Annual Financial Report

RNS Number : 0090S

Pacific Horizon Investment Tst PLC

02 September 2010

 



PACIFIC HORIZON INVESTMENT TRUST PLC

Results for the year to 31 July 2010

The Company's net asset value per share rose by 20.9% whilst the MSCI All Country Far East ex Japan Index in sterling terms gained 17.3%.  In this period, the Company's share price rose by 17.0%.

·	Over the year, good relative and absolute performance can be attributed to stock selection, particularly in Hong Kong and China, with holdings in Chinese consumer stocks being a notable positive. Korean and Thai holdings were the main detractors to performance.
·	Markets across the region are benefiting from features such as low leverage, accommodating fiscal and monetary policies, ample liquidity and returning consumer and business confidence.
·	The Company remained ungeared during the period with cash representing 2.2% of shareholders' funds as at the period end.
·	Earnings per share fell by 32.4% to 1.65p from 2.44p last year.  A dividend of 1.30p is being recommended by the Board (2009 - 1.80p).
·	Having weathered the most vicious downturn since the Asian financial crisis, the region appears well placed to capitalise on the many structural factors that should underpin future growth.

Past performance is not a guide to future performance. The value of an investment and any income from it is not guaranteed and may go down as well as up and investors may not get back the amount invested. Investment in investment trusts should be regarded as long term.

Pacific Horizon Investment Trust PLC (Pacific Horizon) aims to achieve capital growth through investment in the stockmarkets of the Asia-Pacific region (excluding Japan) and in the stockmarkets of the Indian Sub-continent. The Company has total assets of £128 million.

Pacific Horizon is managed by Baillie Gifford & Co, the Edinburgh based fund management group with around £60 billion under management and advice as at 1 September 2010.

2 September 2010

- ends -

For further information please contact:

Anzelm Cydzik,

Baillie Gifford & Co                                                                              0131 275 2000

Roland Cross, Account Director,

Broadgate Marketing                                                                            020 7726 6111

PACIFIC HORIZON INVESTMENT TRUST PLC

Chairman's Statement

Performance

In the year to 31 July 2010 net asset value per share increased by 20.9%, compared to a 17.3% rise in the MSCI All Country Far East ex Japan Index in sterling terms.

Performance over the Company's year was good and can be attributed in main to stock selection. Top contributors to performance were diverse and ranged from Baidu, a Chinese internet company, to Kunlun Energy, a Chinese oil and gas business, and Li & Fung, a premier supply chain management company in the region. Stock picking in the markets of Hong Kong and China was strong, assisted by one of our holdings, Wheelock Properties, being privatised by its parent at a substantial premium. Negative contributors to performance were also varied with Korean and Thai holdings the main detractors. The holdings in some of the more traditionally cyclical businesses such as Hyunjin Materials, a Korean casting and forging business, and Mermaid Maritime, a Thai oil services business, fared particularly badly. The Managers' Overview and the Managers' Portfolio Review contain a more detailed explanation, together with a summary of the performance of the principal markets in which the Company is invested and the Managers' comments on them.

There was no gearing during the year and at the year end cash was equal to 2.2% of shareholders' funds. 

Earnings per share fell by 32.4% to 1.65p from 2.44p for last year. The Board is recommending that a dividend of 1.30p should be paid.

 

Share buy-back

During the year we did not buy back any shares but market conditions may change and it may in the future be to the advantage of shareholders for the Company to repurchase and cancel shares. We will therefore be asking shareholders to renew the mandate to repurchase up to 14.99% of the outstanding shares at the forthcoming Annual General Meeting ('AGM'). 

 

Changes to the Board

One new Director has joined the Board during the year. Edward Creasy, who is involved with several insurance businesses at senior level, joined us in March. His addition strengthens the breadth and depth of your Board and I invite shareholders to ratify his appointment at the AGM.

At the conclusion of your Company's AGM I will be resigning as Chairman and standing down from the Board. I do so because having been Chairman since 2004 I believe I have contributed all I can and it is time for a change in the interests of the Company. In the last two years two new Directors have joined the Board and I welcome this infusion of fresh blood and new ideas. I am delighted that the Board has agreed that Jean Matterson will become the Company's next Chairman. She has very relevant skills and experience and I wish her and the Board, supported by our excellent Managers, continued success.

