Pacific Horizon Investment Trust posts annual report amid widening discount

LONDON - Pacific Horizon Investment Trust PLC (LSE:PHI) announced on Wednesday that it has submitted its Annual Report and Financial Statements for the year ended July 31, 2025 to the National Storage Mechanism and distributed it to shareholders.

The investment trust, which focuses on the Asia Pacific region excluding Japan and the Indian subcontinent, reported that listed securities comprise 93.7% of its investment portfolio. The company also disclosed that it has increased its net gearing from zero to 5% during the fiscal year.

In response to share price concerns, the trust spent £29.8 million on share buybacks during the reporting period, representing 5.5% of its issued share capital at the start of the period. Despite these efforts, the discount to net asset value widened from 7.8% at the beginning of the year to 9.5% by year-end, after reaching as high as 15.9% during the period.

The board stated it aims "to maintain the Company’s discount in single digits, in normal market conditions, on a sustained basis" and announced a performance-related Conditional Tender Offer on April 16, 2025.

In its risk assessment, the company identified several increased risk factors, including financial market volatility due to geopolitical tensions, investment strategy challenges amid shifting investor preferences away from growth stocks, and political risks affecting regions where the company invests.

The trust’s one-year revolving credit facility is set to expire in March 2026, though the board indicated it does not anticipate problems with renewal.

The annual report includes statements from directors confirming the financial statements provide a true and fair view of the company’s assets, liabilities, financial position and returns, according to the announcement based on a press release statement.

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