5th Mar 2015 10:29
LONDON (Alliance News) - Pacific Horizon Investment Trust PLC Thursday said its net asset value per share rose 7.9% to 216.74 pence in the six months to end-January, albeit the increase was less than the MSCI All Country Asia ex Japan Index, which it said rose 8.5% in sterling terms over the same period.
"Despite the positive absolute returns, relative performance was affected by the strong showing of several large Hong Kong and China stocks where we have limited exposure," the company said in a statement.
Pacific Horizon said that many of its highest conviction holdings outperformed the comparative index, on a total return basis, by a healthy margin, including software company Tech Mahindra.
The company's share price rose 12.5% and the discount narrowed to 7.7% from 11.5%, it said.
Pacific Horizon said the global investment climate has changed significantly over the last six month.
"Economic performance has been resilient in many of the countries in which we invest and the USA's economy continues to maintain momentum. On the other hand, investors are wary of declining inflation globally and in Europe in particular. With the exception of the US, the expectation of further monetary loosening by central banks has led to renewed enthusiasm for bond markets globally and resulted in falling bond yields," it said.
Pacific Horizon said that technology companies now account for the largest proportion of stocks it holds at 54.0%, up from 44.7% at the start of the period. It said internet businesses are also another key focus.
"A number of these technology companies have great potential to benefit from economic advances expected in developed markets," the company said.
"In line with our long term investment philosophy, we believe that the investments held represent attractive opportunities which have the potential to create future value and to generate superior returns for shareholders over the next few years," it added.
Pacific Horizon shares were up 0.2% at 192.21 pence mid-morning Thursday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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