 

PACIFIC HORIZON INVESTMENT TRUST PLC

Chairman's Statement (Continued)

Outlook

The starting point for the Asia Pacific region is one of strength with features pointed to at this time last year such as low leverage, accommodating fiscal and monetary policies, ample liquidity and returning consumer and business confidence still in place. At the margin, governments and central banks in a number of countries in which we invest have adopted tighter monetary and fiscal policies. However this is in the face of stronger growth and therefore appears a sensible course of action. Having weathered admirably the most vicious downturn since the Asian financial crisis the region appears well placed to capitalise on the many structural factors that should underpin growth in the years and decades to come. 

Features such as urbanisation, industrialisation, the building of infrastructure, the demographic profile and the prospects of a more active consumer, to name a few, generate a very exciting backdrop for investment. The universe of investible companies is broadening and deepening giving more opportunities to invest in high quality businesses benefiting from the growth potential the region offers. Reinforced by a Board visit earlier this year to companies in mainland China and Hong Kong, your Board and Managers remain optimistic about the long term outlook for the region.

Peter Mackay

Chairman

Past performance is not a guide to future performance.

PACIFIC HORIZON INVESTMENT TRUST PLC

Managers' Overview

In the year to 31 July 2010 markets in the region have performed well, especially for sterling based investors. The best performing markets in sterling terms were Indonesia and Thailand, both up over 50%. The poorest performing markets in sterling terms were China followed by Vietnam and then Hong Kong. The Chinese A-share market, where we have no direct exposure, was the weakest regional market during the year, falling over 20% in sterling terms. A geographical review can be found under the Managers' Portfolio Review.       

There have been only minor changes in the distribution of assets by geography. Small increases have been made to stocks in India, South Korea and Indonesia funded in the main through reductions in Hong Kong and China, Thailand and the Philippines. By industrial sector, changes have also been relatively minor. The largest increases have been in the Financials and Consumer Goods sectors, with reductions in the Oil and Gas, Industrials and Telecommunications sectors. The reduction in Telecommunications represents a reversal of actions noted a year ago and is as a consequence of the availability of more attractive opportunities in other sectors, while the other changes continue the trends of the previous year. As ever, these changes are driven by the merits of individual stocks and not an overarching top down view. 

The most significant feature of the first half of the Company's year was the continued recovery from the global financial crisis. Most Asian economies, boosted by supportive government policies and strong balance sheets, continued to recover faster than widely expected. Domestic demand has been the key driver of the strong rebound, with both investment and consumption showing strong growth. During the second half of the Company's year there has been a sizeable rebound in trade, with the economies of the region well positioned to benefit from this. In the face of stronger growth it is therefore encouraging to see governments and central banks engaged in incremental tightening of fiscal and monetary policy before excesses arise. Indeed, inflationary pressures, which started to concern earlier in the year, look to have dissipated for now, although several countries could be vulnerable to future price inflation. In aggregate, the strength of the economies of the Asia Pacific Region is commendable and provides a sound base from which the companies in which we invest are able to capitalise on the many positive structural factors underpinning future growth.

Over the past year we have continued to invest in companies with strong growth prospects and sustainable competitive advantages which trade at low valuations relative to their prospects. We have maintained a fully invested position throughout the year and at the end of the year the cash balance was 2.2% of shareholders' funds.

PACIFIC HORIZON INVESTMENT TRUST PLC

 

