Pacific Horizon – investor in Asian growth

Marten and Co publishes its first initiation of coverage note on Pacific Horizon (PHI)

The company is unashamedly a growth fund and its Asia-focused portfolio has significant overweight exposures to technology and biotechnology. However, it would appear that, investors are shying away from Asia because of weak Chinese growth and are seeking safety in defensive stocks for the same reason. Perhaps it is not surprising that PHI has underperformed both its comparative index and its peer group, and its discount has widened. PHI is a fund that may be out of fashion but could perform well in an environment where investors are less risk averse.

Pacific Horizon – investor in Asian growth

Managed by Edinburgh-based investment managers, Baillie Gifford, Pacific Horizon aims to achieve capital growth through investment in 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 such companies is 15% of gross assets.

The portfolio contains companies which the managers have identified as offering the potential for long term capital appreciation, irrespective of whether they comprise part of any index. The portfolio is actively managed and will normally consist entirely of quoted equity securities although unlisted companies, fixed interest holdings, or other non equity investments, may be held. Pacific Horizon is also permitted to invest in other pooled vehicles (general, country and sector specific) that invest in the markets of the region.

You can access the fund’s website here

PHI : Pacific Horizon – investor in Asian growth