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 2024
The following is the unaudited
Interim Financial Report for the six months to 31 January 2024
which was approved by the Board on 13 March 2024.
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 (being
an indication of important events that have occurred during the
first six months of the financial year, their impact on the
Financial Statements and a description of the principal risks and
uncertainties for the remaining six months of the financial 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
13 March 2024
Summary of unaudited
results
|
31 January
2024
|
31 July
2023
(audited)
|
% change
|
Shareholders' funds*
|
£547.6m
|
£580.4m
|
|
Net asset value per ordinary
share*
|
603.43p
|
637.18p
|
(5.3)
|
Share price
|
537.00p
|
586.00p
|
(8.4)
|
MSCI All Country Asia ex Japan Index
(in sterling terms)†#
|
890.9
|
969.1
|
(8.1)
|
Discount‡
|
(11.0%)
|
(8.0%)
|
|
Active share‡
|
85%
|
82%
|
|
|
|
|
|
|
Six months
to
31 January
2024
|
Six months
to
31 January
2023
|
|
Revenue earnings per ordinary
share
|
0.59p
|
0.25p
|
|
|
|
|
|
|
Six months
to
31 January
2024
|
Year to
31 July
2023
|
|
Total returns#‡
|
|
|
|
Net asset value per ordinary
share
|
(4.8%)
|
(3.6%)
|
|
Share price
|
(7.8%)
|
(8.9%)
|
|
MSCI All Country Asia ex Japan Index
(in sterling terms)†
|
(7.3%)
|
0.8%
|
|
|
Six months to 31 January
2024
|
Year to 31 July
2023
|
Period's high and low
|
High
|
Low
|
High
|
Low
|
Net asset value per ordinary
share*
|
642.81p
|
579.28p
|
699.18p
|
556.69p
|
Share price
|
590.00p
|
512.00p
|
693.00p
|
523.00p
|
(Discount)/premium‡
|
(7.0%)
|
(13.2%)
|
2.7%
|
(11.7%)
|
* 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/LSEG 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
Over the six-month reporting period,
share price performance for Asian stock markets was disappointing
with the comparative index down 7.3% in sterling terms, led by
significant weakness in China. The Company's NAV performed somewhat
better, falling by a more modest 4.8%, with the portfolio's Indian
and Vietnamese holdings performing strongly. However, the Company's
share price declined 7.8%, as the share price discount to NAV
expanded from 8% to 11%. The Company bought back 335,775 shares
which are held in treasury.
There was a significant dispersion
of geographic returns across the region, with the worst performing
market indices, China and Hong Kong, both falling approximately
20%, while the best performing markets, India and Taiwan, rose
approximately 16% and 8% respectively. The portfolio was generally
well positioned in this environment, with India our largest country
position (35% absolute and +16 percentage points ('pp') relative to
the comparative index. By contrast, China (23% absolute and -10pp
relative) and Hong Kong (+2% absolute and -4pp relative) were among
our most substantial underweights.
By sector, the exposure of the
portfolio remains similar to last year, with significant positions
in both cyclical growth, particularly Indian real estate and
materials, and secular growth, including technology and consumer
companies.
Chinese holdings continued to
perform poorly as a result of relatively slow economic growth
coupled with weak investor sentiment. These factors have especially
impacted private sector consumer and technology companies, which
the portfolio is biased towards. While we are cognisant of the
questions around Chinese economic growth and geopolitics, many of
these are world-class growth businesses now trading on single-digit
earnings multiples.
By contrast, Indian and Vietnamese
holdings benefited from much stronger economies and renewed
enthusiasm by both domestic and foreign investors. Vietnam's
structural growth outlook continues to remain strong and valuations
are still undemanding. In India, expectations in some sectors, for
instance consumer discretionary and staples, appear to have run
ahead of fundamentals and we are reviewing our positions
accordingly. However, we are mainly exposed to sectors where
valuations look reasonable and the multi-decade growth prospects
means there is still significant upside potential, including real
estate, banking and logistics.
We remain extremely positive on the
long-term outlook. 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 strongly believe that the best
way to benefit from this outlook is by investing in the best growth
companies in the region.
Review
The past couple of years have seen
Asian markets hampered by several major headwinds, notably the
strongest US dollar in decades, fears of recessions in western
markets and armed conflicts in Europe and the Middle East. Despite
these, there has been no Asian crisis, quite the opposite. Asian
economies have remained resilient and are generally growing far
faster than most western economies. This is a remarkable change
from the Asian economies of old, when such a recent move in the US
dollar alone would have been enough to spark a major economic
crisis across the region.
We have previously articulated in
detail the reasons for these changed fortunes. To summarise: Asian
economies are far better positioned than in the past, especially
when compared to developed markets; they have managed their
economies more prudently, without printing money and have
maintained sensible real interest rates for many years.
Combining this favourable
macro-economic position with Asia's structurally faster growth
rates and valuations at multi-year lows relative to developed
markets, the obvious question is why haven't Asian markets
performed better?