Managers' Portfolio Review

Hong Kong and China

The Chinese economy has performed well over the past year, showing continued recovery from the low seen in early 2009. As an example, GDP growth in the first two quarters of the calendar year 2010 reached 11.9% YoY and 10.3% YoY respectively. Domestic demand has been strong and will remain the key driver of economic growth. Investment spending remains robust, albeit moderating, whilst consumption has been very healthy, particularly in consumer discretionary areas. More recently, exports have been rebounding, although this has more to do with China's trading partners than internal strength. Against this backdrop the Chinese stockmarkets have been the poorest performers in the Asia Pacific Region and, in particular, the domestic Chinese A-share market has been very weak. It is not easy to explain this weakness. As early as late 2009 the Chinese government started to withdraw some of the stimulus measures, for instance by reining in bank lending, and this was followed in early 2010 with measures to tighten liquidity in the banking system through reserve requirement increases.  Since this time the government has been performing a delicate balancing act, aiming to deliver economic growth at the appropriate level without causing the excesses that were so damaging just a few years ago. Careful regulation and tightening in the property market has been a notable feature. Other reasons for the weak stockmarket performance could be continued concerns regarding investment in unproductive capacity, which we do not believe is widespread, and concern about the treatment of foreign companies investing in China, most starkly presented by Google's travails. Whilst these factors have weighed on the market in the short term, they do not in aggregate amount to a serious concern. More recently the government has broken the peg to the US dollar, in place since the onset of the financial crisis. With the economy in good shape there is much to be optimistic about, not least given the buoyant outlook for many of the companies in which we invest.

The Hong Kong stockmarket was also a relatively poor performer, which is unsurprising given its proximity to mainland China and the number of Chinese businesses listed there. It remains one of China's premier financial hubs with further steps to internationalise the Renminbi undertaken during the year. On corporate news we have had good results from two of our larger holdings ASM Pacific Technology, a semiconductor equipment manufacturer, and Li & Fung, a supply chain manager. 

There were a number of transactions during the Company's year in Hong Kong and China.  New positions taken include China Life Insurance, the leader in the immature and rapidly growing life insurance industry, Geely Automobile, a leading domestic automobile manufacturer, and Golden Meditech, a niche healthcare business. Following a lengthy pause, the IPO market once again flourished and we have added some new holdings, including China Longyuan Power, a leading wind farm operator in China and SouthGobi Resources, a coal producer. Early in the Company's year we made several sales of lower conviction holdings including China Shipping Development, a shipping company, China Railway Group, a construction business, and Tian An China, a property company.

PACIFIC HORIZON INVESTMENT TRUST PLC

 

Managers' Portfolio Review (Continued)

Korea

Relations with its Northern neighbour took a distinct turn for the worse earlier this year with the sinking of a South Korean naval vessel, apparently by the North. Whilst relations have always been somewhat tense, this action is viewed widely as an escalation and cause for concern. We acknowledge the risks, but feel that regional and international political pressures will likely keep the North Korean situation in check. We have made several changes to the Korean holdings over the past year. New purchases have included Hyundai Marine and Fire Insurance, a leading insurance company, Mirae Asset Securities, a leading broker and Hyundai Mobis, an auto parts supplier. The only sale has been the shipbuilder Samsung Heavy Industries.

Taiwan

Progress in removing barriers to full economic integration with the mainland following the landmark cross-strait agreements in April 2009 has been slow. Whilst there was an initial flurry of activity most deals are awaiting regulatory approval and the rate of announcements has moderated. We maintain our view that improving relations between Taiwan and China are likely to generate investment opportunities given time and indeed in late June the signing of the Economic Cooperation Framework Agreement gives cause for optimism. Looking at Taiwan itself, the economy has been rebounding strongly with technology companies bouncing back as external demand has returned. Transactions have included the complete sale of E Ink (formerly Prime View International) as we believe the competitive situation is likely to deteriorate whilst making a new purchase of Phison Electronics, a key beneficiary of NAND Flash memory demand.

Singapore

Of all the countries we invest in, Singapore has shown the sharpest rebound from the downturn.  Q2 GDP growth reached 18.8% YoY, whilst estimates for 2010 have been revised up markedly. Stockmarket performance has been less impressive, although sterling based investors have fared well owing to the strength of the Singapore dollar. Sales have been made of China Milk, a dairy products business, and Jaya Holdings, a niche shipbuilder and a new purchase has been made of SATS Limited, which provides a number of ground services for airlines whilst also expanding into the wider catering market. 

