Annual Report and
Financial Statements
Pacific Horizon
Investment Trust
PLC
31 July 2025
Notes
None of the views expressed in this document should be construed
asadvice to buy or sell a particular investment.
Investment trusts are UK public listed companies and as such comply
with the requirements of the Financial Conduct Authority. They are not
authorised or regulated by the Financial Conduct Authority.
Pacific Horizon Investment Trust PLC currently conducts its affairs,
and intends to continue to conduct its affairs, so that the Company’s
ordinary shares can qualify to be considered as a mainstream
investment product and can be recommended by Independent
Financial Advisers to ordinary retail investors in accordance with the
rules of the Financial Conduct Authority in relation to non-mainstream
investment products.
This document is important and requires your immediate attention.
If you reside in the United Kingdom and you are in any doubt as to
the action you should take, you should consult your stockbroker,
bank manager, solicitor, accountant or other Independent Financial
Adviser authorised under the Financial Services and Markets Act 2000
immediately. If you are outside the United Kingdom, you should consult
an appropriately authorised financial adviser.
If you have sold or otherwise transferred all of your ordinary shares in
Pacific Horizon Investment Trust PLC, please forward this document,
together with any accompanying documents, but not your personalised
Form of Proxy, as soon as possible to the purchaser or transferee, or to
the stockbroker, bank or other agent through whom the sale or transfer
was or is being effected for delivery to the purchaser or transferee.
Investor Disclosure Document
The UK Alternative Investment Fund Managers Regulations require
certain information to be made available to investors prior to their
making an investment in the Company. The Company’s Investor
Disclosure Document is available for viewing at pacifichorizon.co.uk.
Pacific Horizon Investment Trust PLC
01
Contents
Introduction
Financial highlights 02
An introduction to Pacific Horizon Investment Trust PLC 03
Strategic report
Chairman’s statement 06
Managers’ review 09
Environmental, social and governance engagement 15
Engagement highlights 16
Baillie Gifford stewardship principles 19
Baillie Gifford proxy voting 20
One year summary 21
Five year summary 22
Ten year record 24
Review of investments 26
Portfolio executive summary 30
Baillie Gifford – valuing private companies 34
List of investments 38
Business review 41
Governance report
Directors and management 53
Directors’ report 56
Corporate governance report 62
Audit Committee report 69
Directors’ remuneration report 72
Statement of Directors’ responsibilities 76
Financial report
Independent auditor’s report 79
Income statement 86
Balance sheet 87
Statement of changes in equity 88
Cash flow statement 89
Notes to the Financial Statements 90
Shareholder information
Notice of Annual General Meeting 109
Further shareholder information 114
Communicating with shareholders 116
Sustainable Finance Disclosure Regulation 118
Third party data provider disclaimer 119
Glossary of terms and Alternative Performance Measures 120
Company information 123
Introduction
Annual Report and Financial Statements 2025
02
Financial highlights
Year to 31 July 2025
Share price
6.4%
NAV
8.3%
Comparative index
†
17.1%
Source: LSEG/Baillie Gifford and relevant underlying index providers. See disclaimer on page 119. All figures are stated on a total return basis.
* Alternative Performance Measure – see Glossary of terms and Alternative Performance Measures on pages 120 and 121.
†
The comparative index is the MSCI All Country Asia ex Japan Index (in sterling terms).
Past performance is not a guide to future performance.
Total returns
*
One year total return
*
performance
(figures rebased to 100 at 31 July 2024)
Discount
*
(figures plotted on a monthly basis)
2025
2024
JA SONDJFMAMJJ
● NAV total return
● Share price
total return
● Comparative index
†
total return
85
90
95
100
105
110
115
120
2025
2024
JA SONDJFMAMJJ
● Discount
(20%
)
(15%)
(10%)
(5%)
0%
Pacific Horizon Investment Trust PLC
03
Growth: embracing
growth, disruption and
innovation.
Pacific Horizon’s objective
is to invest in the Asia-
Pacific region (excluding
Japan) and in the Indian
Sub-continent in order to
achieve capital growth.
An introduction to
Pacific Horizon
Investment Trust PLC
Our philosophy
Long-term
This matters. Stock prices are wildly unpredictable in
the short-term. Ultimately, however, prices do reflect
the earnings capability of a company. So when we
find a company that has the potential to grow its
profits significantly over time, we must invest with
the patience that allows a good decision to prove
itsworth.
Growth
We have found the most persistent source of alpha
to be those companies that can grow their profits
faster than the market, in hard currency terms, over
the longterm. This trend persists irrespective of
starting valuation.
Active
We would observe three particular features which
emphasise the need for active management in the
Asia-Pacific region (excluding Japan). Firstly, roughly
a quarter of the index still consists of State Owned
Enterprises, whose interests are not always aligned
with minority shareholders. Secondly, some Asian
countries grow sporadically, so there will be times
when we want to take advantage of the tailwind
provided by economic cycles in certain countries
and times when we want to limit our exposure.
Lastly, positive returns in the asset class are driven
by a very small number of companies that do
exceptionally well. Being highly selective is imperative.
Introduction
Annual Report and Financial Statements 2025
04
Our structure
Pacific Horizon is an investment trust but how does
this structure benefit our shareholders?
Underpinning everything is a genuine commitment
to low costs. We believe our duty to shareholders
is to limit fees. Put simply, lower charges directly
translate into shareholders keeping more of the
returns generated from their investment. Our
scale and commitment to low costs enables us to
offer genuine value for money. Although there are
benefits to the investment trust structure, there are
also risks involved. Please see pacifichorizon.co.uk
for the specific risks associated with investing in
theCompany.
Our
structure
Company status
• Just like other public
companies, Pacific
Horizon can borrow
money to make additional
investments. This financial
gearing can amplify
investment returns.
• Our shareholders have
rights, and we seek their
approval, via votes, if we
want to make significant
changes.
• A board of directors looks
after the interests of our
shareholders. They meet
several times a year and
are responsible for various
things, such as overseeing
performance.
Democratising access
tounlisted(private)
companies
• We offer shareholders
liquid access to private
companies – a distinct
offering in today’s market.
• We own companies
uninterrupted on their
journey from private to
public – shareholders
benefit from long-term
compounded returns.
• Access to private
companies is dependent
upon relationships
and reputation – our
shareholders benefit
from the access we enjoy
but without paying fees
normally associated with
private equity funds.
Accessibility
• Listed on the London
Stock Exchange, Pacific
Horizon provides intraday
liquid access, and
our shares are openly
tradeable for investors
from around the world.
• There are no performance
fees or minimum
investment restrictions.
• Shareholders could
benefit from simplified tax
reporting when compared
with other structures that
hold private companies.
Permanent capital
• The closed-ended
structure provides a pool
of permanent capital.
Unlike open-ended funds,
the portfolio remains
intact and is not impacted
by shareholder demand.
• We have the freedom to
invest for the long term
and hold assets that can
be harder to buy and
sell – such as private
companies.
• Our extended time
horizons are matched
byour companies.
Thisalignment underpins
the prospect of enduring
relationships.
This strategic report, which
includes pages 5 to 51 and
incorporates the Chairman’s
statement, has been prepared in
accordance with the Companies
Act 2006.
Strategic
report
Strategic report
Annual Report and Financial Statements 2025
06
Chairman’s
statement
Performance
Over the year to 31 July 2025, the Company’s net
asset value (‘NAV’) per share total return was 8.3%,
compared to a 17.1% increase in the total return of
the MSCI All Country Asia ex Japan Index in sterling
terms. The underperformance of the portfolio was
broadly uniform across the year. The share price
rose by 6.4% and the discount ended the period
at 9.5% having been 7.8% a year earlier. The
Company’s annual ongoing charge was 0.75%
compared to 0.74% for the year to 31 July 2024.
The notable positive contributors to the portfolio’s
relative performance were the holdings in SEA Ltd,
a Singaporean internet gaming and ecommerce
business, private company Bytedance, a Chinese
social media business, and Accton Technology, a
Taiwanese server network equipment manufacturer.
The notable detractors to relative performance were
the holdings in private company VerSe Innovation,
an Indian news aggregator application business,
Samsung Electronics, a South Korean memory,
phones and electronic components manufacturer,
and Equinox India Developments, an Indian real
estate business. The Managers’ Review, on pages9
to 13, provides fuller comment on the drivers
of returns, as well as thoughts on the investee
companies and their prospects.
Over the five years to 31 July 2025, the Company’s
NAV and share price total return were 50.8%
and 30.8% respectively, whereas the Company’s
comparative index returned 30.4% in sterling terms
during the same period.
Roger Yates
Chairman
Appointed 2024
Source: Baillie Gifford/LSEG and relevant underlying index providers. See disclaimer on page 119.
For a definition of terms see Glossary of terms and Alternative Performance Measures on pages 120 and 121.
Past performance is not a guide to future performance.
Pacific Horizon Investment Trust PLC
07
Performance-Related Tender
Mindful of more recent performance and the level of
the discount at which the Company’s shares were
trading, on 16 April 2025, following conversations
with stakeholders, the Company announced its
intention to introduce a five-year performance-
related conditional tender for up to 25% of
the Company’s issued share capital (excluding
treasuryshares).
The Tender Offer will be conditional on the
Company’s NAV total return underperforming against
its reference index, currently the MSCI All Country
Asia Ex Japan Index total return in sterling, over the
five-year period from close of business on 31 March
2025 to close of business on 31 March 2030.
The Discount, Share Buybacks and Issuance
Over the course of the Company’s last financial
year, the discount averaged 11.9% and in response,
the Company increased the quantum of share
buybacks. On 16 April it was announced that it is
the current Board’s ambition that the Company’s
discount be maintained in single digits, in normal
market conditions, on a sustained basis. Since the
announcement, the discount has averaged 9.7%.
5,008,324 shares, 5.5% of the period’s starting issued
share capital, were bought back for treasury at a cost
of £29.8 million. The buybacks were undertaken at a
weighted average discount of 10.7%. In comparison,
425,198 shares, 0.5% of the period’s starting issued
share capital, were bought back during the equivalent
prior period. Since the financial year end, a further
1,181,983 shares have been bought back for treasury.
At the Company’s Annual General Meeting (‘AGM’)
in November, the Board will be seeking to renew
the annual authority to repurchase up to 14.99%
of the Company’s outstanding shares on an ad hoc
basis, either for cancellation or to be held in treasury.
The Board is also asking shareholders to renew the
existing 10% non-pre-emptive issuance authority. The
authority will also permit the re-issue of any shares
held in treasury, of which there are currently 7,608,517.
Any issuance, be it of new shares or from treasury, will
only be undertaken at a premium to the NAV per share,
so avoiding dilution for existing investors. Issuance at
a premium enhances NAV per share, improves liquidity
in the Company’s shares and spreads the operating
expenses of the Company across a broader base.
Gearing
The Company has a multi-currency revolving credit
facility with the Royal Bank of Scotland International
Limited for up to £60 million. This facility expires in
March 2026 and provides for potential gearing of
10% at present. The Company is currently drawing
£35.8 million, with the portfolio managers having
re-introduced gearing to the portfolio in October
2024 and increased it slightly as their conviction
rose, with net gearing standing at 5% as at period
end (nil as at 31 July 2024).
The Board sets the gearing parameters within which
the portfolio managers are permitted to operate. At
present, the agreed range of equity gearing is minus
15% (holding net cash) to plus 15%.
Strategic report
Annual Report and Financial Statements 2025
08
Earnings and Dividend
Earnings per share this year were 2.34p, a decrease
from the 3.82p per share reported last year due
mainly to the cost of the borrowings. The Board
is recommending that a final dividend of 1.50p
per share be paid (2.65p per share paid in 2024),
subject to shareholder approval at the AGM.
Investors should not invest in this Company if
they require steady or growing income from their
investment as the Company invests in growth stocks
that will typically have little or no yield.
Annual General Meeting
I look forward to meeting shareholders at this year’s
AGM. Unlike prior years, this will take place in
London rather than Edinburgh in the hope that this
will increase the number of shareholders attending.
The AGM will be on Tuesday 25 November 2025 at
1Moorgate Place in London, commencing at 1.00pm.
Light refreshments will be available. If attending,
please endeavour to arrive by 12.45pm to allow time
to register. There will be a presentation from the
portfolio managers who, along with the Directors,
will answer questions from shareholders.
Outlook
Despite near-term market volatility, due largely to
uncertainty regarding US tariff policy and its impact
on global trade and consequences for inflation, the
Board and portfolio managers remain optimistic
about the long term prospects for the portfolio,
which contains a number of world-class businesses.
These tend to be more profitable and more cashflow
generative than the average, making them more
robust to withstand uncertainty. The portfolio also
contains a number of businesses with regional
income streams that are less likely to be impacted
directly by President Trump’s policy making, often
with notable competitive moats. The Managers’
review starting on page 9 provides examples.
Valuations look attractive and the recent headwinds
of a strong US dollar and weak Chinese economic
activity appear to be receding. As I stated last year,
it remains important that our portfolio managers
(and shareholders) can see through the occasional
and perhaps inevitable bouts of volatility in returns.
Assuming that is the case, then the outlook for the
portfolio and the Company is a positive one.
Roger Yates
Chairman
22 September 2025
Pacific Horizon Investment Trust PLC
09
Managers’ review
Source: Baillie Gifford/LSEG and relevant underlying index providers. See disclaimer on page 119.
For a definition of terms see Glossary of terms and Alternative Performance Measures on pages 120 and 121.
Past performance is not a guide to future performance.
Overview
In the year to 31 July 2025, the Company’s net asset
value (‘NAV’) per share total return and the share
price total return were 8.3% and 6.4% respectively.
This compares to a 17.1% increase in the total return
of the MSCI All Country Asia ex Japan Index in
sterlingterms.
Although there were a number of global shocks,
including trade tariffs and tensions in the Middle
East, the macro environment proved supportive for
the region. The US dollar weakened, expectations for
Western rate cuts rose and global growth remained
reasonably firm.
The strength of the region was driven by China and
Hong Kong, both rising nearly 40%. The sharp
reversal in China’s market performance was driven
by a marked shift in government policy, including
decisive economic stimulus beginning in September
2024 and, importantly, a renewed focus on
supporting the private sector.
Conversely, after several extremely strong years, India
was among the weakest markets, falling around 9%.
A combination of high valuations and widespread
earnings disappointments triggered a sharp
correction, particularly in small and mid-cap stocks.
Despite significantly reducing our Indian exposure
over the past 18 months and reinvesting much of
it into China, the portfolio’s relative performance
disappointed. Stock selection in China was the
main detractor; the underweight in Financials and
not owning some of the top-performing technology
companies, including Xiaomi and Alibaba, hurt.
Our small and mid-cap exposure in India also
underperformed.
Positive performance came from stock selection in
Taiwan, driven by the Artificial Intelligence (AI) capex
boom, and Singapore, led by SEA Ltd which rose
131% as its operational performance continued to
exceed market expectations.
Roderick Snell
Portfolio manager
Appointed 2013
Ben Durrant
Deputy portfolio
manager
Appointed 2023
Strategic report
Annual Report and Financial Statements 2025
10
We added significantly to China, most notably
internet platforms such as Meituan and Tencent
Holdings. We also added to Industrials including
CATL, the world’s leading EV battery maker, and
Consumer Discretionary companies such as Haidilao,
the restaurant chain. As a result, China now accounts
for 36.4% of the Company’s NAV, up from 25.8%
at the start of the period, making it our second
largest overweight position (340bps). Funding came
primarily from India, which was reduced from 23.0%
to 14.2%. Smaller additions were made to Vietnam,
which remains our largest active position (910bps).
We remain optimistic about the outlook for
Asia. Macroeconomic fundamentals are strong,
valuations remain low, and sentiment in China is
clearly improving. A weaker US dollar could act as
a further tailwind for the region. At the portfolio
level, our companies are performing well and remain
attractive; on average, our holdings are forecast
to grow earnings by 21.4%, more than double the
comparative index’s 9.2%, while still trading at a
discount to the market. We believe the portfolio is
well placed for what looks like a strong period for
Asianmarkets.
Net gearing was increased from nil to 5% over the
period and 5,008,324 shares were bought back
(2024 – 425,198 shares).
Philosophy
We are growth investors endeavouring to invest
in the top twenty percent of the fastest-growing
companies in Asia. Across the region we have found
the most persistent source of outperformance to be
those companies which can grow their profits faster
than the market, in hard currency terms, over the
long term. This trend persists irrespective of starting
valuations. Our research is singularly focused on
finding those companies whose share prices can at
least double, in sterling terms, on a five-year view
and we expect most of this doubling to come from
earnings growth.
We are particularly interested in three specific and
persistent inefficiencies:
1) Underappreciated growth duration
We believe one of the greatest investment
inefficiencies is in companies with excellent long-
term earnings growth where profits are volatile
from one quarter to the next. The market typically
shows an aversion to such companies, preferring
the predictability of smooth profit generation even if
the long-term growth rate turns out to be a fraction
of that achieved by firms more willing to reinvest
in their business and with greater ambition. This
presents exciting investment opportunities, but it
requires an approach that allows near-term volatility
to beignored. Our holding in TSMC reflects this
investment philosophy.
2) Underappreciated growth pace
The market consistently underestimates the
likelihood of rapid growth. The evidence shows
that most investors cluster around a narrow range
of earnings growth predictions, which can in turn
lead to significant mispricing of companies with the
potential to grow very rapidly. Our process is focused
on finding those companies. By looking further out
and searching for low probability but high impact
growth opportunities, we endeavour to outperform
the broader market. This approach has led us to
investments in SEA Limited and Delhivery.
3) Underappreciated growth surprise
The final significant inefficiency lies in the interaction
between top-down and bottom-up investing. As
investors in Asia, ex Japan, and the Indian Sub-
continent, we do not have the luxury of ignoring
macroeconomics. Purely bottom-up investment
is a path to ruin in a universe where industrial and
economic cycles can dominate investment returns
over multi-year periods. The long-term earnings of
many companies – notably in the financial, materials
and industrial sectors – are determined by exogenous
macro factors beyond their control. This also provides
opportunities.
Pacific Horizon Investment Trust PLC
11
Our analysis shows that while it may pay to invest
in companies that display consistently high levels
of profitability, the strongest returns are to be found
in those companies that transition from poor levels
of profitability to high ones – a ‘growth surprise’. EO
Technics represents this type of opportunity within
our portfolio.
This may seem obvious – rising levels of profitability
are normally accompanied by a re-rating,
thereby providing a two-fold kicker to share price
performance. But identifying the drivers behind this
change is the key and has been a significant source
of outperformance for Pacific Horizon. We accept that
timing these inflection points perfectly is impossible,
but when you have an investment horizon measured
over many years, anticipating the future direction of
travel is possible.
We are agnostic as to the type of growth inefficiency
we are exploiting and will invest wherever we are
finding the best opportunities. At times this will lead
to a concentration in particular sectors or countries,
and at others to a much broader, flatter portfolio, but
growth will always be the common theme.
Pacific
Horizon
MSCI AC
Asia
ex Japan
Index
Historical earnings growth (5 years
trailing compound annual growth to
31 July 2025)
9.0% 5.9%
One year forecast earnings growth
to 31 July 2026
21.4% 9.2%
Estimated p/e ratio for the year to
31July 2026
13.5x 14.1x
Active share* 72.8% n/a
Portfolio turnover* 18.0% n/a
Data as at 31 July 2025, source: Baillie Gifford and MSCI (seedisclaimer
onpage 119).
Review
Asian markets performed strongly over the
year, supported by improving sentiment, a more
favourable macro backdrop and strong earnings
growth. Even with ongoing geopolitical tensions,
tariff debates and conflict in the Middle East,
most economies in the region continued to grow
significantly faster than their developed market
peers. Sound macroeconomic management,
characterised by positive real interest rates and
low inflation, helped cushion the impact of global
shocks, while a softer US dollar and the prospect of
Western interest rate cuts encouraged fresh capital
flows into the region.
China experienced the most dramatic turnaround,
with equities rallying sharply from deeply depressed
levels. This recovery was policy-led, beginning
in September 2024 when the authorities acted
decisively to stabilise growth through measures to
support the property and equity markets. Equally
important was a renewed commitment to the private
sector, a clear shift in tone after several years in
which it had been out of favour.
The investment case remains compelling. Valuations
for many high-quality companies are still low, while
households have accumulated more than $10 trillion
in savings since the Covid-19 pandemic. At the same
time, operational performance has been robust,
particularly in the internet sector: KE Holdings
(property platform) is growing earnings by more than
70%, while ByteDance (unlisted owner of Douyin
and TikTok) is increasing earnings by over 30%
and could generate annual profits well in excess
of $40 billion by year end. These businesses are
highly cash-generative and most have committed to
returning capital to shareholders through substantial
buybacks and dividends.
Against this backdrop, we increased exposure to
China, focusing on companies with durable market
leadership and strong growth runways. New holdings
include Kanzhun, one of the country’s leading online
recruitment platforms, which has grown profits at
an annual rate of 72% over the past three years
despite a challenging economic environment. We
also purchased Meituan, the dominant online food
delivery platform, and added to existing positions in
Tencent Holdings and Pinduoduo Inc.
In the industrials sector, we introduced two
new holdings. CATL, the world’s largest EV
battery maker, combines unmatched scale with
technological leadership to maintain a formidable
competitive advantage. Sanhua Intelligent Controls,
a global leader in refrigeration valves, is expanding
into robotics and is working with Tesla’s Optimus
humanoid robot project to supply actuators. We
also initiated a small position in Pony.ai, which
we believe is China’s leading developer of Level 4
self-driving systems for both passenger cars and
commercialvehicles.
* For a definition of terms see Glossary of terms and Alternative Performance Measures on pages 120 and 121.
Strategic report
Annual Report and Financial Statements 2025
12
Meanwhile, India, one of the best performing
markets in recent years, experienced a notable
correction. Valuations had become stretched,
with many companies trading at decade-high
multiples and more than half of those we monitor
missed earnings estimates. The pullback was most
pronounced in the mid and small-cap sectors. While
the macro outlook for the country remains good, this
backdrop led us to continue reducing our exposure,
which fell from 23.0% to 14.2% (- 490bps relative)
over the period.
Sales included Jio Financial Services and
Ramkrishna Forgings, while we trimmed Indian
property exposure through reductions in Prestige
Estates, Equinox Developments and Lemon
TreeHotels.
North Asia remained the epicentre of the global
semiconductor manufacturing industry, with Taiwan
and Korea benefiting most directly from the ongoing
build-out of artificial intelligence infrastructure.
Taiwan’s TSMC reinforced its leadership in
advanced manufacturing nodes and chip packaging,
cementing its role as the sole supplier of the
most sophisticated AI processors. TSMC ended
the period as our largest single position (10.4%).
Complementary holdings in Taiwan, including Accton
Technology, a maker of high-speed networking
equipment, and semiconductor designer MediaTek,
also performed well as global AI investments
continued to grow.
In our assessment, Vietnam remains the best
structural growth story in Asia, underpinned by its
successful export manufacturing base and, more
recently, a powerful turnaround in the domestic
cycle. Political stability has returned under General
Secretary To Lam, who consolidated power and
embarked on a bold pro-growth agenda. Approvals
for infrastructure and property projects have
restarted, bank lending quotas have been raised,
public investment is set to rise by 50% in 2025, and
the property cycle is turning.
While tariffs are a potential headwind, the country
signed a favourable deal with the USA and any
weakness is likely to be offset by a rapidly expanding
domestic economy. We modestly increased exposure
with additions to Military Commercial Joint Stock
Bank, alongside a new purchase in Khang Dien
Housing, one of the country’s leading property
developers.
Tariffs and industrial policy are now an enduring
feature of the global trade environment. While they
remain a source of uncertainty, we view them as
more likely to redirect supply chains than dismantle
them. The cost advantages enjoyed by much of
Asia, particularly in labour-intensive manufacturing,
make large-scale reshoring to developed markets
uneconomic in many sectors. We expect more
regionalisation through “China-plus-one” strategies
(ie not being solely reliant on China) and deeper
intra-Asian supply chains, creating opportunities
for both competitive exporters and well-positioned
domestic market leaders.
Overall, the number of names in the portfolio
increased from 59 to 65 in the year to 31 July 2025.
Private companies, of which there were five in the
portfolio as of 31 July 2025, accounted for 6.1% of
the portfolio.
Performance
Over the year to 31 July 2025, the Company’s NAV
per share total return was 8.3%, compared to a
17.1% increase in the MSCI All Country Asia ex
Japan Index in sterling terms. The share price rose
by 6.4% as the discount to NAV widened modestly.
Relative performance was therefore disappointing,
with aggregate stock selection in China and India
the most significant detractors.
China was the single largest drag on relative returns,
despite being the portfolio’s biggest absolute
overweight. While Chinese equities rebounded
nearly 40% over the period, a large part of the
recovery was concentrated in a handful of large
financials and technology companies where we
wereunderweight.
We have had a long-standing underweight to
Chinese banks, due to concerns over margin
pressures, regulatory issues and state control. While
this strategy has been correct long-term, Chinese
financials rose more than 50% in this period as
the government bolstered the economy and the
propertysector.
Pacific Horizon Investment Trust PLC
13
In Information Technology, despite our significant
exposure, the portfolio did not hold Xiaomi (up
more than 200% over the period) or Alibaba
(+47%). Xiaomi has far exceeded our expectations,
reclaiming the number one position in China’s
smartphone market and launching some of the
country’s most impressive electric vehicles. Not
owning the shares has been disappointing, but
given the cyclical nature of smartphones and autos,
and the significant new capacity entering these
industries, we remain cautious. For Alibaba, we
continue to see the company ceding share in its core
e-commerce business and expect its newer ventures,
including cloud infrastructure, to prove highly
competitive with low returns.
India was the second major source of relative
weakness, despite the portfolio being underweight
the market. Our exposure was concentrated in small
and mid-cap companies, particularly in real estate,
which previously delivered exceptional returns
but corrected sharply. The largest single Indian
detractor was our private holding VerSe Innovation.
The company struggled with weak monetisation in
its short-form video business (Josh), which faced
increasing competition from global platforms. At
the same time, the digital advertising market in
India softened, hitting revenue growth, while user
engagement failed to scale as expected.
Korea was a modest detractor, driven primarily by
our large holding in Samsung Electronics (6.0%).
The shares fell heavily in the first half as the
company lost ground in high-bandwidth memory
(HBM), a critical component for artificial intelligence
data centres, to domestic rival SK hynix. However,
Samsung Electronics rebounded in the second half
as the traditional memory cycle turned and the firm
made progress in HBM. Offsetting some of this
weakness, we are significant holders of SK hynix (via
SK Square, its parent company), which benefited
from its leadership in HBM and contributed positively
to performance.
Vietnam, while remaining our largest active country
overweight (910bps), detracted modestly from
relative returns. The market was hit harder than
most by tariff uncertainty, given Vietnam’s large
trade surplus with the US and reliance on exports.
Encouragingly, since the reporting date the
market has outperformed as investors recognised
that exports remain resilient and the domestic
economyrobust.
Taiwan emerged as the portfolio’s best-performing
market, contributing c.150bps to performance,
driven by strong demand for AI infrastructure.
Accton Technology, a manufacturer of data
centre switches, was our top Taiwanese company,
rising 90% on accelerated demand from its key
customer, Amazon. Chroma (testing equipment)
and our core holding in TSMC also delivered strong
performance, reinforcing Taiwan’s central role in the
AI supplychain.
Singapore followed closely, with SEA Ltd, ASEAN’s
leading ecommerce and gaming company, rising
131% and adding c.150bps to performance. The
company has reached an important inflection
point, with Shopee, its ecommerce arm, turning
profitable across ASEAN and in Brazil, well ahead of
expectations. Its gaming division remained resilient,
with Free Fire among the world’s most downloaded
games, while the fintech arm continued to expand
rapidly, with loan customers up more than 60%
year-on-year. These achievements reinforced SEA
Ltd’s position as ASEAN’s leading internet platform.
By sector, Materials was the top contributor to
relative performance, led by strong gains in our
copper holdings MMG and Zijin Mining Group.
Underweights in lower-growth areas such as
Utilities and Consumer Staples also added value,
as both sectors lagged a rising market. In contrast,
Financials and Real Estate were the largest
detractors, reflecting the rally in Chinese banks and
the correction in Indian property names.
In summary, relative performance was disappointing,
reflecting both index concentration in a narrow set of
Chinese financials and technology companies, and
the correction in Indian small and mid-cap names.
While these dynamics weighed on results over the
period, the portfolio holds a broad mix of growth
businesses, from technology leaders to commodity
producers. These companies are forecast to grow
earnings much faster than the index yet still trade at
a discount. Combined with the supportive backdrop
for the region, we believe the portfolio is well
positioned to benefit from what should be a strong
period for Asian markets.
Baillie Gifford & Co
22 September 2025
Strategic report
Annual Report and Financial Statements 2025
14
Pacific Horizon Investment Trust PLC
15
Environmental, social and
governance engagement
Our long-term, active approach to investment is
based on identifying and holding high-quality growth
businesses that enjoy sustainable competitive
advantages in their marketplace.
To identify these kinds of businesses, we often look
beyond current financial performance, undertaking
proprietary research to build up our in-depth
knowledge of an individual company and form a view
of its long-term prospects. Material environmental,
social and governance (‘ESG’) matters which affect
the financial condition or operating performance of
a company, can positively or negatively influence
long-term investment returns. Such issues are
considered throughout the investment process
through research, engagement and voting.
Our approach is guided by our ESG principles:
• Investment process founded on long-term
ownership of growing businesses: we want
to help these companies fulfil their potential
and encourage them to ignore the short-term
pressures of the market.
• Sustainability is central to our analytical task:
businesses engaging in practices that are harmful
to society may be capable of generating attractive
returns in the short term but are unlikely to do so
over the periods we seek to invest.
• We do not believe ‘one size fits all’: ESG
practices need to be assessed on a
case-by-case basis, not reliant on formulaic and
backward-lookingscreens.
• Not seeking ‘perfect’ companies: we prefer to
consider the likely direction of change in otherwise
promising investments and engage accordingly.
Company engagement is key to our process. We
encourage steps to maximise opportunities and
minimise risks where we believe it is material to the
success of the company. Engagement priorities are
set through a combination of a subjective assessment
of the materiality of an issue and our ability to
influence, as well as use of more qualitative inputs
to provide direction. We vote wherever possible and
will vote against management if we believe that its
actions are not in the interests of shareholders.
We are supported by a dedicated emerging markets
ESG analyst and a further 40 analysts who are part of
Baillie Gifford’s wider ESG resource.
By engaging with companies, we seek to build
constructive relationships with them, to better inform
our investment activities and, where necessary, effect
change within our holdings, ultimately with the goal
of achieving better returns for our shareholders. The
three following examples demonstrate our stewardship
approach through constructive, ongoing engagement.
Strategic report
Annual Report and Financial Statements 2025
16
Engagement highlights
Kaspi.kz
Key topics
• Governance fit for purpose
• Sustainable business practices
Overview and objectives
Kaspi plays a critical role in payments and
ecommerce in Kazakhstan. It is the second largest
bank in Kazakhstan in terms of assets, loan volume
and deposit base. If we relied solely on historically
focussed external research, we may overweight risks
and overlook opportunities including significant
social benefits through financial inclusion and
merchant retail. We acknowledge geopolitical and
country risks and have undertaken our own research
to assess sanctions risk, the reputation of key
personnel and controlling shareholders, and examine
how Kaspi manages risk over and above regulation.
Discussion
In September 2024, two investors travelled
to Kazakhstan for a week-long visit and met
with several of Kaspi’s senior leaders and other
stakeholders. This visit followed additional research
we carried out to examine sanctions risk, governance
mechanisms, and Kaspi’s KYC (know your customer)
controls. Other financial services companies in
Kazakhstan were all supportive of Kaspi’s relatively
low risk position within the local banking sector.
