cost of
£3,940,000 and held in treasury (year to 31 July 2022 - 214,000 shares,
representing 0.2% of the issued share capital at 31 July 2021, were bought
back at a total cost of £1,454,000 and held in treasury).
At 31 January 2023 the Company had authority to allot or sell from treasury
9,139,320 ordinary shares without application of pre-emption rights and to buy
back 13,667,037 ordinary shares on an ad hoc basis. In accordance with
authorities granted at the last Annual General Meeting in November 2022,
buy-backs will only be made at a discount to net asset value and the Board has
authorised use of the issuance authorities to issue new shares or sell shares
from treasury at a premium to net asset value in order to enhance the net
asset value per share for existing shareholders and improve the liquidity of
the Company's shares.
Over the period from 31 January 2023 to 1 March 2023 the Company has issued a
further 175,000 shares from treasury. No further shares have been bought back.
11. During the period, transaction costs on purchases amounted to £84,000
(31 January 2022 - £67,000; 31 July 2022 - £225,000) and transaction costs
on sales amounted to £143,480 (31 January 2022 - £55,000; 31 July 2022 -
£308,000).
12. Related Party Transactions
There have been no transactions with related parties during the first six
months of the current financial year that have materially affected the
financial position or the performance of the Company during that period and
there have been no changes in the related party transactions described in the
last Annual Report and Financial Statements that could have had such an effect
on the Company during that period.
13. Principal risks and uncertainties
The principal risks facing the Company are financial risk, investment strategy
risk, climate and governance risk, discount risk, regulatory risk, custody and
depositary risk, operational risk, leverage risk, political and associated
economic risk, cyber security risk and emerging risks. An explanation of these
risks and how they are managed is set out on pages 8 and 9 of the Company's
Annual Report and Financial Statements for the year to 31 July 2022 which is
available on the Company's website: pacifichorizon.co.uk
(http://www.pacifichorizon.co.uk/) .
The principal risks and uncertainties have not changed since the date of that
report.
None of the views expressed in this document should be construed as advice to
buy or sell a particular investment.
The printed version of the Interim Financial Report will be sent to
shareholders and will be available on the Company's page on the Managers'
website pacifichorizon.co.uk (http://www.pacifichorizon.co.uk) ‡ on or
around 13 March 2023.
‡ Neither the contents of the Managers' website nor the contents of any
website accessible from hyperlinks on the Managers' website (or any other
website) is incorporated into, or forms part of, this announcement.
Third Party Data Provider Disclaimer
No third party data provider ('Provider') makes any warranty, express or
implied, as to the accuracy, completeness or timeliness of the data contained
herewith nor as to the results to be obtained by recipients of the data. No
Provider shall in any way be liable to any recipient of the data for any
inaccuracies, errors or omissions in the index data included in this document,
regardless of cause, or for any damages (whether direct or indirect) resulting
therefrom.
No Provider has any obligation to update, modify or amend the data or to
otherwise notify a recipient thereof in the event that any matter stated
herein changes or subsequently becomes inaccurate.
Without limiting the foregoing, no Provider shall have any liability
whatsoever to you, whether in contract (including under an indemnity), in tort
(including negligence), under a warranty, under statute or otherwise, in
respect of any loss or damage suffered by you as a result of or in connection
with any opinions, recommendations, forecasts, judgements, or any other
conclusions, or any course of action determined, by you or any third party,
whether or not based on the content, information or materials contained
herein.
MSCI Index Data
Source: MSCI. The MSCI information may only be used for your internal use, may
not be reproduced or redisseminated in any form and may not be used as a basis
for or a component of any financial instruments or products or indices. None
of the MSCI information is intended to constitute investment advice or a
recommendation to make (or refrain from making) any kind of investment
decision and may not be relied on as such. Historical data and analysis should
not be taken as an indication or guarantee of any future performance analysis,
forecast or prediction. The MSCI information is provided on an 'as is' basis
and the user of this information assumes the entire risk of any use made of
this information. MSCI, each of its affiliates and each other person involved
in or related to compiling, computing or creating any MSCI information
(collectively, the 'MSCI Parties') expressly disclaims all warranties
(including, without limitation, any warranties of originality, accuracy,
completeness, timeliness, non-infringement, merchantability and fitness for a
particular purpose) with respect to this information. Without limiting any of
the foregoing, in no event shall any MSCI Party have any liability for any
direct, indirect, special, incidental, punitive, consequential (including,
without limitation, lost profits) or any other damages. (msci.com).