PACIFIC HORIZON INVESTMENT TRUST PLC

 

Managers' Portfolio Review (Continued)

Indonesia

The Indonesian market was a very strong performer during the Company's year, both in local and sterling currency terms. The political environment has been stable and efforts to tackle corruption have continued. The banks in which we have holdings, Bank Mandiri, Bank Rakyat and Bank Negara, a new holding bought during the year, performed strongly in an environment  in which growth was strong and credit quality concerns dissipated. During the year we made a small reduction to PT Telekomunikasi, a leading telecommunications operator.

India

Since the positive election result last year major steps forward have included the further deregulation of the fuel markets, moving more in line with international pricing, a number of indications that new banking licences will be issued sooner rather than later and real steps forward for infrastructure spending. This progress is very encouraging and gives a number of opportunities for private sector companies. Significant changes in the portfolio over the year have included increasing the weighting in Mahindra & Mahindra, a conglomerate with a focus on tractors and automobiles, and a new holding in Patni Computer Systems, an IT services provider. 

Malaysia

The Malaysian market has performed well in both local and sterling currency terms.  Economic performance has been decent, with trade data showing strong sequential improvement, leading to Malaysia being one of the first countries in the region to start monetary tightening. The only significant change to the portfolio over the past year has been the sale of Sime Darby, a state owned conglomerate.

Thailand

Despite question marks over the health of the King and the severe social unrest starting in April Thailand has been the best performing market in local currency terms and the second strongest in sterling terms. The domestic economy has performed well despite the political tensions and this, combined with the cheapest valuations in the region, seems to have caught investors' attention. We have made some small reductions to holdings in Thailand as valuations are now less appealing.

PACIFIC HORIZON INVESTMENT TRUST PLC

 

Managers' Portfolio Review (Continued)

Vietnam

The Vietnamese market was one of the weaker performers over the financial year, not helped by two devaluations of the Dong. The economy remains in a precarious situation with concerns about the country's debt levels, the balance of payments and its credit quality all weighing. On a brighter note growth has been resilient and inflation is under control, setting the scene for perhaps a brighter outlook.

Philippines

The Philippines was a strong performer both in local and sterling currency terms. Like other ASEAN markets, the Philippines has performed well since the downturn with economic growth accelerating into 2010 and inflation well under control. A peaceful Presidential election was also a welcome event.

PACIFIC HORIZON INVESTMENT TRUST PLC

The following is the unaudited preliminary statement for the year to 31 July 2010 which was approved by the Board on 1 September 2010. The Directors of Pacific Horizon Investment Trust PLC are recommending to the Annual General Meeting of the Company to be held on 25 October 2010 the payment of a final dividend of 1.30p net (31 July 2009 - 1.80p net) per ordinary share for the year ended 31 July 2010.

INCOME STATEMENT

(unaudited)

	For the year ended 31 July 2010				For the year ended 31 July 2009
	Revenue £'000	Capital £'000	Total £'000		Revenue £'000	Capital £'000	Total £'000
Gains/(losses) on investments	-	22,355	22,355		-	(1,017)	(1,017)
Currency (losses)/gains	-	(153)	(153)		-	803	803
Income from investments and interest receivable (note 2)	2,999	-	2,999		3,579	-	3,579
Investment management fee  (note 3)	(1,224)	-	(1,224)		(814)	-	(814)
Other administrative expenses	(293)	-	(293)		(249)	-	(249)
Net return on ordinary activities before taxation	1,482	22,202	23,684		2,516	(214)	2,302
Tax on ordinary activities	(187)	-	(187)		(601)	-	(601)
Net return on ordinary activities after taxation	1,295	22,202	23,497		1,915	(214)	1,701
Net return per ordinary share (note 4)	1.65p	28.36p	30.01p		2.44p	(0.27p)	2.17p

 The total column of this statement is the profit and loss account of the Company.

All revenue and capital items in this statement derive from continuing operations. No operations were acquired or discontinued during the year.

A Statement of Total Recognised Gains and Losses is not required as all gains and losses of the Company have been reflected in the above statement.