Conversations with regulators and politicians
highlighted that they similarly see Kaspi as relatively
low risk from a macroprudential perspective and
that the company’s services contribute positively to
broader Kazakh society. The Agency of the Republic
of Kazakhstan for Regulation and Development
of Financial Markets emphasised the systematic
importance of Kaspi for payments and consumer
lending, and there are high levels of transparency
and compliance with United States, European Union
and other foreign country requirements. Kaspi has
a digital onboarding process enhanced by facial
recognition technology, ensuring all customers
are registered in Kazakhstan with multiple data
sources and IDs. This system balances speed and
innovation with control without relying on off-the-
shelf solutions. The company’s business focuses
on domestic transactions between domestic users.
Kaspi’s products are designed with transaction
limits that prevent their use when moving large
sums of money. The limits are approximately $500
per transaction and $2,000 per month. This design
makes its product unsuitable for breaking sanctions,
as it cannot perform SWIFT transfers or open
dollar or sterling accounts. Kaspi has embraced
digital innovation, moving from cash to non-cash
transactions, with 85 per cent of transactions now
being non-cash. The open API framework and
the emphasis on keeping fees competitive while
ensuring merchant and customer satisfaction were
also discussed.
Outcome
The detailed insights into Kaspi’s KYC processes
and additional independent research findings
provided a more in-depth understanding of the
company’s governance and controls in place. While
we recognise the geopolitical and country risk, our
own in-depth research gives us the confidence to
invest in the opportunities and direction of travel.
The trip provided further insights and assurances
into Kaspi’s corporate governance and controls in
place. Our discussion shed light on Kaspi’s digital
transformation.
Pacific Horizon Investment Trust PLC
17
Zijin Mining Group
Key topics
• Sustainable business practices
Overview and objectives
Zijin Mining Group is one of China’s largest producers
of gold, copper and zinc, materials which are
essential for the energy transition. As the company
was assessed as non-compliant with principles of
the UN Global Compact, we implemented a 3-year
engagement plan from 2022 to 2025 to seek
improvements, monitor progress, and assess remedial
action. In 2024, we followed up with the company
regarding employment and safety standards at
Julong and to emphasise our expectations that they
provide further disclosures on their human rights
due diligence. Our engagement also aimed to gain a
deeper perspective on how Zijin influences overseas
mines where it is a shared owner but not the operator.
Discussion
Over the course of our engagement, Zijin has been
open to dialogue on a range of topics. Following
initial responses on the company’s approach to
human rights due diligence and local environmental
topics, we were invited to visit the Ashele and
Zijinshan mines in 2023 and then to the Julong mine
in 2024. We held discussions with managers and
directors responsible for environmental and social
performance. Zijin has made significant progress in
addressing sustainability and governance issues that
materially impact its performance both internationally
and in China and has developed a more strategic
approach to stakeholder engagement.
In 2024, a September meeting and visit to the Julong
Copper Mine in Tibet, focussed on occupational
safety management and equitable treatment of
employees and contractors. Julong is Zijin’s largest
mineral copper site in China and the third-largest
globally. In November we wrote to the company to
share our expectations for the publication of the
independent social responsibility audit conducted
at the Ashele mine by the end of April 2025. In
December, we reiterated this expectation and
discussed Zijin’s overseas social and environmental
challenges and how the company is addressing them.
Zijin stressed that community relationship building is
and will always be the most material topic to gain the
social license to operate and significant efforts have
been dedicated on this front, such as addressing
the needs of the surrounding communities and
seeking support from the local governments. Zijin
is also working with international non-governmental
organisations (NGOs) for constructive suggestions.
There are many mining projects globally in which
Zijin is a shareholder rather than an operator.
Zijin highlighted the Porgera mine in PNG where
they have appointed two senior managers to sit
on the board to influence the decisions, and ESG
matters are discussed at the board about twice
every quarter. Zijin emphasised that their influence
contributed to Barrick, the direct operator at
the mine, disclosing a roadmap to eliminate the
problematic river tailings disposal method by 2028.
Outcome
The direction of travel and the willingness of Zijin to
engage on these topics is significant. We appreciate
the progress that the company is making and, given
the sector and countries of operation, there will
always be governance, social and environmental-
related risks. The world needs more copper (and
other mined materials), and our preference is to
engage where we believe there are opportunities for
improvement. With regard to our expectations for
human rights-related disclosure and our timeline, the
company committed to report once the information
is reviewed by its US legal counsel. Its latest report
has improved and started to disclose its internal
human rights audits in high-risk regions.
Strategic report
Annual Report and Financial Statements 2025
18
Tencent Holdings
Key topics
• Governance fit for purpose
Overview and objectives
Tencent is a Chinese technology platform renowned
for its range of products and services in the IT
sector. In 2022, Tencent was downgraded to ‘non-
compliant’ with the United Nations Global Compact
principles by a third-party environmental, social and
governance (ESG) rating agency. We have included
the company on our watch list to better understand
Tencent’s data management practices and suggest
actions to align with the international best practices.
Discussion
Following our research and engagement in 2022
and 2023, we followed up again in 2024 to continue
our dialogue on data management with Tencent
as supportive shareholders who are challenged
by their non-compliant list status. We discussed
the international norms of data protection and
the regulatory landscape of data in the People’s
Republic of China (PRC). Tencent has made
significant progress in making the content policy
transparent to its users and disclosing external
requests for data for public scrutiny. Since the start
of our engagement the company has signalled its
commitment to the ten principles of the United
Nations Global Compact (UNGC) as a signatory and
reports on its progress including commitments to
data and privacy protection.
Thus far, our research and engagement has led
us to conclude that Tencent is taking action to the
greatest extent possible to ensure compliance with
domestic legislation while also attempting to align
with international norms. The company’s next steps
will focus on further strengthening the technology
power to prevent cybersecurity attacks, especially
in gaming and its fintech services. Through our
engagement we have also learned more about
Tencent’s decarbonisation pathway, the internal
controls of the anti-corruption campaign and how
they think about the social value and potential of
gaming as one of its core businesses in the long run.
Outcome
The meeting reassured us about the concrete
practices on data protection. We believe the
company is balancing both local laws and
international norms. They will continue to improve
data management as new challenges occur in the
cyber world. The company is proactive in working
to enhance their social license to operate and
engages with a wide range of stakeholders across
government and academia.
© AP/REX/Shutterstock
Pacific Horizon Investment Trust PLC
19
Baillie Gifford
stewardship principles
Baillie Gifford’s overarching ethos is that we are
‘Actual’ investors. That means we seek to invest
for the long term. Our role as an engaged investor
is core to our mission to be effective stewards for
ourclients.
Where possible we consider all asset classes within
the framework of our stewardship activities, however,
the principles are tilted to corporate securities
recognising that this represents the majority of our
assets under management.
As an active manager, we invest in companies at
different stages of their evolution, across many
industries and geographies, and focus on their unique
circumstances and opportunities. Ourapproach
favours a small number of simple principles rather
than overly prescriptive policies. This helps shape our
interactions with holdings and ensures our investment
teams have the freedom and retain the responsibility
to act in clients’ bestinterests.
We seek to apply the most appropriate ownership
tools to each holding in delivering our objectives.
Long-term value creation
We believe that companies that are run for the
long-term are more likely to be better investments
over our clients’ time horizons. We encourage our
holdings to be ambitious, focusing on long-term
value creation and capital deployment for growth.
We know events will not always run according to
plan. In these instances we expect management
to act deliberately and to provide appropriate
transparency. We think helping management to
resist short-term demands from shareholders often
protects returns. We regard it as our responsibility to
encourage holdings away from destructive financial
engineering towards activities that create genuine
value over the long-run. Our value will often be in
supporting management when others don’t.
Alignment in vision and practice
Alignment is at the heart of our stewardship
approach. We seek the fair and equitable treatment
of all shareholders alongside the interests of
management. While assessing alignment with
management often comes down to intangible factors
and an understanding built over time, we look for
clear evidence of alignment in everything from
capital allocation decisions in moments of stress
to the details of executive remuneration plans and
committed share ownership. We expect companies
to deepen alignment with us, rather than weaken it,
where the opportunity presents itself.
Governance fit for purpose
Corporate governance is a combination of structures
and behaviours; a careful balance between systems,
processes and people. Good governance is the
essential foundation for long-term company success.
We firmly believe that there is no single governance
model that delivers the best long-term outcomes.
We therefore strive to push back against one-
dimensional global governance principles in favour
of a deep understanding of each company we invest
in. We look, very simply, for structures, people and
processes which we think can maximise the likelihood
of long-term success. We expect to trust the boards
and management teams of the companies we select,
but demand accountability if that trust is broken.
Sustainable business practices
A company’s ability to grow and generate value for
our clients relies on a network of interdependencies
between the company and the economy, society
and environment in which it operates. We expect
holdings to consider how their actions impact and
rely on these relationships. We believe long-term
success depends on maintaining a 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. Material factors should
be addressed at the board level as appropriate.
Strategic report
Annual Report and Financial Statements 2025
20
Baillie Gifford
proxy voting
We believe that ‘active ownership’ of our clients’
holdings is as important as selecting the right
investments in the first instance. These guidelines
are aligned with our stewardship principles and
describe our approach to proxy voting and company
engagement, the key levers of active ownership,
often described as ‘stewardship’.
While these guidelines are intended to provide an
insight into how we approach voting on our clients’
behalf, it is important to note that we assess every
company individually. In voting, we will always
evaluate proposals on a case-by-case basis, based
on what we believe to be in the best long-term
interests of our clients, rather than rigidly applying
apolicy.
A broad cross section of our investment staff are
involved in our ongoing work on stewardship. In the
same way that our investment approach is based
around empowered and independent teams, our
voting and engagement is led by the individual
investment teams. In keeping with our decentralised
and autonomous culture, our investment teams will,
on occasion, elect to vote differently on the same
general meeting resolutions. Where this happens,
we report accordingly in the proxy voting disclosure
on our website. We also have clear processes in
place to identify, prevent and manage potential
proxy voting related conflicts of interest to ensure
that in all cases the firm acts in the clients’ best
interest. Baillie Gifford’s firm-wide conflict of interest
disclosure is available on our website.
Prior to taking any voting action, we usually address
specific ESG concerns by engaging directly with the
company, using voting as an escalation mechanism
ifwe have not seen sufficient progress. Voting
activity and the reasons for any resolutions voted
against in the period is disclosed on the Company’s
page of the Managers’ website and can be viewed
atpacifichorizon.co.uk.
Company meeting record
Voting distribution
Number of meetings voted
with management
62
Number of meetings with at least
one against, withhold or abstain
32
Meeting not voted 1
Number of votes for 90%
Number of votes against 7%
Number of votes abstain 2%
No Vote 1%
Pacific Horizon Investment Trust PLC
21
31 July
2025
31 July
2024 % change
Shareholders’ funds* £613.4m £602.0m
Net asset value per ordinary share* 716.13p 664.01p 7. 8 %
Share price 648.00p 612.00p 5.9%
MSCI All Country Asia ex Japan Index
(in sterling terms)
†
14.2%
Dividend proposed per ordinary share
in respect of the financial year 1.50p 2.65p
Revenue earnings per ordinary share 2.34p 3.82p
Ongoing charges
#‡
0.75% 0.74%
Discount
#‡
(9.5%) (7.8%)
Active share* 73% 75%
Year to 31 July 2025 2024
Total return
#
Net asset value per ordinary share
‡
8.3% 4.8%
Share price
‡
6.4% 5.1%
MSCI All Country Asia ex Japan Index
(in sterling terms)
†
1 7. 1 % 6.8%
Year to 31 July 2025 2025 2024 2024
Year’s high and low High Low High Low
Net asset value per ordinary share* 719.77p 579.44p 712.09p 579.28p
Share price 650.00p 507.00p 657.00p 512.00p
Discount
#‡
(7.7%) (15.9%) (5.0%) (14.5%)
Year to 31 July 2025 2024
Net return per ordinary share
Revenue 2.34p 3.82p
Capital 46.42p 25.82p
Total 48.76p 29.64p
The following information
illustrates how Pacific Horizon
hasperformed over the year to
31July 2025.
Source: Baillie Gifford/LSEG and relevant underlying index providers. See disclaimer on page 119.
* For a definition of terms see Glossary of terms and Alternative Performance Measures on pages 120 and 121.
†
The MSCI All Country Asia ex Japan Index (in sterling terms) is the principal index against which performance is measured.
#
Alternative Performance Measure – see Glossary of terms and Alternative Performance Measures on pages 120 and 121.
‡
Key Performance Indicator.
Past performance is not a guide to future performance.
One year
summary
Strategic report
Annual Report and Financial Statements 2025
22
* The MSCI All Country Asia ex Japan Index (in sterling terms) is the principal index against which performance is measured.
†
Alternative Performance Measure – see Glossary of terms and Alternative Performance Measures on pages 120 and 121.
#
See disclaimer on page 119.
Past performance is not a guide to future performance.
Five year
summary
Total return performance
†
(figures rebased to 100 at 31 July 2020, plotted on a quarterly basis)
20252020 2021 2022 2023 2024
Cumulative to 31 July
● NAV total return
†
● Share price
total return
†
● Comparative
index total return*
†
Source: Baillie Gifford/LSEG and relevant underlying index providers
#
.
Dividends are reinvested.
0
250
150
100
100
200
Annual share price and net asset value total returns
†
2025
2021
2022 2023 2024
Years to 31 July
● NAV total return
†
● Share price total return
†
Source: Baillie Gifford/LSEG.
Dividends are reinvested.
(40%)
80%
60%
40%
20%
(20%)
0%
The following charts indicate
how Pacific Horizon has
been managed and how it
has performed relative to its
comparative index
*
and the
relationship between share
price and net asset value
overthefive year period to
31July 2025.
Pacific Horizon Investment Trust PLC
23
20252021 2022 2023 2024
Years to 31 July
● Relative NAV total return
†
● Relative share price total return
†
Source: Baillie Gifford/LSEG and relevant underlying index providers
#
.
Dividends are reinvested.
(20%)
60%
40%
20%
0%
Premium/(discount) to net asset value
†
(figures plotted on a quarterly basis)
Relative annual share price and net asset value
totalreturns
†
(compared to the MSCI All Country Asia ex Japan Index (in sterling
terms)* total returns)
2025
July
2020
July
2021 2022 2023 2024
● Pacific Horizon premium/(discount)
†
Source: Baillie Gifford/LSEG
#
.
(15%)
15%
10%
5%
0%
(10%)
(5%)
* The MSCI All Country Asia ex Japan Index (in sterling terms) is the principal index against which performance is measured.
†
Alternative Performance Measure – see Glossary of terms and Alternative Performance Measures on pages 120 and 121.
#
See disclaimer on page 119.
‡
For a definition of terms see Glossary of terms and Alternative Performance Measures on pages 120 and 121.
Past performance is not a guide to future performance.
Active share
‡
(compared to the MSCI All Country Asia ex Japan Index (in sterling
terms)*, plotted on a monthly basis)
2025
July
2020
July
2021 2022 2023 2024
● Active share
‡
Source: Baillie Gifford and relevant underlying index providers
#
.
0%
100%
80%
60%
20%
40%
Turnover
‡
(rolling 12 months turnover, plotted on a monthly basis)
20252020 2021 2022 2023 2024
Years to 31 July
● Turnover
‡
Source: Baillie Gifford.
0%
40%
20%
30%
10%
Strategic report
Annual Report and Financial Statements 2025
24
Capital
At
31 July
Total
assets*
£’000
Borrowings
£’000
Shareholders’
funds*
£’000
Net asset value
per share*
p
Share price
p
Premium/
(discount)*
%
2015 139,167 13,997 125,170 197.78 181.63 (8.2)
2016 132,702 5,000 127,702 223.58 201.00 (10.1)
2017 182,523 14,773 167,750 309.15 286.00 (7.5)
2018 225,063 20,183 204,880 351.26 363.00 3.3
2019 223,755 20,405 203,350 344.50 320.00 (7.1)
2020 329,044 24,641 304,403 481.92 504.00 4.6
2021 748,014 60,783 687,231 777.15 802.00 3.2
2022 610,550 – 610,550 664.65 647.00 (2.7)
2023 580,355 – 580,355 637.18 586.00 (8.0)
2024 601,970 – 601,970 664.01 612.00 (7.8)
2025 653,328 35,780 613,357 716.13 648.00 (9.5)
Revenue Gearing ratios
Year to
31 July
Gross
revenue
£’000
Available
for ordinary
shareholders
£’000
Revenue
earnings per
ordinary
share
p
Dividend paid
and proposed
per ordinary
share (net)
p
Ongoing
charges*
%
Gearing*
%
Gross
gearing*
%
2015 1,886 231 0.35 0.35 1.02 8 11
2016 1,331 (182) (0.30) 0.35 1.13 3 4
2017 1,559 (211) (0.38) – 1.07 7 9
2018 2,032 (328) (0.60) – 1.02 8 10
2019 2,473 8 0.01 – 0.99 8 10
2020 3,128 564 0.95 0.25 0.92 4 8
2021 3,561 (402) (0.51) – 0.78 4 9
2022 11,067 3,830 4.21 3.00 0.74 (1) –
2023 9,580 4,166 4.56 3.25 0.72 (2) –
2024 8,987 3,464 3.82 2.65 0.74 (1) –
2025 8,870 2,090 2.34 1.50 0.75 5 6
Ten year
record
* For a definition of terms see Glossary of terms and Alternative Performance Measures on pages 120 and 121.
Past performance is not a guide to future performance.
Pacific Horizon Investment Trust PLC
25
Cumulative performance (taking 2015 as 100)
At
31 July
Net asset
value per
share*
Net asset
value total
return*
†
Share
price
Share price
total return*
†
Comparative
index
†#
Comparative
index
total return
†#
Retail
price
index
†
2015 100 100 100 100 100 100 100
2016 113 113 111 111 113 116 102
2017 156 157 157 158 142 149 106
2018 178 178 200 201 146 158 109
2019 174 175 176 177 148 165 112
2020 244 245 277 278 152 173 114
2021 393 396 442 443 168 195 118
2022 336 337 356 358 150 179 133
2023 322 325 323 326 147 181 145
2024 336 343 337 342 153 193 150
2025 362 369 357 364 175 226 157
Compound annual returns* (%)
5 year 8.2 8.6 5.2 5.5 2.9 5.5 6.7
10 year 13.7 13.9 13.6 13.8 5.8 8.5 4.6
Cumulative to 31 July
20252015 2017 2020 2022 20242016 20192018 2021 2023
● Pacific Horizon share price total return*
†
● NAV total return*
†
● MSCI All Country Asia ex Japan Index (in sterling terms) total return*
†
0
600
300
200
100
500
400
Total return performance*
(figures rebased to 100 at 31 July 2015, plotted on a quarterly basis)
* For a definition of terms see Glossary of terms and Alternative Performance Measures on pages 120 and 121.
†
Source: LSEG and relevant underlying index providers. See disclaimer on page 119.
#
The MSCI All Country Asia ex Japan Index (in sterling terms) is the principal index against which performance is measured.
Past performance is not a guide to future performance.
Strategic report
Annual Report and Financial Statements 2025
26
Review of
investments
A review of the Company’s
tenlargest investments as at
31July 2025.
*
For a definition of terms see Glossary of terms and Alternative Performance Measures on pages
120
and
121
.
TSMC
TSMC is the world’s most
advanced semiconductor
foundry, with unmatched scale
and technological leadership.
It’sindispensable to its customers
– it partners with all major chip
designers secure enduring
high returns and multi-decade
growth. With exceptional cash
generation and human capital,
itreinvests ambitiously, extending
its lead in semiconductor process
technology and reinforcing its
central role in the digital economy.
Geography Taiwan
Valuation at 31 July 2025 £68,163,000
% of total assets*
at 31 July 2025
10.4%
Valuation at 31 July 2024 £52,860,000
% of total assets*
at 31 July 2024
8.8%
Net purchases/(sales) in
year to 31 July 2025
(£782,000)
© Taiwan Semiconductor Manufacturing Co., Ltd.
Tencent Holdings
Tencent is China’s largest
online entertainment platform.
It operates WeChat, China’s
super-app, and is the country’s
leading gaming publisher.
Itsunrivalled consumer internet
reach and AI capability,
coupled with a strong record in
capital allocation, provides an
exceptional platform for long-term
growth. Positioned at the heart of
China’s digital economy, Tencent
can capture opportunities in
advertising and cloud services, as
well as overseas gaming.
Geography China
Valuation at 31 July 2025 £46,469,000
% of total assets*
at 31 July 2025
7.1 %
Valuation at 31 July 2024 £22,940,000
% of total assets*
at 31 July 2024
3.8%
Net purchases/(sales) in
year to 31 July 2025
£12,072,000
© Alamy Stock Photo.
Pacific Horizon Investment Trust PLC
27
* For a definition of terms see Glossary of terms and Alternative Performance Measures on pages 120 and 121.
†
At 31 July 2024, the company held £14,266,000 in SK hynix. During the period to 31 July 2025, the company sold all its holdings in SK hynix,
generating sale proceeds of £17,198,000. Of these proceeds, £16,840,000 was reinvested in SK Square.
Samsung Electronics
Samsung is a global leader in
memory chips and smartphones.
Its scale, vertical integration
and relentless innovation
underpin durable competitive
advantages. The company
generates substantial cash
flows and is investing heavily in
next-generation technologies,
such as advanced memory,
positioning it as a key enabler
of digital infrastructure and
consumer electronics globally.
Geography South Korea
Valuation at 31 July 2025 £39,453,000
% of total assets*
at 31 July 2025
6.0%
Valuation at 31 July 2024 £57,877,000
% of total assets*
at 31 July 2024
9.6%
Net purchases/(sales) in
year to 31 July 2025
(£9,057,000)
© Samsung.
SK Square
SK Square is a holding company
for SK Hynix, the world’s leading
supplier of high-bandwidth
memory chips vital for AI
datacentres. Chronic undersupply
supports strong long-term growth,
while SK Square itself trades at a
steep discount to its stake’s value.
Thiscombination of structural
demand growth and valuation
dislocation offers attractive
upside potential.
Geography South Korea
Valuation at 31 July 2025 £25,599,000
% of total assets*
at 31 July 2025
3.9%
Valuation at 31 July 2024 £5,835,000
% of total assets*
at 31 July 2024
1.0%
Net purchases/(sales) in
year to 31 July 2025
£16,840,000
†
ByteDance Series E-1
Preferred
ByteDance, owner of Douyin
and TikTok, is redefining global
media through short-form video.
Its unmatched machine-learning
capabilities drive personalised
engagement and innovation
across demographics and formats.
With proven ability to launch
category-defining products and
monetise attention, ByteDance
has the potential to become
a generation-defining media
platform. It is also one of the
Company’s private investments.
Geography China
Valuation at 31 July 2025 £25,300,000
% of total assets*
at 31 July 2025
3.9%
Valuation at 31 July 2024 £15,232,000
% of total assets*
at 31 July 2024
2.5%
Net purchases/(sales) in
year to 31 July 2025
nil
© Imaginechina Limited/Alamy Stock Photo.
Strategic report
Annual Report and Financial Statements 2025
28
* For a definition of terms see Glossary of terms and Alternative Performance Measures on pages 120 and 121.
EO Technics
EO Technics supplies lasers
essential to advanced
semiconductor manufacturing,
including wafer marking,
drillingand dicing. As chips
become smaller and more
complex, traditional tools are
being displaced by laser solutions.
Thisstructural shift underpins
rapid growth potential, positioning
EO Technics as a key enabler of
future semiconductor advances.
Geography South Korea
Valuation at 31 July 2025 £ 16,590,000
% of total assets*
at 31 July 2025
2.5%
Valuation at 31 July 2024 £15,692,000
% of total assets*
at 31 July 2024
2.6%
Net purchases/(sales) in
year to 31 July 2025
(£1,260,000)
Zijin Mining Group
Zijin Mining is a diversified
miner with a strong asset base
in copper, gold and zinc. Zijinis
positioned to benefit from
structural copper shortages
driven by the energy transition.
Its unique expertise in managing
low-grade resources enables
profitable projects others cannot
match. Its entrepreneurial
leadership remains committed
to exploration and expansion
and Zijin’s combination of cost
advantage, speed and vision
underpins its long-term potential.
Geography China
Valuation at 31 July 2025 £18,061,000
% of total assets*
at 31 July 2025
2.8%
Valuation at 31 July 2024 £18,142,000
% of total assets*
at 31 July 2024
3.0%
Net purchases/(sales) in
year to 31 July 2025
(£1,704,000)
SEA Ltd
SEA Limited is Southeast Asia’s
leading internet company,
withstrengths in gaming,
ecommerce and fintech. Backed
by Tencent, it benefits from scale,
strong execution and a rapidly
expanding digital economy.
Its markets remain early in
penetration, offering exponential
growth potential over the
comingdecade.
Geography Singapore
Valuation at 31 July 2025 £23,130,000
% of total assets*
at 31 July 2025
3.5%
Valuation at 31 July 2024 £11,197,000
% of total assets*
at 31 July 2024
1.9%
Net purchases/(sales) in
year to 31 July 2025
(£249,000)
Pacific Horizon Investment Trust PLC
29
* For a definition of terms see Glossary of terms and Alternative Performance Measures on pages 120 and 121.
Pinduoduo Inc
Pinduoduo has been one of
the fastest growing companies
in China. It has disrupted
Chinese ecommerce with its
price-driven, gamified model to
entice customers. Leveraging
deep supplier relationships,
itdelivers bargains that resonate
with cost-conscious consumers
while driving strong profitability.
Internationally, its Temu platform
is rapidly gaining traction,
extending its disruptive approach
to global markets.
Geography China
Valuation at 31 July 2025 £13,860,000
% of total assets*
at 31 July 2025
2.1%
Valuation at 31 July 2024 £15,469,000
% of total assets*
at 31 July 2024
2.6%
Net purchases/(sales) in
year to 31 July 2025
£968,000
© Imaginechina Limited/Alamy Stock Photo.
Delhivery
Delhivery is an Indian logistics
company, and the leading
independent provider of
end-to-end delivery services,
with a national network used by
all ecommerce players. It is a
technology focused business.
Thescale and modernity of
its network has allowed it
to deliver both the lowest
costs and a reliable delivery
experience, making it one of the
best-placed operators to benefit
from the continued growth of
Indianecommerce.
Geography India
Valuation at 31 July 2025 £15,472,000
% of total assets*
at 31 July 2025
2.4%
Valuation at 31 July 2024 £18,175,000
% of total assets*
at 31 July 2024
3.0%
Net purchases/(sales) in
year to 31 July 2025
(£2,152,000)
Strategic report
Annual Report and Financial Statements 2025
30
Performance
1 year
%
3 years
%
5 years
%
10 years
%
Share price 6.4 1.8 30.8 264.1
NAV 8.3 9.3 50.8 268.7
Comparative index* 1 7. 1 26.1 30.4 126.1
All figures are stated on a total return basis
†
for the period to 31 July 2025.
*
The comparative index is the MSCI All Country Asia ex Japan Index (in sterling terms).
†
Alternative Performance Measure – see Glossary of terms and Alternative Performance Measures on pages 120 and 121.
Source: Baillie Gifford/LSEG and relevant underlying index providers. See disclaimer on page 119.
Portfolio executive
summary
Contributors
Absolute
performance
%*
TSMC
34.6
SEA Ltd 131.0
Tencent Holdings 48.1
ByteDance Series E-1 Preferred 66.1
Accton Technology Corporation 90.2
Detractors
Absolute
performance
%*
VerSe (Dailyhunt) Innovation
(59.5)
Samsung Electronics (16.3)
Kaspi.kz (39.4)
Equinox India Developments (28.1)
Meituan (31.8)
Key contributors and detractors to performance – year to 31 July 2025
* Absolute performance (in sterling terms) has been calculated on a total return basis over the period 1 August 2024 to 31 July 2025. For the definition of
total return see Glossary of terms and Alternative Performance Measures on pages 120 and 121.
Source: Revolution.
Pacific Horizon Investment Trust PLC
31
Complete sales
Baidu Inc
Brilliance China Automotive
Chalice
Jio Financial Services
Koh Young Technology
Li-Ning
PropertyGuru
Ramkrishna Forgings
SK hynix
Vinh Hoan Corporation
HDBank
Lufax Holding
Midea Group A shares
Military Commercial Joint
Stock Bank
Pinduoduo Inc
SG Micro A Shares
SK Square
Tencent Holdings
Additions
Denotes listed investment previously held in the portfolio as an unlisted (private company) investment.
Denotes unlisted (private company) investment.
Philtown properties was written-off in the year to 31 July 2024.
Bajaj Finserv
CATL
Chifeng Jilong Gold
Eicher Motors
Fabrinet
Goneo
Grab
Haidilao
HBD Financial Services
Hyundai Motor India
InterGlobe Aviation
Kanzhun
Khan Dien House Trading
and Investment Joint Stock
Company
Meituan
Pony.ai
Sanhua Intelligent Controls
New buys
Reductions
Accton Technology
Corporation
AirTAC International Group
PT AKR Corporindo Tbk
ASMPT
Bank Rakyat
Binh Minh Plastics Joint
Stock Company
Chroma ATE
Coupang
Delhivery
EO Technics
Equinox India Developments
FPT Corporation
Hoa Phat Group
Jadestone Energy
JD.com
Kaspi.kz
KE Holdings
KE Holdings ADR
Lemon Tree Hotels
Luckin Coffee Inc ADR
MediaTek
MMG
Mobile World Investment
Corporation
Phoenix Mills
Ping An Insurance
PolicyBazaar
Precision Tsugami
Prestige Estate Projects
Reliance Industries
Samsung Electronics
SEA Ltd
Silergy
TSMC
Techtronic Industries
Vietnam Enterprise
Investments Limited
Zhejiang Supor Co A Shares
Zijin Mining Group
Strategic report
Annual Report and Financial Statements 2025
32
Distribution of total assets
*
and size splits
Geographical 2025
Sectoral 2025
1
2
3
4
6
5
7
8
* For a definition of terms see Glossary of terms and Alternative Performance Measures on pages 120 and 121.
#
The MSCI All Country Asia ex Japan Index (in sterling terms) is the principal index against which performance is measured.
Size splits (market capitalisation of investments)
As at 31 July 2025
<£1bn>£25bn £10–25bn £1–2bn£2–5bn£5–10bn
Source: Baillie Gifford/LSEG and relevant underlying index providers.
See disclaimer on page 117.
● Pacific Horizon ● MSCI All Country Asia ex Japan index
#
% of portfolio and index stocks
0%
60%
50%
40%
30%
10%
20%
3
4
5
8
7
2
6
1
9
Geographical 2025
%
2024
%
1 China 30.3 22.6
2 Taiwan 16.3 14.7
3 India 14.2 23.0
4 South Korea 13.6 17.0
5 Vietnam 9.1 8.7
6 China 'A' shares 6.1 3.2
7 Singapore 4.2 3.7
8 Hong Kong 1.8 2.4
9 Indonesia 1.7 2.6
10 Kazakhstan 1.4 2.8
11 Thailand 1.1 –
12 Net liquid assets 0.2 (0.7)
Sectoral 2025
%
2024
%
1 Information Technology 29.0 32.5
2 Communication Services 15.8 13.2
3 Consumer Discretionary 14.4 13.2
4 Industrials 13.5 6.0
5 Financials 13.2 14.2
6 Materials 6.5 6.9
7 Real Estate 5.6 10.0
8 Energy 1.8 4.2
9 Health Care <0.1 –
10 Consumer Staples – 0.5
11 Net liquid assets 0.2 (0.7)
Pacific Horizon Investment Trust PLC
33
Strategic report
Annual Report and Financial Statements 2025
34
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’. Ourvaluation process ensures that
private companies are valued in both a fair and
timelymanner.
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 four times in a
twelve-month period. For investment trusts, the
prices are also reviewed twice per year by the
respective boards.
Beyond the regular cycle, the valuations group 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 (‘NAV’). There is no delay.
The valuations group also monitors relevant
market benchmarks 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 improvements in market conditions have
sustained an increase in deal activity, but isolated
pockets of heightened volatility remain. The data
below quantifies the revaluations carried out
during the twelve months to 31July 2025, however
doesn’t reflect the ongoing monitoring of the private
investment portfolio which hasn’t resulted in a
change in valuation.