The first reason is timing. Several
of the headwinds facing Asia, most importantly the strength of the
US dollar, are yet to subside. Judging precisely when these might
turn is difficult. However, with inflation peaking in the west, US
interest rates likely to fall sometime in the next 18 months, US
and European government spending and indebtedness continuing to
soar, Asian economies will become increasingly more
attractive.
The second issue continues to be
China. A year ago, the stock market looked set to embrace China's
reopening: Covid-19 was put in the rear-view mirror, the consumer
was expected to bounce back, regulation of big tech was abating,
Beijing was rolling out measures to restore confidence in the
property sector and Biden's meeting with Xi in Bali gave hopes of a
thawing in geopolitical tensions.
Instead, China continues to
underperform, with an almost unprecedented third year of market
falls and the MSCI China index down nearly 60% from its peak in
early 2021. What went wrong? The consumer, largely shell-shocked
from Covid-19 lockdowns and witnessing challenges in the property
sector, has been significantly more cautious than envisaged. In
turn, the private sector, with a weaker domestic economy and still
cautious from the memory of regulatory headwinds, has been slow to
invest and employ.
Despite these issues, we continue to
believe there are compelling investment opportunities in China .
Firstly, valuations are extreme with many world class companies
trading on low single digit multiples and others even below the
cash on their balance sheet.
Secondly, the macro situation is not
as dire as these valuations suggest. We are aware of many of the
questions surrounding local government finance vehicles, GDP growth
rates, demographics and much else. However, this is a US $17tr
economy, with a relatively strong balance sheet and considerable
fiscal, monetary and policy room to support the economy which it is
starting to do.
Longer term, however, China faces
two key challenges. The first is geopolitics; tensions with the US
and her allies appear unlikely to significantly improve. Our
analysis would suggest much of this is out of China's hands with
the direction of US policy already set irrespective of who becomes
the next US president.
China can likely cope with much of
the friction this brings with specific areas including
semiconductors, artificial intelligence and advanced automation
benefiting from China's desire to build its own domestic
capabilities. While it is necessary to be selective in these
sectors, our holdings in companies such as Silergy (semiconductors)
and Baidu Inc (online search and artificial intelligence), both of
which were added to over the period, should be significant
beneficiaries of these trends.
The second issue is arguably more
important: how do Xi and the Chinese Communist Party want the
economy to operate over the next decade and, specifically, what
role will the private sector be allowed to play? The answer to
these has become less clear, making longer term assumptions more
difficult.
We made several modest changes to
the portfolio's exposure to Chinese holdings. In addition to
Silergy and Baidu Inc (as mentioned above), we added to unlisted
ByteDance, owner of Douyin and TikTok, the world's most popular
short form video apps. We also completed the purchase of
MicroConnect, a private company, which finances small and medium
sized Chinese businesses. These purchases were funded from the
sales of other Chinese companies, including a handful of internet
businesses, for example Meituan and Dada Nexus. We also sold both
of our Chinese green technology businesses, LONGi and Wuxi Lead,
where competition was significantly more intensive than
expected.
Despite the sales and purchases
roughly matching, market movements in China took the portfolio's
absolute China exposure down from 34% to 23% over the
period.
India has been the complete opposite
to China. The business-friendly reforms of the Modi government have
led to a robust economy and a surge of foreign investment. The
result has been the region's most buoyant stock market, which has
taken our Indian exposure from 24% to 35% over the period, making
it both the portfolio's largest absolute and relative (+16pp)
country position.
We remain enthused on the long-term
outlook for the country but acknowledge that valuations are
beginning to look stretched in certain areas, particularly in the
consumer sector and in many small and mid-cap companies.
Nevertheless, we continue to find attractive opportunities and are
exposed to areas where we believe there is considerable upside.
Indian real estate is our largest exposure (10% of net assets) and
benefits from house prices being the most affordable they have been
in the past few decades, combined with a dramatic consolidation in
the industry over the past five years. We also have large positions
in Indian autos (Tata Motors), industrials (Skipper and Ramkrishna
Forgings), where India is benefiting from its first major capex
cycle in years, and the burgeoning internet sector through our
holding in Delhivery (ecommerce delivery) and the unlisted
Dailyhunt (social media).
We continue to believe Vietnam
remains the best structural growth story of any Asian economy
driven by its successful export manufacturing base. In May 2023, we
and the Board visited companies in Vietnam to test this belief.
With most share prices still below the market peak back in 2022,
they appear to offer compelling value. We added to the holdings in
Mobile World, the country's largest electronics retailer, which is
also rapidly creating the country's leading grocery chain, and FPT,
Vietnam's leading technology firm.
As at period end, the Company held
five private companies, representing 8.4% of total assets, and the
Company was ungeared over the period.
Performance
We are long-term investors, running
a high conviction growth portfolio that is index agnostic.
Performance will be volatile and occasional underperformance is to
be expected. The portfolio has generated significant value for
shareholders over the past five years, the timescale on which we
believe tends to reflect performance more accurately, though over
more recent shorter periods, results have been weaker.
Over the six months to 31 January
2024, the Company's NAV fell by 4.8%, while the share price fell by
7.8%. The comparative index declined 7.3% in sterling terms, all
figures total return.