PACIFIC HORIZON INVESTMENT TRUST PLC

BALANCE SHEET

 (unaudited)

	At 31 July 2010		At 31 July 2009
	£'000	£'000	£'000	£'000
FIXED ASSETS Investments held at fair value through profit or loss		125,145		103,831
CURRENT ASSETS
Debtors	445		350
Cash and short term deposits	2,878		2,119
	3,323		2,469
CREDITORS: Amounts falling due within one year	(529)		(449)
NET CURRENT ASSETS		2,794		2,020
TOTAL ASSETS LESS CURRENT LIABILITIES		127,939		105,851
CAPITAL AND RESERVES
Called-up share capital		7,829		7,829
Share premium		3,166		3,166
Special distributable reserve		13,233		13,233
Capital redemption reserve		17,964		17,964
Capital reserve		81,125		58,923
Revenue reserve		4,622		4,736
SHAREHOLDERS' FUNDS		127,939		105,851

NET ASSET VALUE PER ORDINARY SHARE	163.42p	135.21p
ORDINARY SHARES IN ISSUE	78,287,002	78,287,002

 

PACIFIC HORIZON INVESTMENT TRUST PLC

 

RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS

(unaudited)

For the year ended 31 July 2010

	Note	Called-up share capital £'000	Share premium £'000	Special distributable reserve £'000	Capital redemption reserve £'000	Capital reserve* £'000	Revenue reserve £'000	Shareholders' funds £'000
Shareholders' funds at 1 August 2009		7,829	3,166	13,233	17,964	58,923	4,736	105,851
Net return on ordinary activities after taxation		-	-	-	-	22,202	1,295	23,497
Dividends paid during the year	5	-	-	-	-	-	(1,409)	(1,409)
Shareholders' funds at 31 July 2010		7,829	3,166	13,233	17,964	81,125	4,622	127,939

For the year ended 31 July 2009

	Note	Called-up share capital £'000	Share premium £'000	Special distributable reserve £'000	Capital redemption reserve £'000	Capital reserve* £'000	Revenue reserve £'000	Shareholders' funds £'000
Shareholders' funds at 1 August 2008		7,829	3,166	13,233	17,964	59,137	3,839	105,168
Net return on ordinary activities after taxation		-	-	-	-	(214)	1,915	1,701
Dividends paid during the year	5	-	-	-	-	-	(1,018)	(1,018)
Shareholders' funds at 31 July 2009		7,829	3,166	13,233	17,964	58,923	4,736	105,851

*The capital reserve balance at 31 July 2010 includes investment holding gains on fixed asset investments of £31,504,000 (2009 - £19,716,000).

PACIFIC HORIZON INVESTMENT TRUST PLC

CASH FLOW STATEMENT (unaudited)
		For the year ended 31 July 2010			For the year  ended 31 July 2009
	Note	£'000	£'000		£'000		£'000
NET CASH INFLOW FROM OPERATING ACTIVITIES				1,153			2,886
TAXATION
Corporation tax paid		(140)				(632)
TOTAL TAX PAID				(140)			(632)
FINANCIAL INVESTMENT
Acquisitions of investments		(30,596)				(39,589)
Disposals of investments		31,751				34,763
NET CASH INFLOW/(OUTFLOW) FROM FINANCIAL INVESTMENT				1,155			(4,826)
EQUITY DIVIDEND PAID	5			(1,409)			(1,018)
INCREASE/(DECREASE) IN CASH				759			(3,590)
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
Increase/(decrease) in cash in the year				759			(3,590)
MOVEMENT IN NET FUNDS IN THE YEAR				759			(3,590)
NET FUNDS AT 1 AUGUST				2,119			5,709
NET FUNDS AT 31 JULY				2,878			2,119
RECONCILIATION OF NET RETURN BEFORE TAXATION TO NET CASH INFLOW FROM OPERATING ACTIVITIES
Net return on ordinary activities before taxation				23,684			2,302
(Gains)/losses on investments - securities				(22,355)			1,017
Currency losses/(gains)				153			(803)
Amortisation of fixed interest book cost				-			(326)
(Increase)/decrease in accrued income				(52)			39
Increase in debtors				(10)			-
Increase/(decrease) in creditors				70			(6)
Realised currency (loss)/gain				(153)			803
Overseas tax suffered				(184)			(140)
NET CASH INFLOW FROM OPERATING ACTIVITIES				1,153			2,886