Pacific Horizon Investment Trust
Instruments (lines of stock reviewed) 7
Revaluations performed 42
Percentage of portfolio revalued up to 4 times 29%
Percentage of portfolio revalued 5+ times 71%
Baillie Gifford – valuing
private companies
Pacific Horizon Investment Trust PLC
35
Private companies summary
Transaction value
Showing all transactions in the year to 31 July (£’000).
Historical snapshot
Since our first investment in private companies in 2007, Pacific Horizon Investment Trust has deployed
£76,228,000 of capital in this area.
0
40,000
30,000
20,000
10,000
Follow on
Buy Listed
20222021 202020182017 2023 2024 2025
04
private companies listed
sinceinitial purchase
05
private companies
currentlyheld
Portfolio activity – year to 31 July 2025
No new capital was deployed in private companies
during the year. No private companies listed or were
taken-over during the year.
Concentration
At 31 July 2025 we held 5 private companies
whichequated to 6.1% of total assets.
Private exposure
(31 July 2025)
Total private company exposure
ByteDance 3.9% (£25,300,000)
VerSe (Dailyhunt)
Innovation
1.3% (£8,386,000)
MicroConnect 0.9% (£6,143,000)
Chime Biologics <0.1% (£44,000)
Eden Biologics <0.1% (£22,000)
Private company
exposure within
thetopfive holdings
– 3.9%
All figures stated as percentage of total assets, as at 31 July 2025.
Total private company exposure
6.1%
Strategic report
Annual Report and Financial Statements 2025
36
Jul
2025
Jul
2022
Jul
2016
Jul
2017
Jul
2018
Jul
2019
Jul
2020
Jul
2021
Jul
2023
Jul
2024
Source: Baillie Giff
ord.
Total assets in sterling (left hand axis)
P
rivate company investments as a % of total assets (right hand axis)
P
rivate company investments and listed investments previously held in the portfolio as private comany investments as a % of total assets (right hand axis)
*
See Glossary of terms and Alternative Performance Measures on pages 120
and 121
.
£ million
25
0
10
15
%
20
5
1,000
200
800
400
600
0
Private company investments and listed investments previously held as private company investments
as a percentage of total assets*
(plotted quarterly from July 2016)
Performance of listed holdings held previously as private company investments
fromdateofinitialinvestmentof each holding to 31 July 2025
(absolute performance in sterling terms as a %)
Absolute performance from initial investment to initial public offering
Absolute performance from initial public offering to 31 July 2025
Total absolute performance from initial investment to 31 July 2025
No
te: Absolute performance returns cannot be added together as they are geometric.
Source: Revolution/Baillie Gifford.
Star Health
Zomato
Delhivery
80 100
-100 20 6040-80 -60 -40 -20 0
80 10
0
-100 20 6040-80 -60 -40 -20 0
Listed holdings at 31 July 2025
Pacific Horizon Investment Trust PLC
37
2025
£’000
2024
£’000
Opening balance 1 August 2024 42,763 29,427
Purchases at cost – 10,628
Disposals proceeds received
*
– (5)
Change in listing – –
Change in fair value (2,868) 2,713
Closing balance 31 July 2025 39,895 42,763
Overview
Valuation movements – year to 31 July 2025
Size
Our private company exposure tends to be weighted
to the upper end of the maturity curve, typically
focussed on late stage private companies at point
of investment who are scaling up and becoming
profitable.
Private companies
ByteDance
Chime Biologics
Eden Biologics
VerSe (Dailyhunt)
Innovation
MicroConnect
Pacific Horizon 20.0%
Average change at company level
Year to 31 July 2025
Valuation changes
Pacific Horizon -44.6%
Average write-down per company
Year to 31 July 2025
(excluding companies revalued up)
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
Source: Baillie Gifford. Pacific Horizon private company valuation changes, year to 31 July 2025.
Cap
Total equity
value (USD)
Total asset
%
Number of
holdings
Micro <$300m <0.1 2
Small $300m–$2bn 2.2 2
Medium $2bn–$10bn – –
Large >$10bn 3.9 1
6.1 5
As at 31 July 2025.
Strategic report
Annual Report and Financial Statements 2025
38
List of investments
as at 31 July 2025
Name
Geography
Business
2025
Value
£’000
2025
% of total
assets*
2024
Value
£’000
TSMC Taiwan Semiconductor manufacturer 68,163 10.4 52,860
Tencent Holdings China Internet services 46,469 7.1 22,940
Samsung Electronics South Korea Memory, phones and electronic
components manufacturer
39,453 6.0 57,877
SK Square South Korea Asset manager, investing in
semiconductors and information
and communications technologies
25,599 3.9 5,835
ByteDance Series E-1 Preferred China Social media 25,300 3.9 15,232
SEA Ltd ADR Singapore Internet gaming and ecommerce 23,130 3.5 11,197
Zijin Mining Group China Gold and copper miner 18,061 2.8 18,142
EO Technics South Korea Manufacturer and distributor of
semiconductor laser markers
16,590 2.5 15,692
Delhivery India Logistics and courier services
provider
15,472 2.4 18,175
Pinduoduo Inc China Ecommerce platform 13,860 2.1 15,469
Luckin Coffee Inc ADR China Coffeehouse chain 13,786 2.1 8,456
Accton Technology Corporation Taiwan Server network equipment
manufacturer
13,572 2.1 10,717
MMG China Copper miner 13,557 2.1 12,885
HDBank Vietnam Consumer bank 13,113 2.0 9,751
Equinox India Developments India Real estate 12,057 1.8 23,158
Military Commercial Joint Stock
Bank
Vietnam Retail and corporate bank 11,272 1.7 6,578
MediaTek Taiwan Electronic component manufacturer 10,856 1.7 10,216
Ping An Insurance China Life insurance provider 10,563 1.6 7,345
Meituan China Chinese local services platform 10,406 1.6 –
Midea Group A shares China A Household appliance manufacturer 9,919 1.5 8,386
Mobile World Investment
Corporation
Vietnam Electronic and grocery retailer 9,712 1.5 11,052
PolicyBazaar India Online financial services platform 9,484 1.5 9,637
Kaspi.kz Kazakhstan Banking, ecommerce and payments
platform
8,894 1.4 17,034
VerSe (Dailyhunt) Innovation
Series I Preferred
India News aggregator application 6,689 1.0 15,417
* See Glossary of terms and Alternative Performance Measures on pages 120 and 121.
Denotes listed investment previously held in the portfolio as an unlisted (private company) investment.
Denotes unlisted (private company) investment.
Pacific Horizon Investment Trust PLC
39
Name
Geography
Business
2025
Value
£’000
2025
% of total
assets*
2024
Value
£’000
VerSe (Dailyhunt) Innovation
Series J Preferred
India News aggregator application 1,003 0.2 2,198
VerSe (Dailyhunt) Innovation
Series Equity
India News aggregator application 694 0.1 3,078
8,386 1.3 20,693
SG Micro A Shares China A Semiconductor manufacturer 8,168 1.3 4,871
Prestige Estate Projects India Owner and operator of residential
real estate properties
7,999 1.2 13,985
Coupang South Korea Ecommerce business 7,574 1.2 6,239
Fabrinet Thailand Manufacturer of optical and electro-
mechanical services
7,491 1.1 –
KE Holdings China Real estate platform 6,851 1.0 5,722
KE Holdings ADR China Real estate platform 630 0.1 517
7,481 1.1 6,239
JD.com China Online mobile commerce 7,086 1.1 8,027
Bank Rakyat Indonesia Consumer bank 7,009 1.1 10,444
Lemon Tree Hotels India Owner and operator of a chain of
Indian hotels and resorts
6,909 1.1 11,583
Sanhua Intelligent Controls China Thermal management manufacturer 6,686 1.0 –
FPT Corporation Vietnam IT service provider 6,602 1.0 8,272
Reliance Industries India Petrochemical company 6,567 1.0 14,290
Kanzhun China Online recruitment platform 6,377 1.0 –
CATL China A EV battery manufacturer 6,219 1.0 –
MicroConnect Hong Kong SME financing exchange 6,143 0.9 6,782
Bajaj Finserv India Indian financial services business 6,097 0.9 –
Precision Tsugami China Industrial machinery manufacturer 6,053 0.9 3,170
Zhejiang Supor Co A Shares China A Manufacturer of cookware and
home appliance products
5,847 0.9 6,161
Silergy Taiwan Semiconductor manufacturer 5,784 0.9 8,428
Chroma ATE Taiwan Manufacturer of electronic
measuring instruments
5,770 0.9 4,285
Binh Minh Plastics Joint Stock
Company
Vietnam Plastic piping manufacturer 5,705 0.9 4,555
* See Glossary of terms and Alternative Performance Measures on pages 120 and 121.
Denotes listed investment previously held in the portfolio as an unlisted (private company) investment.
Denotes unlisted (private company) investment.
Strategic report
Annual Report and Financial Statements 2025
40
Name
Geography
Business
2025
Value
£’000
2025
% of total
assets*
2024
Value
£’000
Hoa Phat Group Vietnam Steel and related products
manufacturer
5,358 0.8 5,767
HBD Financial Services India Retail and commercial lender 5,184 0.8 –
Lufax Holding China Online financial services platform 5,165 0.8 4,615
Chifeng Jilong Gold China A Gold mining company 5,034 0.8 –
Phoenix Mills India Commercial property manager 5,031 0.8 12,263
InterGlobe Aviation India India’s leading airline 4,852 0.7 –
Khan Dien House Trading and
Investment Joint Stock Company
Vietnam Real estate 4,638 0.7 –
Eicher Motors India Manufacturer of Royal Enfield
motorcycles
4,199 0.6 –
Haidilao China Leading hotpot restaurant chain 4,037 0.6 –
Goneo China A Consumer electrics manufacturer 3,992 0.6 –
PT AKR Corporindo Tbk Indonesia Logistics and supply chain 3,938 0.6 5,211
ASMPT Hong Kong Semiconductor manufacturer 3,600 0.6 5,147
Vietnam Enterprise Investments
Limited
Vietnam Investment fund 3,572 0.5 3,090
Pony.ai China Autonomous driving technology
company
3,044 0.5 –
Grab Singapore Ride-hailing and food delivery
platform
2,969 0.5 –
AirTAC International Group Taiwan Pneumatic components
manufacturer
1,953 0.3 1,909
Techtronic Industries Hong Kong Power tool manufacturer 1,778 0.3 2,354
Jadestone Energy Singapore Oil and gas explorer and producer 1,226 0.2 5,616
Hyundai Motor India India Automotive manufacturer 894 0.1 –
Chime Biologics China Biopharmaceutical company 44 <0.1 46
Eden Biologics Taiwan Biopharmaceutical company 22 <0.1 10
Total investments 651,771 99.8
Net liquid assets 1,557 0.2
Total assets 653,328 100.0
Details of the ten largest investments are given on pages 26 to 29 along with comparative valuations.
Listed
equities
%
Private company
investments
†
%
Net liquid
assets
*
%
Total
assets
*
%
31 July 2025 93.7 6.1 0.2 100.0
31 July 2024 93.6 7.1 (0.7) 100.0
Figures represent percentage of total assets.
* For a definition of terms see Glossary of terms and Alternative Performance Measures on pages 120 and 121.
†
Includes holdings in ordinary shares and preference shares.
Denotes listed investment previously held in the portfolio as an unlisted (private company) investment.
Denotes unlisted (private company) investment.
Pacific Horizon Investment Trust PLC
41
Business model
Business and status
The Company is an investment company within the
meaning of section 833 of the Companies Act 2006
and carries on business as an investment trust.
Investment trusts are UK public listed companies
and their shares are traded on the London Stock
Exchange. They invest in a portfolio of assets in
order to spread risk. The Company has a fixed share
capital although, subject to shareholder approval,
sought annually, it may purchase its own shares or
issue shares. The price of the Company’s shares is
determined, like other listed shares, by supply and
demand. The Company has been approved as an
investment trust by HM Revenue & Customs subject
to the Company continuing to meet the eligibility
conditions. The Directors are of the opinion that the
Company has continued to conduct its affairs so as
to enable it to comply with the ongoing requirements
of section 1158 of the Corporation Tax Act 2010 and
the Investment Trust (Approved Company) (Tax)
Regulations 2011.
The Company is an Alternative Investment Fund
(‘AIF’) for the purposes of the UK Alternative
Investment Fund Managers Regulations.
Purpose
The Company’s purpose is to conduct business as an
investment trust, investing its assets in accordance
with its investment objective, in order to achieve
capital growth for shareholders.
Investment objective
The 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
principally of quoted securities.
Investment policy
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 one company is 15% of
total assets at time of investment.
The portfolio contains companies which the portfolio
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 principally of quoted equity securities
although unlisted companies, fixed interest holdings
or other non-equity investments may be held. The
maximum exposure to unlisted investments is 15%
of total assets at the time of initial investment. 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
riskiscreated through diversification and the
portfolio will typically consist of between 40 and
120companies. 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
asimposed 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 approved 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 itis considered that investment
opportunities meritthe Company taking a geared
position. TheCompany is also permitted to be less
than fullyinvested. Cash and equity gearing levels,
andthe extent of gearing, are discussed by the
Board and Managers at every Board meeting.
Business review
Strategic report
Annual Report and Financial Statements 2025
42
The Board also has regard to the total return of the
Company’s principal comparative index (MSCI All
Country Asia ex Japan Index (in sterling terms))
and considers the performance of comparable
companies. Across these measures, the Board
looks for relative outperformance over the long
term, while remaining mindful that the nature of the
investment policy and the growth characteristics
of the portfolio investments may entail periods of
underperformance over the short and medium term.
The Board is satisfied with the Company’s progress
and performance.
Key performance indicator
The Board uses key performance
indicators (KPIs) to measure
the progress and performance
of the Company over time when
discharging its duties as set
out on page 62. These KPIs are
established industry measures.
Share price and net asset
valuetotal returns (APM)
The total return is the return to
shareholders after reinvesting
thenetdividend on the date that
theshareprice goes ex-dividend.
0
50
100
150
20
0
25
0
300
1 year 5 years10 years
● NAV total
return
● Share
price total
return
Share price discount/premium
(APM)
As stock markets 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. If the share price is higher
than the NAV per share, this situation
is called a premium.
1 year 5 years10 year
s
%
● Average discount/premium
of NAV to share price
-12
-10
-8
-6
-4
-2
0
Ongoing charges (APM)
Ongoing charges are 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.
0.0
0.5
1.0
1.5
2.0
%
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Ongoing charges
Performance
Pacific Horizon Investment Trust PLC
43
Culture
As an externally managed investment company
with no employees, Pacific Horizon’s culture is
expressed through its Board and its third party
service providers, in particular its Managers, in
their interactions with shareholders and other
stakeholders. The Board’s assessment of its
own interactions is described in its Section 172
Statementon pages 48 to 50, and the Baillie Gifford
Statement on Stewardship, which describes the
Managers’ culture of constructive engagement,
issetout on page 19.
Borrowings
Facility Lender Maturing 2025 2024
£60
million
Royal Bank
of Scotland
International
Limited
14 March
2026
£35.8
million
No
outstanding
drawings
The main covenants relating to the loan are
that borrowings should not exceed 30% of the
Company’s adjusted net asset value and the
Company’s net asset value should be at least
£300 million. There were no breaches in the loan
covenants during the year.
Viability statement
Notwithstanding that the continuation of the
Company is subject to approval of shareholders
every five years, with the next vote at the Annual
General Meeting in 2026, the Directors have, in
accordance with provision 31 of the UK Corporate
Governance Code, published by the Financial
Reporting Council, assessed the prospects of the
Company over a three year period. The Directors
continue to believe this period to be appropriate
as it is reflective of the Company’s investment
approach. In the absence of any adverse change to
the regulatory environment and the favourable tax
treatment afforded to UK investment trusts, such a
period is one over which they do not expect there
to be any significant change to the current principal
risks and to the adequacy of the mitigating controls
in place. The Directors do not envisage any change
in the Company’s strategy or objectives nor do they
foresee any events that would prevent the Company
from continuing in existence over that period.
In making this assessment regarding viability, the
Directors have taken into account the Company’s
current position and have conducted a robust
assessment of the Company’s principal and
emerging risks and uncertainties (as detailed on
pages 44 to 47), in particular the impact of market
risk where a significant fall in the Asia-Pacific
(excluding Japan) and the Indian Sub-continent
equity markets would adversely impact the value of
the investment portfolio. The Directors have also
considered the Company’s investment objective
and policy, the level of demand for the Company’s
shares, the nature of its assets, its liabilities and its
projected income and expenditure. The vast majority
of the Company’s investments are readily realisable
and can be sold to meet its liabilities as they fall
due. The Company’s primary third party suppliers,
including its Managers and Secretaries, Custodian
and Depositary, Registrar, Auditor and Broker, are
not experiencing significant operational difficulties
affecting their respective services to the Company.
Inaddition,as substantially all of the essential
services required by the Company are outsourced
to third party service providers, key service
providers can be replaced at relatively short notice
wherenecessary.
The Directors have also specifically considered the
Company’s £60 million multi-currency revolving
credit facility with Royal Bank of Scotland
International Limited which is due to expire in March
2026. Initial conversations with the loan provider
have taken place, and the Board does not anticipate
any problems regarding the renewal of the facility.
Specific leverage and liquidity stress testing was
conducted during the year, including consideration
of increasing geopolitical tensions. The stress
testing did not indicate any matters of material
concern.
The Board monitors the level of discount/premium
at which the shares trade and the Company has
authority to buy back its existing shares, when
deemed by the Board to be in the best interests
oftheCompany and its shareholders. In the year
to 31 July 2025, 5,008,324 ordinary shares,
representing 5.5% of the issued share capital at
31 July 2024, were bought back at a total cost of
£29,766,000.
Based on the Company’s processes for monitoring
revenue projections, share price discount/premium,
the Managers’ compliance with the investment
objective, asset allocation, the portfolio risk profile,
leverage, counterparty exposure, liquidity risk and
financial controls, the Directors have concluded that
there is a reasonable expectation that the Company
will be able to continue in operation and meet its
liabilities as they fall due over the next three years.
Strategic report
Annual Report and Financial Statements 2025
44
Principal and emerging risks
As explained on page 66 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.
Financial
risk
What is the risk?
The Company’s assets
consist mainly of listed
securities (93.7% of total
assets) and its principal
and emerging financial
risks are therefore market
related and include market
risk (comprising currency
risk, interest rate risk and
other price risk), liquidity
risk and credit risk. An
explanation of those risks
and how they are managed
is contained in note 18 to
the Financial Statements
on pages100 to107.
How is it managed?
The Board has, in particular, considered
the impact of heightened macroeconomic
and geopolitical concerns, including trade
wars, the ongoing Russia-Ukraine war, and
the conflict in the Middle East. The Board
also considers the commercial impact of
potential changes in regulatory positions,
which can affect the local markets in
which the portfolio companies operate.
To oversee this risk, the Board considers
various metrics at each meeting, including
regional and industrial sector weightings,
top and bottom stock contributors to
performance, along with sales and
purchases of investments. The Board
reviews these risks at regular intervals with
the portfolio manager, alongside examining
general views on the various investment
markets and sectors.
Rating and
change
Current assessment of risk
This risk is considered
to have increased. The
prospect of heightened
market volatility remains
from deteriorating
geopolitical stability such
as trade wars, the ongoing
Russia-Ukraine war, and
continuing hostilities in the
Middle East.
Investment
strategy risk
What is the risk?
Pursuit of an investment
strategy to fulfil the
Company’s objective which
the market perceives to be
unattractive or
inappropriate, or the
ineffective implementation
of an attractive or
appropriate strategy, may
lead to reduced returns for
shareholders and, as a
result, adecreased
demand for the Company’s
shares. This may lead to
the Company’s shares
trading at a widening
discount to their net
assetvalue.
How is it managed?
To mitigate this risk, the Board regularly
reviews and monitors the Company’s
objective and investment policy and
strategy, the investment portfolio and
its performance, the level of discount/
premium to net asset value at which
the shares trade and movements in the
share register and raises any matters
ofconcern with the Managers.
Rating and
change
Current assessment of risk
This risk is considered
to have increased. The
market appetite for growth
investing is considered
to have deteriorated
over recent months as
investors shift to assets
perceived to be safe or
offering insulation from
market volatility. Despite
a significant increase in
buybacks the discount of
the share price to net asset
value has widened over
theyear.
Decreasing RiskIncreasing Risk Stable Risk
Moderate RiskHigh Risk Low Risk
Pacific Horizon Investment Trust PLC
45
Political and
associated
economic
financial risk
What is the risk?
The Board is of the view
that political change
in areas in which the
Company invests or may
invest may have financial
consequences for the
Company.
How is it managed?
Political developments are closely
monitored and considered by the Board,
particularly regarding trade tensions
between the USA and China and between
the USA and India over tariffs, continuing
unrest in Hong Kong, repercussions from
the Russian invasion of Ukraine, and the
Israel and Palestine conflict. 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.
Rating and
change
Current assessment of risk
This risk is seen as
increased as deteriorating
geopolitical stability
increases the prospect
of trade conflict
andsanctions.
Discount
risk
What is the risk?
The discount/premium
at which the Company’s
shares trade relative to
its net asset value can
change. The risk of a
widening discount is
that it may undermine
investor confidence in
theCompany.
How is it managed?
To manage this risk, the Board monitors
the level of discount/premium at which
the shares trade and the Company has
authority to buy back its existing shares,
when deemed by the Board to be in the
best interests of the Company and its
shareholders. During the year, £29.8 million
of shares were bought back, representing
5.5% of the issued share capital at the
start of the period. On 16 April 2025, the
Company announced a performance-
related Conditional Tender Offer and stated
that it is the current Board’s ambition to
maintain the Company’s discount in single
digits, in normal market conditions, on a
sustained basis.
Rating and
change
Current assessment of risk
This risk is seen as
increased. The discount
started the year at 7.8%,
increased to 15.9% during
the year, and reduced to
9.5% at the end of the
year. The increased risk
reflects broader market
challenges, including
outflows from the UK
Investment Trust market.
The Board continues to
monitor the discount and
take action as appropriate.
Regulatory
risk
What is the risk?
Failure to comply with
applicable legal and
regulatory requirements
such as the tax rules
for investment trust
companies, the UK
Listing Rules and the
Companies Act could
lead to suspension of
the Company’s Stock
Exchange listing, financial
penalties, a qualified audit
report or the Company
being subject to tax on
capital gains.
How is it managed?
To mitigate this risk, Baillie Gifford’s
Business Risk, Internal Audit and
Compliance Departments provide regular
reports to the Audit Committee on
Baillie Gifford’s monitoring programmes.
Major regulatory change could impose
disproportionate compliance burdens
on the Company. In 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.
Rating and
change
Current assessment of risk
This risk in considered
to be stable. All control
procedures are working
effectively. There have
been no material regulatory
changes that have
impacted the Company
during the year.
Decreasing RiskIncreasing Risk Stable Risk
Moderate RiskHigh Risk Low Risk
Strategic report
Annual Report and Financial Statements 2025
46
Custody and
depositary
risk
What is the risk?
Safe custody of the
Company’s assets may
be compromised through
control failures by the
Depositary, including
breaches of cyber security.
How is it managed?
To mitigate this risk, the Audit Committee
receives six-monthly reports from the
Depositary confirming safe custody 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
alsoagree uncertificated private portfolio
holdings to confirmations from investee
companies. The Custodian’s assured
internal controls reports are reviewed
byBaillie Gifford’s Business Risk
Department and a summary ofthekey
points is reported totheAudit Committee
and anyconcerns investigated.
Rating and
change
Current assessment of risk
This risk in considered
to be stable. All control
procedures are working
effectively.
Operational
risk
What is the risk?
Failure of Baillie Gifford’s
systems or those of
other third party service
providers could lead to
an inability to provide
accurate reporting
and monitoring or a
misappropriation of assets.
How is it managed?
To mitigate this risk, Baillie Gifford has a
comprehensive business continuity plan
which facilitates continued operation of
the business in the event of a service
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
theCompany.
Rating and
change
Current assessment of risk
This risk in considered
to be stable. All control
procedures are working
effectively.
Leverage risk
What is the risk?
The Company
mayborrow money for
investmentpurposes. If the
investments fallinvalue,
any borrowings will
magnify theimpact of
this loss. If borrowing
facilities are not renewed,
the Company may have to
sell investments to repay
borrowings. The Company
can also make use
ofderivative contracts.
How is it managed?
To mitigate this risk, all borrowings
require the prior approval of the Board
and leverage levels are discussed
by the Board and Managers at every
meeting. Covenant levels are monitored
regularly. The majority of the Company’s
investments are in quoted securities that
are readily realisable. Further information
on leverage can be found on page 115
and the Glossary of terms and Alternative
Performance Measures on pages 120
and121.
Rating and
change
Current assessment of risk
This risk has increased
as during the year to
31July 2025 net gearing
has increased from nil to
5%. The risk level is low,
as current borrowings
are well below the levels
where loan covenants may
be breached. The current
one-year revolving credit
facility expires in March
2026. Initial conversations
with the loan provider have
taken place, and the Board
does not anticipate any
problems with the renewal
of the facility.
Decreasing RiskIncreasing Risk Stable Risk
Moderate RiskHigh Risk Low Risk
Pacific Horizon Investment Trust PLC
47
Climate and
governance
risk
What is the risk?
Perceived problems on
environmental, social
and governance (‘ESG’)
matters in an investee
company could lead to
that company’s shares
being less attractive
to investors, adversely
affecting its share price,
in addition to potential
valuation issues arising
from any direct impact
of the failure to address
the ESG weakness on the
operations or management
of the investee company
(for example in the event
of an industrial accident or
spillage). Repeated failure
by the Managers to identify
ESG weaknesses in
investee companies could
lead to the Company’s
own shares being less
attractive to investors,
adversely affecting
its own shareprice.
How is it managed?
This is mitigated by the Managers’ strong
ESG stewardship and engagement
policies which are available to view on
the Managers’ website, bailliegifford.com,
and which have been reviewed and
endorsed by the Company, and which
have been fully integrated into the
investment process. Due diligence
includes assessment of the risks inherent
in climate change (see page 51).
Rating and
change
Current assessment of risk
This risk in considered
to be stable. The
Investment Manager
continues to employ strong
ESG stewardship and
engagement policies.
Cyber
security risk
What is the risk?
A cyber attack on Baillie
Gifford’s network or that
of a third party service
provider could impact the
confidentiality, integrity
or availability of data
and systems. Emerging
technologies, including AI
and quantum computing
capabilities, may introduce
new and increase existing
information security risks
that impact operations.
How is it managed?
To mitigate this risk, the Audit Committee
reviews Reports on Internal Controls
published by Baillie Gifford and other
third party 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.
Rating and
change
Current assessment of risk
This risk in considered
to be stable. All control
procedures are working
effectively.
Emerging risk
As explained on page 66 the Board has regular discussions on principal risks and uncertainties, including any
risks which are not an immediate threat but could arise in the longer term. The Board considers that the key
emerging risks arise from the interconnectedness of global economies and the related exposure of the
investment portfolio to external and emerging threats such as the societal and financial implications of
escalating geopolitical tensions, cyber security risks including developing AI and quantum computing
capabilities and new infectious diseases or similar public health threats. This is mitigated by the Managers’
close links to the investee companies and their ability to ask questions on contingency plans. The Managers
believe the impact of such events may be to slow growth rather than to invalidate the investment rationale
over the long term.
Decreasing RiskIncreasing Risk Stable Risk
Moderate RiskHigh Risk Low Risk
Strategic report
Annual Report and Financial Statements 2025
48
Promoting the success of the Company
(section 172 statement)
Under section 172 of the Companies Act 2006,
the directors of a company must act in the way
they consider, in good faith, would be most likely
to promote the success of the company for the
benefit of its members as a whole, and in doing
so have regard (amongst other matters and to the
extent applicable) to: a) the likely consequences
of any decision in the long term, b) the interests
of the company’s employees, c) the need to
foster the company’s business relationships with
suppliers, customers and others, d) the impact of
the company’s operations on the community and
the environment, e) the desirability of the company
maintaining a reputation for high standards of
business conduct, and f) the need to act fairly as
between members of the company.
In this context, having regard to Pacific Horizon
being an externally-managed investment company
with no employees, the Board considers the
Company’s key stakeholders to be: its existing and
potential new shareholders; its externally-appointed
Managers (Baillie Gifford); other professional service
providers (corporate Broker, Registrar, Auditors
and Depositary); lenders; wider society and the
environment.
The Board considers that the interests of the
Company’s key stakeholders are aligned, in terms
of wishing to see the Company deliver sustainable
long-term growth, in line with the Company’s
stated objective and strategy, and meet the highest
standards of legal, regulatory, and commercial
conduct, with the differences between stakeholders
being merely a matter of emphasis on those
elements.
The Board’s methods for assessing the Company’s
progress in the context of its stakeholders’ interests
are set out below.
Stakeholder Why we engage How we engage and what we do
Shareholder Shareholders are, collectively, the
Company’s owners: providing them with a
return for their investment in accordance
with the Company’s investment policy and
objective is the reason for its existence.
The Board places great importance on communication
with shareholders. The Annual General Meeting provides
an opportunity for the Board and Managers to present to
shareholders on the Company’s performance, future plans
and prospects. It also allows shareholders the opportunity to
meet with the Board and Managers and raise questions and
concerns. The Chair is available to meet with shareholders as
appropriate. The Managers meet regularly with shareholders
and their representatives, reporting their views back
to the Board. Directors also attend certain shareholder
presentations, in order to gauge shareholder sentiment first
hand. Shareholders may also communicate with members of
the Board at any time by writing to them at the Company’s
registered office or to the Company’s broker. These
communication opportunities help inform the Board when
considering how best to promote the success of the Company
for the benefit of all shareholders over the long term.
Baillie Gifford –
Managers and
Secretaries
The Company’s Board has delegated the
management of the Company’s portfolio,
and the administration of the Company’s
operations including fulfilment of regulatory
and taxation reporting requirements, to
Baillie Gifford. Baillie Gifford is therefore
responsible for the substantial activities of
the Company and has the most immediate
influence on its conduct towards the other
stakeholders, subject to the oversight and
strategic direction provided by the Board.
The Board seeks to engage with its Managers, in a
collaborative and collegiate manner, encouraging open and
constructive discussion and debate, while also ensuring that
appropriate and regular challenge is brought and evaluation
conducted. This approach aims to enhance service levels and
strengthen relationships with the Company’s providers, with a
view to ensuring the interests of the Company’s shareholders
are best served, by keeping cost levels proportionate and
competitive, and by maintaining the highest standards of
business conduct.
Pacific Horizon Investment Trust PLC
49
Stakeholder Why we engage How we engage and what we do
Portfolio companies As all of the Company’s operations are
conducted by third party professional
providers, it is the companies held in its
investment portfolio which have the primary
real-world impact in terms of social and
environmental change, both positively
and negatively, as well as generating,
through their commercial success, the
investment growth sought by the Company’s
shareholders. The investee companies
have an interest in understanding their
shareholders’ investment rationale in
order to assure themselves that long-term
business strategies will be supported.
The Board is cognisant of the need to consider the impact
of the Company’s investment strategy and policy on wider
society and the environment. The Board considers that its
oversight of environmental, social and governance (‘ESG’)
matters is an important part of its responsibility to all
stakeholders. The Board’s review of the Managers includes
an assessment of their ESG approach and its application in
making investment decisions. The Board regularly reviews
governance engagement reports, which document the
Managers’ interactions with investee companies on ESG
matters (see pages 15 and 18).
Brokers The Company’s brokers provide an interface
between the Company’s Board and its
institutional shareholders.
The Company’s brokers regularly attend Board meetings,
and provide reports to those meetings, in order to keep the
Board apprised of shareholder and wider market sentiment
regarding the Company. They also arrange forums for
shareholders to meet the Chair, or other Directors, outwith
the normal general meeting cycle.