Sustainable Finance Disclosure Regulation ('SFDR')
The EU Sustainable Finance Disclosure Regulation ('SFDR') does not have a
direct impact in the UK due to Brexit, however, it applies to third-country
products marketed in the EU. As Pacific Horizon Investment Trust PLC is
marketed in the EU by the AIFM, Baillie Gifford & Co Limited, via the
National Private Placement Regime, ('NPPR') the following disclosures have
been provided to comply with the high-level requirements of SFDR.
The AIFM has adopted Baillie Gifford & Co's Governance and Sustainable
Principles and Guidelines as its policy on integration of sustainability risks
in investment decisions. Baillie Gifford & Co's approach to investment is
based on identifying and holding high quality growth businesses that enjoy
sustainable competitive advantages in their marketplace. To do this it looks
beyond current financial performance, undertaking proprietary research to
build an in-depth knowledge of an individual company and a view on its
long-term prospects. This includes the consideration of sustainability factors
(environmental, social and/or governance matters) which it believes will
positively or negatively influence the financial returns of an investment.
More detail on the Managers' approach to sustainability can be found in the
Governance and Sustainability Principles and Guidelines document, available
publicly on the Baillie Gifford website bailliegifford.com.
Taxonomy Regulation
The Taxonomy Regulation establishes an EU-wide framework of criteria for
environmentally sustainable economic activities in respect of six
environmental objectives. It builds on the disclosure requirements under SFDR
by introducing additional disclosure obligations in respect of alternative
investment funds that invest in an economic activity that contributes to an
environmental objective. The Company does not commit to make sustainable
investments as defined under SFDR. As such, the underlying investments do not
take into account the EU criteria for environmentally sustainable economic
activities.
Glossary of Terms and Alternative Performance Measures ('APM')
Total Assets
This is the Company's definition of Adjusted Total Assets, being the total
value of all assets held less all liabilities (other than liabilities in the
form of borrowings).
Shareholders' Funds and Net Asset Value
Also described as shareholders' funds, Net Asset Value ('NAV') is the value of
all assets held less all liabilities (including borrowings). The NAV per share
is calculated by dividing this amount by the number of ordinary shares in
issue (excluding shares held in treasury).
Net Liquid Assets
Net liquid assets comprise current assets less current liabilities (excluding
borrowings) and provisions for deferred liabilities.
Discount/Premium (APM)
As stockmarkets and share prices vary, an investment trust's share price is
rarely the same as its NAV. When the share price is lower than the NAV per
share it is said to be trading at a discount. The size of the discount is
calculated by subtracting the share price from the NAV per share and is
usually expressed as a percentage of the NAV per share. If the share price is
higher than the NAV per share, this situation is called a premium.
As at As at
31 January
31 July 2022
2023 (audited)
£'000 £'000
Net asset value per ordinary share (a) 663.08p 664.65p
Share price (b) 670.00p 647.00p
Premium/(discount) ((b) - (a)) ÷ (a) 1.0% (2.7%)
Total Return (APM)
The total return is the return to shareholders after reinvesting the net
dividend on the date that the share price goes ex-dividend. In periods where
no dividend is paid, the total return equates to the capital return.
As at As at
31 January 2023
31 July 2022
NAV Share price NAV Share
price
Closing NAV per share/share price (a) 663.08p 670.00p 664.65p 647.00p
Dividend adjustment factor* (b) 1.0051 1.0057 1.0000 1.0000
Adjusted closing NAV per share/share price (c) = (a) x (b) 666.46p 673.82p 664.65p 647.00p
Opening NAV per share/share price (d) 664.65p 647.00p 777.15p 802.00p
Total return (c) ÷ (d) -1 0.3% 4.1% (14.5%) (19.3%)
*The dividend adjustment factor is calculated on the assumption that the final
dividend of 3.00p (31 July 2021 - nil) paid by the Company during the period
was reinvested into shares of the Company at the cum income NAV per
share/share price, as appropriate, at the ex-dividend date.
Turnover (APM)
Annual turnover is calculated on a rolling 12 month basis. The lower of
purchases and sales for the 12 months is divided by the average assets, with
average assets being calculated on assets as at each month's end.
Ongoing Charges (APM)
The total recurring expenses (excluding the Company's cost of dealing in
investments and borrowing costs) incurred by the Company as a percentage of
the daily average net asset value.
Gearing (APM)
At its simplest, gearing is borrowing. Just like any other public company, an
investment trust can borrow money to invest in additional investments for its
portfolio. The effect of the borrowing on the shareholders' assets is called
'gearing'. If the Company's assets grow, the shareholders' assets grow
proportionately more because the debt remains the same. But if the value of
the Company's assets falls, the situation is reversed. Gearing can therefore
enhance performance in rising markets but can adversely impact performance in
falling markets.