India was the most significant
contributor to portfolio performance, adding 710bp. This was led by
our Indian real estate companies, as they benefited from the first
property upcycle in the country for more than a decade. Prestige
Estates was the best performing stock in the portfolio, adding
180bp, as presales grew nearly 90% year over year. Our other
property related names, Indiabulls Real Estate, Phoenix Mills and
Lemon Tree Hotels, added a further 290bp between them. Our Indian
industrial holdings, Ramkrishna Forgings (manufacturer) and Skipper
(power transmission infrastructure), were the second biggest
contributors, rising 36% and 53% respectively as infrastructure
spending continued to pick up across the country.
We also had a recovery in a few of
our online-related companies in India, with the share price of both
Delhivery (ecommence delivery) and Policybazaar (online insurance
comparison site) rebounding from their early 2023 lows. Delhivery
experienced a strong resumption in growth, from what we always
believed was a post covid cyclical lull and turned
profitable.
Vietnam and Hong Kong both added
around 80bps. The Hong Kong market fell 18% over the period and our
significant underweight position (-4pp relative) benefited
performance. Conversely, Vietnam was a significant overweight (+9pp
relative) and performance was led by our bank holdings HDBank and
Military Commercial Joint Stock Bank.
Several of the semiconductor
holdings performed well, including EO Technics, MediaTek and Koh
Young, however their contribution was offset by our single largest
detractor to performance coming from our significant underweight to
TSMC (-6.4pp relative).
By country, China was the worst
performing country detracting 180bp from portfolio performance.
Here, our holding in Li-Ning was the biggest detractor, with the
share price falling 64% as the company announced issues with its
inventory management. After consulting with the company and many of
its distributors, we do not believe this is an issue that will
damage the brand and growth should resume over the coming 12
months. Other notable laggards were: JD.com, which continues to
feel competitive pressure in the ecommerce space; Dada Nexus, which
carries out logistics for JD.com; and the insurance company Ping An
where the market was concerned about potential financial regulation
and the company's exposure to the property market.
Conclusion
We remain extremely positive on the
long-term outlook for the region. The rise of the Asian middle
class, accelerated by technology and innovation, continues to be
one of the most powerful investment opportunities of the coming
decade. We are enthused by the number of exciting growth companies
we can buy that are exposed to these themes, many of which are now
trading on historically low valuations. Combined with what seem
brighter macro-economic conditions across Asia compared to
developed markets, we believe looking east remains firmly the right
course of action.
The principal risks and
uncertainties facing the Company are set out in note 13 of this
report.
Baillie Gifford & Co
Limited
Managers and Secretaries
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 group at Baillie Gifford, which takes advice from an
independent third party (S&P Global). The valuations group is
independent from the investment team, with all voting members being
from different operational areas of the firm, and the investment
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. During stable market conditions, and
assuming all else is equal, each investment would be valued twice
in a six month period. For our investment trusts, the prices are
also reviewed twice per year by the respective investment trust
boards and are subject to the scrutiny of external auditors in the
annual audit process.
Beyond the regular cycle, the
valuations team 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 meaningful changes to the valuation of
comparable public companies. 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.
The valuations team also monitors
relevant market indices on a weekly basis and updates valuations in
a manner consistent with our external valuer's (S&P Global)
most recent valuation report where appropriate. Continued periods
of market volatility has meant that valuations continue to be
reviewed much more frequently, in some instances resulting in a
further valuation movement. The data below quantifies the
revaluations carried out during the six months to 31 January 2024,
however doesn't reflect the ongoing monitoring of the private
investment portfolio that hasn't resulted in a change in
valuation.
Pacific Horizon Investment Trust PLC*
|
Instruments held
|
7
|
Revaluations performed
|
19
|
Percentage of portfolio revalued up
to 2 times
|
28.6%
|
Percentage of portfolio revalued 3+
times
|
71.4%
|
* Data reflecting period 1 August
2023 to 31 January 2024 to align with the Company's reporting
period end.
Despite a general improvement in
sentiment, continued volatility in some public markets has tempered
valuation recovery. The average movement in company valuations and
share prices across the portfolio are shown below.
|
Average movement in
investee company valuation
|
Average movement
in investee
share price
|
Instruments
valued*
|
(8.8%)
|
(0.7%)
|
* Data reflecting period 1 August
2023 to 31 January 2024 to align with the Company's reporting
period end.