Registrar The Company’s registrar provides an
interfacewith those shareholders who
holdthe Company’s shares directly.
The Company Secretaries liaise with the registrar to
ensure the frequency and accuracy of communications
to shareholders is appropriate, and monitor shareholder
correspondence to ensure that the level of service provided
by the Registrar is acceptable. The Managers’ risk function
reviews the registrars’ internal controls report and reports on
the outcome of this review to the Board.
Auditor The Company’s Auditor has a responsibility to
provide an opinion on whether the Company’s
Financial Statements as a whole are free from
material misstatement, as set out in more
detail in the Auditor’s report to the Members
on pages 79 to 85.
The Company’s Auditor meets with the Audit Committee, in
the absence of the Managers where deemed necessary, and
the Managers undertake to provide all information requested
by the Auditor in connection with the Company’s annual audit
promptly and to ensure that it is complete and accurate in all
respects.
Depositary
and Custodian
The Depositary is responsible for the
safekeeping of the Company’s financial
instruments, as set out in more detail on
page57.
The Depositary provides the Audit Committee with a report
on its monitoring activities. The Investment Manager’s
Business Risk team reviews the relevant Bank of New York
Mellon internal controls report and reports any relevant
matters to the Audit Committee. This approach aims to
enhance service levels and strengthen relationships with the
Company’s providers, with a view to ensuring the interests of
the Company’s shareholders are best served by keeping cost
levels proportionate and competitive, and by maintaining the
highest standards of business conduct.
Lenders Lenders such as holders of debt instruments
(debentures, bonds and private placement loan
notes) and banks providing fixed or revolving
credit facilities provide the Company’sgearing
as described on page 43 and have aninterest
intheCompany’s ongoing financial health
andviability.
The Company’s legal advisers review all legal agreements
in connection with the Company’s debt arrangements
and advise the Board on the appropriateness of the terms
and covenants therein. The Managers and Secretaries
ensure that the frequency and accuracy of reporting on,
for example, covenant certification, is appropriate and
that correspondence from the lenders receives a prompt
response.
Strategic report
Annual Report and Financial Statements 2025
50
Stakeholder Why we engage How we engage and what we do
AIC/industry peers The Association of Investment Companies
(‘AIC’) and the Company’s investment
trustindustry peers have an interest in
the Company’s conduct and performance,
asadverse market sentiment towards
oneinvestment trust can affect attitudes
towards the wider industry.
The Company is a member of the AIC, and the Directors
and/orthe Managers and Secretaries (as appropriate)
participate in technical reviews, requests for feedback on
proposed legislation or regulatory developments, corporate
governance discussions and/or training.
Investment platforms Investment platforms provide an interface
withshareholders who invest in the
Companyindirectly.
The Managers liaise with the various investment platforms
onstrategies for improving communications with the
Company’s shareholders who hold their shares via these
platforms. An annual timetable of key dates is published on
the Company’s page of the Managers’ website, for the ease
of reference of such shareholders.
Wider society and
the environment
No entity, corporate or otherwise, can exist
without having an influence on the society
inwhichit operates or utilising the planet’s
resources. Through its third-party relationships,
as noted above, the Company seeks to be a
positive influence and, in circumstances
where that is not possible, to mitigate its
negative impacts insofar as is possible.
The Board and Managers’ interactions with the various
stakeholders as noted above form the principal forms of
direct engagement with wider society and in respect of the
environment (commercial, financial, and in terms of planetary
health and resources).
The Board recognises the importance of keeping
theinterests of the Company and its stakeholders,
inaggregate, firmly front of mind in its key decision
making. The Company Secretaries are available
at all times to the Board to ensure that suitable
consideration is given to the range of factors to
which the Directors should have regard. In addition
to ensuring that the Company’s stated investment
objective was being pursued, key decisionsand
actionsduring the year which required the
Directorsto have regard to applicable section
172factors included:
• the buying back of 5,008,324 of the Company’s
own shares into treasury at a discount to net asset
value, for subsequent reissue, in order to ensure
the Company’s shareholders found liquidity for
their shares when natural market demand was
insufficient, and on terms that enhance net asset
value for remaining shareholders.
• assessing Director remuneration to ensure that it
is set at a level that attracts new Directors.
• the Company announced its intention to introduce
a five-year performance related conditional tender
for up to 25% of the Company’s issued share
capital (excluding treasury shares). The Tender
Offer will be conditional on the Company’s NAV
total return underperforming against its reference
index, currently the MSCI All Country Asia Ex
Japan Index total return in sterling, over the five
year period from close of business on 31March
2025 to close of business on 31 March 2030.
Employees, human rights and community
issues
The Board recognises the requirement to provide
information about employees, human rights
and community issues. As the Company has no
employees, all its Directors are non-executive
and all its functions are outsourced, there are no
disclosures to be made in respect of employees,
human rights and community issues.
Gender representation
As at 31 July 2025, and the date of this report, the
Board comprises five Directors, three male and
twofemale. The Company has no employees. The
Board’s policy on diversity is set out on page 65.
Pacific Horizon Investment Trust PLC
51
Environmental, social and governance policy
Details of the Company’s policy on socially
responsible investment can be found under
corporate governance and stewardship on page
68 with more details of the Managers’ approach to
socially responsible investment set out in the Baillie
Gifford statement on stewardship on page 19. The
Managers are signatories to the United Nations
Principles for Responsible Investment and the Carbon
Disclosure Project, the Net Zero Asset Managers
Initiative and are also members of the International
Corporate Governance Network and the Asian
Corporate Governance Association.
The Company considers that it does not fall within
thescope of the Modern Slavery Act 2015 and it
isnot, therefore, obliged to make a slavery and
human trafficking statement. In any event, the
Company considers its supply chains to be of
low risk as its suppliers are typically professional
advisers. A statement by the Managers under the
Act has been published on the Managers’ website
atbailliegifford.com.
Climate change
The Board recognises that climate change poses
aserious threat to our environment, our society
andto economies and companies around the
globe.Addressing the underlying causes is likely to
result in companies that are high emitters of carbon
facing greater societal and regulatory scrutiny and
higher costs to account for the true environmental
impact of their activities. The Company’s TCFD
report is available on the Company’s page of
the Managers’ website at pacifichorizon.co.uk.
Thisreport is a means by which the portfolio’s
carbon footprint and exposure to climate risk are
measured and reported. Companies disclosing their
emission and communicating emissions plans will
be a helpful place from which to begin more useful
discussions with management teams, industry
experts and regulators.
Although this can direct our efforts, the Managers
believe that carbon footprint metrics in isolation are
unhelpful – that some firms pollute more than others is
a mostly meaningless observation. More significant is
the ability of Pacific Horizon to deploy patient capital
into innovative new technologies with the potential to
accelerate the transition away from carbon. The
Managers utilise data sourced from a third-party
provider to map the carbon footprint of the portfolio.
This analysis estimates that the carbon intensity of
Pacific Horizon is 66.7% less than the index (MSCI All
Country Asia ex Japan) and is based on 77.8% of the
value of the Company’s equity portfolio which reports
on carbon emissions and other carbon related
characteristics. Under the Streamlined Energy and
Carbon Reporting (‘SECR’) regulations, the Company
is not required to disclose energy and carbon
information (see page 61).
Future developments of the Company
The outlook for the Company is set out in the
Chairman’s statement on page 8 and in the
Managers’ review on pages 9 to 13. The Strategic
report which includes pages 5 to 51 was approved
by the Board of Directors and signed on its behalf on
22September 2025.
Roger Yates
Chairman
Governance
report
This governance report, which includes
pages 52 to 77 outlines the Board’s
approach to the governance of your
Company. We believe that good governance
builds better outcomes and we are
committed to high standards of corporate
governance and transparency.
Pacific Horizon Investment Trust PLC
53
Directors and
management
Roger Yates
Chairman
Appointed 2024
Sir Robert Chote
Director
Appointed 2020
Roger Yates was appointed a Director and Chairman in 2024. He
was Chief Executive of Henderson Global Investors from 1999 to
2008, prior to which he had fund management roles at Invesco/
LGT and Morgan Grenfell Asset Management. He is currently Senior
Independent Director (‘SID’) of Mitie Group plc, non-executive Director
of Jupiter Fund Management plc and Chair of The Biotech Growth
Trust PLC. He is the former SID of Jupiter Fund Management plc,
FTSE-100 St James’s Place and of IG Group plc. Amongst his other
roles, he is also a former Chair of Electra Private Equity plc and a
former non-executive Director of JP Morgan Elect PLC.
Sir Robert Chote was appointed a Director in 2020. He became
chairman of the Northern Ireland Fiscal Council in 2021 and will begin
his tenure as President of Trinity College, Oxford, in November 2025.
He became chairman of the UK Statistics Authority in 2022 and is
stepping down in September 2025. He served as chairman of the Office
for Budget Responsibility from 2010 to 2020 and previously served
as Director of the Institute for Fiscal Studies, as an advisor to the
International Monetary Fund and as Economics Editor of the Financial
Times. He is a visiting professor at the Department of Political Economy,
Kings College London and serves on an advisory board at the Centre for
Economic Performance of the London School of Economics.
Directors
Wee-Li Hee was appointed a Director in 2020. She is an experienced
Asian analyst and fund manager. Brought up in Singapore, she speaks
fluent Mandarin and studied in the UK at the University of Leeds and
the London School of Economics and Political Science. After
graduation, in 2002 she joined First State Investments in Singapore as
an analyst, subsequently moving to the firm’s Edinburgh office in 2005.
Having co-managed Scottish Oriental Smaller Companies Trust plc she
became lead manager in 2014, stepping back as a result of family
commitments to return to a co-manager role in 2017 and retiring
attheend of 2019. She is a CFA Charterholder and a director of
Melville Paisley Investments.
Wee-Li Hee
Director
Appointed 2020
Governance report
Annual Report and Financial Statements 2025
54
Angela Lane
Audit Committee
Chair
Appointed 2018
Angela Lane was appointed a Director in 2018. She is Chairman of
the Audit Committee and is the Senior Independent Director. She is a
Chartered Accountant and has held several non-executive and advisory
roles for private and quoted companies across a range of industries.
Previously she spent 18 years working as a private equity investor
for 3iplc. She is a non-executive director and Chair of the Audit
Committee of BlackRock Throgmorton Trust plc and Seraphim Space
Investment Trust. She is also a non-executive director of Aapogee,
the holding company for Kinstellar, a leading law firm in Central and
Eastern Europe and South East Asia.
Joe Studwell
Director
Appointed 2018
Richard Frank (‘Joe’) Studwell was appointed a Director in 2018. He has
spent over 25 years working in East Asia as a journalist, independent
researcher at Dragonomics and author under the name of Joe Studwell.
His published works include Asian Godfathers: Money and Power in
Hong Kong and South-East Asia and How Asia Works: Success and
Failure in the World’s Most Dynamic Region.
All of the Directors are members of the Nomination, Management Engagement and
Audit Committee.
Pacific Horizon Investment Trust PLC
55
Roddy is a portfolio manager in the Emerging Markets Equity Team. He
joined Baillie Gifford in 2006 and became a partner of the firm in 2023.
Hehasmanaged the Baillie Gifford Pacific Fund since 2010 and has
been manager of Pacific Horizon Investment Trust since 2021 (having
been Deputy since 2013). Roddy also co-manages the China equity
strategy. Prior to joining the team in 2008, he has also spent time in
the UK and European Equity teams. Roddy graduated BSc (Hons) in
Medical Biology from the University of Edinburgh in 2006.
Roderick Snell
Portfolio manager
Appointed 2013
Ben is a portfolio manager in the Emerging Markets Equity Team. He
has co-managed the Baillie Gifford Pacific Fund since 2021, and
became deputy manager of the Pacific Horizon Investment Trust in
January 2023. He joined Baillie Gifford in 2017 and has also spent time
in the UK, Global Discovery and Private Companies teams. Prior to
joining Baillie Gifford, he previously worked for RBS in their Group
Strategy and Corporate Finance Team. Ben is a Chartered Accountant
and a CFA Charterholder, and graduated BSc (Hons) in Mathematics
from the University of Edinburgh in 2012.
Ben Durrant
Deputy portfolio
manager
Appointed 2023
Portfolio managers
The Company has appointed Baillie Gifford & Co Limited, a wholly-owned subsidiary of Baillie Gifford & Co,
as its Alternative Investment Fund Managers (‘AIFM’) 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
(HongKong) Limited. Baillie Gifford & Co is an investment management firm formed in 1927 out of the
legalfirm Baillie & Gifford, WS, which has been involved in investment management since 1908.
Baillie Gifford is one of the largest investment trust Managers in the UK and currently manages twelve
close-ended investment companies. Baillie Gifford also manages open-ended investment companies,
together with investment portfolios on behalf of pension funds, charities and other institutional clients, both
in the UK and overseas. Funds under the management or advice of Baillie Gifford totalled around
£212billion. Based in Edinburgh, it is one of the leading privately owned investment management firms in
the UK, with 59 partners and a staff of around 1,600.
Baillie Gifford & Co Limited and Baillie Gifford & Co are both authorised and regulated by the Financial
Conduct Authority.
Governance report
Annual Report and Financial Statements 2025
56
The Directors present their
report together with the Financial
Statements of the Company for
the year to 31 July 2025.
Directors’ report
Corporate governance
The corporate governance report is set out on
pages62 to 68 and forms part of this report.
Managers and Company Secretaries
Baillie Gifford & Co Limited, a wholly owned
subsidiary of Baillie Gifford & Co, has been
appointed as the Company’s Alternative Investment
Fund Managers (‘AIFM’) 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 Investment Management Agreement sets out
the matters over which the Managers have authority
in accordance with the policies and directions of,
and subject to restrictions imposed by, the Board.
The Managers may terminate the Management
Agreement on six months’ notice and the
Company may terminate on three months’ notice.
Compensation fees would only be payable in respect
of the notice period if termination were to occur
within a shorter notice period.
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. The Board is of the view that calculating
the fee with reference to performance would be
unlikely to exert a positive influence on performance.
Pacific Horizon Investment Trust PLC
57
The Board considers the Company’s investment
management and secretarial arrangements on an
ongoing basis and a formal review is conducted by
the Management Engagement Committee annually.
The following topics, amongst others, are considered
in the review:
• the quality of the personnel assigned to handle
theCompany’s affairs;
• the investment process and the results achieved
todate;
• the administrative services provided by the
Secretaries; and
• the marketing effort undertaken by the Managers.
Following the most recent review, it is the opinion
of the Management Engagement Committee that
the continuing appointment of Baillie Gifford & Co
Limited as AIFM and Company Secretaries, and
the delegation of the investment management
services to Baillie Gifford & Co and the further
sub-delegation of dealing activity and transaction
reporting to Baillie Gifford Overseas Limited and
Baillie Gifford Asia (Hong Kong) Limited, on the
terms agreed, is in the interests of shareholders
as a whole due to the strength of the investment
management team, the Managers’ commitment
to the investment trust sector and the quality
of the secretarial and administrative functions.
In undertaking the review, the Directors also
considered the execution of the agreed investment
strategy and the relative performance over the
medium term.
Depositary
The Bank of New York Mellon (International) Limited
has been appointed as the Company’s Depositary
in accordance with the requirements of the UK
Alternative Investment Fund Managers Regulations.
The Depositary’s responsibilities include cash
monitoring, safe keeping of the Company’s financial
instruments, verifying ownership and maintaining
a record of other assets and monitoring the
Company’s compliance with investment limits and
leverage requirements. The Company’s Depository
also acts as the Company’s Custodian.
Directors
Information about the Directors, including their
relevant experience, can be found on pages 53
and54.
All of the Directors are retiring at the Annual General
Meeting (‘AGM’) and all are offering themselves
for re-election. Following formal performance
evaluation, the Chairman confirms that the Board
considers that each Director’s performance
continues to be effective and that they remain
committed to the Company and capable of devoting
sufficient time to their roles. The Board therefore
recommends their re-election to shareholders.
Director indemnification and insurance
The Company has entered into qualifying third party
deeds of indemnity in favour of each of its Directors.
The deeds, which were in force during the year to
31 July 2025 and up to the date of approval of this
report, cover any liabilities that may arise to a third
party, other than the Company, for negligence,
default or breach of trust or duty. The Directors
are not indemnified in respect of liabilities to the
Company, any regulatory or criminal fines, any costs
incurred in connection with criminal proceedings in
which the Director is convicted or civil proceedings
brought by the Company in which judgement is given
against him/her. In addition, the indemnity does not
apply to any liability to the extent that it is recovered
from another person. The Company also maintains
Directors’ and Officers’ liability insurance.
Governance report
Annual Report and Financial Statements 2025
58
Conflicts of interest
Each Director submits a list of potential conflicts of
interest to the Nomination Committee on an annual
basis. The Committee considers these carefully,
taking into account the circumstances surrounding
them and makes a recommendation to the Board
on whether or not the potential conflicts should be
authorised. Board authorisation is for a period of
oneyear.
Having considered the lists of potential conflicts
there were no situations which gave rise to a direct
or indirect interest of a Director which conflicted
with interests of the Company.
Dividends
The Company’s objective is that of generating
capital growth. Consequently, the Managers do not
invest in companies based on the level of income
they may pay out as dividends.
As highlighted previously, the Board does not intend
to draw on the Company’s revenue reserve to pay
or maintain dividends. This year the net revenue
available for distribution to shareholders amounted
to £2,090,000, which is of sufficient magnitude
to require a distribution to be made to maintain
investment trust status.
The Directors are therefore recommending the
payment of a final dividend of 1.50pence per share.
Ifapproved, the recommended final dividend on the
ordinary shares will be paid on 1December 2025 to
shareholders on the register at the close of business
on 24October 2025. The ex-dividend dateis
23October 2025. The Company’s Registrar offers a
Dividend Reinvestment Plan (see page 115) and the
final date for elections for this dividend is
10November 2025.
Share capital
Capital structure
The Company’s capital structure as at 31 July 2025
consists of 85,648,427 ordinary shares of 10p each
(2024 – 90,656,751 ordinary shares), see note13.
At31July 2025, 6,426,534 shares were held in
treasury (2024 – 1,418,210 shares held in treasury).
There are no restrictions concerning the holding or
transfer of the Company’s ordinary shares and there
are no special rights attached to any of the shares.
Dividends
The ordinary shares carry a right to receive
dividends. Interim dividends are determined by the
Directors, whereas the proposed final dividend is
subject to shareholder approval.
Capital entitlement
On winding up, after meeting the liabilities of the
Company, the surplus assets will be paid to ordinary
shareholders in proportion to their shareholdings.
Voting
Each ordinary shareholder present in person or by
proxy is entitled to one vote on a show of hands and,
on a poll, to one vote for every share held.
Major interests disclosed in the Company’s shares
Name
Ordinary 10p
shares held
at 31 July 2025
% of
issue
Sarasin and Partners LLP (indirect)
*
7,75 7, 67 6 9.1%
City of London Investment
Management Company Limited
13,916,263 16.2%
* Previously disclosed as A&OT Investments Limited (direct).
Holdings above are stated as per the most recent
notification to a Regulatory Information Service.
Subsequent to the year end, City of London
Investment Management Company Limited advised
that they held 13,555,797 shares (16.0% of shares
in issue at 18 September 2025). There have been no
other changes to the major interests in the Company’s
shares disclosed up to 18September 2025.
Analysis of shareholders at 31 July
2025
Number of
shares held
2025
%
2024
Number of
shares held
2024
%
Institutions 30,222,457 35.3 22,842,467 25.2
Intermediaries 53,898,577 62.9 66,729,260 73.6
Individuals 1,047,853 1.2 537,820 0.6
Marketmakers 479,540 0.6 547,204 0.6
85,648,427 100.0 90,656,751 100.0
Annual General Meeting
The details of this year’s AGM, including the
proposed resolutions and information on the
deadlines for proxy appointments, can be found on
pages 109 to 113. Shareholders who hold shares in
their own name on the main register will be provided
with a Form of Proxy. If you hold shares through a
share platform or other nominee, the Board would
encourage you to contact these organisations
directly as soon as possible to arrange for you to
vote at the AGM. The resolutions relating to the
renewal of the Directors’ authorities to issue and buy
back shares, are explained in more detail below.
Pacific Horizon Investment Trust PLC
59
Issuance of shares
At the last Annual General Meeting, the Directors
were granted shareholders’ approval for a general
authority to issue shares and also an authority to
issue shares or sell shares held in treasury on a non
pre-emptive basis (without first offering such shares
to existing shareholders pro-rata to their existing
holdings) for cash up to an aggregate nominal
amount of £906,168. Both authorities expire at
the forthcoming Annual General Meeting and the
Directors are seeking shareholders’ approval to
renew them for a further year, as detailed below.
During the year to 31 July 2025 the Company
bought back 5,008,324 shares (representing 5.5%
of the issued share capital at 31 July 2024) at a
discount to net asset value at a cost of £29,766,000
which are held in treasury. The Company did not
issue any ordinary shares from treasury. Between
1August and 18September 2025, no further shares
were issued and 1,181,983 shares were bought
back. 7,608,517 shares were held in treasury as at
18September 2025.
Resolution 11 in the Notice of Annual General
Meeting seeks a general authority for the Directors
to issue ordinary shares up to an aggregate nominal
amount of £844,664. This amount represents
approximately 10% of the Company’s total ordinary
share capital in issue at 18September 2025, being
the latest practicable date prior to the publication of
this document, and meets institutional guidelines.
No issue of ordinary shares will be made pursuant
to the authorisation in Resolution 11 which would
effectively alter the control of the Company without
the prior approval of shareholders in general meeting.
Resolution 12 which is being proposed as a special
resolution, seeks to renew the Directors’ authority
to allot equity securities, or sell treasury shares, for
cash without having to offer such shares to existing
shareholders pro-rata to their existing holdings, up
to a total nominal amount of £844,664 representing
approximately 10% of the Company’s total issued
ordinary share capital as at 18September 2025,
being the latest practicable date prior to publication
of this document.
The Directors consider that the authority proposed
to be granted by Resolution 12 continues to be
advantageous when the Company’s shares trade at
a premium to net asset value and the level of natural
liquidity in the market is unable to meet demand. The
Directors do not intend to use this authority to sell
or issue ordinary shares on a non pre-emptive basis
at a discount to net asset value. While the level of
the authority being sought is greater than the 5%
recommended by the Pre-Emption Group in their
Statement of Principles on disapplying pre-emption
rights, it is specifically recognised in the Statement
of Principles that, where an investment trust is
seeking authority to issue shares at a premium to the
underlying net asset value per share, this should not
normally raise concerns and the Directors consider
the greater flexibility provided by this authority to be
justified in the circumstances.
The authorities sought in Resolutions 11 and 12 will
continue until the conclusion of the Annual General
Meeting to be held in 2026 or on the expiry of 15
months from the passing of the resolutions, if earlier.
Such authorities will only be used to issue shares or
sell shares from treasury at a premium to net asset
value and only when the Directors believe that it
would be in the best interests of the Company to do
so. The Directors believe that the ability to buy back
shares at a discount and re-sell them or issue new
shares at a premium are useful tools in smoothing
supply and demand.
Market purchase of own shares by the Company
Resolution 13 seeks shareholders’ approval (by
way of a special resolution) to renew the authority
to purchase up to 14.99 per cent. of the ordinary
shares in issue (excluding treasury shares) as at
18September 2025, being the latest practicable
date prior to publication of this document (or, if less,
up to 14.99 per cent. of the ordinary shares in issue
(excluding treasury shares) on the date on which the
resolution is passed). This authority will expire at the
end of the Annual General Meeting of the Company
to be held in 2026. Such purchases will only be
made at a discount to the prevailing net asset value.
The Company may hold bought back shares in
treasury and then:
a. sell such shares (or any of them) for cash (or its
equivalent under the Companies Act 2006); or
b. cancel such shares (or any of them).
Shares will only be re-sold from treasury at (or at a
premium to) the net asset value per ordinary share.
Treasury shares do not receive distributions and
the Company will not be entitled to exercise the
voting rights attaching to them. In accordance with
the Listing Rules, the maximum price (exclusive of
expenses) that may be paid on the exercise of the
authority shall be an amount equal to the higher of:
i. 5 per cent. above the average closing price on the
London Stock Exchange of an ordinary share over
the five business days immediately preceding the
date of the purchase; and
Governance report
Annual Report and Financial Statements 2025
60
ii. the higher of the price of the last independent
trade and the highest current independent bid for
such a share on the London Stock Exchange.
The minimum price (again exclusive of expenses)
that may be paid will be the nominal value of an
ordinary share. Purchases of ordinary shares will
be made within guidelines established, from time to
time, by the Board. The Company does not have any
warrants or options in issue. The Directors intend
that this authority, if conferred, will be exercised
only if to do so would result in an increase in net
asset value per ordinary share for the remaining
shareholders and if it is in the best interest of
shareholders generally.
Recommendation
The Board considers that all the resolutions to be
proposed at the Annual General Meeting are in the
best interests of the Company and its shareholders
as a whole. Accordingly, the Board unanimously
recommends that you vote in favour of all of the
Resolutions, as the Directors intend to do in respect
of their own beneficial shareholdings.
Financial instruments
The Company’s financial instruments comprise
its investment portfolio, cash balances, bank
borrowings and debtors and creditors that arise
directly from its operations such as sales and
purchases awaiting settlement and accrued income.
The financial risk management objectives and
policies arising from its financial instruments and
theexposure of the Company to risk are disclosed
innote 18 to the Financial Statements.
Future developments of the Company
The outlook for the Company is set out in the
Chairman’s statement on page 8 and the Managers’
review on pages 9 to 13.
Going concern
In accordance with the Financial Reporting Council’s
guidance on going concern and liquidity risk, the
Directors have undertaken a rigorous review of the
Company’s ability to continue as a going concern.
The Company’s principal and emerging risks are
market related. An explanation of these risks and
how they are managed is contained on pages 44 to
47 and in note 18 to the Financial Statements. 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.
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. Stress testing was performed
in the year and no matters were raised. Details of the
Company’s multi-currency revolving credit facility with
Royal Bank of Scotland International Limited which is
due to expire in March 2026 are shown in note 11 on
page 97. There have been initial conversations with
the loan provider and the Board does not anticipate
any problems regarding the renewal of the loan facility.
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.
The Company’s primary third party suppliers,
including its Managers and Secretaries, Custodian
and Depositary, Registrar, Auditor and Broker, are
not experiencing significant operational difficulties
affecting their respective services to the Company.
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. The Financial Statements have
been prepared on the going concern basis; having
assessed the principal and emerging risks and other
matters set out in the Viability Statement on page 43
(which assesses the prospects of the Company over
a period of three years) it is the Directors’ opinion that
the Company will continue in operational existence
for a period of at least twelve months from the date of
approval of these Financial Statements.
Articles of Association
The Company’s Articles of Association may only be
amended by special resolution at a general meeting
of shareholders.
Disclosure of information to Auditor
The Directors confirm that so far as each of
the Directors is aware there is no relevant audit
information of which the Company’s auditor is
unaware and the Directors have taken all the steps
that they might reasonably be expected to have
taken as Directors in order to make themselves
aware of any relevant audit information and to
establish that the Company’s Auditor is aware
ofthatinformation.
Pacific Horizon Investment Trust PLC
61
Independent Auditor
The Auditor, BDO LLP, is willing to continue
in office and, in accordance with section 489
and section 491(1) of the Companies Act 2006,
resolutions concerning BDO LLP’s reappointment
and remuneration will be submitted to the Annual
General Meeting.
Post balance sheet events
The Directors confirm, up to 22September 2025,
that there have been no significant post Balance
Sheet events which require adjustment to the
Financial Statements. Note 19 details the further
loan drawdowns from the Company’s multi-currency
revolving credit facility.
Greenhouse Gas Emissions and Streamlined
Energy & Carbon Reporting (‘SECR’)
All of the Company’s activities are outsourced
to third parties. The Company therefore has no
greenhouse gas emissions to report from its
operations, nor does it have responsibility for
any other emissions producing sources under
the Companies Act 2006 (Strategic Report and
Directors’ Reports) Regulations 2013. For the
reasons set out above, the Company considers itself
to be a low energy user under the SECR regulations
and therefore, is not required to disclose energy and
carbon information.
Bribery act
The Company has a zero tolerance policy towards
bribery and is committed to carrying out business
fairly, honestly and openly. The Managers also adopt
a zero tolerance approach and have policies and
procedures in place to prevent bribery.
Criminal Finances Act 2017
The Company has a commitment to zero tolerance
towards the criminal facilitation of tax evasion.
On behalf of the Board
Roger Yates
Chairman
22 September 2025
Governance report
Annual Report and Financial Statements 2025
62
Compliance
The FRC has confirmed that AIC member companies
who report against the AIC Code will be meeting
their obligations in relation to the UK Code (the
AIC Code can be found at theaic.co.uk). The Board
confirms that the Company has complied throughout
the year under review with the relevant provisions of
the Code and the recommendations of the AIC Code
with the exception that the Company does not have
a separate internal audit function as explained on
page 70.
The Board
The Board has overall responsibility for the
Company’s affairs. It has a number of matters
formally reserved for its approval including
strategy, investment policy, currency hedging,
gearing, treasury matters, dividend and corporate
governance policy. The Board also reviews the
Financial Statements, investment transactions,
revenue budgets and performance of the Company.
Full and timely information is provided to the Board
to enable the Board to function effectively and to
allow Directors to discharge their responsibilities.
As at 31 July 2025 and up to the date of this report
the Board comprises five Directors all of whom are
non-executive and independent.
The Chairman, Mr RP Yates, is responsible for
organising the business of the Board, ensuring its
effectiveness and setting its agenda.
Ms AC Lane is the Senior Independent Director (‘SID’)
and, as such, available to shareholders if they have
concerns not properly addressed to the Chairman.
The SID leads the Chairman’s performance appraisal
and chairs the Nomination Committee when it
considers the Chairman’s succession.
Corporate
governance report
The Board is committed to
achieving and demonstrating
high standards of corporate
governance. This statement
outlines how the principles of the
2018 UK Corporate Governance
Code (‘Code’), which can be found
at frc.org.uk, and the relevant
principles of the Association of
Investment Companies (‘AIC’)
Code of Corporate Governance
(‘AIC Code’) issued in 2019 were
applied throughout the financial
year. The AIC Code provides a
framework of best practice for
investment companies and can
befoundat theaic.co.uk.
Pacific Horizon Investment Trust PLC
63
Board of Directors
Comprises independent
non-executive directors
Chair: Roger Yates
Senior Independent Director:
Angela Lane
Audit
Committee
Chair: Angela Lane
Purpose
To provide oversight of:
– the financial reporting process;
– the audit process;
– the Company’s system of internal
controls; and
– compliance with laws and
regulations.
Management Engagement
Committee
Chair: Roger Yates
Purpose
To ensure:
– Managers remain suitable to manage
the portfolio.
– The management contract is
competitive and reasonable for the
shareholders.
– The Company maintains appropriate
administrative and company
secretarial support.
Nomination
Committee
Chair: Roger Yates
Purpose
To oversee:
– Board recruitment;
– succession planning; and
– Board appraisals including
identifying training needs.
Dashed arrows indicate reporting lines
Third-party service providers
appointed by the Board
BDO LLP
Auditor
The Bank of
New York Mellon
(International)
Limited
Depositary
Computershare
Investor Services
PLC
Registrar
Baillie Gifford
Alternative Investment Fund
Managers and Company
Secretaries:
Baillie Gifford & Co Limited (wholly
owned subsidiary of Baillie Gifford & Co)
Dealing activity and transaction reporting:
Baillie Gifford Overseas Limited and
Baillie Gifford Asia (Hong Kong) Limited
Portfolio management:
Baillie Gifford & Co
JP Morgan
Cazenove
Company broker
Governance report
Annual Report and Financial Statements 2025
64
The executive responsibility for investment
management has been delegated to the Company’s
Alternative Investment Fund Managers (‘AIFM’),
Baillie Gifford & Co Limited, and, in the context of
a Board comprising only non-executive Directors,
there is no chief executive officer.