Invested gearing is borrowings at par less cash and brokers' balances
expressed as a percentage of shareholders' funds.
As at As at
31 January
31 July
2023
2022
(audited)
£'000
£'000
Borrowings (at book value) - -
Less: cash and cash equivalents (3,383) (5,399)
Less: sales for subsequent settlement (4,267) (402)
Add: purchases for subsequent settlement - 446
Adjusted borrowings (a) (7,650) (5,355)
Shareholders' funds (b) 604,724 610,550
Gearing: (a) as a percentage of (b) (1.3%) (0.9%)
Potential gearing is the Company's borrowings expressed as a percentage of
shareholders' funds.
As at As at 31 July
31 January
2022
2023
(audited)
£'000
£'000
Borrowings (at book value) (a) - -
Shareholders' funds (b) 604,724 610,550
Potential gearing (a) as a percentage of (b) - -
Leverage (APM)
For the purposes of the Alternative Investment Fund Managers Regulations,
leverage is any method which increases the Company's exposure, including the
borrowing of cash and the use of derivatives. It is expressed as a ratio
between the Company's exposure and its net asset value and can be calculated
on a gross and a commitment method. Under the gross method, exposure
represents the sum of the Company's positions after the deduction of sterling
cash balances, without taking into account any hedging and netting
arrangements. Under the commitment method, exposure is calculated without the
deduction of sterling cash balances and after certain hedging and netting
positions are offset against each other.
Active Share (APM)
Active share, a measure of how actively a portfolio is managed, is the
percentage of the portfolio that differs from its comparative index. It is
calculated by deducting from 100 the percentage of the portfolio that overlaps
with the comparative index. An active share of 100 indicates no overlap with
the index and an active share of zero indicates a portfolio that tracks the
index.
Compound Annual Return (APM)
The compound annual return converts the return over a period of longer than
one year to a constant annual rate of return applied to the compound value at
the start of each year.
China 'A' Shares
'A' Shares are shares of mainland China-based companies that trade on the
Shanghai Stock Exchange and the Shenzhen Stock Exchange. Since 2003, select
foreign institutions have been able to purchase them through the Qualified
Foreign Institutional Investor system.
Treasury Shares
The Company has the authority to make market purchases of its ordinary shares
for retention as treasury shares for future reissue, resale, transfer, or for
cancellation. Treasury shares do not receive distributions and the Company is
not entitled to exercise the voting rights attaching to them.
Private (Unlisted) Company
An unlisted or private company means a company whose shares are not available
to the general public for trading and are not listed on a stock exchange.
Pacific Horizon Investment Trust PLC (Pacific Horizon) aims to achieve capital
growth through investment in the Asia-Pacific region (excluding Japan) and in
the Indian Sub-continent. At 31 January 2023 the Company had total assets of
£604.7 million (before deduction of loans of nil).
Pacific Horizon is managed by Baillie Gifford & Co Limited, the Edinburgh
based fund management group.
Past performance is not a guide to future performance. Pacific Horizon is a
listed UK Company and is not authorised or regulated by the Financial Conduct
Authority. The value of its shares and any income from those shares can fall
as well as rise and you may not get back the amount invested. Pacific Horizon
invests in overseas securities. Changes in the rates of exchange may also
cause the value of your investment (and any income it may pay) to go down or
up. Pacific Horizon invests in emerging markets (including Chinese 'A' shares)
where difficulties in dealing, settlement and custody could arise, resulting
in a negative impact on the value of your investment. Shareholders in Pacific
Horizon have the right to vote every five years, on whether to continue
Pacific Horizon, or wind it up. If the shareholders decide to wind the Company
up, the assets will be sold and you will receive a cash sum in relation to
your shareholding. The next vote will be held at the Annual General Meeting in
2026. You can find up to date performance information about Pacific Horizon on
the Pacific Horizon page of the Managers' website at pacifichorizon.co.uk
(http://www.pacifichorizon.co.uk/) . Neither the contents of the Managers'
website nor the contents of any website accessible from hyperlinks on the
Managers' website (or any other website) is incorporated into, or forms part
of, this announcement
3 March 2023
For further information please contact:
Anzelm Cydzik, Baillie Gifford & Co
Tel: 0131 275 2000
Jonathan Atkins, Director, Four Communications
Tel: 0203 920 0555 or 07872 495396
- ends -
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