After two years of strong performance, Pacific Horizon (PHI) has suffered a reversal of fortune over the last three months. Sentiment swung against both China and the technology sector (both significant portfolio weights for PHI), with savage share price falls in some areas. However, it is possible that this reversal of fortune may prove to be short-lived, if China and the US can agree a trade deal.
PHI’s strong focus on fast growing companies means that it is clearly differentiated from its peer group (no other fund has as much invested in the technology sector, for example). The trust’s manager acknowledges the concerns that gave rise to the market correction but his belief in the long-term potential of PHI’s portfolio is undimmed.
Focused on Asia ex Japan growth stocks
PHI invests in the Asia-Pacific region (excluding Japan) and in the Indian subcontinent, in order to achieve capital growth. The company is prepared to move freely between the markets of the region as opportunities for growth vary. The portfolio will normally consist entirely of quoted securities, although it may hold up to 10% of total assets in unlisted investment opportunities.