The Directors believe that the Board has a balance
of skills and experience that enable it to provide
effective strategic leadership and proper governance
of the Company. Information about the Directors,
including their relevant experience, can be found
onpages 53 and 54.
There is an agreed procedure for Directors to
seekindependent professional advice, if necessary,
at the Company’s expense.
Appointments to the Board
New Directors are appointed by the Board, following
recommendation to the Board by the Nomination
Committee. The terms and conditions of Directors’
appointments are set out in formal letters of
appointment which are available for inspection
onrequest.
Under the provisions of the Company’s Articles of
Association, a Director appointed during the year is
required to retire and seek approval by shareholders
at the next Annual General Meeting.
In accordance with the AIC Code of Corporate
Governance, all Directors are subject to annual
re-election.
The names of Directors retiring and offering
themselves for re-election together with the reasons
why the Board supports this are set out on page 57.
Independence of Directors
All the Directors are considered by the Board to
be independent of the Managers and free of any
business or other relationship which could interfere
with the exercise of their independent judgement.
The Directors recognise the importance of
succession planning for company boards and review
the Board’s composition annually. The Board is of
the view that length of service will not necessarily
compromise the independence or contribution of
directors of an investment trust company, where
continuity and experience can be a benefit to the
Board. The Board concurs with the view expressed
in the AIC Code that long serving Directors should
not be prevented from being considered
independent.
Following a formal performance evaluation, the
Board concluded that its members continued to be
independent in character and judgement and their
skills and experience added significantly to the
strength of the Board.
Meetings
There is an annual cycle of Board meetings which
isdesigned to address, in a systematic way, overall
strategy, review of investment policy, investment
performance, marketing, revenue budgets, dividend
policy and communication with shareholders.
TheBoard considers that it meets sufficiently regularly
to discharge its duties effectively. The table below
shows the attendance record for the core Board and
Committee Meetings held during the year, excluding
ancillary and sub-committee meetings. The Annual
General Meeting was attended by all Directors.
Directors’ attendance at meetings
Board
Audit
Committee
Nomination
Committee
Management
Engagement
Committee
Number of meetings 4 2 1 1
RW Chote 4 2 1 1
W Hee 4 2 1 1
AC Lane 4 2 1 1
RF Studwell 4 2 1 1
RP Yates 4 2 1 1
Chairperson and Directors’ tenure
The Nomination Committee has considered the
question of tenure for directors and has concluded
that there should be a maximum time limit of nine
years for a director or chairperson to serve on the
Board, under normal circumstances. The Nomination
Committee keeps under review the balance of skills,
knowledge, experience, performance and length
of service of the Directors, ensuring the Board has
the right combination of skills and preservation
of knowledge and experience, balanced with the
appointment of new Directors, bringing in fresh ideas
and perspective.
Pacific Horizon Investment Trust PLC
65
Management Engagement Committee
All Directors are members of the Management
Engagement Committee, which is chaired by the
Chairman of the Board. The Board considers each
member of the Committee to be independent. To
discharge its duties, the Committee met during the
year to consider: the performance and suitability
of the Manager; the terms and conditions of
the AIFM Agreement, including fees; and the
Committee’s Terms of Reference. The Committee’s
Terms of Reference are available on request from
the Company and on the Company’s page of the
Managers’ website: pacifichorizon.co.uk.
Nomination Committee
The Nomination Committee consists of all the
non-executive Directors and the Chairman of
the Board is Chairman of the Committee. The
Committee meets on an annual basis and at such
other times as may be required. The Committee has
written terms of reference that include reviewing
the composition of the Board, identifying and
nominating new candidates for appointment to the
Board, Board appraisal, planning for an orderly
succession including overseeing development of
a diverse pipeline for succession, and training.
The Committee also considers whether Directors
should be recommended for re-election by
shareholders. The Committee is responsible for
considering Directors’ potential conflicts of interest
and for making recommendations to the Board on
whether or not potential conflicts are material to an
individual Director’s performance. The Committee’s
Terms of Reference are available on request from
the Company and on the Company’s page of the
Managers’ website: pacifichorizon.co.uk.
Diversity policy
Appointments to the Board are made on merit
with due regard for the benefits of diversity
including gender, social and ethnic backgrounds,
cognitive and personal strengths. The priority in
appointing new directors is to identify the candidate
with the best range of skills and experience to
complement existing Directors. Within the context
of a small, entirely non-executive Board, a single
appointment or retirement can have a significant
impact on percentage representation, and a limited
number of senior roles are available. The Board
will endeavour to comply with the UK Listing
Rules diversity targets more often than not but
notes that an orderly succession plan can, when
implemented thoughtfully and having regard to the
best interests of the Company and its shareholders,
take a significant period of time to develop and may
result in periods when the diversity targets are not
met. Furthermore, the particular circumstances
of directors may prevent them from being able to
undertake the responsibilities of a senior role. In
such circumstances, the value brought to the Board
by their inclusion outweighs the ambition of meeting
diversity targets.
Board composition
In order to fulfil its obligations, the Board recognises
the importance of having a range of skilled and
experienced Directors, balancing the benefits of
length of service and knowledge of the Company with
the desirability of ensuring regular refreshment of the
Board. The Board reviews its composition annually.
The following disclosures are provided in respect
of the UK Listing Rules targets that: i) 40% of a
board should be women; ii) at least one senior role
should be held by a woman; and iii) at least one
board member should be from a non-white ethnic
background, as defined by the Office of National
Statistics criteria.
As an externally managed investment company
with no chief executive officer or chief financial
officer, the roles which qualify as senior under FCA
guidance are Chair and Senior Independent Director
(‘SID’). The Board also considers Audit Committee
Chair to represent a senior role within this context.
The Board currently complies in all respects with the
UK Listing Rules targets.
Gender Number %
Senior
roles
Men 3 60
1
Women 2 40
1
Ethnic background Number %
Senior
roles
White 4 80
2
Asian/Asian British 1 20
–
Governance report
Annual Report and Financial Statements 2025
66
Performance evaluation
An appraisal of the Chairman, each Director and
a performance evaluation and review of both the
Board as a whole and of the individual Committees
was carried out during the year. After inviting each
Director and the Chairman to consider and respond
to evaluation questionnaires, the performance of
each Director was appraised by the Chairman and
the Chairman’s appraisal was led by Ms AC Lane, the
Company’s Senior Independent Director.
The appraisals and evaluations considered,
amongst other criteria, the balance of skills of the
Board, training and development requirements, the
contribution of individual Directors and the overall
effectiveness of the Board and its Committees.
Following this process, it was concluded that the
performance of each Director, the Chairman, the
Board and its Committees continues to be effective
and each Director and the Chairman are committed
to the Company. A review of the Chairman’s and
other Directors’ commitments was carried out
and the Board is satisfied that they are capable
of devoting sufficient time to the Company. There
were no significant changes to the Chairman’s other
commitments during the year.
Induction and training
New Directors are provided with an induction
programme which is tailored to the particular
circumstances of the appointee. During the year
updates on industry and regulatory matters were
provided to the Board by the Managers and
Secretaries. Other relevant training for Directors is
provided as necessary.
Remuneration
As all the Directors are non-executive there is
no requirement for a separate Remuneration
Committee. Directors’ fees are considered by the
Board as a whole within the limits approved by
shareholders. The Company’s policy on remuneration
is set out in the Directors’ Remuneration Report on
pages 72 to 75.
Audit Committee
The report of the Audit Committee is set out on
pages 69 to 71.
Internal controls and risk management
The Directors acknowledge their responsibility
for the Company’s risk management and
internal controls systems and for reviewing their
effectiveness, including with regard to preparation
of the Company’s Annual Report and Financial
Statements. These systems are designed to manage
rather than eliminate the risk of failure to achieve
business objectives and can only provide reasonable
but not absolute assurance against material
misstatement or loss.
The Board confirms that there is a continuing
process for identifying, evaluating and managing
the significant risks faced by the Company in
accordance with the FRC guidance ‘Guidance on
Risk Management, Internal Control and Related
Financial and Business Reporting’.
The practical measures to be taken in relation tothe
design, implementation and maintenance ofcontrol
policies and procedures to safeguard theCompany’s
assets and to manage its affairs properly,including
the maintenance of effective operational and
compliance controls have been delegated to
theManagers and Secretaries.
The Board oversees the functions delegated to the
Managers and Secretaries and the controls managed
by the AIFM in accordance with the UK Alternative
Investment Fund Managers Regulations (as detailed
below). Baillie Gifford & Co’s Internal Audit and
Compliance Departments and the AIFM’s permanent
risk function provide the Audit Committee with
regular reports on their monitoring programmes.
The reporting procedures for these departments
are defined and formalised within a service level
agreement. Baillie Gifford & Co conducts an annual
review of its system of internal controls which is
documented within an internal controls report which
complies with ISAE 3402 – Assurance Reports
on Controls at a Service Organisation. This report
is independently reviewed by Baillie Gifford &
Co’s auditor and a copy is submitted to the Audit
Committee.
A report identifying the material risks faced by the
Company and the key controls employed to manage
these risks is reviewed by the Audit Committee.
Pacific Horizon Investment Trust PLC
67
These procedures ensure that consideration is given
regularly to the nature and extent of risks facing the
Company and that they are being actively monitored.
Where changes in risk have been identified during
the year they also provide a mechanism to assess
whether further action is required to manage
theserisks.
The Directors confirm that they have reviewed the
effectiveness of the Company’s risk management
and internal controls systems which accord with
the FRC guidance ‘Guidance on Risk Management,
Internal Control and Related Financial and Business
Reporting’, and they have procedures in place to
review their effectiveness on a regular basis. No
significant weaknesses were identified in the year
under review and up to the date of this Report.
The Board confirms that these procedures have
been in place throughout the Company’s financial
year and continue to be in place up to the date of
approval of this Report.
To comply with the UK Alternative Investment Fund
Managers Regulations, The Bank of New York
Mellon (International) Limited act as the Company’s
Depositary and Baillie Gifford & Co Limited as
itsAIFM.
The Depositary’s responsibilities include cash
monitoring, safe keeping of the Company’s financial
instruments, verifying ownership and maintaining a
record of other assets and monitoring the Company’s
compliance with investment limits and leverage
requirements. The Depositary is liable for the loss of
financial instruments held in custody. The Depositary
will ensure that any delegate segregates the assets
of the Company. The Company’s Depositary also
acts as the Company’s Custodian. The Custodian
prepares reports on its key controls and safeguards
which are independently reviewed by its appointed
auditors, KPMG LLP. The 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 are investigated.
The Depositary provides the Audit Committee with a
report on its monitoring activities.
The AIFM has established a permanent risk
management function to ensure that effectiverisk
management policies and procedures are inplace
and to monitor compliance with risk limits. TheAIFM
has a risk management policy which coversthe
risksassociated with the management ofthe
portfolio, and the adequacy and effectivenessof
thispolicy is reviewed and approved atleast
annually. This review includes the risk management
processes and systems and limits for each risk area.
The risk limits, which are set by the AIFM and
approved by the Board, take into account the
objectives, strategy and risk profile of the portfolio.
These limits including leverage (see page 115) are
monitored and the sensitivity of the portfolio to key
risks is undertaken periodically as appropriate to
ascertain the impact of changes in key variables
in the portfolio. Exceptions from limits monitoring
and stress testing undertaken by Baillie Gifford’s
Business Risk Department are escalated to the
AIFM and reported to the Board along with remedial
measures being taken.
Relations with shareholders
The Board places great importance on communication
with shareholders. The Company’s Managers meet
regularly with shareholders and their representatives
and report shareholders’ views to the Board. The
Chairman and Directors also attend shareholder
presentations in London and Edinburgh with the
Managers, as well as maintaining open lines of
communication with market participants and investors
in the Company, separate of the Managers’ involvement,
in order to ascertain views on corporate matters. The
Chairman is available to meet with shareholders as
appropriate. Shareholders wishing to communicate
with any members of the Board may do so by writing
to them at the Secretaries’ address or through the
Company’s Corporate Broker, JP Morgan Cazenove
(see contact details on page 123).
The Company’s Annual General Meeting provides a
forum for communication with all shareholders. The
results of the poll will be announced and published
on the Company’s page of the Managers’ website
pacifichorizon.co.uk shortly after the conclusion
of the meeting. Thenotice period for the Annual
General Meeting isatleast twenty working days.
Shareholders and potential investors may obtain
up-to-date information on the Company at
pacifichorizon.co.uk.
Governance report
Annual Report and Financial Statements 2025
68
Corporate governance and stewardship
The Company has given discretionary voting powers
to Baillie Gifford & Co. The Managers vote against
resolutions they consider may damage shareholders’
rights or economic interests and report their actions
to the Board.
The Board believes that it is in the shareholders’
interests to consider environmental, social and
governance (‘ESG’) factors when selecting and
retaining investments and has asked the Managers
to take these issues into account as long as the
investment objectives are not compromised. The
Managers do not exclude companies from their
investment universe purely on the grounds ofESG
factors but adopt a positive engagementapproach
whereby matters are discussed withmanagement
withthe aim of improving the relevant policies
andmanagement systems and enabling the
Managers to consider how ESG factors could
impact long-term investment returns. The Managers’
statement of compliance with the UK Stewardship
code can be found on the Managers’ website at
bailliegifford.com. The Managers’ policy has been
reviewed and endorsed by the Board. Baillie Gifford
& Co Limited as the Company’s Manager has
considered the Sustainable Finance Disclosures
Regulation (‘SFDR’) and further details can be
foundon page 118.
On behalf of the Board
Roger Yates
Chairman
22 September 2025
Pacific Horizon Investment Trust PLC
69
The Audit Committee consists of
all the Directors. The members
of the Committee consider that
they have the requisite financial
skills and experience to fulfil the
responsibilities of the Committee.
Ms AC Lane is Chairman of the
Audit Committee.
Audit
Committee report
The Committee’s authority and duties are clearly
defined within its written terms of reference
which are available on request from the Company
Secretaries and at pacifichorizon.co.uk. The terms
ofreference are reviewed annually.
The Committee’s effectiveness is reviewed on an
annual basis as part of the Board’s performance
evaluation process.
At least once a year the Committee meets with the
external Auditor without any representative of the
Managers being present.
Main activities of the Committee
The Committee met twice during the year and BDO
LLP, the external Auditor, attended both of those
meetings. Baillie Gifford & Co’s Internal Audit and
Compliance Departments and the AIFM’s permanent
risk function provided reports on their monitoring
programmes for each of these meetings.
The matters considered, monitored and reviewed
by the Committee during the course of the year
included the following:
• the results announcements and the Annual and
Interim Reports;
• the Company’s accounting policies and practices;
• the regulatory changes impacting the Company;
• the fairness, balance and understandability of
the Annual Report and Financial Statements and
whether it provided the information necessary
for shareholders to assess the Company’s
performance, business model and strategy;
• the effectiveness of the Company’s internal
control environment;
• the reappointment, remuneration and terms of
engagement of the external Auditor;
Governance report
Annual Report and Financial Statements 2025
70
• whether the audit services contract should be put
out to tender;
• the policy on the engagement of the external
auditor to supply non-audit services;
• the independence and objectivity of the external
Auditor and the effectiveness of the audit process;
• the need for the Company to have its own internal
Audit function;
• the internal controls reports received from the
Managers and Custodian; and
• the arrangements in place within Baillie Gifford
&Cowhereby their staff may, in confidence, raise
concerns about possible improprieties in matters
of financial reporting or other matters.
Internal audit
The Committee continues to believe that the
compliance and internal controls systems and the
internal audit function in place within the Investment
Managers provide sufficient assurance that a
sound system of internal control, which safeguards
shareholders’ investment and the Company’s assets,
is maintained. An internal audit function, specific to
the Company, is therefore considered unnecessary.
The external Auditor has adopted a wholly
substantive approach to testing and therefore the
absence of an internal audit function has not had an
impact on audit procedures.
Financial reporting
The Committee considers that the most significant
areas of risk likely to impact the Financial Statements
are the existence and valuation of investments,
as they represent 99.8% of total assets, and
the accuracy and completeness of income from
investments.
The majority of the investments are in quoted
securities and market prices are readily available
from independent external pricing sources. The
Committee reviewed Baillie Gifford’s Report on
Internal Controls which details the controls in place
regarding recording and pricing of investments and
the reconciliation of investment holdings to third
party data.
The value of all the listed investments as at 31 July
202
5
were agreed to external price sources. The
Committee reviewed the Manager’s valuation policy
for investments in unlisted (private) companies (as
described on page
34
) and approved the valuation of
the private investments following a detailed review
of the valuation of each investment and relevant
challenge where appropriate. The listed portfolio
holdings were agreed to confirmations from the
Company’s Custodian and the private company
holdings were agreed to confirmations from the
investee companies.
The Committee reviewed the Managers’ Report on
Internal Controls which details the controls in place
regarding completeness and accurate recording of
investment income. The accounting treatment of
each special dividend received or receivable during
the year was reviewed by the Managers.
The Committee considered the factors, including the
impact of increasing geopolitical tensions, that might
affect the Company’s viability over a period of three
years and its ability to continue as a going concern
for at least twelve months from the date of signing
ofthe Financial Statements, together with reports
from the Managers on the cash position and cash
flow projections of the Company, the liquidity of
itsinvestment portfolio, compliance with debt
covenants, availability of borrowing facilities,
andtheCompany’s ability to meet its obligations
asthey fall due. The Committee also reviewed
theviability statement on page
43
and statement
ongoing concern on page
60
. Following this
assessment, the Committee recommended to the
Board the appropriateness of the going concern
basis in preparing the Financial Statements and
confirmed the accuracy of the viability statement
and statement on going concern.
The Managers and Auditor confirmed to the
Committee that they were not aware of any material
misstatements in the context of the Financial
Statements as a whole and that the Financial
Statements are in accordance with applicable law
and accounting standards.
Pacific Horizon Investment Trust PLC
71
Internal controls and risk management
The Committee reviewed the effectiveness of the
Company’s risk management and internal controls
systems as described on page 66. No significant
weaknesses were identified in the year under review.
External Auditor
To fulfil its responsibility regarding the independence
and objectivity of the external Auditor, the
Committee reviewed:
• the Auditor’s audit plan which includes a report
from the Auditor describing its arrangements
to manage Auditor independence and received
confirmation of its independence; and
• the extent of non-audit services provided by the
external Auditor. There were no non-audit fees for
the year to 31 July 2025.
To assess the effectiveness of the external Auditor,
the Committee reviewed and considered:
• the Auditor’s fulfilment of the agreed audit plan;
• feedback from the Secretaries on the performance
of the audit team; and
• the Audit Quality Inspection Report from the FRC.
To fulfil its responsibility for oversight of the external
audit process the Committee considered and
reviewed:
• the Auditor’s engagement letter;
• the Auditor’s proposed audit strategy;
• the audit fee; and
• a report from the Auditor on the conclusion of
theaudit.
Following a competitive tender process, BDO LLP
were appointed as the Company’s Auditor at the
Annual General Meeting held on 15 November 2017.
The audit partners responsible for the audit are to be
rotated at least once every five years in accordance
with professional and regulatory standards in order
to protect independence and objectivity and to
provide fresh challenge to the business. Mr Chris
Meyrick, the current audit partner, has held this role
for three years.
BDO LLP has confirmed that it believes it is
independent within the meaning of regulatory and
professional requirements and that the objectivity of
the audit partner and staff is not impaired.
Having carried out the review described above,
theCommittee is satisfied that the Auditor remains
independent and effective for the purpose of this
year’s audit and, as such, has not considered it
necessary to put the audit services contract out
totender.
There are no contractual obligations restricting the
Committee’s choice of Auditor.
Accountability and audit
The respective responsibilities of the Directors
and the Auditor in connection with the Financial
Statements are set out on pages 76 and 77.
On behalf of the Board
Angela Lane
Chair of the Audit Committee
22 September 2025
Governance report
Annual Report and Financial Statements 2025
72
Directors’
remuneration report
The Directors’ Remuneration Policy is subject
to shareholder approval every three years or
sooner if an alteration to the policy is proposed.
The Remuneration Policy which is set out below
was approved at the Annual General Meeting in
November 2023 and no changes to the policy
areproposed.
Directors’ remuneration policy
The Board is composed wholly of non-executive
Directors, none of whom has a service contract with
the Company. There is no separate remuneration
committee and the Board as a whole considers
changes to Directors’ fees from time to time. Baillie
Gifford & Co Limited, the Company Secretaries,
provide comparative information when the Board
considers the level of Directors’ fees.
The Board’s policy is that the remuneration of
Directors should be set at a reasonable level that is
commensurate with the duties and responsibilities
of the role and consistent with the requirement
to attract and retain Directors of the appropriate
quality and experience. TheBoard believes that
the fees paid to the Directors should reflect the
experience of the Board as a whole, befair and
should take account of the level of fees paid by
comparable investment trusts. Any views expressed
by shareholders on the fees being paid to Directors
will be taken into consideration by the Board when
reviewing the Board’s policy on remuneration.
Non-executive Directors are not eligible for any
other remuneration or benefits apart from the
reimbursement of allowable expenses. There are no
performance conditions relating to Directors’ fees
and there are no long-term incentive schemes or
pension schemes. There is no notice period and no
compensation is payable on loss of office.
This report has been prepared in
accordance with the requirements
ofthe Companies Act 2006.
Pacific Horizon Investment Trust PLC
73
Statement by the Chairman
The Board reviewed the level of fees during the year
and it was agreed that the principal consideration
when assessing the level of fees was balancing
the cost of remuneration with ensuring that the
Company had the ability to attract and retain
directors with the necessary skills, knowledge and
experience to fulfil the Board’s responsibilities.
The Board were of the view that the investment
policy of the Company was at least as complex,
ifnotmore complex, than the majority of investment
trusts, as the Company’s Managers invest in a
large number of developed, emerging and frontier
markets on its behalf, each with a distinct legal
and regulatory framework. The Company also had
exposure to both listed and private equities and
could be exposed to complex securities such as
convertible bonds. The Board, which periodically
undertakes a skills audit, was of the opinion that
thescope of oversight required for this necessitated
a range of specialist skills to properly understand
theinvestment activities of the Company.
Following discussion and consideration of:
• the change to CPI and RPI over the period;
• the levels of remuneration for AIC Asia Pacific
andalso Baillie Gifford managed investment
trusts; and
• the market level of directors’ fees as reported by
Trust Associates in its September 2024 report;
it was agreed that, with effect from 1 August
2025, the Chairman’s fee would be increased from
£45,000 to £46,580, the other Directors’ fees would
be increased from £30,000 to £31,050 and the
additional fee for the Audit Committee Chair would
be increased from £7,500 to £7,760.
Fees were last increased on 1 August 2023.
Limits on Directors’ remuneration
The fees for the non-executive Directors are
payable monthly in arrears and are determined
within the limit set out in the Company’s Articles of
Association which is currently £200,000 per annum
in aggregate. Any change to this limit requires
shareholder approval.
The fees paid to Directors in respect of the year
ended 31 July 2025 and the expected fees payable
in respect of the year ending 31 July 2026 are set
out in the table below. The fees payable to the
Directors in the subsequent financial periods will
be determined following an annual review of the
Directors’ fees.
Expected
fees for the
year ending
31 July 2026
£
Fees as at
31 July
2025
£
Chairman’s fee 46,580 45,000
Non-executive Director fee 31,050 30,000
Additional fee for Audit
Committee Chair
7,760 7,500
Total aggregate annual
fees that can be paid to the
Directors in any year under the
Directors’ Remuneration Policy,
as set out in the Company’s
Articles of Association
200,000 200,000
Annual report on remuneration
An ordinary resolution for the approval of this report
will be put to the members at the forthcoming
Annual General Meeting.
The law requires the Company’s auditor to audit certain
of the disclosures provided in this report. Where
disclosures have been audited, they are indicated
assuch. The Auditor’s opinion is included in the
Independent Auditor’s Report on pages 79 to 85.
Governance report
Annual Report and Financial Statements 2025
74
Directors’ remuneration for the year (audited)
The Directors who served during the year received the following remuneration in the form of fees and
taxable benefits. This represents the entire remuneration paid to the Directors.
Name
2025
Fees
£
2025
Taxable
benefits*
£
2025
Total
£
% change
in year
2024
Fees
£
2024
Taxable
benefits*
£
2024
Total
£
RP Yates (appointed 13 March 2024) 45,000 3,800 48,800 149.7 17,321 2,224 19,545
RW Chote 30,000 2,120 32,120 (5.6) 30,000 4,011 34,011
W Hee 30,000 320 30,320 0.0 30,000 315 30,315
AC Lane 37,500 4,006 41,506 (0.3) 37,500 4,145 41,645
RF Studwell 30,000 3,433 33,433 1.5 30,000 2,930 32,930
RA Macpherson (retired 13 March 2024) – – – (100.0) 27,857 828 28,685
172,500 13,679 186,179 (0.5) 172,678 14,453 187,131
* Comprises travel and subsistence expenses incurred by or on behalf of the Directors in the course of travel to attend Board and Committee meetings
held at the Edinburgh offices of Baillie Gifford & Co Limited, the Company’s Secretaries. These amounts have been grossed up for income tax.
Annual percentage change in remuneration
This represents the annual percentage change
intheentire remuneration paid to the Directors.
Name
% from
2024 to
2025
% from
2023 to
2024
% from
2022 to
2023
% from
2021 to
2022
% from
2020 to
2021
RP Yates* 149.7 n/a n/a n/a n/a
RW Chote
†
(5.6) 7. 1 9.2 85.3 n/a
W Hee
#
0.0 8.3 10.9 9.8 500.1
AC Lane
+
(0.3) 10.0 11.4 35.3 1.5
RF Studwell 1.5 7. 6 6.8 24.6 (5.9)
RA Macpherson
††
n/a (32.7) 12.7 9.7 10.6
EG Creasy
‡
n/a n/a n/a n/a (73.7)
* Appointed 13 March 2024, receiving 4 months of remuneration in the
year to July 2024 of £19,545 and 12 months of renumeration in the year
to July 2025 of £48,800.
†
Appointed 25 November 2020, receiving 8 months of remuneration in
the year to July 2021 of £15,687 and 12 months of remuneration the
following year of £29,072, being an 85.3% increase.
#
Appointed 1 June 2020, receiving 2 months of remuneration in the year
to July 2020 of £3,833 and 12 months of remuneration the following
year of £23,000, being a 500.1% increase.
+ Audit Committee Chair from 10 November 2020, receiving 8 months of
an additional Audit Committee Chair fee of £5,000 in the year to July
2021 and 12 months of an additional £7,000 fee in the year to July 2022
being a 35.3% increase.
†† Retired 13 March 2024, receiving 12 months of renumeration in the year to
July 2023 of £42,654 and 8 months of renumeration in the year to July 2024
of £28,685 being a 32.7% decrease.
‡
Retired 10 November 2020, receiving 12 months of renumeration in the
year to July 2020 of £27,428 and 3 months of renumeration in the year
to July 2021 of £7,200 being a 73.7% decrease.
Directors’ interests (audited)
The Directors at the end of the year under
reviewandtheir interests in the Company are as
shown in the following table. There have been no
changes intimated in the Directors’ interests up to
18September 2025.
Name
Nature
of interest
Ordinary 10p
shares held
at 31 July
2025
Ordinary 10p
shares held
at 1 August
2024
RP Yates Beneficial 15,000 15,000
RW Chote Beneficial 500 500
W Hee Beneficial 10,000 10,000
AC Lane Beneficial 8,923 8,897
RF Studwell Beneficial 5,000 5,000
As per the Articles of Association, it is not a requirement for Directors to
hold shares in the Company.
Pacific Horizon Investment Trust PLC
75
Statement of voting at Annual General Meeting
At the last Annual General Meeting, of the
proxy votes received in respect of the Directors’
Remuneration Report, 99.2% were in favour, 0.4%
were against and votes withheld were 0.4%. At the
last Annual General Meeting at which the Directors’
Remuneration Policy was considered (November
2023), 99.1% of the proxy votes were in favour,
0.5% were against and votes withheld were 0.4%.
Relative importance of spend on pay
The table below shows the actual expenditure during
the year in relation to Directors’ remuneration and
distributions to shareholders.
2025
£’000
2024
£’000
Change
%
Directors’ remuneration 186 187 (0.5)
Dividends paid
toshareholders
2,398 2,954 (18.8)
Share buy-backs 29,766 2,345 1169.3
Company performance
The following graph compares, for the ten financial
years ended 31 July 2025, the share price total
return (assuming all dividends are reinvested) to
Pacific Horizon ordinary shareholders compared to
the total shareholder return on a notional investment
made up of shares in the component parts of the
FTSE All-Share Index. This index was chosen
for comparison purposes as it is a widely used
measure of performance for UK listed companies.
The Company’s comparative index is provided for
information purposes only.
Performance graph
Pacific Horizon’s share price, FTSE All-Share Index
and comparative index (figures rebased to 100 at
31July 2015)
Past performance is not a guide to future performance.
Approval
The Directors’ Remuneration Report on pages 72
to 75 was approved by the Board of Directors and
signed on its behalf on 22September 2025.
Roger Yates
Chairman
Cumulative to 31 July
2024
2015
2016
2019
2021
2023
2018
2017
2020
2022
2025
● Pacific Horizon
share price
Source: LSEG and underlying data providers. See disclaimer on page 119.
All figures are total return (see glossary of terms and alternative
performance measures on pages 120 and 121).
● FTSE All-Share
Index
● MSCI All Country Asia ex Japan
Index (in sterling terms)
0
50
100
150
200
250
300
350
400
450
Governance report
Annual Report and Financial Statements 2025
76
The Directors are responsible for keeping adequate
accounting records that are sufficient to show and
explain the Company’s transactions and disclose
with reasonable accuracy at any time the financial
position of the Company and enable them to ensure
that the Financial Statements comply with the
Companies Act 2006. They are also responsible for
safeguarding the assets of the Company and hence
for taking reasonable steps for the prevention and
detection of fraud and other irregularities.
The Directors are responsible for ensuring the
Annual Report and the Financial Statements are
made available on a website. Financial Statements
are published on the Company’s website in
accordance with legislation in the United Kingdom
governing the preparation and dissemination
of Financial Statements, which may vary from
legislation in other jurisdictions. The maintenance
and integrity of the Company’s website is the
responsibility of the Directors. The Directors’
responsibility also extends to the ongoing integrity
of the Financial Statements contained therein.
The Directors have delegated responsibility to the
Managers for the maintenance and integrity of the
Company’s page of the Managers’ website.
The Directors are responsible for preparing the
Annual Report and the Financial Statements in
accordance with applicable law and regulations.
Company law requires the Directors to prepare
Financial Statements for each financial year. Under
that law the Directors have prepared the Financial
Statements in accordance with United Kingdom
Generally Accepted Accounting Practice (United
Kingdom Accounting Standards, comprising FRS
102 ‘The Financial Reporting Standard applicable in
the UK and Republic of Ireland’, and applicable law).
Under company law the Directors must not approve
the Financial Statements unless they are satisfied
that they give a true and fair view of the state of
affairs of the Company and of the profit or loss of
the Company for that period. In preparing these
Financial Statements, the Directors are required to:
• select suitable accounting policies and then apply
them consistently;
• make judgements and accounting estimates that
are reasonable and prudent;
• state whether applicable United Kingdom
Accounting Standards, comprising FRS 102 have
been followed, subject to any material departures
disclosed and explained in the Financial
Statements;
• prepare the Financial Statements on the going
concern basis unless it is inappropriate to presume
that the Company will continue in business; and
• prepare a Directors’ Report, a Strategic Report
and a Directors’ Remuneration Report which
comply with the requirements of the Companies
Act 2006.
Statement of Directors’
responsibilities
in respect of the Annual Report and the Financial Statements
Pacific Horizon Investment Trust PLC
77
Directors’ confirmations
Each of the Directors, whose names and
functions are listed within the Directors and
Managers section confirm that, to the best of their
knowledge:
• 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;
• 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
• 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.
