PHI : Pacific Horizon growth bias pays off
Pacific Horizon results for the year ended 31 July 2014 were good. The net asset value return was 10.4%, comfortably ahead of the MSCI AC Asia ex Japan Index which returned 4% in Sterling terms. Shareholders did even better as the trust’s discount narrowed, leaving them with a return of 13.4% for the year.
The fund’s discount finished the year at 11.5% – down from 13.9%. The fund targets an average discount no wider than 9% however and so, as this target was missed, the Board implemented a tender offer for up to 5% of the fund’s issued share capital in April and plans to conduct another now (for shareholders in the register on 13 August 2014).
The manager’s report says that the companies it favours – those with good long-term growth prospects – have been out of favour as investors sought safe haven investments. They think the tide has turned in their favour now as evidenced by the trust’s recent performance. Around 40% of the fund is invested in technology companies with Samsung Electronics being the largest holding