List of investments
At 31 January 2024
(unaudited)
Name
|
Geography
|
Business
|
Value
£'000
|
% of total
assets*
|
Samsung Electronics
|
South Korea
|
Memory, phones and electronic
components manufacturer
|
37,123
|
6.8
|
Dailyhunt (VerSe Innovation)
Series I Preferred U
|
India
|
News aggregator
application
|
17,956
|
3.3
|
Dailyhunt (VerSe Innovation)
Series Equity U
|
India
|
News aggregator
application
|
3,585
|
0.7
|
Dailyhunt (VerSe Innovation)
Series J Preferred U
|
India
|
News aggregator
application
|
2,431
|
0.4
|
|
|
|
23,972
|
4.4
|
Ramkrishna Forgings
|
India
|
Auto parts manufacturer
|
23,029
|
4.2
|
Tata Motors
|
India
|
Automobile manufacturer
|
21,939
|
4.0
|
Delhivery P
|
India
|
Logistics and courier services
provider
|
20,732
|
3.8
|
Indiabulls Real Estate
|
India
|
Domestic and commercial real estate
provider
|
16,989
|
3.1
|
EO Technics
|
South Korea
|
Manufacturer and distributor of
semiconductor laser markers
|
16,106
|
2.9
|
Prestige Estate Projects
|
India
|
Owner and operator of residential
real estate properties
|
15,341
|
2.8
|
Zijin Mining Group
|
China
|
Gold and copper miner
|
14,527
|
2.7
|
ByteDance Series E-1
Preferred U
|
China
|
Social media
|
14,314
|
2.6
|
Reliance Industries
|
India
|
Petrochemical company
|
13,885
|
2.5
|
Bank Rakyat
|
Indonesia
|
Consumer bank
|
13,329
|
2.4
|
Phoenix Mills
|
India
|
Commercial property
manager
|
13,240
|
2.4
|
Lemon Tree Hotels
|
India
|
Owner and operator of a chain of
hotels and resorts
|
12,982
|
2.4
|
Ping An Insurance
|
China
|
Life insurance provider
|
12,542
|
2.3
|
Accton Technology
Corporation
|
Taiwan
|
Server network equipment
manufacturer
|
11,985
|
2.2
|
HDBank
|
Vietnam
|
Consumer bank
|
11,729
|
2.1
|
SK hynix
|
South Korea
|
Semiconductor
manufacturer
|
10,359
|
1.9
|
Baidu Inc
|
China
|
Internet provider
|
10,279
|
1.9
|
MMG
|
China
|
Copper miner
|
9,954
|
1.8
|
Skipper
|
India
|
Transmission and distribution
structures provider
|
9,744
|
1.8
|
MediaTek
|
Taiwan
|
Electronic component
manufacturer
|
8,676
|
1.6
|
Jio Financial Services
|
India
|
Financial services
business
|
8,497
|
1.6
|
Hoa Phat Group
|
Vietnam
|
Steel and related products
manufacturer
|
7,873
|
1.4
|
MicroConnect U
|
Hong Kong
|
SME financing exchange
|
7,853
|
1.4
|
Midea Group A shares
|
China A
|
Household appliance
manufacturer
|
7,842
|
1.4
|
Silergy
|
Taiwan
|
Semiconductor
manufacturer
|
7,766
|
1.4
|
Alibaba Group
|
China
|
Online and mobile
commerce
|
7,571
|
1.4
|
Samsung Engineering
|
South Korea
|
Construction
|
7,445
|
1.4
|
TSMC
|
Taiwan
|
Semiconductor
manufacturer
|
7,295
|
1.3
|
Policybazaar
|
India
|
Online financial services
platform
|
6,817
|
1.2
|
JD.com
|
China
|
Online mobile commerce
|
6,797
|
1.2
|
Kaspi.kz
|
Khazakstan
|
Banking, ecommerce and payments
platform
|
6,632
|
1.2
|
Sea ADR
|
Singapore
|
Internet gaming and
ecommerce
|
6,612
|
1.2
|
Zhejiang Supor Co A
Shares
|
China A
|
Manufacturer of cookware and home
appliance products
|
6,358
|
1.2
|
Koh Young Technology
|
South Korea
|
3D inspection machine
manufacturer
|
6,297
|
1.2
|
KE Holdings
|
China
|
Real estate platform
|
5,727
|
1.0
|
KE Holdings ADR
|
China
|
Real estate platform
|
538
|
0.1
|
|
|
|
6,265
|
1.1
|
Military Commercial Joint Stock
Bank
|
Vietnam
|
Retail and corporate bank
|
6,176
|
1.1
|
PT AKR Corporindo Tbk
|
Indonesia
|
Logistics and supply
chain
|
5,840
|
1.1
|
Mobile World Investment
Corporation
|
Vietnam
|
Electronic and grocery
retailer
|
5,784
|
1.1
|
Vietnam Enterprise Investments
Limited
|
Vietnam
|
Investment fund
|
5,765
|
1.1
|
Merdeka Copper Gold
|
Indonesia
|
Miner
|
5,608
|
1.0
|
FPT Corporation
|
Vietnam
|
IT service provider
|
5,575
|
1.0
|
TISCO Financial Group
|
Thailand
|
Retail and corporate bank
|
5,244
|
1.0
|
China Oilfield Services
Limited
|
China
|
Oilfield services
|
4,841
|
0.9
|
Jadestone Energy
|
Singapore
|
Oil and gas explorer and
producer
|
4,801
|
0.9
|
HDFC Bank
|
India
|
Mortgage provider
|
4,318
|
0.8
|
Coupang
|
South Korea
|
Ecommerce business
|
4,278
|
0.8
|
Li-Ning
|
China
|
Sportswear apparel
supplier
|
4,095
|
0.7
|
SDI Corporation
|
Taiwan
|
Stationery and lead frames for
semiconductors manufacturer
|
4,050
|
0.7
|
CIMC Vehicles Group
|
China
|