On behalf of the Board
Roger Yates
Chairman
22 September 2025
Notes
The following notes relate to financial statements published on a website and are not included in the printed
version of the Annual Report and Financial Statements:
• The maintenance and integrity of the Baillie Gifford & Co website is the responsibility of Baillie Gifford &
Co; the work carried out by the auditors does not involve consideration of these matters and accordingly,
the auditors accept no responsibility for any changes that may have occurred to the financial statements
since they were initially presented on the website.
• Legislation in the United Kingdom governing the preparation and dissemination of financial statements
may differ from legislation in other jurisdictions.
Financial
report
The Financial Statements for the
year to 31 July 2025 are set out
on pages 78 to 107 have been
prepared in accordance with
FRS102‘The Financial Reporting
Standard applicable in the UK
andRepublic of Ireland’.
Pacific Horizon Investment Trust PLC
79
Independent
auditor’s report
to the members of Pacific Horizon Investment Trust PLC
Basis for opinion
We conducted our audit in accordance with
International Standards on Auditing (UK) (ISAs
(UK)) and applicable law. Our responsibilities
under those standards are further described in the
Auditor’s responsibilities for the audit of the financial
statements section of our report. We believe that the
audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion. Our
audit opinion is consistent with the additional report
to the Audit Committee.
Independence
Following the recommendation of the audit
committee, we were appointed by the Board of
Directors on 15 November 2017 to audit the financial
statements for the year ended 31 July 2018 and
subsequent financial periods. The period of total
uninterrupted engagement including retenders and
reappointments is eight years, covering the years
ended 31 July 2018 to 31 July 2025. We remain
independent of the Company in accordance with the
ethical requirements that are relevant to our audit of
the financial statements in the UK, including the
FRC’s Ethical Standard as applied to listed public
interest entities, and we have fulfilled our other
ethical responsibilities in accordance with these
requirements. The non-audit services prohibited by
that standard were not provided to the Company.
Opinion on the financial statements
In our opinion the financial statements:
• give a true and fair view of the state of the
Company’s affairs as at 31 July 2025 and of its net
return for the year then ended;
• have been properly prepared in accordance with
United Kingdom Generally Accepted Accounting
Practice; and
• have been prepared in accordance with the
requirements of the Companies Act 2006.
We have audited the financial statements of Pacific
Horizon Investment Trust PLC (the ‘Company’) for
the year ended 31 July 2025 which comprise the
Income statement, the Balance sheet, the Statement
of changes in equity, the Cash flow statement
and Notes to the financial statements, including
a summary of significant accounting policies. The
financial reporting framework that has been applied
in their preparation is applicable law and United
Kingdom Accounting Standard, including Financial
Reporting Standard 102, the Financial Reporting
Standard applicable in the UK and Republic of
Ireland (United Kingdom Generally Accepted
Accounting Practice).
Financial report
Annual Report and Financial Statements 2025
80
Conclusions relating to going concern
In auditing the financial statements, we have
concluded that the Directors’ use of the going
concern basis of accounting in the preparation
of the financial statements is appropriate. Our
evaluation of the Directors’ assessment of the
Company’s ability to continue to adopt the going
concern basis of accounting included:
• Evaluating the appropriateness of the Directors’
method of assessing the going concern by
reviewing the information used by the Directors
incompleting their assessment; and
• Reviewing the forecasted cash flows that support
the Directors’ assessment of going concern,
challenging assumptions and judgements made
in the forecasts, and scenarios considered,
assessing them for reasonableness. In particular,
we considered the liquidity of the portfolio
and the available cash resource relative to the
forecastexpenditure.
Based on the work we have performed, we have
not identified any material uncertainties relating to
events or conditions that, individually or collectively,
may cast significant doubt on the Company’s
ability to continue as a going concern for a period
of at least twelve months from when the financial
statements are authorised for issue.
In relation to the Company’s reporting on how it has
applied the UK Corporate Governance Code, we
have nothing material to add or draw attention to in
relation to the Directors’ statement in the financial
statements about whether the Directors considered
it appropriate to adopt the going concern basis
ofaccounting.
Our responsibilities and the responsibilities of
the Directors with respect to going concern are
described in the relevant sections of this report.
Overview
2025 2024
Key audit
matters
Valuation and ownership
of investments
Materiality Company financial statements as a whole
£6.13m (2024: £6.04m) based on 1%
(2024: 1%) of net assets
An overview of the scope of our audit
Our audit was scoped by obtaining an understanding
of the Company and its environment, including
the Company’s system of internal control, and
assessing the risks of material misstatement in the
financial statements. We also addressed the risk of
management override of internal controls, including
assessing whether there was evidence of bias by
the Directors that may have represented a risk of
material misstatement.
Key audit matters
Key audit matters are those matters that, in our
professional judgement, were of most significance in
our audit of the financial statements of the current
period and include the most significant assessed
risks of material misstatement (whether or not due to
fraud) that we identified, including those which had
the greatest effect on: the overall audit strategy, the
allocation of resources in the audit, and directing the
efforts of the engagement team. These matters were
addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion
on these matters.
Pacific Horizon Investment Trust PLC
81
Key audit matter How the scope of our audit addressed the key audit matter
Valuation and ownership of investments (Note 1 and 9)
The investment portfolio at the year-end comprised of listed
equity investments valued at £611.9m and unlisted private
company investments valued at £39.9m.
Whilst we do not consider the valuation of the listed equity
investments to be subject to a significant degree of estimation or
judgement, there is a risk that the prices used by the Company
are not reflective of the fair value of those investments as at the
year end.
The unlisted investments have significant judgement involved
in selecting a valuation methodology and significant estimation
uncertainty involved in determining their valuations.
There is also a risk of error in the recorded of investment
holdings such that those recording do not appropriate reflect the
property of the Company.
For these reasons and the materiality of the balance in relation to
the financial statements as a whole, we considered this to be a
key audit matter.
We responded to this matter by testing the valuation and
ownership of the whole portfolio of listed investments, and
on a sample basis for unlisted investments. We performed the
following procedures:
With respect of the listed equity investments we:
• Confirmed the year-end bid price used by agreeing to
externally quoted prices;
• Assessed if there were contra indicators, such as liquidity
considerations, to suggest bid price is not the most
appropriate indication of fair value by considering the
realisation period for individual holdings; and
• Recalculated the valuation by multiplying the number of
shares held per the statement obtained from the custodian
by the valuation per share.
With respect to valuation of unlisted private company
investments, we assessed the design and implementation
of controls in relating to the valuation processes including
assessment of management and its external expert.
With respect to a sample of the unlisted private company
investments, we performed the following procedures:
• Considered the appropriateness of the valuation
methodology applied under the International Private Equity
and Venture Capital Valuation (‘IPEV’) Guidelines and the
accounting framework;
• Tested the accuracy of the application of the valuation
methodology selected;
• Corroborated factual inputs to the valuations to appropriate
sources and challenged subjective inputs including
comparison to independent information where appropriate
and performing stress and reverse stress testing; and
• Where management used inputs from external experts,
we assessed the competence and expertise of the expert
including consideration of relevant experience and
qualifications held. We considered the independence and
objectivity of the expert. We considered the appropriateness
of the methodology and assumptions employed by the expert
through review of the accounting framework and valuation
guidelines followed.
We obtained direct confirmation from the Custodian regarding
investments held at the balance sheet date. Where investments
were not held with the Custodian, we obtained direct
confirmation from the investee company regarding investments
held at the balance sheet date.
Key observations:
Based on our procedures performed we did not identify any
matters to suggest the valuation or ownership of the listed
equity investments or unlisted private company investments
was not appropriate.
Financial report
Annual Report and Financial Statements 2025
82
Our application of materiality
We apply the concept of materiality both in planning
and performing our audit, and in evaluating the
effect of misstatements. We consider materiality to
be the magnitude by which misstatements, including
omissions, could influence the economic decisions
of reasonable users that are taken on the basis of
the financial statements.
In order to reduce to an appropriately low level
the probability that any misstatements exceed
materiality, we use a lower materiality level,
performance materiality, to determine the extent of
testing needed. Importantly, misstatements below
these levels will not necessarily be evaluated as
immaterial as we also take account of the nature
of identified misstatements, and the particular
circumstances of their occurrence, when evaluating
their effect on the financial statements as a whole.
Based on our professional judgement, we
determined materiality for the financial statements
as a whole and performance materiality as follows:
Company Financial Statements
2025 2024
Materiality £6.13m £6.04m
Basis for
determining
materiality
1% of net assets 1% of net assets
Rationale for the
benchmark applied
As an investment trust, the net asset
value is the key measure of performance
for users of the financial statements.
Performance
materiality
£4.60m £4.53m
Basis for determining
performance
materiality
75% of materiality 75% of materiality
Rationale for the
percentage applied
for performance
materiality
The level of performance materiality
applied was set after having considered
a number of factors including the
expected total value of known and
likely misstatements and the level of
transactions in the year.
Reporting threshold
We agreed with the Audit Committee that we would
report to them all individual audit differences in
excess of £306k (2024:£301k). We also agreed to
report differences below this threshold that, in our
view, warranted reporting on qualitative grounds.
Other information
The Directors are responsible for the other
information. The other information comprises the
information included in the Annual Report and
Financial Statements other than the financial
statements and our auditor’s report thereon. Our
opinion on the financial statements does not cover
the other information and, except to the extent
otherwise explicitly stated in our report, we do
not express any form of assurance conclusion
thereon. Our responsibility is to read the other
information and, in doing so, consider whether the
other information is materially inconsistent with the
financial statements or our knowledge obtained in
the course of the audit, or otherwise appears to be
materially misstated. If we identify such material
inconsistencies or apparent material misstatements,
we are required to determine whether this gives
rise to a material misstatement in the financial
statements themselves. If, based on the work we
have performed, we conclude that there is a material
misstatement of this other information, we are
required to report that fact.
We have nothing to report in this regard.
Corporate governance statement
The UK Listing Rules require us to review the
Directors’ statement in relation to going concern,
longer-term viability and that part of the Corporate
Governance Statement relating to the Company’s
compliance with the provisions of the UK Corporate
Governance Code specified for our review.
Based on the work undertaken as part of our audit,
we have concluded that each of the following
elements of the Corporate Governance Statement is
materially consistent with the financial statements or
our knowledge obtained during the audit.
Going concern and longer-term viability
• The Directors’ statement with regards to the
appropriateness of adopting the going concern
basis of accounting and any material uncertainties
identified; and
• The Directors’ explanation as to their assessment
of the Company’s prospects, the period this
assessment covers and why the period is
appropriate.
Pacific Horizon Investment Trust PLC
83
Other Code provisions
• Directors’ statement on fair, balanced and
understandable;
• Board’s confirmation that it has carried out a
robust assessment of the emerging and principal
risks;
• The section of the annual report that describes the
review of effectiveness of risk management and
internal control systems; and
• The section describing the work of the Audit
Committee.
Other Companies Act 2006 reporting
Based on the responsibilities described below and
our work performed during the course of the audit,
we are required by the Companies Act 2006 and
ISAs (UK) to report on certain opinions and matters
as described below.
Strategic report and Directors’ report
In our opinion, based on the work undertaken in the
course of the audit:
• the information given in the Strategic report and
the Directors’ report for the financial year for
which the financial statements are prepared is
consistent with the financial statements; and
• the Strategic report and the Directors’ report have
been prepared in accordance with applicable legal
requirements.
In the light of the knowledge and understanding
of the Company and its environment obtained in
the course of the audit, we have not identified
material misstatements in the Strategic report or the
Directors’ report.
Directors’ remuneration
In our opinion, the part of the Directors’ remuneration
report to be audited has been properly prepared in
accordance with the Companies Act 2006.
Matters on which we are required to report
byexception
We have nothing to report in respect of the following
matters in relation to which the Companies Act 2006
requires us to report to you if, in our opinion:
• adequate accounting records have not been kept,
or returns adequate for our audit have not been
received from branches not visited by us; or
• the financial statements and the part of the
Directors’ remuneration report to be audited are
not in agreement with the accounting records and
returns; or
• certain disclosures of Directors’ remuneration
specified by law are not made; or
• we have not received all the information and
explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the Statement of Directors’
responsibilities, the Directors are responsible for
the preparation of the financial statements and for
being satisfied that they give a true and fair view, and
for such internal control as the Directors determine
is necessary to enable the preparation of financial
statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the Directors
are responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as
applicable, matters related to going concern and
using the going concern basis of accounting unless
the Directors either intend to liquidate the Company
or to cease operations, or have no realistic alternative
but to do so.
Auditor’s responsibilities for the audit of
thefinancial statements
Our objectives are to obtain reasonable assurance
about whether the financial statements as a whole
are free from material misstatement, whether due to
fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs (UK)
will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the
aggregate, they could reasonably be expected to
influence the economic decisions of users taken on
the basis of these financial statements.
Financial report
Annual Report and Financial Statements 2025
84
Extent to which the audit was capable of detecting
irregularities, including fraud
Irregularities, including fraud, are instances of
non-compliance with laws and regulations. We
design procedures in line with our responsibilities,
outlined above, to detect material misstatements in
respect of irregularities, including fraud. The extent
to which our procedures are capable of detecting
irregularities, including fraud is detailed below:
Non-compliance with laws and regulations
Based on:
• Our understanding of the Company and the
industry in which it operates;
• Discussion with management and those charged
with governance; and
• Obtaining and understanding of the Company’s
policies and procedures regarding compliance
with laws and regulations.
We considered the significant laws and regulations
to be Companies Act 2006, the FCA listing and DTR
rules, the principles of the AIC Code of Corporate
Governance, industry practice represented by the
AIC SORP, the applicable accounting framework,
and qualification as an Investment Trust under UK
tax legislation as any non-compliance of this would
lead to the Company losing various deductions and
exemptions from corporation tax.
We focused on laws and regulations that could give
rise to a material misstatement in the Company
financial statements. Our procedures included, but
were not limited to:
• Agreement of the financial statement disclosures
to underlying supporting documentation;
• Enquiries of management and those charged with
governance relating to the existence of any non-
compliance with laws and regulations;
• Reviewing minutes of meeting of those charged
with governance throughout the period for
instances of non-compliance with laws and
regulations; and
• Reviewing the calculation in relation to Investment
Trust compliance to check that the Company was
meeting its requirements to retain their Investment
Trust Status.
Fraud
We assessed the susceptibility of the financial
statement to material misstatement including fraud.
Our risk assessment procedures included:
• Enquiry with management and those charged with
governance regarding any known or suspected
instances of fraud;
• Review of minutes of meeting of those charged
with governance for any known or suspected
instances of fraud; and
• Discussion amongst the engagement team as to
how and where fraud might occur in the financial
statements.
Based on our risk assessment, we considered the
areas most susceptible to be management override
of controls.
Our procedures in respect of the above included:
• The procedures set out in the Key Audit Matters
section above which relate to the subjective
elements of the unlisted private company
investments;
• Review of estimates and judgements applied by
management in the financial statements to assess
their appropriateness and the existence of any
systematic bias;
• Review and consideration of the appropriateness
of adjustments made in the preparation of the
financial statements;
• Review for significant transactions outside the
normal course of business; and
• Review of unadjusted audit differences, if any, for
indications of bias or deliberate misstatement.
We also communicated relevant identified laws
and regulations and potential fraud risks to all
engagement team members who were all deemed
to have appropriate competence and capabilities
and remained alert to any indications of fraud
or non-compliance with laws and regulations
throughout the audit.
Pacific Horizon Investment Trust PLC
85
Our audit procedures were designed to respond
to risks of material misstatement in the financial
statements, recognising that the risk of not detecting a
material misstatement due to fraud is higher than the
risk of not detecting one resulting from error, as fraud
may involve deliberate concealment by, for example,
forgery, misrepresentations or through collusion.
There are inherent limitations in the audit procedures
performed and the further removed non-compliance
with laws and regulations is from the events and
transactions reflected in the financial statements, the
less likely we are to become aware of it.
A further description of our responsibilities is
available on the Financial Reporting Council’s
website at: www.frc.org.uk/auditorsresponsibilities.
This description forms part of our auditor’s report.
Use of our report
This report is made solely to the Company’s
members, as a body, in accordance with Chapter 3 of
Part 16 of the Companies Act 2006. Our audit work
has been undertaken so that we might state to the
Company’s members those matters we are required
to state to them in an auditor’s report and for no other
purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other
than the Company and the Company’s members as
a body, for our audit work, for this report, or for the
opinions we have formed.
Chris Meyrick (Senior Statutory Auditor)
For and on behalf of BDO LLP, Statutory Auditor
Edinburgh, UK
22 September 2025
BDO LLP is a limited liability partnership registered
in England and Wales (with registered number
OC305127).
Financial report
Annual Report and Financial Statements 2025
86
For the year ended 31 July
Notes
2025
Revenue
£’000
2025
Capital
£’000
2025
Total
£’000
2024
Revenue
£’000
2024
Capital
£’000
2024
Total
£’000
Gains on investments 9 – 39,801 39,801 – 33,438 33,438
Currency losses 14 – (586) (586) – (113) (113)
Income 2 8,870 – 8,870 8,987 – 8,987
Investment management fee 3 (3,573) – (3,573) (3,458) – (3,458)
Other administrative expenses 4 (881) – (881) (830) – (830)
Net return before finance costs
and taxation
4,416 39,215 43,631 4,699 33,325 38,024
Finance costs of borrowings 5 (1,437) – (1,437) (401) – (401)
Net return before taxation 2,979 39,215 42,194 4,298 33,325 37,623
Ta x
6
(889) 2,246 1,357 (834) (9,875) (10,709)
Net return after taxation 2,090 41,461 43,551 3,464 23,450 26,914
Net return per ordinary share 7 2.34p 46.42p 48.76p 3.82p 25.82p 29.64p
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 published 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 comprehensive income for the year.
The accompanying notes on pages 90 to 107 are an integral part of the Financial Statements.
Income
statement
Pacific Horizon Investment Trust PLC
87
As at 31 July
Notes
2025
£’000
2025
£’000
2024
£’000
2024
£’000
Fixed assets
Investments held at fair value through profit or loss 9 651,771 606,173
Current assets
Debtors 10 802 790
Cash and cash equivalents 18 3,820 4,205
4,622 4,995
Creditors
Amounts falling due within one year:
Other creditors and accruals 11 (38,845) (1,507)
Net current (liabilities)/assets (34,223) 3,488
Total assets less current liabilities 617,548 609,661
Creditors
Amounts falling due after more than one year:
Provision for tax liability 12 (4,191) (7,691)
Net assets 613,357 601,970
Capital and reserves
Share capital 13 9,208 9,208
Share premium account 14 254,120 254,120
Capital redemption reserve 14 20,367 20,367
Capital reserve 14 320,583 308,888
Revenue reserve 14 9,079 9,387
Total shareholders’ funds 613,357 601,970
Net asset value per ordinary share 15 716.13p 664.01p
The Financial Statements of Pacific Horizon Investment Trust PLC (Company Registration number 02342193) on
pages 86 to 107 were approved and authorised for issue by the Board and were signed on 22 September 2025.
Roger Yates
Chairman
The accompanying notes on pages 90 to 107 are an integral part of the Financial Statements.
Balance
sheet
Financial report
Annual Report and Financial Statements 2025
88
For the year ended 31 July 2025
Notes
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 2024 9,208 254,120 20,367 308,888 9,387 601,970
Net return aftertaxation – – – 41,461 2,090 43,551
Ordinary shares bought back into treasury 13 – – – (29,766) – (29,766)
Dividends paid during the year 8 – – – – (2,398) (2,398)
Shareholders’ funds at 31 July 2025 9,208 254,120 20,367 320,583 9,079 613,357
For the year ended 31 July 2024
Notes
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 – – – 23,450 3,464 26,914
Ordinary shares bought back into treasury 13 – – – (2,345) – (2,345)
Ordinary shares sold from treasury 13 – – – – – –
Dividends paid during the year 8 – – – – (2,954) (2,954)
Shareholders’ funds at 31 July 2024 9,208 254,120 20,367 308,888 9,387 601,970
The accompanying notes on pages 90 to 107 are an integral part of the Financial Statements.
Statement of
changes in equity
Pacific Horizon Investment Trust PLC
89
The accompanying notes on pages 90 to 107 are an integral part of the Financial Statements.
For the year ended 31 July
Notes
2025
£’000
2025
£’000
2024
£’000
2024
£’000
Cash flows from operating activities
Net return before taxation 42,194 37,623
Adjustments to reconcile company profit before tax to
netcashflow from operating activities
Net gains on investments (39,801) (33,438)
Currency losses 586 113
Finance costs of borrowings 5 1,437 401
Other capital movements
Overseas withholding tax incurred (909) (785)
Indian tax paid on transactions (1,254) (6,276)
Changes in debtors 8 (465)
Change in creditors 87 71
Cash from operations* 2,348 (2,756)
Non-utilisation fee paid (305) (401)
Loan Interest paid (987) –
Net cash inflow/(outflow) from operating activities 1,056 (3,157)
Cash flows from investing activities
Acquisitions of investments (147,280) (206,776)
Disposals of investments 141,541 207,108
Net cash (outflow)/inflow from investing activities (5,739) 332
Cash flows from financing activities
Bank loans repaid (30,780) –
Bank loans drawn down 66,560 –
Ordinary shares bought back into treasury 13 (28,498) (2,345)
Equity dividends paid 8 (2,398) (2,954)
Net cash inflow/(outflow) from financing activities 4,884 (5,299)
Increase/(decrease) in cash and cash equivalents 201 (8,124)
Exchange movements (586) (113)
Cash and cash equivalents at 1 August 4,205 12,442
Cash and cash equivalents at 31 July 3,820 4,205
* Cash from operations includes dividends received of £8,781,000 (2024 – £8,362,000) and interest received of £112,000 (2024 – £160,000).
Cash flow
statement
Financial report
Annual Report and Financial Statements 2025
90
01 Principal accounting policies
The Financial Statements for the year to 31 July 2025 have
been prepared in accordance with FRS 102 ‘The Financial
Reporting Standard applicable in the UK and Republic of
Ireland’ on the basis of the accounting policies set out below
which are unchanged from the prior year and have been
applied consistently.
a. Basis of accounting
All of the Company’s operations are of a continuing
nature and the Financial Statements are prepared on a
going concern basis under the historical cost convention,
modified to include the revaluation of fixed asset
investments at fair value through profit or loss, and on the
assumption that approval as an investment trust under
section 1158 of the Corporation Tax Act 2010 and the
Investment Trust (Approved Company) (Tax) Regulations
2011 will be retained.
The Company’s principal risks are market related and
include market risk, liquidity risk and credit risk. An
explanation of these risks and how they are managed is
contained on pages 100 to 107 in note 18 to the Financial
Statements. The Board has, in particular, considered the
impact of heightened macroeconomic and geopolitical
concerns, but does not believe that the Company’s going
concern status is affected.
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. The Company’s primary third party
suppliers, including its Managers and Secretaries,
Custodian and Depositary, Registrar, Auditor and Broker,
are not experiencing significant operational difficulties
affecting their respective services to the Company.
Inaccordance with the Company’s Articles of Association,
shareholders have the right to vote on the continuation
oftheCompany every five years, the next vote being in
2026. The Financial Statements have been prepared on
the going concern basis; having assessed the principal
and emerging risks and other matters set out in the
Viability Statement on page 43 (which assesses the
prospects of the Company over a period of three years)
and as further discussed in the Going Concern statement
on page 60 itisthe Directors’ opinion that the Company
will continue in operational existence for a period of at
least twelve months from the date of approval of these
Financial Statements.
The Financial Statements have been prepared in
accordance with the Companies Act 2006, applicable
UK Accounting Standards and with the Statement
of Recommended Practice ‘Financial Statements of
Investment Trust Companies and Venture Capital Trusts’
issued by the Association of Investment Companies
(‘AIC’) in November 2014 and updated in July 2022 with
consequential amendments.
In order to reflect better the activities of the Company
and in accordance with guidance issued by the AIC,
supplementary information which analyses the profit
and loss account between items of a revenue andcapital
naturehas been presented in the Income Statement.
Theallocation of items to revenue and capital is
reviewedon an annual basis and is considered to
remainappropriate for the current year.
The Directors consider the Company’s functional currency
to be sterling as the Company’s shareholders are
predominantly based in the UK, and the Company and its
portfolio managers, who are subject to the UK’s regulatory
environment, are also UK based.
b. Financial instruments
Financial assets and financial liabilities are recognised
inthe Company’s Balance Sheet when it becomes a
partyto the contractual provisions of the instrument.
c. Significant accounting estimates and judgements
The preparation of the Financial Statements requires
theuse of estimates and judgements. These estimates,
and judgements affect the reported amounts of assets
and liabilities, at the reporting date. While estimates are
based on best judgement using information and financial
data available, the actual outcome may differ from these
estimates. The key sources of estimation and uncertainty
relate to the assumptions used in the determination of the
fair value of the unlisted investments, which are detailed
in note 9 on page 96.
Notes to the
Financial Statements
Pacific Horizon Investment Trust PLC
91
Judgements
The Directors consider that the preparation of the
Financial Statements involves the following key
judgements:
i. the determination of the functional currency of the
Company as sterling (see rationale in 1(a) above); and
ii. the fair valuation of the unlisted investments.
The key judgements in the fair valuation process are:
i. the Managers’ determination of the appropriate
application of the International Private Equity and
Venture Capital Guidelines 2022 (‘IPEV’) to each
unlisted investment; and
ii. the Directors’ consideration of whether each fair
value is appropriate following detailed review and
challenge. The judgement applied in the selection of
the methodology used for determining the fair value of
each unlisted investment can have a significant impact
upon the valuation.
Estimates
The key estimate in the Financial Statements is the
determination of the fair value of the unlisted investments
by the Managers for consideration by the Directors. This
estimate is key as it significantly impacts the valuation of
the unlisted investments at the Balance Sheet date. The
fair valuation process involves estimation using subjective
inputs that are unobservable (for which market data is
unavailable). The main estimates involved in the selection
of the valuation process inputs are:
i. the selection of appropriate comparable companies
in order to derive revenue multiples and meaningful
relationships between enterprise value, revenue and
earnings growth. Comparable companies are chosen on
the basis of their business characteristics and growth
patterns;
ii. the selection of a revenue metric (either historic
orforecast);
iii. the application of an appropriate discount factor to
reflect the reduced liquidity of unlisted companies
versus their listed peers;
iv. the estimation of the probability assigned to an exit
being through an initial public offering (‘IPO’) or a
company sale;
v. the selection of an appropriate industry benchmark
index to assist with the valuation validation or the
application of valuation adjustments, particularly in the
absence of established earnings or closely comparable
peers; and
vi. the calculation of valuation adjustments derived from
milestone analysis (i.e. incorporating operational
success against the plan/forecasts of the business into
the valuation).
d. Investments
The Company’s investments are classified, recognised
and measured at fair value through profit or loss
in accordance with sections 11 and 12 of FRS 102.
Investment purchases and sales are recognised on a trade
date basis. Expenses incidental to purchase and sale are
written off to capital at the time of acquisition or disposal.
Gains and losses on investments are recognised in the
Income Statement as capital items.
Investments are designated as held at fair value through
profit or loss on initial recognition and are measured
at subsequent reporting dates at fair value. 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.
The Managers monitor the investment portfolio on a fair
value basis and use the fair value basis for investments
in making investment decisions and monitoring financial
performance.
Financial report
Annual Report and Financial Statements 2025
92
e. Cash and cash equivalents
Cash and cash equivalents include cash in hand and
deposits repayable on demand. Deposits are repayable
on demand if they can be withdrawn at any time without
notice and without penalty or if they have a maturity or
period of notice of not more than one working day.
f. Income
i. Income from equity investments is brought
intoaccount on the date on which the investments are
quoted ex-dividend or, where no ex-dividend date is
quoted, when the Company’s right to receive payment
isestablished.
ii. If scrip dividends are taken in lieu of dividends in
cash, the net amount of the cash dividend declared
is credited to the revenue column of the Income
Statement. Any excess in the value of the shares
received over the amount of the cash dividend
foregone is recognised in the capital column of the
IncomeStatement.
iii. Special dividends are treated as capital or income
depending on the facts of each particular case.
iv. Unfranked investment income and overseas dividends
include the taxes deducted at source.
v. Interest from fixed interest securities is recognised
on an accruals basis using the effective interest rate
basis.
vi. Underwriting commission and interest receivable on
deposits are recognised on an accruals basis.
g. Expenses
All expenses are accounted for on an accruals basis
andare charged through the revenue column of the
Income Statement, except for expenses incidental to
theacquisition or sale of investments, which are written
off to capital when incurred.
h. Borrowing and finance costs
Interest bearing bank loans are recorded at the proceeds
received, net of direct issue costs and subsequently
measured at amortised cost. Finance costs are accounted
for on an accruals basis and are charged through the
revenue column of the Income statement.
i. Taxation
Current tax assets and liabilities are measured at the
amount expected to be recovered from or paid to taxation
authorities. The tax rates and tax laws used to compute
the amount are those enacted or substantively enacted at
the reporting date.
j. Deferred taxation
Deferred taxation is provided on all timing differences,
based on the taxable profit and the total comprehensive
income as stated in the Financial Statements, calculated
at the current tax rate relevant to the realisation of the
benefit or liability. Deferred tax assets are recognised
only to the extent that it will be more likely than not that
there will be taxable profits from which underlying timing
differences can be deducted.
k. Foreign currencies
Transactions involving foreign currencies are converted
at the rate ruling at the time of the transaction. Assets
and liabilities in foreign currencies are translated at the
closing rates of exchange at the balance sheet date.
Any gain or loss arising from a change in exchange rate
subsequent to the date of the transaction is included as
an exchange gain or loss in the Income Statement as
capital or revenue as appropriate.
l. Capital redemption reserve
The capital redemption reserve is a statutory, non-
distributable reserve into which the nominal value
of shares redeemed or repurchased and canceled is
transferred from share capital.
m. Capital reserve
Gains and losses on disposal of investments, changes
in the fair value of investments held and realised and
unrealised exchange differences of a capital nature are
dealt with in this reserve after being recognised in the
Income Statement. Purchases of the Company’s own
shares for cancellation, or to be held in treasury for
subsequent reissue, may be funded from this reserve.
n. Revenue reserve
The revenue profit or loss for the year is taken to or from
this reserve. The revenue reserve may be distributed by
way of dividend.
o. Single segment reporting
The Company is engaged in a single segment of business,
being investment business, consequently no business
segmental analysis is provided.
p. Dividend distributions
Final dividends are recognised in the period in which the
dividends are approved by the Company’s shareholders.
Pacific Horizon Investment Trust PLC
93
02 Income
2025
£’000
2024
£’000
Income from investments
Overseas dividends 8,758 8,827
Other income
Deposit interest 112 160
Total income 8,870 8,987
Total income comprises:
Dividends from financial assets designated at fair value through profit or loss 8,758 8,827
Interest from financial assets not at fair value through profit or loss 112 160
8,870 8,987
03 Investment management fee
2025
£’000
2024
£’000
Investment management fee 3,573 3,458
Details of the Investment Management Agreement are set out on page 56. The annual management fee is 0.75% on the first
£50million 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.
04 Other administrative expenses
2025
£’000
2024
£’000
Custody fees 258 242
General administrative expenses 226 212
Directors’ fees 173 173
Marketing* 100 90
Auditor’s remuneration for audit services
†
52 50
Depositary fees 56 49
Registrar’s fees 16 14
881 830
* The Company is part of a marketing programme which includes all the investment trusts managed by the Manager. The marketing strategy has an
ongoing objective to stimulate demand for the Company’s shares. The cost of this marketing strategy is borne in partnership by the Company and
the Manager. The Manager matches the Company’s marketing contribution and provides the resource to manage and run the programme.
†
Auditor’s remuneration above is exclusive of VAT. There were no non-audit fees paid to the Auditor during the year (2024 – nil).
