OverviewThe value of investments and any income from them may go down as well as up and you or your client may not get back the amount originally invested.
Pacific Horizon aims to achieve capital growth through investment in the Asia-Pacific region (excluding Japan) and the Indian Sub-continent.
About the Trust
Dealing in the Trust’s stock commenced in 1989. Its investment policy at the time was to achieve capital growth via investing in certain ‘Horizon’ economies of Asia and the Far East whose stock markets were in the process of opening up to greater inflows of foreign investment. As a consequence, investment in Japan, Australia, New Zealand, Hong Kong, Singapore and Malaysia was excluded.
In 1992, at the end of the Trust’s financial year, the Board decided to widen the investment objectives so as to embrace the whole of Asia-Pacific except Japan. In addition, Baillie Gifford and Co was appointed as managers and secretaries, replacing Tyndall International (Asia) Limited. Consequently, management of the Trust moved from Hong Kong to Edinburgh.
In 1996, following a period of strong performance and subsequent demand, the Trust held a ‘C’ share issue in order to improve liquidity in the market for the Trust’s shares. The amount raised was approximately £21.5m, almost doubling the Trust’s assets.
In 2006, the Trust’s investment remit was broadened to include the Indian Sub-continent. The Trust has a 5-yearly continuation vote. In 2016, shareholders voted to extend the life of the Trust for a further five years.
The investment trusts managed by Baillie Gifford & Co Limited are listed UK companies. The value of their shares, and any income from them, can fall as well as rise and investors may not get back the amount invested.
Pacific Horizon is an investment company within the meaning of section 833 of the Companies Act 2006. Registered in England. Registered number: 2342193. Registered office: Computershare Investor Services PLC, Moor House, 120 London Wall, London, EC2Y 5ET.
Meet the Trust ManagersEwan Markson-Brown - Manager
Ewan graduated MA in Politics, Philosophy and Economics from Oxford University in 2000. He previously worked at Merrill Lynch and Newton as an Asia Pacific portfolio manager. Prior to joining Baillie Gifford in 2013, he was a Senior Vice President in Emerging Markets at PIMCO. Ewan is an Investment Manager in the Emerging Markets Equity Team.Roderick Snell - Deputy Manager
Roderick graduated BSc (Hons) in Biological Sciences in Medical Biology from the University of Edinburgh in 2006. He joined Baillie Gifford in the same year and worked in the UK and European Equity Teams before joining the Emerging Markets Equity Team where he is an Investment Manager.
Meet the DirectorsJean Matterson - Chairman
Jean Matterson was appointed a Director in 2003 and became Chairman of the Board on 25 October 2010, she is also Chairman of the Nomination Committee. She is a partner of Rossie House Investment Management which specialises in private client portfolio management with a particular emphasis on investment trusts. She was previously with Stewart Ivory & Co for 20 years, as an investment manager and a director, and is a director of BlackRock Throgmorton Trust PLC and Capital Gearing Trust P.L.C.Edward Creasy - Director
Edward Creasy was appointed a Director in 2010. He is Chairman of the Audit Committee and is the Senior Independent Director. He is the former chief executive officer of Kiln plc, a non-life insurer quoted on the London Stock Exchange until purchased by Tokio Marine Nichido Fire Insurance Co in March 2008. Until January 2011 he was chairman of Kiln Group and chairman of RJ Kiln & Co. Limited. He is chairman of Charles Taylor PLC, deputy chairman of W.R. Berkley Syndicate Management, a director of W.R. Berkley Insurance (Europe), Ltd and is also a member of Lloyd’s of London’s Supervisory and Review Committee.Elisabeth Scott - Director
Elisabeth Scott was appointed a Director in 2011. She was managing director and country head of Schroder Investment Management (Hong Kong) Limited from 2005 to 2008 and chair of the Hong Kong Investment Funds Association from 2005 to 2007. She worked in the Hong Kong asset management industry from 1992 to 2008. She is a director of Fidelity China Special Situations PLC, Dunedin Income Growth Investment Trust PLC and Allianz Technology Trust plc.Angus Macpherson - Director
Angus Macpherson was appointed a Director in 2017. He is Chief Executive of Noble and Company (UK) Limited, an independent Scottish corporate finance business. He is currently chairman of JP Morgan Elect PLC and of Henderson Diversified Income Trust plc. He is also a member of the Scottish Government’s Financial Services Advisory Board. He was based in Asia between 1995 and 2004 in Singapore and Hong Kong, latterly as Head of Capital Markets and Financing for Merrill Lynch for Asia.
The Company’s portfolio is increasingly focused on the effect of technological change on economies and existing businesses.
ObjectiveThe Company’s objective is to invest in the Asia-Pacific region (excluding Japan) and in the Indian Sub-continent in order to achieve capital growth. The Company is prepared to move freely between the markets of the region as opportunities for growth vary. The portfolio will normally consist entirely of quoted securities.
Pacific Horizon aims to achieve capital growth principally through investment in companies listed on the stock markets of the Asia-Pacific region (excluding Japan) and the Indian Sub-continent. The Company may also invest in companies based in the region and in investment funds specialising in the region or particular countries or sectors within it even if they are listed elsewhere. The maximum permitted investment in any one company is 15% of gross assets.
The portfolio contains companies which the Managers have identified as offering the potential for long term capital appreciation, irrespective of whether they comprise part of any index. The portfolio is actively managed and will normally consist entirely of quoted equity securities although unlisted companies, fixed interest holdings or other non equity investments, may be held. The Company is also permitted to invest in other pooled vehicles (general, country and sector specific) that invest in the markets of the region.
In constructing the equity portfolio a spread of risk is created through diversification and the portfolio will typically consist of between 40 and 120 holdings. Although sector concentration and the thematic characteristics of the portfolio are carefully monitored, no maximum limits to stock or sector weights have been set by the Board except as imposed from time to time by banking covenants on borrowings.
The Company may use derivatives which will be principally, but not exclusively, for the purpose of reducing, transferring or eliminating investment risk in its investments. These typically take the form of index futures, index options and currency forward transactions.
The Company has a maximum equity gearing level of 50% of shareholders’ funds but, in the absence of exceptional market conditions, equity gearing is typically less than 25% of shareholders’ funds. Borrowings are invested in securities when it is considered that investment opportunities merit the Company taking a geared position.
The Company is also permitted to be less than fully invested. Cash and equity gearing levels, and the extent of gearing, are discussed by the Board and Managers at every Board meeting.