Manufacturer of trailers and
trucks
|
3,687
|
0.7
|
Ningbo Peacebird Fashion
A shares
|
China A
|
Fashion
|
3,349
|
0.6
|
Precision Tsugami
|
China
|
Industrial machinery
manufacturer
|
3,020
|
0.6
|
Ping An Bank
A shares
|
China A
|
Consumer bank
|
2,909
|
0.5
|
Vinh Hoan Corporation
|
Vietnam
|
Food producer
|
2,884
|
0.5
|
KHVatec Company
|
South Korea
|
Electronic component and device
manufacturer
|
2,858
|
0.5
|
Geely Automobile
|
China
|
Automobile manufacturer
|
2,823
|
0.5
|
PropertyGuru
|
Singapore
|
Real estate platform
|
2,521
|
0.5
|
Kingdee
|
China
|
Enterprise management software
distributor
|
2,339
|
0.4
|
Hyundai Mipo Dockyard
|
South Korea
|
Shipbuilder
|
2,329
|
0.4
|
AirTac International
Group
|
Taiwan
|
Pneumatic components
manufacturer
|
2,293
|
0.4
|
Techtronic Industries
|
Hong Kong
|
Power tool manufacturer
|
1,988
|
0.4
|
Binh Minh Plastics
Joint Stock Company
|
Vietnam
|
Plastic piping
manufacturer
|
1,276
|
0.3
|
Brilliance China
Automotive
|
China
|
Minibus and automotive components
manufacturer
|
1,090
|
0.2
|
Chalice
|
China
|
Miner
|
620
|
0.1
|
Chime Biologics U
|
China
|
Biopharmaceutical company
|
49
|
0.0
|
Eden Biologics U
|
Taiwan
|
Biopharmaceutical company
|
6
|
0.0
|
Total investments
|
|
|
553,112
|
101.0
|
Net
liquid assets*
|
|
|
(5,522)
|
(1.0)
|
Total assets
|
|
|
547,590
|
100.0
|
|
Listed
equities
%
|
Private
company investments†
%
|
Net liquid
assets*
%
|
Total
assets
%
|
31 January
2024
|
92.6
|
8.4
|
(1.0)
|
100.0
|
31 July 2023
|
93.6
|
5.1
|
1.3
|
100.0
|
Figures represent percentage of
total assets.
* For a definition of terms see
Glossary of terms and Alternative Performance Measures at the end
of this announcement.
† Includes holdings in ordinary
shares and preference shares.
U Denotes private
company investment.
P Denotes
listed security previously held in the portfolio as a private
company investment.
Distribution of total assets*
(unaudited)
Geographical analysis at 31 January
2024
Geographical
|
% at
31 January
2024
|
% at
31 July
2023
|
India
|
35.0
|
23.9
|
China
|
19.1
|
28.5
|
South Korea
|
15.9
|
18.3
|
Vietnam
|
8.6
|
6.7
|
Taiwan
|
7.6
|
5.7
|
Indonesia
|
4.5
|
5.7
|
China A
|
3.7
|
5.2
|
Singapore
|
2.6
|
3.5
|
Other
|
2.2
|
0.9
|
Hong Kong
|
1.8
|
0.3
|
Net liquid assets
|
(1.0)
|
1.3
|
Sectoral analysis at 31 January
2024
Sectoral
|
% at
31 January
2024
|
% at
31 July
2023
|
Information technology
|
21.9
|
22.0
|
Financials
|
16.7
|
12.9
|
Consumer discretionary
|
15.5
|
20.3
|
Materials
|
11.2
|
12.5
|
Communication services
|
10.1
|
8.6
|
Real estate
|
9.9
|
6.9
|
Industrials
|
9.8
|
10.6
|
Energy
|
5.4
|
4.3
|
Consumer staples
|
0.5
|
0.5
|
Healthcare
|
0.0
|
0.1
|
Net liquid assets
|
(1.0)
|
1.3
|
* 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 2024
|
For
the six months ended 31 January 2023
|
For
the year ended 31 July 2023 (audited)
|
|
Revenue
£'000
|
Capital
£'000
|
Total
£'000
|
Revenue
£'000
|
Capital
£'000
|
Total
£'000
|
Revenue
£'000
|
Capital
£'000
|
Total
£'000
|
Losses on investments
|
-
|
(22,963)
|
(22,963)
|
-
|
(545)
|
(545)
|
-
|
(25,404)
|
(25,404)
|
Currency losses
|
-
|
(145)
|
(145)
|
-
|
(575)
|
(575)
|
-
|
(791)
|
(791)
|
Income
|
3,067
|
-
|
3,067
|
2,821
|
-
|
2,821
|
9,580
|
-
|
9,580
|
Investment management fee (note
3)
|
(1,628)
|
-
|
(1,628)
|
(1,712)
|
-
|
(1,712)
|
(3,419)
|
-
|
(3,419)
|
Other administrative
expenses
|
(368)
|
-
|
(368)
|
(405)
|
-
|
(405)
|
(762)
|
-
|
(762)
|
Net return before finance costs and
taxation
|
1,071
|
(23,108)
|
(22,037)
|
704
|
(1,120)
|
(416)
|
5,399
|
(26,195)
|
(20,796)
|
Finance costs of
borrowings
|
(202)
|
-
|
(202)
|
(201)
|
-
|
(201)
|
(403)
|
-
|
(403)
|
Net return before
taxation
|
869
|
(23,108)
|
(22,239)
|
503
|
(1,120)
|
(617)
|
4,996
|
(26,195)
|
(21,199)
|
Tax (note 4)
|
(328)
|
(5,424)
|
(5,752)
|
(274)
|
1,578
|
1,304
|
(830)
|
(1,256)
|
(2,086)
|
Net return after taxation
|
541
|
(28,532)
|
(27,991)
|
229
|
458
|
687
|
4,166
|
(27,451)
|
(23,285)
|
Net return per ordinary share
(note
5)
|
0.59p
|
(3.38p)
|
(30.79)
|
0.25p
|
0.50p
|
0.75p
|
4.56p
|
(30.05p)
|
(25.49p)
|
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 after taxation is both the
profit and total comprehensive income for the period.