05 Finance costs of borrowings
2025
£’000
2024
£’000
Royal Bank of Scotland International Limited non-utilisation fee (see note 11) 258 401
Royal Bank of Scotland International Limited interest 1,119 –
Royal Bank of Scotland International Limited arrangement fee 60 –
1,437 401
Financial report
Annual Report and Financial Statements 2025
94
06 Tax
2025
Revenue
£’000
2025
Capital
£’000
2025
Total
£’000
2024
Revenue
£’000
2024
Capital
£’000
2024
Total
£’000
Overseas taxation 889 – 889 834 – 834
Indian capital gains tax paid and
provided for
– (2,246) (2,246) – 9,875 9,875
889 (2,246) (1,357) 834 9,875 10,709
2025
£’000
2024
£’000
Factors affecting the tax charge for the year
The tax assessed for the year is lower than the standard rate of corporation tax in the UK of 25%
(2024 – 25%). The differences are explained below:
Net return before taxation 42,194 37,623
Net return multiplied by the average standard rate of corporation tax in the
UKof25%(2024–25%)
10,548 9,406
Capital (gain) not deductible (9,804) (8,331)
Overseas dividends not taxable in the UK (2,190) (2,207)
Current year management expenses and non-trade loan relationship deficits not utilised 1,446 1,132
Overseas withholding tax incurred 889 834
Revenue tax charge for the year 889 834
(Decrease)/Increase in provision for tax liability in respect of Indian capital gains tax (3,500) 3,599
Payments of Indian capital gains tax in the period 1,254 6,276
Capital tax charge for the year (2,246) 9,875
Total tax (1,357) 10,709
As an investment trust, the Company’s capital gains are not taxable in the United Kingdom. Interest on the corporation tax
repayment is included within interest income. The capital tax charge results from the provision for tax liability in respect of Indian
capital gains tax as detailed in note 12.
Factors that may affect future tax charges
At 31 July 2025 the Company had surplus management expenses and losses on non-trading loan relationships of £43,341,000
(2024 – £37,561,000) and had a potential deferred tax asset of £10,835,000 (2024 – £9,390,000) on taxable losses which is
available to be carried forward and offset against future taxable profits. A deferred tax asset has not been recognised on these
losses as the Company is not expected to generate taxable income in a future period in excess of the deductible expenses of that
future period and, accordingly, it is unlikely that the Company will be able to reduce future tax liabilities through the use of existing
surplus expenses. The potential deferred tax asset has been calculated using a corporation tax rate of 25% (2024 – 25%).
Pacific Horizon Investment Trust PLC
95
07 Net return per ordinary share
2025
Revenue
2025
Capital
2025
Total
2024
Revenue
2024
Capital
2024
Total
Net return after taxation 2.34p 46.42p 48.76p 3.82p 25.82p 29.64p
Revenue return per ordinary share is based on the net revenue profit after taxation of £2,090,000 (2024 – net revenue profit of
£3,464,000) and on 89,322,898 (2024 – 90,804,045) ordinary shares, being the weighted average number of ordinary shares in
issue (excluding treasury shares) during the year.
Capital return per ordinary share is based on the net capital gain for the financial year of £41,461,000 (2024 – net gain of
£23,450,000) and on 89,322,898 (2024 – 90,804,045) ordinary shares, being the weighted average number of ordinary shares
in issue (excluding treasury shares) during the year.
Total return per ordinary share is based on the total gain for the financial year of £43,551,000 (2024 – total loss of £26,914,000)
and on 89,322,898 (2024 – 90,804,045) ordinary shares, being the weighted average number of ordinary shares in issue
(excluding treasury shares) during the year.
There are no dilutive or potentially dilutive shares in issue.
08 Ordinary dividends
2025 2024 2025
£’000
2024
£’000
Amounts recognised as distributions in the year:
Previous year’s final dividend (paid 28 November 2024) 2.65p 3.25p 2,398 2,954
We set out below the total dividends proposed in respect of the financial year, which is the basis on which the requirements
of section 1158 of the Corporation Tax Act 2010 are considered. There is a revenue surplus for the year to 31 July 2025 of
£2,090,000 which is available for distribution by way of a dividend payment (2024 – a revenue surplus of £3,464,000).
2025 2024 2025
£’000
2024
£’000
Amounts paid and payable in respect of the financial year:
Proposed final dividend per ordinary share (payable 1December 2025) 1.50p 2.65p 1,267 2,398
09 Fixed assets – investments
As at 31 July 2025
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Listed equities 611,876 – – 611,876
Unlisted company equities – – 6,903 6,903
Unlisted company preference shares
#
– – 32,992 32,992
Total financial asset investments 611,876 – 39,895 651,771
As at 31 July 2024
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Listed equities 563,410 – – 563,410
Unlisted company equities – – 9,036 9,036
Unlisted company preference shares
#
– – 33,727 33,727
Total financial asset investments 563,410 – 42,763 606,173
#
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.
During the year to 31 July 2025 no investments (31 July 2024 – nil) were transferred from Level 3 to Level 1 on becoming listed.
Investments in securities are financial assets held at fair value through profit or loss. In accordance with Financial Reporting
Standard 102, the tables above provide an analysis of these investments based on the fair value hierarchy described below,
whichreflects the reliability and significance of the information used to measure their fair value.
Financial report
Annual Report and Financial Statements 2025
96
09 Fixed assets – investments (continued)
Fair value hierarchy
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).
The Company’s unlisted ordinary share investments at 31 July 2025 were valued using a variety of techniques. These include
using comparable company performance, comparable scenario analysis, and assessment of milestone achievement at investee
companies. The determinations of fair value included assumptions that the comparable companies and scenarios chosen for the
performance assessment provide a reasonable basis for the determination of fair value. In some cases the latest dealing price is
considered to be the most appropriate valuation basis, but only following assessment using the techniques described above.
Listed
equities
£’000
Unlisted
equities
£’000
2025
Total
£’000
2024
Total
£’000
Cost of investments at 1 August 2024 470,554 41,203 511,757 493,010
Investment holding gains at 1 August 2024 92,856 1,560 94,416 79,738
Value of investments at 1 August 2024 563,410 42,763 606,173 572,748
Movements in year:
Purchases at cost 147,338 – 147,338 207,049
Sales proceeds received (141,541) – (141,541) (207,062)*
Gains/(losses) on investments 42,669 (2,868) 39,801 33,438*
Value of investments at 31 July 2025 611,876 39,895 651,771 606,173
Cost of investments at 31 July 2025 491,539 41,203 532,742 511,757
Investment holding gains/(losses) at 31 July 2025 120,337 (1,308) 119,029 94,416
Value of investments at 31 July 2025 611,876 39,895 651,771 606,173
* The sales proceeds received in the prior year were incorrectly reported as the book cost of the investments sold and have been restated. The
realised profit, £18,760,000, on these investments has been disclosed within the Gains/(losses) on investments.
Transaction costs on purchases and sales were £190,000 (2024 – £206,000) and £262,000 (2024 – £399,000) respectively,
totaltransaction costs being £452,000 (2024 – £605,000) expensed as per the accounting policy (see page 91). The Company
received £141,541,000 (2024 – £207,062,000) from investments sold during the year. The book cost of these investments when
they were purchased was £126,353,000 (2024 – £188,302,000). These investments have been revalued over time and, until they
were sold, any unrealised gains/losses were included in the fair value of the investments.
2025
£’000
2024
£’000
Net gains on investments held at fair value through profit or loss
Realised gains on sales 15,188 18,760
Changes in investment holding gains 24,613 14,678
39,801 33,438
Significant holdings disclosure requirements – AIC SORP
Details are disclosed below in accordance with the requirements of paragraph 82 of the AIC Statement of Recommended Practice
‘Financial Statements of Investment Trust Companies and Venture Capital Trusts’ (updated in July 2022) in relation to unlisted
investments included in the ten largest holdings disclosed on page 26. As required, this disclosure includes turnover, pre-tax
profits and net assets attributable to investors as reported within the most recently audited Financial Statements of the investee
companies, where possible.
Pacific Horizon Investment Trust PLC
97
09 Fixed assets – investments (continued)
As at 31 July 2025
Latest
Financial
Statements
Book cost
£’000
Market
Value
£’000
Income
recognised
from holding
in the period
£’000
Turnover
(‘000)
Pre-tax
profit/
(loss)
(‘000)
Net assets
attributable
to shareholders
(‘000)Name Business
ByteDance
Series E-1
Preferred
Social
media
n/a 11,751 25,300 Nil Information not publicly available
As at 31 July 2024
Latest
Financial
Statements
Book cost
£’000
Market
Value
£’000
Income
recognised
from holding
in the period
£’000
Turnover
(‘000)
Pre-tax
profit/
(loss)
(‘000)
Net assets
attributable
to shareholders
(‘000)Name Business
VerSe
(Dailyhunt)
Innovation
Indian news
aggregator
application
n/a 20,987 20,693 Nil Information not publicly available
10 Debtors
2025
£’000
2024
£’000
Amounts falling due within one year:
Income accrued (net of withholding taxes) 650 651
Other debtors and prepayments 152 139
802 790
None of the above debtors are financial assets designated at fair value through profit or loss. The carrying amount of debtors is a
reasonable approximation of fair value. There were no debtors that were past due or impaired at 31 July 2025 or 31 July 2024.
11 Creditors – amounts falling due within one year
2025
£’000
2024
£’000
Royal bank of Scotland International Limited non-utilisation fee 13 52
Royal bank of Scotland International Limited interest 184 –
Royal bank of Scotland International Limited loan 35,780 –
Investment purchases awaiting settlement 331 273
Investment management fee 918 903
Share buy backs payable 1,268 –
Other creditors and accruals 351 279
38,845 1,507
The Company has a multi-currency revolving credit facility with the Royal Bank of Scotland International Limited for up to
£60million, with a non-utilisation rate of 0.4%. This facility expires in March 2026. At 31 July 2025 there were £35,780,000
outstanding drawings (31 July 2024 – nil). The main covenants relating to the loan are that borrowings should not exceed 30%
ofthe Company’s adjusted net asset value and the Company’s net asset value should be at least £300 million.
There were no breaches in the loan covenants during the year.
None of the above creditors at 31 July 2025 or 31 July 2024 are financial liabilities designated at fair value through profit or loss.
Financial report
Annual Report and Financial Statements 2025
98
12 Provision for tax liability
2025
£’000
2024
£’000
The movement in provision for tax liability comprises:
Opening balance 7,691 4,092
Capital gains tax charge to the capital reserve in the year (2,246) 9,875
Capital gains tax paid in the year (1,254) (6,276)
Provision for tax liability 4,191 7,691
The tax liability provision at 31 July 2025 of £4,191,000 (31 July 2024 – £7,691,000) 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 12.5% (2024 – 12.5%)
and short term capital gains are taxed at 20% (2024 – 20%). 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.
13 Share capital
2025
Number
2025
£’000
2024
Number
2024
£’000
Allotted, called up and fully paid ordinary shares of 10p each 85,648,427 8,565 90,656,751 9,066
Treasury shares of 10p each 6,426,534 643 1,418,210 142
92,074,961 9,208 92,074,961 9,208
In the year to 31 July 2025, the Company issued no ordinary shares from treasury (2024 – no ordinary shares).
In the year to 31 July 2025, 5,008,324 ordinary shares, representing 5.5% of the issued share capital at 31 July 2024, were
boughtbackat a total cost of £29,766,000 and are held in treasury (2024 – 425,198 ordinary shares, representing 0.5% of the
issued share capital at 31 July 2023, were bought back at a total cost of £2,345,000 and are held in treasury). At 31 July 2025
the Company had authority to allot or sell from treasury 9,061,687 ordinary shares without application of pre-emption rights and
to buy back 8,826,505 ordinary shares on an ad hoc basis. Under the provisions of the Company’s Articles of Association share
buy-backs are funded from the capital reserve.
Between 1 August 2025 and 18 September 2025, no further shares were issued and 1,181,983 shares were bought back.
14 Capital and reserves
Share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Shareholders’
funds
£’000
At 1August2024 9,208 254,120 20,367 308,888 9,387 601,970
Net gains on sales of investments – – – 15,188 – 15,188
Changes in investment holding
gains and losses
– – – 24,613 – 24,613
Other exchange differences – – – (586) – (586)
Indian tax paid and provided for – – – 2,246 – 2,246
Ordinary shares bought back
intotreasury
– – – (29,766) – (29,766)
Revenue return after taxation – – – – 2,090 2,090
Dividends paid during the year – – – – (2,398) (2,398)
At 31 July 2025 9,208 254,120 20,367 320,583 9,079 613,357
Pacific Horizon Investment Trust PLC
99
14 Capital and reserves (continued)
Share
capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Capital
reserve
£’000
Revenue
reserve
£’000
Shareholders’
funds
£’000
At 1 August 2023 9,208 254,120 20,367 287,783 8,877 580,355
Net gains on sales of investments – – – 18,760 – 18,760
Changes in investment holding
gains and losses
– – – 14,678 – 14,678
Other exchange differences – – – (113) – (113)
Indian CGT paid and provided for – – – (9,875) – (9,875)
Ordinary shares bought back into
treasury
– – – (2,345) – (2,345)
Revenue return after taxation – – – – 3,464 3,464
Dividends paid during the year – – – – (2,954) (2,954)
At 31 July 2024 9,208 254,120 20,367 308,888 9,387 601,970
The capital reserve includes non-distributable investment holding gains of £119,029,000 (2024 – gains of £94,416,000) as
disclosed in note 9.
The revenue reserve and capital reserve (to the extent it constitutes realised profits) may be distributed by way of dividend.
15 Shareholders’ funds
The net asset value per ordinary share and the net assets attributable to the ordinary shareholders at the year end calculated in
accordance with the Articles of Association were as follows:
2025
Net asset
value
per share
2024
Net asset
value
per share
2025
Net assets
attributable
£’000
2024
Net assets
attributable
£’000
Ordinary shares 716.13p 664.01p 613,357 601,970
The movements during the year of the assets attributable to the ordinary shares are shown in note 14.
Net asset value per ordinary share is based on the net assets as shown above and 85,648,427 (2024 – 90,656,751) ordinary
shares (excluding treasury shares), being the number of ordinary shares in issue at each date.
16 Analysis of change in net debt
At 1 August
2024
£’000
Cash flows
£’000
Exchange
movement
£’000
At 31 July
2025
£’000
Cash and cash equivalents
4,205 201 (586) 3,820
Loans due within one year – (35,780) – (35,780)
4,205 (35,579) (586) (31,960)
Financial report
Annual Report and Financial Statements 2025
100
17 Transactions with related parties and the Managers and Secretaries
The Directors’ fees for the year are detailed in the Directors’ remuneration report on page 72. No Director has a contract of service
with the Company. During the year no Director was interested in any contract or other matter requiring disclosure under section
412 of the Companies Act 2006.
Details of the management contract are set out in the Directors’ report on page 56. The management fee payable to the Manager
by the Company for the year, as disclosed in note 3, was £3,573,000 (2024 – £3,458,000) of which £918,000 (2024 – £903,000)
was outstanding at the year end, as disclosed in note 11.
The Company is part of a marketing programme which includes all the investment trusts managed by the Manager. The Company’s
marketing contribution, recharged by the Manager, was £100,000 (2024 – £90,000) as disclosed in note 4.
18 Financial instruments
As an Investment Trust, the Company invests in equities and makes other investments so as to achieve its investment objective
of maximising capital appreciation from a focused and actively managed portfolio of investments from the Asia-Pacific region
including the Indian Sub-continent and excluding Japan. In pursuing its investment objective, the Company is exposed to various
types of risk that are associated with the financial instruments and markets in which it invests.
These risks are categorised here as market risk (comprising currency risk, interest rate risk and other price risk), liquidity risk
andcredit risk. The Board monitors closely the Company’s exposures to these risks but does so in order to reduce the likelihood
of a permanent loss of capital rather than to minimise short term volatility. Risk provides the potential for both losses and gains.
Inassessing risk, the Board encourages the Managers to exploit the opportunities that risk affords.
The risk management policies and procedures outlined in this note have not changed substantially from the previous accounting
period.
Market risk
The fair value or future cash flows of a financial instrument or other investment held by the Company may fluctuate because
ofchanges in market prices. This market risk comprises three elements – currency risk, interest rate risk and other price risk.
TheBoard of Directors reviews and agrees policies for managing these risks and the Company’s Managers both assess the
exposure to market risk when making individual investment decisions and monitor the overall level of market risk across the
investment portfolio on an ongoing basis.
Details of the Company’s investment portfolio are shown in note 9 and on pages 38 to 40.
The Company may, from time to time, enter into derivative transactions to hedge specific market, currency or interest rate risk.
During the years to 31 July 2025 and 31 July 2024 no such transactions were entered into. The Company’s Managers may not
enter into derivative transactions without the prior approval of the Board.
i. Currency risk
The majority of the Company’s assets, liabilities and income are denominated in currencies other than sterling (the Company’s
functional currency and that in which it reports its results). Consequently, movements in exchange rates may affect the sterling
value of those items.
The Managers monitor the Company’s exposure to foreign currencies and report to the Board on a regular basis. The Managers
assess the risk to the Company of the foreign currency exposure by considering the effect on the Company’s net asset value and
income of a movement in the rates of exchange to which the Company’s assets, liabilities, income and expenses are exposed.
However, the country in which a company is listed is not necessarily where it earns its profits. The movement in exchange rates
on overseas earnings may have a more significant impact upon a company’s valuation than a simple translation of the currency in
which the company is quoted.
Foreign currency borrowings can limit the Company’s exposure to anticipated future changes in exchange rates which might
otherwise adversely affect the value of the portfolio of investments.
Pacific Horizon Investment Trust PLC
101
18 Financial instruments (continued)
i. Currency risk (continued)
Exposure to currency risk through asset allocation, which is calculated by reference to the currency in which the asset or liability
is quoted, is shown below.
At 31 July 2025
Investments
£’000
Cash and cash
equivalents
£’000
Bank
Loans
£’000
Other debtors
and creditors
£’000
Net
exposure
£’000
Hong Kong dollar 135,147 – – – 135,147
US dollar 124,408 12 – (276) 124,144
Taiwan dollar 106,121 – – 329 106,450
Indian rupee 93,130 54 – (4,191) 88,993
Korean won 81,642 – – 172 81,814
Vietnam dong 56,400 3,684 – 82 60,166
Chinese yuan 39,178 – – – 39,178
Indonesian rupiah 10,947 – – – 10,947
Total exposure to currency risk 646,973 3,750 – (3,884) 646,839
Sterling 4,798 70 (35,780) (2,570) (33,482)
651,771 3,820 (35,780) (6,454) 613,357
At 31 July 2024
Investments
£’000
Cash and cash
equivalents
£’000
Bank
Loans
£’000
Other debtors
and creditors
£’000
Net
exposure
£’000
Hong Kong dollar 99,011 – – – 99,011
US dollar 90,437 3,407 – (273) 93,571
Taiwan dollar 88,425 – – 421 88,846
Indian rupee 138,869 80 – (7,691) 131,258
Korean won 95,999 – – 230 96,229
Vietnam dong 49,038 618 – – 49,656
Chinese yuan 19,417 – – – 19,417
Indonesian rupiah 15,655 – – – 15,655
Australian dollar 616 – – – 616
Thai baht – – – – –
Total exposure to currency risk 597,467 4,105 – (7,313) 594,259
Sterling 8,706 100 – (1,095) 7,711
606,173 4,205 – (8,408) 601,970
Financial report
Annual Report and Financial Statements 2025
102
18 Financial instruments (continued)
i. Currency risk (continued)
Currency risk sensitivity
At 31 July 2025, if sterling had strengthened by 5% in relation to all currencies, with all other variables held constant, total net
assets and total return would have decreased by the amounts shown below. A 5% weakening of sterling against all currencies,
with all other variables held constant, would have had an equal but opposite effect on the Financial Statement amounts. The level
of change is considered to be reasonable based on observations of current market conditions. The analysis is performed on the
same basis for 2024.
2025
£’000
2024
£’000
Hong Kong dollar 6,757 4,951
US dollar 6,220 4,692
Taiwan dollar 5,306 4,442
Indian rupee 4,657 6,549
Korean won 4,082 4,811
Vietnam dong 2,820 2,483
Chinese yuan 1,959 971
Indonesian rupiah 548 783
Australian dollar – 31
32,349 29,713
ii. Interest rate risk
Interest rate movements may affect directly:
• the fair value of any investments in fixed interest rate securities;
• the level of income receivable on cash deposits;
• the fair value of any fixed-rate borrowings; and
• the interest payable on any variable rate borrowings.
Interest rate movements may also impact upon the market value of investments outwith fixed income securities. The effect of
interest rate movements upon the earnings of a company may have a significant impact upon the valuation of that company’s
equity. The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into
account when making investment decisions and when entering borrowing agreements. The Board reviews on a regular basis the
amount of investments in cash and fixed income securities and the income receivable on cash deposits, floating rate notes and
other similar investments.
The Company may finance part of its activities through borrowings at approved levels. The amount of any such borrowings and the
approved levels are monitored and reviewed regularly by the Board. Movements in interest rates, to the extent that they affect the
market value of the Company’s fixed rate borrowings, may also affect the amount by which the Company’s share price is at a
discount or a premium to the net asset value (assuming that the Company’s share price is unaffected by movements in interest rates).
The interest rate risk profile of the Company’s financial assets and liabilities at 31 July is shown below.
Financial assets
2025
Fair value
£’000
2025
Weighted
average
interest rate
2025
Weighted
average fixed
rate period*
2024
Fair value
£’000
2024
Weighted
average
interest rate
2024
Weighted
average fixed
rate period*
Cash and cash equivalents:
Overseas currencies 3,750 0.5% n/a 4,105 3.9% n/a
Sterling 70 1.5% n/a 100 4.5% n/a
3,820 4,205
* Based on expected redemption date.
Pacific Horizon Investment Trust PLC
103
18 Financial Instruments (continued)
ii. Interest rate risk (continued)
Financial liabilities
The interest rate risk profile of the Company’s financial liabilities and the maturity profile of the undiscounted future cash flows in
respect of the Company’s contractual financial liabilities at 31 July are shown below.
Maturity profile
2025
£’000
2024
£’000
In less than one year:
– repayment of loan 35,780 –
– accumulated interest 918 –
– non-utilisation fee 105 299*
36,803 299
* The prior year figure was incorrectly reported as the loan non-utilisation fee accrued of £52,000 as of 31 July 2024, rather than the undiscounted
future cash flows in respect of the Company’s contractual financial liabilities as of 31 July 2024, and has been restated.
Interest rate risk sensitivity
The sensitivity analysis below has been determined based on the exposure to interest rates at the Balance Sheet date and with
the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in the
case of instruments that have floating rates.
An increase of 100 basis points in interest rates, with all other variables being held constant, would have decreased the
Company’s total net assets and total return for the year ended 31 July 2025 by £320,000 (2024 – an increase of £42,000). This is
mainly due to the Company’s exposure to interest rates on its floating rate bank loan and cash balances. A decrease of 100 basis
points would have had an equal but opposite effect.
iii. Other price risk
Changes in market prices other than those arising from interest rate risk or currency risk may also affect the value of the
Company’s net assets. The Board manages the market price risks inherent in the investment portfolio by ensuring full and timely
access to relevant information from the Managers. The Company’s portfolio of unlisted level 3 investments is not necessarily
affected by market performance, however the valuations are affected by the performance of the underlying securities in line
with the valuation criteria in note 1(c). The Board meets regularly and at each meeting reviews investment performance, the
investment portfolio and the rationale for the current investment positioning to ensure consistency with the Company’s objectives
and investment policies. The portfolio does not seek to reproduce the index. Investments are selected based upon the merit of
individual companies and therefore performance may well diverge from the comparative index.
Other price risk sensitivity
A full list of the Company’s investments is given on pages 38 to 40. In addition, a geographical analysis of the portfolio and an
analysis of the investment portfolio by broad industrial or commercial sector are contained on page 32.
93.7% (2024 – 93.6%) of the Company’s total assets are invested in quoted equities. A 5% (2024 – 5%) increase in quoted
equity valuations at 31 July 2025 would have increased total assets and total return on ordinary activities by £30,594,000 (2024 –
£28,170,000). A decrease of 5% would have had an equal but opposite effect. The level of change is considered to be reasonable
based on observations of current market conditions.
6.1% (2024 – 7.1%) of the Company’s net assets are invested in private company investments. The fair valuation of the private
company investments is influenced by the estimates, assumptions and judgements made in the fair valuation process (see
note1(c) on page 90).
A sensitivity analysis is provided below which recognises that the valuation methodologies employed involve different levels of
subjectivity in their significant unobservable inputs and illustrates the sensitivity of the valuations to these inputs as it involves
more significant subjective estimation than the recent transaction method. The inputs have been flexed by +/-10%. The table also
provides the range of values for the key unobservable inputs.
Financial report
Annual Report and Financial Statements 2025
104
18 Financial Instruments (continued)
iii. Other price risk (continued)
Other price risk sensitivity (continued)
As at
31July2025 Significant unobservable inputs*
Valuation
technique
Fair value
as at 31 July
2025
£’000
Key
unobservable
inputs
Other
unobservable
inputs
†
Range
Weighted
average
range
#
Sensitivity
%
Sensitivity to changes
in significant
unobservable inputs
Market
approach
using
comparable
trading
multiples
33,685 EV revenue
multiple
‡
a,b,c,d 2.3x – 4.8x 3.0x 10% If EV revenue multiples
changed by +/-10%,
thefair value would
change by £2,612,175
and -£2,580,445.
NTM
revenue
estimate
⁺
n/a n/a 10% If NTM revenue estimate
changed by +/- 10%,
the fair value would
change by £450,391
and -£417,674.
Illiquidity
discounts
e 10% 10% 10% If the illiquidity
discountis changed
by +/-10%, the fair
value would change
by £332,137and
-£333,121. This refers
to a 10% proportional
change in the discount
rate, not an absolute
change in percentage
points.
Benchmark
performance
6,210
Selection of
comparable
companies
§
a,b,c,f 4.8% to
23.5%
4.9% 10% If input comparable
company performance
changed by +/-10%,
thefair value would
change by £625,248
and -£624,726.
* Significant unobservable inputs
The variable inputs applicable to each broad category of valuation basis will vary dependent on the particular circumstances of each private
company valuation. An explanation of each of the key unobservable inputs is provided below and includes an indication of the range in value for
each input, where relevant. The assumptions made in the production of the inputs are described in note 1(c) on page 90.
†
See explanation for other unobservable inputs on page 106.
#
Weighted average is calculated by reference to the fair value of holdings as at the respective year-end. This therefore gives a clearer indication of
the typical multiple or adjustment being applied across the portfolio.
‡
Enterprise value (EV).
⁺
In instances where historical revenue is no longer indicative of sustainable, recurring revenue performance, a forward-looking revenue estimate of
the next twelve months (NTM) is included in the valuation assessment. This input relates only to VerSe (Dailyhunt) Innovation with a total fair value
of £8,386,000 as at 31 July 2025.
§
See explanation for the selection of comparable companies on page 106 section ‘c’. The percentage movements reflect the movement in overall
company value for the basket of comparable companies relevant to each holding since the most recent transaction or since the last assessed.
Pacific Horizon Investment Trust PLC
105
18 Financial Instruments (continued)
iii. Other price risk (continued)
Other price risk sensitivity (continued)
As at
31 July 2024 Significant unobservable inputs*
Valuation
technique
Fair value
as at 31 July
2024
£’000
Key
unobservable
inputs
Other
unobservable
inputs
†
Range
Weighted
average
range
#
Sensitivity
%
Sensitivity to changes
in significant
unobservable inputs
Market
approach
using
comparable
trading
multiples
35,925 EV/LTM
revenue
multiple
‡
a,b,c,d 1.6x – 4.8x 3.4x 10% If EV/LTM multiples
changed by +/-10%, the
fair value would change
by £2,990,239 and
-£2,956,975.
Transaction
implied
premium and
discounts
g 86% n/a 10% If the transaction implied
premium is changed
by +/-10%, the fair
value would change
by £944,746 and
-£931,908.
Illiquidity
discounts
e 10% n/a 10% If the illiquidity discount
is changed by +/-10%,
the fair value would
change by £169,603
and -£168,895.
Benchmark
performance
6,838
Selection of
comparable
companies
§
a,b,c,f -10.2% to
19.1%
-19% 10% If input comparable
company performance
changed by +/-10%,
the fair value would
change by £691,873
and -£686,614.
*
Significant unobservable inputs
The variable inputs applicable to each broad category of valuation basis will vary dependent on the particular circumstances of each private company
valuation. An explanation of each of the key unobservable inputs is provided below and includes an indication of the range in value for each input, where
relevant. The assumptions made in the production of the inputs are described in note 1(c) on page 90.
†
See explanation for other unobservable inputs on page 106.
# Weighted average is calculated by reference to the fair value of holdings as at the respective year-end. This therefore gives a clearer indication of
the typical multiple or adjustment being applied across the portfolio.
‡ Enterprise value (EV) divided by the last twelve months (LTM) revenue.
§ See explanation for the selection of comparable companies on page 106 section ‘c’. The percentage movements reflect the movement in overall company
valuefor the basket of comparable companies relevant to each holding since the most recent transaction or since the last assessed.
Financial report
Annual Report and Financial Statements 2025
106
18 Financial Instruments (continued)
iii. Other price risk (continued)
Other price risk sensitivity (continued)
a. Application of valuation basis
Each investment is assessed independently, and the valuation basis applied will vary depending on the circumstances of each
investment. When an investment is pre-revenue, the focus of the valuation will be on assessing the recent transaction and the
achievement of key milestones since investment. Adjustments may also be made depending on the performance of comparable
benchmarks and companies and operational performance. For those investments where a trading multiples approach can be
taken, the methodology will factor in revenue, earnings or net assets as appropriate for the investment, and where a suitable
correlation can be identified with the comparable companies then a regression analysis will be performed. Discounted cash
flows will also be considered where appropriate forecasts are available.
b. Probability estimation of liquidation events
The probability of a liquidation event such as a company sale, or alternatively an initial public offering (‘IPO’), is a key variable
input in the Transaction-based and Multiples-based valuation techniques. The probability of an IPO versus a company sale
is typically estimated from the outset to be 50:50 if there has been no indication by the company of pursuing either of these
routes. If the company has indicated an intention to IPO, the probability is increased accordingly to 75% and if an IPO has
become a certainty the probability is increased to 100%. Likewise, in a scenario where a company is pursuing a trade sale
the weightings will be adjusted accordingly in favour of a sale scenario, or in a situation where a company is underperforming
expectations significantly and therefore deemed very unlikely to pursue an IPO. The Company typically invests in higher
ranking preference shares which carry more protection, and this can therefore influence the end valuation.
c. Selection of comparable companies
The selection of comparable companies is assessed individually for each investment at the point of investment, and the
relevance of the comparable companies is continually evaluated at each valuation. The key criteria used in selecting
appropriate comparable companies are the industry sector in which they operate, the geography of the company’s operations,
the respective revenue and earnings growth rates and the operating margins. Typically, between 4 and 10 comparable
companies will be selected for each investment, depending on how many relevant comparable companies are identified. The
resultant revenue or earnings multiples or share price movements derived will vary depending on the companies selected and
the industries they operate in.
d. Estimated sustainable earnings
The selection of sustainable revenue or earnings will depend on whether the company is sustainably profitable or not, and
where it is not then revenues will be used in the valuation. The valuation approach will typically assess companies based on
the last twelve months of revenue or earnings, as they are the most recent available and therefore viewed as the most reliable.
Where a company has reliably forecasted earnings previously or there is a change in circumstance at the business which will
impact earnings going forward, then forward estimated revenue or earnings may be used instead.
e. Application of illiquidity discount
The application of an illiquidity discount will be applied either through the calibration of a valuation against the most recent
transaction, or by application of a specific discount. The discount applied where a calibration (see ‘g’ below) is not appropriate
is typically 10%, reflecting that the majority of the investments held are substantial companies with some secondary market
activity.
f. Selection of appropriate benchmarks
The selection of appropriate benchmarks is assessed individually for each investment. The industry and geography of
each company are key inputs to the benchmark selection, with either one or two key indices or benchmarks being used for
comparison.
g. Transaction implied premium and discount
Where there is an implied company valuation available as a result of an external arm’s length transaction, the ongoing valuation
will be calibrated to this by deriving a company valuation with reference to the average multiple from a set of comparable
companies and comparing this to a transaction implied valuation, and could result in an implied premium or discount compared
to comparable companies at the point of transaction. This discount or premium will be considered in future valuations, and may
be reduced due to factors such as period of time since the transaction and company performance. Where a calibrated approach
is not appropriate, a discount for illiquidity will be applied as noted in (e) above.
