TIDMPHI
RNS Number : 4129Q
Pacific Horizon Investment Tst PLC
17 October 2023
Pacific Horizon Investment Trust PLC ('PHI')
Legal Entity Identifier: VLGEI9B8R0REWKB0LN95
Regulated Information Classification: Annual Financial and Audit
Reports
Annual Report and Financial Statements
Further to the preliminary statement of audited annual results
announced to the Stock Exchange on 6 October 2023, Pacific Horizon
Investment Trust PLC ("the Company") announces that the Company's
Annual Report and Financial Statements for the year ended 31 July
2023, including the Notice of Annual General Meeting, has today
been posted to shareholders and submitted electronically to the
National Storage Mechanism where it will shortly be available for
inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
It is also available on the Company page of the Baillie Gifford
website at: pacifichorizon.co.uk (as is the preliminary statement
of audited annual results announced by the Company on 6 October
2023).
Statement of Directors' Responsibilities in respect of the
Annual Report and the Financial Statements
Each of the Directors, whose names and functions are listed
within the Directors and Managers section of the Annual Report and
Financial Statements, confirm that, to the best of their
knowledge:
3/4 the Financial Statements, which have been prepared in
accordance with applicable law and United Kingdom Accounting
Standards (United Kingdom Generally Accepted Accounting Practice)
including FRS 102 'The Financial Reporting Standard applicable in
the UK and Republic of Ireland' give a true and fair view of the
assets, liabilities, financial position and net return of the
Company;
3/4 the Annual Report and Financial Statements taken as a whole,
is fair, balanced and understandable and provides the information
necessary for shareholders to assess the Company's performance,
business model and strategy; and
3/4 the Strategic Report includes a fair review of the
development and performance of the business and the position of the
Company, together with a description of the principal risks and
uncertainties that it faces (as also set out below).
Principal and Emerging Risks relating to the Company
As explained on page 71 of the Annual Report and Financial
Statements there is a process for identifying, evaluating and
managing the risks faced by the Company on a regular basis. The
Directors have carried out a robust assessment of the principal and
emerging risks facing the Company, including those that would
threaten its business model, future performance, regulatory
compliance, solvency or liquidity. There have been no material
changes to the principal risks during the year. A description of
these risks and how they are being managed or mitigated is set out
below.
The Board considers the heightened macroeconomic and
geopolitical concerns to be factors which exacerbate existing
risks, rather than being new emerging risks, within the context of
an investment trust. Their impact is considered within the relevant
risks .
What is the risk? How is it managed? Current assessment
of risk
--------------------------------------- -------------------------------- -----------------------------
Financial Risk: The Company's The Board has, in particular, This risk is increasing
assets consist mainly of considered the impact due to increased
listed securities (93.6% of heightened market market volatility
of the investment portfolio) volatility during recent as a result of heightened
and its principal and emerging months due to macroeconomic macroeconomic and
financial risks are therefore factors such as higher geopolitical concerns.
market related and include inflation and interest
market risk (comprising currency rates and geopolitical
risk, interest rate risk concerns. In order
and other price risk), liquidity to oversee this risk,
risk and credit risk. An the Board considers
explanation of those risks at each meeting various
and how they are managed metrics including regional
is contained in note 18 to and industrial sector
the Financial Statements weightings, top and
on pages 104 to 111. bottom stock contributors
to performance along
with sales and purchases
of investments. Individual
investments are discussed
with the portfolio
manager together with
general views on the
various investment
markets and sectors.
A strategy session
is held annually.
--------------------------------------- -------------------------------- -----------------------------
What is the risk? How is it managed? Current assessment
of risk
--------------------------------------- -------------------------------- -----------------------------
Investment strategy risk: To mitigate this risk, This risk is increasing
Pursuit of an investment the Board regularly as the market's
strategy to fulfil the Company's reviews and monitors appetite for growth
objective which the market the Company's objective stocks, typically
perceives to be unattractive and investment policy held by the Company,
or inappropriate, or the and strategy, the investment has decreased during
ineffective implementation portfolio and its performance, the recent period
of an attractive or appropriate the level of discount/premium of heightened macroeconomic
strategy, may lead to reduced to net asset value and geopolitical
returns for shareholders at which the shares concern.
and, as a result, a decreased trade and movements
demand for the Company's in the share register
shares. This may lead to and raises any matters
the Company's shares trading of concern with the
at a widening discount to Managers.
their net asset value.