Balance sheet (unaudited)
|
Notes
|
At 31
January
2024
£'000
|
At 31 July
2023
(audited)
£'000
|
Fixed assets
|
|
|
|
Investments held at fair value
through profit or loss
|
7
|
553,112
|
572,748
|
Current assets
|
|
|
|
Debtors
|
|
982
|
420
|
Cash and cash equivalents
|
|
3,716
|
12,442
|
|
|
4,698
|
12,862
|
Creditors
|
|
|
|
Amounts falling due within one
year:
|
|
|
|
Other creditors and
accruals
|
|
(1,348)
|
(1,163)
|
Net
current assets
|
|
3,350
|
11,699
|
Total assets less current liabilities
|
|
556,462
|
584,447
|
Creditors
|
|
|
|
Amounts falling due after more than
one year:
|
|
|
|
Provision for tax
liability
|
9
|
(8,872)
|
(4,092)
|
Net
assets
|
|
547,590
|
580,355
|
Capital and reserves
|
|
|
|
Share capital
|
10
|
9,208
|
9,208
|
Share premium account
|
|
254,120
|
254,120
|
Capital redemption
reserve
|
|
20,367
|
20,367
|
Capital reserve
|
|
257,431
|
287,783
|
Revenue reserve
|
|
6,464
|
8,877
|
Shareholders' funds
|
|
547,590
|
580,355
|
Net
asset value per ordinary share
|
|
603.43p
|
637.18p
|
Ordinary shares in issue
|
10
|
90,746,174
|
91,081,949
|
Statement of changes in
equity
For
the six months ended 31 January 2024
|
Share capital
£'000
|
Share premium account
£'000
|
Capital redemption reserve
£'000
|
Capital reserve*
£'000
|
Revenue reserve
£'000
|
Shareholders' funds
£'000
|
Shareholders' funds at 1 August
2023
|
9,208
|
254,120
|
20,367
|
287,783
|
8,877
|
580,355
|
Net return after taxation
|
-
|
-
|
-
|
(28,532)
|
541
|
(27,991)
|
Ordinary shares bought back into
treasury (note 10)
|
-
|
-
|
-
|
(1,820 )
|
-
|
(1,820)
|
Ordinary shares sold from treasury
(note 10)
|
-
|
-
|
-
|
-
|
-
|
-
|
Dividends paid during the period
(note 6)
|
-
|
-
|
-
|
-
|
(2,954)
|
(2,954)
|
Shareholders' funds at 31 January
2024
|
9,208
|
254,120
|
20,367
|
257,431
|
6,464
|
547,590
|
For
the six months ended 31 January 2023
|
Share capital
£'000
|
Share premium account
£'000
|
Capital redemption reserve
£'000
|
Capital reserve*
£'000
|
Revenue reserve
£'000
|
Shareholders' funds
£'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 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
|
* The
capital reserve balance at 31 January 2024 includes investment
holding gains on investments of £85,284,000 (31 January 2023 -
gains of £103,733,000).