Pacific Horizon Investment Trust PLC
107
18 Financial Instruments (continued)
Liquidity risk
This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. Liquidityrisk
isnotsignificant as the majority of the Company’s assets are investments in quoted securities that are readily realisable. The
Board provides guidance to the Managers as to the maximum exposure to any one holding and to the maximum aggregate
exposure to substantial holdings.
The Company has the power to take out borrowings, which give it access to additional funding when required. The Company’s
current borrowing facility is detailed in note 11 and the maturity profile of its borrowings is set out above. Under the terms of the
borrowing facility, borrowings are repayable on demand at their current carrying value.
Credit risk
This is the risk that a failure of a counterparty to a transaction to discharge its obligations under that transaction could result
intheCompany suffering a loss.
This risk is managed as follows:
• where the Managers make an investment in a bond or other security with credit risk, that credit risk is assessed and then
compared to the prospective investment return of the security in question;
• the Depositary is liable for the loss of financial instruments held in custody. The Depositary will ensure that any delegate
segregates the assets of the Company. The Managers monitor the Company’s risk by reviewing the Custodian’s internal control
reports and reporting its findings to the Board;
• investment transactions are carried out with a large number of brokers whose creditworthiness is reviewed by the Managers.
Transactions are ordinarily undertaken on a delivery versus payment basis whereby the Company’s Custodian bank ensures
that the counterparty to any transaction entered into by the Company has delivered on its obligations before any transfer of
cash or securities away from the Company is completed;
• the creditworthiness of the counterparty to transactions involving derivatives, structured notes and other arrangements,
wherein the creditworthiness of the entity acting as broker or counterparty to the transaction is likely to be of sustained
interest, are subject to rigorous assessment by the Managers; and
• cash is only held at banks that are regularly reviewed by the Managers.
Credit risk exposure
The maximum exposure to credit risk at 31 July was:
2025
£’000
2024
£’000
Cash and cash equivalents 3,820 4,205
Debtors and prepayments 802 790
4,622 4,995
None of the Company’s financial assets are past due or impaired (2024 – none).
Fair value of financial assets and financial liabilities
The Directors are of the opinion that the carrying amount of financial assets and liabilities of the Company in the Balance Sheet
approximate their fair value.
Capital management
The capital of the Company is its share capital and reserves as set out in note 14 together with its borrowings (see note 11).
Theobjective of the Company is to invest in the Asia-Pacific region (excluding Japan) and in the Indian Sub-continent in order
toachievecapital growth. The Company’s investment policy is set out on page 41. In pursuit of the Company’s objective, the
Board has a responsibility for ensuring the Company’s ability to continue as a going concern and details of the related risks
and how they are managed are set out on pages 42 to 47. The Company has the authority to issue and buy back its shares (see
pages59 and 60) and changes to the share capital during the year are set out in notes 13 and 14. The Company does not have
any externally imposed capital requirements other than the covenants on its loan which are detailed in note 11.
19 Subsequent events
Since 31 July 2025, the Company has drawn down a further £13,500,000 from its multi-currency revolving credit facility with
Royal Bank of Scotland International Limited, bringing total drawings to £49,280,000 from the £60,000,000 facility. The
Company is not aware of any other subsequent events.
Shareholder
information
Pacific Horizon Investment Trust PLC
109
Notice of Annual
General Meeting
To accurately reflect the views of shareholders of the
Company, the Board intends to hold the AGM voting
on a poll, rather than on a show of hands as has
been customary.
The Board encourages all shareholders to submit
proxy voting forms as soon as possible and, in any
event, by no later than 1.00pm. on 21November
2025. We would encourage shareholders to monitor
the Company’s page of the Managers’ website at
pacifichorizon.co.uk.
Should shareholders have questions for the
Board or the Managers or any queries as to how
to vote, or how to attend the meeting, they are
welcome as always to submit them by email to
enquiries@bailliegifford.com or call 08009172113.
Baillie Gifford may record your call.
For details of how to vote your shares if held via a
platform please refer to theaic.co.uk/how-to-vote-
your-shares.
The Annual General Meeting of the Company will be
held at at the ICAEW, Chartered Accountants’ Hall,
1Moorgate Place, London, EC2R 6EA, on Tuesday,
25 November 2025 at 1.00pm. You will find directions
to the venue by scanning the QR code above.
117
Baillie Gifford Shin Nippon PLC
Notice of Annual
General Meeting
Moorgate
Moorgate
Copthall Ave
Throgmorton Ave
Finsbury
Moorgate
Circus
London Wall
London Wall
Basinghall Ave
The Annual General Meeting of the Company will be
held at the ICAEW, Chartered Accountants’ Hall,
1Moorgate Place, London, EC2R 6EA on Tuesday
20 May 2025 at 11.30am. You will find directions to
the venue by scanning the QR code above.
To accurately reflect the views of shareholders of the
Company, the Board intends to hold the AGM voting
on a poll, rather than a show of hands, as has
beencustomary.
The Board encourages all shareholder to submit
proxy voting forms as soon as possible and, in any
event, by no later than 11.30am on 16 May 2025.
Should shareholders have questions for the Board
orthe Managers or any queries as to how to vote
orhow to attend the meeting they are welcome
asalways to submit them by email to
trustenquiries@bailliegifford.com or call
08009172112. Baillie Gifford may record your call.
For details of how to vote your shares if
heldviaaplatform please refer to
theaic.co.uk/how-to-vote-your-shares.
ICAEW
Shareholder information
Annual Report and Financial Statements 2025
110
Notice is hereby given that an Annual General
Meeting of Pacific Horizon Investment Trust PLC
(the ‘Company’) will be held at 1Moorgate Place,
London EC2R6EA on Tuesday, 25 November 2025
at 1.00pm for the purposes of considering and,
if thought fit, passing the following Resolutions,
of which Resolutions 1 to 11 will be proposed as
ordinary resolutions and Resolutions 12 and 13
willbeproposed as special resolutions:
Ordinary business
01. To receive and adopt the Company’s Annual
Report and Financial Statements for the
financial year ended 31 July 2025, together
with the Reports of the Directors and the
Independent auditor’s report thereon.
02. To approve the Directors’ Annual Report on
Remuneration for the financial year ended
31July 2025.
03. To declare a final dividend of 1.50p per ordinary
share.
04. To re-elect Mr RP Yates as a Director of the
Company.
05. To re-elect Sir RW Chote as a Director of the
Company.
06. To re-elect Ms W Hee as a Director of the
Company.
07. To re-elect Ms AC Lane as a Director of the
Company.
08. To re-elect Mr RF Studwell as a Director of the
Company.
09. To reappoint BDO LLP as Independent auditor of
the Company to hold office until the conclusion
of the next Annual General Meeting at which
the Financial Statements are laid before the
Company.
10. To authorise the Directors to determine the
remuneration of the Independent auditor of
theCompany.
11. That:
a. the Directors be generally and unconditionally
authorised pursuant to section 551 of the
Companies Act 2006 (the ‘Act’) to allot shares
in the Company, or to grant rights to subscribe
for or convert any security into shares in the
Company, up to a maximum nominal amount
of £844,664; and
b. the authority given by this Resolution:
i. shall be in addition to all pre-existing
authorities under section 551 of the Act;
and
ii. unless renewed, revoked or varied in
accordance with the Act, shall expire on
25February 2027 or, if earlier, at the
conclusion of the Annual General Meeting
of the Company to be held in 2026 save
that the Company may, before such expiry,
make any offer or enter into an agreement
which would or might require the allotment
of shares in the Company, or the grant of
rights to subscribe for or to convert any
security into shares in the Company, after
such expiry.
12. That, subject to the passing of Resolution 11
above, (the ‘Allotment Authority’), the Directors
be given power pursuant to sections 570 and
573 of the Companies Act 2006 (the ‘Act’) to
allot equity securities (within the meaning of
section 560(1) of the Act) for cash pursuant
to the Allotment Authority, and to sell treasury
shares for cash, as if section 561(1) of the Act
did not apply to such allotment or sale, provided
that such power:
a. shall be limited to the allotment of equity
securities or the sale of treasury shares up to
an aggregate nominal amount of £844,664;
b. shall be in addition to all pre-existing powers
under sections 570 and 573 of the Act; and
c. shall expire at the same time as the Allotment
Authority, save that the Company may
before expiry of the power conferred on the
Directors by this Resolution make an offer
or agreement which would or might require
equity securities to be allotted after such
expiry.
13. That, in substitution for any existing authority,
but without prejudice to the exercise of any such
authority prior to the date hereof, the Company
be generally and unconditionally authorised, in
accordance with section 701 of the Companies
Act 2006 (the ‘Act’) to make market purchases
(within the meaning of section 693(4) of the
Act) of its ordinary shares, (either for retention
as treasury shares for future reissue, resale,
transfer or for cancellation), provided that:
Pacific Horizon Investment Trust PLC
111
a. the maximum number of ordinary shares
hereby authorised to be purchased is
12,661,519 or, if less, the number representing
approximately 14.99 per cent. of the issued
share capital of the Company on the date on
which this Resolution is passed;
b. the minimum price (excluding expenses)
which may be paid for each ordinary share
shall be the nominal value of that share;
c. the maximum price (excluding expenses)
which may be paid for any ordinary share
purchased pursuant to this authority shall not
be more than the higher of:
i. 5 per cent. above the average closing
price on the London Stock Exchange of
an ordinary share over the five business
days immediately preceding the date of
purchase; and
ii. the higher price of the last independent
trade of an ordinary share and the highest
current independent bid for such a share
on the London Stock Exchange; and
d. unless previously varied, revoked or renewed
by the Company in general meeting, the
authority hereby conferred shall expire at the
conclusion of the Annual General Meeting
of the Company to be held in 2026 save that
the Company may, prior to the expiry of such
authority, enter into a contract or contracts
to purchase ordinary shares under such
authority which will or might be completed or
executed wholly or partly after the expiration
of such authority and may make a purchase
of ordinary shares pursuant to any such
contract or contracts.
By Order of the Board
Baillie Gifford & Co Limited
Company Secretaries
22 September 2025
Shareholder information
Annual Report and Financial Statements 2025
112
Instructions. It is the responsibility of the CREST member
concerned to take (or, if the CREST member is a CREST
personal member, or sponsored member, or has appointed
a voting service provider(s), to procure that his/her CREST
sponsor or voting service provider(s) take(s)) such action as
shall be necessary to ensure that a message is transmitted
by means of the CREST service by any particular time. In this
connection, CREST members and, where applicable, their
CREST sponsors or voting service provider(s) are referred,
in particular, to those sections of the CREST Manual
concerning practical limitations of the CREST system
andtimings.
06. The Company may treat as invalid a CREST Proxy Instruction
in the circumstances set out in Regulation 35(5)(a) of the
Uncertificated Securities Regulations 2001.
07. The return of a completed proxy form or other instrument of
proxy will not prevent you attending the AGM and voting in
person if you wish.
08. Pursuant to Regulation 41 of the Uncertificated Securities
Regulations 2001 and section 311 of the Companies
Act 2006 the Company specifies that to be entitled to
attend and vote at the AGM (and for the purpose of the
determination by the Company of the votes they may
cast), shareholders must be registered in the Register of
Members of the Company no later than 48 hours (excluding
non-working days) prior to the commencement of the AGM
or any adjourned meeting. Changes to the Register of
Members after the relevant deadline shall be disregarded in
determining the rights of any person to attend and vote at
the meeting.
09. Any person to whom this notice is sent who is a person
nominated under section 146 of the Companies Act 2006 to
enjoy information rights (a ‘Nominated Person’) may, under
an agreement between him/her and the shareholder by
whom he/she was nominated, have a right to be appointed
(or to have someone else appointed) as a proxy for the
Annual General Meeting. If a Nominated Person has no such
proxy appointment right or does not wish to exercise it, he/
she may, under any such agreement, have a right to give
instructions to the shareholder as to the exercise of voting
rights.
10. The statement of the rights of shareholders in relation to
the appointment of proxies in Notes 1 and 2 above does
not apply to Nominated Persons. The rights described in
those Notes can only be exercised by shareholders of the
Company.
11. Under section 338 of the Companies Act 2006, members
meeting the qualification criteria set out in note 14 below
may, subject to certain conditions, require the Company
to circulate to members notice of a resolution which may
properly be moved and is intended to be moved at that
meeting. The conditions are that: (a) the resolution must not,
if passed, be ineffective (whether by reason of inconsistency
with any enactment or the Company’s constitution or
otherwise); (b) the resolution must not be defamatory of any
person, frivolous or vexatious; and (c) the request: (i) may
Notes
01. As a member you are entitled to appoint a proxy or proxies
to exercise all or any of your rights to attend, speakandvote
at the AGM. A proxy need not be a member of theCompany
butmust attend the AGM to represent you. You may appoint
more than one proxy provided each proxy is appointed
to exercise rights attached to different shares. You can
only appoint a proxy using the procedure set out in these
notes and the notes to the proxy form. You may not use
any electronic address provided either in this notice or any
related documents (including the Financial Statements
and proxy form) to communicate with the Company for any
purpose other than those expressly stated.
02. To be valid any proxy form or other instrument appointing a
proxy, together with any power of attorney or other authority
under which it is signed or a certified copy thereof, must be
received by post or (during normal business hours only) by
hand at the Registrars of the Company at Computershare
Investor Services PLC, The Pavilions, Bridgwater Road,
Bristol BS99 6ZY or eproxyappointment.com no later than
1.00pm on 21 November 2025 (or 48 hours (excluding
non-working days) before any adjourned meeting).
03. CREST members who wish to appoint a proxy or proxies
through the CREST electronic proxy appointment service
may do so by using the procedures described in the
CRESTManual and/or by logging on to the website
euroclear.com/CREST. CREST personal members or other
CREST sponsored members, and those CREST members
who have appointed a voting service provider(s), should refer
to their CREST sponsor or voting service provider(s), who
will be able to take the appropriate action on their behalf.
04. In order for a proxy appointment or instruction made
using the CREST service to be valid, the appropriate
CREST message (a ‘CREST Proxy Instruction’) must be
properly authenticated in accordance with Euroclear UK &
International Limited’s specifications, and must contain the
information required for such instruction, as described in
the CREST Manual. The message, regardless of whether it
constitutes the appointment of a proxy or is an amendment
to the instruction given to a previously appointed proxy
must, in order to be valid, be transmitted so as to be received
by the Company’s registrar (ID 3RA50) no later than 1.00pm
on 21 November 2025 (or 48 hours (excluding non-working
days) before any adjourned meeting). For this purpose, the
time of receipt will be taken to be the time (as determined
by the timestamp applied to the message by the CREST
Application Host) from which the Company’s registrar is
able to retrieve the message by enquiry to CREST in the
manner prescribed by CREST. After this time any change of
instructions to proxies appointed through CREST should be
communicated to the appointee through othermeans.
05. CREST members and, where applicable, their CREST
sponsors or voting service provider(s) should note that
Euroclear UK & International Limited does not make
available special procedures in CREST for any particular
message. Normal system timings and limitations will,
therefore, apply in relation to the input of CREST Proxy
Pacific Horizon Investment Trust PLC
113
be in hard copy form or in electronic form; (ii) must identify
the resolution of which notice is to be given by either setting
out the resolution in full or, if supporting a resolution sent by
another member, clearly identifying the resolution which is
being supported; (iii) must be authenticated by the person or
persons making it; and (iv) must be received by the Company
not later than 13 October 2025.
12. Under section 338A of the Companies Act 2006, members
meeting the qualification criteria set out at note 14 below
may require the Company to include in the business to
be dealt with at the Annual General Meeting a matter
(other than a proposed resolution) which may properly be
included in the business (a matter of business). The request
must have been received by the Company no later than
13October 2025. The conditions are that the matter of
business must not be defamatory of any person, frivolous or
vexatious. The request must identify the matter of business
by either setting it out in full or, if supporting a statement
sent by another member, clearly identify the matter of
business which is being supported. The request must be
accompanied by a statement setting out the grounds for
the request. Members seeking to do this should write to the
Company providing their full name and address.
13. Under section 527 of the Companies Act 2006, members
meeting the qualification criteria set out at note 12 below
may require the Company to publish, on its website, (without
payment) a statement (which is also passed to the Auditor)
setting out any matter relating to the audit of the Company’s
Financial Statements, including the auditor’s Report and the
conduct of the audit. Such requests must be made in writing
and must state your full name and address.
14. In order to be able to exercise the members’ rights in note 11
to 13, the relevant request must be made by: (a) members
representing at least 5% of the total voting rights of allthe
members who have a right to vote on the resolution towhich
the requests relate; or (b) at least 100 members whohavea
right to vote on the resolution to which the requestsrelate
and hold shares in the Company on which there has been
paid up an average sum, per member, of at least £100.
Suchrequests should be sent to the Company at Calton
Square, 1 Greenside Row, Edinburgh, EH1 3AN.
15. Information regarding the Annual General Meeting, including
information required by section 311A of the Companies
Act 2006, is available from the Company’s page of the
Managers’ website at pacifichorizon.co.uk.
16. Members have the right to ask questions at the meeting in
accordance with section 319A of the Companies Act 2006.
17. Any corporation which is a member can appoint one or more
corporate representatives who may exercise on its behalf all
of its powers as a member provided that they do not do so in
relation to the same shares.
18. As at 18September 2025 (being the last practicable date prior
to the publication of this notice) the Company’s issued share
capital consisted of 84,466,444 ordinary shares, carrying one
vote each. Therefore, the total voting rights in the Company as
at 18September 2025 were 84,466,444 votes.
19. Any person holding 3 per cent. or more of the total voting
rights of the Company who appoints a person other than the
Chairman of the meeting as his/her proxy will need to ensure
that both he/she and his/her proxy complies with their
respective disclosure obligations under the UK Disclosure
Guidance and Transparency Rules.
20. No Director has a contract of service with the Company.
Shareholder information
Annual Report and Financial Statements 2025
114
Pacific Horizon is an investment trust. Investment
trusts offer investors the following:
• participation in a diversified portfolio of shares;
• constant supervision by experienced professional managers; and
• the Company is free from UK capital gains tax on capital profits
realised within its portfolio although investors are still liable for
capital gains tax on profits when selling their investment.
How to invest
The Company’s shares are traded on the London Stock Exchange.
They can be bought by placing an order with a stockbroker, or
by asking a professional adviser to do so. If you are interested in
investing directly in Pacific Horizon, you can do so online. There are
a number of companies offering real time online dealing services.
Sources of further information on the Company
The price of shares is quoted daily in the Financial Times (under
‘Investment Companies’) and can also be found on the Company’s
page of the Managers’ website at pacifichorizon.co.uk, Trustnet at
trustnet.com and on other financial websites. Monthly factsheets
are also available on the Baillie Gifford website. These are
available from Baillie Gifford on request.
Pacific Horizon Share Identifiers
ISIN GB0006667470
Sedol 0666747
Ticker PHI
Legal Entity Identifier VLGEI9B8R0REWKB0LN95
Key dates
Any dividend in respect of a financial year will be paid by way of a
single final payment shortly after the Annual General Meeting. The
Annual General Meeting is normally held in October or November.
Capital gains tax
For Capital Gains Tax purposes, the cost to shareholders who
subscribed for the conversion shares, subsequently converted
into new ordinary shares (with warrants attached), is apportioned
between the ordinary shares and the warrants as set out in the
placing and offer document dated 5 March 1996. The attributable
costs are:
Cost of each ordinary share 53.45p
Cost of each warrant 16.52p
Market values on 17 April 1996 (first day of dealing) were as
follows (Source: Thomson Reuters):
Ordinary share 55.00p
Warrant 17.00p
Share register enquiries
Computershare Investor Services PLC maintains the share
registeron behalf of the Company. In the event of queries
regarding shares registered in your own name, please contact
theRegistrars on 0370 707 1229. This helpline also offers an
automated self-service functionality (available 24 hours a day,
7daysa week) which allows you to:
• hear the latest share price;
• confirm your current share holding balance;
• confirm your payment history; and
• order Change of Address, Dividend Bank Mandate and Stock
Transfer forms.
You can also check your holding on the Registrars’ website
at investorcentre.co.uk. They also offer a free, secure share
management website service which allows you to:
• view your share portfolio and see the latest market price of
your shares;
• calculate the total market price of each shareholding;
• view price histories and trading graphs;
• register to receive communications from the Company,
including the Annual Report and Financial Statements, in
electronic format;
• update bank mandates and change address details; and
• use online dealing services.
To take advantage of this service, please log in at
investorcentre.co.ukand enter your Shareholder Reference
Number and Company Code (this information can be found
onthelast dividend voucher or your share certificate).
Further shareholder
information
Pacific Horizon Investment Trust PLC
115
Dividend reinvestment plan
Computershare operate a Dividend Reinvestment Plan which
can be used to buy additional shares instead of receiving your
dividend via cheque or into your bank account. For further
information log on to investorcentre.co.uk and follow the
instructions or telephone 0370 702 0000.
Electronic proxy voting
If you hold stock in your own name you can choose to vote by
returning proxies electronically at eproxyappointment.com.
If you have any questions about this service please contact
Computershare on 0370 707 1229.
CREST proxy voting
If you are a user of the CREST system (including a CREST
Personal Member), you may appoint one or more proxies or
give an instruction to a proxy by having an appropriate CREST
message transmitted. For further information please refer to the
CREST Manual.
Data protection
The Company is committed to ensuring the confidentiality and
security of any personal data provided to it. Further details on how
personal data is held and processed on behalf of the Company
can be found in the privacy policy available on the Company’s
page of the Managers’ website pacifichorizon.co.uk.
Alternative Investment Fund Managers
Regulations(AIFMR)
In accordance with the UK Alternative Investment Fund Managers
Regulations, information in relation to the Company’s leverage
and the remuneration of the Company’s AIFM, Baillie Gifford
& Co Limited, is required to be made available to investors.
In accordance with the Regulations, the AIFM’s remuneration
policy is available on the Managers’ website at bailliegifford.com
or on request (see contact details on page 123). The numerical
remuneration disclosures in respect of the AIFM’s relevant
reporting period (year ended 31 March 2025) are also available
atbailliegifford.com.
The Company’s maximum and actual leverage (see Glossary of
terms and Alternative Performance Measures on pages 120 and
121) levels at 31 July 2025 are shown below:
Leverage exposure
Gross
method
Commitment
method
Maximum limit 2.50:1 2.50:1
Actual 1.07:1 1.07:1
Automatic Exchange of Information
In order to fulfil its obligations under UK tax legislation relating
to the automatic exchange of information, Pacific Horizon
Investment Trust PLC is required to collect and report certain
information about certain shareholders.
The legislation requires investment trust companies to provide
personal information to HMRC on certain investors who purchase
shares in investment trusts. Accordingly, Pacific Horizon
Investment Trust PLC will have to provide information annually to
the local tax authority on the tax residencies of a number of non-
UK based certificated shareholders and corporate entities.
All new shareholders, excluding those whose shares are held
in CREST, who come on to the share register will be sent a
certification form for the purposes of collecting this information.
For further information, please see HMRC’s Quick Guide:
Automatic Exchange of Information – information for account
holders gov.uk/guidance/automatic-exchange-of-information-
account-holders.
Shareholder information
Annual Report and Financial Statements 2025
116
Communicating
with shareholders
Trust magazine Pacific Horizon Investment Trust web page at pacifichorizon.co.uk
Trust
magazine
Trust is the Baillie Gifford investment trust magazine which is
published twice a year. It provides an insight to our investment
approach by including interviews with our portfolio managers,
as well as containing investment trust news, investment features
and articles about the trusts managed by Baillie Gifford, including
Pacific Horizon. Trust plays an important role in helping to explain
our products so that readers can really understand them.
You can subscribe to Trust magazine or view a digital copy at
bailliegifford.com/trust
Suggestions and questions
Any suggestions on how communications with shareholders can
be improved are welcomed. Please contact the Baillie Gifford
Client Relations Team and give them your suggestions. They will
also be very happy to answer questions that you may have about
Pacific Horizon.
Pacific Horizon on the Web
Up-to-date information about Pacific Horizon, can be found on the
Company’spage of the Managers’ website atpacifichorizon.co.uk.
Youwillfind full details on Pacific Horizon, including recent
portfolio information and performance figures.
Client relations team contact details
You can contact the Baillie Gifford Client Relations Team by
telephone, email or post:
Telephone: 0800 917 2113
Your call may be recorded for training or monitoring purposes.
Email: enquiries@bailliegifford.com
Website: bailliegifford.com
Address:
Baillie Gifford Client Relations Team
Calton Square
1 Greenside Row
Edinburgh EH1 3AN
Please note that Baillie Gifford is not permitted
to give financial advice. If you would like advice,
please ask an authorised intermediary.
Pacific Horizon Investment Trust PLC
117
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Shareholder information
Annual Report and Financial Statements 2025
118
The EU Sustainable Finance Disclosure Regulation (‘SFDR’)
doesnothave a direct impact in the UK due to Brexit, however,
itapplies to third-country products marketed in the EU. As Pacific
Horizon is marketed in the EU by the AIFM, BG & Co Limited,
viatheNational 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 ESG Principles and
Guidelines as its policy on integration of sustainability risks in
investment decisions.
Baillie Gifford & Co believes that a company cannot be financially
sustainable in the long run if its approach to business is
fundamentally out of line with changing societal expectations.
It defines ‘sustainability’ as a deliberately broad concept which
encapsulates a company’s purpose, values, business model,
culture, and operating practices.
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 up 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. The likely impact on the return of the
portfolio from a potential or actual material decline in the value of
investment due to the occurrence of an environmental, social or
governance event or condition will vary and will depend on several
factors including but not limited to the type, extent, complexity
and duration of an event or condition, prevailing market conditions
and existence of any mitigating factors.
Sustainable Finance Disclosure
Regulation (‘SFDR’)
Whilst consideration is given to sustainability matters, there are
no restrictions on the investment universe of the Company, unless
otherwise stated within in its Investment Objective & Policy.
BaillieGifford&Co can invest in any companies it believes could
create beneficial long-term returns for investors. However, this might
result in investments being made in companies that ultimately
cause a negative outcome for the environment or society.
More detail on the Investment Manager’s approach to
sustainability can be found in the ESG Principles and Guidelines
document, available publicly on the Baillie Gifford website
bailliegifford.com and by scanning the QR code below.
The underlying investments do not take into account the EU
criteria for environmentally sustainable economic activities
established under the EU Taxonomy Regulation.
Pacific Horizon Investment Trust PLC
119
Third party data
provider disclaimer
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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 haveanyliability
whatsoever to you, whether in contract (including underan
indemnity), in tort (including negligence), under a warranty,under
statute or otherwise, in respect of any loss or damage suffered
byyouas 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).
FTSE Index data
London Stock Exchange Group plc and its group undertakings
(collectively, the ‘LSE Group’). ©LSE Group 2025. FTSE Russell
is a trading name of certain LSE Group companies. ‘FTSE®’
‘Russell®’, ‘FTSE Russell®’, is/are a trade mark(s) of the relevant
LSE Group companies and is/are used by any other LSE Group
company under license. All rights in the FTSE Russell indexes
or data vest in the relevant LSE Group company which owns the
index or the data. Neither LSE Group nor its licensors accept
any liability for any errors or omissions in the indexes or data
and no party may rely on any indexes or data contained in this
communication. No further distribution of data from the LSE
Group is permitted without the relevant LSE Group company’s
express written consent. The LSE Group does not promote,
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Shareholder information
Annual Report and Financial Statements 2025
120
Total assets
This is the Company’s definition of adjusted total assets, being
the total value of all assets held less all current 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 (excluding treasury
shares) in issue.
Net liquid assets
Net liquid assets comprise current assets less current liabilities
(excluding borrowings).
Discount/premium (APM)
As stock markets 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.
2025 2024
Net asset value per ordinary
share (a)
716.13p 664.01p
Share price (b) 648.00p 612.00p
(Discount)/premium ((b) – (a)) ÷ (a) (9.5%) (7.8%)
Turnover
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.
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.
Glossary of terms and Alternative
Performance Measures (‘APM’)
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,
asdetailed below:
2025
£’000
2024
£’000
Investment management fee 3,573 3,458
Other administrative expenses 881 830
Total expenses (a) 4,454 4,288
Average net asset value (b) 592,680 580,820
Ongoing charges ((a) ÷ (b)
expressed as a percentage)
0.75% 0.74%
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.
Active share
Active share, a measure of how actively a portfolio is managed,
isthepercentage 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.
Pacific Horizon Investment Trust PLC
121
Gross gearing is the Company’s borrowings expressed as a
percentage of shareholders’ funds.
2025
£’000
2024
£’000
Borrowings (at book value) (a) 35,780 –
Shareholders’ funds (b) 613,357 601,970
Gross gearing:
(a) as a percentage of (b)
6% –
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.
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’.
Ifthe 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.
Net gearing is borrowings at book less cash and brokers’ balances
expressed as a percentage of shareholders’ funds.
2025
£’000
2024
£’000
Borrowings (at book cost) (a) 35,780 –
Less: cash and cash equivalents (3,820) (4,205)
Less: sales for subsequent
settlement
– –
Add: purchases for subsequent
settlement
331 273
Adjusted borrowings (b) 32,291 (3,932)
Shareholders’ funds (c) 613,357 601,970
Net gearing:
(b) as a percentage of (c)
5% (1%)
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.
Inperiodswhere no dividend is paid, the total return equates to the capital return.
2025
NAV
2025
Share price
2024
NAV
2024
Share price
Closing NAV per share/share price (a) 716.13p 648.00p
664.01p
612.00p
Dividend adjustment factor
*
(b) 1.0039 1.0046 1.0060 1.0060
Adjusted closing NAV per share/share price (c) = (a) x (b) 718.95p 650.98p 667.99p 615.67p
Opening NAV per share/share price (d) 664.01p 612.00p 637.18p 586.00p
Total return (c) ÷ (d) -1 8.3% 6.4% 4.8% 5.1%
*
The dividend adjustment factor is calculated on the assumption that the final dividend of 2.65p (31 July 2024 – 3.25p) 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.
Shareholder information
Annual Report and Financial Statements 2025
122
Pacific Horizon Investment Trust PLC
123
Company
information
Directors
Chairman: RP Yates
RW Chote
W Hee
AC Lane
RF Studwell
Registrar
Computershare Investor
Services PLC
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
T: +44 (0)370 707 1229
Alternative Investment
Fund Managers and
Company Secretaries
Baillie Gifford & Co Limited
Calton Square
1 Greenside Row
Edinburgh EH1 3AN
T: +44 (0)131 275 2000
bailliegifford.com
Depositary
The Bank of New York Mellon
(International) Limited
160 Queen Victoria Street
London EC4V 4LA
Company Broker
JP Morgan Cazenove
25 Bank Street
Canary Wharf
London E14 5JP
Independent Auditor
BDO LLP
55 Baker Street
London W1U 7EU
Company details
pacifichorizon.co.uk
Company Registration No. 02342193
ISIN: GB0006667470
Sedol: 0666747
Ticker: PHI
Legal Entity Identifier:
VLGEI9B8R0REWKB0LN95
Further information
Client Relations Team
Baillie Gifford & Co
Calton Square
1 Greenside Row
Edinburgh EH1 3AN
T: +44 (0)800 917 2113
enquiries@bailliegifford.com
Registered office
Baillie Gifford & Co
3 St. Helen’s Place
London EC3A 6AB
Calton Square, 1 Greenside Row, Edinburgh EH1 3AN
Telephone +44 (0)131 275 2000
pacifichorizon.co.uk