--------------------------------------- -------------------------------- -----------------------------
What is the risk? How is it managed? Current assessment
of risk
--------------------------------------- -------------------------------- -----------------------------
Political and associated Political developments This risk is increasing
economic financial risk: are closely monitored due to the ongoing
The Board is of the view and considered by the Russia-Ukraine military
that political change in Board, for example conflict and tensions
areas in which the Company in respect of tensions between China and
invests or may invest may between the USA and the US.
have financial consequences China regarding tariffs
for the Company. and unrest in Hong
Kong and repercussions
from the Russian invasion
of Ukraine. It monitors
portfolio diversification
by investee companies'
primary location, to
mitigate against the
negative impact of
military action or
trade barriers. The
Board believes that
the Company's portfolio,
which predominantly
comprises companies
listed on the stock
markets of the Asia
Pacific region (excluding
Japan) and the Indian
Sub-continent, partially
helps to mitigate such
political risks.
--------------------------------------- -------------------------------- -----------------------------
What is the risk? How is it managed? Current assessment
of risk
--------------------------------------- -------------------------------- -----------------------------
Discount risk: The discount/premium To manage this risk, The Company's discount
at which the Company's shares the Board monitors widened during the
trade relative to its net the level of discount/premium year.
asset value can change. The at which the shares
risk of a widening discount trade and the Company
is that it may undermine has authority to buy
investor confidence in the back its existing shares,
Company. when deemed by the
Board to be in the
best interests of the
Company and its shareholders.
--------------------------------------- -------------------------------- -----------------------------
What is the risk? How is it managed? Current assessment
of risk
--------------------------------------- -------------------------------- -----------------------------
Regulatory risk: Failure To mitigate this risk, All control procedures
to comply with applicable Baillie Gifford's Business are working effectively.
legal and regulatory requirements Risk, Internal Audit There have been
such as the tax rules for and Compliance Departments no material regulatory
investment trust companies, provide regular reports changes that have
the FCA Listing Rules and to the Audit Committee impacted the Company
the Companies Act could lead on Baillie Gifford's during the year.
to suspension of the Company's monitoring programmes.
Stock Exchange listing, financial Major regulatory change
penalties, a qualified audit could impose disproportionate
report or the Company being compliance burdens
subject to tax on capital on the Company. In
gains. such circumstances
representation is made
to ensure that the
special circumstances
of investment trusts
are recognised. Shareholder
documents and announcements,
including the Company's
published Interim and
Annual Report and Financial
Statements, are subject
to stringent review
processes and procedures
are in place to ensure
adherence to the Transparency
Directive and the Market
Abuse Directive with
reference to inside
information.
--------------------------------------- -------------------------------- -----------------------------
What is the risk? How is it managed? Current assessment
of risk
--------------------------------------- -------------------------------- -----------------------------
Custody and depositary risk: To mitigate this risk, All control procedures
Safe custody of the Company's the Audit Committee are working effectively.
assets may be compromised receives six-monthly
through control failures reports from the Depositary
by the Depositary, including confirming safe custody
breaches of cyber security. of the Company's assets
held by the Custodian.
Cash and portfolio
holdings are independently
reconciled to the Custodian's
records by the Managers
who also agree uncertificated
private portfolio holdings
to confirmations from
investee companies.
The Custodian's assured
internal controls reports
are reviewed by Baillie
Gifford's Business
Risk Department and
a summary of the key
points is reported
to the Audit Committee
and any concerns investigated.
--------------------------------------- -------------------------------- -----------------------------
What is the risk? How is it managed? Current assessment
of risk
--------------------------------------- -------------------------------- -----------------------------
Operational risk: Failure To mitigate this risk, All control procedures
of Baillie Gifford's systems Baillie Gifford has are working effectively.
or those of other third party a comprehensive business
service providers could lead continuity plan which
to an inability to provide facilitates continued
accurate reporting and monitoring operation of the business
or a misappropriation of in the event of a service
assets. disruption. The Audit
Committee reviews Baillie
Gifford's Report on
Internal Controls and
reports by other key
third party providers
are reviewed by Baillie
Gifford on behalf of
the Board and a summary
of the key points is
reported to the Audit
Committee and any concerns
investigated. The other
key third party service
providers have not
experienced significant
operational difficulties
affecting their respective
services to the Company.