Condensed cash flow statement
(unaudited)
|
Six months to
31 January 2024
£'000
|
Six months to
31 January 2023
£'000
|
Net return before
taxation
|
(22,239)
|
(617)
|
Adjustments to reconcile company profit before tax to net cash
flow from operating activities
|
|
|
Net losses on investments
|
22,963
|
545
|
Currency losses
|
145
|
575
|
Finance costs of
borrowings
|
202
|
201
|
Other capital movements
|
|
|
Changes in debtors
|
(395)
|
158
|
Changes in creditors
|
(121)
|
(60)
|
Taxation
|
|
|
Overseas withholding tax
|
(259)
|
(269)
|
Indian CGT paid on
transactions
|
(644)
|
-
|
Cash from operations*
|
(348)
|
533
|
Interest paid
|
(201)
|
(201)
|
Net
cash (outflow)/inflow from operating activities
|
(549)
|
332
|
Cash flows from investing activities
|
|
|
Acquisitions of
investments
|
(52,638)
|
(58,477)
|
Disposals of investments
|
49,305
|
63,217
|
Net
cash (outflow)/inflow from investing activities
|
(3,333)
|
4,740
|
Cash flows from financing activities
|
|
|
Ordinary shares bought back into
treasury
|
(1,745)
|
(3,940)
|
Ordinary shares sold from
treasury
|
-
|
172
|
Proceeds from ordinary shares
issued
|
-
|
-
|
Borrowings drawn down
|
-
|
-
|
Borrowings repaid
|
-
|
-
|
Equity dividends paid
|
(2,954)
|
(2,745)
|
Net
cash outflow from financing activities
|
(4,699)
|
(6,513)
|
Decrease in cash and cash equivalents
|
(8,581)
|
(1,441)
|
Exchange movements
|
(145)
|
(575)
|
Cash and cash equivalents at start
of period
|
12,442
|
5,399
|
Cash and cash equivalents at end of period
|
3,716
|
3,383
|
* Cash from
operations includes dividends received of £2,601,000 (31 January
2023 - £2,682,000) and interest received of £91,000 (31 January
2023 - £118,000).
Notes to the Financial
Statements
1. Basis of Accounting
The condensed Financial Statements
for the six months to 31 January 2024 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 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 2024 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 2023.
Going Concern
The Directors have considered the
Company's principal risks and uncertainties, as set out in note 13
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 due to
macroeconomic and geopolitical concerns, but it does not believe
the Company's going concern 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. Financial information
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 2023 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. Investment manager
Baillie Gifford & Co Limited, a
wholly owned subsidiary of Baillie Gifford & Co, has been
appointed by the Company as its Alternative Investment Fund
Managers and Company Secretaries. Baillie Gifford & Co Limited
has delegated portfolio 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
2024
£'000
|
Six months
to
31 January
2023
£'000
|
Year to 31
July
2023
(audited)
£'000
|
Revenue return after
taxation
|
541
|
229
|
4,166
|
Capital return after
taxation
|
(28,532)
|
458
|
(27,451)
|
Total net return
|
(27,991)
|
687
|
(23,285)
|
Net
return per ordinary share
|
|
|
|
Revenue return after
taxation
|
0.59p
|
0.25p
|
4.56p
|
Capital return after
taxation
|
(31.38p)
|
0.50p
|
(30.05p)
|
Total net return per ordinary share
|
(30.79p)
|
0.75p
|
(25.49p)
|
Weighted average number of ordinary shares in
issue
|
90,921,470
|
91,439,600
|
91,364,427
|
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 2024
£'000
|
Six months to
31 January 2023
£'000
|
Year to 31 July 2023
(audited)
£'000
|
Amounts recognised as distributions in the
period:
Previous year's final dividend of
3.25p
(31 July 2022 - 3.00p), paid 30
November 2023
|
2,954
|
2,745
|
2,745
|
Amounts paid and payable in respect of the
period:
Final dividend (31 July 2023 -
3.25p),
|
-
|
-
|
2,954
|
No interim dividend has been
declared in respect of the current period.
7. Fixed assets - investments
The Company's investments in
securities are financial assets held at fair value through profit
or loss. The fair value hierarchy used to analyse the fair values
of financial assets 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 as
follows:
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
As
at 31 January 2024
|
Level 1
£'000
|
Level 2
£'000
|
Level 3
£'000
|
Total
£'000
|
Listed equities
|
506,918
|
-
|
-
|
506,918
|
Unlisted equities
|
-
|
-
|
11,493
|
11,493
|
Unlisted preference
shares†
|
-
|
-
|
34,701
|
34,701
|
Total financial asset investments
|
506,918
|
-
|
46,194
|
553,112
|
As
at 31 July 2023 (audited)
|
Level 1
£'000
|
Level 2
£'000
|
Level 3
£'000
|
Total
£'000
|
Listed equities*
|
542,048
|
1,273
|
-
|
543,321
|
Unlisted equities
|
-
|
-
|
2,555
|
2,555
|
Unlisted preference
shares†
|
-
|
-
|
26,872
|
26,872
|
Total financial asset investments
|
542,048
|
1,273
|
29,427
|
572,748
|
* During the period, Brilliance
China listed on the Hong Kong stock exchange having de-listed on 31
March 2021 and there was a demerger with Reliance Industries, where
shares of Jio Financial Services were acquired but the company did
not list until 21 August 2023.
† The investments in preference
shares 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. The fair value of suspended investments is the last traded
price, adjusted for the estimated impact on the business of the
suspension. 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 valuation process recognises also, as stated in the
IPEV Guidelines, that the price of a recent investment may be an
appropriate starting point for estimating fair value, however it
should be evaluated using the techniques described
above.
8. Financial liabilities
The Company has a £100 million
multi-currency revolving 3 year credit facility with The Royal Bank
of Scotland International Limited, with a non-utilisation rate of
0.4%, which expires on 14 March 2025. At 31 January 2024 there were
no outstanding drawings (31 July 2023 - no outstanding
drawings).