PACIFIC HORIZON INVESTMENT TRUST PLC                                                                                                                                  

THIRTY LARGEST EQUITY HOLDINGS at 31 July 2010 (unaudited)

Name	Country	Business	Value £'000	% of total assets‡
Samsung Electronics	Korea	Semiconductor manufacturer	6,339	4.9
Kunlun Energy Company	HK/China	Oil and gas exploration and production	3,850	3.0
Taiwan Semiconductor Manufacturing	Taiwan	Semiconductor manufacturer	3,788	3.0
Hon Hai Precision Industries	Taiwan	Electronic manufacturing services company	3,242	2.5
Parkson Holdings	Malaysia	Department store owner and operator	3,188	2.5
Li & Fung	HK/China	Supply chain management	3,168	2.5
ASM Pacific Technology	HK/China	Semiconductor equipment manufacturer	3,052	2.4
Singapore Exchange	Singapore	Stock exchange	3,033	2.4
CNOOC	HK/China	Oil and gas exploration and production	2,696	2.1
Dongfang Electric	HK/China	Power equipment manufacturer	2,682	2.1
Mahindra & Mahindra	India	Indian conglomerate	2,635	2.0
Hyundai Mobis	Korea	Automotive parts producer	2,373	1.8
Baidu	HK/China	Internet search provider	2,287	1.8
PT Telekomunikasi	Indonesia	Diversified telecommunications provider	2,253	1.8
SATS Limited	Singapore	Airport services provider	2,168	1.7
Kuala Lumpur Kepong	Malaysia	Palm oil producer and refiner	2,062	1.6
ZTE	HK/China	Telecommunications equipment provider	2,017	1.6
Hyundai Marine and Fire Insurance	Korea	Non-life insurance provider	1,992	1.6
CapitaMall Trust	Singapore	Real estate investment trust	1,991	1.6
Samsung Fire & Marine	Korea	Non-life insurance provider	1,930	1.5
Hang Seng Bank	HK/China	Banking services	1,888	1.5
Renhe Commercial	HK/China	Developer and operator of retail property	1,758	1.4
Pacific Basin Shipping	HK/China	Shipping company	1,713	1.3
Sembcorp Marine	Singapore	Shipbuilder	1,711	1.3
China Life Insurance	HK/China	Life insurance provider	1,674	1.3
Wumart Stores	HK/China	Supermarket operator	1,654	1.3
China Life Insurance (Taiwan)	Taiwan	Life insurance provider	1,651	1.3
China National Building Material	HK/China	Building materials manufacturer	1,625	1.3
Hidili Industry International   Development	HK/China	Coal producer	1,616	1.2
China Petroleum & Chemical   Corporation	HK/China	Integrated oil and gas producer	1,525	1.2
			73,561	57.5

HK/China denotes Hong Kong and China

All stocks are listed overseas.

‡ Total assets less current liabilities.

PACIFIC HORIZON INVESTMENT TRUST PLC

DISTRIBUTION OF ASSETS

 (unaudited)

		At 31 July 2010 %		At 31 July 2009 %
Equities:	Hong Kong and China	40.1		43.6
	Korea	14.5		11.3
	Taiwan	11.8		11.4
	Singapore	9.7		10.2
	Indonesia	6.5		5.6
	India	5.9		3.2
	Malaysia	4.7		5.5
	Thailand	3.4		5.0
	Vietnam	1.2		1.0
	Philippines	0.0		1.3
Total equities		97.8		98.1
Net liquid assets		2.2		1.9
Total assets at fair value‡		100.0		100.0

‡ Total assets less current liabilities.