--------------------------------------- -------------------------------- -----------------------------
What is the risk? How is it managed? Current assessment
of risk
--------------------------------------- -------------------------------- -----------------------------
Leverage risk: The Company To mitigate this risk, The Company's revolving
may borrow money for investment all borrowings require loan facility remains
purposes. If the investments the prior approval undrawn.
fall in value, any borrowings of the Board and leverage
will magnify the impact of levels are discussed
this loss. If borrowing facilities by the Board and Managers
are not renewed, the Company at every meeting. Covenant
may have to sell investments levels are monitored
to repay borrowings. The regularly. The majority
Company can also make use of the Company's investments
of derivative contracts. are in quoted securities
that are readily realisable.
Further information
on leverage can be
found on page 118 and
the Glossary of Terms
and Alternative Performance
Measures on pages 123
and 124 of the Annual
Report and Financial
Statements.
--------------------------------------- -------------------------------- -----------------------------
What is the risk? How is it managed? Current assessment
of risk
--------------------------------------- -------------------------------- -----------------------------
Climate and governance risk: This is mitigated by The Investment Manager
Perceived problems on environmental, the Managers' strong continues to employ
social and governance ('ESG') ESG stewardship and strong ESG stewardship
matters in an investee company engagement policies and engagement policies.
could lead to that company's which are available
shares being less attractive to view on the Managers'
to investors, adversely affecting website, bailliegifford.com,
its share price, in addition and which have been
to potential valuation issues reviewed and endorsed
arising from any direct impact by the Company, and
of the failure to address which have been fully
the ESG weakness on the operations integrated into the
or management of the investee investment process.
company (for example in the Due diligence includes
event of an industrial accident assessment of the risks
or spillage). Repeated failure inherent in climate
by the Managers to identify change (see page 55
ESG weaknesses in investee of the Annual Report
companies could lead to the and Financial Statements).
Company's own shares being
less attractive to investors,
adversely affecting its own
share price.
--------------------------------------- -------------------------------- -----------------------------
What is the risk? How is it managed? Current assessment
of risk
--------------------------------------- -------------------------------- -----------------------------
Cyber security risk: A cyber To mitigate this risk, All control procedures
attack on Baillie Gifford's the Audit Committee are working effectively.
network or that of a third reviews Reports on
party service provider could Internal Controls published
impact the confidentiality, by Baillie Gifford
integrity or availability and other third party
of data and systems. service providers.
Cyber security due
diligence is performed
by Baillie Gifford
on third party service
providers which includes
a review of crisis
management and business
continuity frameworks.
--------------------------------------- -------------------------------- -----------------------------
What is the risk? How is it managed? Current assessment
of risk
--------------------------------------- -------------------------------- -----------------------------
Emerging risk: As explained This is mitigated by No change in emerging
on page 71 of the Annual the Managers' close risks.
Report and Financial Statements, links to the investee
the Board has regular discussions companies and their
on principal risks and uncertainties, ability to ask questions
including any risks which on contingency plans.
are not an immediate threat The Managers believe
but could arise in the longer the impact of such
term. The Board considers events may be to slow
that the key emerging risks growth rather than
arise from the interconnectedness to invalidate the investment
of global economies and the rationale over the
related exposure of the investment long term.
portfolio to external and
emerging threats such as
escalating geopolitical tensions,
cyber security risks including
developing AI and quantum
computing capabilities, and
new coronavirus variants
or similar public health
threats.
--------------------------------------- -------------------------------- -----------------------------
Increasing risk Decreasing risk No change
Baillie Gifford & Co Limited
Company Secretaries
17 October 2023
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
ACSGPGCGUUPWGGM
(END) Dow Jones Newswires
October 17, 2023 07:15 ET (11:15 GMT)
Pacific Horizon Investment (LSE:PHI)
Gráfica de Acción Histórica
De Abr 2024 a May 2024
Pacific Horizon Investment (LSE:PHI)
Gráfica de Acción Histórica
De May 2023 a May 2024