9. Provision for tax liability
The tax liability provision at 31
January 2024 of £8,872,000 (31 July 2023 - £4,092,000) 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
2024
|
As at 31 July 2023
(audited)
|
|
Number
|
£'000
|
Number
|
£'000
|
Allotted, called up and fully paid ordinary
shares of 10p each in issue
|
90,746,174
|
9,075
|
91,081,949
|
9,108
|
Treasury shares of 10p each
|
1,328,787
|
133
|
993,012
|
100
|
|
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 accordance
with authorities granted at the last Annual General Meeting in
November 2023, 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. In the six months to 31 January 2024, the
Company issued no ordinary shares, (year to 31 July 2023 - 200,000
ordinary shares from treasury, at a premium to net asset value,
with a nominal value £20,000, representing 0.2% of the issued share
capital at 31 July 2022, raising net proceeds of £1,376,000). At 31
January 2024 the Company had authority to allot or sell from
treasury 9,104,695 ordinary shares without application of
pre-emption rights.
In the six months to 31 January
2024, 335,775 shares, representing 0.4% of the issued share capital
as at 31 July 2023, were bought back at a total cost of £1,820,000
and held in treasury (year to 31 July 2023 - 979,012 ordinary
shares, representing 1.1% of the issued share capital at 31 July
2022, were bought back at a total cost of £5,541,000 and held in
treasury). As at 31 January 2024, the Company had authority
remaining to buy back 13,530,019 ordinary shares on an ad hoc
basis.
Over the period from 31 January 2024
to 12 March 2024 the Company has issued no further shares from
treasury and 24,073 shares were bought back.
11. Transaction costs on
purchases
During the period, transaction costs
on purchases amounted to £86,000 (31 January 2023 - £84,000; 31
July 2023 - £188,000) and transaction costs on sales amounted to
£92,000 (31 January 2023 - £143,480; 31 July 2023 -
£188,000).
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, political and
associated economic risk, discount risk, regulatory risk, custody
and depositary risk, operational risk, leverage risk, climate and
governance risk, cyber security risk and emerging risks. An
explanation of these risks and how they are managed is set out on
pages 47 to 51 of the Company's Annual Report and Financial
Statements for the year to 31 July 2023 which is available on the
Company's website: 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‡
on or around 22 March 2024.
‡ 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
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('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
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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
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contract (including under an indemnity), in tort (including
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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
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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
31 January
2024
£'000
|
As
at
31 July 2023
(audited)
£'000
|
Net asset value per ordinary
share
|
(a)
|
603.43p
|
637.18p
|
Share price
|
(b)
|
537.00p
|
586.00p
|
Discount
|
((b) - (a)) ÷ (a)
|
(11.0%)
|
(8.0%)
|
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
31 January 2024
|
As
at
31 July 2023
|
|
|
NAV
|
Share price
|
NAV
|
Share
price
|
Closing NAV per share/share
price
|
(a)
|
603.43p
|
537.00p
|
637.18p
|
586.00p
|
Dividend adjustment
factor*
|
(b)
|
1.0051
|
1.0057
|
1.0056
|
1.0057
|
Adjusted closing NAV per share/share price
|
(c)
= (a) x (b)
|
606.51p
|
540.06p
|
640.75p
|
589.34p
|
Opening NAV per share/share
price
|
(d)
|
637.18p
|
586.00p
|
664.65p
|
647.00p
|
Total return
|
(c) ÷ (d) -1
|
(4.8%)
|
(7.8%)
|
(3.6%)
|
(8.9%)
|
*The dividend adjustment factor is
calculated on the assumption that the final dividend of 3.25p (31
July 2022 - 3.00p) 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)
Turnover is calculated as the
minimum of purchases and sales in a month, divided by the average
market value of the portfolio, summed to get rolling 12 month
turnover data.
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.
Gearing is borrowings at book less
cash and brokers' balances expressed as a percentage of
shareholders' funds.
|
|
As
at
31 January
2024
£'000
|
As
at
31
July
2023
(audited)
£'000
|
Borrowings (at book
value)
|
|
-
|
-
|
Less: cash and cash
equivalents
|
|
(3,716)
|
(12,442)
|
Less: sales for subsequent
settlement
|
|
(281)
|
-
|
Add: purchases for subsequent
settlement
|
|
276
|
-
|
Adjusted borrowings
|
(a)
|
(3,721)
|
(12,442)
|
Shareholders' funds
|
(b)
|
547,590
|
580,355
|
Gearing: (a) as a percentage of
(b)
|
|
(0.7%)
|
(2%)
|
Gross gearing is the Company's
borrowings expressed as a percentage of shareholders'
funds.
|
|
As at
31 January
2024
£'000
|
As at 31 July
2023
(audited)
£'000
|
Borrowings (at book
value)
|
(a)
|
-
|
-
|
Shareholders' funds
|
(b)
|
547,590
|
580,355
|
Gross 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.
Unlisted (private) 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 2024 the Company had total assets of £547.6 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.
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.
13 March 2024
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 -