PACIFIC HORIZON INVESTMENT TRUST PLC

NOTES (unaudited)
1.	The financial information within this preliminary announcement has been extracted from the unaudited financial statements for the year to 31 July 2010 and has been prepared on the basis of the accounting policies set out in the Company's Annual Financial Statements at 31 July 2009. The Company's assets, the majority of which are investments in quoted securities which are readily realisable, exceed its liabilities significantly. The Company has no loans. 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 2011. The Directors have no reason to believe that the continuation resolution will not be passed next year. After making enquiries and considering the future prospects of the Company and notwithstanding the above, the financial statements have been prepared on the going concern basis as it is the Directors' opinion that the Company will continue in operational existence for the foreseeable future. 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 is subject to the UK's regulatory environment.
			2010 £'000			2009 £'000
2.	Income
	Income from investments		2,999			3,559
	Interest receivable		-			20
			2,999			3,579
3.	Related party transactions
	The Directors' fees for the year are detailed in the Directors' Remuneration Report contained within the Annual Report and Financial Statements. 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. Mr Gerald Smith, who was appointed as a Director of the Company on 1 February 2009, is a partner of Baillie Gifford & Co. Baillie Gifford & Co are employed by the Company as Managers and Secretaries under a management agreement which is terminable by the Managers on six months' notice and by the Company on three months' notice. The fee in respect of each quarter is 0.25% of the total assets less current liabilities.
			2010 £'000			2009 £'000
4.	Net return per ordinary share
	Revenue return		1,295			1,915
	Capital return		22,202			(214)
	Total return		23,497			1,701
	Weighted average number of ordinary shares in issue		78,287,002			78,287,002
	Net return per ordinary share figures are based on the above totals for revenue and capital and the weighted average number of ordinary shares in issue each period. There are no dilutive or potentially dilutive shares in issue.

PACIFIC HORIZON INVESTMENT TRUST PLC

NOTES (Continued) (unaudited)
		2010	2009	2010	2009
				£'000	£'000
5.	Ordinary Dividends
	Amounts recognised as distributions in the period:
	Previous year's final (paid 4 November 2009)	1.80p	1.30p	1,409	1,018
	We also set out below the total dividends paid and proposed in respect of the financial year, which is the basis on which the requirements of Section 1158 of the Corporation Tax Act 2010 (formerly Section 842 of ICTA 1988) are considered. The revenue available for distribution by way of dividend for the year is £1,295,000 (2009 - £1,915,000).
	Dividends paid and proposed in respect of the financial year:
	Proposed final dividend per ordinary share (payable 1 November 2010)	1.30p	1.80p	1,018	1,409
	If approved, the proposed final dividend of 1.30p per ordinary share for the year ended 31 July 2010 will be paid on 1 November 2010 to shareholders on the register at the close of business on 8 October 2010. The ex-dividend date is 6 October 2010. The Company's Registrars offer a Dividend Reinvestment Plan and the final date for elections for this dividend is 13 October 2010.
6.	The Company had no borrowings at 31 July 2010 or 31 July 2009.
7.	The Company has authority to allot shares under Section 551 of the Companies Act 2006. The Board has authorised the use of this authority to issue new shares at a premium of not less than 5% in order to enhance the net asset value per share for existing shareholders and improve the liquidity of the Company's shares. In the years to 31 July 2010 and 31 July 2009 no shares were issued. The Company has authority to buy back its ordinary shares. The authority was last renewed at the Annual General Meeting on 2 November 2009 in respect of 11,735,221 shares (equivalent to 14.99% of its issued share capital at that date).  In the year to 31 July 2010 no ordinary shares were bought back. As a result at 31 July 2010 the Company's authority to buy back its own shares remains unchanged at 11,735,221 ordinary shares.
8.	The Company incurred transaction costs on purchases of £90,000 (2009 - £84,000) and on sales of £83,000 (2009 - £79,000).
9.	The financial information set out above does not constitute the Company's statutory accounts for the year ended 31 July 2010.  The financial information for 2009 is derived from the statutory accounts for 2009. Those accounts have been delivered to the Registrar of Companies. The Auditors have reported on the 2009 accounts, their report was unqualified and did not contain a statement under Section 495, 496 and 497 of the Companies Act 2006. The statutory accounts for 2010 will be finalised on the basis of the financial information presented in this preliminary announcement and will be delivered to the Registrar of Companies following the Company's Annual General Meeting.
10.	The Report and Accounts will be available on the Company's page on the Managers' website www.pacifichorizon.co.uk on or around 20 September 2010.
	None of the views expressed in this document should be construed as advice to buy or sell a particular investment.

 

 

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